Relaunch of Maruti Versa- a comprehensive marketing strategy
Introduction:
Maruti – Versa was one of the ambitious projects of Maruti launched with an attractive campaign
of providing “two luxury cars in one”. The launch was given uplift as campaign featured Amitabh
& Abhishek Bachchan (however the campaign proved to be too costly!!). The study discusses the
reasons for its failure in market and proposes a re-launch plan with complete marketing strategy
and financial impact of the re-launch.
Reasons for failure:
Launch hype that failed to meet expectations of the public was reason for failure of Versa in
market:

Unconventional look

Higher price (a sedan was available in same price range)

Confusing positioning of ’two cars in one car’

Incomplete awareness of benefits of Multi Purpose Vehicle in India

More suited for Ambulance or Mini Bus like duties than personal means of transport.

Due to its size and ultra 'tall-boy' design, it's hardly a driver's vehicle and is quite unstable
on highways/strong cross winds.
This led to a forced price cut in 2004 launch but still the sales did not improved substantially.

Similarly, in 2004 the positioning was also changed. It was re-launched with the new
positioning based on the joys of traveling together. The tagline was changed to "Traveling
in company in a car has its own kind of fun".

But what added dampener was the mileage per liter.
For a typical Indian family wherein whole family live and, therefore, travels together, a MultiPurpose Vehicle is an ideal option. And that’s what made the country’s #1 car manufacturer Maruti
introduce Versa. But people ask for a combination of performance and comfort in their set of four
wheels along with economy and space, which is something one can easily expect from the Versa.
Situation Analysis: Trends & Future Potential
With esmitates putting the size of Indian automotive industry between US$ 120.09 billion and US$
155.12 billion by 2016, the industry is expected to touch the 10 million mark, to which the
Commercial Vehicle Segment will be a major contributor. According to surfindia.com ‘Cars
dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger cars
and
is
a
complete
monopoly
in
multipurpose
vehicles’
(Source:
http://www.surfindia.com/automobile/automobile-industry.html).
Reasons for Re-launch:
If one sees a typical Indian family wherein parents, grandparents, children all live together, they off
course would also like to travel together and for this a Multi-Purpose Vehicle is an ideal option. At
the same time the Indian consumer needs cars at a low purchase cost, higher fuel efficiency and low
maintenance costs, which also gives a comfortable ride in city conditions. All these needs along
with space can easily be met by Versa.
In recent times there is also changing attitude of consumers towards MPVs, by increasing the
awareness of the utility of such a vehicle can help in gaining a market for Versa.
Some of the other positive points of Versa are highlighted here:

Versa is a MUV specially designed for India.

It is a perfect family vehicle as far as its interiors, internal space management, engine,
suspension.

High Power to Weight ratio, results in superior pick up and acceleration.

High seating position and easy controls make it a driver-friendly car. It is easy to park and
has ability to cruise at high speeds with full ease.

From angle of safety, the occupant’s safety is ensured during front collision because of
pout of the bonnet.

The capabilities matching the likes of Toyota Qualis and best in class technical capabilities
in the given price range are added plus points.
Keeping all these points in mind – economy, space, safety and performance, “The Versa” which
means “turn around” has the potential to turn around the auto-market in India.
STP Analysis:
Segments:
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Indian car market is predominantly family oriented. Hence, here the primary segmentation is based
on the price of the car and also the nature of the car. So we have A segment, B segment, D segment
etc and segments like MUV, SUV, Sedan, Hatchback, small car etc.
Segmentation by Utility:

Family Car Segment
i. Small Families
ii. Large Families

Premium Car Segment

Commercial Usage: ex-Car Rentals, Cab Service providers, Ambulances and service vans.
Targeting:

Family car Segment. Should target large families with 5-6 members. People who are both
value and price conscious.

Should target the car rentals and cab service providers.

According to cost B segment will be targeted.

Strong Customer Base of Maruti.

Psychographics used can combine the benefits of:
iii. Wagon-R : Smarter people (executives)
iv. Omni : People who need to transport goods
Positioning:

Position the product as a combination of performance and comfort on four wheels along
with economy and space.

By refreshing the looks of the model, the new variant must be promoted stating the it runs
on the same platform as Versa assuring quality and safety while continuing to promote it
as “The joy of Travelling Together”.

Promote the utility of a MPVs and creating awareness of the benefits of such a vehicle.

The positioning of the brands in the Indian passenger car market can be done on the basis
of the price-power attribute
Marketing Mix:
Product:
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Product under re-launch is Maruti Versa with following features:

Petrol version only of the car (as Maruti has not been successful with earlier Diesel cars)
which would help in keeping R&D cost to a negligible level and also initial cost price
would be low.

Multi Purpose Utility vehicle for whole family with 6 or 8 seater capacity.

Variants of the vehicle with different technical & physical improvements like power
steering, AC, etc.
Price:
The price would be kept low, in the range of small-medium car segment, to penetrate the market.
Research and other initial costs have been assumed to be recovered in first launch. The company
can afford to sell on its cost price to increase customer base.
Getting a higher-end product than a small car in similar price range would attract the customers.
Place:

Distribution Channel:
Maruti has well established network of distribution channels all over India for its products.
A dedicated floor space can be allocated to Versa to improve the showcasing of the product.

E – commerce:
1. The homepage to have dedicated space for Versa improving the visibility.
2. Booking of orders to be done online.
3. Customized needs of individual customers to be taken online and accommodated
before delivery.

Direct sales:
1. Offering exchange offer for up gradation from 4-5 seater vehicle to Versa at
competitive discounts.
2. Special discounts to joint families with 4 or more children in a house.

Indirect sales:
1. Promoting Versa for commercial use like intra-city travel for various agencies (viz.
staff movement for companies, small gatherings, etc.)
2. Use as a special purpose vehicle e.g. ambulance, service van, etc.
Promotion:
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Versa would be promoted as a “complete family car” to target big families segment in India. The
message of staying together & travelling together would help to tie a closer relationship with
prospective customer.

Individual communication:
A.
Periodic promotional events at major distribution centers by celebrities like
Bachchan’s. Celebrity would also be featured in various electronic media (e.g.
television, radio, online websites) advertisements, print media adv.; and hoardings &
banners.
B.
Promoting test drives with whole families to enable customer to check actual
comfort and quality of ride.
C.

Roadshows and display of vehicle in various exhibitions & festivals.
Print Media:
A.
Periodic advertisements in leading national newspapers, sports magazines,
automobile magazines etc. as well as in local language.
B.

Publishing interviews of satisfied customers in their own language.
TV Media:
A.
Regular ads. during popular time e.g. soap-operas (to target families) or cricket
matches.

Web Media:
Conclusion:
Maruti Versa has a huge potential to explore in Indian market and can be a successful re-launch as:
It has all the capabilities to match Indian customers’ needs.
Has a well established distribution & after sales network.
As, in India, purchase-decision is highly affected by the price and ambience, Versa should
be a success keeping in mind its low price and comfort.
Lastly, Maruti has a well established name and customer are
emotionally attached to its earlier services, with right marketing
strategy, Versa can become a leader in its segment with tremendous
growth over next few years.
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