Case Study on Maruti Suzuki India: Defending Market Leadership in the A-Segment
While reading the case study on Maruti Suzuki India: Defending Market Leadership in the A-Segment, it was really interesting to read what was and is going on in the automotive industry. Something that stood out to me was how they researched on what each segment would attract what type of consumer and how they know which type of consumers would be interested in each segment. There were several problems that were encountered while this research was conducted, but one of the problems stood out to me. Of course we know that there is so many competition out there when it comes to the automotive industry, by conducting a research on the cities and areas and base if off the economy would be something that would be helpful to them. So my research question to address this business problem would be: What are the most important factors that consumers look for when deciding on what vehicle will be more beneficial to their lifestyle?
MSIL should fortify their position in smaller markets. The reason being is because as they mentioned in the article about the competition surrounding them in the big cities. With becoming stronger in the smaller markets, MSIL will have a better chance in offering the customers more economical options and still remain competitive within their industry.
From a strategic point of view, the premium hatch will definitely add significantly to the brand image and channel motivation as compared to an entry-level. The premium hatch has its own set of customers, which are already car owners but are looking to replace their entry or mid level hatch. By adding the premium hatch to their brand image, it will encourage already car owners to want to upgrade and chose a brand that is better for them as well as to build a social status.
There could be a merit when projecting a mid-level hatch product, because if offered more interior space, which was 10% more than the entry-level, as well as better utility features. The only thing is that the mid-level hatch was only in limited geographies and it was not expected to have a high contribution margin.
I do think it the entry-level hatch segment would have to be merged with the mid-level hatch. The reason is because the entry-level segment has a lower profit margin and it would benefit from the mid-hatch segment. The article mentions that the consumers did not have a thorough understanding of the entry-level hatch segment’s technological complexity and there were greater choices available to the consumers in terms of models, features and brands.
Feedback from Instructor:
Good journal entry. You did a good job breaking down an area/problem to research. Your stated research question is more of a problem statement/research objective. You then would develop a number of research questions, that are specific, and focused that address this research objective. Be sure there is data available in the case study to support any questions you pose. Please review the posts in this weeks Discussion board for ideas on how to craft a problem statement/objective and then the supporting research questions. Good work.