Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In India, owning a car is perceived to be big milestone in the life of the middle class men. It was a dream they had

In India, owning a car is perceived to be big milestone in the life of the middle class men. It was a dream they had nurtured for long; but due to high down-payments and hefty EMIs, it always seemed beyond their reach. The Indian middle class manage their expenses on a dayto-day basis. Since they work in the public sector, it is difficult for them to have a lump sum amount to spend any time of the year. Even the annual promotions/increments didn't help much because of the rising rate of inflation in the country. Against this background, Maruti Suzuki wanted to expand its TG base, by selling its low-priced car Alto 800 to the middle class segment. With the announcement of the much awaited 7th Pay Commission* by the Government of India, we saw a golden opportunity. 10 million Indians were to get an increased salary, leaving the middle-class consumer with a lot of cash at his disposal. Hence, we created a targeted communication which our TG couldn't miss, at a destination that was inherent to their digital behavior. (*Pay Commission is an administrative system/mechanism set up by the Govt. of India to determine the salaries of government employees.) A family man, who deems providing for his family as his top priority. He stays in both top metros and small towns. He travels to work by radio taxis/public transport every day. He's meticulous about his expenditures, as he likes to keep track of all his daily expenses. He is most active on his mobile device wherein he consumes content, makes his payments and determines travel routes and ETA. To him, owning a car is a sign of having arrived in life. It is a status symbol and takes him one step up on the social ladder. But at the same time, large down payments and EMIs make him believe that buying a car is beyond his limits. The introduction of the 7th Planning Commission was giving 10 million Indians an increased salary and 15 months' arrears; thus leaving the middle-class consumers with a lot of cash at their disposal. A perfect time to offer them a chance to make their dream a reality. We decided to direct our complete focus on the TG's primary digital interface - mobile. An indepth data-driven research by our team revealed that the middle class Indian used Google Maps to check ETA and commute options every day. On Google Maps, whenever the user opened the application to search for routes and ETA in the public transport tab, they also saw options and prices to book radio taxis (Uber, OLA) for the same route. Using the same mechanism of Google Maps, we created a new media property around the Pay Commission period to help users buy their first car - Maruti Suzuki Alto 800. We displayed the daily cost of owning an Alto 800 as against a one-way ride from the radio taxi. Our ads inherently following the UI/UX of Google map, led to impactful messaging and a great number of eyeballs - showcasing the great price difference favouring Alto 800. By following the above media and creative strategy we were able to deliver 3 firsts in one campaign - first brand to capitalize on Pay Commission, first time ever car sold on per day cost basis and world's first Google Maps innovation. All previous efforts to increase the enquiry and sales for the brand were majorly focused on push strategy. This was the first time that the thorough understanding of the TG, their behavior and needs, and timing were analyzed and blended together to carve out a promotion to achieve the brand objective. An in-depth data-driven research by our team had revealed that the middle class Indian used Google Maps to check ETA and commute options every day. Using this behavioral insight of our TG, we made our campaign 100% mobile-centric, utilizing the user's journey on the Google Maps app. Using display advertising for the first time on Google Maps, we compared TG's daily commute expenses to the unbelievably affordable daily EMI of Alto 800. The banner, when clicked, let the user choose or customize an EMI plan for himself. And from there, they could book their Alto 800 as well. The whole user-journey was well thought through and rationalized owning a car as a viable option as compared to the hassling daily commute and spending a fortune every day. The overall campaign budget was 15,000 USD. The TG being mobile savvy, and their behavior of using Google maps daily, at least twice a day - from home to work, and work to home - made mobile the central of our creative and media strategy. Through this unique campaign, we were able to leverage the Google Maps app like it had never been done by any other brand. Alto 800 was seamlessly weaved into the TG's digital behavior and their everyday need. The banners were visible whenever the user opened the Google Maps application to view a route or determine the estimate travel time or book a cab on the move. Also, the fact that the banner calculated the daily cost of owning an Alto 800 as against a one-way ride from the radio taxi for the desired route, the offer made people see the stark difference and made them click to personalize the EMI for Alto 800 as per their requirement. Maruti Suzuki is the biggest car manufacturer in India. They offer 15 brands ranging from family hatchbacks to compact SUVs. The Maruti Suzuki Alto is the most affordable car from the Maruti Suzuki stable. The Maruti Suzuki Alto is the largest selling vehicle in the entry level segment in India. Since its launch, Alto has found favour with its customers as an affordable car with its high fuel efficiency. Owing to this innovation, Maruti Suzuki became the first auto manufacturer to reposition the cost of ownership of a car. There was a 150% increase in EMI calculation for Alto 800. A staggering 2X increase in enquiries and 3X increase in test drives was observed. Alto 800 gained an unprecedented 24% increase in sales during OctNov'16. This contributed significantly to Maruti Suzuki gaining a 52.2% market share in Nov'16. The campaign created a new global media property for Google and other brands to use and led to a 2X increase in enquiries and 3X increase in test drives, which showcases the huge amount of people who interacted with our campaign. A 150% increase in EMI calculation via this Google Maps innovation stands to prove that the campaign was well received by the TG.

Attempt All the following case based questions in detail:

(a) Describe the opportunities and challenges faced by Alto 800.

(b) Highlight the key aspects of Alto 800's mobile campaign and describe how it affected consumer perception towards the brand.

(c) What are the psychological and economic factors influencing consumer buying decision making in this case?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Marketing

Authors: Louis E Boone, David L Kurtz

14th Edition

032458203X, 978-0324582031

More Books

Students also viewed these Marketing questions