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VacWagon is a leading player in the economy segment and has a huge network of showrooms and dealers. It has launched a new model targeting

VacWagon is a leading player in the economy segment and has a huge network of showrooms and dealers. It has launched a new model targeting the premium segment. The USP of the car is its excellent mileage (distance travelled per litre of fuel consumed). Even after spending huge amount of money on promotion, the market performance of the model has been very disappointing. What could be the possible reason for poor performance and suggest means to improve sales, keeping the reasons in mind? (4 marks)

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