Maruti Suzuki's strategy to enter the luxury car segment

Abstract

Maruti Suzuki, an unmatched market leader in the small car segment for the past 25 years, was not able to replicate its success in to the premium sedan category. Despite its desperate attempts to introduce a winning model in the premium car segment it received a lacklustre response from the customers. This prompted us to study the failure (or rather a relatively low profile success) of Maruti in the premium sedan segment. From the in depth interviews conducted we concluded that the expectations of a potential customer seeking a premium sedan are very much different from a customer looking for a compact car. So the lacunae in fulfilling the premium customers’ expectations were a major reason for Maruti’s successful foray falling flat. This report will point out the specific areas that Maruti Suzuki failed to address and will try to identify the possible strategies that may be adopted by Maruti in order to meet the expectations of the premium segment customers in a comprehensive manner.