Case Study Alto 800

CASE STUDY Alto 800 Vivek Jain Roll No: 145222

Assignment: Consumer Behavior 1

TABLE OF CONTENT About The Company

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Target Consumer Segment

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Strategy

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Type of Motives

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Influence Strategy

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Value and Life Style

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Family Buying Decision

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Attitude Formation & Change

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Consumer Learning Process

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ABOUT THE COMPANY

Maruti Udyog Limited was established in February 1981, though the actual production commenced only in 1983. It started with Maruti 800. Originally, 74% of the company was owned by the Indian government, and 26% by Suzuki of Japan. As of May 2007, the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog Its manufacturing facilities are located at two locations, Gurgaon and Manesar, both south of New Delhi Maruti has as of 31 March 2014 Maruti Suzuki has 933 dealerships across 666 towns and cities in all states and union territories of India. It has 3,013 service stations (inclusive of dealer workshops and Maruti Authorized Service Stations) in 1,436 towns and cities throughout India.

Maruti also provides the following services other than the four wheelers

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Maruti Insurance Maruti Finance Maruti True Value N2N Fleet Management Maruti Accessories Maruti Driving School

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TARGET CONSUMER SEGMENT Alto 800 is targeted towards Young Single which is Collage Going and Young Executives also Young Couple from Lower middle Class and working class in the Urban and Semi Urban market. This is evident from the advertisement which is conveys a cheerful message showing a Young boy with new Driving License driving the with the Girlfriend and in another ad where Young married couple are driving the car to reach the Girls Parents House.

Strategy  Alto 800 was introduced with the declining sale in the small car entry level segment with competitors launching Hyundai EON.  Significant changes in its most popular CAR 800 to make it contemporary and stay relevant.  The ‘Let’s Go’ campaign symbolizes younger attitude but also has dabs of emotion.  Alto 800 wanted to integrate its promise of offering the best mileage  The spirit of festivals in order to drive brand’s consideration.  The campaign led by TV and supported through digital and radio along with POS and outdoor presence

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Type of Motives Maruti has driven Alto 800 by “Identifying the Goal objective” as they are primarily targeting climber’s aspirations of belonging to a group which enjoys the ride with the loved ones in a car. They are thriving on the Esteem Needs showcasing the expectations of young single and young couple driven by the expectancy theory.

Influence Strategy “Aspirational group influence” strategy has been applied understanding that Alto 800 is an entry level car market where the individual is influenced by the group which he doesn’t belong but he wishes to be a part of the same and has direct influence on the young and younger attitude which reflects in their advertisement. They have also understood the cultural influence wanted to capture the essence of festivals In India and the insight it got was that the festivals are celebrated by travelling; people go out shopping, meeting friends, relatives and major buying of cars happens during the festival season.

Value and Life Style They have targeted the “Experiencers” segment in VALS system, people who are motivated by Self Expression. This segment has youngest population of VALS Segment which is high on Energy and Social Activity.

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Family Buying Decision The young Generation in the family acts as an initiator, influencers and users. Working Executives or the Elders of the family are the Deciders, Buyers and Maintainers.

Attitude Formation & Change Maruti’s communication is directed towards the Utilitarian Function by emphasizing on features and benefits of the product by integration of its promise of offering the best mileage and the variants CNG and Petrol, also the ease of maneuvering the same in the city being a small car. They have taken advantage of past performance of Alto.

Consumer Learning Process With the Tag line of “Let’s Go Khisko” and the typical Alto Tune in the end they have used the classical conditioning with the repetition of the association with the Iconic Car “Alto” which has been associated with high mileage and good performance. They have also used the positive reinforcement by showing the problem solving in the advertisements.

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