Maruti Suzuki's Kizashi: A Child Born to the Wrong Mother?*

Abstract:

This caselet discusses the Indian automobile giant Maruti Suzuki India Limited's (MSIL) strategy behind the launch of its brand, the Kizashi, in the premium segment. It also goes into the reasons behind the less than enthusiastic response from customers for the Kizashi and where MSIL may have faltered with regard to its positioning strategy for the Kizashi. What future course of action should MSIL take to redeem the Kizashi?

Issues: » To understand MSIL's strategy with regard to the Kizashi's positioning » To understand the relative advantages and disadvantages of creating independent brands in the car industry » To study the expectations of the customers from the brands that are positioned in the premium car segment Introduction In 2011, Maruti Suzuki India Limited (MSIL), the leading car manufacturer in India, launched the Kizashi, a model positioned in the premium segment. Though the Kizashi was a robust product in terms of features and performance, it failed to meet the initial sales expectations. Experts attributed this failure to the incongruence of the model with MSIL's image as a maker of cars for the mass market...

Questions for Discussion:

1. Critically analyze the logic behind MSIL's foray into the premium segment of the car market.
2. Discuss the reasons for the subdued customer response to the Kizashi.
3. What is the future course of action that MSIL should take with regard to the Kizashi?

Key words:
Positioning, brand image, luxury, premium, Maruti, Maruti Suzuki, Kizashi, Kitna Deti Hai

* This caselet is intended for use only in class discussions.
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