Case study: WagonR The Journey of a Leader

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The Indian Passenger Car Industry

Today, India is home to more than 40 million passenger vehicles (Source: SIAM & Industry Excerpts).
The Indian Passenger Car and Commercial Vehicle manufacturing industry is the seventh largest in the world,
with an annual production of more than 2.6 million units in 2009 (Source: SIAM & Industry Excerpts). Naturally,
global manufacturers are increasing their investments across the various automobile category to tap into the
growing demand. Very evident from the fact that India has witnessed more number of passenger car brands
and models in the last decade than over the previous 5 decades. The table below gives the basic segmentation
of the passenger car industry.

Source:SIAM

The Passenger car market in India is one of the fastest growing markets of the world, and from the car buyers
perspective its a market which offers plenty of choices across all segments (especially A2) and a wide range of
brands. Please refer to the chart I below for the sales in the overall passenger car market as well as individual
segment sales.

* Chart I
Source:SIAM

* Currently the A2 segment comprises of the following: MSIL (ALTO, K 10, ESTILO, A-STAR, WAGONR, SWIFT,
RITZ), Hyundai (SANTRO, I 10, I 20), Tata Motors (INDICA), Ford (FIGO), Fiat (GRANDE PUNTO), Chevrolet
(BEAT), Honda (Jazz), Nissan (MICRA), VW (POLO), Skoda (FABIA).

Disclaimer:Thiscasestudyhasbeencompiledfrominformationfreelyavailablefrompublicsources.Itismerelyintended
tobeusedforeducationalpurposesonly.

Case study: WagonR The Journey of a Leader

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WagonR Debut and Evolution

In the year 1999, the first tall boy design was launched from MUL (MSIL Udyog Ltd currently MSIL
Suzuki India Ltd. - MSIL). The product offered the Indian car buyer great utilitarian benefits & practicality
along with best-in-class space and good mileage. Hence, keeping in line with the product promise, the brand
was positioned as a car full of ideas highlighting the brands practicality & versatility. MSIL invested in a series
of TVCs (television commercials) that were built on the same proposition.
WagonR from its inception was ahead in many aspects. It was the first tall boy design and also the
first to offer safety features in its class. It also was a first in offering consumers the flexibility in the choice of
fuel; it gave the Indian car buyer the dual fuel option.
And while the brand has faced tough challenges over the years, it has successfully overcome them in
its journey to becoming one of the leaders in the segment. Case in point was the uniqueness of the design
which posed a challenge for WagonR when it was launched. The Tall Boy Design was the first in the Indian
compact car segment which at that time was considered to be ahead of its times. Initially the shape took time
to get accepted by car buyers. However, brand WagonR looked to create relatability with the audience in
order to communicate the benefits of this uniqueness in shape and the overall value the car offered to the
consumers. WagonR was positioned as Indias first Multi Activity Vehicle (MAV). This followed the roll out of
two brand campaigns Challenge Boredom and Feel at Home in the years 2000 and 2001 respectively.
The Multi-Activity Vehicle positioning gave the brand some traction in terms of highlighting the
products versatility but it was still some distance away from being relatable to the consumers. The brand
slowly started getting accepted by the very rational Indian consumer. However, the brands potential in terms
of sales was yet to be realized fully.
Being a pioneer, MSIL looked towards a product makeover and a change in stance in the way the
brand was talking to its audience in order to keep pace with their needs and expectations. A new campaign
was launched in 2002 Interesting People Inspired Engineering; marking the first time any car brand tried
to tap into the buyer psychographics.
A minor model change hit the roads in 2003 and successfully managed to meet the expectations of the
changing consumer and addressed his needs in terms of style and sophistication. This became the inflection
point in WagonRs history and the brand never looked back. Not only did the brand gain great traction in sales
it also garnered high positive disposition in the consumer minds. Further research into the Brand buyers
indicated that those who bought the brand were buying it after a careful research basis their needs and other
market offerings. Essentially, the buyers were smart when picking the car of their choice WagonR. This
prompted the change in the positioning plank from being a Multi-Activity Vehicle which was functionally led,
to a car brand For the Smarter Race, which was emotionally led.
This positioning was sustained from 2004 to 2006 till a facelift of the product was introduced. Also
WagonR portfolio got a new variant in the form of the LPG Duo, during this time, marking the birth of the first
dual fuel option in India. WagonR had a great ride since 2003 with sales increasing at an above industry
average of 40% CAGR till 2007. (Please refer to the chart II below). WagonR became one of the industry
leaders clocking highest sales in the passenger A2 segment and could assume leadership position with its
pioneering stance in several aspects.

Disclaimer:Thiscasestudyhasbeencompiledfrominformationfreelyavailablefrompublicsources.Itismerelyintended
tobeusedforeducationalpurposesonly.

Case study: WagonR The Journey of a Leader

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* Chart II
Source:SIAM
But in the rapidly changing Indian car market, there was an influx of brands coming in. By the year 2008 there
was increasing competition in the A2 segment which offered more choices to the Indian consumers. The new
age consumer wanted to experience superior products. WagonR, on the other hand, continued to take forward
MSILs legacy of being a trusted brand. Trust and reliability were not associated with the newer players in the
market. This fact won WagonR many loyalists.
However, it also became imperative for a leading brand such as WagonR to stay ahead of the competition and
continue to be a pioneer brand. Also, despite the increasing competition, the brand never lost ground, in
terms of sales, the brand continued to be consistent (refer to Chart II) only reinforcing the voice of the
customer. Nevertheless, for a brand that achieved good numbers, and steadily rose, it was important to create
a distinct appeal and imagery.

WagonR: The Thought Leader

To counter the rising competition, the brand positioning was strengthened further by leveraging the leadership
aspect, highlighted by sales. Therefore, the new communication plank for the brand became Smart Leader.
The brand continued to retain its core value of being Smart while confronting the challenges on the
consumer front a) To make the brand more aspirational & b) Consumer needs evolving beyond rational
benefits to appeal value; and the brand/product front - a) Contemporary offerings b) New product launches.
It was now quintessential for WagonR to maintain its leadership position and the brand standing in the market
by reinforcing the core brand values and sharpening its positioning. Clearly, WagonR was the largest selling car
in the segment. Hence Leadership was added as a new dimension to the core promise of the brand Smartness. The Leadership stance was extended beyond just numbers. This was also, true to its pioneering
spirit. A shift was seen from a fact based leadership to thought based leadership with the intent to move to a
more sustainable brand platform Thought Leadership. To reinforce this platform, MSIL did interesting
outdoor activities across major cities and at airports and followed it up with similar messaging in magazines
and placards. To further the brand assets the 3 new initiatives were deployed
1) Brand Ambassdaor - Shashank Srivastava, chief general manager, Marketing, MSIL, told afaqs!, "Madhavan
is a very geographically neutral face as he is well known across the country. WagonR's contemporary,
pragmatic and balanced brand values resonate well in his personality. At this juncture, we seek our TG
(target group) in middle or upper middle class families, who look for space and sound engineering. Also, we
will continue to reach out to those buyers who are looking for a rational and performance oriented
vehicle".
2) Brand Mascot Mr. Wizer becomes the first mascot in the Indian Passenger Car Industry
3) Think Big Challenge A national property created on the lines of Thought Leadership, furthering the
stance of the brand as a smart leader.

Disclaimer:Thiscasestudyhasbeencompiledfrominformationfreelyavailablefrompublicsources.Itismerelyintended
tobeusedforeducationalpurposesonly.

Case study: WagonR The Journey of a Leader

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WagonR: Full Model Change (FMC)

By May 2010, WagonR had sold 8.5 lakh cars to the Indian consumers and stamped its authority in the
A2 segment. At the same time the Brand and Engineering (product) teams were aware of the fact that
consumers are fast evolving with rising aspiration levels, esteem and status needs, growing demand for
experience and indulgence, coupled with the fact that they were becoming more self-expressive day by day.
An all new WagonR with a complete facelift on a technologically advanced platform was conceived.
Following were the findings of an exercise conducted to gauge the perception of the product in the market
1) The new car seen as a more contemporary offering.
2) The pleasure points of the old WagonR were carried forward in the new model (Comfort, Safety, Space
and Reliability) - Smart Understated Performance.
3) The key difference is in the level of detailing and finishing.
4) Additional dimension of Luxury feel, But, at the core it is still the Smartest Choice.
For the launch of the 'All new WagonR', the challenge was to infuse newness into something one has
always known. With a Full Model Change (FMC) and an all New WagonR, the marketers had the following broad
objectives.

Retain leadership position and consolidate market share

Make the brand contemporary - Highlight the dimension of SMARTNESS which is contemporary and
create an aspiration for the brand
Reinforce the brand values by building an imagery to suit the evolving consumer while making the
sustainable and distinctive brand positioning to thwart competitive launches

The All New WagonR was launched with a new campaign, keeping the inherent brand associations of
Leadership, Smart and Popular intact. The new campaign, the Blue-eyed boy, leveraged the popularity of the
car (favourite car) and the need to build aspiration which was now being supported by the added dimension of
luxury in the product.
The Blue Eyed Boy campaign highlighted the All New WagonR in all its glory and announced the arrival of the
new avatar of Indias favourite compact car - the WagonR. It also described the feeling of being the centre of
attraction and adulation that the consumer experiences because of the SMART choice that he has made. The
Blue Eyed Boy was also a salute to consumers who contributed to making the WagonR a celebrated and the
favourite car brand in the country.

Questions
1)

How would you describe a typical Consumer of the WagonR? Please describe how you would see his Age,
Education, Occupation, Lifestyle, Values & Attitudes. (Demographic, Psychographic and Attitudinal
aspects of the consumer)

2)

How would you describe the image of the WagonR before the New Product was launched in the market
(FMC=Full Model Change)?

3)

How would you advise the marketers at MSIL to communicate about the Brand to the consumers? What
kind of image do you think MSIL must build for the New WagonR?

4)

How would you describe the current advertising campaign of WagonR? What in your opinion could have
been done better? Suggest an alternate approach.

Disclaimer:Thiscasestudyhasbeencompiledfrominformationfreelyavailablefrompublicsources.Itismerelyintended
tobeusedforeducationalpurposesonly.

Case study: WagonR The Journey of a Leader

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UNIQUE CODE
NAME
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CITY
MOBILE NUMBER
EMAIL
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Disclaimer:Thiscasestudyhasbeencompiledfrominformationfreelyavailablefrompublicsources.Itismerelyintended
tobeusedforeducationalpurposesonly.

Case study: WagonR The Journey of a Leader

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Please give your feedback on WagonR Think Big Challenge 2.
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Would your friends, colleagues or family members like to purchase a WagonR?
Please share their details.
Name

Address

Phone number

Occupation

1
2
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4

Disclaimer:Thiscasestudyhasbeencompiledfrominformationfreelyavailablefrompublicsources.Itismerelyintended
tobeusedforeducationalpurposesonly.