For years Together, The Indian Luxury car market had always seen Mercedes Top The Charts. The year 2009 saw a change in The form of BMW. From the 3 Series to The Gran Turismo, BMW has done well to Establish itself in The Domestic Market. And now, it’s betting big on The New X1. Will it prove The Crowd-Puller for BMW?
B&E: Like in 2009, the company again overtook Mercedes in the second half of 2010. What major strategies did you adopt to repeat this feat?
AS: We went the way we wanted to go. It is not about an arrogant organisation but about a self-confident organisation. We wanted to be #1 as we have always perceived that as a symbol of success. Obviously, people got nervous in the beginning of 2010, as we were running behind for months. But we did not panic and hence, did not do anything stupid. We knew that there was a new 5-Series hitting the market in the second half, which would help cover the gap. And it did just that.
B&E: The luxury car market has shaped up well in 2010. What kind of growth are you expecting in 2011?
AS: We are very bullish for next year. However, I don’t know whether we will be able to grow at the same pace as we did in 2010, because 2009 was a period of slowdown, wherein the luxury car segment did not grow much. But now with X1 in our portfolio coupled with the growth in dealership network, we do hope for double digit growth in 2011 as well.
B&E: A few days back, you turned down a deal that could have seen 101 BMW cars being purchased in Aurangabad. Some months back, your arch rival Mercedes-Benz signed a similar deal successfully. So, why did you decline the offer?
AS: We have set up dealerships across the country to treat customers as individuals. If customers group-up and start demanding a 25% discount on the retail price, no individual in the country would thereon buy BMW cars without a 25% discount. It would have been the first step of brand erosion at the cost of a 101 units increase in sales volume. Though I would have loved to sell 101 more cars, post a long discussion on this in New Delhi, we finally decided that it was not worth jeopardising the BMW brand (and dealers’ profitability) for the sake of volumes.
AS: We went the way we wanted to go. It is not about an arrogant organisation but about a self-confident organisation. We wanted to be #1 as we have always perceived that as a symbol of success. Obviously, people got nervous in the beginning of 2010, as we were running behind for months. But we did not panic and hence, did not do anything stupid. We knew that there was a new 5-Series hitting the market in the second half, which would help cover the gap. And it did just that.
B&E: The luxury car market has shaped up well in 2010. What kind of growth are you expecting in 2011?
AS: We are very bullish for next year. However, I don’t know whether we will be able to grow at the same pace as we did in 2010, because 2009 was a period of slowdown, wherein the luxury car segment did not grow much. But now with X1 in our portfolio coupled with the growth in dealership network, we do hope for double digit growth in 2011 as well.
B&E: A few days back, you turned down a deal that could have seen 101 BMW cars being purchased in Aurangabad. Some months back, your arch rival Mercedes-Benz signed a similar deal successfully. So, why did you decline the offer?
AS: We have set up dealerships across the country to treat customers as individuals. If customers group-up and start demanding a 25% discount on the retail price, no individual in the country would thereon buy BMW cars without a 25% discount. It would have been the first step of brand erosion at the cost of a 101 units increase in sales volume. Though I would have loved to sell 101 more cars, post a long discussion on this in New Delhi, we finally decided that it was not worth jeopardising the BMW brand (and dealers’ profitability) for the sake of volumes.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
