Maruti Suzuki is exploring new innovations across OOH, traditional, digital media: Partho Banerjee, senior executive officer, marketing and sales

Maruti Suzuki will be heavily focusing on digital marketing this year. It will be using hyperlocal tools and employing data analytics and CRM programmes to enhance its reach.

In an interview with afaqs!, Partho Banerjee, senior executive officer, marketing and sales, Maruti Suzuki India, says that the automobile giant will be focusing heavily on digital marketing to effectively communicate with consumers about its new launches.

“Using hyperlocal tools like Google My Business, we can connect with customers on a one-to-one basis. Leveraging our extensive customer database, we are employing data analytics and our CRM programme to enhance our outreach. Additionally, we are exploring new innovations across digital platforms, out-of-home advertising, and traditional media,” he says.

It is primarily focusing on hyper-local marketing, which is essentially a call-to-action strategy. Additionally, it is revamping its website to enhance customer experience. Banerjee says the speed of its response is a key differentiator.

“I firmly believe that responding quickly to customer interest makes a substantial difference. With close to 4,000 sales outlets across the country, we can quickly reach customers with the intent to buy a car within a 10 km radius. Our system allows us to communicate efficiently with customers through our channel partners, combining digital efforts with our field team to make a significant impact in the auto industry,” he says.

Recently, it has advertised in major events like the ICC Men’s T20 World Cup and Euro Cup, and it is actively engaging on OTT platforms as well as traditional channels. “This comprehensive approach helps us maintain a strong and consistent brand presence across various mediums,” he adds.

Last fiscal year, the company’s total marketing expenditure was approximately Rs 1,200 crores. The marketing mix comprised 35% digital and the remaining 65% traditional marketing, including print, TV, and out-of-home activities.

Taking on the new role on April 1, Banerjee says the most important thing for him this year is to enhance the customer experience and further increase the brand equity of Maruti Suzuki. “To achieve this, it is crucial to understand the needs of our customers more deeply and find better ways to address them. Pitching the right products accordingly is equally important,” he says.

In May, Maruti Suzuki launched the fourth-generation avatar of its popular hatchback Swift "Epic". Banerjee says in the first two months alone, it sold 35,000 cars, and this is only from the petrol variant as the CNG variant has not been launched yet. Last year, it sold around 10,000 to 11,000 petrol vehicles per month, with CNG contributing an additional 2,500 to 3,500 units per month. It is also offering many options in the entry-level small car segment, including Alto K10, Celerio, and S-Presso.

The “Epic” launch has also rejuvenated the premium hatchback segment, he says. He believes that for motorisation to increase in India and for car penetration to rise, the hatchback segment needs to make a strong comeback. As per media reports, the hatchback segment accounts for approximately 28% of total passenger vehicle sales. The premium hatchback segment contributes nearly 60% of total hatchback sales.

“While it may take two to three years for it to make a comeback, it is clear that not everyone will upgrade directly to a mid-SUV or a premium SUV,” he adds.

The new Swift will also be available on a subscription option at Rs 17,436 per month. This subscription model is a relatively new concept in India, though it's quite popular in the US. The typical customer for this model is someone who is in the country for a short duration, perhaps a few months to a year. This model offers them the convenience of using a car for eight to nine months or a year and then returning it. Banerjee says the model is picking up and it recently crossed the 10,000 mark.

“This is a promising number since the inception of the service. In metro cities like Bengaluru and Hyderabad, we are seeing significant traction. We believe in continuing to pursue this model, as it will take time to gain broader acceptance,” he says.

With the subscription model, the customer pays a monthly EMI, which covers servicing, breakdowns, and other maintenance costs. The customer only needs to fill up the fuel and drive; Maruti Suzuki takes care of everything else.

“We have a dedicated team working on the subscription model, focusing on targeted marketing rather than mass media. We identify customer profiles and pitch the benefits of the subscription model directly to them,” he says.