Page 159 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 8: Business Level Strategies

Risk Management Notes

Managing risk is a tactic that every firm employs in its own way. The simple act of founding a
business is itself a risk, since market trends and customer behaviour can be difficult to predict.
For an established business, managing risk means making good decisions about where to invest
funds and what types of products to focus on.

Task Identify the tactics and strategies used by Nestle Maggi to tackle competition.

Caselet Brand Repositioning – Maruti Suzuki Wagon R

rom ‘Feel at home’ to ‘Inspired Engineering’- Maruti Udyog’s premium product in
the B segment of the passenger car market, the Wagon R, is undergoing a new brand
Fpositioning.
This shift in emphasis, say company officials, is on account of the Multi-Activity Vehicle’s
tremendous success.
An almost 100 per cent jump in sales in October 2002 over that in October 2001 and a 23 per
cent increase in sales for the April-October 2002 period over the same period last year is
what has prompted Maruti to go in for this new brand positioning.
According to the company officials, Maruti sold 3,381 units of the Wagon R in October
2002 against 1,680 in October last year — a 101 per cent growth. Likewise, the company
sold 17,531 units of the car in April-October 2002 against 14,291 in the same period last
year.
Buoyed by the encouraging sales, the officials say, Maruti will shortly launch the new
campaign based on the ‘Inspired Engineering’ theme. It takes on from the earlier campaign
that focussed on the ‘Feel at home’ theme, which helped establish a strong emotional bond
with the target consumer, they say.

The new campaign will focus on Wagon R, a uniquely designed product for people who
lead interesting lives. The product gels with their lifestyle, reflecting their confidence and
multifaceted personality. By sheer excellence of engineering it enables them to be whatever
they choose to be — and that is what makes the buyers interested, point out the officials.
According to them, the new positioning “Wagon R — Inspired Engineering” reflects the
fact that the car is a piece of unmatched, excellent engineering and that some of the most
interesting and discerning people drive it.

“It defied convention and changed the way people looked at a car. It is simply unmatched
in performance and comfort. Test-drive one and you’ll never settle for anything ordinary
again,” goes the caption for one of the print advertisements, while another goes like this:
“There are some people who tower over the others. They follow their hearts, create their
own rules and lead much fuller lives. The Wagon R is for such people. The result of
inspired engineering, it defied convention and changed the way people looked at a car...“
According to the officials, the new brand positioning is based on research that showed the
Wagon R buyer as being balanced, ambitious, discerning, self-assured and intelligent. At
the same time, they have deep-rooted human values. Thus, they lead fuller lives. “Thus
the new positioning is in sync with the personality of the buyer and the product,” the
officials say.

Source: www.thehindubusinessline.com
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