Marketing Myopia

PRESENDED BYDIWAKAR CHATURVEDI

1

MARKETING MYOPIA MARKETING MYOPIA LITERALLY MEANS SHORT SIGHTEDNESS. THE INEFFICIENCY OF THE TOP MANAGEMENT TO BROADLY DEFINE ITS BUSINESS AND MEET CUSTOMERS NEEDS RESULTING TO A DECLINE OF THE PRODUCT.

2

FACTORS RESPONSIBLE FOR MYOPIA  FAILURE OF TOP MANAGEMENT TO

PREDICT THE FUTURE DEMAND.  THE BELIEF THAT THERE IS NO COMPETITIVE SUBSTITUTE FOR THE PRODUCT.  EMPHASIS ON MASS PRODUCTION AND IN ECONOMIES OF SCALE i.e. BEING PRODUCT ORIENTED RATHER THAN CUSTOMER ORIENTED  LACK OF RESEARCH WHAT THE CUSTOMER WANTS. 3

CASE: BRAND : AMBASSADOR  COMPANY: HINDUSTAN MOTORS  AGENCY: MUDRA/ EQUUS  BRAND ANALYSIS COUNT: 326

4

HISTORY: CALLED AS THE FIRST INDIAN CAR  OWNES ITS DESIGN AND TECHNOLOGY

TO BRITISH CAR MODEL MORRIS OXFORD BUILT BY MORRIS MOTOR Co AT OXFORD U.K.  HINDUSTAN MOTORS LAUNCHED THE INDIANISED VERSION OF MORRIS OXFORD AS AMBASSODOR IN 1958.  OCCUPIED & RULED INDIAN CAR MARKET FORM 1958-1980 5

FACTORS RESPONSIBLE FOR GROWTH OF AMBY OVER DECASES.  ONLY CAR WITH DIESAL OPTION.  LARGE SPACED.  PERCEPTION, STURDY CAR IDEAL FOR

INDIAN MADE.  PERCEPTION OF BEING LESS EXPENSIVE TO MAINTAIN.  OVER 16% BRAND SALES CAME FROM GOVERNMENT.

6

REASONS ATTRIBUTED TO BRAND FAILURE FOR FOUR DECADES THE BRAND HAS

BEEN TABING ITS CUSTOMERS FOR GRANTED.  IF WE LOOK AT THE PRODUCT, AMBY NEVER

CHANGED WITH TIMES.  HIGHLY PRICES – OVER TIME.  BRAND TRIED TO MAKE A FEW CHANGES AND

UPGRADES WERE MADE NAMED AS MARK 2, MARK 3, MARK4 BUT LOOK AND BUILT IN QUALITY REMAINED SAME.

 HM NEVER BOTHERED TO RATIONALIZE THE

PRICE OF BRAND.  ACHIEVED FULL DEPRECIATION IN 2000 BUT NEVER THOUGHT OF PASSING ON THE

7

CONTNUIED: INDICA TOOK AWAY TAXI CAR MARKET AND

  



CUSTOMERS GOT A NEW OPTION FOR DIESAL CAR WHICH WAS A MODERN ONF IMMENSE COMPETITION. CUSTOMER IS SPOILT WITH CHOICES. IN 2002 Mr. ATAL BIHARI VAJPAI REPLACED AMBASSADOR WITH A BMW Limo, FROM THEN IT LOST THE POSITION OF BEING FIRST POLITICICANS’ CHOICE . THE CAR LACKED THE QUALITY AND REFINEMENT & RATTLING SOUNDS AND RUSTLING WAS COMMON COMPLAINTS.

8

LESSON: A BRAND EXISTS IN THE MARKET TILL IT BECOMES DATED. ONCE THE BRAND BECOMES DATED, IT IS VIRTUALLY IMPOSSIBLE TO REJUVENATE THE BRAND.  BRAND MUST GO TO THE CONSUMER FOR

IDEAS.  CHANGES IN PRODUCT OR PROMOTION CAN SUSTAIN THE BRAND EVEN IN EMERGING COMPETITION.  AMBY SHOULD LEARN FROM MARUTI 800. THE BRAND IS STILL SURVIVING BECAUSE IT MADE CHANGES ALONG WITH CHANGING CONSUMER VALUES.

9

THANKS DIWAKAR CHATURVEDI

10