Forget repeat purchase, repeat sales is the new found vernacular amongst those in the trade of luxury cars. Precisely four months back, Mercedes-Benz had started contacting its consumers in India (who had bought its cars about three to four years back), to discover with certainty whether they were willing to sell-off their used Mercedes automobile(s). The case history isn’t much different in the overseas markets. But unlike any other Merc-driven muse of history, this one has the Indian epic spoken with great ardor. It was christened the ‘Proven Exclusivity program’, and little under a year of this new found strategy being implemented in the West to increase market penetration, Mercedes decided to try out the recipe in India.
Two months after the first Mercedes customer was contacted (in April 2010), the first lot of pre-owned cars was ready to hit the Indian market. Many believe that this is a defensive act that will translate into greater command over market share for Merc. They are right. Call it beating a retreat, but this was an expected strategy, especially after Mercedes was displaced by BMW in 2009 (in terms of unit sales) as the king of the Indian luxury car market. But as destiny would desire, Mercedes is today back at the numero uno spot after being left behind in the sweepstakes for a few months.
A few months back, Peter Kronschabl, the-then President of BMW India had told 4Ps B&M, “Getting to the top position is easier compared to the efforts that go in retaining it, especially when it comes to the Indian market.” Mercedes has seemingly learnt its lesson, and is today not only retaining its feathered hat but also growing through innovative schemes, with the ‘Proven Exclusivity program’ being the first card to be drawn out in the process.
According to data released by Mercedes-Benz, the company has sold close to 2449 vehicles during the first half of 2010, which is 12.2% more than what its closest competitor BMW could manage. [Even BMW had announced its entry into the used-car market more than a year back, but the company will take at least a few months before it makes significant headway in the pre-owned car market.]
“People in India have grown seeing Mercedes brand over the past many many years and we enjoy a very high aspirational value in the mind of the consumer,” explains Wilfried Aulbur, MD, Mercedes-Benz India to 4Ps B&M, while talking about the bounceback of the luxury brand in India.
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Source : IIPM Editorial, 2011.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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