Overtaking in the New Millennium

Overtaking in the New Millennium

By Navneet Dhawan

I don 't meet competition, I crush it.
Charles Revson

Consider the following facts:

In India, 15 automobile companies are in the fray, and one has already gone out,

India's production capacity for automobiles is 1.2 million units, while utilisation is only 0.64 million units.

In Japan, out of the 10 automobile companies, 5 are making losses. In India, there are 15 companies, and the question is- how many of these can make profits now? Also, even those that are making profits now cannot be guaranteed to do so in the future, as the future is a survival game,

Mega mergers and alliances are now the very happening phase in the global auto industry. General Motors has upped its stake in Suzuki Motor Corporation to 10 per cent, and plans to storm the Asian market in 2002 with a jointly produced car- the ygm1 which was unveiled at the Tokyo Motor Show. This alliance is inevitably bound to cast its shadow on India. As Osamu Suzuki, President and CEO of Suzuki Motor Corporation mentioned during his recent visit to India: "India's market will be very important in the new millennium, only 4 to 5 groups can survive globally. In India, too my apprehension is that only 4 to 5 manufacturers will be able to survive the competition. The scope of the GM-Suzuki alliance, is not only global, but also should be seen in India",

And above all, as the Indian consumer has now a wide range of choices available, he has certainly come of age in terms of his expectations,

Assuming universal validity of these facts, it would be imperative for any autmobile company operating any where in the world, to think of out of box strategies with prime focus on the customer service. Thus, while the technological excellence and outstanding product features would become the critical minimum qualifiers to enter the market, the competitive edge would be determined by the extent to which the car company is able to 'WOW' the customer.

While the exact strategies could best be worked out by the respective car companies, it would certainly be worthwhile to consider the following:

Anytime Anywhere Assistance : If my car suddenly stops in the middle of the night and that too in a godforsaken place, is there anythingI can do other than hopefor the best ?

This involves providing round the clock assistance to customers. In event of a breakdown or problems, the customers could just call up toll free number(s) to get connected to a 24 hours, 365days-a year customer services desk, manned by well- trained staff, and specify the nature of the problem. If the customer services desk is unable to get the problem fixed through the telephone, then they should arrange to send a relief vehicle to the point at which the customer is stranded. The time involved in sending the relief vehicle should be clearly specified to the customer. If need arises, the customer(s) could be given a lift by the relief vehicle, while the fault or the problem is being fixed at the spot.

Ensure tension free holidays with us : I would love to drive down to my holiday destination, but what if my car develops a problem on the way ?

Customers, who wish to drive down to their holiday destinations could obtain prior information regarding the toll free, as well as the contact numbers, and other details of the authorised service stations falling en-route they intend to take. In the event of any unexpected breakdown, the customers could either call up the toll free number, or the nearest service station, which should address the complaint on a priority basis. If required a relief vehicle could be rushed within the shortest possible time-frame to the spot, where the customer is stranded. The time involved in reaching this relief vehicle should be clearly specified to the customer.

As an added bonus to the customers, the car companies could possibly preempt such unfortunate events by offering complete checkups at marginal costs prior to the journey.

And miles to go: I have 2 cars, one belongs to company X, and other of company Y. As of now I do not really have a preference of one over the other.

Automobile companies could show their appreciation and gratitude to their customers by providing bonus points in direct proportion to the number of kilometers done by their cars, within blocks of, say, 3 months, 6 months or 1 year, from the date of registration. These bonus points could then be redeemed for attractive prizes sponsored by either the car companies themselves or in association with their alliance partners.

Tap second hand car segment: I can just afford a second-hand car today, but how do I assure myself that I am getting the right value for my hard earned money?

The second-hand car segment is also a significant one, going by the size of the market, in terms of potential buyers. However, this segment is in an unorganised sector, where the buyer is generally dependent on his gut feel and others' opinion, regarding the worthiness of the car he proposes to buy for a certain price. This could be regulated by the car companies, by appointing authorised dealers competent enough to issue fitness certificate for the second-hand cars, on behalf of the company. This certificate, apart from guaranteeing the road worthiness, etc., should also indicate the value of the car. This would undoubtedly boost up the confidence levels of the prospective buyers, which would in turn translate to bigger market share for the car company/ies.

Preferred Customer concept: I sold off my car of company X, and now, I would like to try out a car of company Y.

On the flip ride, those selling their cars through such channels could be given a preferred customer certificate, which could enable them to acquire a brand new car at a price lower, than the prevailing market rates, and also entitle them to certain benefits like car finance at lower interest rates, free once a year complete car checkups, discounts on certain components, and add on features in their new cars etc.

This would go a long way in preventing the existing customers from drifting away to competition. A further extension of this concept could include added benefits to those possessing more than 1 vehicle of the same company. The benefits could be in direct proportions to the number/ models possessed by the customers.

Customer as Co-worker : I can give many suggestions/ ideas to the company. But would it be worth it for me?

This concept essentially entails eliciting active participation from the customers, not only in maintaining ???, but further strengthening the brand image. The customers could be encouraged to send in their complaints/ suggestions directly to the head quarters of the car company. While the complaints should be addressed within the shortest possible time frame, any valuable suggestion should be appreciated by way of attractive prizes. Additionally, the car company could conduct periodic surveys among the customers to guage their satisfaction levels, and perceptions vis-a-vis the competitors. The results of such surveys should be analysed and shared not only within the company, but also among the company's vendors, and authorised dealers, who would have collective stake in the overall performance of the company.

Focus on dealership quality: wow! it was such a pleasure to visit that dealer !

As the dealers represent the company to the customers, all efforts should be made to ensure that they adhere to the service standards, as spelt out by the automobile companies themselves. Their performances should be measured using predefined customer satisfaction parameters as the benchmark. Those exceeding this benchmark or innovating new practices, which further enhance quality of service and dealership, should be recognised on a national level, and their success stories should be broadcasted to all the respective dealers for their benefit and necessary action.

Infotech: That's IT for me!

The dot com world represents immense opportunities for the automobile industry. Both existing and the potential customers could be e-nabled to facilitate online interaction with the car companies through their respective websites. These interactions could relate to inquiries on the availability of new models and their prices, to the extent that a model could be customised, as per the desires and needs of the respective customer(s), the delivery schedules, payment terms, and car finance.

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