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The purpose of this paper is to investigate the value of information in consumer safety complaints for organizational learning.

Empirical analysis of this study uses a novel secondary data set, which is formed by combining complaints data filed with the National Highway Traffic Safety Administration (NHTSA) for potential safety defects, and design change information from 2003 to 2011 model-year vehicles in the USA.

First, the paper demonstrates the value of information embedded in complaints. Second, in the case of radical product redesigns, owing to the lack of direct applicability of consumer feedback based learning, the impact of learning on product safety is found to be muted, third, the results suggest that the safety complaint rates vary by vehicle classes/categories and, fourth, the findings differ from prior research conclusions on vehicle quality. Prior research finds the debuting car models have the lowest repair rates among all car models produced in a given year, but the current study finds the debuting models to have the highest rates of safety complaints.

Quality management literature rarely examines the safety complaints data (which, unlike other consumer feedbacks, focuses exclusively on the safety hazards due to flaws that result in accidents). This paper fills the gap in literature by linking safety complaints with future product quality and organizational learning.

The major issues discussed in the case are related to first-mover advantage, segmenting, targeting and positioning and marketing strategy.

The case could be discussed in a postgraduate program for marketing and brand management and also for strategic management. It could also be used for an executive development program for marketing and business strategy.

The present case is on the Renault Duster, a compact SUV (sports utility vehicle) launched by Renault India in 2012. Equipped with attractive design, innovative features and smart technology, the company used buzz marketing and social media marketing to promote the brand. Competitive pricing of Duster attracted both premium hatchback and sedan buyers in India as the company realized both sales and awards. However, sales started declining from the second half of 2013, and competition used both pricing strategy and exhaustive mass media advertising to compete with the Duster. The other cars from Renault India could not replicate the success of the Duster, which was contributing to around 80 per cent of the total sales of the company in India. Renault thus faced the challenge of losing their ground in the Indian market if they could not revive the sales of the Duster.

Product differentiation and brand positioning (the case is a good example of first-mover advantage); market segmentation and creating a new segment; branding strategy and the role of marketing communications in the same; analyze the role of a long term growth strategy and how it influences product/marketing strategy (business strategy course); understand the probable threats of business due to overdependence on one product (business strategy course); understand the impact of inter-firm rivalry on brandsuccess (business strategy course).

Teaching notes areavailable for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

The case deals with Axel Motor's expansion into India and the clash between expectations and communication styles of the Indian subsidiary and Headquarters. While the subsidiary wants to follow a responsive, market-driven approach to product design and marketing strategy, the top management is driven by the strong belief that the group's core values are universal and no tweaking is needed for particular locations. Anil Mishra, Head of Sales, and the team at the corporate office of Axel Motors India have received an email from Maximilian Klotz, Head of Strategy at Axel Motor's Headquarters. Klotz has expressed complete dissatisfaction with the performance of Axel Motors India. Mishra and the team have to decide how to handle the challenge of getting their input - based on an understanding of the local environment - valued at Headquarters.

Marketing Management, Product Management, Marketing Strategy.

Bachelor of Business Studies, MBA, Executive MBA.

The case throws light on the intensely competitive Indian passenger car market and its unique challenges faced by Hyundai Motors India Limited (HMIL). It tries to capture the evolution of this dynamic industry, which is characterized by regular product launches and re-positioning efforts. The students are expected to assess the performance of HMIL and the success of its positioning efforts through multiple quantitative and qualitative data points given in the case. The students need to come up with recommendations whether, amidst intense competition, Government regulations and changing consumer expectations, HMIL should launch new products in its portfolio? If, yes, in which segments? And what should be the guiding philosophy behind such product launches?

The case is expected to guide students: 1. in comprehending the various macro-environmental factors that has made India an attractive passenger car market to invest and operate in, to virtually all multinational players across all segments; 2. in analyzing how the passenger car market is segmented in India; 3. in assessing the product-driven segment-wise performance by HMIL specifically and organizations in general and what are its implications on decision-making; this is indicative of the brand portfolio management based on BCG Brand/Product Portfolio Growth Share Matrix; 4. in assessing the impact of re-positioning on the firms performance judged before and after the re-positioning efforts by the firm; 5. in analyzing the market potential of SUVs and MUVs in India and whether HMIL should launch new products/brands for these segments; and 6. in deliberating on the guiding philosophy in new product launches around the concept of “Consumer Perceived Value”.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 8: Marketing.

Marketing. Sub subjects: customer segmentation, targeting, positioning and new product launch strategies.

This case can be taught at degree and master level management programmes including distance education mode in business schools having marketing management as one of the subjects.

Maruti Suzuki a leading global Japanese car manufacturer recently launched a new multi utility passenger car with the brand name Ertiga. Ertiga was launched by Maruti Suzuki as life utility vehicle (LUV) using lifestyle categorization instead of using car categorization to position Ertiga using LUV theme. This new category created called LUV is in car categorization between high end hatchbacks and multi utility vehicles/sedans. This case highlights how Maruti Suzuki through effective market research was able to identify a new category and also create and offer a car to the Indian market. This case covers some of the innovative promotional strategies like in film promotions and brand placements which was used to promote Ertiga in India.

The case is designed to enable students to understand the concept of segmentation, targeting, and positioning about the various products launch strategies companies adopt in the emerging markets. Also this case covers the marketing mix concepts and how it was adopted during the Ertiga launch in India.

Teaching notes are available for educators only. Please contact your library to gain login details or email: support@emeraldinsight.com to request teaching notes.

Maruti Suzuki India Limited (MSIL), a joint venture between Maruti Udyog Limited, India and Suzuki Motors, Japan, is considering repositioning its WagonR brand amidst issues of overall decline in sales in the automobile industry. With a market share of more than 53%, MSIL is the market leader in passenger vehicle segment in India, yet it is facing difficulties in driving up sales. The company’s portfolio comprises entry-hatch, mid-hatch, premium-hatch, sedan, SUV/MUV, crossover and van. The case dilemma involves the decision that MSIL’s management should take for the repositioning of WagonR, a compact hatchback, at a time when the automobile industry is showing no signs of recovery. Is it opportune to reposition WagonR, given the current situation of the passenger car market in India? If yes, what can MSIL learn from its past positioning efforts and how can it use insights about consumers’ current perceptions of WagonR’s brand image to arrive at a repositioning decision?

Using the case will help address the following objectives: to expose students to the challenges of repositioning an established brand; appreciate the need for and importance of repositioning established brands; evaluate existing positioning and market conditions for making a sound decision; and develop analytical skills that will prepare them to make decisions in real business scenarios.

The study is suitable for Masters level students in courses on Marketing Management, but it can also work well in elective courses such as brand management.

Teaching notes are available for educators only.

CSS 8: Marketing.

The purpose of this paper is to introduce a new forecasting approach that involves a multicriteria scoring model, which is enhanced with regression analysis and optimization. We compare regression analysis versus our Enhanced Multicriteria Scoring Model by comparing the Error Sum of the Squares in case studies involving top selling automobiles and top Fortune 500 companies. In both the automobile and Fortune 500 case studies, our Enhanced Multicriteria Scoring was more accurate than regression analysis. In practice, our Enhanced Multicriteria Scoring Model should be compared with regression analysis, and the better of the two techniques should be used to forecast. In short, our Enhanced Multicriteria Scoring model is a “breakthrough” modeling technique that will help companies and organizations improve their forecasting.

The purpose of this paper is to identify effective factors, their impact, and find estimation models of the most well-known productivity measurement, hours-per-vehicle (HPV), in the automotive industry in North American manufacturing plants.

Data used in this study were from North American plants that participated in the Harbour’s survey from 2002 to 2006. Data are synthesized using a uniform methodology from information supplied by the plants and supplemented with plant visits by Harbour Consulting auditors. Overall, there are 355 manufacturing plants in the statistical sample from ten different automakers’ brands including DCX, Ford, GM, Honda, Cami, Nummi, Auto Alliance, Mitsubishi, Nissan, and Toyota. The multiple linear regression was used to analyze the data and derive the HPV regression equations.

HPV is a widely recognized production performance indicator that is used by a significant percentage of worldwide automakers. During the study period, the HPV was reduced 54.75 minutes on average in each year. Annual production volume, platform sharing (PS), and flexible manufacturing (FM) factors improve HPV. However, vehicle variety, salaried employees’ percentage of the workforce, available annual working days, and launching a new model penalize HPV. Launching a new model and adding a new variety in body styles or chassis configurations raise the HPV about 2.189 and 0.642 hours, respectively, depending on the car class; however, manufacturing plants compensate for this issue by using PS and FM strategies.

The plants which stopped production of a specific product also are included in this study and were treated similar to the regular plants. The medium duty segment was excluded from the data set due to the fact that the number of observations available was too low. The study can be repeated with additional new factors such as the level of plants’ automation and lean manufacturing either for North American or European companies.

The research investigates current strategies that help automakers to enhance their production performance and reduce their productivity gap. HPV regression equations that are provided in this research may be used effectively to help car makers to set guidelines to improve their productivity with respect to internal and external constraints, strength, weakness, opportunities, and threats.

The aim of this paper is to investigate the cross-border acquisition’s process through the Fiat-Chrysler case. Many automotive companies have considered cross-border mergers and acquisition (M & A) as a necessary step to face increasing competition and globalization, but only few of them were successful. In particular, some best practices in terms of lessons-learned are highlighted.

The paper is based on the analysis of a cross-border acquisition: the qualitative approach allows authors to better understand all the dynamics, complexities and problems that characterize companies facing this process (Yin, 1984). Authors used public information, Internet sources and Fiat’s documents to gather all the necessary information.

In a cross-border acquisition, compatibility and complementarity of products and markets are fundamentals, whereas unmanaged cultural differences, as well as misunderstanding of the real motivations, are a slow but deadly poison: integration and a clear common focus on the final target are key factor for success.

The investigation is limited to the strategy used by Fiat-Chrysler. If the authors’ suggestions can be confirmed or improved by using other case studies, guidelines could be very useful to companies dealing with M & A.

The paper offers recommendations on how big companies can manage a cross-border acquisition, illustrates the key steps to be successful and tries to define the necessary elements for a successful M & A.

The paper shows how two real multinational companies operating in the automotive sector have decided to become one entity; moreover, it highlights the fundamental steps of the process, giving to the management a good example of what must happen in reality.

Strategic control has recently been recognized to serve two purposes – to ensure that strategy is implemented as planned and to shape strategy content during implementation. While there are many analytical tools available for designing strategic controls that ensure strategy implementation, there are no comparable tools available for designing strategic controls that shape strategy content during implementation. This paper develops a framework for designing strategic controls that shape strategy content during implementation. The paper also illustrates the framework through brief case examples.