India has embarked on a long festive period, commencing in mid-August and extending to mid-November, encompassing various regional festivals and national cultural celebrations. In a country known for its diverse cultures, this festive season isn't just about tradition; it's also the season for major decisions and big purchases.The significance of the festive season in the automobile industry cannot be overstated. This is the time when consumers embark on their car-buying journey, making it a crucial period for manufacturers to put their best foot forward. The festive season, ergo, receives a substantial allocation of the marketing budget.
Shashank Srivastava, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India Limited, said, “The total marketing expense for this year is about 1200-1300 Crores and the AdsSpends including digital should be in that region of about 800-900 Crores. The festive season should be about 40% of that.”
Furthermore, amid the 24 days of October festivities, the Federation of Automobile Dealers Associations (FADA) anticipates a remarkable surge in auto retail. According to the Vehicle Retail Data report for September 2022 report, dealers are optimistic that October will mark the best festive season in a decade for the passenger vehicle (PV) segment, projecting even higher sales. The data, released on October 9, demonstrates robust year-on-year (YoY) growth, with automotive retail in September 2023 showing a significant 20 percent double-digit YoY growth.
Srivastava highlighted that almost more than double the sale happens during the festive period. He said, “Festive period starts from 17th August every year, that's Chinga month starting in Kerala. But the end point can vary depending on when the Bhai Dhuj is. 25% of the sale happens in this festive period.”
As per Reuters, Maruti Suzuki sold 189,082 vehicles in August 2023 and witnessed 14.5% increase in YoY growth.
Television remains a powerful medium in the mix
Shashank Srivastava highlighted that during the festive season, Maruti Suzuki relies on two primary media channels: television and Over-The-Top (OTT) platforms which overlaps with digital.
During the festive period, television takes about 50% of the mix and about 25 to 30% is taken by digital.
He mentioned that throughout the year, print media also contributes significantly, with a share of about 25-30%. While TV and digital contribute almost equally with around 30% each and the balance is a mix of radio and ooh and cinema.
In terms of embracing digital platforms to engage with their audience and boost sales during the festive season, Srivastava highlighted the importance of tailoring content to suit the specific objectives of each campaign. He explained that for Maruti Suzuki's Arena brand, imagery is vital, and platforms like Instagram and short videos on social media prove effective.
Facebook, Instagram, Youtube and Google are the four main media channels that we put up most of our money on. In terms of how marketing is done, whether it's content marketing or influencer marketing, that's a mix which varies.
As a part of its digital and social media efforts, apart from content marketing, influencer marketing plays a huge role. Acknowledging the importance of influencer marketing, he said, “Increasingly now we are looking at influencer marketing because we have found that their viewer shape or their follower shape has gained some huge momentum and they, they pass the threshold. A lot of consumers are also going by what other people tell about the brand or about the product and influencers in that sense, play a very big role.”
Srivastava shared an example of their successful influencer marketing campaign which was the Arena Channel Anniversary Campaign, featuring influencers Barkha Singh and Anubhav Singh Bassi, which garnered over 4.94 million views.
Regional relevance
India's diversity is reflected in its celebration of various festivals throughout the country. Srivastava highlighted that Maruti Suzuki recognizes this diversity and has developed a series of films.
He said, “With Onam starting in August in Kerala, to Ganesh Chaturthi in the West and then the Navratri in the Gujarat, Durga Pujo in the Bengal and Jharkhand, Dussehra in Andhra Pradesh, Telangana and Karnataka,and Diwali, Christmas and Lohri, what we have done in this year is, we have 12 films which celebrate the different flavors of festival season in each part of the country.”
The act of purchasing a car during the festive season is a momentous occasion for any consumer. It's not just a transaction; it's a carefully planned milestone, often marked by months of saving and anticipation. These campaigns capture the essence of this emotion, resonating with the audience. Depicting the roles that cars play in the family, these ads are presented with the tagline, ‘There's a festival in every car’.
“The characters, music and costumes in the scene are local. The celebration which is shown is local which creates a good emotion in that area,” he added.
Changing consumer patterns drive automobile trends
Srivastava highlighted that in terms of consumer trends, Maruti Suzuki has observed a surge in sales volume, with expectations of reaching around 4.1 million this year. The preference for SUVs continues to grow, constituting 52% of the sales in September, a trend expected to persist.
Additionally, younger buyers are entering the market, and fleet sales are rebounding. First-time buyers make up approximately 45-47% of customers, while upgraders have increased from 22% to 26%. Regionally, Gujarat, Maharashtra, and Uttar Pradesh are among the top-performing areas.
He explained that the trends in consumer behavior indicate a positive outlook for the automobile industry.
Keeping in mind the changing consumer behavior and with overall focus on digital platforms, TV, and regional marketing, Maruti Suzuki's marketing objective is to connect with diverse audiences during this festive season.
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