Kathor Krezza - Large Scale Commercial Vehicle Company

Kathor - Krezza

Kathor is a large scale commercial vehicle manufacturer. They started their manufacturing in 1964 and by 1985 became the largest commercial vehicle company on the scale of number of vehicles sold. In 1995, Kathor launched its first diesel hatchback which soon disrupted the small passenger vehicle segment. Soon the company launched 2 more hatchbacks and started to be recognized as company making cars with value for money.

It is also strongly represented among fleet cars, thereby creating this perception in consumers’ minds of being a fleet segment brand. Over the years this had given the brand a mass market badge and made it tough for Kathors to play in the premium segment. However, In January 2018, Kathor has recently launched its first SUV segment car – Krezza.

This segment is well entrenched with many successful brands. Toyota Innova, Mahindra XUV and Jeep Compass have been consolidating their share in the SUV space. Hence, Kathor has been focusing on the automatic variant tapping on the ever-increasing travel time on the Indian roads. On an average, the automatic variant costs approximately Rs. 1,20,000 more than the normal variant. For Kathor, the target is to offer the clutch-free feature(automatic) for about 50 percent of its product portfolio.

The Krezza’s target audience is in their late 30s. They are well educated and reside in a tier-1 city. Majority of them are entrepreneurs who have built their business from scratch. They are socially active and considers the SUV as an extension of their personality and through the vehicle, they like to show everyone who they are, a symbol of premium lifestyle. Family time is important to them and they ensure that they go on trips and spend quality time together. They buy SUVs either for the space and comfort it provides to their families, or to seek adventure and display power.

Krezza Price (Manual) – Rs. 12.66 Lacs
Krezza Price (Automatic) – Rs. 13.9 Lacs

Your Task:

1. Propose a marketing strategy to sell 20,000 Brezza per year with a special focus on automatic variant to reach the level of 50% automatic share in the sales.
2. Suggest ways to come out of the image of fleet segment brand and improve customer experience at dealerships.

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The Solution should be a max 7 slide presentation including the opening and closing slide. It should cover the following points:

- Industry analysis of SUV sector
- Market positioning of Krezza
- Strategy to sell 20,000 cars
- Recommendations for achieving the 50% automatic share
- Strategy for improving the brand image and customer experience at dealership