Sep 03, 2002 10:23 AM
4769 Views
(Updated Jul 26, 2002 11:48 AM)
The Zen has been around for donkey's years. Virtually unchanged, like the Ambassadors and Fiats that were de-facto when I used to hurry to school, two decades plus ago!
When introduced, the Zen was a coveted car: it was exported to Hungary and other (less developed?) European countries. It had an Air Conditioner that beat the pants off cars manufactured at that point of time, and made the Ambys and Fiats appear to stand still, while it zoomed off into the distant horizon. Combine that with sure-stopping brakes, and you had a winner all the way... at a price, of course!
Today, the Zen is no longer the sought after small car: attention has shifted to the Santros, the Indicas and lately the Palios, all of which come at about the same price. In my opinion, the following factors are the cause of this rapid erosion of the Zen's perceived value:
1) Unchanged product Although we have seen the original Zen give birth to the Zen LX/ VX/ LXi/ LXi/ D (for Diesel)/ AT (automatic Transmission), basically, there have been no changes in the model
2) Cannibalization Introduction of other models in the same price range by Maruti: The WagonR and more recently the Alto, have eaten into the Zen's share
3) Availability of better Cars Better cars like the Santro and Indica are now available. The Amby and Fiat succeeded under a protected duopoly. With the industry opening up, you had better change strategies!
Even today, the Zen's pick-up and brakes are remarkably good. The comfortable feeling inside the Zen is also very good. Mileage is another strong point, along with sales and support, a common factor for all Maruti products, thanks to their across-the-country line-up of sales and service centers.
The bottom line here is that unless you keep fiddling with the design of your product line-up, you are bound to leak market share! The Zen, more than any other car in the post-liberalization era, demonstrates that!
