Cielo case

Problems
1. High reliance on import leading to cost pressure on car + spares Infrastructure issues not factored (Bad roads) 2. Manufacturing in non customized plant led to quality issues right in the beginning Credibility took a hit right in the beginning 3. Inadequate training to frontline staff for objection handling Brand imagery took a hit 4. Economic slowdown in mid 1990s impaired growth plans No contingency plan 5. No clear segmentation Why were existing esteem owners targeted? 6. Launched in premium segment but price went into regular downward revision Existing customers felt cheated Prospective customers lost traction with brand Biggest dent caused due to hefty price cut taken in Jan 1998 7. Every mktg. effort was driven through price volume lens Brand took a back seat in a high involvement category 8. Inconsistent Promotion Technology Premium family More value for less 9. Huge borrowings caused increased liquidity crunch