Being practical

About two years after discontinuing production of the Alto, Pak Suzuki has now launched the Wagon R to fill the gap.

According to Danish Dalia, Manager Marketing, Pak Suzuki, in 2012, the government made a sudden decision that all vehicles be Euro 2 compliant.

“We were able to convert the rest of our vehicles to Euro 2, but since the Alto’s technology could not be converted, we had to discontinue it. It was then that we started working on the Wagon R project.”

The two-year time lag in launching the car was a result of the fact that Suzuki’s management did not want to rush into any decision but it is hopeful that the Wagon R will become a huge success just like the Mehran.

“When Wagon R was launched in Japan in 2003, it remained the bestselling car for six consecutive years and as far as Suzuki’s internal network is concerned, Wagon R is the most successful brand. In India it has been the second bestselling car,” Dalia adds.

Other reasons for Suzuki’s optimism is the 1000cc K series engine (the most fuel efficient technology Suzuki has) and a roomy interior; as a result Wagon R fulfills two of the main requirements of a family car in Pakistan – fuel economy and a roomy cabin.

Wagon R is targeted at the middle class and young people between 25 to 35 years, who have started their careers and want a low maintenance, fuel efficient car. After the Alto was discontinued the requirements of this segment were met by imported cars and they are the cars Dalia considers as competition.

“As far as Pakistan’s local market is concerned, there is no competitor for the Wagon R except the Cultus, which is our own product. So we consider the imported cars in this category as competition which is why we have set the price and brought in the technology and design accordingly.”

The Wagon R comes in three models, VX with a price tag of Rs 899,000, the VXR which costs Rs 1,049,000 and the VXL which is the premium version and comes in at Rs 1,089,000.

Although the price of the VX appears affordable, there is a big catch insofar as the model is very basic and without features such as power steering, power windows and above all, air-conditioning.

In this regard Dalia concedes that the price is a challenge: “Because our automobile industry is not very strong, it is hard for us to manage the cost. There is a big price difference when people compare our cars with imported refurbished products.”

It is precisely for this reason that Suzuki has decided to focus on the Wagon R’s high fuel efficiency and roomy cabin in the communication (the campaign tagline is ‘Be practical’), as these are the areas where it scores best compared to imported cars.

According to Kamran Khan, Group Account Manager, JWT Pakistan (Wagon R’s creative agency), “The car is positioned at a group of people who have just started their careers and are very careful about the expenses involved in maintaining a car.”

The TVC has been launched across all channels and Suzuki is using every possible medium available, including print, outdoor, POS and radio. In addition, the company has invested in dealership branding and is relying heavily on the dealer network.

“The manufacturers and dealers work as partners. Advertisements will create awareness about the product, but the objective is to attract customers to the dealership, where they can experience the car and the dealers can take over from there,” says Khan.

With Wagon R offering the most sought after features of their target market (fuel-efficiency, roomy cabin, a powerful engine and an after-sales service network throughout Pakistan), dealers believe the car will dent the import of compact cars by as much as 50% despite their lower prices. Time, as the saying goes, will tell.