MARKETING

ASSIGNMENT

MARKETING MYOPIA
CASE STUDY

BY
IWIN EMMANUAL JOHNSON J
MBA (IB)
0920909
 MARKETING MYOPIA
CASE SUMMARY
At some point in its development, every industry can be considered a growth industry, based
on the apparent superiority of its product. But in case after case, industries have fallen under
the shadow of mismanagement. What usually gets emphasized is selling, not marketing. This
is a mistake, since selling focuses on the needs of the seller, while marketing concentrates on
the needs of the buyer.

The railroads serve as an example of an industry whose failure to grow is due to a limited
market view. Those behind the railroads are in trouble not because the need for passenger
transportation has declined or even because that need has been filled by cars, airplanes, and
other modes of transport. Rather, the industry is failing because those behind it assumed they
were in the railroad business rather than the transportation business. They were railroad
oriented instead of transportation oriented, product oriented instead of customer oriented.

Marketing Myopia is described as a firm’s short-sightedness or narrowness when it is

attempting to define its business. Levitt argues that companies which narrowly focus on the
product to the detriment of customer requirements (i.e., dispensing with the marketing
concept) suffer from marketing myopia. Myopia or short-sightedness is often apparent within
organizations. Some organizations ignore the fact that to be successful, the wants of
customers must be their central consideration. Levitt emphasized the importance of defining
the purpose of your business correctly in order to be successful in the long run.
Factors responsible for Myopia
 Failure of top management to predict the future demand.
 The belief that there is no competitive substitute for the product.
 Emphasis on mass production and in economies of scale i.e. being product oriented
than customer oriented
 Lack of research of what the customer wants.

Business will do better in the end if they concentrate on meeting needs of customer rather
than selling products. Several types of marketing myopia can be identified including classic
myopia, competitive myopia and efficiency myopia.
Maruti Gypsy
The Maruti Gypsy is a four wheel drive SUV based on the Suzuki Jimny SJ series long wheel
base jeep. Produced in India, it is also a common sight in Chile and Kenya. Within Europe, it
is most often found in Malta and Hungary. In contrast to the Suzuki, the Maruti is available
with 4 seats and a sizeable trunk. The Maruti Gypsy is available as a "soft top", "hard top”
and as an "ambulance car". In India, it is widely used by the police and defence forces. In
fact, the MG-413 model is now the mainstay of the Indian Army. In civilian use, the Gypsy is
a popular choice as a low-cost SUV and is a common sight at rally events. The price of a new
Maruti Gypsy, if purchased in India, is US $12,500 (5,00,000 INR in 2008). As a 4x4 at this
price point, it’s only Indian competitors are sold by Mahindra and Force Motors.
But the brand failed to capitalise on the first mover advantage although it is still considered to
be one of the sportiest looking SUV in the Indian market. The brand is now confined to
certain niche markets like Police and Army vehicle segments.

FACTORS WHICH LED TO FAILURE

1) LACK OF CUSTOMER ORIENTATION

It gave more importance to product rather than customer need. It failed to understand
what customer needs.
 The vehicle lacked space and comfort especially for the rear seat
 The driving quality and the mileage were awful
 .The vehicle had all the qualities for an off roader but failed to understand that Indian
consumers use off roaders on roads (cities).

2) POSITIONING OF BRAND

Positioning has come to mean the process by which marketers try to create an image
or identity in the minds of their target market for its product, brand, or organization.
The brand was positioned on the basis of its ruggedness. The brand was promoted as a
pure off roader. The ads used to say that Gypsy could even climb trees. The
positioning was reinforced by the success of the brand in rally and off-road events.
Maruti also promoted such events to boost the brand as the ultimate off roader. The
brand had the tagline of “There is a Gypsy in Everyone". The brand was sold to Police
 and army. For the ordinary consumers, the brand did not made any sense. So it
lost huge market share because of poor brand positioning among ordinary customers.
Basically Maruti Gypsy was not able to define the market properly.

3) PRICE FACTOR

Maruti Gypsy was priced Rs 5 lakh which is comparable with an entry level sedan.
The product was priced at a ridiculous premium which was not justified in terms of
the delivery of value.

4) LACK AND DELAY OF INNOVATION

Gypsy also did not change itself in tune with the changing industry requirements. The
vehicle initially was severely underpowered for an off roader. The company enhanced
the power from 975cc to 1300 cc only after 11 years.

5) COMPETITION

Competition from bigwigs in SUV segment (Suzuki and Mahindra Scorpio) snatched
its market share.

6) BRANDING FAILURE

Maruti dint invest much on branding for Gypsy. The product had inherent problem

that created negative word of mouth and the company didn't cared to look at the

negatives of the brand.

HOW IT COULD HAVE INCREASED MARKET SHARE

 It should have carefully studied the needs and desires of customers rather than
the product by conducting extensive market research. It should listened or
taken their cues from the anguished customers.

 Had this brand changed its looks and feel in tune with the emerging category
requirements, Gypsy could have been a major brand. (CHANGES IN
 PRODUCT OR PROMOTION CAN SUSTAIN THE BRAND EVEN IN
EMERGING COMPETITION)

 Extensive Marketing of the product, by highlighting its positive aspects of the

product to the customers by Brand Placement

REFERENCES

http://marketingpractice.blogspot.com/2006/12/maruti-gypsy-rip.html

http://en.wikipedia.org/wiki/Maruti_Gypsy

http://www.mouthshut.com/product-reviews/Maruti_Suzuki_Gypsy-
925000022.html