The learning outcomes are as follows:
understand the market dynamics and analyze the impact of product recalls on brand trust in the context of Maruti Suzuki;
evaluate the short-term and long-term effects of Maruti Suzuki’s frequent product recalls on its brand image using relevant brand equity and consumer perception models; and
design a strategic marketing response plan that can mitigate negative recall effects and strengthen brand image for Maruti Suzuki.
Maruti Suzuki, India’s largest automobile manufacturer and one of the most trusted household brands, builds its legacy on affordability, reliability, fuel efficiency and strong customer loyalty. Nevertheless, in recent years, the company has faced repeated questions due to frequent product recalls across different vehicle segments. While these recalls are intended to ensure customer safety, at the same time, they trigger questions about the long-term impact on consumer trust and the strength of Maruti Suzuki’s brand image.
This case study frames the dilemma through the perspective of Purvee Dhanuka, the brand manager, and Neha Tyagi, the marketing manager. Maruti Suzuki, long celebrated as India’s most trusted automobile brand, is now facing repeated product recalls that threaten its carefully built reputation. Purvee is deeply concerned about the brand’s reputation, fearing that ignoring the frequent recall issues may weaken consumer confidence. Neha, however, emphasizes sales momentum and believes that aggressive marketing can overpower negative publicity. Together, their contrasting perspectives bring forward a central managerial question: Should Maruti focus on short-term sales by leaning into its aggressive campaigns, or adopt a cautious strategy that prioritizes long-term brand trust? The case highlights the broader challenge of brand image in the face of rising competition and growing consumer concerns.
Under Graduate.
Teaching notes are available for educators only.
CSS 8: Marketing.
