Maruti Suzuki's overall ad spends have been higher than before: Shashank Srivastava

Shashank Srivastava, Senior Executive Director, Maruti Suzuki, is undoubtedly one of the most seasoned marketers in the country. His journey with Maruti Suzuki began 33 years ago, right after completing his MBA at IIM Ahmedabad. Armed with an engineering background and a passion for automobiles, he was drawn to Maruti Suzuki, known as the epitome of a professional automobile company.

His initial role placed him in the MD's office, and over the years he has navigated through various functions, including corporate planning and international and domestic exports. Three decades later, Srivastava, in many ways, has become the face of the brand within the media and advertising industry.

Starting the conversation with exchange4media on a happy note, Srivastava shared the magic growth numbers for the auto sector for this festive season. “Fortunately for us the festive season for India this year was a much longer one. Like every year it started with Onam on August 17, going up to Bhai Dooj, which is two days after Diwali. So, this year we had an 89-days-long period compared to 71 days in 2022,” he explained.

Owing to this, the auto sector witnessed a remarkable 40% growth, surpassing the 1 million mark in industry sales for the first time, Srivastava noted. Adjusting for the extended festive period, the growth stood at an impressive 17%. "Maruti's growth numbers are similar," he added.

Srivastava also spoke about the need for brand building even when there is a demand-supply gap. As per statistics, Maruti has close to 2.6 lakh pending bookings. However, Srivastava debunked the notion of holding back advertising during supply shortages. He emphasized the multifaceted role of advertising, including brand building and tactical promotion.

“One of the key roles of advertising is building up the brand and establishing the core of the brand in the minds of the consumer. Now, that is a long-term target objective to be achieved and therefore you can't cut back on that. However, there is a portion that is tactical advertising, which is basically at the lower end of the funnel. When you want to push the consideration into actual sales, tactical advertising might vary depending on the market situation. Overall, because we have a larger number of brands - we have introduced four new brands very recently - so the overall spends have actually been higher than before,” he added.

Srivastava also shed light on the significant growth in rural markets, outpacing urban growth by 12% to 8%. Maruti Suzuki's rural sales account for 44% of its industry share, emphasizing the company's robust presence in non-urban areas. The difference in media strategies for rural and urban consumers was also acknowledged, recognizing the distinct communication needs of diverse consumer bases.

He also discussed the impact of the digital era on the automotive industry. Srivastava highlighted the extensive digitization of the car-buying process. With 24 out of 26 consumer touchpoints now digitized, Maruti Suzuki has adapted its marketing mix, allocating approximately 30% of its budget to digital platforms. The company runs the largest hyperlocal programme globally, demonstrating its commitment to meeting consumers on digital platforms.

Sharing his advice for younger marketers, Srivastava said it is essential to understand the importance of experience, patience, and customer-centricity. While acknowledging the technological prowess of younger professionals, he emphasized the need for a balanced approach that combines technological advancements with a deep understanding of consumer behaviour and brand-building principles.

In closing, Srivastava shared insights into staying relevant in a rapidly changing landscape. He stressed the importance of continuous learning, staying updated on technology, and maintaining a connection with younger perspectives. Managing stress, according to Srivastava, involves daily activities like walking, spending time with family, playing chess, and engaging in interests outside the professional realm. He concluded the talk with a few Urdu poetry couplets.

Watch the video for the complete conversation.