The folly of promos, back-to-back

There a few things going well for Maruti Esteem and few going against it. Being, the entry level sedan, it appeals to buyers looking for 'value for money'. But then, with an outdated design, rumours of a phase out, the brand has not been able to notch up the requisite sales numbers. This has resulted in a promo that promises up to Rs. 55000 in savings for any buyer.

What is to be noted is the time period till which the promo applied. It started with the promo being limited till the last week of November. Now the offer has reappeared and is stated to run till mid December.

Signs of desperation, to clear off stocks? Whatever the reasons, running promos back to back send signals that are detrimental to the brand's image. It also encourages consumers not to look at the promo as one that offers them a rare opportunity, thus slowing their response towards it. Some may not even respond, 'cos they expect the promo to be back, maybe with a better offer.

What could Maruti Esteem have done? Run the promo for a longer period, than end it and run it again.

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