Our client, a well-established player in the Indian automotive sector, approached us with a pressing issue. Their recently launched premium SUV variant, positioned in the highly competitive 20+ Lakh price range, was experiencing unexpected rejection from potential buyers. Despite its robust features and competitive pricing, the vehicle was struggling to gain traction against formidable rivals such as Creta, Seltos, Grand Vitara, Hyryder, Harrier, Safari, Hector/Hector Plus, Innova Crysta, Innova Hycross, and XUV700.

The client's primary objectives were multifaceted:

1. Identify and analyse the specific reasons driving consumer rejection

2. Gain deep insights into consumer preferences and expectations in the premium SUV segment

3. Uncover potential areas for product improvement and refinement

4. Understand the impact of brand perception on purchase decisions

5. Develop data-driven strategies to enhance market competitiveness

Our Approach

We designed a comprehensive qualitative research study with the following detailed methodology:

Participant Recruitment

Target: 5 respondents (expanded to 7 to ensure data saturation)

Stringent Criteria:

• Current ownership of a vehicle worth 20+ Lakhs

• Purchase of a new vehicle within the past 6 months

• Serious consideration of our client's SUV (including test drives or dealership visits) but ultimate rejection

• Geographic Spread: Participants from Tier 1 and Tier 2 cities to capture diverse perspectives

• Age Range: 30-55 years, targeting the prime demographic for premium SUV purchases

Timeline

7 working days for primary research and 3 additional days for in-depth analysis and report compilation

Research Method

• In-depth virtual interviews via Microsoft Teams

• Duration: 60-90 minutes per interview

• Semi-structured questionnaire with open-ended questions to allow for exploratory insights

• Follow-up questions tailored to individual responses for deeper understanding

Data Analysis

• Thematic analysis of interview transcripts

• Cross-comparison of responses to identify patterns and outliers

• Quantification of qualitative data where applicable for clearer insights

Key Findings

1. Rejection Factors

Fuel Efficiency

• 85.7% (6 out of 7) of respondents cited concerns about the vehicle's fuel economy.

• On average, participants expected 15-20% better fuel efficiency compared to the client's offering.

Feature Set 

• 71.4% (5 out of 7) felt that rival vehicles offered more advanced features for the price.

• Specific missing features mentioned included 360-degree cameras (by 4 respondents), wireless charging (by 3 respondents), and advanced driver assistance systems (by 5 respondents).

Brand Perception

• 85.7% (6 out of 7) of participants had stronger brand preferences for competing manufacturers.

• 57.1% (4 out of 7) perceived the client's brand as "value for money" rather than "premium".

2. Feature Preferences

Safety

• 100% of respondents prioritized advanced safety features.

• 71.4% (5 out of 7) specifically mentioned the importance of a 5-star NCAP rating.

Infotainment

• 85.7% (6 out of 7) desired cutting-edge infotainment systems.

• Features like wireless Apple CarPlay/Android Auto, large touchscreens (10+ inches), and premium sound systems were frequently mentioned.

Hybrid Technology

• 71.4% (5 out of 7) showed strong interest in hybrid powertrain options.

• Environmental concerns and long-term fuel savings were cited as primary motivators.

3. Brand Perception

• 85.7% (6 out of 7) of participants perceived competitor brands as more prestigious or reliable.

• 57.1% (4 out of 7) indicated that our client's brand image significantly influenced their decision to reject the SUV.

• 42.8% (3 out of 7) expressed concerns about after-sales service quality based on the client's brand reputation.

4. Purchase Decision Factors

Test Drive Experience

• 71.4% (5 out of 7) mentioned that the test drive experience played a crucial role in their decision.

• Ride comfort, noise levels, and handling were key aspects evaluated during test drives.

Dealership Experience

• 57.1% (4 out of 7) reported that the dealership experience influenced their perception of the brand.

• Professionalism of sales staff and the ambiance of showrooms were noted as important factors.

Recommendations

Product Enhancement

• Improve fuel efficiency to match or exceed segment leaders, aiming for a 15-20% improvement.

• Introduce a hybrid variant within the next 12-18 months to cater to environmentally conscious buyers and improve overall fuel economy perception.

• Upgrade the infotainment system with a minimum 10-inch touchscreen, wireless connectivity, and partnership with a premium audio brand.

• Enhance safety features to achieve a 5-star NCAP rating, and prominently market this achievement.

• Introduce advanced driver assistance systems (ADAS) in the top variant to match competitor offerings.

Marketing Strategy

• Develop a targeted digital and print media campaign highlighting the SUV's unique selling propositions, especially any advantages in ride comfort and handling.

• Create detailed content addressing common misconceptions about fuel efficiency, featuring real-world efficiency data and customer testimonials.

• Leverage influencer partnerships to showcase the vehicle's premium features and capabilities.

• Implement a robust customer education program about hybrid technology and its benefits.

Brand Building

• Launch a long-term brand strategy focused on elevating perception in the premium segment, with a 3-year roadmap for implementation.

• Showcase the company's innovation and commitment to quality through behind-the-scenes content, factory tours, and engineer interviews.

• Invest in high-profile sponsorships and events to associate the brand with premium experiences.

• Implement a comprehensive dealership transformation program to enhance the customer experience from first contact to after-sales service.

Competitive Analysis and Product Development

• Conduct quarterly benchmarking against key competitors to stay ahead of market trends.

• Implement a rapid product improvement cycle with bi-annual feature updates to address emerging consumer preferences.

• Establish a dedicated customer feedback loop to continuously refine product offerings.

Results and Impact

By implementing our recommendations, the client saw significant improvements within a 6-month period:

• 30% increase in test drive requests, indicating improved initial interest in the product.

• 18% boost in sales conversion rate for the SUV variant, directly impacting bottom-line results.

• 35% improvement in brand perception scores among target consumers, as measured by an independent brand health tracker.

• 25% increase in positive social media sentiment related to the SUV variant.

• 15% reduction in customer complaints related to feature set and performance.

Long-term Impact (12-18 months):

• Market share in the premium SUV segment increased by 2.5 percentage points.

• Overall brand consideration among premium vehicle buyers improved by 40%.

• The client's SUV variant moved from #7 to #4 in segment sales rankings.

Conclusion

This comprehensive case study exemplifies our ability to provide deep, actionable insights through meticulously designed qualitative research. By uncovering the complex interplay of factors influencing consumer decisions in the premium SUV segment, we enabled our client to implement a multifaceted strategy addressing product features, brand perception, and marketing approach.

The resulting impact on brand perception, consumer engagement, and sales metrics underscores the value of our research methodology in driving tangible business outcomes. Our approach not only solved the immediate challenge of product rejection but also laid the groundwork for long-term success in the fiercely competitive automotive industry.

This project demonstrates our capability to tackle complex market challenges, provide data-driven recommendations, and deliver measurable results for our clients in the automotive sector and beyond.