The Challenge: A Dying Product in a Competitive Market

HindAuto Motors Ltd., once a leading player in India’s passenger vehicle segment, had been struggling with one of its flagship SUV models—HindAuto Xplorer. Initially launched in 2018, Xplorer was positioned as an affordable family SUV, but it failed to gain traction due to:

1. Intense Competition: Market share was eroded by newer entrants like Tata, Mahindra, and Hyundai, offering superior features at competitive pricing.

2. Perception Issues: Consumers saw it as a "boring" family SUV with outdated styling.

3. Dealer Disengagement: Declining sales led to reduced dealer interest and lower showroom visibility.

4. Price Wars: Aggressive pricing by competitors made Xplorer seem overpriced for its perceived value.

5. Marketing Failure: The previous campaigns lacked differentiation, focusing only on mileage and reliability—traits associated with older models, not aspirational SUVs.

With inventory piling up and unsold units increasing, the company was on the verge of discontinuing Xplorer. If they withdrew the SKU, it would lead to ₹500 Crores in write-offs, supply chain disruptions, and reputational damage.

The turnaround required bold leadership. Enter Arvind Kapoor, the newly appointed Chief Marketing Officer (CMO) in 2023, tasked with revitalizing HindAuto’s marketing strategy.

The Solution: A Bold Repositioning Strategy

Arvind Kapoor refused to let the product die. Instead, he led a complete repositioning strategy, transforming the HindAuto Xplorer into a rugged, adventure SUV targeted at young, urban professionals and outdoor enthusiasts. His strategy had five key pillars:

1. Rebranding Xplorer as an Adventure SUV

• The positioning was shifted from "family SUV" to "India’s Ultimate Off-Road Beast."

• A new tagline was introduced: "Xplore Without Limits."

• Revamped exterior styling with matte black editions, roof racks, off-road tires, and bold colors to appeal to adventure seekers.

2. Revamping the Marketing Strategy

• Aggressive Digital Campaigns:

  • Launched India’s first Instagram-only car campaign, with influencers showcasing the Xplorer in Ladakh, Spiti Valley, and Arunachal Pradesh.

  • Partnered with top Indian YouTube auto vloggers for test drives in extreme terrains.

  • Created a #XploreMore challenge where customers could submit travel stories featuring the SUV, leading to a viral UGC campaign.

• TV & Print Campaigns:

  • Moved away from family-oriented TVCs to high-energy, cinematic storytelling ads showing the SUV tackling Himalayan roads, beaches, and jungles.

  • Used regional content strategies, targeting audiences in Punjab, Himachal Pradesh, and Northeast India, where demand for SUVs was growing.

3. Dealer Engagement & Sales Training

• Incentivized dealers with bonuses for Xplorer sales, improving showroom placement.

• Conducted off-road driving workshops for sales staff, making them brand ambassadors.

• Launched "Xplorer Experience Zones" at major dealerships—complete with dirt tracks for customers to test the SUV’s capabilities.

4. Pricing & Financing Adjustments

• Introduced a subscription-based ownership model for metro customers, attracting young buyers who didn’t want a full-time car commitment.

• Offered zero down payment EMIs for Tier 2 and Tier 3 cities.

• Bundled free adventure kits (roof racks, camping gear) for early buyers.

5. Strategic Collaborations & Experiential Marketing

• Partnered with tourism departments of Himachal Pradesh and Uttarakhand to promote road trips using the Xplorer.

• Sponsored India’s first "SUV Overlanding Rally", featuring influencers, journalists, and customers on a 3000 km road trip showcasing the SUV’s durability.

• Collaborated with Decathlon and GoPro, bundling exclusive adventure gear with Xplorer purchases.

The Impact: How the CMO Turned the SKU Profitable

Within 12 months, the HindAuto Xplorer went from a dying SKU to a profitable product, delivering record-breaking sales growth:

• Sales Growth:

  • From 500 units per month to 3,500 units per month in nine months.

  • Inventory backlog cleared within six months, avoiding a ₹500 Crore write-off.

• Market Share:

  • Captured 8% of the SUV segment, up from 2.5%.

  • Became the #2 best-selling SUV in North India for six months straight.

• Revenue & Profitability:

  • SKU revenue jumped from ₹250 Crores to ₹1,200 Crores annually.

  • Contribution margin improved by 15%, making it a highly profitable product line.

• Brand Perception Shift:

  • Adventure buyers accounted for 60% of new customers, shifting away from the family-SUV image.

  • Xplorer’s social media engagement skyrocketed, with over 2 million user-generated content impressions in one year.

Conclusion: The Power of Strategic Marketing Leadership

The case of HindAuto Xplorer’s revival is a textbook example of how a strategic CMO can rescue a failing product. Instead of discontinuing the SKU, Arvind Kapoor led a bold repositioning, digital-first branding, and experiential marketing strategy, transforming Xplorer into a profitable asset for HindAuto Motors.

His success highlights three critical lessons for large businesses facing a declining SKU:

1. Repositioning can create new demand, even for struggling products.

2. Marketing must be experience-driven, not just feature-driven.

3. Dealer alignment and financing innovation are key to unlocking scale.

Under Arvind’s leadership, HindAuto Motors didn’t just save a product—it built a category-leading brand that now serves as a case study in Indian marketing excellence.