Benchmarking

BENCHMARKING

Benchmarking is a practice of comparing business process and performance metrics to industry bests and best practices from other companies. Dimensions typically measured are quality, features, and cost.

It is an act of rating one value by comparing it to a standard or point of reference. In business, and especially in the digital world, you compare performance, results, and other data against specific reference points called benchmarks. This could be the industry average, the best-in-class, or a particular competitor.

There are several types of benchmarking, which you can implement depending on your objective. Each will serve a distinct purpose and compare different data sets.

Effective benchmarking lets you identify areas of growth and supports continuous improvement. It is an important part of strategic planning because it helps you understand your position in your specific market and measure yourself against direct competitors. Benchmarking can enhance your internal processes, and your digital presence, and provide insights that help top management reach better-informed decisions.

Automotive Benchmarking is the process of analyzing the choices of similar products based on the selection factor and deducing it to a conclusion.

There are no such standard procedures to follow in benchmarking. It's up to their requirement and why they are performing the benchmarking.

CASE STUDY

Mr. D.S. Pughazhyendhii is a married man who lives in Bangalore which is a highly crowded city. His Family comprises five members including his wife, a five-year-old boy, his father, and his mother. He visits his native place Madurai which is 500kms away from Bangalore once a month. Also, he will be using his car to commute to his office. His budget falls between 8 to 10 lakhs on road. Please suggest to him options so that he will buy a good car for his family.

Note: Pughazhyendhii is fond of big cars

CUSTOMER'S REQUIREMENT

• Mr. D.S. Pughazhyendhii has 5 members in his family. (5-seater car required)
• He lives in Banglore which is a crowded City. (Automatic transmission will be better)
• He goes daily to the office in his car. (Car with good mileage is required)
• He makes a long trip of 1000 km up and down once a month. (Good leg room and comfortable seats are preferred)
• His budget is 8 to 10 lakhs (Cars falling into this budget category are only chosen with the On Road Price in Bangalore as standard)
• He is fond of big Cars (Premium Hatchback, SUV, Sedan, and Crossovers are preferred)

Based on the customer's requirement here is the list of cars that meets the above criteria.

1. Tata Nexon XE

2. Maruti Brezza 2022

3. Kia Sonet

4. Hyundai Venue 2022

5. Nissan Magnite

6. Tata Punch

7. Maruti Baleno 2022

8. Renaul Kiger

9. Honda Jazz

10. Citreon C3

From the above list, we are considering four cars which meet most of the requirements of the customer. They are

• Tata Nexon XE
• Kia Sonet
• Maruti Brezza 2022
• Nissan Magnite

1. Tata Nexon XE

On-Road Price in Bangalore ₹ 9.16 Lakh

Key features of Tata Nexon

Key specifications of Tata Nexon

Pros of Tata Nexon

• Upmarket looks with five-star G-NCAP safety ratings
• Torquey and frugal engine
• Well-sorted ride and handling
• Spacious and feature-packed cabin

Cons of Tata Nexon

• Quality, fit, and finish can be better
• Fewer features compared to its competitors

2. Kia Sonet

On-Road Price in Bangalore ₹ 8.61 Lakh

Key features of Kia Sonet

Key specifications of Kia Sonet

Pros of Kia Sonet

• Flamboyant styling - Great combination of modern and youthful looks with a rugged stance
• Refined motors/gearboxes - Peppy/smooth performance, good refinement, frugal
• Easy to drive - Compact size, steering that's light with reasonable feedback
• Good quality - Quality and fit/finish are on par with segment expectations
• Boot capacity - Reasonably sized boot
• Feature loaded - Offers Apple carplay and Android auto, Good quality speakers, All LED lights, and Connected features.

Cons of Kia Sonet

• The rear low is too small for 3 adults.
• Handling can be better
• Crumbles at high speeds

3. Maruti Brezza 2022

On-Road Price in Bangalore ₹ 9.60 Lakh

Key features of Maruti Brezza

Key specifications of Maruti Brezza

Pros of Maruti Brezza

• Gets segment-leveling features
• Spacious cabin with modern interior
• Tall seating and ease of driving
• Good mileage in the segment
• Quick, responsive engine and good handling

Cons of Maruti Brezza

• Engine lacks mid-range punch
• Top-end variants are expensive
• Boot space is small compared to its competitors

4. Nissan Magnite XL Turbo

On-Road Price in Bangalore ₹ 9.67 Lakh

Key features of Nissan Magnite

Key specifications of Nissan Magnite

Pros of Nissan Magnite

• Peppy performance from the 1.0L turbo-petrol engine
• Eye catchy looks
• Spacious cabin
• Premium features like 360 parking camera, wireless charger, wireless Android Auto & Apple CarPlay
• Good ground clearance in the segment

Cons of Nissan Magnite

• Slow steering
• Stiff ride quality

VERDICT

Based on the above benchmarking performed, Nissan Magnite XL Turbo CVT fulfills all the requirements of the customer. The features provided in this car are best in segment. It offers a spacious cabin which makes it perfect for long travel. The 1.0 litre turbo engine works phenominal with the CVT and makes easy to drive in city traffic. Its has also achieved 4 stars in G-NCAP rating. This makes Nissan Magnite a perfect car for Mr. D.S. Pughazhyendhii.

CONCLUSION

Benchmarking has been performed among Tata Nexon, Maruti Brezza, Kia Sonet and Nissan Magnite and the best suitable car as per the requirements of the customer has been selected.