Service Marketing of Automobile Industry

SERVICE MARKETING OF

AUTOMOBILE INDUSTRY

Presented By-Patel DilipRanjit KumarRupjyoti BhuyanSuman VasishtaTapas Talukdar

INTRODUCTION The automotive industry designs,

develops, manufactures, markets, and

sells motor vehicles, and is one of the world's

most important economic sectors 

by revenue.

• Presence of niche market

• Presence of global leaders

HISTORY

• 1769- French engineer Nicholas J Cugnot• Oliver Evans- Steam Engine automobile in

US• Karl Benz- Inventor of modern automobiles• Modern Era- Standardization, computer

aided design

TOP 10 AUTOMOBILE COMPANIES OF THE WORLD-2009

1. Toyota

2. General Motors

3. Volkswagen

4. Ford

5. Hyundai Kia

6. PSA

7. Honda

8. Nissan

9. Fiat

10.Suzuki

AUTOMOBILE INDUSTRY IN INDIA

Turnover of Automobile Manufacturers(In USD Million)

Year In USD Million

2002-03 14,880

2003-04 16,544

2004-05 20,896

2005-06 27,011

2006-07 34,285

• Seventh largest in the world

• First car- 1897

• Chennai- Detroit Of India-

60% of India’s exports

• Tata Motors, Maruti Suzuki,

Mahindra and Mahindra

• Entry of Japanese companies

• Export to UK, Italy, Germany,

Netherlands & South Africa

AUTOMOBILE MANUFACTURERS

INDIAN BRANDS

Force Hindustan Motors Tata Motors Premier AMW

FOREIGN BRANDS

Volvo Mercedes Benz Hino Tatra

ECONOMIC SIGNIFICANCE

Optimum utilization of

steel and rubber output

Largest single consumer

of machine tools.

Technological advances

Highway construction

Growth of truck

transportation

SOCIAL SIGNIFICANCE

• Mobility

• Changing in individual’s

lifestyle

• Impact on social customs

• Growth of shopping malls

• Credit installment buying

• Purchase of consumer

goods

TASK

Interview Service marketing

department to understand-

a) What services are they offering to

the customers?

b) How are they trying to differentiate

their service offer from their

competitors?

MARUTI SUZUKIPratham Motors Pvt Ltd--

Division of Maruti SuzukiSubsidiary of Suzuki Motor

Corporation of Japan India's largest passenger car

companyAccounting for majority of the

domestic car market.14 brands150 variants Importance to customer

delight48 % market share24 hours services- toll free

number

SERVICES RENDERED TO CUSTOMERS

• Sales service• After sales service–Quick reply– Insurance claim

• Driving facility to all dealers• Presence of 9 dealers in

Bangalore

REASONS FOR CUSTOMER PREFERENCE

• No. 1 Company among Fortune

500 in India.

• World wide 7/8 position.

• Tied up with Wipro, Infosys,

IBM, Microsoft.

• Maruti has some special

discount scheme which are

categorized into 3 types

– Diamond

– Ruby

– Emerald

• Special Schemes

PRODUCT DIFFERENTIATION

• Liener ---(Low maintenance)• Minier ---(More mileage)• Fitter ----(Cost of ownership is less)

BAJAJ AUTO LIMITED SS Motors-Service outlet of Bajaj Auto Limited

Started by a Rajasthani merchant on

November 29th 1945

M/s Bachraj Trading Corporation Pvt Ltd

 Forbes Global 2000 list for the year

2005 ranked Bajaj Auto at 1946.

Company worth- more than US$ 1.5billion

Headed by Rahul Bajaj

Operations in 50 countries

LIST OF BAJAJ AUTO PRODUCTS

Current production-• XCD • Platina • Discover • Pulsar • Avenger

Motorcycles for other manufacturers-• Kawasaki Ninja 250R• Yamaha YZF-R15 (Unsure), • New for 2011- the KTM Duke 125,

Cars- Bajaj ULC ultra-low-cost car.

SERVICES RENDERED InsuranceAfter sales servicesRepairs and spare partsServicing for all types of bikesWash and Polish bikes

REASONS FOR CUSTOMER PREFERENCE

Skilled mechanicsKnowledgeable workforceHygienic workplaceEasily accessibleTechnically soundFriendly behaviorAuthorized servicesFully automated service

PRODUCT DIFFERENTIATION

• Completely automated• Call Breakdown services- 9.00 am-

9.00 pm• Deals in all sorts of two wheeler

services

FUTURE GROWTH PROSPECTS

• India, sourcing base for global auto majors.

• Passenger car and motorcycle segment is set to grow by 8-9%.

• The two-wheeler segment will clock 11.5% rise by 2014.

• Commercial vehicle to grow by 5.2 per cent.

• Estimated component market size is US$ 6.7 bn.

• Rise in Income levels

CONCLUSION It has been estimated

that by 2022, India will overtake Japan in the automobile industry

The automotive industry currently faces huge challenges.

o Technological paradigm o Volume productiono Increasing regulatory and

social pressures • Sustainability of its

products • Methods of production.

QUESTIONS