A Project Report on Marketing Mix of Automotive Sector

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Projectsformba.blogspot.comAUTOMOTIVESinceproductisacar,packagingmightnotbeofmuchimportance.Carsu...

Projectsformba.blogspot.comAUTOMOTIVEAfterlaunchingcarsforthemassessincesomanyyears,Indiaslargestau...



Projectsformba.blogspot.comAUTOMOTIVEWhenMarutiUdyoglaunchedtheSwift,theautomotiveindustrywasagogwith...



Projectsformba.blogspot.comAUTOMOTIVEchannels.Majormusicandsportschannelspromoteandtheyreachouttoth...



Projectsformba.blogspot.comAUTOMOTIVEBanners,neonsignsHoardings,banners,neonsignsaredisplayedatclubs,...



Projectsformba.blogspot.comAUTOMOTIVEasalittlesportierwhichisthemainreasonthatitisforyoungpeople...

Projectsformba.blogspot.comAUTOMOTIVESomeotherSalesPromotiontechniqueusedbythecompanyistheFestivalSeas...



Projectsformba.blogspot.comAUTOMOTIVE33Projectsformba.blogspot.com



Projectsformba.blogspot.comAUTOMOTIVEPERSONALSELLING34Projectsformba.blogspot.com



Projectsformba.blogspot.comAUTOMOTIVEPersonalSellinglargelytakesplaceattheDealersEnd.Thewaythecusto...



Projectsformba.blogspot.comAUTOMOTIVEGMIhaslaunchedseveralindustryfirstprogramssuchasOpelClubCardfaci...

Projectsformba.blogspot.comAUTOMOTIVEPublicRelationsPrelaunchexcitementandbuzzwascreatedbyafullblown...



Projectsformba.blogspot.comAUTOMOTIVETataat29thBangkokInternationalMotorShow2008Thepositioningwasstren...



Projectsformba.blogspot.comAUTOMOTIVEMARUTISWIFTThecarmanufacturingcompany,calledMarutiSuzukiAutomobile...



Projectsformba.blogspot.comAUTOMOTIVETherearevarioustypesofpeopleinanyOrganization.Thevarioustypesof...



Projectsformba.blogspot.comAUTOMOTIVEOccupation:BusinessClassorHighLevelServiceExecutives...



Projectsformba.blogspot.comAUTOMOTIVESCORPIOInfrastructureThirtyfiveshowroomsacrossthecountrywereredoneenti...

Projectsformba.blogspot.comAUTOMOTIVETheshowroomrevampwascenteredontheintentiontoprovideauniformcust...



Projectsformba.blogspot.comAUTOMOTIVEPoorfirmsignoretheircompetitorsaveragefirmscopytheircompetit...



Projectsformba.blogspot.comAUTOMOTIVEAUDIisreplyingtheBMWadvertisementAlongwithAUDIandBMW,SUBARUandBEN...



Projectsformba.blogspot.comAUTOMOTIVESCORPIOSincetheScorpiowastargetedatanurbanclienteleitneededastro...



Projectsformba.blogspot.comAUTOMOTIVEDISTRIBUTIONCHANNELOFHYUNDAISTOCKIST...

Projectsformba.blogspot.comAUTOMOTIVESTRENGTHSWEAKNESSESOPPURTUNITIESTHREATSSTRENGTHSTheQuality...



Projectsformba.blogspot.comAUTOMOTIVEIntheJ.D.PowerCSIStudy2004,MarutiSuzukiscoredthehighestacrossa...



Projectsformba.blogspot.comAUTOMOTIVELeadingGrowthAsthemarketleader,yourcompanyledthegrowthinthepa...



Projectsformba.blogspot.comAUTOMOTIVETataMotorsLimitedInthe2004fiscalyear,TataMotorsgeneratedrevenuesof$3,...




Projectsformba.blogspot.comAUTOMOTIVEINTRODUCTIONThefeelingoffreedomandbeing...



Projectsformba.blogspot.comAUTOMOTIVEslot.ThefirstJapanesemotorcycleswereintroducedintheearlyeighties.TV...



Projectsformba.blogspot.comAUTOMOTIVEKeyplayersintheTwowheelerIndustryTherearemanytwowheelermanufacturer...



Projectsformba.blogspot.comAUTOMOTIVESEGMENTATIONOFTWOWHEELERATwoWheelerSectorSubSegmentinginthethreeSe...



Projectsformba.blogspot.comAUTOMOTIVESegmentwiseAnalysisofIndianTwoWheelerMarketSegmentDescription...



Projectsformba.blogspot.comAUTOMOTIVEA3Scooterwith12%1%27....

Projectsformba.blogspot.comAUTOMOTIVEWiththerisinglevelsofpercapitaincomeofpeople,theIndiantwowheele...



Projectsformba.blogspot.comAUTOMOTIVElaunchedbymanufacturersduringthisperiod,fillingupallpricepoint...



Projectsformba.blogspot.comAUTOMOTIVECreationofDistributionInfrastructureLeadingcompaniesneedtoensuret...



Projectsformba.blogspot.comAUTOMOTIVEsoldover15millionmotorcyclesandhasconsistentlygrownatdoubledigit...



Projectsformba.blogspot.comAUTOMOTIVEHeroHondaenjoysasignificantbrandpremium.Itsaggressivepricingst...

Projectsformba.blogspot.comAUTOMOTIVECASESTUDYOFHEROHONDAHUNKHeroHondanewBikehunklaunchedwithanewfe...



Projectsformba.blogspot.comAUTOMOTIVEReiteratingthatunlikeBajaj,whichisexitingthe100ccsegment,Munjalsai...



Projectsformba.blogspot.comAUTOMOTIVETherearemorethan1000committeddealers&serviceoutletsspreadacrossth...



Projectsformba.blogspot.comAUTOMOTIVEADVERTISINGSTRATEGYHeroHondaiscurrentlythenumberonecompanyinterms...




PrintaddsProjectsformba.blogspot.comAUTOMOTIVEGlamour69Projectsformba.blogspot.com



Projectsformba.blogspot.comAUTOMOTIVESomeoftheEventsSponsoredDuringtheYears2000NKPSalveChallengerTr...



Projectsformba.blogspot.comAUTOMOTIVEIntodayscenarioinIndiarockcultureisbecomingverypopularamongyoungster.T...



Projectsformba.blogspot.comAUTOMOTIVECRICKETERSHeroHondapromoteshiscricketersbrandambassadorsasaTeamAmbi...



Projectsformba.blogspot.comAUTOMOTIVEHeroHonda,throughtheadvertisements,hopestocommunicatethebrandidenti...



Projectsformba.blogspot.comAUTOMOTIVEHeroHondaIndiasnumberonetwowheelerinsales.Nowthisbigcompanyisro...

Projectsformba.blogspot.comAUTOMOTIVE3.Itstandsonitsfeetevenatspeedsreachingupto130kmph.S.W.O.T....



Projectsformba.blogspot.comAUTOMOTIVEHighMaintenance:ThemaintenanceofKarizmaishighascomparedtoitsbi...



Projectsformba.blogspot.comAUTOMOTIVES.W.O.T.ANALYSISOFCOMPETITOR(BAJAJPULSAR220cc)STRENGTHSPulsar220cc...



Projectsformba.blogspot.comAUTOMOTIVEWEAKNESSStyleandDesign:PULSAR200ccand220ccderivestheirstyling...



Projectsformba.blogspot.comAUTOMOTIVEthecountry.Itstheretailexperienceadedicatedbikerfeelswhenheor...

Aprojectreportonmarketingmixofautomotivesector



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Transcriptof"Aprojectreportonmarketingmixofautomotivesector"



1. 1.Projectsformba.blogspot.comAUTOMOTIVEPROJECTREPORTOnMARKETINGMIXOFAUTOMOTIVESECTORSubmittedinthepartialfulfilmentoftherequirementFortheawardofdegreeofMASTEROFBUSINESSADMINISTRATION(MBA)ToUNIVERSITYBUSINESSSCHOOLPANJABUNIVERSITYREGIONALCENTRE,LUDHIANASUPERVISEDBY:SUBMITTEDBY:1Projectsformba.blogspot.com

2. 2.Projectsformba.blogspot.comAUTOMOTIVE2Projectsformba.blogspot.com3. 3.Projectsformba.blogspot.comAUTOMOTIVEACKNOWLEDGMENTSWordsfailustoexpressour

deepsenseofgratitudetoourreveredsupervisor,UniversityBusinessSchool,whoseeruditeguidanceandsupervisionhavemadethisworkpossible.Weareverythankfulforthisvaluableguidanceandconstantencouragementduringthepreparationofthisproject.WearehighlythankfultoallothermembersofdepartmentofUBS(PURC)fortheirsuggestionsandkindcooperationinthisprojectwork.Wewouldliketothankalltherespondentswhoseresponseswereofgreatimportancefortheproject.3Projectsformba.blogspot.com

4. 4.Projectsformba.blogspot.comAUTOMOTIVEOBJECTIVEOFTHISSTUDYThisstudyisdoneinkeepingfollowingobjectivesinview:TofindoutthepresentstatusoftheautomobileindustriesinIndia.Tostudythemarketresearchoftheautomobileindustries.Tostudythedistributionandmarketingstrategyadoptbyautomobileindustries.ToenhanceouranalyticalskillsinthefieldofpracticalapplicationofMarketingThemarketerswatchwordsarequality,service,andvalue.PHILIPKOTLER4Projectsformba.blogspot.com

5. 5.Projectsformba.blogspot.comAUTOMOTIVECONTENTSS.NO.PARTICULARSPAGENO.1OVERVIEW062MARKETRESEARCH153MARKETENVIRONMENT164SEGMENTATION185TARGETMARKET206NICHEMARKET227MARKETMIX238PRODUCTMIX259PRICE3210PROMOTION3311PLACE4412PEOPLE4513PHYSICALEVIDENCE4614PROCESS4815DEALINGWITHTHECOMPETITION4916DISTRIBUTIONCHANNELS5117THEVALUECHAIN5218SWOTANALYSISOFMARUTIUDYOGLTD.5319PRODUCTLIFECYCLE5620INTRODUCTIONOFTWOWHEELER5821KEYPLAYERINTWOWHEELERINDUSTRY6022SEGMENTATIONOFTWOWHEELER6123KEYDRIVERSOFTHEINDIANTWOWHEELER6324HEROHONDAPROFILE6625MARKETMIXOFHEROHONDA6826CASESTUDYOFKARIZMA7827SWOTANALYSISOFKARIZMA7928SWOTANALYSISOFCOMPETITIOR(BAJAJPULSAR220)8129MARKETINGMIXOFKARIZMA8430CONCLUSION8931BIBILIOGRAPHY905Projectsformba.blogspot.com

6. 6.Projectsformba.blogspot.comAUTOMOTIVEOVERVIEWOFAUTOMOTIVESECTORTheindustryisestimatedtobeaUS$34billionindustrywithexportscontributing5percentoftherevenues.ThegrowthoftheIndianmiddleclasswithincreasingpurchasingpoweralongwiththestronggrowthoftheeconomyoverthepastfewyearshasattractedglobalmajorautomanufacturerstotheIndianmarket.Moreover,IndiaprovidestrainedmanpoweratcompetitivecostsmakingIndiaafavouredglobalmanufacturinghub.TheIndianautomobileindustryisgoingthroughatechnologicalchangewhereeachfirmisengagedinchangingitsprocessesandtechnologiestomaintainthecompetitiveadvantageandprovidecustomerswiththeoptimizedproductsandservices.Thedelicensingofthesectorin1991andthesubsequentopeningupof100percentforeigndirectinvestment(FDI)throughtheautomaticroutemarkedthebeginningofanewerafortheIndianautomotiveindustry.SincethenalmostalltheglobalmajorautomobileplayershavesetuptheirfacilitiesinIndiatakingthelevelofproductionofvehiclesfrom2millionin1991to10.83millionin200708.StagnationoftheautosectorinmarketssuchasEurope,USandJapanontheother,haveresultedinshiftingofnewcapacitiesandflowofcapitaltotheIndianautoindustry.TheIndianautomobileindustryhasbeengrowingattherateof1527percentoverthepastfiveyears.Intwowheelersindustry,Indiancompaniesarethelargestmanufacturersintheworld.Bikesareamajorsegmentintheindustry,theothertwobeingscootersandmopeds.Moreover,Indiancarmakersareearningacclaimworldwide.Thehomegrownautomaker,MarutiSuzukihasemergedasthefourthmostreputedamongautocompaniesintheworld,evenaheadofitsparentSuzukiMotorCoofJapan,accordingtotheGlobal200:TheWorldsBestCorporateReputationslist,compiledbyUSbasedReputationInstitute.6Projectsformba.blogspot.com

7. 7.Projectsformba.blogspot.comAUTOMOTIVEEVOLUTIONOFTHEINDIANAUTOMOBILEINDUSTRY7Projectsformba.blogspot.com

8. 8.Projectsformba.blogspot.comAUTOMOTIVEPre19831983199319932007ClosedmarketGrowthofmarketlimitedbysupplyOutdatedmodelsPlayersHindustanMotorsPremierTelcoAshokLeylandMahindra&MahindraSuzuki,JapanandGOIjointventuretoformMarutiUdyogJointventureswithcompaniesincommercialvehiclesandcomponentsPlayersMarutiUdyogHindustanMotorsPremierTelcoAshokLeylandMahindra&MahindraDelicensingofthesectorin1993GlobalmajorOEMsstart8assemblyinIndiaProjectsformba.blogspot.com



9. 9.Projectsformba.blogspot.comAUTOMOTIVELEADINGPLAYERSANDSEGMENTSINWHICHTHEYOPERATEManufacturerSegmentsAshokLeylandLCVs,M&HCVs,BusesAsianMotorWorksM&HCVsAtulAutoThreewheelersBajajAutoTwoandThreeWheelersBMWIndiaCarsandMUVsDaimlerChryslerIndiaCarsEicherMotorsLCVs,M&HCVs,BusesElectrothermIndiaElectricTwoWheelersFiatIndiaCarsForceMotorsThreeWheelers,MUVsandLCVsFordIndiaCarsandMUVsGeneralMotorsIndiaCars&MUVsHeroHondaMotorsTwoWheelersHindustanMotorsCars,MUVsandLCVsHondaTwoWheelers,CarsandMUVsHyundaiMotorsCarsandMUVsKineticMotorTwoWheelersMahindra&MahindraThreeWheelers,Cars,MUVs,LCVsMajesticAutoThreeWheelersMarutiSuzukiCars,MUVsPiaggioThreeWheelers,LCVsRevaElectricCarCo.ElectricCarsRoyalEnfieldMotorsTwoWheelersScootersIndiaThreeWheelersSkodaAutoIndiaCarsSuzukiMotorcyclesTwoWheelersSwarajMazdaLtd.LCVs,M&HCVSs,BusesTataMotorsCars,MUVs,LCVs,M&HCVs,BusesTatraVectraMotorsM&HCVsToyotaKirloskarCars,MUVsTVSMotorCo.TwoWheelersVolvoIndiaM&HCVs,BusesYamahaMotorIndiaTwoWheelers9Projectsformba.blogspot.com

10. 10.Projectsformba.blogspot.comAUTOMOTIVEMARKETRESEARCHMarketresearchoftenreferstoeitherprimaryorsecondaryresearch.Secondaryresearchinvolvesacompanyusinginformationcompiledfromvarioussources,whichisaboutaneworexistingproduct..Primarymarketresearchinvolvesqualitativeresearch(suchasfocusgroupsoroneononeinterviews)andquantitativeresearch(suchassurveys)aswellasfieldtestsorobservationsconductedforortailoredspecificallytothatproduct.Primaryresearch,whichisalsocalledfieldresearchororiginalresearch,isusefulforfindingnewinformationandgettingcustomersviewsonproducts.SCORPIOHavingdefinedthecompetitiveframework,thenexttaskundertakenwasthatofanalyzingtheconsumer.ConsumersegmentsofBandCcategorycarbuyerswereanalyzedintermsoftheirexpectationsfromacar,theirperceptionsaboutcarsandtheirrelationship.Proprietarytechniquesofresearch,oftheadvertisingagencyInterfaceCommunications,likeMind&Mood,ICONandVIPwereusedtounderstandthisconsumer.Thefindingswere:*Sizemattersbigsizestandsforstatus*Consumersseeklatesttechnology*Imagerybutataffordableprices*ThesheerthrillandpassionofdrivinganSUV*Powerofthevehiclemakesastatement*Butalongwiththeothers,luxurywasaveryimportantparameter*InternationalvehiclesdefineimagerySUVslikePajero,LandCruiserandPradoareseenasurbanvehiclesfortherichand10Projectsformba.blogspot.com

11. 11.Projectsformba.blogspot.comAUTOMOTIVEfamousconsumersaspiretoownthesevehiclesastheimageryofthesevehicleshasbecomeverydesirable.ConsumerswanttoconsumepremiumimageryatpricesaffordabletothemTheMarketingEnvironmentMarketingenvironmentconsistsoftheactorsandforcesoutsidemarketingthataffectmarketingmanagementsabilitytobuildandmaintainsuccessfulrelationshipswithtargetcustomers.Themarketingenvironmentoffersbothopportunitiesandthreats.Theenvironmentcontinuestochangerapidly.ThemarketingenvironmentismadeupofMicroenvironmentandMacroenvironment.TheMicroenvironmentconsistsoftheactorsclosetothecompanythataffectitsabilitytoserveitscustomers.Theseactorsare:thecompany,suppliers,marketingintermediaries,customermarkets,competitorsandpublics.TheMacroenvironmentconsistsofthelargersocietalforcesthataffectthemicroenvironment.Theseforcesare:demographic,economic,natural,technological,politicalandculturalforces.GMSTUXXTHEDEMOGRAPHICENVIRONMENTThedemographicpositionwillbeontheUnitedStates.Since,thetargetmarketisforthemiddleclassitwillprovideaboostforthe32%ofthetotalpopulation.Thisproductwillproduceasuperiorvaluetocustomerswhoalwaysvaluethebrand.Also,itwillkeepthepopularityoftheproductattheirtrend.Inthiscase,moreandmorecustomerswillbeabletokeepthisproductifitsatisfiestheircondition.Additionally,themiddleclassgroupwillbeloyaltothisproductbrandandasgenerationgoesbythisproductwillbethereforever.Ontheotherhand,thisproductisalsodesignedforstudents,andworkingclasspeople.Thisisduetothefancyandenvironmentaldesign.11Projectsformba.blogspot.com

12. 12.Projectsformba.blogspot.comAUTOMOTIVEStudentswillbesogratefultohavefancycarwhiletheworkingclassgroupwilltendtoaffordsuchanaffordableenvironmentalcardesign.THENATURALENVIRONMENTThisproductisbasicallydesignedtoreducethecarbonemissionfromfuelsandhelptopreserveourenvironment.Itisveryimportanttodesignsuchcartohelpdecreasetherateofcarbondioxidefromtheairandprovideabetterconditiontotackleglobalwarming.Thiscarwillprovideaboosttothenaturalenvironmentbecauseitissaferandhasanimagetobefriendliertotheenvironmentitself.Inthiscase,moreandmorepeoplewilltendtobuysuchcartoprotecttheenvironmentbyreducingthecarbonemissiontotheair.THEECONOMICALENVIRONMENTTheworldisfacingashortageoffuelandithasbecomeaneconomicalcrisistoeverycountry.Thisisevidenceasthepriceoffuelisincreasingandtheprobabilityofthepriceofabarreltoincreaseatanydayisveryhigh.Therefore,thisproductwillhelpcustomerstosavemoneybecauseitconsumeslessfuel.Thefuelconsumptionisoneof



thebestcriteriabasedonthisproduct.Ontheotherhand,customerswillbeabletosatisfywiththiskindofproductbecauseitisnottooexpensiveandeverybodyhastheprivilegetoaffordone.Thisproductwillsatisfythesuperiorvalueofalldifferentcustomerssinceithasaverygooddesigntosolvetofuelshortage,lessexpensive,andcanbeaffordabletoanyone.THETECHNOLOGICALENVIRONMENTThefastestgrowingofinformationtechnologyhelpsthisproducttobeatitsbest.Itsdesignisbasicallyprovidedwiththehelpofinformationtechnology.Lookingatitsdesign,thisproductbenefitsalotfromthetechnologicalsectors.Thisprovesthatthisproductisfavourabletotheenvironment.Also,thisproductcanbemodifiedorevenupgradedtothestandardwhereitwillbesuitableatanyenvironmentalcondition.The12Projectsformba.blogspot.com

13. 13.Projectsformba.blogspot.comAUTOMOTIVEInformationtechnologyisveryeffectiveinlettingthisproducttobeveryefficient.Inthiscase,ithelpscustomerstosatisfythiskindofproductinthistechnologicalenvironment.THESOCIALANDCULTURALENVIRONMENTItisbelievedthatprotectingtheenvironmentisagreatconcern.Therefore,thisproductispurposelydesignedtobeenvironmentallyfriendly.Asaresult,mostpeopleintheUnitedStatesandelsewherearewillingtooffersuchkindofproducttosavetheenvironment.Ifmoreandmorepeoplearekeentobuysuchkindofproductthentheenvironmentwouldbesafeatanycost.Consequently,peoplewillbemoresupportivetosavewhatisbestforthecommunitiesandtheenvironment.SEGMENTATIONAmarketsegmentconsistsofagroupofcustomerswhoshareasimilarsetofwantsThemarketerdoesnotcreatethesegmentsthemarketerstaskistoidentifythesegmentsanddecidewhichone(s)totarget.Segmentmarketingoffersseveralbenefitsovermassmarketing.Thecompanycancreateamorefinetunedproductorserviceofferingandpriceitappropriatelyforthetargetsegment.Thecompanycanmoreeasilyselectthebestdistributionandcommunicationchannels,anditwillalsohaveaclearerpictureofitscompetitors,whicharethecompaniesgoingafterthesamesegment.Inthecontextofautomotivesector,wewouldbeclassifyingitinthefollowingways:BASEDONTHEPRICEOFTHECARBASEDONTHELENGTHOFTHECAR13Projectsformba.blogspot.com

14. 14.Projectsformba.blogspot.comAUTOMOTIVEBASEDONTHEUSERSEGMENTBASEDONTHEPRICEOFTHECAROnthebasisofpriceofcarwecansegmentthecarinfollowingways:EconomySegmentoTheeconomysegmentofcarrangesuptoRs.2.5lacs.TheproductsinthssegmentareMaruti800,AltoandthenewlylaunchedproductofTATAmotorsi.e.NANO.MidSizeSegmentoThemidsizesegmentofcarrangesfrom2.5lacsto4.5lacs.ItincludestheproductslikeHyundaisantro,Marutizen,TataIndicaetc.LuxurycarsegmentoTheluxurysegmentofcarrangesfrom4.5lacsto10lacs.ItincludestheproductslikeHondacity,HyundaiVerna,MahindraScorpioetc.SuperluxurycarsegmentoThesuperluxurysegmentofcarrangesabove10lacs.Thissegmentsatisfiestheeliteclassofthesociety.ItincludestheproductslikeSkodaLaura,HondaAccord,BMW,Mercedes,Audietc.BASEDONTHELENGTHOFTHECARAsegmentCarsthatarelessthan3.5meterslong(800,omni)BsegmentCarsbetween3.5metersto4meterslong(Zen,SX4,Santro)CSegmentCarsbetween4metersto4.5meterslong(Verna,Hondacity,fordfiesta)14Projectsformba.blogspot.com

15. 15.Projectsformba.blogspot.comAUTOMOTIVEDsegmentCarsthataremorethan4.5meterslong(Mercedez,Sonata,Accord,Skoda)BASEDONTHEUSERSegmentationofautomotivesectorisalsobasedontheuseroftheproducts.LiketheexampleofTATAMotors,whenitobservedthattheirproductINDICAisusedextensivelybythetaxioperators,itcameupwithanewmodelofthecarhavingRoundTailLightstodistinguishitfromthecarhavingverticaltaillightsusedbytheindividualbuyers.IndividualBuyersTaxioperators:Government/nongovernmentinstitutionsTARGETMARKETSThesegmentthatgivesthegreatestopportunitytothemarketeriscalledtargetmarketing.VOLVOMOTORSVolvoMotorsdevelopsitscarsforbuyertowhomautomobilesafetyisamajorconcern.Volvothereforepositionsitsasasafestacustomercanbuy.15Projectsformba.blogspot.com

16. 16.Projectsformba.blogspot.comAUTOMOTIVE.HYUNDAIMOTORSHyundaimarketingstrategyisdifferentiatedmarketing.Itsprimaryconsumertargetismiddletoupperincomeprofessionalswhoneedtruevaluefortheirmoneyandcomfortablerideincityconditions.Itssecondaryconsumertargetiscollegestudentswhoneedstyleandspeed.Itsprimarybusinesstargetismidsizedtolargesizedcorporatethatwanttohelptheirmanagersandemployeesbyprovidingthemacarforeaseoftransport.Itssecondarybusinesstargetisentrepreneursandsmallbusinessownerswhowanttoprovidediscountstomanagersbuyinganewcar.EachofthefourmarketingstrategiesconveysHyundaidifferentiationtothetargetmarketingsegmentsidentifiedabove.HyundaiSantroistargetingmiddleprofessionalsAccentwaslaunchedtotargetcorporateclients16Projectsformba.blogspot.com

17. 17.Projectsformba.blogspot.comAUTOMOTIVENICHEMARKETAnicheisamorenarrowlydefinedgroupseekingadistinctivemixofbenefits.Marketersusuallyidentifynichesbydividingasegmentinto



subsegments.BMWistargetinghighclasspeoplebutitismainlytargetingtheyoungpeoplewhoearnalotofmoneyuptotheageof3540yearsandwanttohaveastylishsaloon.MercedesisalsotargetinghighclasspeoplebutitismainlytargetingtheCEOs,chairmen,etcofagegroupof5060years.17Projectsformba.blogspot.com

18. 18.Projectsformba.blogspot.comAUTOMOTIVEMARKETINGMIXAMarketingmixisthedivisionofgroupstomakeaparticularproductbypricing,product,branding,place,andquality.AlthoughsomeDay1marketershaveaddedotherPs,suchaspersonnel,packagingandphysicalevidence,thefundamentalsofmarketingtypicallyidentifiesthefourPsofthemarketingmixasreferringto:"MarketingMix"issetofcorrelatedtoolsthatworktogethertoachievecompanysobjectives,theyare:product,price,promotion,place.Thesetofcontrollabletacticalmarketingtools,product,price,placeandpromotionthatthefirmblendstoproducetheresponseitwantsinthetargetmarket:ProductAtangibleobjectoranintangibleservicethatismassproducedormanufacturedonalargescalewithaspecificvolumeofunits.Intangibleproductsareoftenservicebasedlikethetourismindustry&thehotelindustry.Typicalexamplesofamassproducedtangibleobjectarethemotorcarandthedisposablerazor.Alessobviousbutubiquitousmassproducedserviceisacomputeroperatingsystem.PriceThepriceistheamountacustomerpaysfortheproduct.Itisdeterminedbyanumberoffactorsincludingmarketshare,competition,materialcosts,productidentityandthecustomersperceivedvalueoftheproduct.Thebusinessmayincreaseordecreasethepriceofproductifotherstoreshavethesameproduct.PlacePlacerepresentsthelocationwhereaproductcanbepurchased.Itisoftenreferredtoasthedistributionchannel.ItcanincludeanyphysicalstoreaswellasvirtualstoresontheInternet.PromotionPromotionrepresentsallofthecommunicationsthatamarketermayuseinthemarketplace.Promotionhasfourdistinctelementsadvertising,publicrelations,wordofmouthandpointofsale.Acertainamountofcrossoveroccurswhenpromotionusesthefourprincipalelementstogether,whichiscommoninfilmpromotion.Advertisingcoversany18Projectsformba.blogspot.com

19. 19.Projectsformba.blogspot.comAUTOMOTIVEcommunicationthatispaidfor,fromtelevisionandcinemacommercials,radioandInternetadvertsthroughprintmediaandbillboards.OneofthemostnotablemeansofpromotiontodayisthePromotionalProduct,asinusefulitemsdistributedtotargetedaudienceswithnoobligationattached.Thiscategoryhasgrowneachyearforthepastdecadewhilemostotherformshavesuffered.Itistheonlyformofadvertisingthattargetsallfivesensesandhastherecipientthankingthegiver.Publicrelationsarewherethecommunicationisnotdirectlypaidforandincludespressreleases,sponsorshipdeals,exhibitions,conferences,seminarsortradefairsandevents.Wordofmouthisanyapparentlyinformalcommunicationabouttheproductbyordinaryindividuals,satisfiedcustomersorpeoplespecificallyengagedtocreatewordofmouthmomentum.SalesstaffoftenplaysanimportantroleinwordofmouthandPublicRelations19Projectsformba.blogspot.com

20. 20.Projectsformba.blogspot.comAUTOMOTIVEPRODUCTMARUTISWIFTEuropeanStyling.JapaneseEngineering.DreamLikeHandling.ThenewSwiftisagenerationdifferentfromSuzukidesign.Styledwithaclearsenseofmuscularity,itsoneandahalfbox,aggressiveformmakesforalookofstability,asensethatitispackedwithenergyandreadytodeliveradynamicdrive.Itssolidlookiscomplementedbyanequallyrootedroadpresenceandclassdefiningridequality.Newchassissystemsallowforthefrontsuspensionlowerarms,steering,gearboxandrearenginemountingtobeattachedtoasuspensionframe.Yougetlowerroadnoise,andagreaterfeelingofstabilityasyousailoverourroadswithfeathertouchease.TATAINDICAThoughalateentrant,theIndicaquicklyestablisheditselfasthebenchmarkforthesegment.Byofferingexcitingfeatures,thecarchangedtherulesofthecategoryinSpace,Power,Style,SafetyandEconomyforinternationalmarket.TheIndicaensuredapleasantrideandhandlingexperienceasithadfeatureslikewidelargetyres,generouslegroomandindependentfrontandrearsuspension.Itdevelopedanewsegmentofdieselsmallcarsalongwithitspetroloffering.Theluggagespacewasalsothebestinitsclass.20Projectsformba.blogspot.com

21. 21.Projectsformba.blogspot.comAUTOMOTIVETherigid980kgssteelbodyofthecarwasrigorouslytestedatIndiasfirstandonlycrashtestfacility.Acollapsiblesteeringwheel,impactabsorbingbumpers,antisubmarineseats,crumplezonesandsideimpactbeamsarejustafewofthefeaturesthatmaketheIndicaoneofthesafestcarsontheroadstoday.Savingsareensuredwiththefuelefficient1.4Ldieselengine,whilethe1.4Lpetrolengineisoptimizedforperformance.Indicafeaturesforinternationalmarket:CollapsiblesteeringcolumnSideimpactbeamEnergyabsorbingcrumplezonesinthefrontAntisubmarineseatsChildsafetylocksonreardoorsLaminatedfrontandrearwindshieldglassSCORPIORationalbenefits:Worldclassvehicle,goodlooks,carlikecomfort,greatvalueEmotionalbenefits:Ownershipexperienceofthrill,excitementandpowerRelationalbenefits:Youngmodern,premium,citycompanion/extensionoflifestyle.PRODUCT,SERVICESANDBRANDINGSTRATEGY21Projectsformba.blogspot.com

22. 22.Projectsformba.blogspot.comAUTOMOTIVEWhatisaProduct?Productisanythingthatcanbe



offeredtoamarketforattention,acquisition,use,orconsumptionthatmightsatisfyawantorneed.Productsincludemorethanjusttangiblegoods.Broadlydefined,productsincludephysicalobjects,services,events,persons,places,organizations,ideasormixesoftheseentities.Servicesareaformofproductthatconsistsofactivities,benefitsorsatisfactionsofferedforsalethatareessentiallyintangibleanddonotresultintheownershipofanything.Example:banking,hotelandairline.Products,ServicesandExperiences:Today,companiesarecreatingandmanagingcustomerexperienceswiththeirproducts.LevelsofProductsandServices:ProductPlannersneedtothinkonthreelevels:1.CoreBenefit:ThisaddressesthequestionWhatthebuyerisreallybuying?.Atthislevel,marketersmustdefinethecore:problemsolvingbenefitsorservicesthatconsumerseeks.2.ActualProduct:Atthislevel,thecorebenefitsmustbeturnedintoactualproducts.Productplannersneedtodevelopproductandservicefeatures,design,qualitylevel,brandnameandpackaging.3.AugmentedProduct:Finallyatthislevel,theproductplannersmustbundletheproductswithservices.Theymustbuildanaugmentedproductbyofferingadditionalconsumerservicesandbenefits.HyundaiSantro22Projectsformba.blogspot.com

23. 23.Projectsformba.blogspot.comAUTOMOTIVECOREPRODUCTCoreProductistheproblemsolvingservicesorbenefitsthatconsumerspurchasetheproductfor,andbyapplyingthisconcepttoSantroyoucanstatethatthecoreproductisspeed,transportation,andfreedomtogoanywhere,easytraveling,andconvenience.ACTUALPRODUCTActualproductmeaningtheproductsparts,quality,features,design,brandnameandotherattributesreceived.Now,ifweusethesethingsandcombineitwithSantrowecanstatethattheactualproductis:Santro,asthebrandname,itmatterslittleaboutthename,becauseHYUNDAIisveryfamousalready,peoplewillrecognizethebrandinaninstance,andfeaturessuchasthefactthatthecarisfullycustomizable,soyoucanaddmostthingstoyourcar,i.e.Stereo,bigspeakers,rimsforthetires,TVinseatetc.,alsodesign,whereyoucanchoosebetweenalotofcolours,seatcolour,andfabrics,allthethingsyoucanimagine.Andofcoursethequality,thecarwillberegularHYUNDAIstandard,meaningqualitywillbethesameasforanyothercarmadebyHYUNDAI,whichishighquality.AUGMENTEDPRODUCTAugmentedproductistheadditionalconsumerservicesandbenefitsbuiltaroundthecoreandactualproduct,aswellasaddvalueanddifferentiatetheproductfromitscompetition.TheaugmentedproductforSantroisaftersaleservicessuchasfreeyearlycheckup,aswellasafreeoilcheckafter2years,freeinstallationofadditionalfeatureswhenyoucustomizeyourcar,andhelpwithcarinsurance,andquickrepairservices.PRODUCTCLASSIFICATIONSGMSTUXX23Projectsformba.blogspot.com

24. 24.Projectsformba.blogspot.comAUTOMOTIVEFromthe4productclassifications,convenience,shopping,specialtyandunsought,theStuxxisclassifiedasaspecialtygood,sincespecialtygoodsarepurchasedinfrequently,andmostofthetimes,buyersmakespecialpurchasingeffort.Bylistingsomeofthecharacteristicsforspecialtyproductswecansaythatsubstitutesarenotaccepted,andthattheproductisinfrequentlypurchased,andsinceourStuxxisaGMweknowthattherearesomebrandloyaltyaswell.Andifwelookatthestrategy,wecannotelimiteddistribution,andconsumersmightseekourproductregardlessoflocation,STAGESINDEVELOPINGPRODUCTANDSERVICEATTRIBUTESPRODUCTATTRIBUTESProductattributesconsistofseveralcategories,suchasProductquality,Productfeatures,Productstyleanddesign.ForStuxxproductqualityistheperformancequality,becauseitcanbeusedalotandstilllastforalongtime(Durability).AndasforProductstyleweknowthatStuxxoffersmanycoloursandmanystylesusedtoattractattentionfromtrendyconsumers,andgeneralconsumers,thestylehoweverdoesnotcontributetobetterperformance.ForProductdesign,thecarhasaveryspecialchassisthatallowsmanychanges,makingthisafullycustomizablecar,whereyouarefreetoalterappearance,features,construction,suchasaddingitemsonthebackofthecar,loweringthecarmakingitlookmorestylishlikearacecar.BRANDINGThereareseveraladvantagesforbuyerswhentalkingaboutbranding,firstofallproductrecognition,everyoneknowsGM,soiftheyknowGM,thentheyknowStuxxaswell.QualityonStuxxissamestandardastherestofGMscars.Thereare.Butnot24Projectsformba.blogspot.com

25. 25.Projectsformba.blogspot.comAUTOMOTIVEonlybuyershaveadvantages,no,sellersaswell.Hereareafewexamples,basisforproductsquality,provideslegalprotection,helpstosegmentthemarkets.BRANDSTRATEGYAstudyofinternationalbrandnameswasdoneandaclassificationofbrandnamesofmidsizecarsandSUVswasdoneintogroups.Internationalbrandnamingtrendsandstrategieswereanalyzed.Newnamesweregenerated.Thesebrandnameswereresearchedmassivelyfirstbyqualitativetechniquesandthenbyquantitativetechniques.Thenamethatemergedasmostpopular,andwhichwasalsothemostlikednameinternallyatMahindrawasSCORPIO.BRANDENDORSEMENTSTRATEGYTherelationbetweenScorpioandthemotherbrandMahindrawasalsodeliberatedupon.ThestrategychosenforBrandEndorsementwasScorpiofromMahindrashadowendorsement,onewhichdoesnotshoutMahindra.TheMahindrabrandimagewasnotmodernandyoung.Therewasaneedtocreateastrongdistinctmodernbrand.HenceMahindraasaMasterbrand



couldnotcontributetowardsenhancingtheValueProposition.YetMahindrahadtoprovidesourcereassurance.AlsothedistributionwouldbethroughMahindradealerships.Henceitbecameashadowendorser.PACKAGING25Projectsformba.blogspot.com

26. 26.Projectsformba.blogspot.comAUTOMOTIVESinceproductisacar,packagingmightnotbeofmuchimportance.Carsusuallydontcomeinabox.However,sinceSantroismadeforstudentsandolder,theyhavedecidedtomakeabigbox,freeofallcharges,ifthecarisagiftforsomeonesbirthday.Santroisagoodchoiceasafirstcarparentscaneasilybuyitasagiftfortheiryoungteenagers/students.LABELINGNolabelling,howeverforcurioususers,therewillbeasmallbrochureabouttheingredientscarparts,sotheycanseehowexactlythecarworks,andwhatandwherethedifferentpartsarefrom.PRODUCTSUPPORTSERVICESAsforproductsupportservices,thereare3thingstoknow:Assessthevalueofcurrentservicesandobtainideasfornewservices.Assessthecostofprovidingtheextraservicesandputtingtogetherapackageofservicesthatdelightsthecustomersandyieldsprofitsforthecompany.Allthese,arealreadyappliedtoSantroifwelookatAugmentedProduct,whichIwroteaboutearlier.Customerswouldbedelightedaboutthoseextraservices,andmighttellfriendsaboutthemandintheendmakemoreprofitforthecompany.PRODUCTLINEDECISIONS(TheProductMix)Whenitcomestoproductlinedecisions,andproductmixtobeexactwewillfindthatthereare3types,namelywidth,lengthanddepth.AsforStuxx,itisdefinitelywidth,becauseStuxxisadifferentproductlineforGM.PRICEMARUTISWIFT26Projectsformba.blogspot.com

27. 27.Projectsformba.blogspot.comAUTOMOTIVEAfterlaunchingcarsforthemassessincesomanyyears,IndiaslargestautomobilemanufacturerisnowtargetingthepremiumsegmentwiththeirlatestmodelfromtheSuzukisstable.PricingofthispremiumhatchbackisstartfromRs.4lakh.ThispricerangewouldpracticallyripapartHyundaisofferinginGetz,whichispricedatamuchhighertagofRs.4.5lakh.BoththecompaniesareknownfortheirvaluebasedofferingsandMarutiwiththeirextensiveservicenetworkandbrandreputationformakingreliablecarsshouldgetthecustomersnodovertheircompetition.TATAINDICATataMotorsadoptedacompetitivepricingstrategyforIndicaintheglobalmarket.Priceswerefixedonthebasisofthenormsprevailingintheinternationalmarket.AlsothepricesofferedbytheircompetitorslikeToyota,Ford,Fiat,werekeptinmindwhiledecidingtheprices.SCORPIOPricingStrategy:tobeapremiumbrandyethavinguniversalappeal.ScorpiowastocompetewiththemidsizecarslikeHyundaiAccent,FordIkon,OpelCorsa,MarutiSuzukiEsteemontheonesideandUVslikeToyotaQuails,TataSafariandtheTataSumoontheother.ScorpioadoptedthepenetrativepricingstrategypositionedinthepsychologicalpricebarrierofRs.57Lakhs.PROMOTIONMARUTISWIFT27Projectsformba.blogspot.com

28. 28.Projectsformba.blogspot.comAUTOMOTIVEWhenMarutiUdyoglaunchedtheSwift,theautomotiveindustrywasagogwithexpectationthatthecarhadthemakingsofarealwinner.ThreeversionswerelaunchedwiththebasevariantcarryingaretailtagofRs3.85lakh,exshowroom,NewDelhi,andthisaggressivepricingonlyreinforcedthisfeeling.EventOrganizedByMarutitoPromoteSwiftFeverFMandMarutiSuzukiSwiftorganizeaNightRallyforDelhiitesOnMarch24,2009Inacooperativemarketinginitiative,FeverFMandMarutiSuzukiSwiftcametogethertoorganizeaNightRallyinDelhi.TheSwiftNightLifeRallywasorganizedfortheSwiftLifeClub.Thebrandtiedupwiththestationtoextendtheexperiencetothepeoplewhowereunabletoparticipateintheactivity.HondaRoadShowsThecompanyplanstostageroadshows,todisplayvehiclesinthepavilionsduringvariouscollegefestivalsandexhibition.HyundaiTelevisionadvertisementsAdvertisementstopromoteandmarketourproductareshownonleadingtelevision28Projectsformba.blogspot.com

29. 29.Projectsformba.blogspot.comAUTOMOTIVEchannels.MajormusicandsportschannelspromoteandtheyreachouttotheyouthwillbepromotedthroughStar,Zee,SonyandATVCommercialbyHyundaidoordarshanetcasithasmoreviewers..RadioRadioisthemediumwiththewidestcoverage.Studieshaverecentlyshownhighlevelsofexposuretoradiobroadcastingbothwithinurbanandruralareas,whetherornotlistenersactuallyownaset.Manypeoplelistentootherpeoplesradiosorheartheminpublicplaces.Soradioannouncementsaremadeandadvertisementsareannouncedontheradioabouttheproductfeaturesandprice,qualities,etc.PrintAdsDailyadvertisementsinleadingnewspapersandmagazinesareusedtopromotetheproduct.Leafletsattheinitialstagearedistributedatrailwaystations,malls,collegeareasandvariousotherlocations.PrintadbyBMWWorkshopsandSeminarsWorkshopsandseminarsareheldincollegesandbigcorporatetomakepeopleawareaboutthecompaniespastperformanceandproductfeatures,itsaffordabilityandusage,vastdistributionnetwork.29Projectsformba.blogspot.com

30. 30.Projectsformba.blogspot.comAUTOMOTIVEBanners,neonsignsHoardings,banners,neonsignsaredisplayedatclubs,discs,outsidetheatres,highwaysandshopstopromoteitsbrandcar.BookletsandpamphletsBookletsarekeptatcarshowrooms,retailbatteryoutlets,etcforthecustomertoread.Thesebookletsprovideinformationaboutitscompanytheproductsofferedwhichsuitsthecustomersneed



accordingly.TOYOTACOROLLAThePromotionforToyotaCorollaconsistsofablendofactivitiesmakingitsPromotionMix.ItsPromotionMixconsistsofalmostallthepossibletechniquesofPromotionusedforanyotherproduct.SomeofthemajorelementsofPromotionMixofToyotaCorollaarelistedasunder:AdvertisingItusesmanydifferenttechniquesofAdvertisementasapartofitsAdvertisingStrategy.MostofthePrintAdsofToyotaCorollaareindividuallytargetedatoneofthesefactorssuchasComfort,Performance,Styling,Power,LegRoom,Design,andDrivingPleasure.OnemostcommonfeatureofalmostalltheAdsisthatineveryAdvertisement,thefactthatitistheWorldsLargestSellingCaranditspresenceacross160countriesispresent.ThisisdonetobecausethecompanywantstodifferentiatetheproductintermsofitsReliabilitythatitisanentrustedbrandof30Millionpeopleacrosstheglobe.Thefactthatitispresentin160countriesprovesthatitisaGlobalCar.Thereare3TVCommercialsofthisCarinIndia.TheCommercialsshowthatthisCaristargetedmainlyattheIndianyouthandyoungExecutive.Ithasbeenpositioned30Projectsformba.blogspot.com

31. 31.Projectsformba.blogspot.comAUTOMOTIVEasalittlesportierwhichisthemainreasonthatitisforyoungpeopleandisalsolikebythemtoo.TheBrochures,Posters/LeafletsaresuchdesignedthatshowsthatCorollaisacarforpeoplewhodemandPerformance,Style,PowerandSheerDrivingPleasure.Thecarbeingaperfectcombinationofthesefactorsmakesitahugesuccessacrossitssegment.TheOtherSourcesofAdvertisementincludeBillBoards,DisplaySigns,POP,Displays,Symbol/Logo.ThecompanydoestheAdvertisingofCorollabydisplayingBillBoardsandDisplaySignsatvarioustargetplaceswhereitfeelsthatprospectivebuyerwillcomeacrossit.Attheshowroomalso,therearehugeamountofPointOfPurchaseDisplaysandalsoSymbols/Logowhichaddtoit.OneofthemajorsourcesofSalesPromotionisTradeFairslikeAUTOEXPO,MOTORSHOWetc.ThecompanyusedtotakepartinthesetypesoffairsanduseditforitsSalesPromotion.ButnowthetrendisshiftingbecausethecompanythinksthatiftheywanttolaunchaproductonaNationalLevel,thenthereisnoneedforsuchkindofshowsasnowtherearevariousotherpowerfulsourcesofmediaavailabletothem.Moreoverthecostspentonthesekindsoffairswasnotjustified.Sothereforethecompanyisnowkeepingawayfromfairs.In1999ToyotalasttimeparticipantattheRACrallyinBritain.31Projectsformba.blogspot.com

32. 32.Projectsformba.blogspot.comAUTOMOTIVESomeotherSalesPromotiontechniqueusedbythecompanyistheFestivalSeasonOffersitintroducesinthemarketatthetimeofDiwali,NewYear,Christmas,Navratrietctoboostshorttermsales.PublicRelationsandCommunityBuildingExerciseContributiontoTsunamiToyotaKirloskarMotorwinsBestOrnamentalGardenawardforitslandscapeToyotaKirloskarsignsMoUwithBangaloreUniversityforpromotionofJapaneseLanguageToyotaobservesearthdaybysupportinglocalschoolsOrganizingDrawing/PaintingCompetitiononMeandmyEnvironmentforkidsfromGovt.Schools.32Projectsformba.blogspot.com

33. 33.Projectsformba.blogspot.comAUTOMOTIVE33Projectsformba.blogspot.com34. 34.Projectsformba.blogspot.comAUTOMOTIVEPERSONALSELLING34

Projectsformba.blogspot.com35. 35.Projectsformba.blogspot.comAUTOMOTIVEPersonalSellinglargelytakesplaceattheDealers

End.ThewaythecustomerisattendeddependsmainlyontheDealerasheactsasaninterfacebetweenthecompanyandtheConsumer.ThevariouscasesinwhichPersonalSellingtakesplaceisIndividualSales,CorporateSales,SalesPresentations,FairandtradeShows.MostlyincaseofIndividualSalestheCustomergoestotheshowroomandtakesalookattheproduct.ThereheisattendedtobytheSalesPersonneloftheDealership.SometimestheSeniorSalesExecutivehastomakeSalesPresentationtoCorporateBuyers.PersonalSellingisalsopracticedatTradeFairsandAutoShowswhereintheCompanyappointedSalesPersonnelattendprospectivecustomersandalsobooktheirorders.DIRECTMARKETINGInthecaseofDirectMarketingtheCompanyOfficialsdirectlycontacttheProspectivebuyerswiththeinformationavailablethroughvarioussources.ForexampleincaseofRoadShows,TradeFairs,Autoshowsetc.Sometimestheexistingcustomersalsoprovidereferencesofprospectivebuyerssuchastheirfriendsorrelatives.ToyotaStallattheAutoExpoGMSTUXX35Projectsformba.blogspot.com

36. 36.Projectsformba.blogspot.comAUTOMOTIVEGMIhaslaunchedseveralindustryfirstprogramssuchasOpelClubCardfacility,OpelCarnivals,OpelAutobahnnewsletter,chauffeurtrainingprogrammes,mobileroadshowcaravan,carexchangeprogrammeforOpelcustomers,OK5Starusedcarprogramme,Thereistwoyearandfouryearwarrantyschemes,2yearserviceholidayetc.SuchprogrammeshavehelpedGMinbuildingitsbrandequityanddevelopingaloyalcustomerbase.SCORPIOBrandPromise:Luxuryofacar.ThrillofanSUVthisbrandpositioningaddressesthekeyconsumerInsightandtheproductdeliversthepromise.Thepositionisalsoauniqueproposition,whichwillhelpthebrandhaveadistinctimageintheconsumersmind.BaselineNothingElsewilldoThebaselinecapturestheessenceofthebrand,whichissuperiorityanduncompromisingattitude.ItalsosummarisesthespiritbehindthemakingoftheScorpio.MediaStrategy*Dramaticandhighimpact



launch*Highvisibility*PushbrandimageevenbythemediavehicleBuildingimpactthroughmultiplemedia*PR,MassMedia,DirectMarketing,Events36Projectsformba.blogspot.com

37. 37.Projectsformba.blogspot.comAUTOMOTIVEPublicRelationsPrelaunchexcitementandbuzzwascreatedbyafullblownPRprogram.MediacoverageontheIDAMprocess,thepeoplebehindtheScorpio,theobsession,theworldclasstechnology,etcsetthetoneforthehypeduplaunch.PRwasalsothefirsttoolusedforlaunchingtheScorpio.Thecoverageofthelaunchwasmassive.ItgotfourcoverstoriesMassMediaWhilethemediatargetswouldbeachievedthroughtherightselectionofthemediamix,theScorpiomediaposturewastoensurethatScorpiowaspresentonthedecidedmediabutwithadifference.Scorpiowouldusemediainnovationstocreatedifferentiationonthetraditionalmediaanddothingsinabiggerandbettermanner.CustomerRelationshipManagement(CRM)CRMasatoolwasusedtocreatepositivewordofmouth,tomonitorcustomerexperiencesandgeneratereferrals.AseriesofCRMactivitieswereimplementedwithregulardirectcommunication,eventsandcustomerresearch.TheCRMplanincludedawelcomePackonfillingupScorpioClub(TopGear)form,satisfactionsurveys,Events,Festiveoffers,RewardsProgram,etc.TATAINDICAMorecarpercaristhefamoustaglineofthisproduct.TheIndicaspositioninghasremainedconsistentwiththebrandsofferinginanincreasinglycompetitivemarket.TheIndicaisnowsynonymouswiththewordMore,byencapsulatingtheinherentproductstrengthsandmarryingthemwiththecustomertraitofdesiringMore.ApromotionstrategyforIndicav2ininternationalmarketismoreorlesssameasthatoftheIndianmarket.MediainnovationshavebeenakeytothesuccessoftheIndica.37Projectsformba.blogspot.com

38. 38.Projectsformba.blogspot.comAUTOMOTIVETataat29thBangkokInternationalMotorShow2008ThepositioningwasstrengthenedwiththesuccessfullaunchoftheIndicaV2,whichassumedtheleadershippositionintheyearofitslaunch.TheIndicav2waslaunchedintheinternationalmarketonlythroughthepressmedium,withthreedieselversionsandapetrolversion,andthiscampaignshatteredmanyautomobileadvertisingmyths.Thecarwaslaunchedwithoutanytelevisionadvertising,butthroughhighimpactnewspaperads,dominatingthemediumanddeliveringthedesiredimpact.HeadlinessuchasYoullneverhavetosufferasmallcaragainassistedcustomersindistinguishingbetweentheiroldchoicesandtheIndica.This,ineffect,placedtheIndicaonthepedestalofleadership,settochangetherulesofthegame.ArecentcampaignfortheIndicaV2hashelpedinbuildingtheproductontherationalplatformandaddsanemotionallayer.AnchoredontheinsightItsonlyhumantowantmore,thecampaignrevolvesaroundinterestingcandidmomentsinthedailylivesofnormaleverydaypeoplewhodesiremorebeitaboywantingtheotherboysbiggerlollipop,orababycryingwhenherparentsstopdrivingheraroundintheIndicaV2.ThelatestcampaignmovestotheEvenmorecarpercarpositioning.PLACE38Projectsformba.blogspot.com

39. 39.Projectsformba.blogspot.comAUTOMOTIVEMARUTISWIFTThecarmanufacturingcompany,calledMarutiSuzukiAutomobilesIndiaLimited,isajointventurebetweenMarutiUdyogandSuzukiMotorCorporationholdinga70percentand30percentstakerespectively.TheRs1,524.2croreplanthasacapacitytorollout1lakhcarsperyearwithacapacitytoscaleupto2.5lakhunitsperannum.Thecarmanufacturingplantwillbegincommercialproductionbytheendof2006.TheengineandthetransmissionplanthasownedbySuzukiPowertrainIndiaLimitedinwhichSuzukiMotorCorporationwouldhold51percentstakeandMarutiUdyogholdingthebalance.Theultimatetotalplantcapacityisthreelakhdieselengines.However,theinitialproductionis1lakhdieselengines,20,000petrolenginesand1.4lakhtransmissionassemblies.TATAINDICATataautomobilegrouphaveaverylargedistributionnetworkallovertheworld.TataIndicav2isexportedandassembledinmanycountries.SouthAfricahasanassemblingunitforconsumervehicles.Otherplaceswherethecompanysproducts(TataIndica)areexportedandinsomeassembledalsoarementionedbelow:Africa:Algeria,Angola,Ethiopia,Ghana,Kenya,Mauritius,Sudan,Uganda,SouthAfrica,Senegaletc.Europe:Greece,Hungary,Italy,Malta,Portugal,Spain,Switzerland,UKandIreland.CIS:Belarus,Russia,Ukraine.Asia:Bangladesh,Malaysia,SriLanka,Nepal,Bhutan.AustraliacontinentPEOPLE39Projectsformba.blogspot.com

40. 40.Projectsformba.blogspot.comAUTOMOTIVETherearevarioustypesofpeopleinanyOrganization.ThevarioustypesofpeopleincaseofToyotacanbeclassifiedasCustomers,SalesExecutives,Society,Government,Competitors,andMedia.ThemostimportantoutoftheseisourCustomers.Acustomercanbeanypersonwhopurchasestheproducthemayormaynotusethatproductforhimself.Aconsumerisonewhoactuallyusestheproducthimself.ForexampleafatherpurchasesCorollaforhisson.InthiscasethefatherwillbetheCustomerandsonwillbetheConsumer.ThemainpeopleinvolvedinthepurchasedecisionofthecararetheFamilyMembers.Inarecentstudyconducted,itwasfoundoutthatthesedayschildrenplayamajorroleindecidingwhichcartobuyforthefamily.Thecompanyhastoseriouslytakeintoconsiderationallthesefactors.Alsothefactorsthatwhetheroneusesthecarfor



travelling,office,shoppingorfamily/personaletc.Asthiscarfallsintoasegmentwherepricerangeisbetween911Lacs,sothecompanyhastotargetthosepeoplewhonotonlyhavetheabilitytospendthatmuchamountofmoneybutarealsowillingtospendthatmuchamountofmoney.Dataregardingthepurchasingpowerofdifferentclassesofpeopleisalsoverynecessary.Customerstastesandpreferenceshavetobetakenintoconsideration.NextcomestheSalesExecutiveswhodealwiththefinalcustomersandfinishthesalescall.TheSalesExecutivesplayamajorrole.Asthepeopleoftheorganizationtheyareawindowthroughwhichthecustomersinteractwiththecompany.Theyhavetobetrainedproperlythroughcustomizedmodulesdesignedespeciallyforthemtakingintoconsiderationthevariousfactors.CorollaOwnersProfileAge:254540Projectsformba.blogspot.com

41. 41.Projectsformba.blogspot.comAUTOMOTIVEOccupation:BusinessClassorHighLevelServiceExecutivesSocialClass:Thesepeople(LowerUppertoHigherUpperClass)generallyhaveanexistingCsegmentcarbeforetheypurchaseCorollaAreas:Urban/SubUrban,majorCities/TownsIncomeLevel:MorethanRs.2lacsp.m.PHYSICALEVIDENCEThePhysicalEvidenceiscreatedbydisplayingphysicallytheproduct.Alongwiththatcreatinganatmosphereforthecustomerswhereintheyfeelthepresenceofproduct.ToyotacreatesapowerfulphysicalevidenceforitscustomersthroughitsShowrooms,Hoardings,Logoetc.Alltheshowroomsaredesignedonacommonplatform.TheinteriorsofalltheshowroomsacrossIndiaarethesame.ThedesignsforthesamearecreatedbyateamofProfessionalsinthisfield.Thedesignsarepreparedverycarefullykeepingintoconsiderationvariousfactorssuchascustomerstastesandpreferences,likesanddislikesetc.YouwillalwaysfindaToyotashowroomhavingtheToyotaBillBoardoutsidewithwhitebaseandredforeground.Thiscreatesaphysicalpresenceandpeoplecanfeeltheproduct.SHOWROOMINTERIORANDEXTERIOR41Projectsformba.blogspot.com

42. 42.Projectsformba.blogspot.comAUTOMOTIVESCORPIOInfrastructureThirtyfiveshowroomsacrossthecountrywereredoneentirelywiththesamelookandidentityandadcorbuiltaroundmovement,technologyandsportiness.Thethemefocusedongivingthecustomeramemorableexperience.42Projectsformba.blogspot.com

43. 43.Projectsformba.blogspot.comAUTOMOTIVETheshowroomrevampwascenteredontheintentiontoprovideauniformcustomerexperienceatallthetouchpointsandtoprovidethecustomerwithauniqueexperienceandnotjustaproduct.Thereforethebackofficewouldremainoutsidethecustomerslineofvisionbecausethecustomerwouldbeconcernedwiththeproductandnotwiththepaperwork.PROCESSThevariousprocessesinvolvedingettingavailabletheproductfromthemanufacturertotheendconsumeraretobeefficientlyperformedbythecompany.TheprocessesstartwhenthecustomeriscontactedbytheSalesPersonneloftheDealershiporthecustomercontactstheDealershipifheisinterestedtobuyaCorolla.Thedataregardingthevariouscustomerscanbehadfromvarioussourcesofdataavailablethroughdifferentagencieswhichspecializeinprovidingdata.Afterthecallismade,anappointmentisfixed.TheSalesExecutivepreparesforthemeet.Hecollectsallthepossibleinformationwhichwouldbeneededforthemeetingi.e.dataaboutthecustomer,detailsaboutthecar,maximumpermissiblediscountstructure,financeoptions,deliveryterms,freeaccessorieswhichwillbeprovidedtothecustomer.Thesalespersonnelwillfindoutthatwhatisthepresentvehicleusedbythecustomer,hispresentbuyingpower,satisfactionlevel,seriousnessinbuyingetc.Alongwiththathewillalsofindouthisexactneeds,desiredlevelofsatisfaction,lifestylepatternsetc.Salespersonnelalsoaskcertainquestionsthroughwhichhecomestoknowaboutthevariousfactorshewantstoknow.Heasksbothopenaswellasclosedendedquestions.Withthehelpofthesequestions,hecancometoknowthevariousreasonsduetowhichheisbuyingthatcar.ThesecanbePerformance,Safety,Comfort,DrivingPleasure,Appearanceetc.Theseprocesseseitherleadtocompletionofsalescallorsometimesunfortunatelyleadstounsuccessfulsalescallwhichcouldnotbecompeted.DEALINGWITHTHECOMPETITION43Projectsformba.blogspot.com

44. 44.Projectsformba.blogspot.comAUTOMOTIVEPoorfirmsignoretheircompetitorsaveragefirmscopytheircompetitorswinningfirmsleadtheircompetitorsPHILIPKOTLERGENERALATTACKSTRATEGYFRONTALATTACK:theattackermatchesitsopponentsproduct,advertising,priceanddistribution.InthisadvertisementBMWisusingfrontalattackstrategyagainstitsbiggestcompetitorAUDI44Projectsformba.blogspot.com

45. 45.Projectsformba.blogspot.comAUTOMOTIVEAUDIisreplyingtheBMWadvertisementAlongwithAUDIandBMW,SUBARUandBENTLEYareusingfrontalattackstrategyagainsteachothersproducts.DISTRIBUTIONCHANNELS45Projectsformba.blogspot.com

46. 46.Projectsformba.blogspot.comAUTOMOTIVESCORPIOSincetheScorpiowastargetedatanurbanclienteleitneededastrongerdistributionpresenceinMetrosandurbanareas.Hence,thedistributionchannelhadtofocusonprovidinganappealingexperienceformoderncarbuyersandonofferinginternationalstandardsofautoretail.TheScorpiowaslaunchedinaphasedmannerfirstin



MetrosMumbai,Delhi,Bangalore,Chennai.Twentycitieswereincludedoveraperiodof4monthsandwithinayear50citieswerecovered.Thisensuredattentiontomainmarketsandtoensurethatinitialproductionofthevehiclecouldmatchdemand.Dealershipswererevampedpriortolaunchinaparticularcity.TheMarketingDistributionChannelofToyotaKirloskarMotorIndia,theManufacturerofCorolla,isaSingleLevelChanneldepictedManufacturerTKMIndia,BangaloreToyotaFlagshipDealerConsumer46Projectsformba.blogspot.com

47. 47.Projectsformba.blogspot.comAUTOMOTIVEDISTRIBUTIONCHANNELOFHYUNDAISTOCKISTDEALERSSUBDEALERSBOOKINGAGENTSTHEVALUECHAINTheValueChainNetworkwithinStuxxisasignificantmediumformeasuringtheproductsqualityandperformance,fromInboundLogisticstoOperationstoOutboundLogisticstoMarketing/SalestoService.Asamanufacturingfirm,GMthatproducesStuxxmanufacturesthevehicleandthendistributesittoitsstorealloverUSA.Thewholeteamnetworkhasacommonpurposeinoperationandthatistoproduceandtosellittomakethecustomersmilingwhendisembarking.ThiscommonbeliefhasbroughtasuccessfulfeedbacktotheoverallsalesandbecauseprovidingtheserviceforsellingisconsideredanimportanttaskbytheemployeesatStuxx,ithasneverfailed.Storesaredesignedsothataccommodatingacustomerisluxuriousbutkeepinghis/herperceptiontoasnotexpensivesense.SWOTANALYSISOFMARUTIUDYOGLTD.47Projectsformba.blogspot.com

48. 48.Projectsformba.blogspot.comAUTOMOTIVESTRENGTHSWEAKNESSESOPPURTUNITIESTHREATSSTRENGTHSTheQualityAdvantageMarutiSuzukiownersexperiencefewerproblemswiththeirvehiclesthananyothercarmanufacturerinIndia(J.D.PowerIQSStudy2004).TheAltowaschosenNo.1inthepremiumcompactcarsegmentandtheEsteemintheentrylevelmidsizecarsegmentacross9parameters.TheJ.D.PowerAPEALStudy2004proclaimedtheWagonRno.1inthepremiumcompactcarsegmentandtheEsteemNo.1intheentrylevelmidsizecarsegment.Thisstudymeasuresownerintermsofdesign,content,layoutandperformanceofvehiclesacross8parameters.ABuyingExperiencelikeNoOtherMarutiSuzukihasasalesnetworkof307stateoftheartshowroomsacross189cities,withaworkforceofover6000trainedsalespersonneltoguideourcustomersinfindingtherightcar.OurhighsalesandcustomercarestandardsledustoachievetheNo.1nameplateintheJ.D.PowerSSIStudy2004.QualityServiceacross1036Cities48Projectsformba.blogspot.com

49. 49.Projectsformba.blogspot.comAUTOMOTIVEIntheJ.D.PowerCSIStudy2004,MarutiSuzukiscoredthehighestacrossall7parameters:leastproblemsexperiencedwithvehicleserviced,highestservicequality,bestinserviceexperience,bestservicedelivery,bestserviceadvisorexperience,mostuserfriendlyserviceandbestserviceinitiationexperience.92%ofMarutiSuzukiownersfeelthatworkgetsdonerightthefirsttimeduringservice.TheJ.D.PowerCSIstudy2004alsorevealsthat97%ofMarutiSuzukiownerswouldprobablyrecommendthesamemakeofvehicle,while90%ownerswouldprobablyrepurchasethesamemakeofvehicle.WEAKNESSESCommoditypriceriskMULscommoditypriceriskrelatestohighercostduetochangeinpriceofinputsuchasFerroalloys(steel),nonFerroalloys(aluminium),plasticandrubber,whichgointotheproductionofautomobile.Inordertomitigatetheserisks,thecompanycontinuestoattempttoenterintolongtermcontractsbasedonitsprojectionofpricesinavolatilecommoditymarket,whereyourcompanygivestopprioritytoensuringsmoothavailabilityofinputs,longtermcontractsarehelpful.Theyalsohelptominimisetheimpactofgrowinginputprice.Conversely,longtermcontractordilutethebenefitifany,ofadeclineininputprice.ExchangeRateRiskYourcompanyisexposedtotherisksassociatedwiththefluctuationinforeignexchangeratesmainlyonimportofcomponent&rawmaterialandexportofvehicles.Yourcompanyhasawellstructuredexchangeriskmanagementpolicy.Thecompanymanagesitsexchangeriskbyusingappropriatehedgeinstrumentdependingontheprevailingmarketconditionandtheviewonthecurrency.OPPURTUNITIES49Projectsformba.blogspot.com

50. 50.Projectsformba.blogspot.comAUTOMOTIVELeadingGrowthAsthemarketleader,yourcompanyledthegrowthinthepassengercarsectorlastyear.Marutissaleswentup30%to4,72,000units.This,asIsaidearlier,isthehighestannualsalesinceyourcompanybeganoperations20yearsago.Marutialsogainedmarketshare,mainlyonaccountofitsperformanceinthecompetitiveA2segmentwhereitincreaseditssharefrom40.3%in200203to47.7%in200304.Therecordsalesperformancewasreflectedinthefinancials.NetSales(excludingexcise)grewby31%toRs93,456million.OperatingProfitMarginincreasedfrom0.8%in200203to4.7%in200304.ProfitafterTaxjumped270%toRs5421million.YourcompanyiscommittedtomotorisingIndia.Towardsthisend,yourcompanyspartnershipwithStateBankofIndiaanditsAssociateBankstookorganisedfinancetosmalltownstoenablepeopletobuyMaruticars.THREATSInthecourseofitsbusiness,MULisexposedtoavarietyofmarketandotherrisksincludingtheeffectsofdemanddynamics,commodityprices,currencyexchangerates,interestrate,aswellasriskassociatedwithfinancialissues,hazardseventandspecificassetrisk.Whereverpossible,weusetheinstrumentofinsurancetomitigaterisk.BusinessriskThe



automotiveindustryisverycapitalintensive.Suchinvestmentrequiresacertainscaleofoperationtogenerateviablereturns.Thesescalesdependondemand.MarutiisstilldependingmainlyontheIndianmarket.Although200405wasyearofcontinuedgrowthfortheIndianeconomy,whetherthisgrowthmomentumwillcontinuehastobeseen.THREATSFROMCOMPETITORS50Projectsformba.blogspot.com

51. 51.Projectsformba.blogspot.comAUTOMOTIVETataMotorsLimitedInthe2004fiscalyear,TataMotorsgeneratedrevenuesof$3,542.2million(INR154,935.2million).Thecompanymadeanetprofitof$185million(INR8,103.4million)inthe2004fiscalyear.GeneralMotorsCorporationForthefiscalyearendedDecember2004,GMgeneratedrevenuesof$193,517million,anincreaseof4.3%fromthepreviousyear.Thecompanyreportedanetincomeof$2,805millionforfiscal2004,down26.6%fromthepreviousyear.PRODUCTLIFECYCLE51Projectsformba.blogspot.com

52. 52.Projectsformba.blogspot.comAUTOMOTIVE52Projectsformba.blogspot.com53. 53.Projectsformba.blogspot.comAUTOMOTIVEINTRODUCTIONThefeelingoffreedomandbeing

onewiththeNaturecomesonlyfromridingatwowheeler.Indianspreferthetwowheelersbecauseoftheirsmallmanageablesize,lowmaintenance,andpricingandeasyloanrepayments.Indianstreetsarefullofpeopleofallagegroupsridingatwowheeler.Motorizedtwowheelersareseenasasymbolofstatusbythepopulace.Thus,inIndia,wewouldseeswankyfourwheelsjostlingwithoureverreliableandsturdysteed:TwowheelersinIndiaarethesecondlargestproducerandmanufactureroftwowheelersintheworld.ItstandsnextonlytoJapanandChinaintermsofthenumberoftwowheelersproducedanddomesticsalesrespectively.Indiantwowheelerindustryhasgotspectaculargrowthinthelastfewyears.Indiantwowheelerindustryhadasmallbeginningintheearly50s.TheAutomobileProductsofIndia(API)startedmanufacturingscootersinthecountry.BikesareamajorsegmentofIndiantwowheelerindustry,theothertwobeingscootersandmopeds.Indiancompaniesareamongthelargesttwowheelermanufacturersintheworld.Intheinitialstages,thescootersegmentwasdominatedbyAPIitwaslaterovertakenbyBajajAuto.Althoughvariousgovernmentandprivateenterprisesenteredthefrayforscooters,theonlynewplayerthathaslastedtilltodayisLML.ThemotorcyclesegmentwasinitiallydominatedbyEnfield350ccbikesandEscorts175ccbike.Thetwowheelermarketwasopenedtoforeigncompetitioninthemid80s.AndthethenmarketleadersEscortsandEnfieldwerecaughtunawarebytheonslaughtofthe100ccbikesofthefourIndoJapanesejointventures.Withtheavailabilityoffuelefficientlowpowerbikes,demandswelled,resultinginHeroHondathentheonlyproduceroffourstrokebikes(100cccategory),gainingatop53Projectsformba.blogspot.com

54. 54.Projectsformba.blogspot.comAUTOMOTIVEslot.ThefirstJapanesemotorcycleswereintroducedintheearlyeighties.TVSSuzukiandHeroHondabroughtinthefirsttwostrokeandfourstrokeenginemotorcyclesrespectively.ThesetwoplayersinitiallystartedwithassemblyofCKDkits,andlateronprogressedtoindigenousmanufacturing.Inthe90sthemajorgrowthformotorcyclesegmentwasbroughtinbyJapanesemotorcycles,whichgrewatarateofnearly25%CAGRinthelastfiveyears.Theindustryhadasmoothrideinthe50s,60sand70swhentheGovernmentprohibitednewentriesandstrictlycontrolledcapacityexpansion.Theindustrysawasuddengrowthinthe80s.Theindustrywitnessedasteadygrowthof14%leadingtoapeakvolumeof1.9mnvehiclesin1990.In1990,theentireautomobileindustrysawadrasticfallindemand.Thisresultedinadeclineof15%in1991and8%in1992,resultinginaproductionlossof0.4mnvehicles.BarringHeroHonda,allthemajorproducerssufferedfromrecessioninFY93andFY94.HeroHondashowedamarginaldeclinein1992.Thereasonsforrecessioninthesectorweretheincessantriseinfuelprices,highinputcostsandreducedpurchasingpowerduetosignificantriseingeneralpricelevelandcreditcrunchinconsumerfinancing.Factorslikeincreasedproductionin1992,duetonewentrantscoupledwiththerecessionintheindustryresultedincompanyeitherreportinglossesorafallinprofits.54Projectsformba.blogspot.com

55. 55.Projectsformba.blogspot.comAUTOMOTIVEKeyplayersintheTwowheelerIndustryTherearemanytwowheelermanufacturersinIndia.Majorplayersinthe2wheelerindustryareHeroHondaMotorsLtd(HHML),BajajAutoLtd(BajajAuto)andTVSMotorCompanyLtd(TVS).55Projectsformba.blogspot.com

56. 56.Projectsformba.blogspot.comAUTOMOTIVESEGMENTATIONOFTWOWHEELERATwoWheelerSectorSubSegmentinginthethreeSegments.1.Motorcycle2.Scooter3.Mopeds56Projectsformba.blogspot.com

57. 57.Projectsformba.blogspot.comAUTOMOTIVESegmentwiseAnalysisofIndianTwoWheelerMarketSegmentDescriptionshareinShareinCAGR200102200607A1Scooterwith5%0%33.99%enginecapacitylessthan75ccA2Scooterwith5%10%32.9%enginecapacitybetween75125cc(Scooterette)57Projectsformba.blogspot.com

58. 58.Projectsformba.blogspot.comAUTOMOTIVEA3Scooterwith12%1%27.7%enginecapacitybetween125250ccB1Motorcycle62%66%14.9%withenginecapacitybetween75125ccB2



Motorcycle5%17%44.8%withenginecapacitybetween75125ccB3Motorcycle1%1%5.7%withenginecapacitybetween75125ccC1Mopeds10%5%2.7%GrowthProspectsandKeyDriversoftheIndianTwoWheelersIndustryThegrowthwitnessedbytheIndiantwowheelerindustryindicatesthegrowingdemandforlowcostpersonaltransportationsolutionsamongstthe300millionIndianmiddleclassconsumers.Despitethisspectaculargrowthrate,thetwowheelerpenetration(numberoftwowheelersper1000inhabitants)inIndiaremainslowerthanotherAsiancountries.Thisfactprovidesanopportunityforcontinuedgrowthinthemarket.IndiahasthelowestPenetrationoftwowheelersascomparedtocountrieslikeTaiwan,Thailand,Malaysia,Vietnam,IndonesiaandChina.Inthepresentscenario,growthinthetwowheelerIndustrywillbedrivenbyseveralfactors:RiseinIndiasYoungWorkingPopulation58Projectsformba.blogspot.com

59. 59.Projectsformba.blogspot.comAUTOMOTIVEWiththerisinglevelsofpercapitaincomeofpeople,theIndiantwowheelermarketoffersahugepotentialforGrowth.Thisgrowthisrelevantinthelightofthefactthat70percentofIndiaspopulationisbelowtheageof35Yearsand150millionpeoplewillbeaddedtotheworkingPopulationinthenextfiveyears.ThenumberofwomenintheurbanworkforceisalsoincreasingthiswillleadtotheGrowthofgearlessscooters.RiseofIndiasRuralEconomyandGrowthinMiddleIncomeHouseholdsThegrowthprospectsoftheIndianruraleconomyofferasignificantopportunityforthemotorcycleindustryinIndia.ThepenetrationofmotorcyclesamongstruralhouseholdswithincomelevelsgreaterthanUS$2,200perannumhasalreadyincreasedtoover50percent.ThecurrenttargetSegmentfortwowheelers,i.e.,householdsbelongingtotheIncomecategoryofUS$2,20012,000isexpectedtogrowataCAGRof10percent.GreaterAffordabilityofVehiclesThegrowthintwowheelersalesinIndiahasbeendrivenbyanincreaseinaffordabilityofthesevehicles.Ananalysisofthepricetrendsindicatesthatpriceshavemoreorlessstagnatedinthepast.Thishasbeenpartofthemarketingstrategyadoptedbythemanufacturerstogainvolume,aswellasconsciouseffortsadoptedtobringdowncosts.Theoperatingexpensesofleadingmanufacturershavedeclinedbyaround15percentinthelastfiveyears.Withgreateravenuesoffinancing,thecustomerscapacitytoownatwowheelerhasimproved.RapidProductIntroductionandShorterProductLifeCycleThelastfiveyearshavewitnessedasharpincreaseinnewproductlaunchesinthetwowheelerindustry.Itisestimatedthatcloseto50newproductshavebeen59Projectsformba.blogspot.com

60. 60.Projectsformba.blogspot.comAUTOMOTIVElaunchedbymanufacturersduringthisperiod,fillingupallpricepointsandtargetedatvariousconsumersegments.InadequatePublicTransportSystemsinmostUrbanAreasTheeconomicboomwitnessedinthecountryandtheincreasedmigrationtourbanareashaveincreasedthetrafficcongestioninIndiancitiesandworsenedtheexistinginfrastructurebottlenecks.Inadequateurbanplanninghasmeantthattransportsystemshavenotkeptpacewiththeeconomicboomandthegrowingurbanpopulation.Thishasincreasedthedependenceonpersonalmodesoftransportandthetwowheelersmarkethasbenefitedfromthisinfrastructuregap.ChallengesfacedbytheindustryDespitethehighgrowthachievedinthepastandthehighpotentialinthefuture,thetwowheelersmarketfacessomechallenges.RisingCustomerExpectationsThegrowthwitnessedbytheIndiantwowheelerindustryhasattractedanumberofnewentrantstothemarketanditisexpectedthattheIndianindustrywillbecomemorecompetitiveinthefuture.Theplethoraofproductsintroducedinthepasthasalsoraisedcustomerexpectationswithrespecttoreliability,styling,performanceandeconomy.EnvironmentalandSafetyConcernsTheincreasingdemandfortwowheelerswillneedtobemanagedtoaddressissuesrelatingtoovercrowdingofroads.Anotherproblemistheinsufficientinfrastructureforinspectiontoensureadherencetoemissionnorms.Astheindustrygrows,itisimportanttoregulatethesaleofusedtwowheelersinamoreorganisedmannerforwhichamechanismneedstobeevolved.Unregulatedsaleoftwowheelers,especiallyintheruralareas,arelikelytocreateissuesrelatedtoemissionsandsafetyofvehicles.60Projectsformba.blogspot.com

61. 61.Projectsformba.blogspot.comAUTOMOTIVECreationofDistributionInfrastructureLeadingcompaniesneedtoensurethatononehandtheybuildadequateinfrastructureintermsofdealershipsandservicingstationsintheurbanareasandontheotherensurethattheirdistributioninfrastructurealsoreachestheruralareasCOMPANYPROFILEHeroCyclesandHondaMotorCompanyofJapanlinkedtheirjointventureinIndiainApril1984,fewcouldhaveimaginedthatthetwowouldgoontocreatehistoryandbecomethesubjectofacasestudyatbusinessschools,internationally.ButthatstheHeroHondasaga.Inalittleovertwodecades,theworldslargestmanufacturerofbicyclesandthegloballeaderinmotorcycleshavecreatednotonlytheworldssinglelargestmotorcyclecompanybutalsothemostendearingandsuccessfuljointventureforHondaMotorCompanyworldwide.Thecompanyhas61Projectsformba.blogspot.com

62. 62.Projectsformba.blogspot.comAUTOMOTIVEsoldover15millionmotorcyclesandhasconsistentlygrownatdoubledigitssinceitsinceptionandtoday,everysecondmotorcyclesoldinthecountryisaHeroHonda.Intwodecades,HeroHondahasbuilttwoworldclassmanufacturingfacilitiesatDharuheraand



GurgaoninHaryanathatnowchurnoutover3millionbikesperyear.Inthisperiod,HeroHondahassetupover2400customertouchpoints,comprisingamixofdealers,servicecentresandstockistsacrossruralandurbanIndia.Today,HeroHondaisanamalgamofwinningnetworksandrelationshipswithinternalandexternalstakeholders,includingInvestors,Dealers,VendorsandEmployees.TheserelationshipshavehelpedthecompanyholdontothemantleofWorldNo.1foryearsinsuccession.HeroHondahasreliedon3RsReach,ResearchandReliabilityasitsbasicbuildingblocks.Usingfeedbackfromthemarket,afullyequippedR&Dcentrehasconsistentlycreatedbestpracticesindesigning,testingandharmonization,besidesplacingstrongemphasisonroadsafetyandridequality.ThisemphasishashelpedHeroHondabuildproductsthatareaheadoftheirtime.Inthe1980s,forexample,HeroHondabecamethefirstcompanyinIndiatoprovethatitwaspossibletodriveavehiclewithoutpollutingtheroads.Thecompanyintroducednewgenerationmotorcyclesthatsetindustrybenchmarksforfuelthriftandlowemission.AlegendaryFillitShutitForgetitCAMPAIGNcapturedtheimaginationofcommutersacrossIndia,andHeroHondasoldmillionsofbikespurelyonthecommitmentofincreasedmileage.HeroHondawasalsooneofIndiasfirstautomotivecompaniestogetclosetothecustomer.AsBrijmohanLallMunjal,theChairman,HeroHondaMotorssuccinctlyputsit,"WepioneeredIndiasmotorcycleindustry,anditsourresponsibilitynowtotaketheindustrytothenextlevel.Welldoallittakestoreachthere.KeyHighlights62Projectsformba.blogspot.com

63. 63.Projectsformba.blogspot.comAUTOMOTIVEHeroHondaenjoysasignificantbrandpremium.Itsaggressivepricingstrategytotakeonthecompetitionhashelpeditinvolumegrowth.VariantlaunchesineachofSplendorandPassionhashelpedinstemmingthelossinmarketshareinthefaceofthecompetition.HeroHondanowplanstolaunchtwonewmodelsinthe100ccsegmentinFY05onanewplatform.ThecompanyhasstartedlogginggoodvolumegrowthafterthelaunchofPassionPlusandSplendorPlusaswellastheCDDawn,whichhasalsorejuvenateditsproductrange.Volumesshouldimprovefurther,duetothebaseeffectandimprovedruralsentimentonthebackofhigherfarmincomes.AggressivecostcontrolsandsignificanteconomiesofscaleareexpectedtoaidHeroHondainretainingmargins.HeroHondawillcontinuetobeanattractivedividendyieldplayasthecompanycontinuestogeneratesignificantfreecashflowsasitscapitalrequirementsarelimitedMarketingMIXPRODUCTProductRangeandNewModelsTheCompanysproductrangeincludes"Splendour"whichisthelargestsellingmotorcyclebrandintheworldwithover6.9lakhsvehiclessoldin200001.Acumulativeover5millioncustomersaretherealfoundationofthecompanysstrength.TheidentityofHeroMotorsinthemarkethasbeenestablishedthroughtwoofitsleadinginternationalproductsHeroPuchandHeroWinner.WhenHeroMotorsenteredintoatechnicalcollaborationwithStyrDaimlerPuchofAustria,HeroPuchwasbornwhichmarkedanewchapterinthetwowheelerscenarioofthecountry.HeroPuch,theminimotorcycledesignedbyFerdinandPorschecombinedthepower(4.15bhp)andeaseofamotorcycleandat91km/hr,theeconomyofamoped.63Projectsformba.blogspot.com

64. 64.Projectsformba.blogspot.comAUTOMOTIVECASESTUDYOFHEROHONDAHUNKHeroHondanewBikehunklaunchedwithanewfeaturesafterthestudyofmarketresearchbycompanyAsureshotheadturner,theHunkcomeswithneverbeforefeaturesandlooks:Producthighlights:150ccEngine,[email protected]@evenatalowRPMof6500Unmatchedsuperaccelerationof060Kmphinflat5secondsNewGeneration"AdvancedTumbleFlowInduction"(ATFI)TechnologyenginewhichdeliversthebestbalanceofFuelefficiencyandPowerAdvancedMicroprocessorIgnitionSystem"AMI"withMultiMappingDigitalCDIalongwith"CarburettorcontrolledVariableIgnition"deliverstheoptimumPower,quickerthrottleresponseandFuelefficiencyUnique"AntiKickback"devicepreventsKickbackduringstartingconvenient,safeandeffortlesskickstart.PRICEFacedwithanuncomfortablescenarioofBajajAutoclosinginonHeroHondaMotorsinmonthlyunitsales,managingdirectorPawanKantMunjalsaidthecompanyhasputinplaceastrategytoretainitsleadershipintheRs33,000croretwowheelermarkets.Thatincludesdevelopingnewhighperformanceenginesin100cc,expandingcapacitytobeyond5millionunitsandreducingthepriceof100ccbikes,ifneeded.Asconfidentastheyareofupstagingus,weareconfidentofretainingourleadershipandgrowingourlead,MunjaltoldFEinanexclusiveinterview.64Projectsformba.blogspot.com

65. 65.Projectsformba.blogspot.comAUTOMOTIVEReiteratingthatunlikeBajaj,whichisexitingthe100ccsegment,MunjalsaidHeroHondaintendstostrengthenitsofferingsinthesegment.Hesaidthecompanyisdevelopingnewenginesthatwilldeliversuperiorperformanceinthe100ccbikesinfuture.TocounterBajajsmovetooffer125ccbikesatthepriceof100ccbikes,MunjalsaidHeroHondacouldreducepricesofits100ccbikestonullifyBajajsstrategy.BajajAutoplanstoexittheentrylevelmotorcyclemarketbyAugustSeptembernextyearandofferhighercapacitybikesinthe100ccpricerangeofRs34,000toRs42,000.Wehavedominatedthe100ccsegmentformanyyearsandwillcontinuetodominate.PossiblyitmaybethereasonforBajajAutoleavingthesegment,MunjaltoldFE.ThegapbetweenHero



HondaandBajajAutohasnarrowedfrom92,206inSeptember,2005to37,833inSeptember,2006PLACEDEALERNETWORKAtHeroessentiallytheyhaveacompletelycustomerdrivenapproach.Anationwidedealernetworkcomprisingofover3,500bicycledealers,350dealersformopedsand225franchiseholdersformotorcycles,ensuresconvenientaccesstotheGroupsproductsacrossthecountry.StrongdealercompanyrelationshipwithadeepsenseofbelongingtotheHerofraternity,theGroupsdealernetworkhascatalyzedgrowthandactedasastrongbridgebetweenthecustomersandtheGroup.SalesagentsfromHerotravelstoallthecornersofthecountry,visitingdealersandsendbackdailypostcardswithinformationonthestockpositionthatday,turnover,freshpurchases,anticipateddemandandalsocompetitoractionintheregion.65Projectsformba.blogspot.com

66. 66.Projectsformba.blogspot.comAUTOMOTIVETherearemorethan1000committeddealers&serviceoutletsspreadacrossthecountry.Theauthorizedworkshophavewelllaidoutstandardsformotorcycleservicingsupportedbyfullyequippedinfrastructureintermsofqualityprecisioninstruments,pneumatictools&ateamofhighlytrainedservicetechnicians.HavingyourmotorcycleservicedatanauthorizedworkshopensureshigheststandardsofservicequalityandreliabilityPROMOTIONHHMLisanorganization,whichisknownforitsinnovative&AggressiveMarketing.Rs.120croreswastheAnnualbudgetformarketforthefinancialyear20022003.Allthemediumsareusedextensively,beitprintormassmedialikeT.V&hoardings.HHMLalsopromotessportsinthecountry.ItisalsothesponsoroftheICCworldCup2003andhalfoftheIndianteamrepresentsHeroHonda.ThoseplayersareVirenderSehwag,MohammadKaif,YuvrajSingh,HarbhajanSingh,ZaheerKhanandSouravGangulyasBrandAmbassadors.SuperstarHrithikRoshanisalsoaBrandAmbassadorforHeroHondaCompany.Theywillendorsethecompanyproducts,attendcorporateandbrandeventsandhelppromoteits"WeCare"campaigncomprisingsafetyriding,environmentandfriendlinessAlso,advertisingisdoneatalocallevelbydealers,inwhichHHMLalsocontributestohelpdealerpromotethedealershipinthelocalarea.HHMLhasprintadsthatthecustomergetstoseealmosteverydayinnewspapers,magazines,etc.Thishasincreasedthebrandrecallbyasignificantnumber.TheyalsohavetheirbikesfeaturedinvariousTVprogramsliketopdriveonstarnewsandotherswhichactasastrongreference.66Projectsformba.blogspot.com

67. 67.Projectsformba.blogspot.comAUTOMOTIVEADVERTISINGSTRATEGYHeroHondaiscurrentlythenumberonecompanyintermsofsalesandhasbeendominantinthetwowheelersegmentsincethepastdecade.SincetheinceptionofheroHonda,thecompanyhasbeenusingtelevisionasamajorroleforitspublicity.ThoughheroHondawasdominantinsalesitlackedtheskillsofcreatingaspectacularadtillnow.Thoughithadavastrangeofmobikes,itsadvertisingstrategywasnotuptothemark.ForitspublicityheroHondahasbeenusingmanyfamouscelebritieslikeSauravGanguly,thecaptainofIndiancricketteam,HritikRoshanandotherfamouspersonalitiesastheirbrandambassadors.Thus,heroHondahasbeenspendinghugeamountsonitspublicity.67Projectsformba.blogspot.com

68. 68.Projectsformba.blogspot.comAUTOMOTIVE68Projectsformba.blogspot.com69. 69.PrintaddsProjectsformba.blogspot.comAUTOMOTIVEGlamour69Projectsformba.blogspot.com70. 70.Projectsformba.blogspot.comAUTOMOTIVESomeoftheEventsSponsoredDuringtheYears2000

NKPSalveChallengerTrophy.StardustHeroHondaMillenniumHonoursAward.MastersGolfChampionship.20thCinemaExpressAward.2002IndiaEnglandWomensCricketSeries.MastersGolfChampionship.SecondIndianTelevisionAcademyAward.21stCinemaExpressAward.FirstIndianTelevisionAcademyAward20038thCricketWorldCupinSouthAfrica.HEROHONDAROADIESToattractyounggenerationHeroHondasponsoredMTVRoadies.ItistheoneofthemostpopularShowamongyoungster.ALiverealityshowinwhichsomegroupofpeopletravelacrossthecountryonthebike.TheyrideHEROHONDAKARIZMA.Thisshowbecomethekeyfactorinpromotingthebikeka

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