Presentation on AutomobileIndustry

Evolution of Automobile Industry

Initial Years Manufacturing was licensed

•High Customs duty on import

•Steep excise duties & •Sales tax

•2 Major players: Premier Automobiles Ltd & Hindustan Motors

1980s

•Entry of MUL, better product, with government support

•Seller’s Market

•Long Waiting Periods

Early to mid 90s

•Seller’s market and long waiting periods

•Delicensing in 1993

•Removal of capacity restrictions

•Decrease in customs & excise

•Auto finance boom- more players (foreign banks & non banking companies, better schemes.

Mid 90s – Early 2000s

•Buyers market

•Increase in Indigenization

•Easy Auto finance

•Manufactures diversifying into related activities: finance lease, fleet management, insurance and used car market

• Following is the segmentation that how much each sector comprises of

whole Indian Automobile Industry.

SEGMENTATION OF AUTOMOBILE INDUSTRY

KEY PLAYERS 

Maruti TATAHyundai HondaFord GMSonalika International HMForce Toyota KirloskarM&M FiatSkoda AudiMercedes Benz BMWVolkswagon Mitshubishi

The Key Players…

Commercial vehicles

TATA Motors, Ashok Leyland, Swaraj Mazda,Mahindra & Mahindra ,Force motors, Eicher Motors

Passenger vehicle

TATA Motors, Maruti Udyog, Honda Motors, Toyata, Skoda, Mahindra & Mahindra, Daimler Chrysler, Hindustan Motors

Two Wheeler Hero Honda, Bajaj Auto, Honda Motors, TVS Motors, Yamaha , Kinetic Motors

Three Wheeler Bajaj Auto, Piaggio India

Passenger vehicle

MARUTI UDYOG LIMITED

• Maruti Suzuki India Limited is a publicly listed automaker in India.

• It was the first company in India to mass-produce and sell more than a million cars

• It is the market leader in India • Maruti Udyog was renamed Maruti Suzuki India

Limited. • Established in December 1983, Maruti Suzuki India

Ltd. has ushered a revolution in the Indian car industry

Leader Strategies

• Position Defense • Flank Defense • Preemptive Defense • Counteroffensive Defense • Mobile Defense • Contraction Defense

TATA MOTORS

• Tata Motors Limited is a multinational corporation headquartered in Mumbai, India. Part of the Tata Group

• Established in 1945, when the company began manufacturing locomotives, the company manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969.

• Tata Motors has a consolidated revenue of USD 16 billion after the acquisition of British automotive brands Jaguar and Landrover in 2008.

Challenger strategies

• Frontal Attack • Flank Attack • Encirclement Attack • Bypass Attack • Guerilla Warfare

Ford Motor Company

• The Ford Motor Company is an American multinational corporation based in Michigan a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903.

• The company's venture into the Indian automobile market dates back to 1926, but sadly it was shut down in 1954. Despite its failed attempt, the automaker once again entered the Indian automobile business in 1995, as a 50-50 joint venture with Mahindra & Mahindra (M&M).

• Three years thence, in 1998, Ford acquired 72% of the share in MFIL, thereby renaming the company as Ford India. The company made a debut in India with Escort, its first passenger car. With the advancement of technology and to adept with the rising demand, Ford replaced its Escort with Ford Ikon in 2001.

• After the magnanimous success of Ikon, the company added some more luxurious cars to its product line, including Fiesta, Fusion, Mondeo, Endeavour and Endeavour Thunder+. The other models include the Ford Zetec (MIFL) and Ford Escorts (MIFL).

FOLLOWER STRATEGIES

• Counterfeiter • Cloner • Imitator • Adaptor

Nicher

• Luxury car brands such as AUDI, BMW, LEXUS…

• Target small markets

• Low share of market but highly profitable.

• They achieve high margin unlike the high volume which is done by a mass marketer.

• Verizon• AT & T• Sprint• T- mobile• U.S cellular• Cricket• Virgin mobile• Boost mobile• Tracfone• Powernet mobile

• Bharti Airtel• 2. Vodafone Essar• 3. Reliance Infocom (ADAG)• 4. BSNL (Bharat Sanchar Nigam Ltd.)• 5. Tata Indicom• 6. Idea Cellular• 7. Aircel• 8. Spice Telecom• 9. BPL

• Major Players • There are three types of players in telecom services: • • -State owned companies (BSNL and MTNL) • • -Private Indian owned companies (Reliance

Infocomm, Tata Teleservices,) • • -Foreign invested companies (Hutchison-Essar,

Bharti Tele-Ventures, • Escotel, Idea Cellular, BPL Mobile, Spice

Communications)

Bharti 24.7%

r.Com 17.7

Vodafone 17.6

BSNL 13.3

Idea 11

others 10

Business Process Management Process Innovations and Continuous Improvement through

People Involvement Problem Investigation by "Fact Based - Root Cause Analysis“

CUSTOMER-DEFINED BUSINESS PROCESSES :

Based on Customer Specifications, AirTel have webbed many business processes on the

following concepts:

Delivery time Turn around time Lead-time Time to market Other performance indicators

• Not easy to define market challenger in mobile services. We can consider the vodafone, r.com, tata indicom as market challenger

• Strategies used by them are• Vodafone – used and introduced zoozoo’s to

increase market share• Tata indicom is known for providing services

like caller tunes, i.e value added services

• Spice and uninor can be considered as the market follower

• Uninor (a partnership between the Delhi-based Unitech Wireless and Telenor from Norway)

• Our marketing strategy is not price-led. The per-second billing (which many operators are offering) is not for those who use the phone a lot. We have launched two plans - the ‘Talk more' plan and a daily rental plan – which give more value for users who use the phone a lot.

• The more you talk, the lower the price gets. We are looking to empower people by giving value-for-money service and this is what we have tried to communicate through our promotional campaign

• As the nth entrant in the telecom market, the brand faces a challenge to distinguish itself from the rest. But the Uninor launch campaign attracts eyeballs and creates for top of mind awareness for the brand.

• Consumers find the Uninor campaign intriguing but confusing. Ms Nandini Sundar, a 25-year-old IT executive, says, although the campaign is different, it's not very forthcoming in what it is trying to convey.

• “I didn't even know it was a telecom service, till I read the fine print right at the bottom.” She, however, says the brand, which can be seen literally everywhere, does raise one's curiosity to know more.