Term paper

On

New product developWith reference to course, marketing management

(With reference to course, Marketing Management, MGT 514)

Submitted to: Submitted by:

Mr. GRISH TANEJA JAGPAL SINGH

Department of R1902B44

Management LSB, Section- R1902

LPU. Group- 2

DECLARATION

I, Jagpal singh, student of Lovely Professional

University have completed the Project on

Marketing Plan

OnRELION LUXURY CAR

The information given in this project is true to the best of my

knowledge.

Jagpal singh

ACKNOWLEDGEMENT

First of all I would like to thank the Lovely Professionaly University

and take the opportunity to do this project as a part of the M.B.A.

Many people have influenced the shape and content of this project, and

many supported me through it. I express my sincere gratitude to Lect.

Ms. Grish Taneja for assigning me a project on Marketing Plan, which

is an interesting and exhaustive subject.

He has been an inspiration and role model for this topic. His guidance

and active support has made it possible to complete the assignment.

I would also like to thank my friends who have helped and encouraged

me throughout the working of this project.

Last but not the least I would like to thank the Almighty for always

helping me.

JAGPAL SINGH

PREFACE

This project is undertaken to fulfil the project work component of the

M.B.A programme in 1st Semester. My project guide from L.P.U is

Lect. Mr Garish Taneja. This project reveals the activities undertaken

by a new firm in introducing a product (LUXURY CAR) into the

market with special references to the activities like :-

Introduction

Company Profile

Marketing mix

Situation analysis

Marketing strategies

Marketing mix (4 P’s),

Marketing Strategies

Marketing Environment

Public Relation

Positioning

Product Development

Launching campaign market

Branding, Labelling and Packaging

Consumer behavior

Conclusion.

REILON LUXURY CAR

INTRODUCTION

The steering system of the LUXURY CAR is an amazing invention. Every

beginning goes through a frustrating period when they learn how to stay

upright and steer. Every cyclist who has passed this learning period can

simply jump on a LUXURY CAR and ride it without giving the matter much

thought. This is because the steering system is designed to provide input

which helps to keep the rider upright. It is a simple, elegant system which

has been around since the days of the high-wheeler. Although a LUXURY

CAR rider certainly doesn't have to know how it works in order to

appreciate it, it also provides an interesting puzzle in mechanics. There is

quite a bit of depth to the problem, with books, articles, and graduate

theses about the subject, and ongoing debates with both clueful and

clueless participants. There are still aspects which seem to confuse

everybody who has anything to say about them. This article aims to present

some of the basics. The LUXURY CAR that I’ve introduced in the market is

called “REILON”.

COMPANY PROFILE

SIGMA Motor Company of INDIA at Mumbai in August in 2008, few

could have imagined that the two would go on to create history and

become the subject of a case study at business schools, internationally.

But that's the SIGMA MOTOR COMPANY saga. In a little over two

decades, the world's largest manufacturer of bicycles and the global leader

in motorcycles have created not only the world's single largest

automobile company. The company has sold over 15 million automobile

and has consistently grown at double digits since its inception and today,

every second motorcycle sold in the country is a SIGMA MOTOR

COMPANY.

In two decades, SIGMA MOTOR COMPANY has built two world-

class manufacturing facilities at Dharuhera and Gurgaon in Haryana that

now churn out over 3 million bikes per year. In this period, SIGMA MOTOR

COMPANY has set up over 2400 customer touch points, comprising a

mix of dealers, service centres and stockists across rural and urban India.

Today, SIGMA MOTOR COMPANY is an amalgam of winning networks

and relationships with internal and external stakeholders, including

Investors, Dealers, Vendors and Employees. These relationships have

helped the company hold on to the mantle of World No.1 for years in

succession.

SIGMA MOTOR COMPANY has relied on 3 R's-- Reach, Research and

Reliability as its basic building blocks. Using feedback from the market, a

fully-equipped R&D center has consistently created best practices in

designing, testing and harmonization, besides placing strong emphasis on

road safety and ride quality. This emphasis has helped SIGMA MOTOR

COMPANY build products that are ahead of their time.

In the 2008s, for example, SIGMA MOTOR COMPANY became the first

company in India to prove that it was possible to drive a vehicle without

polluting the roads. The company introduced new generation 4 whalers that

set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it

- Shut it - Forget it' CAMPAIGN captured the imagination of commuters

across India, and SIGMA MOTOR COMPANY sold millions of bikes purely

on the commitment of increased mileage.

SIGMA MOTOR COMPANY was also one of India 's first automotive

companies to get close to the customer. As Brijmohan Lall Munjal, the

Chairman, SIGMA MOTOR COMPANY Motors succinctly puts it, "We

pioneered India's automobiles industry, and it's our responsibility

now to take the industry to the next level. We'll do all it takes to reach

there.''

Key Highlights

SIGMA MOTOR COMPANY enjoys a significant brand premium. Its

aggressive pricing strategy to take on the competition has helped it in

volume growth.

Variant launches in each of Splendor and Passion has helped in

stemming the loss in market share in the face of the competition. SIGMA

MOTOR COMPANY now plans to launch two new models.

The company has started logging good volume growth after the launch

of RELION i10 and RELION Verma as well as the RELION Accent,

which has also rejuvenated its product range. Volumes should improve

further, due to the base effect and improved rural sentiment on the back

of higher farm incomes.

Aggressive cost controls and significant economies of scale are

expected to aid SIGMA MOTOR COMPANY in retaining margins.

SIGMA MOTOR COMPANY will continue to be an attractive dividend

yield play as the company continues to generate significant free cash

flows as its capital requirements are limited.

SIGMA MOTOR COMPANY'S MISSION

SIGMA MOTOR COMPANY’s mission is to strive for synergy between

technology, systems and human resources, to produce products and

services that meet the quality, performance and price aspirations of its

customers. At the same time maintain the highest standards of ethics and

social responsibilities.

This mission is what drives SIGMA MOTOR COMPANY to new heights in

excellence and helps the organization forge a unique and mutually

beneficial relationship with all its stake holders.

SIGMA MOTOR COMPANY'S MANDATE

SIGMA MOTOR COMPANY is a world leader because of its excellent

manpower, proven management, extensive dealer network, efficient supply

chain and world-class products with cutting edge technology from Honda

Motor Company, Japan. The teamwork and commitment are manifested in

the highest level of customer satisfaction, and this goes a long way towards

reinforcing its leadership status.

KEY POLICIES

AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY

At SIGMA MOTOR COMPANY, their goal is not only to sell us a bike, but

also to help us every step of the way in making our world a better place to

live in. Besides its will to provide a high-quality service to all of its

customers, SIGMA MOTOR COMPANY takes a stand as a socially

responsible enterprise respectful of its environment and respectful of the

important issues.

SIGMA MOTOR COMPANY has been strongly committed not only to

environmental conservation programmes but also expresses the

increasingly inseparable balance between the economic concerns and the

environmental and social issues faced by a business. A business must not

grow at the expense of mankind and man's future but rather must serve

mankind.

Environment Policy

They at SIGMA MOTOR COMPANY are committed to demonstrate

excellence in their environmental performance on a continual basis,

as an intrinsic element of their corporate philosophy.

To achieve this they commit ourselves to:

Integrate environmental attributes and cleaner production in all their

business processes and practices with specific consideration to

substitution of hazardous chemicals, where viable and strengthen the

greening of supply chain.

Continue product innovations to improve environmental compatibility.

Comply with all applicable environmental legislation and also

controlling their environmental discharges through the principles of

"alara" (as low as reasonably achievable).

Institutionalise resource conservation, in particular, in the areas of oil,

water, electrical energy, paints and chemicals.

Enhance environmental awareness of their employees and dealers /

vendors, while promoting their involvement in ensuring sound

environmental management.

Quality Policy

Excellence in quality is the core value of SIGMA MOTOR COMPANY's

philosophy.

They are committed at all levels to achieve high quality in whatever we do,

particularly in their products and services which will meet and exceed

customer's growing aspirations through:

Innovation in products, processes and services.

Continuous improvement in their total quality management systems.

Teamwork and responsibility.

Safety Policy

SIGMA MOTOR COMPANY is committed to safety and health of its

employees and other persons who may be affected by its operations. They

believe that the safe work practices lead to better business performance,

motivated workforce and higher productivity.

They will create a safety culture in the organization by:

Integrating safety and health matters in all their activities.

Ensuring compliance with all applicable legislative requirements.

Empowering employees to ensure safety in their respective work

places.

Promoting safety and health awareness amongst employees,

suppliers and contractors.

Continuous improvements in safety performance through precautions

besides participation and training of employees.

E xecutive S ummary

SIGMA MOTOR COMPANY Motors (India) Ltd. is the World's biggest

manufacturer of automobiles (by quantity). It set up a develop a new

technology, set up in 2008 in INDIA at Mumbai, to manufacture and sell

automobiles in India. SIGMA Motor Company brought in the technological

know-how, and Hero the India presence, and the local manufacturing

ability.

SIGMA MOTOR COMPANY Motors captured the market for motorcycles in

India, by offering an affordable Car, Luxury Car automobiles that was

extremely fuel efficient. They also established dealerships al over the

country even urban areas. The strategy of SIGMA MOTOR COMPANY

Motors was to capture the market by offering a superior product at an

affordable price, with excellent customer service(Right cost) . The

strategy has beensuccessful to date and SIGMA MOTOR COMPANY

Motors (India) Ltd is the dominant market leader with over 50% of market

share, ahead of closest competitors HONDA Motor and TATA Motor.

Recently new challenges have come up: November in , Honda Motors has

set up a 100% owned subsidiary, which produces 4 wheeler, and

represents a direct competitive threat. New entrants have entered the

market, offering cheap motorcycles from China. The market is showing

signs of maturing, with a reduction in business growth.

The company's response is a defend and fortify strategy: Honda Motors

has renewed the technology JV. and have widened their offering a wider

share of products. They have integrated vertically, reducing cost drivers in

the value chain. At the same toiken, they have increased service levels,

customer loyalty programs, and have started addressing niche-markets

("Just 4her")

The next step for the company, is to retain and expand shareholder value

by either expanding to new geographical areas and/or diversify in new

businesses.

S ituational A nalysis

SIGMA MOTOR COMPANY’s owner-director analyzed the siuation using

the 4C frame work. 4C stands for customer, competitor, company and

context.

Customer

The Company's success has been driven by customer centric policies and

teamwork to achieve progress and productivity. The philosophy of SIGMA

MOTOR COMPANY emphasizes the "Pursuit of Excellence" in designing

and manufacturing technologically and qualitatively superior products and

in creating economic value for its stakeholders. It takes care of its

customers through value based competitive pricing and good after sales

service.

SIGMA MOTOR COMPANY is now the leading 4-wheeler Company in

India in terms of net sales (sales less excise duty value, which was Rs

3171 crores. It is both the leading two wheeler manufacturer and sales

operation among SIGMA’S worldwide operations. The Company has

maintained excellent relationship with all stakeholders including its

collaborators.

Excellent marketing, finance and loan services, an efficient dealer network,

tactical promotion comprising of fuel conservation campaigns, mobile

workshops, safety driving courses and others, all placed SIGMA MOTOR

COMPANY in a league distinct from the conventional. The Company

focuses on providing "Value for Money" through its pricing strategies and

after sales services

Competitors

Unlike its competitors, SIGMA MOTOR COMPANY is yet to prove its

capabilities in terms of developing an indigenous product devoid of any

major support from the technological partner. This probably could have

been a critical factor in getting the timing wrong in terms of launching

models.

Even the drop in market share in the past year or so has not prompted

SIGMA MOTOR COMPANY to turn aggressive on model introductions.

Except for Ambition, there has been no major product launch since

RELION Accent November in 2001. This could probably be explained by

the huge dependence on SIGMA Motor Company for technological support.

Beside, in the executive segment, competition is getting stiffer with the

launch of models by competitors. HONDA Motor have launched Honda

City . TATA Motor also recently launched a model, Safari,Decor, in this

product category. SIGMA MOTOR COMPANY does not, however, have a

presence in this segment. Though it has the REILON Accent, REILON

Verma, this model has enjoyed limited success.

The entry of the much-awaited Honda Motorcycle and Scooters into the

motorcycle market is another factor that could have implications for existing

players, including SIGMA MOTOR COMPANY.

4 P’s of LUXURY CAR:

Product

Name- REILON is my product is the name of LUXURY CAR.

Product variety- Is it new / different / unusual / designed to fill an identified need. It is launched in 6 speed gears in rear tyre.

Warranty- REILON provides more than the competition in terms of guarantee. Warranty of the LUXURY CAR is of 3 years.

Product variety- REILON answers a problem customers may have or fulfils a need that no-one else can because of its stainless steel frame and comes in new and exiting designs.

Returns- It provides, or sells, the most important reason people buy from you?

Price

List price- The list price of the LUXURY CAR is Rs3000. It is less expensive, or more expensive than the competitors? Some people will not buy the cheapest, assuming that cheap means inferior.

Payment period- Its payment period varies from 1-3 years depending upon the liking of the customer.

Discount- Discount provided only 2 times in a year that is in June and January. Discount is vary from 10-20% depending upon the model.

Promotion

Advertising- Advertising is done by using various methods like media advertising, news paper advertising, magazines, etc.

Sales promotion- Sales promotion of REILON is done by offering gifts, short term discounts, and other items to attract customers.

Public relations- REILON is so far very good in maintaining, good relationship with its customers by providing after sales services, telling them about new innovation in the existing product.

Place

Locations- REILON provides a service, or product, that people have to have now - or at short notice. Show rooms of REILON are situated at main locations of the cities.

Inventory- REILON has a level of stock which means they can have it whenever they want it.

Coverage- REILON covers all local area very effectively. This is the most important factor, and then takes action; make sure they can reach us on time.

Channels

● Manufacturer to consumer (most direct)

● Manufacturer to wholesaler to retailer to consumer (traditional)

● Manufacturer to agent to wholesaler to retailer to consumer

● Manufacturer to agent to consumers

● Manufacturer to dealer to consumers

MARKETING ENVIRONMENT

We saw in the above described topic that using 4 p’s to narrow down to a specific marketing strategy takes a real understanding of what makes customer stick. REILON developing a competitive adLuxury Cartage and a strategy that offers customers superior value takes an understanding of the capabilities of your own company and of competitors. It takes this thinking further. As the Rubbermaid case shows, a marketing manager must analyze customer needs and choose marketing strategy variables within the framework of the marketing environment and how it is changing.A large number of forces shape the marketing environment. To help organize your thinking, it’s useful to classify the various forces as falling into either the:-

(1.) Direct market environment. (2.) The external market environment.

The direct environment of any generic market or product-market includes customers, the company, and competitors. The external market environment is broader. The variables of the external market environment fall into four major areas:-

1. Economic environment.

2. Technological environment.

3. Political and legal environment.

4. Cultural and social environment.

In the short run, the marketing manager doesn’t control the variables of the marketing environment. That’s why it’s sometimes useful to think of them as uncontrollable variables. On the other hand, the marketing manager can and should carefully consider the environmental variables when making decisions that can be controlled. For example, a manager may not be able to do anything to offset the strengths of a specific competitor, but the manager can select strategies that lead the firm into product-markets where that firm does not compete, or where competition in general is not as strong. We’ll see how they shape opportunities limiting some possibilities and making others more attractive. A company must decide where it’s going, or it may fall into the trap expressed so well by the quotation: “Having lost sight of our objective, we redoubled our efforts.” Company objectives should shape the direction and operation of the whole business. It is difficult to set objectives that really guide the present and future development of a company. The marketing manager should be heard when the company is setting objectives. But setting whole-company objectives within resource limits is ultimately the responsibility of top management. In this sense, whole-company objectives are usually outside the marketing manager’s “control.”It would be convenient if a company could set one objective such as making a profit and let that serve as the guide. Actually, however, setting objectives is much more complicated, which helps explain why it’s often done poorly or not done at all. The following three objectives provide a useful starting point for setting a firm’s objectives. They should be sought together because in the long run a failure in even one of the three areas can lead to total failure of the business. A business should:-

1. Engage in specific activities that will perform a socially and economically useful function.

2. Develop an organization to carry on the business and implement its strategies.

3. Earn enough profit to survive.

The first objective says that the company should do something useful for society. This isn’t just a “do-gooder” objective. Businesses can’t exist without the approval of consumers. If a firm’s activities appear to be contrary to the consumer “good.

MARKETING STRATERGY

Let me first define "Marketing". Majority of people understand "marketing" as "the activity done for PUSHING the product down the customer gullet." Such a definition would mainly include the Sales and Advertisement strategies and in trying to create a hype in the market about the product.

But according to me "Marketing" covers a lot more aspects of a business. These would be.

At Pre Production stage:-

● Knowledge of your customer

● Knowledge of your competitors

● "Targeting" the right customer segment

● Selecting the right "Positioning" for your product

Post Production Stage:-

● Collecting Customer Feedback

● Customer Relationship Management

● Managing the Distribution Network

● Managing Sales & Advertising

Even selecting the right "Pricing" is a part of marketing. So "Marketing" covers activities starting from preproduction and continues to postproduction activities.

Let me give you an example to explain:- Imagine you are sent to Zambia to manage the production and sales of a LUXURY CAR business. What are the problems that you could possibly face there..?? Being an Indian you would first face language problem. The market characteristics of that country would be totally alien to you. Imagine how difficult it would be to

interact with the workers and distributors. So what do you do..?? Simple, hire some local management talent. Let them run the business while you give the orders. Well, the only problem is that if your orders are wrong then everything below you is bound to go wrong.

It would take some time for them to understand Indians and the vast Indian market. And while planning LUXURY CAR, they obviously did not understand the Indian market. This document marks a major milestone in the development of a Strategic Marketing Plan for the LUXURY CAR office productivity.

The Plan looks at the current market for office productivity suites, at the major players in the field, and seeks to identify trends which will influence the market over the next five years. It looks at LUXURY CAR organization's place within the market now, and where it should aim to be by 2010.

The analysis looks at the strengths and weaknesses of the LUXURY CAR suite and of the Community, and how these should help influence the Community's response to opportunities and threats in the marketplace.

It also looks in detail at the features of LUXURY CAR and the benefits these deliver to customers. From this analysis, the Plan identifies a number of target markets whose needs are most closely matched by the benefits provided by “REILON”.

Finally, the Plan sets targets for penetration by LUXURY CAR into these target markets, and lists the main strategies which the Marketing Project will use to achieve these goals.

PUBLIC RELATIONS:-

Publicity is something that ’happens’ to a company and the result may be good or bad. Public relations (or PR) involve a sustained attempt to develop your reputation as a business by using the media to help create the image you desire. It is a way of keeping the business in your customer’s eyes. News or press releases can be distributed to the media to announce, for example, new product launches, a change in opening times or company successes. Articles can be distributed to trade journals or local newspapers, and sponsorship or charitable donations can help to position your business more prominently in the market place than your competitors.

Attendance at exhibitions and seminars can also help to promote the image of your business to a chosen target audience..

Reducing Traffic Accidents

(1) Trend and causes of traffic accidents

● Data by location, cause, mode; explain serious data problem.

● Preliminary analysis on correlation with vehicle numbersInfrastructure (km), drivers, law enforcement.

● International comparison

(2) Targets and actions

● Recommend to improve data consistency, and conduct cause analysis.

● Recommend a traffic safety roadmap, with realistic targets and concrete actions● Evaluate the proposal, “Reduce LUXURY CAR because they cause accidents basically on highways”

Policy Measures

The list of concrete policy measures will be worked out after this skeleton draft is agreed and drafting of chapters has begun. This is because directions of output, sales and exports are determined basically by market forces and no special policy measures are needed As for positive upgrading of industrial strength and necessary conditions for sound growth (solving urbanization, accidents, environment, and industrial- property violation), concrete measures are needed. Since most measures cover responsibilities of many ministries and agencies, they must be discussed among releLuxury Cart organizations. How to draft such inter-ministerial and inter-issue measures in this master plan remains to be decided.

POSITIONING

The author is an experienced brand consultant, who has many years’ experience in brand planning, marketing strategies and integration of communication planning and implementation.

● Once worked as senior managers in multinational and local companies in marketing consulting and integrating communications fields, experienced in strategic planning. He formerly worked in CNC and was responsible for brand management.

● Providing brand strategies, communication strategies and implementation and training service for many international and local clients.

● He constantly ponders and develops professional settlement methods in marketing, branding and communication fields, etc. Lots of articles have been published in professional media

The Surface Meanings of “Positioning”

The definition of “positioning” is accepted and used by people widely. However, if we do a sample survey of business managers and marketing personnel, and some people who are working in the field of marketing consulting services and the advertising industry for their understanding of "positioning ", I believe you will get a variety of answers. It seems that even many professional people, just simply accepted and memorized the term "positioning", and use it in some specific situations! Few people truly consider "positioning" as a tool and how to put it in to practice. If "positioning" is indeed effective, we at least need to understand the concept, master the methods, and put the theories into practice. We cannot just purely discuss about what "positioning" is and treat it as a fashionable term to enrich our vocabulary. So, let’s begin to understand "positioning"……

Different “positioning”

Positioning is to express the process. Any country, company, organization, individual, product and service could use this method to “occupy” a position in the minds of consumers.

Positioning of REILON is being done very effectively in the minds of customers. It is depth study of the target audience from the perspective of the audience themselves in order to choose information to distribute effectively and guarantee a way to provide consistent communication. This will create a method which results in consumers memorizing the company in a certain way. Using common language to express these ideas we have given it the following term; the “what to say” approach.

The principle of positioning created a new era. With this concept widely known and accepted by the people, marketing experts also tried to connect this principle with the existing marketing theory systems. Thus we have the classic "S-T-P" steps, S stands for segmentation; T stands for targeting and P stands for positioning which is something that occupies a certain place in the minds of the consumers with its unique design in supplies. Please note that "positioning" here has surpassed its original meaning, it is not just a means of communication, but also holds meaning of “unique design in supply." In other words, the meaning of "positioning" is how to design the products, how to price them and what special services should be provided. Obviously, providing uniqueness in supply has actually become the key work of marketing! Therefore, "positioning" changed from a means of communication to the core point of marketing. Marketing experts have completely accepted the term "positioning", admitted the positive influence of\adding "positioning" to Marketing Theories and have since enriched its meaning. Frankly speaking, from the perspective of marketing experts, "positioning" is not just matter of "what we should say"; it has become "what we should sell". When marketing experts promote the, "S-T-P" method, “strategic positioning", starts to become the focus of discussion.

PRODUCT DEVELOPMENT

In planning of LUXURY CAR, I must need to five product level. Each level adds more customer value, and the five constitutes a customer-value hierarchy.

1. The fundamental level is the core benefit: the service or benefits the customer is really buying.

2. At the second level, we must turn the core benefit into a basic product.

3. At the third level, we prepare an expected product, a set of attributes and conditions buyers normally expect when they purchase this product.

4. Fourth level, we prepare an augmented product that exceeds customer expect. In developing countries, brand positioning and competition take place at this level.

5. At the fifth level stands the potential product, which encompasses all the possible augmentations and transformations the product or offering might undergo in future.

Instead of it, for new product development we need specific skills and knowledge workers or employee. Some large companies often establish a new- product development headed by a manager who has substantial authority and access to top management. While I launch LUXURY CAR, I will have to establish a new product department. During product development process we have to pass through various stages. That is:-

1. Idea generation.

2. Idea screening.

3. Concept developments and testing.

4. Marketing strategy development.

5. Business analysis.

IDEA GENERATION: -

The new product development process starts with the search for ideas. New product ideas can come from interacting with various groups and using creativity-generation techniques. Employees throughout the company can be a source of ideas for improving production, products and services. Suppose I have searched my product LUXURY CAR now my next step will to search that, Is my decision is wrong or right ?how can I develop it? Technology is also important while developing a product. Good techniques help to easily achieve our goals. Techniques should not be very costly. We can know about our idea by interacting with others. We should take the opinion of the people. Many firms are increasingly going outside the company to tap external sources of new ideas. Customers needs and wants are the logical place to start the search. This strategy has helped create new products and companies.

IDEA SCREENING: -

In screening ideas, the company must avoid two types of errors. A DROP-error occurs when the company dismisses a good idea. A GO- error occurs when the company permits a poor idea to move into development and commercialization. An absolute product failure loses money: it sales cover all its variable costs and some of its fixed costs.

FOR EXAMPLE: - if I select to launch a LUXURY CAR, I will screen my ideas that: How much this idea is good or not? Is it is useful for kids or not? Are people appreciate it or not? We also check that the techniques which are using are effective or efficient. I will also check or screening my management staff also.

CONCEPT DEVELOPING AND TESTING: -

A product idea can be learned into several concepts. The first question is- Who will use the product? The LUXURY CAR can be aimed at children, teenagers, young or middle- aged adults or older adults. Secondly, what primary benefits should this product provide? Third when people will use LUXURY CAR?

Next the product concept becomes a brand concept. The brand positioning map helps the company to decide how much to charge? Concept testing means presenting the product concept, symbolically or physically, to target consumers and getting consumers and getting reactions. The more the tested concepts resemble the final product or experience, the more dependable concept testing is. Concept testing can help to avoid costly mistakes, but it may be especially challenging with radically different, new-to-the world products.

MARKETING STRATEGY DEVELOPMENT:-

To develop a LUXURY CAR we will develop a preliminary three-part strategy plan to introducing the new product into the market. The first part describes the target market size, structure, and behavior; planned product positioning; and sales, market share, and profit goal sought in the next few years.

The second part outlines the planned price, distribution strategy, and marketing budget for the next five years. The third part of the marketing strategy plan describes the long-run sales and profit goals and marketing-mix strategy over time.

BUSINESS ANALYSIS:-

After develops the product concept and strategies, we can evaluate the proposal’s business attractiveness. We need to prepare sales, cost, and profit projection to determine whether they satisfy company objectives. In this stage we have to estimate total sales. Total estimated sales are the sum of estimated first-time sales, replacement sales, and repeat sales. Sales-estimation they depends on whether the LUXURY CAR is purchased once, infrequently, or often. Then we have to estimated costs and profits also. For example- we expects to sell Rs. 5 lack in the first year. Behind this projection is a set of assumptions about the rate of market growth, our market share and the realized price.

DEVELOPMENT TO COMMERCIALIZATION:-

The next step represents a jump in investment that dwarfs the costs Incurred so far. We will determine whether the product idea can translate into a technically and commercially feasible product. If not, the accumulated project cost will be lost, except for any useful information gained in the process.

LAUNCHING COMPAIGN MARKET

After this, I will launch my product in the market, as we know that my product is LUXURY CAR that is only for business purpose and I have targeted the kids. So the main benefit of this LUXURY CAR “REILON” will be enjoyed by kids and I will launch it in the whole of India and that is because the population of India is huge in numbers. And LUXURY CAR is liked by most of the kids. Kids like to enjoy riding on the LUXURY CAR. LUXURY CAR has become extremely popular and is extensively used for riding in the evening time, used by kids to go to school, riding LUXURY CAR for their leisure time, LUXURY CAR is used for shopping, etc.

BRANDING,LABELLING,AND PACKAGING

Packaging

Requirements of good packaging:-

● Functional - effectively contain and protect the contents.

● Provide convenience during distribution, sale, opening, use, reuse, etc.

● Be environmentally responsible.

● Be cost effective.

● Appropriately designed for target market.

● Eye-catching (particularly for retail/consumer sales).

● Communicate attributes and recommended use of the product and package.

● Compliant with retailers' requirements’.

● Promotes image of enterprise.

● Distinguishable from competitors' products.

● Meet legal requirements for product and packaging.

● Point of difference in service and supply of product.

● For a perfect product, perfect color.

Forms of Packaging:-

● Specialty packaging — emphasizes the elegant character of the product.

● Packaging for double- use.

● Combination packaging — two or more products packaged in the same container.

● Kaleidoscopic packaging — packaging changes continually to reflect a series or particular theme.

● Packaging for immediate consumption — to be thrown away after use.

● Packaging for resale — packed, into appropriate quantities, for the retailer or wholesaler.

Branding

Brand

A brand is a name, term, design, symbol, or other feature that distinguishes products and services from competitive offerings. A brand represents the consumers' experience with an organization, product, or service.

A brand has also been defined as an identifiable entity that makes a specific promise of value.

Branding means creating reference of certain products in consumers mind.

Co-branding involves marketing activity involving two or more products.

Trademarks

Significance of a trademark:

● Distinguishes one company's goods from those of another

● Serves as advertisement for quality

● Protects both consumers and manufacturers

● Used in displays and advertising campaigns

CONSUMER BEHAVIOUR

Decision processes and acts of final household’s consumer associated with evaluating consuming and discarding products for personal consumption.

Consider the purchases an automobile. you generally will not consider different option until some event triggers a need, such a problem ending potentially expensive repair once this need has put you “on the market” ,you begin to ask your friend recommendation regarding and REILON Luxury car models after visiting several dealership you test drive several modals and finally decided on the particular model after picking up a new REILON Luxury car you have doubts on the way home wondering if

you can affords the monthly payment but then began to wonder if instead you should have purchase a more expensive but potentially more realable over the next 5 year the REILON Luxury car has several expected brake down that lead you to want to purchase a different brand but you have been very happy with the services of the local dealership and decided to again purchase your next RELION Luxury car there. In this particular case the following generic model of consumer decision man appear to hold.

The aim of marketing is to meet and satisfy target customers needs and wants better than competitors. Marketers are looking for emerging trends that suggest new marketing opportunities. Consumer Behaviour is the study of how individuals, groups and organisations select, buy, use, dispose of goods, services, ideas or experiences to satisfy their needs and wants. Marketers must fully understand both theory and reality of consumer behaviour. Consumer’s buying behaviour is influenced by cultural, social and personal factors. Purchase of ‘RELION Luxury Car’ is also influenced by certain factors given as below:-

Family- A consumer’s before purchasing a ‘RELION Luxury Car’ will refer their family members regarding which 4 wheeler auto is will be most effective.

Friends- Consumers might consult their friends or co-workers also about the best 4 wheeler auto.

Age- Different people belong to different age groups so a person who is adult might go for a 4 wheeler auto and can take powerfully engine.

THE BUYING DECISION PROCESS

The most important environment in which firms operate is their customer environment because the basic belief of marketing oriented company is-that the customer is the centre around which the business revolves. Therefore, marketing people need to understand the processes that their customers go through when making decision. The customer decision making process involves series of related and sequential stages of activities. The process begins with the discovery and recognition of an

unsatisfied need or want. It becomes a drive. Consumer begins search for information. This search gives rise to various alternatives and finally the purchase decision is made. The buyer evaluates the post purchase behaviour to know the level of satisfaction.

PROBLEM RECOGNITION

The buying process of “RELION Luxury Car” starts when the buyer recognizes a problem or need is identified by internal or external stimuli on the basis of need or urgency person tries to fulfil its need. Moreover, marketers need to identify the circumstances that trigger a particular need by gathering information from a number of consumers. A consumer would want a “RELION Luxury Car” as he or she might not be well.

INFORMATION SEARCH

Consumers often search for limited amounts of information. For 4 Wheeler auto, consumers often look at automobile showroom.

INFORMATION SOURCES

Consumer can get information about 4 wheeler motor van from various sources:-

PERSONAL – Family, friends, neighbours, acquaintances

COMMERCIAL - Advertisements, displays, hoardings

PUBLIC - Mass media , consumer rating organizations

EXPERIMENTAL - Handling, examining, using the product

In Case of 4 Wheeler auto marketers should provide the following information: -

1. Quality of ‘Luxury Car”

2. Brand name

3. Colour

4. Model

5. Price

Luxury Car is used in almost each and every people goes anywhere. Since different brands are available in the market consumer should know which 4 wheeler auto will give him maximum satisfaction.

DIFFERENTS BRANDS OF LUXURY CAR

►MARUTI UDYOG LIMITED

►GENERAL MOTORS INDIA

►MAHINDRA & MAHINDRA

►HYUNDAI

►HONDA

►TATA MOTORS

►SIGMA MOTOR COMPANY

CUSTOMER SEGMENTATION

DEMOGRAPHIC segmentation

In demographic segmentation, the market is divided into groups on the basis of variables like

Age – CAR are mostly for driving, so there main target is youth age people. Many new brands are introduced with special attractive salient feature to attract young consumers SIGMA MOTOR COMPANY. Launched different model and different colour to attract more customers.

Gender- Men and women have different model. They like different model and colour, so the van are made accordingly

Income-Income plays a major role in choosing a product. SIGMA MOTOR COMPONY are available at different prices like Luxuries Car product : -

REILON Santro Xing -SIGMA MOTOR COMPANY-Rs.2, 76,942 for Lower class

RELION i10 -SIGMA MOTOR COMPANY-Rs 3, 53,018 for Lower middle class

RELION Getz Prime -SIGMA MOTOR COMPANY-Rs. 3, 53,018 for Lower middle class

RELION Accent -SIGMA MOTOR COMPANY-Rs. 5, 24,652 for Middle middle class

RELION Verna -SIGMA MOTOR COMPANY-Rs.6, 80,745 for Middle middle class

RELION Sonata Embera -SIGMA MOTOR COMPANY-Rs-12, 98,786 for Highest middle class

● Social culture-- A group of individual with social rank based on such factor as occupation, education and wealth.

PSYCHOGRAPHIC SEGMENTATION

Psychographics is the science of using psychology and demographics to better understand consumers. Buyers are divided into different groups on the basis of personality traits like lifestyle and values.

● LIFESTYLE – Lifestyle of the people greatly affects the buying of the product. The people having more social values and those are viands minded will use more of the product? The upper class people will buy the expensive products like HONDA CITY, SCARPIO, SAFRI, DÉCOR e.t.c.

● PERSONALITY – Personality of the vary important affects the buying of the product. The people having more populating and those are have honour that person purchase this types of product like HONDA CITY, SAFARI, DÉCOR e.t.c

EVALUATION OF ALTERNATIVES

Marketers provide several processes and the most current models that is used by consumers in forming judgements is largely on a conscious and rational basis. This is the critical stage in the process of buying. The various steps that are involved in evaluation of alternatives are:--

A single product is used as a group of attributes, then features of each product is viewed and each best product is chosen that satisfy the consumer demand.

Secondly, the consumer is looking for certain benefits from a product solution.

Marketers should understand all the needs of consumers while manufacturing and marketing the product.

FOR EXAMPLE:--

What type of features does the consumers market want in ‘Luxury Car”?

Quality

Good & attractive look

Long lasting

Comfort

PURCHASE DECISION

Outcome of the evaluation develops likes and dislikes about alternative products or brands in consumer .In this step, consumer has an intention to buy the most preferred brand .Even if consumers form brand evaluations, and two general factors can intervene between the purchase decision and purchase intention.

(1.) The intensity of the other person’s negative attitude towards our preferred alternatives

(2.) Our motivation to comply with the other person’s wishes.

The consumer considers many factors before buying the LUXURY CAR. Consumers may perceive many types of risks in buying and consuming a product. The consumer will buy LUXURY CAR that satisfies his demand.

POST PURCHASE BEHAVIOUR

After the purchase of product consumer might be dissatisfied with the product. He may hear about other favourable brand and might be alert to information that supports his/her decision. If the performance falls short of expectations, the consumer is disappointed and if the performance meets expectations, the customer is satisfied. The large gap between expectations and performance, the greater the occurrence of dissatisfaction.

After buying a product, the consumer compares it with expectations and is either satisfied or dissatisfied. Satisfaction or dissatisfaction affects the following factors:-

● Consumer value perceptions

● Consumer communications

● Repeat purchase behavior

Many firms work to produce positive post purchase communications among consumers and contribute to relationship building between sellers and

buyers. The feelings of post purchase psychological tension or anxiety a consumer often experiences Firms often use ads or follow-up calls from salespeople in this post purchase stage to try to convince buyers that they made the right decision.

If after buying a RELION Luxury Car at reasonable price, performance falls short of his expectation, he will be dissatisfied. Customer might not like like model, stick might not be hard enough to long last. Customer might hear about other brands and might not be satisfied.

Satisfaction

After the sale the buyer will likely fill either satisfied or dissatisfied .if the buyer believes that he believes that he received more in exchange then what paid he might fill satisfied. If he believes that he received than what was paid, then he might dissatisfied buyer are not likely to return as customer and are not likely to send friends, relatives, and acquaintances. They are also more likely to be unhappy or even abusive when the product requires post – sale servicing, as when an Automobile needs warranty maintenance.

CONCLUSION

To launch any new product like RELION Luxury Car in the market it is very important to make marketing plan of that product. To know the current position of the companies that is producing the same products and what consumers demand from them. To maximize their profit and capturing more market share proper analysis of each and every stage involved in marketing plan is very important. If the company not making marketing plan before launching any new product then there are maximum chances of getting loss. A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, a marketing plan without a

sound strategic foundation is of little use. Behind the corporate objectives, which in themselves offer the main context for the marketing plan, will lay the 'corporate mission'; which in turn provides the context for these corporate objectives. At the last we can conclude that marketing plan is essential to made before launching any new product in the market.

REFERENCES

Kotler Philip, Marketing management, 2008, New Delhi: Oxford University Press.

http://www.business.headlinesindia.com/industries/LUXURY CAR.html

http://www.apfed.net/ki/database/doc/RISPO_GP142.pdf?PHPSESSID=c5650c2e35044ad029035cfbdef5eeaf

http://www.marketresearch.com/product/display.asp?productid=1558449&g=1

http://reports.manta.com/datamonitor/summary/0289-7468_ITM