HINDUSTAN MOTORS - AMBASSADOR

HINDUSTAN MOTORS - One of the original car manufacturers in India,

founded in 1942 by Mr. B. M. Birla.

Ambassador was a leader in car sales until the 1980s and before liberalization in

India.

AMBASSADOR - It has been in production since 1958 with few

modifications or changes and is based on the Morris Oxford III

model, first made by the Morris Motors Limited at Cowley,

Oxford in the United Kingdom from 1956 to 1959.

 Ambassador was considered as a definitive Indian car and was

fondly called "The king of Indian roads".

LEGACY

In 1980’s and mid 90’s a man getting out of a Ambassador was

easily assigned to a social status. He was either in public service or

a politician. All the government vehicles were Ambassadors for the

good part of pre-2000 era.

It was the first car to be manufactured in India, only automobile to ply Indian roads

for more than five decades, had carved a special niche for itself in the passenger car

segment.

Dependability, spaciousness and comfort factor made it the most preferred car for

Indians till 1980’s.

The Ambassador's time-tested, accommodating and practical characteristics made it a

truly Indianised car.

WHAT MADE IT CLICK

Ambassador was not up-to the mark in design and performance compared to

other segments of its competitors in the market.

Against the standard output of 8-10 cars per employee per annum, the plants

output was as low as 3 cars per employee.

 It just failed to re-invent, align with the audience and update its external

features.

 The weight of the car would probably be the same as any modern sedan but

lacks in evenly distributed weight and does not provide appealing contours and

drivable dimensions.

Limited advertising campaign by HM.

What Went Wrong

Product – The product itself had some major issues, which if resolved

would have saved the company from its doom.

Price – Since price is often considered a proxy for quality and vice-versa,

the company failed to judge the market and price its products competitively,

esp. against the new competitor, Maruti Udyog Ltd.

Promotion – The company did not advertise its USP correctly and thrived

on word-of-mouth publicity.

Place – Ambassador was never available as freely as its competitors’

products, with not more than one dealer in the sub-major cities.

Strategic Failures

Segmenting – The segmentation of consumers was not done, the same product

was being offered to everyone in the market.

Targeting – In the 80’s and 90’s targeting was done mainly towards government

institutions and cab companies and not general public. Later on many ambassadors

were used for cab purposes and moved out of consumer segment.

Positioning – Positioned as a government or commercial vehicle only.

Rattling sounds and rusting was a common problem faced by its

owners.

The fall of Ambassador from a leadership position to a marginal

player is a classic case of marketing myopia

STP Issues

REVIVAL – THE ROAD AHEAD

Marketing mix for revival

•Channel•Inventory•Logistics•Distribution

•Advertising •Sales force•Publicity•Sales promotion

•List Price•Bundling•Credit terms

•Functionality•Brand•Packaging•Services

Product Price

PlacePromotion

PRODUCT

FUNCTIONALITYBetter Performance

Better Fuel Economy

Reliability

FEATURES

Revamped, lavish Interiors

ABS, EPS, Power Windows, Air

Bags, Climate Control

CONCEPTTechnical advancements while retaining

the Old World Charm

AVAILABILITYEasy Availability through a widespread,

easily accessible dealer network

PRICE

LIST PRICE Aggressive pricing strategy keeping in mind the competition

BUNDLING Providing customers with accessories at a discounted price .

CREDIT TERMSCollaboration with financial institutions

to provide financing facility to the customers.

PLACE

CHANNEL Zero Level , One Level

INVENTORY Readily available spares, minimize waiting period if any

LOGISTICSTimely delivery of vehicles and spares from plant to showroom to customers

DISTRIBUTIONIncreased number of

dealerships, especially in the metro and Tier 2 cities

PROMOTION

ADVERTISING Print and electronic media including the Internet

SALES FORCE Build an efficient sales force, one that is incentive driven

PUBLICITYOrganize events such as group drives, owners’ get-togethers,

competitions etc

SALES PROMOTION Promote sales amongst the right target audience.

Strategies to Follow

TARGETING - Target niche customers in each segment of the market by launching price based models for different interest groups for e.g. Ambassador MINI, Ambassador Coupe, etc.

The company has to launch a new, aggressive ad campaign enabling it to cash in on the royal, old world charm that the ambassador was launched with.

Fuel variants keeping in mind the current automobile industry.

Other Measures Project home-ground advantages over foreign players.

The company should adopt advanced technology engines that provide

better performance and at the same time comply with the latest emission

norms.

Cash in on its pre-liberalization image of “Maharaja of the Road”.

Provide an option to the customers to get personalized cars a-la Rolls-

Royce.

Royal…Vintage…Undiscovered

Ambassador Wine..

"Who loves

not wine,

woman and

song,

remains a

fool his

whole life

long.“-

Martin Luther

We drink beer to party and champagne to celebrate, but we drink wine for the wine. It is an art form with its own vocabulary and rules of etiquette.

What name can better define Wine than Ambassador…

It’s Royal, It’s Vintage, It’s Smooth, It’s “THE Ambassador”

Ambassador Wine

From the best vineyards in the worldPacking, not only attractive but preserves the quality of wine.Best techniques, authentic pressing and fermenting vessels.As smooth and old as it can get.

Drinkers worldwide are spending half a trillion dollars a year on wine and spirits.

Global wine sales boom despite crisis Its no longer wine from New World.A New World is being born — mainly China and IndiaThe London-based International Wine and Spirit Research

group (IWSR) ranks China as the world’s seventh largest grape-based wine producer, and domestic production is increasing with government support for the new vineyards.

In India, consumption increased by 170% from 2004 to 2010, and total surface area under vines doubled between 2007 and 2010, with predicted expansion of another 56% by 2014, according to IWSR.

Why wine?

Product Price

Place Promotion

Marketing mix for Ambassador wine

Wine makes

every meal

an occasion,

every table

more

elegant,

every day

more

civilized.

Product – The Ambassador Wine

•To establish a

point of

difference in

the consumer’s

mind , that can

clearly connect

with the brand.

• Because its

regal and

Luxurious

product, prices

are set in a

higher range.

Price

•The Supremacy of

the Wine and for

that matter of the

Brand

“Ambassador” itself

says that the place

should be classic,

royal and

aristocrat.

•Apart from being

served at luxury

Hotels, restaurants

and dedicated

outlets, one can

enjoy it at Café

Ambassador.

Place

•Consumer

targeting is

essential and it

is also

important that

message

caters well.

So

Ambassador

wine targets

mostly

connoisseurs

keeping its

class and

elevated state

in mind.

Promotion

AD CAMPAIGN FOR “AMBASSADOR”

THANK YOU