Segmentation of Indian Car Market

By Group I (Gauhati University, D.B.A.) MBA II Sem

Kumari Neelam (01) Mithusmita Kalita (13) Himashree Dutta (14) Hemangi Patgiri (26) Debapriya Saha (27) Priyanka Mahanta (33)

OBJECTIVES

•To study the growth factors of the company•To study the different operators of the market•The marketing mix of the product•To study the suitable segment to launch the car.•To revive and launch an old brand (Ambassador) as a

new product.

Introduction

•Emerging as one of the world’s fastest growing passenger car markets.

•Constitutes around 80% automobiles sales.•Rising per capita income and changing demographic

distribution are conducive for growth.•Constitutes almost 70% of potential buyers.•Very competitive with almost every global

manufacturer being present in the country.

CLASSIFICATION OF CAR SEGMENTS(according to size)I) MINI : Maruti –800,Tata NANO

II) COMPACT : Hyundai SANTRO / i-10 / GETZ

III) MID SIZE : Hyundai ACCENT , Maruti ESTEEM

IV) EXECUTIVE : Skoda OCTAVIA, Toyota COROLLA

V) PREMIUM & LUXURY : Mercedes BENZ C-Class, BMW 3 Series.

Key Players in the Indian Auto Industry

Market Share in the Current Scenario

According to SIAM, the Society of Indian Automobile Manufacturers of India, the market share of major passenger vehicle manufacturers are:

Criteria for Market Segmentation

Contd.

TargetingDEMOGRAPHIC : • Income Group : > Rs 15,00,000 /-pa• Age Group : > 30 yrs• Older Married with / without children

GEOGRAPHIC : • Metros & Tier I Cities

BEHAVIORAL : • Primary Benefit : Quality• Attitude towards product : Enthusiastic

PSYCHOGRAPHIC : • Inclination towards COMFORT, STYLE, POWER• Urban A1 & A2• Westernized Lifestyle• Ambitious Personality

Product

Service

People / Personnel

Channel

Image

Main focus on QUALITY & LUXURY

Highly CUSTOMIZED

Engine Variants (cc, bhp)

Engine Type (Petrol, Diesel, CNG)

Interiors & Finish

Colors & Exteriors

Accessories & Gadgets

Seating

Combination of COMFORT & STYLE

AT HOME SERVICE

•Home Pick-Up & Delivery After Service

•Service Stations in 15 cities (Metros & Tier I)

•Continued Customization

•Spare parts at a phone call !

Company Owned SHOWROOMS in 15 Targeted Cities.

PROMOTIONAL CALLS to the targeted customers.

DIAL FOR DETAILS ( Customer can call / email Ambassador to send a salesperson for Details & Customization Demo)

Qualities to be inculcated in Personnel at all levels:

•Courtesy•Reliability•Responsiveness•Communication•Competence•Credibility

Planned Differentiation by

• EXCLUSIVITY

• QUALITY

• LUXURY

• AUTHORITY

• AFFLUENCE

AMBASSADOR CR

EXCLUSIVE PRESTIGE COMFORT

CUSTOMISATION

QUALITY

LUXURY

AUTHORITY

AFFLUENCE

STYLE

1.Mercedes-Benz S-Class (81 Lacs)

2.Audi A-8 (73-87 Lacs)

3.BMW 6 & 7 Series (73-85 Lacs)

PRICE – QUALITYHIGH PRICE – LOW QUALITY

HIGH PRICE - HIGH QUALITY

MERCEDES BENZS-CLASSAUDI A-8BMW 6 & 7 SERIESAMBASSADOR CR

LOW PRICE – LOW QUALITY

LOW PRICE - HIGH QUALITY

CUSTOMIZATION – PRICEHIGH CUSTOMISATION – LOW PRICE

HIGH CUSTOMISATION – HIGH PRICEMERCEDES BENZS-CLASSAUDI A-8BMW 6 & 7 SERIESAMBASSADOR CR

LOW CUSTOMISATION – LOW PRICE

LOW CUSTOMISATION - HIGH PRICE

Product Scope : Long-Term

Product attributes :Sophisticated, Customized to customer use, Stylish, High Price, Excellent after-sales service.

Quality : High

Uses : To make a statement / a status symbol, a comfortable, luxurious mode of transportation.

Users :Elite, Power Hungry, Status conscious segment

Country of origin :India

Product Variety –Customized Cars

Quality –Superior performance and conformance quality

Features – Gadgets like GPS device, night vision will be provided

Brand Name –Ambassador CR

Services – HM already have service centres across the country

List Price –Start from Rs 75 lacs.

Payment Period –

• Custom made finance schemes & payment periods according to customer requirements.

Credit Terms –

• Credit will be given to government authorities on bulk order.

Sales Promotion –Incentive to Sales executives.

Advertising –In auto shows and in auto magazines.

Direct Marketing

Public Relation- Sponsoring and organizing corporate events.

•Direct Marketing.

• Inventory –Made on order. Hence no inventory.

• Locations –In India as well as exported.

Conclusion

Since the company is entering into an already existing car market, the company would go for the revival of Ambassador, an established brand as the strategy. The company is entering into the luxury market, which has the maximum growth potential in the Indian car market.