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Final 4 wheeler 1 Final 4 wheeler 1 Document Transcript

  • A ←PROJECT REPORT ←ON←“MARKETING RESEARCH FOR IGNITE CAR”. ← ←SUBMITTED TO: Mrs. Shailaja Manocha ← ← ← ←2008-2010 ← QuickTimeª and a ← decompressor are needed to see this picture. ← ← ← ← ← ←SUBMITTED ←BY ←Abhishek Raj(1B) ←Amandeep Kaur(3B) ←Amber Saxena(4B) ←Chirag chopra(14B) ←Kumar Abhishek(24B) ←Naveen Kumar(28B) ←Subhashish Dutta(45B) ←Sanjib Mahapatra(6A-RBA) ← 1
  • STUDENT DECLARATIONWe here by declare that the project report entitled “MARKETING RESEARCHFOR RIPPLE CAR”. Submitted in partial fulfillment of the requirements for thePost Graduate Program Business Mangement is our original work and notsubmitted for the award of any degree, diploma, fellowship, or any othersimilar title or prizes.PLACE: NEW DELHIDATE: 2
  • ACKNOWLEDGEMENTWe are sincerely thankful to Mrs. Shailaja Manocha (Faculty of MarketingManagement) for guiding us throughout the project. This Research work thatshe gave, helped us to understand how things are done in real world and wehave learnt a lot from this fieldwork.We would also like to thank all the people who filled the questionnairesthrough which we got essential data, which helped us .Last but not the least we would like to thank each and everybody whosupported us and gave us his or her valuable suggestion for the completion ofthis project. 3
  • Table of contentsSerial no Title Page No1. Executive summary 52. Introduction 63. Objective of survey 114. Research methodology 125. Analysis 146. Finding 287. Conclusion 298. Questionnaire 309. Excel sheet 3210. Bibliography 33 4
  • EXECUTIVE SUMMARYPebble is launching a new low-cost car, the Ripple, in Indian markets.We will compete with existing companies by offering a vehicle withbetter amenities while keeping the price affordable. We are targeting therapidly growing middle class customers who desire a slightly better low-cost car as well as businesses who desire to add low-cost cars to theircurrent fleets.Our main objective is to capture between 6-7% of the Indian marketshare with first year sales of 100,000 cars. Our financial objective is toachieve $700 million in revenue the first year and to keep losses at lessthan $150 million. We foresee breaking even midway through oursecond year of production.PEBBLE is a pioneer automobile company in India, which has alreadyintroduced many 4 wheelers and now it is introducing a new car, which doesnot require any conventional energy source, which is a great innovation intechnological world. Pebble got this name from the vision that a small pebblecan generate big waves in the world of technology and innovation similar to apebble thrown in a sea or any source of water.The car name is ripple because this is the first wave of technologicalinnovation generated by pebble.PEBBLE will launch its first car in India as a pilot car after that it will expand itsbusiness in all over world.Keys to Success • Precisely good technological automobiles. • Follow through on all commitments, both to vendors and customers. • Strict financial controls.MissionIt is Pebble’s mission to create the finest quality automobiles in the market. Itwill emphasize good quality, comfort and a realistic safety margin for all of ourproducts.SITUATIONAL ANALYSIS 5
  • Pebble was founded 1 year ago by five business partners with automotiveindustry experience. They are about to enter the exciting low-cost car marketin India, where competition is starting to heat up. The size and buying power of the Indian middle class is rapidly increasing,but price still remains the main driver when purchasing a vehicle.Approximately 1.5 million new small cars are sold in India each year and Tata,India’s leading vehicle maker, is looking to capture a sizable chunk of thatmarket with their recent introduction of the Tata Nano . . . a sub-compact carcosting only $2,500. To position ourselves successfully in this market, Pebble is targetingcustomers who may want a low-cost car that is a notch above the Tata Nano.We also plan to offer optional features that are highly valued by potentialcustomers.MARKET SUMMARYPebble market consists of customers who are looking for a low-cost car butwant something a little better than what the price leader offers. It alsoconsists of customers looking for options that allow them to customize theirvehicle to some degree. In addition, we will be marketing to businesseslooking to add low-cost cars to their fleets and concentrating on filling allorders in a timely manner. Low-cost car customers currently have very little to choose from as far asoptions go. We will offer our customers the standard options for low-cost cars(color, A/C, etc.), but intend to differentiate ourselves by offering optionsabove and beyond the norm options such as sunroofs, air bags and MP3players.TARGET SEGMENT CUSTOMER NEED BENEFIT Middle  Safety  Airbags, tubeless Class  Space tires family  economic  Seating for 5, large trunk space 6
  • Bachelors  To be in style  Spoiler, sunroof,  High milage multiple color  Economic schemes  MP3 player Business  Safety  Airbags, tubeless  Desirable Rental tires Car  Spoiler, sunroof  Fuel Efficient  High kpl, LPG, CNG optionsSWOT ANALYSISSTRENGTHS1.Multiple options2.Innovative design3.Extensive customer supportWEAKNESSES1.Lack of brand awareness2.Lack of foreign marketOPPORTUNITIES1.Increasing demand for low-cost cars2.Economy and the price of oilTHREATS1.Increased competition2.Chinese manufacturersCOMPETITIONEven though gas prices have dropped lately, the fact is the world is looking foralternative fuels and the market is wanting to find more efficient ways totravel. Getting a smaller car is one option, because smaller cars are moreefficient than big ones. In fact, the future of the automobile may be the smallcar.Main competitors are:TATA NANOMARUTIHYUNDAI SANTRO 7
  • PRODUCT OFFERINGSPebble offers following standard features in Ripple:  Child safety rear door lock  Remote fuel door opener system  Remote trunk opener  Power locks  Rear double folding seat  Overhead lamp  Front air bags  Front and rear speakers  Choice of standard paint  Ashtray schemes  A/C  Cell phone charger  Heater  Tubeless tires  Power steering  Seating for 5 people  Power windows  Large trunk spaceOptions include:  Sun roof  Spoiler  Sport paint scheme  Premium wheel  MP3 player  Premium speakers  Satellite Radio  LPG/CNG kitsOBJECTIVE:Our main objective is to capture between 6 and 7% of the Indian market sharewith first year sales of 100,000 cars. Our financial objective is to achieve$700 million in revenue the first year and to keep losses at less than $150million. We foresee breaking even midway through our second year ofproduction. In our second or third year, our objective will then be to enter the Foreignmarkets if we succeed. With current safety, fuel efficiency and emissionsstandards, we would try to upgrades with additional air-bags, side-impactbeams, catalytic convertors and better fuel efficiency which would add $1000to the cost of the vehicle. 8
  • Our main marketing objective is to focus on the customers wants and needsand, at the same time, offer a variety of options that some customers maywant. This will allow us to effectively influence and persuade the customer topurchase from us. The reason we decided to launch a low-cost car is the factthat entire families, sometimes four people, would ride on a bike together.The Indian market is rapidly changing to where people can afford a car andspend time together. It virtually frees them from a world of overcrowdedtrains, precarious rickshaws, taxis they can’t afford and packed buses. We want to provide a “Car 4 All”, which is affordable and meet safetyrequirements, emission norms and fuel efficiency standards. Every personwho has a desire for a vehicle will look to Ripple to fulfill this need.TARGET MARKETS:The low-cost car is clearly intended for the masses. It is huge market for thefirst-time car buyer in India despite the increasing number of cars in the urbanand semi-urban areas.Primary Consumer Market: Our primary target market is the 4-person familywho cannot afford a car today. We foresee a large rural demand for this car –i.e. a whole new market will be opened and a productivity and lifestyleimprovement will be created that will benefit the Indian economy andultimately the global economy.Secondary Consumer Market: Our secondary target market is consumer whomay have already purchased their first car and is looking for a similar low-costcar that they can add more features in order to make it the car of their choice.Primary Business Market: Our primary business market consists of the manyrental car companies in India. It has various standard safety options alongwith its attractive styling, which make it appealing as a rental car. 9
  • ←SEGMENTATION←←1.BACHELORS←←Geographic Segmentation←Region: - India←Density: - Urban, Semi-urban←Demographic segmentation←Age: - 22yrs+←Income: - Rs25000+←←Psychographic Segmentation←Life style-outdoor oriented←←Behavioral Segmentation←Occasions-Regular←Benefit: - milage, stylish,Economic←←2.FAMILY←Geographic Segmentation←Region: - India←Density: - Urban, Semi-urban←Demographic segmentation←Income: - middle, upper middle←Family: Full nest1,2,3SEC-A1, A2, B1,B2,C←Psychographic Segmentation←Life style-outdoor oriented←←Behavioral SegmentationOccasions-Regular←Benefit: - Quality,safety,spacious and economic←←3.BUSINESS←Geographic Segmentation←Region: - India←Density: - Urban, Semi-urban←Demographic segmentation←Income: - middle 10
  • ←Psychographic Segmentation←SEC-A1,A2,B1,B2,c←←Behavioral Segmentation←Benefit: - Economic ,Fuel- efficientPOSITIONING:When you hear about the RIPPLE, the obvious temptation is to assumesomething like “Cheap Thrill”, but we would like to position it as a “Car 4 All”.So, this car can be the fulfillment of a dream of all great Indian classes.Though it is cheap, it is no less than a Ferrari for the people who will buy it,because it gives them membership to a exclusive club.The Ripple seems as smart, hi-tech and intelligent.It isn’t just about a car, but about a way of life i.e. a greater friendliness withthe environment around us, less emissions, more space, clean, simple design.So it is environment friendly car.It has benefit positioning.PRODUCT LEVELS:Core benefit: TransportationBasic product: a small carExpected product: a car with good quality ,service, stylish, milage and economicAugmented product: hybrid car with double coil dynamo.CUSTOMER PERCEIVED VALUETotal customer benefit- Total customer cost-Product benefit-H Monetary cost-LService benefit-M Time cost-MPersonnel benefit-H Energy cost-MImage benefit-M Psychological cost-MCPV>1STRATEGIES:4 P’sPRODUCTThe Ripple will be sold with a 160,000 km warranty. We will introduceadditional models in our third year of operation after we have raisedawareness of our brand and streamlined the manufacturing process. 11
  • PRICING The Ripple will be priced at an average of Rs.2.5 Lacs per car. We intendto make the Ripple our cheapest model so that when we expand our line ofcars.We feel that this price will be best to afford for such good features.Weuse value pricing.DISTRIBUTION: We plan to set up private dealerships throughout the market (at least one ineach district area). These dealerships would be given a 4-5% commission onsales and be responsible for all maintenance service. We also plan to set up an extensive web site where customers can designtheir own Ripple and give an order so that they can take in to the nearestdealership.1-level channel MANUFACTURER DEALER CUSTOMERMARKETING COMMUNICATIONS:We will use various methods of communication to differentiate our productfrom our competitors. We plan to use billboards and a word-of-mouthcampaign before we begin production to generate buzz. Also pre-production,we will host a contest on our website to see who can build the best Ripple. We plan on using the media partner advertising agency to help us indesigning magazine and internet ads that convey the value and uniquenessof the Ripple.ACTION PROGRAMS:The Ripple will be launched in July of 2010. Our first six months of actionprograms in 2010 follows: 12
  • April – We will launch a billboard campaign that will signal the arrival of a newvehicle without giving any of the details away. We will also launch a word-of-mouth campaign on several highly used automotive blogs. These strategieswill help create buzz before we begin production.May – We will attend auto trade shows and unveil the Ripple at the largestvenue possible.June – We will begin our advertising campaign on newspapers, magazinesand online. We will host a “Lets Build The Best Ripple” contest on ourwebsite. We will also distribute displays and signage to our dealerships.July: We will roll out Ripple to our dealerships for retail sale. We will distributecustomer satisfaction surveys after every sale.August – We will set up booths and sponsor contests all over India that willencourage tto compete for the most sales.August – We will work with the media agency to develop new advertisementsthat will refresh our advertising campaign. We will analyze results from thecustomer satisfaction surveys and make necessary adjustment.MARKET RESEARCH:RESEARCH METHODOLOGYTo carry out this research study the following methodologies have been adopted:The study is based on both primary research and secondary research considering thetype and nature of data required for the study.PRIMARY RESEARCHTo carry out a Primary research (manual research) the following have been carriedout.QUANTATIVE RESEARCHTo collect the primary data from various targets segment, a set of questionnaire havebeen developed.Before carrying out a comprehensive quantitative research, a pilot survey for testingof all type of questionnaire have been carried out.After successful of pilot survey, a comprehensive manual survey has been carried outin all desired location. A set of all type of questionnaire is enclosed as Annexure.SELECTION OF SAMPLETo select the right respondent in each category, a purposive stratified random 13
  • sampling method have been used.←SECONDARY RESEARCH←←To carry out secondary research, a number of website related to automobile hasbeen included. The main website are←←World Tourism Organization←World Travel and Tourism Council←Incredible India.com←←SAMPLE SIZE←←The total number of sample size is 30 based on random stratified sampling.←←←←FINANCIAL PROJECTIONS:←←We are projecting an average price of $7,000 per car with a sales volume of 100,000cars resulting in first year revenues of $700 million. Projected variable cost per unit is$5,000 and we are anticipating a first year loss of less than $150 million.← With $300 million in first year fixed costs, our analysis indicates that we willbreak even midway through our second year of production when we achieve 150,000in sales volume.←←$300,000,000←------------------- = 150,000 units←$7,000 - $5,000←←CONTROLS AND IMPLEMENTATION←←We have developed routine audits that will monitor product quality at ourproduction facilities as well as surveys to measure customer satisfaction. We havealso put together a reporting system that will be placed at maintenance facilities thatwill track maintenance issues with our vehicles. In addition to these monitoring tools,we will closely track monthly sales and expenses, being mindful of any deviationfrom the plan and taking appropriate corrective action.←←←←←←←←← 14
  • ANALYSISQ1. Do you want to buy a car?(1) Yes(2) No 120% 100% 100% 80% 60% 40% 20% 0% 0% Yes NoFinding: 100% respondents said they want to buy a car. 15
  • Q2. What is the price range for your new car? (In lakh) (1) 1.5-2.0 (2) 2.0-3.0 (3) 3.0-4.0 (4) 4.0-5.0 (5) Any other 45.00% 40.00% 40.00% 36.67% 35.00% 30.00% 25.00% 20.00% 16.67% 15.00% 10.00% 6.67% 5.00% 0% 0.00%Finding: Most of people said 2-3 lakhs is the price range of new car. 16
  • Q3. Rate the factors you consider before buying a car according to theirimportance.  Price of the car (1) Extremely unimportant (2) Not important (3) Average (4) Important (5) Extremely important 25.00% 23.33% 20.00% 20.00% 20.00% 20.00% 15.00% 13.33% 10.00% 5.00% 0.00% Average Important No important Extremply important Extremely unimportant Finding: Most of people said before buying a car Price of the car is extremely important 17
  • Q4. Rate the factors you consider before buying a car according to theirimportance  Brand value of company (1) Extremely unimportant (2) Not important (3) Average (3) Important (4) Extremely important 60.00% 53.33% 50.00% 40.00% 36.67% 30.00% 20.00% 10.00% 10.00% 0.00% 0.00% 0.00% Average Important No important Extremply important Extremely unimportantFindings: Most of people said before buying a car brand value of companyis extremely important 18
  • Q5. Rate the factors you consider before buying a car according to theirimportance  Styling and design (1) Extremely unimportant (2) Not important (3) Average (4) Important (5) Extremely important 30.00% 26.67% 25.00% 23.33% 23.33% 20.00% 20.00% 15.00% 10.00% 6.67% 5.00% 0.00% Average Important No important Extremply important Extremely unimportantFindings: Most of people said before buying a car Styling and designis important not extremely important. 19
  • Q6. Rate the factors you consider before buying a car according to theirimportance.  Family needs (1) Extremely unimportant (2) Not important (3) Average (4) Important (5) Extremely important 50.00% 46.67% 45.00% 40.00% 35.00% 30.00% 26.67% 25.00% 20.00% 15.00% 10.00% 10.00% 10.00% 6.67% 5.00% 0.00% Average Important No important Extremply important Extremely unimportantFindings: Most of people said before buying a car family needis important. It means before buying a car they consider also family. 20
  • Q7. Rate the factors you consider before buying a car according to theirimportance  Functional specification (1) Extremely unimportant (2) Not important (3) Average (4) Important (5) Extremely important 30.00% 26.67% 25.00% 23.33% 23.33% 20.00% 20.00% 15.00% 10.00% 6.67% 5.00% 0.00% Average Important No important Extremply important Extremely unimportantFindings: Most of people said before buying a car function of caris important . 21
  • Q8. Rate the factors you consider before buying a car according to theirimportance  Fuel efficiency (1) Extremely unimportant (2) Not important (3) Average (4) Important (5) Extremely important 70.00% 60.00% 60.00% 50.00% 40.00% 30.00% 30.00% 20.00% 10.00% 10.00% 0.00% 0.00% 0.00% Average Important No important Extremply important Extremely unimportantFindings: Most of people said before buying a car Fuel efficiencyis extremely important . 22
  • Q9. Rate the factors you consider before buying a car according to theirimportance  After sales services (1) Extremely unimportant (2) Not important (3) Average (4) Important (5) Extremely important 35.00% 30.00% 30.00% 25.00% 23.33% 20.00% 20.00% 15.00% 13.33% 13.33% 10.00% 5.00% 0.00% Average Important No important Extremply important Extremely unimportantFindings: Most of people said before buying a car after sales servicesis important . 23
  • Q10. Rate the factors you consider before buying a car according to theirimportance  Availability of spare parts (1) Extremely unimportant (2) Not important (3) Average (4) Important (5) Extremely important 60.00% 53.33% 50.00% 40.00% 30.00% 23.33% 20.00% 10.00% 10.00% 10.00% 3.33% 0.00% Average Important No important Extremply important Extremely unimportantFindings: Most of people said before buying a car availability of spare partsis important. 24
  • Q10. Rate the factors you consider before buying a car according to theirimportance  Resale value (1) Extremely unimportant (2) Not important (3) Average (4) Important (5) Extremely important 120% 100% 100% 80% 60% 40% 20% 0% 0% Yes NoFindings: Most of people said before buying a car resale valueis important. 25
  • Q13. Would you like to buy a new car that can run without fuel? (1) Yes (2) No 120% 100% 100% 80% 60% 40% 20% 0% 0% Yes NoFinding: 100% respondents agree to buy a new car that can run without fuel. 26
  • Q14. To what extent do you think this car is more competitive than other car? (1) Low competitive (2) Highly competitive 120% 100.00% 100% 80% 60% 40% 20% 0% 0% Low competitive High competitiveFinding: 100% respondents said this car is more competitive than other car. 27
  • FINDING• Price of the car is very important.• Brand value is what people look before buying a car.• Family need is very important for people who are going to buy lower segment car.• Fuel efficiency is utmost important for people in current economy scenario.• Availability of spare parts and after sale service is also important. 28
  • CONCLUSIONPeople are more interested in buying cars which give the mileage fulfill theirfamily needs has a good service network and is both fuel and cost efficient atthe same time thus fulfilling the needs of a family of middle tier. 29
  • Questionnaire Questionnaire (TG: General Public)INTRODUCTION: Good Morning/Afternoon/Evening. I am a Student of EMPIBusiness School. As a part of my course curriculum. I am carrying out a researchproject. The topic that I have chosen for research "Marketing research for Ripple car”.Your response will help me carry out the research project successfully. I would like tomention that your responses would be used together with responses from several otherpeople like you. Can I speak to you for 10 minutes?Name of therespondentContact No:Email id1. Do you want to buy a car?(1) Yes (2) No2. What is the price range for your new car? (in lakh) (1) 1.5-2.0 (2) 2.0-3.0 (3) 3.0-4.0 (4) 4.0-5.0 (5) Any otherRate the factors you consider before buying a car according to their importance. Extremely Not Not Not Extremely unimportant important important important important3. Price of thecar4. Brand valueof company5. Styling anddesign 30
  • 6. Familyneeds7.Functionalspecification8. Fuelefficiency9. After salesservices10.Availabilityof spare parts11. Resalevalue12. Any other factor that you consider important:13. Would you like to buy a new car that can run without fuel? (1)Yes (2) No14. To what extent do you think this car is more competitive then other car? Low competitive 1 2 3 4 5 Highly competitive15. How useful do you think this car will be? _____________________________________________________________ 31
  • EXCEL SHEETS.NO. Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q13 Q141 1 2 4 5 4 4 1 2 1 1 4 1 22 1 3 5 5 5 4 4 3 4 5 5 1 23 1 2 4 5 2 3 4 2 4 3 5 1 24 1 2 4 5 2 3 4 2 4 4 5 1 25 1 2 2 5 4 3 5 2 5 5 5 1 26 1 2 2 5 4 4 5 1 4 4 2 1 27 1 3 2 4 4 5 5 1 5 4 5 1 28 1 4 2 5 5 5 5 1 4 4 4 1 29 1 3 2 4 3 5 5 1 3 4 3 1 210 1 3 1 5 5 4 5 1 3 4 3 1 211 1 4 1 5 5 1 5 2 2 2 4 1 212 1 3 2 4 2 2 4 2 2 3 3 1 213 1 4 1 5 2 5 5 1 2 2 4 1 214 1 2 4 4 4 5 5 3 3 3 5 1 215 1 2 5 4 4 4 4 3 4 4 4 1 2 32
  • BIBLIOGRAPHY www.google.com automobile sites 33