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D final

  2. 2. Headquartered in Chennai , BMW India Private Limited is a 100% subsidiary of the BMW.  The initial investment in India is 1.1 billion Indian Rupees.  In medium term, BMW India Private Limited has employed around 200 people; up to 600 additional jobs have been created in the dealer and service network.  On 29 March 2007, BMW India Private Limited officially opened its production plant in Chennai and has a capacity to produce 3,000 units per year. 
  3. 3. 4ps of BMW •Price – Value added pricing, pricing out of some people’s price range. All products priced between 30 lacs to 1.5 cr. •Promotion – Product placement, advertising at events that reflect brand image of BMW. •Place – internet (design your own car) and car showrooms.
  4. 4. •Product – A luxury performance car, with industry leading Efficient Dynamic technology system. •Assembled/Manufactured Locally BMW 3 Series BMW 5 Series BMW X1
  5. 5.  Imported BMW 5 Series BMW 5 Series GT BMW 6 Series BMW 7 Series BMW X3 BMW X5 BMW X6 BMW X6 M BMW M3 BMW M5 BMW M6 BMW Z4
  6. 6.  Audi has been selling Luxury cars in India since 2004.  However the Audi India was established in March 2007 as a division of Volkswagen Group Sales India.  Audi India uses Škoda Auto India Private Limited manufacturing facilities in Aurangabad, to assemble the Audi A4 and Audi A6 models locally.  Audi India currently has 13 dealerships in 10 states and 2 Union territories of India.
  7. 7.  Price- 32 lacs onwards to 2 crores.  Place- showrooms in 12 cities around the country in Delhi, gurgaon, pune, Chennai, Ahmadabad, Chandigarh, Bangalore, Mumbai, Calcutta and Kochi.  Promo- The Audi has been promoted using a viral internet video release entitled "The Next Big Thing". The campaign stars Justin Timberlake.  Audi also sponsors racing events, golf events, iifa awards and movie sponsorship(Teen Patti).
  8. 8. Product- high end performance luxury cars. Manufactured/Assembled Locally  Audi A4 (1.8, 2.0, 3.2 V6 petrol and 2.0 TDI and 3.0 TDI diesel)  Audi A6 (2.8, 3.0 petrol and 2.7 and 3.0 TDI diesels)  Audi Q5 (2.0 petrol and 3.0 diesel) Imported  Audi A8  Audi TT (3.2 FSI V6 only)  Audi R8  Audi Q7 (3.0 and 4.2 diesels) 
  9. 9.  Daimler entered the Indian market and set up Mercedes-Benz India Ltd in 1994.  After DaimlerChrysler sold off most of its equity interests in Chrysler in 2007, it changed its name to Daimler AG.  Mercedes-Benz India is a 100%-owned subsidiary of Daimler AG. The company is based in Pune.  Mercedes has an investment of 700 million euros in India.
  10. 10.  Price- 28 lacs to 1 crore  Place- Mercedes-Benz India currently has 22 dealerships across 17 cities in 11 states and 2 Union Territories and Service Stations in 32 cites in 16 States and 2 Union Territories of India.  Promo- Mercedes has a tie up with Johnnie Walker to promote the message of responsible driving. Sponsorship of racing events, auto expo.
  11. 11.            ProductManufactured/Assembled Locally Mercedes-Benz C-Class (Sedan only) Mercedes-Benz E-Class (Sedan, Coupe, and Cabrio) Imported Mercedes-Benz CL-Class Mercedes-Benz CLS-Class Mercedes-Benz GL-Class Mercedes-Benz M-Class Mercedes-Benz S-Class Mercedes-Benz SL-Class Mercedes-Benz SLK-Class Mercedes-Benz SLS AMG
  12. 12.  Mercedes-Benz India reported a nearly twofold jump in its monthly sales at 321 units in April, 2011. The company had sold 178 units in the corresponding month last year.  BMW India has sold a record 753 cars in October 2011. 'Last year they sold 4,721 cars, whereas this year till October we have sold 3,500 cars. We hope to take the margin between 5,000 to 6,000 cars by the end of this year.
  13. 13.  Audi India sold 1,658 vehicles in the year 2011 compared to 1,050 vehicles in 2010 and registered an increase of 58% in sales growth in 2011 as compared to 2010.  MERCEDES Sold 7430 units last year,as against 5819 units in 2010  BMW recorded 45% growth in india and is expecting to increase in the year 2012
  14. 14.  The battle between the Germans is getting serious in India. BMW caught Mercedes Benz napping and went past the three pointed star last year.  However, with the launch of the new E-class, C-class Executive and the supercar SLS AMG, Mercedes Benz has taken the lead over BMW and Audi in the first seven months of 2010.  Mercedes sales jumped by a massive 79.31% while BMW and Audi witnessed 35.35% and 56.5% respectively in the period Jan-Jul 2010 compared to the same period last year.
  15. 15. All three brands that is; BMW, Mercedes, and Audi  have a high level of awareness, both in recognition and recall.  The image of BMW , Mercedes and Audi is favorable, strong and relevant.  BMW ,Mercedes and Audi are mainly associated with performance and style by existing customers and status by potential customers.
  16. 16.  These companies target the luxury and performance car segment in the auto sector.  Other players in this segment other than the ones mentioned are Porsche, Bentley, Jaguar, Land Rover etc.
  17. 17.  The profile of all the buyers for these three companies is the same. They all target upper middle class and high class customers.  These companies have a big presence in the major cities of India.  They are looking to enter tier 2 & 3 cities in India. Like Jaipur, Pune, Coimbatore, Goa, Ludhiana, Lucknow, Bhubaneswar.
  18. 18.  BMW- The luxury car brand targets younger customers. Often self-driven, it lays thrust on speed and emphasises on driving as pleasure.  (average age of a BMW buyer is 40 years)  BMW is growing its dealer network and hopes to touch the 60 mark by 2015.
  19. 19.  A symbol of power. The ultimate car for those who have arrived and is almost always chauffeur driven.  The company is working on its model line-ups, marketing and brand positioning to keep them aligned.
  20. 20.  The car emphasises design and style rather than speed (BMW's thrust). Positioned as a wellengineered stylish car, its tagline is 'Vorsprung durch Technik' in German, meaning 'Lead by Technology'.
  21. 21. Others 10 10% BMW 36 36% Mercedes-Benz 21 21% Audi 33 33% Mercedes-Benz Audi BMW Others
  22. 22. • The luxury car segment in India has been growing at a CAGR of 30% , for the past decade. But this year the rate would not be able to touch double digits. Rise in excise duty, depreciation of rupee and the rising petrol prises, are some of the factors driving consumers away. • Luxury cars, account for less than 2% of India's 2.2-million car market, grew by just 9% in the first six months of 2012 with sales of around 12,000 units. In 2011 the premium segment recorded sales of 23000 units. The industry had expected a sale of 30000 units. • This year in the month of May, this segment recorded a negative growth, the first time in the last seven years. •
  23. 23.  Analysts however expect the Indian luxury car market to cross 50,000 units annually in the next five years from now.  The basic attribution of this demand can be given to the rising number of High Net worth Individuals (HNI’s) in India. The HNI population in India stands at 1.5 million.  The HNI index in India is growing at around 15% to 16% per year. Though after the stock market crisis a good chunk of the HNI’s have been erased.
  24. 24. Many experts also feel that with increasing number of BMW, Audi and Mercedes on the Indian roads, somewhere the exclusivity factor associated with these brands say, 510 years ago, has gone down and hence, many consumers who have the money – between Rs. 1 crore and Rs. 5 crore – to spend and want exclusivity, are looking at brands like Aston Martin, Ferrari and Lamborghini, to the desired exclusivity they want out of the purchase. • India being home to around 4% of the worlds billionaires the market for super premium segment looks bullish. • The Indian premium car market (experts opine) would take another 3-4 years to mature and in the meanwhile the real competition would be fought in the 30 lakh to 1 crore segment in India. •
  25. 25. THANK YOU !!
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