0
MARKET ANALYSIS
OF
CONSUMER
DURABLES
(AUTOMOBILE
SECTOR)
Presented by

Group No.9
Sumeet Mittal (171)
K.Naresh kumar (172)...
CONSUMER DURABLES
Consumer goods are often divided into two categories: durables and nondurables.
A category of consumer p...
INDIAN CONSUMER DURABLE MARKET
Multinational companies have garnered significant market share of about 30% and
25% respect...
AUTOMOBILE INDUSTRY
•

Automobile – wheeled passenger vehicle that carries its own motor.

•

The automobile industry is d...
INDIA’S AUTOMOBILES PRODUCTION
•

In 2010, India beat Thailand to become Asia's third largest exporter of
passenger cars.
...
AUTOMOBILE COMPANIES IN INDIA
•

Indian Automobile companies :
Chinkara Motors, Force Motors, Hindustan
Motors, ICML, Mahi...
MARKET SHARE
4 P’S OF MARKETING

Product

• Thing that is being sold. Not just the physical product itself, but also
anything related t...
SUCCESSFUL MARKETING STRATEGY: PROMOTION
•

Maruti Suzuki promotes most of their products through TV ads and print media.
...
SUCCESSFUL MARKETING STRATEGY:
PLACE/ DISTRIBUTION
•

Maruti has showrooms in all the major cities of the country. Maruti ...
SUCCESSFUL MARKETING STRATEGY:
PRODUCT AND PRICE
•

The company recently updated its manufacturing and technology
capabili...
Targeting is identification of
attractive market segments
and fulfilling the needs of
consumers. For Mahindra &
Mahindra, ...
SWOT ANALYSIS

strengths

weaknesses

•
•
•
•
•

Low cost and cheap labor
Increase in the export levels
Large pool of engi...
SWOT ANALYSIS

Opportunities

•
•
•
•
•
•

Growing population in the country
Focus from the government in improving the ro...
PORTER’S ANALYSIS OF THE INDUSTRY
Suppliers Bargaining Power: Low
High competition among low suppliers
As suppliers are re...
OBJECTIVE OF THE STUDY
To carry out a study of consumer durables (automobile sector) in India.

Analysis of Indian automob...
METHODOLOGY
Based on the
analysis, conclusion

Public survey of
consumers

Internet
Customer
needs

Magazines

Factors
aff...
TOOLS USED FOR DATA ANALYSIS
Tables.

Bar graphs.
Pie charts.
SPSS.
Microsoft Excel.
DEMOGRAPHIC ANALYSIS
6% 5%

Gender

38%

18 - 23
23 - 28
28 - 34
34 - 40
40 - 50
> 50

Male
Female

62%

Age

10%
40%
9%
3...
FACTORS AFFECTING PURCHASE
2%

Type of car preferred

34%

41%

Sedan
Hatchback

23%

SUV
Other

Type of Engine preferred
...
PRICE

LOOKS

MILEAGE

INTERIORS
SAFETY FEATURES

ENGINE PERFORMANCE

SEATING CAPACITY

ACCESSORIES
AFTER-SALE SERVICES

LONGEIVITY

STATUS SYMBOL
BRAND RECALL
Factors Helping in Brand Recall

Brand Recalled
6.56%
4.92%

Maruti Suzuki

8.20%
26.23%

24.59%

26.23%

Hyu...
ACCESSORIES LOOKED FOR

WHOM DO CONSUMERS
CONSULT
COMPETITOR ANALISYS
Company preferred for Price

Company preferred for Mileage

Maruti Suzuki
Maruti Suzuki

TATA

Hyundai...
Company preferred for Looks

Company preferred for Interiors
Mercedes Benz

Honda

BMW

Volkswagen

Audi
Audi

Others
Othe...
Company preferred for Safety
Features

Company preferrd as Status Symbol
Mercedes Benz

Toyota

BMW

BMW

Audi

Mercedes B...
Company preferred for Seating
Capacity

Company preferred for Engine
Performance

Maruti Suzuki

Toyota

Toyota

Hyundai

...
Company preferred for Accessories

Company preferred for After-Sale
Services

Audi
General Motors

Skoda
Hyundai

Mercedes...
Company preferred from Longevity
Toyota

Mahindra & Mahindra

Company preferred from Longevity
Maruti Suzuki

Others

0

5...
CONSUMER WITH OCCUPATION BUSINESS AND
SERVICES:
ENGINE PREFERENCE
11%

50%
39%

diesel

petrol

cng
PREFERENCE WITH REFERENCE TO
ANNUAL INCOME
Preference reference to family annual incom
4.5

Annual income between 3-5
lakh...
Preference with reference to income
8
7

Annual income between 812 lakhs

6
5
4
3
2
1
0
hatchback

sedan

suv

sports

Pre...
T-TEST FOR FACTORS AFFECTING PURCHASE DECISION
WITH RESPECT TO GENDER
Factors Affecting Purchase Decision

Significance Va...
•

Null Hypothesis(H0): The factors affecting the purchase decision are same for both males and
females.

•

Alternate Hyp...
ANOVA TEST OF FACTORS AFFECTING PURCHASE
DECISION WITH RESPECT TO AGE
Factors Affecting Purchase Decision In Respect To Ag...
•

Null Hypothesis(H0): The factors affecting the purchase decision are same for
people of all age groups.

•

Alternate H...
ANOVA TEST OF FACTORS AFFECTING PURCHASE
DECISION WITH RESPECT TO INCOME
Factors Affecting Purchase Decision In Respect To...
•

Null Hypothesis(H0): The factors affecting the purchase decision are same for people of all
income groups.

•

Alternat...
CONCLUSION
•

Mileage & Longevity are the most important factors which consumers consider before buying a car.

•

Consume...
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Market Analysis of Consumer Durables(Automobile Industry)

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Transcript of "Market Analysis of Consumer Durables(Automobile Industry)"

  1. 1. MARKET ANALYSIS OF CONSUMER DURABLES (AUTOMOBILE SECTOR) Presented by Group No.9 Sumeet Mittal (171) K.Naresh kumar (172) Ashish Sharma (173) Gourav Kumar Bhut (174) Anurag Nair (175) Shashank Sharma (176)
  2. 2. CONSUMER DURABLES Consumer goods are often divided into two categories: durables and nondurables. A category of consumer products that do not have to be purchased frequently(typically more than three years).Durables have an extended product life and are not worn out or consumed quickly when you use them. Examples of durable goods are automobiles, appliances, furniture, jewellery, consumer electronics and sporting goods.
  3. 3. INDIAN CONSUMER DURABLE MARKET Multinational companies have garnered significant market share of about 30% and 25% respectively due to their superior product offerings at good prices. According to Cygnus estimates, consumer durables market crossed the US$10.0 billion milestone by the year 2011-12, growing at a CAGR of 23.8. It will be the key challenge for consumer durables manufacturing companies to spend in R&D for surviving in the highly competitive market. The household income in the top 20 boom cities in India is projected to grow at 10% annually over the next eight years.
  4. 4. AUTOMOBILE INDUSTRY • Automobile – wheeled passenger vehicle that carries its own motor. • The automobile industry is divided into two based on drive type • • • Two-wheel drive Four-Wheel Drive Part of the classification process takes into account the vehicle's body style: • • • • • • • • Coupe Convertible Station wagon or estate car Sedan Minivan Sport utility vehicle (SUV) Sports car Hatchback
  5. 5. INDIA’S AUTOMOBILES PRODUCTION • In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars. • The majority of India's car manufacturing industry is based around three clusters in the south, west and north. • Chennai is the Detroit of Asia as it accounts for 6o% of Indian automobiles production.
  6. 6. AUTOMOBILE COMPANIES IN INDIA • Indian Automobile companies : Chinkara Motors, Force Motors, Hindustan Motors, ICML, Mahindra, Premier Automobiles Limited, San Motors, Maruti Suzuki, Tata Motors. • Vehicles assembled in India : BMW India, Fiat India, Ford India, General Motors India, Chevrolet, Honda Cars India Limited, Hyundai Motor India, Isuzu, Mercedes-Benz India, Mitsubishi, Nissan Motor India, Renault India, Toyota Kirloskar, Volkswagen Group sales India, Volkswagen India.
  7. 7. MARKET SHARE
  8. 8. 4 P’S OF MARKETING Product • Thing that is being sold. Not just the physical product itself, but also anything related to how it is made, packaged and named. Also includes product/service options, the after-sales service, warranties, and servicing. BMW offers varied products/services. Price • Decisions about how much to charge for goods and services. Price affect the viability of a brand and the profitability of an organisation. Honda Amaze is priced in the mid-sized Sedan segment making it cost effective. Promotion • Communication that relate to a specific marketing campaign. Includes communication with retailers and distributors, communication with purchasers and end users and also internal communication. XUV 500 is promoted as a go anywhere SUV. Place • Refers to distribution. All aspects related to how goods and services are 'moved' from the producers to the end user. The target place of sell determines the place. Audi and Mercedes showrooms in major cities(Tier 1) and almost nothing elsewhere.
  9. 9. SUCCESSFUL MARKETING STRATEGY: PROMOTION • Maruti Suzuki promotes most of their products through TV ads and print media. Whenever Maruti introduces any new product, it also attaches a new punch line along with it in order to create a lasting relationship with the consumers. • Maruti came up with a new campaign based on the fuel efficiency aspect that Maruti Suzuki looks to deliver with their cars. The ad has this line- "For a country obsessed with mileage, Maruti Suzuki makes India's most fuel efficient cars."
  10. 10. SUCCESSFUL MARKETING STRATEGY: PLACE/ DISTRIBUTION • Maruti has showrooms in all the major cities of the country. Maruti Suzuki has largest network of dealers among car manufactures in India with more than 4000 sales executives. Sales network is linked through secure extranet based information network. The service network of Maruti covered 1500 cities across India with the largest no of service outlets.
  11. 11. SUCCESSFUL MARKETING STRATEGY: PRODUCT AND PRICE • The company recently updated its manufacturing and technology capabilities. It came up with better and efficient K-series engine. Maruti also expanded its business portfolio by starting new but related businesses such as -Maruti Driving School -Maruti True Value -Maruti Finance -Maruti Insurance. • Maruti Suzuki offers 14 different models in a total of 92 variants. Maruti Suzuki has made its presence in the market with prices ranging from Rs 2.27 lakhs to Rs 7 lakhs. The prices were kept low to attract middle income group.
  12. 12. Targeting is identification of attractive market segments and fulfilling the needs of consumers. For Mahindra & Mahindra, the mid sized Sedan can be one the target markets STP Segmentation divides the market into homogeneous Sub-units. Price can be one segment. Economical, Premium, Super Premium Positioning is concept of defining what role the brand will play in enhancing customers’ lives. More of psychological aspect. Mercedes positions itself as a very classy and premium automobile
  13. 13. SWOT ANALYSIS strengths weaknesses • • • • • Low cost and cheap labor Increase in the export levels Large pool of engineers Increasing demand for European quality Investments by foreign car manufacturers • • • • Low labor productivity High interest rate and overhead level Low investment in R&D area Local demand is still towards low cost vehicles due to comparatively low income levels
  14. 14. SWOT ANALYSIS Opportunities • • • • • • Growing population in the country Focus from the government in improving the road infrastructure Rising living standards & Increase in income level Rising rural demand for utility vehicles Keeping a vehicle is becoming status symbol Women drivers have increased Threats • • • • Less skilled labor Lack of technologies for Indian companies Increase in the import tariff and technology cost Smaller players that do not fulfill international standards
  15. 15. PORTER’S ANALYSIS OF THE INDUSTRY Suppliers Bargaining Power: Low High competition among low suppliers As suppliers are reliant on high volumes, they have less bargaining power Threat of New Entrants :Very Low High capital requirements High sunk costs limit competition Advanced technologies are required Industry requires economies of scale Rivalry amongst existing competitors: High Intense due to the entry of foreign companies Rivalry high with any product being matched in a few months by competitors Similar technical capabilities Collaboration with international players Threat of Substitutes: Mild A limited no of substitutes are there implies that customers cannot easily find other products or services Buyer’s Bargaining Power: High •The power axis is tipped in the consumers’ favor. Low switching costs from among competing brands
  16. 16. OBJECTIVE OF THE STUDY To carry out a study of consumer durables (automobile sector) in India. Analysis of Indian automobile market based on marketing theories. To find out the factors affecting the decision making while buying a vehicle. A small comparison study of different companies & their brand image.
  17. 17. METHODOLOGY Based on the analysis, conclusion Public survey of consumers Internet Customer needs Magazines Factors affecting EMedia Likeness among the masses Primary Data Secondary Data marketing strategies Data analysis: Survey of Consumers
  18. 18. TOOLS USED FOR DATA ANALYSIS Tables. Bar graphs. Pie charts. SPSS. Microsoft Excel.
  19. 19. DEMOGRAPHIC ANALYSIS 6% 5% Gender 38% 18 - 23 23 - 28 28 - 34 34 - 40 40 - 50 > 50 Male Female 62% Age 10% 40% 9% 30% Annual Income 7% Occupation <3 Lakhs 3-5 Lakhs 18% 16% Services 5% 11% 37% Student 5-8 Lakhs >12 Lakhs 8-12 Lakhs House Wife 27% 32% Business 47%
  20. 20. FACTORS AFFECTING PURCHASE 2% Type of car preferred 34% 41% Sedan Hatchback 23% SUV Other Type of Engine preferred 20% 54% 26% Petrol Diesel CNG
  21. 21. PRICE LOOKS MILEAGE INTERIORS
  22. 22. SAFETY FEATURES ENGINE PERFORMANCE SEATING CAPACITY ACCESSORIES
  23. 23. AFTER-SALE SERVICES LONGEIVITY STATUS SYMBOL
  24. 24. BRAND RECALL Factors Helping in Brand Recall Brand Recalled 6.56% 4.92% Maruti Suzuki 8.20% 26.23% 24.59% 26.23% Hyundai Honda Ford Tata 3.28% M&M Others
  25. 25. ACCESSORIES LOOKED FOR WHOM DO CONSUMERS CONSULT
  26. 26. COMPETITOR ANALISYS Company preferred for Price Company preferred for Mileage Maruti Suzuki Maruti Suzuki TATA Hyundai Hyundai TATA Others Others 0 0 10 20 30 10 20 30
  27. 27. Company preferred for Looks Company preferred for Interiors Mercedes Benz Honda BMW Volkswagen Audi Audi Others Others 0 0 10 20 30 5 10 15 20 25
  28. 28. Company preferred for Safety Features Company preferrd as Status Symbol Mercedes Benz Toyota BMW BMW Audi Mercedes Benz Others Others 0 5 10 15 20 0 5 10 15 20 25
  29. 29. Company preferred for Seating Capacity Company preferred for Engine Performance Maruti Suzuki Toyota Toyota Hyundai Mahindra & Mahindra Maruti Suzuki Others Others 0 10 20 30 0 5 10 15 20 25
  30. 30. Company preferred for Accessories Company preferred for After-Sale Services Audi General Motors Skoda Hyundai Mercedes Benz Maruti Suzuki Others Others 0 0 10 20 30 40 5 10 15 20 25
  31. 31. Company preferred from Longevity Toyota Mahindra & Mahindra Company preferred from Longevity Maruti Suzuki Others 0 5 10 15 20 25
  32. 32. CONSUMER WITH OCCUPATION BUSINESS AND SERVICES: ENGINE PREFERENCE 11% 50% 39% diesel petrol cng
  33. 33. PREFERENCE WITH REFERENCE TO ANNUAL INCOME Preference reference to family annual incom 4.5 Annual income between 3-5 lakhs 4 3.5 3 2.5 2 1.5 1 0.5 0 hatchback sedan Suv Preference reference to family annual incom 10 8 6 4 2 0 hathchback sedan suv Annual income between 5-8 lakhs
  34. 34. Preference with reference to income 8 7 Annual income between 812 lakhs 6 5 4 3 2 1 0 hatchback sedan suv sports Preference reference to annual income 8 7 6 5 Annual income below 3 lakhs 4 3 2 1 0 hatchback sedan suv
  35. 35. T-TEST FOR FACTORS AFFECTING PURCHASE DECISION WITH RESPECT TO GENDER Factors Affecting Purchase Decision Significance Value Price 0.159 Mileage 0.029 Looks 0.303 Interiors 0.464 Safety Features 0.321 Seating Capacity 0.319 Engine Performance 0.169 Accessories 0.078 After-Sale Services 0.168
  36. 36. • Null Hypothesis(H0): The factors affecting the purchase decision are same for both males and females. • Alternate Hypothesis(H1): The factors affecting the purchase decision are different for both males and females. • From the Independent sample T test we see that the significance value for all factors is greater than 0.05 except for mileage. Hence, null Hypothesis is rejected in this case and we can conclude that there is a significant difference between perception of males and females with respect to mileage. • From the mean values, we see that males give more value to mileage than females.
  37. 37. ANOVA TEST OF FACTORS AFFECTING PURCHASE DECISION WITH RESPECT TO AGE Factors Affecting Purchase Decision In Respect To Age Significance Value Price 0.697 Mileage 0.498 Looks 0.621 Interiors 0.085 Safety Features 0.001 Seating Capacity 0.382 Engine Performance 0.059 Accessories 0.269 After-Sale Services 0.697
  38. 38. • Null Hypothesis(H0): The factors affecting the purchase decision are same for people of all age groups. • Alternate Hypothesis(H1): The factors affecting the purchase decision are different for people of different age groups. • The significance value of all factors apart from Safety Features is greater than 0.05. • Hence for all the age groups there is not much of a difference in important given for the various factors affecting the purchase decision apart from safety features. • Safety Feature is a very important parameter for consumers above the age of 40 years.
  39. 39. ANOVA TEST OF FACTORS AFFECTING PURCHASE DECISION WITH RESPECT TO INCOME Factors Affecting Purchase Decision In Respect To Income Significance Value Price 0.597 Mileage 0.000 Looks 0.629 Interiors 0.000 Safety Features 0.481 Seating Capacity 0.056 Engine Performance 0.389 Accessories 0.728 After-Sale Services 0.240
  40. 40. • Null Hypothesis(H0): The factors affecting the purchase decision are same for people of all income groups. • Alternate Hypothesis(H1): The factors affecting the purchase decision are different for people of different income groups. • The significance value of all factors apart from Mileage and interiors is greater than 0.05. • Hence for all the income groups there is not much of a difference in important given for the various factors affecting the purchase decision apart from mileage and interiors. • Mileage is a very important parameter for consumers earning less than 5 lakhs. • Interiors is an important parameter for consumers earning above 12 lakhs.
  41. 41. CONCLUSION • Mileage & Longevity are the most important factors which consumers consider before buying a car. • Consumers prefer to buy sedans & diesel engines. • Brand Logo & advertisements are the most important parameters that help consumers in recalling a brand. • Brand ambassador does not affect the consumers to a great extent. • Power Windows & Stereo Systems are the most preferred accessories for consumers. • Use of social media forums for consultations is rising. • Males give more value to mileage than females. • Safety Features is the most important parameter for consumers above 40 years of age. • Mileage is the most important factor for consumers with an annual income of less than 5 lakhs. • Interiors is the most important factor for consumers with an annual income of more than 12 lakhs.
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