Advanced marketing management

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Advanced marketing management

  1. 1. RISE OF AUTOMOBILE SECTOR IN INDIA Areeb Khamkar Yash Agarwal Barun Anand Khushboo Nitnaware Navneet Bansal
  2. 2. AUTOMOBILE INDUSTRY SCENARIO 2006 2011• 5th largest commercial • One of the largest in the vehicle manufacturer world and one of the• 13 lakh passenger fastest growing globally at vehicles, 4 lakh 16 to 18 per cent. commercial vehicles. • An annual production of• Automobile industry has more than 3.9 mn units. turnover of US$28 billion, • Asias third largest auto component turnover exporter of passenger of US$10 billion. cars. source : automotive_mission_plan_GoI
  3. 3. HYUNDAI MOTORS• Hyundai Motor Company was founded by Ju-Yung Chung and younger brother Se-Yung Chung in December 1967.• The name Hyundai was chosen for its meaning which in English translates to “modern”.• The second largest car manufacturer and the largest passenger car exporter from India.• HMIL presently markets 36 variants of passenger cars across segments.• Hyundai has one of the most advanced research and development facilities that focus on state of the art product and design engineering and rigorous quality
  4. 4. PRODUCT LIFECYCLE OF HYUNDAI MOTORS.
  5. 5. E • Niche SegmentD • Super / Premium CarsC • Mid size Luxury Cars • semiB luxurious cars • entryA level small cars
  6. 6. STRATEGY OF HYUNDAIMARKET STRATEGY PRICING STRATEGY  PERCEIVED VALUE PRICING  POSITION DEFENCE  WARRANTIES  PRODUCT POSITIONING P.O.D.(POINT OF DIFFERENTIATION)
  7. 7. INTRODUCTION• Largest automobile manufacture in South Asia.• Market leader in India; Half the cars sold in India are Maruti Suzuki cars.• Headquarters are in Delhi, India• Consumer Perceived the M-800 as a „VALUE FOR MONEY CAR‟• It has been rated first in customer satisfaction among all car markers in India
  8. 8. MARUTI SUZUKI : BRANDS• Maruti 800 “Change ur life”• Omni – 1984, “Fits all”• Gypsy – 1985 “King”• Wagon-R – 1999,”For the smarter race”• Alto – 2000, Currently the largest selling car in India. “Lets go”• Versa(2003) “The joy for travelling together”
  9. 9. MARUTI SUZUKI : BRANDS• Zen Estilo(2005) “ Shape ur world”• Swift (2005 Maruti Suzuki SX4 (May 2007) “Men are back”• Suzuki Grand Vitara Sports Utility Vehicle - July 2007. Imported “Play it your way”• Suzuki Alto (Sold in India as the Maruti A-Star) Launched in 2008 December. “Stop @ nothing”• Kizashi “A sign of great things to come” Launched in 2011
  10. 10. PRODUCT POSITIONING AND TARGET Product Line Products A Maruti 800 Alto, Zen ,Wagon –R, Swift, A- B star C Esteem , Baleno, Gypsy UTILITY VEHICLE Vitara, Kizashi MULTI PURPOSE Omni, Versa VEHICLE• The Gypsy targeted the paramilitary forces and the police. This resulted in complete control of Maruti over the market .• A special cell was made to make direct dealing of Gypsy with the government & the army.
  11. 11. DCBA
  12. 12. TARGETING: - SELECTIVE SPECIALIZATION MARKET URBAN SEMI-URBAN RURALPRODUCT A Yes Yes B Yes Yes Yes C Yes YesUtility Vehicle YesMulti Purpose Yes Yes YesVehicle TARGETING : - ON THE BASIS OF INCOME GROUPINCOME GROUP Rs. 2-3 Rs. 3-5 Rs.5> PRODUCT Lacs./Annum Lacs./Annum Lacs./Annum A Yes B Yes Yes C Yes Utility Vehicle Yes Multi Purpose Yes Yes Yes Vehicle
  13. 13. • Market Leaders• Major strength of MUL is having largest • Low interior quality in side the network of dealers and after sales service caters in the country. cars• Strong Brand Value • Labour Laws and Labour Unions are not in a good.• Availability of raw material• Loyal Customer BaseBig Market: Domestic and Tata Motors launched a car Abroad with a price tag of Rs. 1 Lac and that could give a bigLaunched its LPG impact on sales of MUL version of Wagon R China may give a good MUL can start R&D on electric competition as they are also cars for a much better substitute of the planning to enter into carfuel. segmentEconomic growth of the country is sound an promising in future
  14. 14. INDIA INDONESIA JAPANKAZAKHSTAN CHINA TAIWAN
  15. 15. Volkswagen India• Volkswagen -> People‟s car; Slogan -> Das Auto (the Car)• The Volkswagen group consists of seven brands: Volkswagen, Audi, SEAT, Skoda, Volkswagen Commercial Vehicles, Bentley, Bugatti, Lamborghini and Scania. percent holding Porsche Automobil Holdin Porsche GmbH State of Lower Saxony misc
  16. 16. Company Milestones• 1973: The Passat front wheel drive with four cylinder engine goes into production.• 1974: The Golf goes into production. It becomes a hit and succeeds the Beetle.• 1983: Production of the second generation Golf begins. Robots are deployed for producing it.• 1999: Production launch of the Lupo 3L TDI, the first production car to offer fuel consumption of just three litres per 100 kilometres.
  17. 17. Company Milestones• 2000: In August 2002, at Volkswagen Slovakia, a.s. in Bratislava, mass production of the Touareg, a luxury- class off-road vehicle, is started, marking the Volkswagen brands move into an entirely new market segment.• In December 2002 the "Auto 5000 GmbH" company develops a special collective pay model, aimed at implementing lean production and involving flat hierarchies, team working, flexible working hours and the deployment of more process expertise by the workforce.
  18. 18. E • Niche SegmentD • Super / Premium CarsC • Mid size Luxury Cars • semiB luxurious cars • entryA level small cars
  19. 19. Things that Worked forFast Plant Roll Out World class 3800 cr rupees Chakan plant built in record 17 monthsGreat Brand Launch „Roadblock‟ ads in TOI and Talking adsMarketing Prowess In 4 yrs, became India‟s 6th largest car company source : www.indiatomes.com
  20. 20. Marketing CampaignsNovember 2009 Carpet Bombing in TOI, became most searched word on Google that daySeptember 2010 Talking newspaper Campaign in TOIDecember 2010 Campaign with NatGeo, 5000 participants, Ventos as prizesAugust 2011 “Anything for Jetta” twitter campaign, supported by interactive digital banners & webisodes on YouTube. Became #1 trend on Twitter in 20 mins, most popular account in India in 24 hrs. PRINT ADS VIDEO ADS www.indiatimes.com
  21. 21. source : www.indiatimes.com
  22. 22. Future Plans in India• Volkswagen is talking about increasing its presence in the Indian auto industry by doubling the number of its dealerships by 2015 which currently stand at more than 200.• Volkswagen has inaugurated the VW Group Technical Education Program for trained manpower and technical staff.• The company is banking upon its more than 10 percent growth witnessed since January to July 2012 to increase the number of technicians in order to serve more customers.
  23. 23. Challenges for Pricing Woes Better Quality comes with typically 5% premium Dealer Push Dealers must push sales & customer care Limited Presence Addresses just 35-45% of industry India Connect Need to customize their products according to Indian conditions source : www.indiatimes.com
  24. 24. Comparative AnalysisFEATURES VOLKS WAGEN MARUTI SUZUKI HYUNDAIWARRANTY 2 YEARS & 3 YEARS LOYALTY CARD 12 YEARS ON ANTI- CORRISONMODELS 6 MODELS + BIG 15 MODELS WITH 9 MODELS BRANDS 150 VARIANTSTOUR GUIDE NO YES NOCUSTOMER SERVICE LOW HIGHEST HIGHQUALITY CHECKS 120 CHECKSASSISTANCE 24*7 24*7QUALITY TOUGH QUALITY BEST QUALITY WITH BEST CHASSIS CHECK UPS. LOW MAINTAINANCE TECHNOLOGY BLUE MOTION TECH MQB TECHNOLOGYRESALE VALUE - HIGHEST RESALE - VALUESERVICE CENTRE SERVICE CENTRE IN 8000 SERVICE ALMOST CENTRES EVRYWHERE IN INDIA
  25. 25. MORE FOCUS ON A, B & C SEGMENT
  26. 26. SegmentationGEOGRAPHIC DEMOGRAPHICREGION •SMALL CARS AGE/LIFE STYLE •SMALL CARS ARE SEGMENT IS PURCHASED BY BIGGEST IN INDIA YOUTHS, SINGLE, IN NORTH, SOUTH YOUNG MARRIED. & WEST •AGE GROUP PURCHASER OF 25-31 HAS RISEN UPTO 9%.RURAL/URB •MARUTI TARGET FAMILY SIZE •AVERAGE HOUSEHOLDAN RURAL INDIA TO SIZE IN INDIA IS 5 INCREASE SALES MEMBERS WHICH BOOST TO 8% FROM 3% UP THE SMALL CARS •TATA MAGIC PRICED TO CATER INCOME •BETTER EMI SERVICES ONLY RURAL INDIA AND FINACE AVAILABILITY IN INDIA
  27. 27. SEGMENT TARGETINGSINGLE SEGMENT CONCENTRATION PETROL CARS ELECTRIC CARS DIESEL/ CNG/LPGMARUTIREVAHYUNDAISELECTIVE SPECIALISATION DUEL FUEL PRICE STYLE SENSITIVITYWAGON RALTOSWIFT http://en.wikipedia.org/wiki/Suzuki_Wagon_R
  28. 28. HYUNDAI• Tough Competition To Maruti 800 And Alto By Hyundai Eon.• Good Interiors, Low Priced, Good Looking, Fuel Efficient, Music Systems.• Hyundai Santro For Maruti Zen And 800• Hyundai Eon For Maruti Alto.• Better Pick Up And Engine.• Better Leg Space With Added Feature• Targeting Customers With Added Features With Prise.
  29. 29. VOLKSWAGEN INDIA• Technologial Advantage• Blue Motion Technology• Mqb Technological Advantage• Market Share Risen With Increased Sales• Indian Version Of Polo• Technology To Cater Indian Market• Manufacturing Advantage To Produce Advanced Car With Price Effeciency.
  30. 30. MARUTI : COMPETITIVE ADVANTAGE• Maruti Suzuki- Auto Loyalty Card – 4% Surcharge & 2.5% Discounts At Every Petrol Pump – Auto Card With SBI – Most Trusted Firm – Gets Discount On Exchange Or On Every Transaction – Low Maintenance In Alto Whereas High Fuel Efficiency – Low Fuel Efficiency With High Style, Price, Comfort , Leg Space. – Cost Component Is The Comparative Advantage Which Maruti Has Over Others. – Offered Maximum Fuel Efficiency Which Helped It To Gain 60% Of The Market
  31. 31. POSITIONING- MARUTI SUZUKI
  32. 32. SEGMENT INVASION PLAN- MARUTI SUZUKI http://en.wikipedia.org/wiki/Suzuki_Wagon_R
  33. 33. Comparative Growth source : www.indiatimes.com
  34. 34. BARGAINING ADVERTISING POWER OF CUSTOMERS• Maruti Sells 2 Out Of Every 4 Car Sold In India Still Advertising Campaign Plays Very Important RoleBARGAING THREAT OFPOWER OF NEW • Maruti Spends 5-10% In Advertising“kitna DetiSUPPLIERS ENTRANTS Hai” • “Kya Kare Petrol Khatam Hi Nahi Honda”. • Informative Ads• Volkswagen Advertises In India With Indian Sentiments COMPETITIVE THREAT OF RIVALRY SUBSTITUTE WITHIN THE• VW‟s Ad Campaigns To Portray Different Image In PRODUCT INDUSTRY India
  35. 35. Value PropositionBrand andCompanyarget Customer Benefits T PositioningImage (Pointof difference) Better power and fuel efficiency, Environmentally Better conscious performance on Economical and Santro Eco – An Santro Eco, consumers who city roads, less environment environment Hyundai want an economic maintenance costs, friendly small car friendly car and a safe small spacious interior car sand more headroom Customer seeking a A vehicle thatSwift, Powerful, Styling stylish, powerful provide comfort , Style, modern looksMaruti Suzuki and Handling, and a premium car power and luxury in and young attitude Advanced features for City driving small package A first-time car A trusted and India‟s largest Alto, buyer looking Good performance, reliable car with selling car. Maruti Suzuki for the best good fuel economy access to the largest “Your Sachha affordable car in . Good in price as service network an Hamsafar”. “Alto. the market well as quality d commanding the Let‟s go”. highest resale value
  36. 36. RETURN

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