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Marketing management-Automobile sector

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Porter's value chain
Porter's five forces
Porter's generic strategies
Ansoff Matrix
BCG Matrix
Competition strategies
STP

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Marketing management-Automobile sector

  1. 1. MARKETING MANAGEMENT Submitted By- Group 8 Ankita Singh-61 Devansh Shah-66 Akshita Gupta-75 Murtaza Arenpurwala-92 U. Nalla Karuppan-111 S.Sri Hariharan-120
  2. 2. Porter’s Value Chain-Hyundai Primary Activities Value or benefit to the customer 1.Inbound Logistics • Just In Time Approach • Worldwide availability of raw materials Reducing Time Cost 2.Operations • Increased production capacity • Having separate departments for activities like painting, welding, etc. Product Benefit 3.Outbound Logistics • Hyundai sells vehicles in 193 countries • They manage their own showrooms in different countries Reducing time and energy cost by making the product easily accessible 4.Marketing and sales • Supporting diverse sport events soccer, baseball, and tennis to cricket • Promoting their product through road shows Image Benefit and also improving consumer interactions to identify and cater to their needs better 5.Services • Providing time and cost estimation • Making contact within 3 business days to ensure satisfaction. Service Benefit
  3. 3. Secondary Activities Value or benefit to the customer 1.Procurement • Hyundai outsources components which are costlier to produce in-house • Automated purchase system • Proper quality testing of raw materials Product Benefit and reducing monetary costs 2.R&D • Innovative technologies like infotainment system, head up display, AVM system, Driver state monitoring system, etc. Product Benefit by providing ultimate driving experience 3.HRM • About 120000 employees including staff and managers, considered as human capital • Provides training and development of human resources to improve job performance Personnel Benefit 4.Infrastructure • Usage of mechanisms and MIS for planning and control in different departments • The Chennai plant has the capacity for producing almost 6.5 lakh units annually Reducing Monetary Cost
  4. 4. Porter’s five force-Toyota • Rivalry among existing competitors-High o Presence of top players like Volkswagen, Hyundai, Honda, Ford, General Motors o Not much differentiation between players and their products • Bargaining power of suppliers-Low o High availability of supply used for manufacturing Toyota’s products o Suppliers do own the power to change the price • Bargaining power of buyers-Moderately high o Low switching cost for buyers o Oligopoly market • Threat of substitutes-Moderate o Two wheelers o Public transports o Taxi services like Ola and Uber cost less • Threat of New Entrants-Low o High capital requirements in the automobile industry o Toyota has established brand image and reputation
  5. 5. Porter’s generic strategy-Toyota • Cost Leadership o Just in Time manufacturing method to minimize waste, inventory cost, and response time o Market based pricing to compare their vehicles with similar vehicles in the internet market • Product Differentiation o Toyota focuses on small incremental innovations rather than making big changes o From hybrids and electric vehicles to fuel cell technology, a key for tomorrow’s eco driving. For example-highlander, camry o Automated Driving to ensure safe and smooth ride • Focus o Toyota believes in “Right car at the right place” and they do not focus only on a particular market segment o Land cruiser, Parado and Camry for high income group who have the purchasing power to buy these cars o Toyota Atlis Sport model and Toyota Fortuner for high income group who have a sporty attitude o Using different products of different prices for different market segments
  6. 6. Ansoff Matrix-Toyota Market penetration: • Together Green program that supports environmental initiatives • Meal Per Hour program that donates food to Food Bank • Toyota launches Etios motor racing in India-2012 to attract youth segment • Sponsorship agreement with speedway for Indy racing league weekend Market development: • Fortuna in India in 2009, followed by the diesel Corolla and the Etios in 2010. • In 1980, they strategized to build manufacturing plant and research to increase global sales • The company has sedans, trucks, SUVs, luxury vehicles, and other product lines for every type of customer • Overseas business from making in Japan and exporting, to producing in regions where demand exists • In Brazil, production of Corolla FFV began in 2007
  7. 7. Product development: • Innovation processes-For example, through the Toyota Prius and Ravev technology including electric and lithium battery models • Focusing on small incremental innovations rather than making big changes • From hybrids and electric vehicles to fuel cell technology, a key for tomorrow’s eco driving • Automated Driving to ensure safe and smooth ride Diversification: • In 1997, Toyota established its Marine Business Division and also set up a boat and sales network • In 1998, Toyota established the Biotechnology and Afforestation Business Department • Toyota takes part in International Digital Communications Planning Inc. and invests in Tokyo Telecommunication Network Co., Inc. and International Telecom Japan Inc-1986 • Toyota acquires Japan Flying Service Co., Ltd.-1988 • Toyota to launch ski boat line Ansoff Matrix-Toyota
  8. 8. BCG Matrix-Volkswagen Group • Stars-Volkswagen, Audi o Extremely popular brands in Europe and US. o Deliver innovative products to the market every year, with new model releases o Sell most units of all VW brands • Cash Cows-Bentley, Lamborghini o For the high end luxury market which is fairly stagnant o However, these high price vehicles continue to bring in millions every year • Question Marks-SEAT(Fiat 500) o Environmental and social factors related to it and there is a growing market for such vehicles • Dogs-Commercial vehicles such as vans, trucks, and passenger carriers o Produces quality vehicles but the market is very low
  9. 9. Competition-Toyota Competition strategies of Toyota:- • Counter-Offensive Defense-Toyota launched the Lexus to respond to Mercedes attack of introducing Series 190 • Market follower strategy-Toyota launched its first passenger car, the model AA, in 1936, copying the body design of Airflow and the engine of Chevrolet • Flank strategy-During 1973 oil crisis Toyota came up with two fuel efficient models, Corona and Corolla as an answer to Ford’s Model T • Mobile defense-Market broadening by introducing Scion for young adults and marketed it as music events • In 2013, the company edged past General Motors to become the world’s largest carmaker
  10. 10. Volkswagen-Segmentation • Offers car models in Luxury, midsize and compact car segments in India • Example-Polo(compact), Vento & Jetta(Mid-size), Beetle(Luxury) • Volkswagen mainly focus on market segments such as SUV, sedan and hatchback • Volkswagen also has plans for the ultra-low-cost hatchback segment in India
  11. 11. Volkswagen-Targeting and positioning Targeting: • Young executives, businessmen and urban families • Phaeton launched in order to target the niche market in India • Earlier, they had outlets in all major cities but they are now targeting semi-metro cities like Lucknow and Bhopal to expand their target market • Used LinkedIn’s broad reach to connect with professionals • A series of Recommendation Ads inviting community to recommend their favourite Volkswagen model Positioning: • VW has positioned itself as the safety leader also offering lower operating costs and eco-friendly driving • Positioned themselves as a “premium, innovative brand” and the biggest automobile giant • World’s first talking newspaper

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