ICT Role in 21st Century Education & its Challenges.pptx
Verna sx4 - A comparison using Micro Economics concepts
1. WHICH CAR WILL
VROOM AWAY
Group 4
Ashish Bhasin (8), Ashish Dubey (9), Benz Thomas (11),
Pratik Sharma (32), Vivek Sharma (47)
2. A PROJECT TO UNDERSTAND
CAR BUYING PATTERN FOR
HYUNDAI VERNA FLUIDIC
AND MARUTI SUZUKI SX4
USING MICROECONOMICS
CONCEPTS
A project for Dr. Biswajit Nag
by Group 4, Section A (MBA IB –PT – 2012-15)
3. I KNOW A LOT ABOUT CARS. I CAN
LOOK AT ANY CAR’S HEADLIGHTS AND
TELL YOU EXACTLY WHICH WAY IT’S
COMING.
Mitch Hedberg
4. CONTENTS
Indian four wheeler market
Attributes being promoted
Sales figures
Verna and SX4 Demand Curve
Verna and SX4 Price Elasticity
Price sensitivity analysis
Conclusion
5. Indian four wheeler industry
Source: SIAM
• Installed capacity in millions – 3.88
• Passenger Vehicles - 15.07%
• Major players –
Mahindra, Hyundai, Maruti, Tata, For
d, Renault, Honda, Nissan, etc.
• Models –
Alto, WagonR, Dsire, Bolero, Swift, i
10, Indica +
vista, Innova, Verna, SX4, etc.
6. Total Sales Source: www.motorbeam.com
TOTAL SALES – Jan-Sept 2012
City
18%
Verna
32%
Vento
14%
SX4
6%
Verito
9%
Fiesta
8%
Rapid
13%
7. Passenger cars manufactured vs GDP
Source: Automotive report by MarketLine
2500.000 1200 www.Indiastat.com
1000
2000.000
800
1500.000
600 thousand units
India GDP*
1000.000
400
500.000
200
0.000 0
2006 2007 2008 2009 2010 2011
8. What do you first consult?
First consultation
previous owners
Online
Friends/relatives
First consultation
Magazines
Auto TV programs
0 5 10 15 20
9. Attributes being promoted
VERNA SX4
• Fluidic design • Gentleman among cars
• Commanding exterior • Amazing driving experience
• Technology with design • Commanding exterior
• Plush interiors
• More features than the
price • Big on mileage
• Loaded with entertainment
• Luxury
• Spacious and comfortable
• Power
• Safety
• Safety
• Power
• Eco Friendliness
15. Verna – price elasticity
% age increase in Verna Number of customers
price from Verna
10 13
20 5
30 2
At a 10% price increase the elasticity is 6.5 i.e >1 more than unit elastic
At a 20% price increase the elasticity is 1.25 i.e >1 more than unit elastic
At a 30% price increase the elasticity is 0.33 i.e <1 less than unit elastic
16. SX4 – price elasticity
% age increase in SX4 Number of customers
price shifting from SX4
10 3
20 16
30 1
At a 10% price increase the elasticity is 1.5 it is more than unit elastic
At a 20% price increase the elasticity is 8 it is highly elastic
At a 30% price increase the elasticity is 0.166 <1
17. Price sensitivity
Y
Rightward shift
Price of Verna
X
O Demand for Verna
18. Conclusions
Verna dominates due to
• Innovation
•Design (fluidic)
• Brand is considered more luxurious
New Elasticity Edge Sales Market
Markets • People will • Verna has and • Monopolistic
for C shift less
from Verna
an edge
over SX4
support competition
due to small
segment than from and other • Both number
SX4 competitors companies players
• B and C
have occupying a
grade cities
comparable major
Sales and market
Service share
network
19. So who is coming for the ride?
All images in the presentation have been
sourced from various contributors on
www.sxc.hu
Thank you