3. The Indian auto industry is one of the largest in the world with an annual
production of 21.48 million vehicles in FY 2013-14.
The automobile industry accounts for 22 per cent of the country's
manufacturing gross domestic product (GDP).
Sales of commercial vehicles in India grew 5.3 per cent to 52,481 units in
January 2015 from a year ago, according to Society of Indian Automobile
Manufacturers (SIAM).
The Government of India encourages foreign investment in the automobile
sector and allows 100 per cent FDI under the automatic route. Excise duty on
small cars, scooters, motorcycles and commercial vehicles was reduced in
February last year to 8 per cent from 12 per cent to boost the ‘Make in India’
initiative of the Indian government.
4. Market break-up by production volume
• Two wheelers dominate production volumes; in FY15, the segment accounted for
about 79.40 per cent of the total automotive production in the country
• India is the world’s second-largest two wheeler manufacturer and fourth-largest
producer of commercial vehicles
• A unique feature of Indian auto sector is the presence of three wheelers which are a
form of public transportation equivalent to taxis
79.8
13.7
3
3.9 Two-Wheeler
Passenger Car
Commercial
Vehicle
Three-Wheeler
5. Ashok Leyland is the 2nd largest commercial vehicle manufacturer in India, 4th
largest manufacturer of buses in the world and 16th largest manufacturer of
trucks globally
It sells about 60,000 vehicles and about 7,000 engines annually.
It is the third largest commercial vehicle company in India in the Light commercial
vehicle (LCV) segment with a market share of 20.17% (2014-15).
Ashok Leyland has presence in the entire truck range starting from 7.5 tons to
49 tons. With a joint venture with Nissan Motors of Japan. The company made
its presence in the Light Commercial Vehicle (LCV) segment (<7.5 tons) in the
year 2013
The annual turnover of the company was USD 1.7 billion in 2013-14. Selling
89,342 medium and heavy vehicles in 2013-14, Ashok Leyland is India's largest
exporter of medium and heavy duty trucks.
6. M & H Commercial Bus
M & H Trucks
Light Commercial Vehicle
Defense Vehicle
Power Solution
50.6
22.58
20.17
3.32 3.29
Market Share in terms of
volume in LCV category
Tata Motors
Mahindra &
Mahindra
Ashok
Leyland
Eicher
7. STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
• Durability of products.
• Backed by Hinduja Group.
• Strong presence in
commercial market
• Low Confidence at
dealership.
• No Promotion & Advertising.
• Higher price than
competitors.
• Hinduja Finance.
• Rising sale of LCVs.
• Joint Partner Nissan’s
Technology.
• Complex financing options.
• More variants from
competitors.
• Attractive discounts from
competitors.
Negative
Internal
factors
External
factors
Positive
8. Research Design:
Exploratory cum Descriptive
Sampling Technique:
Convenience Sampling
Data Collection:
A survey of 106 sample size is conducted.
The place of study is Kolkata.
Data collection source:
Primary and secondary data
Data collection tools:
Questionnaire
Personal Interview
Statistical tools:
“Friedman’s Test” to rank the factors influencing purchase
decision.
Scaling Technique:
Likert Scale
RESEARCH METHODOLOGY
9. The objective of this research is to
Identify the key factors influencing purchase
decision.
Devising a positioning strategy for Ashok
Leyland-PARTNER
11. Q. Are you aware of the vehicle Partner?
74
18
Awareness
Not Aware
Aware
12. Q. What are the criteria you consider while making a purchase? Rate
them according to the importance level.
Friedman Test
Descriptive Statistics
N Mean Std. Deviation Minimum Maximum
Brand 106 3.15 .741 1 5
Riding comfort 106 2.51 .636 1 4
Engine 106 4.10 .515 3 5
Load cap 106 4.38 .668 2 5
equipment 106 2.59 .687 1 4
Fuel efficiency 106 4.06 .454 2 5
Low maintenance 106 3.38 .593 2 5
After sales
services
106 4.61 .562 3 5
Safety 106 3.02 .478 2 5
Resale value 106 2.47 .693 1 4
price 106 4.10 .600 2 5
Null hypothesis:-All the attributes have same distribution.
Alternative hypothesis:-All the attributes do not have same
distribution.
13. FriedmanRanks
Mean Rank
Brand 4.84
Riding comfort 2.83
Engine 8.03
Load cap 8.85
equipment 3.17
Fuel efficiency 8.00
Low maintenance 5.46
After sales
services
9.49
Safety 4.30
Resale value 2.99
price 8.03
Test Statisticsa
N
106
Chi-Square 695.100
df 10
Asymp. Sig. .000
a. Friedman Test
Result: the chi-square value for the Friedman test is 695.100 with
P value .000 < .05 .so our null hypothesis is rejected at 5% level of
significance and we infer that all the attributes do not have same
distribution.
14. What is positioning?
A marketing strategy that aims to make a brand occupy a
distinct position, relative to competing brands, in the mind of
the customer. Companies apply this strategy either by emphasizing the
distinguishing features of their brand or they may try to create a
suitable image through advertising.
Devising a positioning strategy
Steps involved:
1
•Identification of
competitive
advantages
2
•Choosing the right
competitive
advantage
3
•Value proposition
18. After sales service, Load carrying capacity, Fuel Efficiency, these
are the most important factors while considering a LCV purchase.
TATA 407 and TATA 709 is the most preferred vehicle in the
market.
Most people are not aware of the product due to low product
visibility on the road and less brand awareness in Light
Commercial Vehicle segment. 74% of the respondents were not
aware of “Partner”.
Tata has competitive advantage in after sale service and price
where as Mahindra has in Engine while Ashok Leyland has
advantage in fuel efficiency and load carrying capacity.
19. Ashok Leyland should focus on factors like after
sale service, fuel efficiency and load carrying
capacity during promotion as these factors are
most important in influencing purchase decision.
Fuel efficiency and Load Carrying Capacity are
the USP ’ Unique Selling Proposition' characteristics
that can be communicated to have an edge over
its competitors or to influence potential buyers.
The company should focus on creating brand
awareness about the product.
