The document discusses Hindustan Motors, the manufacturer of the Ambassador car in India. It describes how the Ambassador was the leader in car sales until the 1980s as it was the first car manufactured in India. While it was popular for its spaciousness and comfort, it failed to modernize and keep up with competitors. This led to declining sales as it was not seen as up-to-date or high performing compared to new models. The fall of the Ambassador is seen as a case study in how companies can lose market leadership by not adapting to changes in customer preferences and the competitive landscape.

3.  HINDUSTAN MOTORS - One of the original car manufacturers in India,
founded in 1942 by Mr. B. M. Birla.
 Ambassador was a leader in car sales until the 1980s and before liberalization in
India.
 AMBASSADOR - It has been in production since 1958 with few
modifications or changes and is based on the Morris Oxford III model, first
made by the Morris Motors Limited at Cowley, Oxford in the United
Kingdom from 1956 to 1959.
 Ambassador was considered as a definitive Indian car and was fondly
called "The king of Indian roads".

4.  In 1980’s and mid 90’s a man getting out of a Ambassador was easily
assigned to a social status. He was either in public service or a politician.
All the government vehicles were Ambassadors for the good part of pre-
2000 era.
 It was the first car to be manufactured in India, only automobile to ply Indian
roads for more than five decades, had carved a special niche for itself in the
passenger car segment.
 Dependability, spaciousness and comfort factor made it the most preferred car
for Indians till 1980’s.
 The Ambassador's time-tested, accommodating and practical characteristics
made it a truly Indianised car.

5.  Ambassador was not up-to the mark in design and performance compared to
other segments of its competitors in the market.
 Against the standard output of 8-10 cars per employee per annum, the plants
output was as low as 3 cars per employee.
 It just failed to re-invent, align with the audience and update its external
features.
 The weight of the car would probably be the same as any modern sedan but
lacks in evenly distributed weight and does not provide appealing contours
and drivable dimensions.
 Limited advertising campaign by HM.

6.  Product – The product itself had some major issues, which if resolved
would have saved the company from its doom.
 Price – Since price is often considered a proxy for quality and vice-versa,
the company failed to judge the market and price its products competitively,
esp. against the new competitor, Maruti Udyog Ltd.
 Promotion – The company did not advertise its USP correctly and thrived
on word-of-mouth publicity.
 Place – Ambassador was never available as freely as its competitors’
products, with not more than one dealer in the sub-major cities.

7.  Segmenting – The segmentation of consumers was not done, the same product
was being offered to everyone in the market.
 Targeting – In the 80’s and 90’s targeting was done mainly towards government
institutions and cab companies and not general public. Later on many
ambassadors were used for cab purposes and moved out of consumer segment.
 Positioning – Positioned as a government or commercial vehicle only.
 Rattling sounds and rusting was a common problem faced by its owners.
 The fall of Ambassador from a leadership position to a marginal player is a
classic case of marketing myopia

9. • Functionality • List Price
• Brand • Bundling
• Packaging • Credit terms
• Services
Product Price
Promotion Place
• Advertising •Channel
• Sales force • Inventory
• Publicity • Logistics
• Sales promotion • Distribution

10. Better Performance
FUNCTIONALITY
Better Fuel Economy
Reliability
Revamped, lavish Interiors
FEATURES ABS, EPS, Power Windows, Air
Bags, Climate Control
Technical advancements while retaining
CONCEPT
the Old World Charm
Easy Availability through a widespread,
AVAILABILITY
easily accessible dealer network

11. Aggressive pricing strategy keeping in
LIST PRICE
mind the competition
Providing customers with accessories at
BUNDLING
a discounted price .
Collaboration with financial institutions
CREDIT TERMS to provide financing facility to the
customers.

12. CHANNEL Zero Level , One Level
Readily available spares, minimize
INVENTORY
waiting period if any
Timely delivery of vehicles and
LOGISTICS spares from plant to showroom to
customers
Increased number of dealerships,
DISTRIBUTION especially in the metro and Tier 2
cities

13. Print and electronic media
ADVERTISING
including the Internet
Build an efficient sales force, one
SALES FORCE
that is incentive driven
Organize events such as group
PUBLICITY drives, owners’ get-togethers,
competitions etc
Promote sales amongst the right
SALES PROMOTION
target audience.

18.  Project home-ground advantages over foreign players.
 The company should adopt advanced technology engines that provide
better performance and at the same time comply with the latest emission
norms.
 Cash in on its pre-liberalization image of “Maharaja of the Road”.
 Provide an option to the customers to get personalized cars a-la Rolls-
Royce.

19. Royal…Vintage…Undiscovered

20. "Who loves
not wine,
woman and
song,
remains a
fool his
whole life
long.“-
Martin
Luther

21.  We drink beer to party and champagne to celebrate,
but we drink wine for the wine. It is an art form with
its own vocabulary and rules of etiquette.
 What name can better define Wine than Ambassador…
 It’s Royal, It’s Vintage, It’s Smooth, It’s
“THE Ambassador”

22.  From the best vineyards in
the world
 Packing, not only attractive but
preserves the quality of wine.
 Best techniques, authentic
pressing and fermenting vessels.
 As smooth and old as it can get.

23. Why wine?
 Drinkers worldwide are spending half a trillion dollars a year on
wine and spirits.
 Global wine sales boom despite crisis
 Its no longer wine from New World.
 A New World is being born — mainly China and India
 The London-based International Wine and Spirit Research
group (IWSR) ranks China as the world’s seventh largest grape-
based wine producer, and domestic production is increasing
with government support for the new vineyards.
 In India, consumption increased by 170% from 2004 to 2010, and
total surface area under vines doubled between 2007 and 2010,
with predicted expansion of another 56% by 2014, according to
IWSR.

24. Product Price
Place Promotion

25. Product – The
Ambassador
Wine
Wine makes
every meal an
occasion,
every table
more elegant,
every day
more civilized.

26. Price
•To establish a
point of difference
in the consumer’s
mind , that can
clearly connect
with the brand.
• Because its regal
and Luxurious
product, prices are
set in a higher
range.

27. Place
•The Supremacy of the
Wine and for that
matter of the Brand
“Ambassador” itself
says that the place
should be classic, royal
and aristocrat.
•Apart from being
served at luxury Hotels,
restaurants and
dedicated outlets, one
can enjoy it at Café
Ambassador.

28. Promotion
•Consumer
targeting is
essential and it is
also important
that message
caters well.
So Ambassador
wine targets
mostly
connoisseurs
keeping its class
and elevated state
in mind.