N.L. Dalmia Institute of Management Studies and Research

Positioning of Car Horn

Submitted By:-

Saurabh Chandak 307 Sumit Jain 322 Harish Khanang 330 Abhishek Mundhada 339 Seema Umashankar 350

Submitted to:-

Prof.R.Subramanian

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CONTENT

Sr. No. Topic Page No.

1 Introduction. 2

1.1 History of Car horn. 2

1.2 Uses of car horns. 4

1.3 Types of car horns. 4

1.4 Car horns. 6

1.5 Why positioning? 8

2 Identifying market segments and target markets. 8

2.1 Market segmentation 8

2.2 Targeting 10

2.2.1 SWOT analysis of JBL horns(Harmon international) 10

2.3 Market positioning 11

3 Market positioning of JBL car horn 14

3.1 Identifying competition 14

3.2 Points of parity and point of differences. 15

3.3 Brand mantra 15

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1. Introduction

1.1 History of Car horns

Car horns have become a part of everyday life. Horns and automobiles are practically synonymous. One can hardly find an automobile without a horn. Car horns date back to the earliest of horseless carriages. In the early 1800's, steam carriages were becoming popular in Britain. For the safety of pedestrians and animals, a law was passed stating that "…self-propelled vehicles on public roads must be preceded by a man on foot waving a red flag and blowing a horn.” Of course, it did not take long to realize that a horn in the automobile itself, operated by the driver, was much more efficient.

In the late 1800's motorists actually had their choice of several signaling devices including bulb horns, whistles, and bells. In America, most chose bells. Despite the noise made by these devices, they were considered a quieter alternative to the clatter of horses' hooves and the bouncing of metal carriage wheels on cobblestone. In the early 1900's the bulb horn, first introduced in France, became popular in America. Its sound was considered more novel and penetrating than the bell. By 1910 some people were calling for a more effective warning device, one that could be heard at least an eighth of a mile ahead. Manufacturers responded with a variety of whistles, chimes, sirens, and horns, some of which ran off exhaust gases. The Sireno, named after Greek mythological creatures that lured mariners to destruction with the irresistible charm of their song, was advertised as a "one-mile signal". Another device, called the Godin, was publicized with the slogan "You press as you steer and

1907 Auto Horn ad

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your pathway is clear.”

One of the more popular car horns of the 1910's and 1920's was the Gabriel, named after the horn-tooting angel. The Gabriel was a multi-toned exhaust horn whose sound was touted as being both powerful and pleasing to the ear. Another popular horn was the Klaxon, whose name was derived from the Greek word klaxo, meaning "to shriek". The Klaxon produced its sound with an electrically powered vibrating metal diaphragm. The Klaxon was the first horn to need "just a touch" rather than be sounded continuously, to clear the path for the automobile. The Klaxon-type diaphragm horn has evolved over the years and is the basis for today's modern diaphragm horns. Manufacturers have experimented with the diaphragm and sound chamber to produce a variety of sounds. Arguably the most memorable is the "Aoogha" sound of the horns on the Model T and Model A Fords of the 1920's and early 1930's. Over the years, there have been many studies and designs in an attempt to produce horns that are pleasing to the ear but still able to penetrate the low frequency rumble of traffic noise. Up until the mid 1960's most American car horns were tuned to the musical notes of E flat or C. Since then, many manufacturers have moved up on the scale to notes F sharp and A sharp.

Background traffic noise has continued to increase and at the same time, auto manufacturers have prided themselves on designing cars to reduce interior noise to near zero. They have been so successful in fact, that even the sirens of emergency vehicles, which are much louder than conventional horns, cannot be heard in an auto with windows rolled up and the air conditioning on. Even with the windows rolled down, at high speeds the background interior noise increases dramatically, detracting the user's ability to hear signalling devices. Pedestrians and residents along city streets however, have no problem hearing automobile horns, and have prompted numerous laws over the years dealing with their use. By 1912, a number of cities had laws on the books requiring motorized vehicles to have audible warning devices, yet at the same time limiting their use within city limits. Throughout the 1950's, 60's, and 70's, several states experimented with legislation attempting to regulate the operation of automobile horns, while still allowing their legitimate use. As a result, there are still many local and regional laws in effect today.

With the introduction of the electronic COGApa, car horns have finally reached the next generation and have entered the digital age.

COGApa is a novelty device and is not intended, nor should it be used, as a replacement for your standard automobile horn or as a signalling device. COGApa is not intended for operation in a moving vehicle. Check your local ordinances governing use of this product. Please use COGApa in a

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respectable and responsible manner at all times. And have fun!

1.2 Uses of Car Horns:-

The idea behind car horns has always been to alert other motorists. Horns are featured on almost every vehicle and all vehicles on the highway require a working horn.

Horns come in many shapes, sizes, and tones. On vehicles, horns are normally tuned to a certain pitch to help listeners identify the type of vehicle honking. Usually smaller vehicles, like cars and motorcycles, come equipped with higher pitched horns, whereas larger vehicles, like trucks, trains, and boats, come with lower pitched horns.

When replacing or upgrading a car horn you have a lot of choices that will make your car louder, different, and distinguished: starting from small direct-drive air horns and musical horn systems to outfitting your car with high-pressure truck or train horns.

1.3 Types of Car Horns:-

1. Air Horns

An air horn is an apparatus that makes a loud noise from a pressurized air tank and air compressor. Air horns are typically connected by the wires from the original horn. Decibels do vary by different air horns. Most air horns work with the wiring in most cars and 12-volt vehicles. You can purchase air horns at automotive parts stores, such as O'Reilly Auto Parts or AutoZone.

Salient Features:

Free from electrical hazards. Increase the life of the battery.

Made from rugged parts for long life and low maintenance costs.

Replacement of critical components is less due to low wear and tear.

Spare parts easily available.

Easy fitment.

Cost – effective.

High frequency.

Long life period.

The Air Horn Assembly comprises of the following parts

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Horn body. Nylon tube assembly.

Lever type switch or 12 / 24v solenoid valve.

Kit assembly.

3-way connector.

Required fasteners

1. Electric Horns

As their name implies, electric horns are powered by electricity. The horn produces either a low- or high-pitched sound. The device attaches to any car with a 12-volt system. Electric horns are available in a variety of auto parts stores, including Auto Barn or AutoZone.

Salient Features

Water spray proof. Wide operating voltage range (10v to 14.5v for 12v horns, 22v to 26v for 24v horns).

Designed as per is standards.

High quality diaphragm.

Corrosion resistant.

Stylish design.

Suitable for 2/3/4 wheelers, LCVs & HCVs.

2. Musical Horns

Musical car horns are considered accessories, replacing the standard "beep" from your vehicle's stock horn with a sample of music or sound. Before considering this modification, you will need to check the department of motor vehicles in your state for the maximum decibel level that the horn needs to have by law.

Choosing the Right Car Horn Upgrade

Selecting the right horn for you can be a tough decision.

It’s usually a good start to know what’s out there before you begin. We’ll outline a few of the choices here with their pros and cons to help you find what you’re looking for.

Electric Horns

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Pros: Simple and rugged; very small form factor.

Cons: About the same loudness as a stock horn (just different tones).

Direct Air Horns

Pros: Small form factor; doesn’t require and air tank, louder than a stock horn (reaching up to 135dB compared to the 115dB stock standard); available in different tones and even musical melodies.

Cons: Not as loud as other car horn upgrades.

High Pressure Air Horns

Pros: Relatively small (require a small air tank); much louder than stock horns; available in different tones.

Cons: Higher pitch than train or truck horns.

Truck Horns

Pros: Distinctive low pitch sound; louder than stock horns.

Cons: About the same size as train horns without as powerful of a sound.

Train Horns

Pros: Insanely loud (louder to the human ear than all other types of car horns); distinctive low-mid pitch.

Cons: We can’t really think of any

1.4 Car horns:-

• Runs on car battery

• Standard voltage 12 volts

• Car horn is by default fitted in the car ex. factory

• Every package includes 1 High and 1 low intensity horns. (for clarity not for loudness)

• It comes in 2 varieties simple and fancy varieties.

Strong tone

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Strong tone: - - 350/415 Hz, - 113 dB (A) @ 2m

Description:-

Fully shaped oscillator for optimum sound propagationOptimum ratio of size and performanceSlim, matt black design with a red membrane

Special features:-

-Effective sound

-Guaranteed brand quality

-Practice proven service life

Sharp tone

- 415 Hz / 350 Hz

Description:-

Sporty design with sturdy yellow protective grillePenetrating tone for more safety in road trafficIdeal in tough off-road use

Salient features:-

-Corrosion protection

-Splash water-proof (IPX4K)

Super Tone Horn

Description:-

Penetrating, long-range tone for additional safetyClassic sound with high sound densityCompact and space-saving design

Salient Features:-

-Corrosion protection

- Teflon pill to protect against humidity

- Additional electric interference suppression with diode

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Horn and how it works-

"Horn" may also refer to nearly any wind instrument with a flared exit for the sound.

An air horn consists of a flaring metal or plastic horn or trumpet attached to a small air chamber containing a metal reed or diaphragm in the throat of the horn. Compressed air flows from an inlet line through a narrow opening past the reed or diaphragm, causing it to vibrate, which creates sound waves. The flaring horn serves as an acoustic "transformer" to improve the transfer of sound energy from the diaphragm to the open air, making the sound louder. In most horns it also determines the pitch of the sound. When vibrated by the diaphragm, the column of air in the horn vibrates in standing waves. The length of the horn determines the wavelength of the sound waves generated, and thus the fundamental frequency (pitch) of the note produced by the horn. The longer the horn, the lower the pitch.

1.5 Why Positioning?

Positioning is the act of designing a company’s offering and image to occupy a distinctive place in the minds of target marketing.

The goal is to locate the brand in the minds of consumer to maximize the potential benefit to the firm.

Today to compete effectively it is necessary to embrace target marketing .Instead of scattering marketing efforts it is better to focus on those customers we have greater chance of satisfying .

This type of effective target marketing has following three steps:

1. Segmentation.2. Targeting.3. Positioning.

2. Identifying Market Segments and Positioning Target Markets.

A Company cannot serve all customers in a broad market – customers are too numerous and diverse in their requirements. The company needs to identify the market segments that it can serve more effectively.

Identify and profile distinct group of buyers who might require separate products or marketing mixes – market segmentation.

Select one or more market segments to enter – market targeting. Establish and communicate the products’ key distinctive benefits to the target market – market

positioning.

2.1 Market Segmentation:

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A market segment consists of a large identifiable group within a market with similar wants, purchasing power, geographical location, buying attitudes or buying habits. For example, for an auto company might have four broad segments: customers seeking basic transportation or high performance or luxury or safety.

Each segment buyers are assumed to be quite similar in needs and want.

Levels of market segmentationMarket segmentation is an effort to increase a company’s precision marketing.

Mass marketing :In these sellers engages in mass production, mass distribution and mass promotion of one product for all buyers. Model T-ford, Coca-Cola etc are example of mass marketing. Mass marketing creates a large potential market, which leads to the lowest cost, which in turn can lead to lower prices or higher margins. But with the increasing splintering of the market, mass marketing gets more difficult.

Segment Marketing : A market segment consists of a large identifiable group within a market with similar wants, purchasing power, geographical location, buying attitudes or buying habits. For example, for an auto company might have four broad segments: customers seeking basic transportation or high performance or luxury or safety.

Market Segmentation of our Product:

Geographic segmentation We are doing segmentation by geographic location. In our project we are trying to divide our market into types1 Urban area2 Rural AreasRural area: By our observation We See that Rural people wants to us fancy types of horns. We surveyed there and find that they want to use horn to attract the people near them. They have to show that they have big car so for them our focus will be fancy hornUrban area: They generally preferred standard horn. They use horn for traffic only

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Demographic segmentation Industry: which industries to serve Company size: what size companies to serve Location: what geographical areas to serve Income: Generally due to income people use three types of car

1. Small cars:1) it has low decibel frequency2) Low cost preferable to low level income people.2. SUV:1) It is use by middle aged group. 2) Cost is not high.

3. Large car:1) It has high frequency.2) Sharp horn and high Cost.

2.2 Targeting

The second step in the product promotion process, market targeting refers to picking a specific group or small set of groups to which a business will advertise. It is based on the idea that, because it's not really possible to make or do something that will please everyone, a business has to specialize. Companies select an advertising group to strengthen their brands, as well as to get an idea of potential sales for production or financing purposes. They can use three main approaches for this: universal, selective or concentrated. It is common for an organization to reevaluate its target groups and related campaigns over time because markets are always somewhat flexible.

Market Targeting of our Product:• Small passenger car

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• Low decibel and standard horn. • Generally low cost

• SUV’s • High decibel horn • More sharp sound

• Luxury car • Highly standardized • More clear and harmonic sound

2.2.1 SWOT analysis of JBL (Harman International)

Strength :

We are pioneer/JBL and we are diversifying the company by entering into car horn business Knowledge of product ,market, brand image , readymade distribution channel Tagline, Mission and Vision should be in sync with market positioning of car horns

Weakness:

We don’t have experience in car horn segment

Threat :

Threat is that competitors are matured and they have good grip/capture/knowledge over markets

Uncertainty /irregular in consumer demand and for business customer’s horn sales depend car sales directly

Opportunity:

Price band is range bound

Reduce price will help

Existing customer can easily influenced due to goodwill

2.3 Market Positioning:

Steps for Positioning:

Positioning requires that marketers define and communicate similarities and differences between their brand and its competitors .Specifically deciding on positioning requires:

- Determining a frame of reference by identifying the target market and the relevant competition.

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- Identifying the optimal Points of Parity (POP) and Points of Differentiation (POD).

- Creating a Brand Mantra to summarize the positioning and essence of the brand.

Differentiation Tools

Conformance Quality

Buyers expect products to have a high conformance quality, which is the degree to which all the produced units are identical and meet the promised specifications. The problem with low conformance quality is that the product will disappoint some buyers.

DurabilityDurability, a measure of the product’s expected operating life under natural or stressful conditions, is a valued attribute for certain products. Buyers will generally pay more for products that have a long-lasting reputation. However, this rule is subject to some qualifications. The extra price must not be excessive. Furthermore, the product must not be subject to rapid technological obsolescence.

ReliabilityBuyers normally will pay a premium for more reliable products. Reliability is a measure of the probability that a product will not malfunction or fail within a specified time period.

ReparabilityBuyers prefer products that are easy to repair. Reparability is a measure of the ease of fixing a product when it malfunctions or fails. Ideal reparability would exist if users could fix the product themselves with little cost or time.

StyleStyle describes the products look and feel to the buyer. Buyers are normally willing to pay a premium for products that are attractively styled. Style has the advantage of creating distinctiveness that is difficult to copy. On the negative side strong style, does not always mean high performance. We must include packaging as a styling weapon, especially in food products, cosmetics, toiletries, and small consumer appliances. The package is the buyer’s first encounter with the product and is capable of turning the buyer on or off.

DesignAs competition intensifies, design offers a potent way to differentiate and position a company’s products and services. In increasingly fast-paced markets, price and technology are not enough. Design is the factor that will often give the company its competitive edge. Design is the totality of features that affect how a product looks and functions in terms of customer requirements. Design is particularly important in making and marketing durable equipment, apparel, retail services, and packaged goods. The designer has to figure out how much to invest in form, feature development, performance, conformance, durability, reliability, reparability, and style. To the company, a well designed product is one that is easy to manufacture and distribute. To the customer, a well designed product is one that is pleasant to look

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at and easy to open, install, use, repair, and dispose off. The designer has to take all these factors into account.

Services DifferentiationWhen the physical product cannot easily be differentiated, the key to competitive success may lie in adding value added services and improving their quality. The main service differentiators are ordering ease, delivery, installation, customer training, customer consulting, and maintenance and repair.

Ordering EaseOrdering ease refers to how easy it is for the customer to place an order with the company.

DeliveryIt refers to how well the product or service is delivered to the customer. It includes speed, accuracy, and care attending the delivery process.

InstallationIt refers to the work done to make a product operational in its planned location. Differentiating at this point in the consumption chain is particularly important for companies with complex products. Ease of installation becomes a true selling point especially when the target market is technology novices.

PERSONNEL DIFFERENTIATION

Companies can gain strong competitive advantage through having better trained people. Better-trained personnel exhibit 6 characteristics:

Courtesy : Respectful, friendly and considerate Competence : Skill and knowledge Credibility : Trustworthy Reliability: perform service consistently and accurately Responsiveness: Quick response to customer problems Communication : Make an effort to understand the customer and communicate clearly.

CHANNEL DIFFERENTIATIONCompanies can gain competitive advantage through the way they design their distribution channels’ coverage, expertise and performance.

Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind.

The end result of positioning is the successful creation of a market-focused value proposition, a cogent reason why the target market should buy the product.

Positioning According to Rise and Trout:

Positioning starts with a product. A piece of merchandise, a service, a company, an institution, or even a personBut positioning is not what you do to a product. Positioning is what you do the mind of the prospect. That is, you position the product in the mind of the prospect.

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A competitor has three strategic alternatives:

The first is to strengthen its own current position in the consumer’s mind. Avis acknowledged its second position in the rental cars business and claimed: “We are number two. We try harder.”

- Grab an unoccupied position. United Jersey Bank, noting that giant banks were usually slower in arranging loans, positioned itself as “the fast-moving bank”

- Ries and Trout argue that, in an over advertised society, the mind often knows brands in the form of product ladders, such as Coke-Pepsi-RC Cola. The top firm is remembered best. The marketer should identify an important attribute or benefit that a brand can convincingly own.

- The fourth strategy is the exclusive club strategy. Eg. – The idea that it is one of the big three.Each company must decide how many differences (eg. benefit, features) to promote to its target customers. Our main difference will be pricing. Many marketers advocate promoting only one central benefit - a company should develop a unique selling proposition (USP) for each brand and stick to it. Each brand should select an attribute and tout itself as “number one” on that attribute.

Number-one positioning include

best quality best service lowest price best value safest fastest most customized most convenient most advanced technology

Not everyone agrees that single-benefit positioning is always best. Double-benefit positioning may be necessary if two or more firms claim to be best on the same attribute.

The companies must avoid 4 major positioning errors:

1. Under Positioning: some companies discover that buyers have only a vague idea of the brand. The brand is seen as just another entry in a crowded marketplace.

2. Over Positioning: buyers have too narrowed an image of the brand. Eg. – consumer might think that diamond rings at Tiffany start at $5,000 when in fact tiffany now offers affordable rings starting at $1,000

3. Confused Positioning: confused image of the brand resulting from the company making too many claims or changing the brand’s positioning too frequently.

4. Doubtful Positioning: buyers may find it hard to believe claims in view of the product’s features, price or manufacture.

The different positioning strategies that are available are: Attribute positioning: Company positions itself on attribute, such as size or number of years in

existence. Benefit positioning: - The product is positioned as a leader in a certain benefit.

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Use or application positioning: - Positioning the product as best for some use or application User positioning: - Positioning the product as best for some user group Competitor positioning: - The product claims to be better than the competitor Product category positioning: - The product is positioned as the leader in a certain product

category Quality or price positioning: - The product is positioned as offering the best value

Communicating the company’s positioning: Once the co. has developed a clear positioning strategy, it must communicate that positioning effectively.

3. Market Positioning of JBL (Harman International) car horns

3.1 Identifying Competitors:

Strong Technological base Commitment to quality Narrow price range Original equipment manufacturers Wide product range

Market Research: Hella pvt ltd. – current market leader. Tie up with Top German automobile companies. Major customers include Tata Motors, Maruti Suzuki, Mahindra & Mahindra REVA, Ashok

Leyland, Eicher, Hyundai, Honda, General Motors, Ford, IFB, Behr, Lumax, IJC, Nippon etc. Best in quality. Price range Rs. 400-525

3.2 Points of Parity and Points of Difference:

Points of Parity:

1. Runs on car battery

2. Standard voltage 12 volts

3. Car horn is by default fitted in the car ex. factory

4. Every package includes 1 High and 1 low intensity horns. (for clarity not for loudness)

5. It comes in 2 varieties simple and fancy varieties

Points of Difference:

1. We provide only 2 types of horns Soft tone Hard tone

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2. Soft tone horns are: More clear Low decibel

3. Hard tone horns High decibel Standard

3.3 Brand Mantra:

“World class horns at Affordable Price”

How this positioning will help us in Marketing?

There are many players in the Car Horns industry. Major market share is enjoyed by the international giants BOSCH Horns and HELLA Horns. There are many Indian companies also operating in Automobile Horns industry. Major Indian players include ROOTS Horns, Jupiter International, and Silver Auto etc.

These players are into manufacturing and selling of Car Horns, 2 Wheeler horns, Auto horns, Truck horns and Industrial horns.

Major market share is eaten by BOSCH and HELLA. Majority of automobiles manufacturers’ source horns for their vehicles from these 2 international giants.

There are Lot of ties ups between hella and the manufacturer. Almost with all company it has ties up.

Car horns are normally not advertised on various media. Most of the companies directly sell their products to automobile manufacturers through B2B sales. Distributors and retailers play major role in retail sales. Customers have very little knowledge about technical specifications of horns; they are driven by either the brand name or retailer’s opinion. Retails will advocate the horns in which they earn maximum margin. Hella is the market leader in retail sales of horns as it gives the highest margin of 30% to retailers.

Cost per unit = Rs. 200

Price for Automobile Manufacturers (Keeping 10% margin) = Rs. 220

Price for the wholesaler (keeping 15% margin) = Rs. 230

Price for Retailers (Giving 20% margin to distributors and wholesalers) = Rs. 240

Price for Customers MRP (Giving 35% margin to retailers) = Rs. 324

Other competitors are providing same horns to customers at Rs .400

So here we are positioning our product on basis of lower price without compromising in quality.

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Other Positioning Strategies:

Customer base It is important to tie up with leading car manufacturing.

Online appearance All the description of horns should be present on the website so that customer can verify the

detail. Product design

Attractive colors of horns should be used so that our product should look attractive. Market appearance

In order to display technological superiority product should be present in the auto expo. Advertisement can also add to benefit as consumers are usually not aware of the brand names.

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