Date post: | 07-Aug-2015 |
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Leadership & Management |
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Automobile Sector in India
E > According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 4 million by 2015. > Global Players > resulting in price reduction
S > Price sensitive customers > Fuel efficient carsT > NATRIP (National Automotive Testing and R&D Infrastructure Projects)
CONTEXT
Automobile Sector in IndiaCONSUMER BEHAVIOUR
DECISION MAKING PARAMETERS:
SOCIAL•Road infrastructure•Life style
ECONOMIC
•Income•Loans
POLITICAL
•Govt budget•Taxation
Automobile Sector in IndiaCONSUMER BEHAVIOURDECISION MAKING PARAMETERS:
PRODUCT & TECHNOLOGY
•Road infrastructure•Life style
DEMOGRAPHIC
•Gender •age
GEOGRAPHIC
•Population density
PSYCHOGRAPHIC
•Interests•Opinions
SEGMENTATION BY UTILITY
Family carPremium carUtility vehicle
In 2001, the segment MPV-Multi Purpose Vehicle was new to the Indian customers.
Well established distribution channels and show casing
Direct sales
> exchange offers > discount for large
families
PLACE
Advertisements - ‘BIG B’s in 2001 costing 8 crore INR
Promoting test drives Road shows + Exhibitions Print media ads - leading
national newspapers
PROMOTION
1. PRICE Basic model Versa std - 5.15 Lakhs high price ! High end model Versa SDX - 6 Lakhs
• Poor initial sales 808 units/year in 2002
• Average sales of M800 then 95,924 units/year
PROBLEMS
Price reducedJune 2003 - - - 4 Lakhs INRApril 2004 - - - 3.27 Lakhs INR
2002-03 2003-040
500100015002000250030003500400045005000
1950
4291SALES (UNITS)
2. POSITIONING
Initial Launch 2001:
“Two luxury cars at the price of one”
TV ad endorsed by Amitabh and Abhishek Bachan
PROBLEMS
RECOMMENDATIONS
2. During Re-launch: Only price change and no feature change. So
features could have been improved3.External appearance: Not Appealing4. Economic value to customer: with more mileage, diesel model launch5. First mover advantage