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Segmentation of Indian Car Market
By Group I (Gauhati University, D.B.A.) MBA II Sem
Kumari Neelam (01) Mithusmita Kalita (13) Himashree Dutta (14) Hemangi Patgiri (26) Debapriya Saha (27) Priyanka Mahanta (33)
OBJECTIVES
•To study the growth factors of the company•To study the different operators of the market•The marketing mix of the product•To study the suitable segment to launch the car.•To revive and launch an old brand (Ambassador) as a
new product.
Introduction
•Emerging as one of the world’s fastest growing passenger car markets.
•Constitutes around 80% automobiles sales.•Rising per capita income and changing demographic
distribution are conducive for growth.•Constitutes almost 70% of potential buyers.•Very competitive with almost every global
manufacturer being present in the country.
CLASSIFICATION OF CAR SEGMENTS(according to size)I) MINI : Maruti –800,Tata NANO
II) COMPACT : Hyundai SANTRO / i-10 / GETZ
III) MID SIZE : Hyundai ACCENT , Maruti ESTEEM
IV) EXECUTIVE : Skoda OCTAVIA, Toyota COROLLA
V) PREMIUM & LUXURY : Mercedes BENZ C-Class, BMW 3 Series.
Key Players in the Indian Auto Industry
Market Share in the Current Scenario
According to SIAM, the Society of Indian Automobile Manufacturers of India, the market share of major passenger vehicle manufacturers are:
Criteria for Market Segmentation
Contd.
TargetingDEMOGRAPHIC : • Income Group : > Rs 15,00,000 /-pa• Age Group : > 30 yrs• Older Married with / without children
GEOGRAPHIC : • Metros & Tier I Cities
BEHAVIORAL : • Primary Benefit : Quality• Attitude towards product : Enthusiastic
PSYCHOGRAPHIC : • Inclination towards COMFORT, STYLE, POWER• Urban A1 & A2• Westernized Lifestyle• Ambitious Personality
Product
Service
People / Personnel
Channel
Image
Main focus on QUALITY & LUXURY
Highly CUSTOMIZED
Engine Variants (cc, bhp)
Engine Type (Petrol, Diesel, CNG)
Interiors & Finish
Colors & Exteriors
Accessories & Gadgets
Seating
Combination of COMFORT & STYLE
AT HOME SERVICE
•Home Pick-Up & Delivery After Service
•Service Stations in 15 cities (Metros & Tier I)
•Continued Customization
•Spare parts at a phone call !
Company Owned SHOWROOMS in 15 Targeted Cities.
PROMOTIONAL CALLS to the targeted customers.
DIAL FOR DETAILS ( Customer can call / email Ambassador to send a salesperson for Details & Customization Demo)
Qualities to be inculcated in Personnel at all levels:
•Courtesy•Reliability•Responsiveness•Communication•Competence•Credibility
Planned Differentiation by
• EXCLUSIVITY
• QUALITY
• LUXURY
• AUTHORITY
• AFFLUENCE
AMBASSADOR CR
EXCLUSIVE PRESTIGE COMFORT
CUSTOMISATION
QUALITY
LUXURY
AUTHORITY
AFFLUENCE
STYLE
1.Mercedes-Benz S-Class (81 Lacs)
2.Audi A-8 (73-87 Lacs)
3.BMW 6 & 7 Series (73-85 Lacs)
PRICE – QUALITYHIGH PRICE – LOW QUALITY
HIGH PRICE - HIGH QUALITY
MERCEDES BENZS-CLASSAUDI A-8BMW 6 & 7 SERIESAMBASSADOR CR
LOW PRICE – LOW QUALITY
LOW PRICE - HIGH QUALITY
CUSTOMIZATION – PRICEHIGH CUSTOMISATION – LOW PRICE
HIGH CUSTOMISATION – HIGH PRICEMERCEDES BENZS-CLASSAUDI A-8BMW 6 & 7 SERIESAMBASSADOR CR
LOW CUSTOMISATION – LOW PRICE
LOW CUSTOMISATION - HIGH PRICE
Product Scope : Long-Term
Product attributes :Sophisticated, Customized to customer use, Stylish, High Price, Excellent after-sales service.
Quality : High
Uses : To make a statement / a status symbol, a comfortable, luxurious mode of transportation.
Users :Elite, Power Hungry, Status conscious segment
Country of origin :India
Product Variety –Customized Cars
Quality –Superior performance and conformance quality
Features – Gadgets like GPS device, night vision will be provided
Brand Name –Ambassador CR
Services – HM already have service centres across the country
List Price –Start from Rs 75 lacs.
Payment Period –
• Custom made finance schemes & payment periods according to customer requirements.
Credit Terms –
• Credit will be given to government authorities on bulk order.
Sales Promotion –Incentive to Sales executives.
Advertising –In auto shows and in auto magazines.
Direct Marketing
Public Relation- Sponsoring and organizing corporate events.
•Direct Marketing.
• Inventory –Made on order. Hence no inventory.
• Locations –In India as well as exported.
Conclusion
Since the company is entering into an already existing car market, the company would go for the revival of Ambassador, an established brand as the strategy. The company is entering into the luxury market, which has the maximum growth potential in the Indian car market.