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    BUSINESS TO BUSINESS MARKETING

    WIPRO AUTOMOTIVE ELECTRONICS LTD.

    STARSHIP CRUISE CONTROL SYSTEM

    Institute of Management & Information ScienceBhubaneswar

    TERM-IV/PGDM-SEC A (2010-12)

    SUPERVISOR

    Prof Dr.Saji KB Nair

    Submitted by:-

    NAME ROLL NO EMAIL IDShaikh Imtiaz Trafdar (10dm120) [email protected] Sahoo (10dm063) [email protected]

    B.Shibashis (10dm113) [email protected]

    Mohammad Lal Babu (10dm077) [email protected]

    Ankita verma (10dm110) [email protected]

    Rahul Kapoor (10dm121) --------------

    mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]
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    CONTENTS

    SECTIONS TOPICS PAGE NO.

    SECTION 1: BUSINESS ANALYSIS3

    A. Introduction4

    B. marketing Objectives5

    C. Customer Analysis6

    D. Internal Environment Analysis7

    E. External Environment Analysis8

    F. Competitor Analysis

    9

    SECTION 2:TECHNOLGY ACQUISITION STRATEGY & GENERICMARKETING STRATEGY 10

    A. Technological acquisition strategies1114

    B. Product marketing strategies15- 17

    SECTION 3: THE MARKETING MIX DESIGNS 18

    A. Identify the typical technological problems 19

    B. Brand name for the new industrial product 20

    C. Identify the intellectual property rights 20

    D. Pricing Policy 21-23

    E. Integrated marketing communication programme2425

    SECTION 4: ABSTRACT 26

    SECTION 5:APPENDIX MATERIALS 27

    SECTION 6: REFERENCES 28

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    Business analysis

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    INTRODUCTION

    The report is based on a product based on development of Radar Sensing Technology and its

    application. It presents an overview of the Radar Sensor Technology used in Radar Cruise

    control / Adaptive Cruise Control (ACC) applications in the automobile industry to reduce the

    accident fatality rates. This new technology, called adaptive cruise control, uses forward-

    looking radar, installed behind the grill of a vehicle, to detect the speed and distance of the

    vehicle ahead of it.

    Adaptive cruise control is similar to conventional cruise control in that it maintains the vehicle's

    pre-set speed. The radar sensors installed in a vehicle detect the presence of any object/vehicles

    within a smaller radius and if necessary bring the vehicle to a halt to prevent any type of accident

    without the driver even touching the pedals. However, unlike conventional cruise control, thisnew system can automatically adjust speed in order to maintain a proper distance between

    vehicles in the same lane. This is achieved through a radar headway sensor, digital signal

    processor and longitudinal controller. If the lead vehicle slows down, or if another object is

    detected, the system sends a signal to the engine or braking system to decelerate. Then, when the

    road is clear, the system will re-accelerate the vehicle back to the set speed.

    The radar sensors distributed in front of the car which are mounted invisibly behind the front

    bumper and cover the full car width. Due to this arrangement, range and velocity information as main characteristics of the radar sensor are available across the full car width also at short

    and medium ranges. On one hand, radar sensors emitted wide beams are favorable for angular

    coverage with comparatively few sensors. This leads to cost efficient solutions.

    Wipro Automotive Industry has given rise to the highest levels of product development and

    engineering being implemented in conjunction with technology that is futuristic and cutting-

    edge. It provides automotive industry solutions that drive efficiency while significantly reducing

    production costs. So the radar sensing technology will definitely add a star mark to the

    companys wide array of products.

    http://auto.howstuffworks.com/radar.htmhttp://auto.howstuffworks.com/radar.htm
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    MARKETING OBJECTIVES

    1) Return on investment of at least 15%.The product is new for the market as well as for the company. So the return on investment

    expected from the new product is about 15%. This would help the company to further invest

    in the product and

    2) We aim to achieve an operation profit of over 10% on the total volume of sales.

    3) To increase earnings per share by at least 10% every year for the foreseeable future.Earnings per share is perhaps the single most important topic that a shareholder understand

    before investing money in the market. In fact, because of the importance of earnings toshareholders, a great deal of time is spent developing and evaluating earnings per share

    estimates. The earnings yield is an estimate of the expected return from holding the stock

    especially for a shareholder.

    4) Achieve a market share of 70%, because thisThere is a link between profitability and relative market share and the return a business made

    on its investment. The higher is the market share - the higher is the return on investment. This is

    probably as a result ofeconomies of scale. Product is completely new to the Indian market

    where only imported cars carry this technology so the company has an advantage of gaining a

    considerable amount of market share.

    5) To achieve 80% of customer awareness of our brand in our target markets.The brand awareness goes beyond a customers ability to recognize a brand and correctly

    associate it with a particular product. The result of an effective brand awareness survey sheds

    light on these questions, and results in information that can be used to leverage brand strengths

    against competitors' weaknesses, allowing successful launch and or re-launch of products.

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    CUSTOMER ANALYSIS

    The product is new in the Indian market. So Wipro have to obtain customers for its product. In

    order to know about the customers perception about the new product and what else do they

    expect from it. This would help to improve the technology of the product and make it more

    customers oriented.

    In order to know about the customer reaction towards this new product and what else they need

    & expect from it. The following are some of the company personnel interviewed:

    According to Sudhaker Sahoo, Regional Head, Orissa "The new product simply does

    everything well. It raises the bar for ride and handling on the road and transforms the off-road

    experience. It's the hands-down winner for towing capability and ease. All this will make thedriving experience as a day off to Essel World. This gives any car with this technology absolute

    right choice for families with a sense of adventure."

    According to Mahesh Pande, Orissa head, "It automatically maintains its distance from

    vehicles in front of it even if they slow down within limits. The current systems use radar or

    laser-based (lidar) sensors mounted in the cars front bumper or grille to monitor the road ahead.

    Drivers can establish the following distance between themselves and any cars in front of them by

    selecting one of several interval settings. If the car ahead slows, the adaptive cruise control is

    capable of slowing the car, using some combination of throttle control, transmission

    downshifting and light braking. If the lead car speeds up again or moves to another lane, the

    adaptive cruise returns its vehicle to the preset speed. It is really a wonder technology.

    According to Deepak Kumar Pattnaik, Orissa head, "Radar sensors monitor the speed of the

    vehicle in front of you. When traffic slows, your vehicle adjusts its speed to maintain your

    preferred, preset distance to the vehicle in front of you. Once sensors detect the traffic has

    cleared, your vehicle automatically resumes the set speed. No braking or resetting required.

    Collision warning with brake support can provide another level of awareness. I will definitely

    buy the car with this kind of technology.

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    INTERNAL ENVIRONMENT ANALYSIS

    Wipro Automotive Electronics Group, with more than a decade of experience in the automotive

    domain, offers end-to-end automotive industry solutions like infotainment, body electronics etc.

    Strengths of Wipro Automotive Electronics Group

    The various strengths of the company are as follows

    1. Wipro Automotive Electronics Group, with more than a decade of experience in theautomotive space, offers end-to-end solutions to its suppliers and helps them overcome

    the major obstacles of technology constraint, resource crunch and tight product

    development and maintenance budgets.

    2. Wipro automotive electronics group provides specific solutions in the segments ofInfotainment and Telematics, Powertrain and Vehicle Centric Application and Body

    Electronics and Instrument Clusters.

    3. Wipro has a world class manufacturing facility while maintaining its product quality.Wipro is the world's first company to have achieved a Level 5 Certification in

    Automotive SPICE. Wipro is also a core member of GENIVI Alliance and a premium

    member of AUTOSAR.

    4. Wipro has executed projects in all key manufacturing operation areas like, EnterpriseManufacturing Intelligence, Material Handling Systems Management, Inventory

    Management and Optimization etc.

    Weakness

    1. The main weakness ofWipro is high attrition rate. In Q3, FY11 attrition rate was 21.7per cent. Currently this attrition rate came down to 20.9 per cent in Q4, FY11. But still

    this attrition rate is pretty much high. Company need to counter this high attrition rate.

    2. Wipro is growing slower than competition. Company is unable to develop its market.Company need to tackle this challenge.

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    EXTERNAL ENVIRONMENT ANALYSIS

    The external environment is analyzed as follows

    FACTORS OPPORTUNITIES THREATS

    Political factors With increasing number of road accidents.Government is taking precautions to prevent

    them. So this product will be readily support

    by the government as it will reduce their

    worries.

    ----------------

    Economicfactors

    Economic rate in India is high than the most

    of the other countries. So the opportunity of

    growth is very high.

    Currently inflation rate in India is very high.

    This makes the installation of a new product

    in the car thereby making it more costly.

    Social factors The changing Indian society is very muchconcerned for its safety. As the new product

    makes the roads safer it is expected to be

    accepted by the consumers.------------------------

    Technologicalfactors

    In India, the technology relating to the

    product is not used in the car. This will

    change the face of automobile industry.

    As the customer are unaware of this newtechnology it will be not be an easy taskto make them accept it.

    Environmentalfactors

    The new product does not have anyimpact on the environment. Therefore noproblems will arise with respect to thisfactor.

    ------------------------

    Legal factors

    ------------------------- ------------------------

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    COMPETITOR ANALYSIS

    1. Threat of intense segment rivalrya) Textek is the original Equipment supplier for a range of products to M/s. Ashok Leyland. The

    company is also supplying its products to major brand leaders in the automotive segment like

    M/s.T. V. Sundaram Iyengar & Sons Limited and Roots Group. M/s.Madras Auto Service, a

    TVS group company , distributes all products..of textek.

    b) The Sona Group has technical and marketing alliances with domestic and international

    majors Maruti Suzuki India Ltd (India), Mahindra & Mahindra (India), JTEKT Corporation

    (Japan), Mando Corporation (Korea) etc. The Group's global footprint spans India, Germany and

    the USA. It has a strategic investment in Fuji Auto Tech, Europe which in turn has interests in

    France, Brazil & Czech Republic. Sona Auto Comp Europe & USA provide sales and services

    support to the Groups operations overseas. The Group today employs over 3500 people, and has

    revenues a little in excess of USD 760 million.

    2. Threat of New Entrantsa) Mahindra & Mahindra is a major automobile manufacturer of utility vehicles, passenger

    cars, pickups, commercial vehicles, and two wheelers. M&M has partnerships with international

    companies like Renault SA, France and International Truck and Engine Corporation, USA.

    M&M has a global presence and its products are exported to several countries. M&M Ltd has

    achieved a 41% rise in its auto sales numbers, which stood at 39633 units during July 2011 as

    against 28049 units during July 2010.The companys domestic sales stood at 37323 units during

    July 2011, as against 26303 units during July 2010, an increase of 42%.

    b) Tata Motorsis Indias largest automobile company, with consolidated net profit of 9,274

    crore(US$2.07 billion) in 201011. It is the leader incommercial vehiclesand among the top

    three in passenger vehicles. Tata Motors has products in the compact, midsize car and utility

    vehicle segments. The company is the world's fourth largest truck manufacturer, the world's

    second largest bus manufacturer, and employs 50,000 workers. Since first rolled out in 1954,

    Tata Motors has produced and sold over 4 million vehicles in India.

    http://en.wikipedia.org/wiki/Renaulthttp://en.wikipedia.org/wiki/Renaulthttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Navistar_Internationalhttp://en.wikipedia.org/wiki/Navistar_Internationalhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Commercial_vehicleshttp://en.wikipedia.org/wiki/Commercial_vehicleshttp://en.wikipedia.org/wiki/Commercial_vehicleshttp://en.wikipedia.org/wiki/Commercial_vehicleshttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Navistar_Internationalhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Renault
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    TECHNOLOGY ACQUISITIONSTRATERGY & GENERIC

    MARKETING STRATERGIES

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    TECHNOLOGICAL ACQUISITION

    Wipros need for technological growth is an important consideration when deciding among

    technology acquisition options. Ideally, the company should grow technically from every

    technology acquisition. This is desirable because if the technology acquisition develops internal

    capability the company becomes fewer dependants on others. It also results in minimization of

    costs.

    It will able to deal with problems that arise after the introduction of the new technology and it is

    able to develop its own enhancements of that technology. It also maximizes technology

    investments of the company. This reduces its need to purchase services from others, makes it

    better able to service its own customers in a timely and responsive manner, and increases its

    potential to develop exclusive products or processes which will give it a competitive advantagein the marketplace. The acquisition of new technology has been considered in light of the

    company's plan for growth and to protect the companys financial and legal interest.

    Acquisition Process Statement

    Wipro Automotive Electronics limited has decided to acquire the radar sensing technology for

    the automobiles from the American Association for Motor vehicle Administration. This

    technology which was previously used only for military purposes was implemented into

    automobiles to make the road transportation system safe. This association developed the

    Integrated Vehicle Based Safety System (IVBSS) program which awarded a $25 M contract to

    the University of Michigan Transportation Research Institute (UMTRI) to develop and test a

    new, integrated crash warning system in a fleet of 16 passenger cars and 10 heavy-duty trucks.

    UMTRI will serve as the primary contractor, coordinating the work of the partnership and

    conducting the field experiments. It also aims to accelerate the development, deployment and use

    of intelligent integrated safety systems that use information and communication technologies in

    intelligent solutions in order to increase road safety and reduce the number of accidents on road.

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    Acquisition Process

    Wipro Automobile Electronics Limited must get approval of the acquisition from the American

    Association for Motor vehicle Administration supplying the support. Since the technology to

    be transferred is more complicated and involves higher risk, a Negotiation Team will be sent to

    the American association to finalize the deal.

    1. Acquisition AnalysisWipro Automobile Electronics Limited aims to manufacture the radar sensors for the Indian

    automobile market for the provision of safe transportation system. The company will acquire the

    technology and develop it in its own R&D facility and carter to the market. The company

    acquired the technology with license fee of about 3% of the products produced by the company.

    Though the initial profit will be lower and it will be take some time to recover the amount

    invested, yet the product is expected to be big success in the future due to increasing safety

    concerns among the customers.

    The acquisition to be carried on had been analyzed and recommendations are completed. All the

    resource needed to carry out the project been determined from the project plan prepared. The

    senior management of Wipro has made a decision to acquire the product technology. The

    company had sent a representative to the American Association for Motor vehicle

    Administration. And as per their request a proposal had been sent to them to further negotiate the

    deal. The detail financial analysis for the acquisition has been completed.

    2. Pre-NegotiationBefore the negotiation the acquisition has been completed. All the components required to

    produce the new product exist. Therefore post acquisition no trouble will be faced to

    manufacture it by Wipro. The product has been tested by the American Association for Motor

    vehicle Administration and a few automobile manufacturers abroad have already installed the

    technology in their vehicles. So Wipro has a strong belief in the success of the product in the

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    Indian market. Wipro expects that it will be market leader in the automobile electronics market

    by acquiring this technology.

    The company also negotiated to get some highly skilled personnel from USA to get its own

    employees trained for the technological production. At present only BMW and Volvo provide

    this technology to the premier segment vehicles but no competitor in India is available in the

    middle class passenger car segment. This segment acquires more than 90% of the Indian car

    market.

    3. NegotiationWipro Automobile Electronics Limited appointed a team to negotiate the deal with American

    Association for Motor vehicle Administration to acquire the technology. A set of guidelines was

    drafted to carry out the negotiation on the favour of the company as much as possible. The

    American Association had been chosen to make a deal because they remain in contact with the

    universities and other technical institutes which would help Wipro to constantly update its

    technology. The company bought the license for the technology. The deal was financed by the

    Wipro group themselves. The amount for the deal will be paid in equal installments in five years.

    With a future for technological adaptation in the automobiles the company acquired the

    technology.

    The negotiation includes the technological update till the production continues, by the American

    Association. The association will also help in the training the first batch of Wipros employees

    who will be involved in production. All the rights to production will be handed over to Wipro.

    4. Contract AdministrationThe Contract Administration process involves management of all aspects of contracts, spanning

    the entire life cycle from negotiation through final expiration. Effective administration of

    contracts can directly contribute to risk mitigation, identifying potential opportunities and

    ultimately increased profitability. Because contracts exist in every functional area of the

    company (operations, finance, marketing, HR, etc.), centralized administration offers the greatest

    efficiencies.

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    Contract Administration Processes

    The contract was drafted keeping in mind the following:

    1. Wipro has made a deal with few automobile companies to reduce the risk of acquiringthe technology.

    2. With a growth in the Indian automobile sector and increasing concern for safety thedeal is considered to be a success.

    3. Wipro Automobile Electronics Ltd adhered to corporate governance policies to makethe deal a fair one.

    4. The documents of the deal and the condition put forth by both the parties were signedby the chairman of respective committees.

    5. Providing a common platform to consolidate key contract terms were identified in thecontract documents.

    6. If the American Association come forth with better improvements they will impart itto Wipro at negotiable price.

    7. All the legal requirements of both the countries (USA & India) for the carrying outthe deal were duly complied with.

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    PRODUCT MARKETING STRATEGIES

    Product marketing strategic planning is one of the most difficult or essential part of launching a

    new product. Effective strategic plans so designed have a clear and logical structure that brings

    clarity to the major product marketing issues that has been addressed to ensure that the new

    product delivers real and improving value to the business. Based on our experiences in helping

    clients we have developed a few major product marketing strategies which will be effective to

    carry out the plans. Developing a Product Marketing Strategy is one of the most challenging and

    exciting aspects of product marketing and launching a new product.

    Market Segmentation

    Wipro Automotive Electronics Group has divided the market for the new product into the

    following vehicle segments: Passenger Cars and Commercial Vehicles. The passenger car with

    the installation of this technology will ensure the safety of passenger vehicles while the

    commercial ones can ensure the safe transport of the goods. The Radar which will be installed

    will not be using a side firing configuration, but will be mounted at a certain angle to the road.

    The field of view will cover multiple lanes, and all traffic objects traveling inside the field ofview will be detected, tracked and classified simultaneously. This will allow the customers to

    implement own algorithms to calculate typical traffic detector parameters like presence, count,

    speed, headway and gap times.

    This leads to precise position and speed measurement results. Installation and alignment is

    quick and simple, as the sensor has a self alignment feature. We offer to our customers radar

    sensors to build own traffic systems. The Radar sensors are available in different versions, so

    the setup is usually flexibly adapted to the individual local conditions of a traffic management

    installation.

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    Target Market

    According to the report analyzed by Global Industry Analyst Inc., USA the worldwide markets

    for Adaptive Cruise Control Systems in Thousand Units by the following vehicle segments:

    Passenger Cars and Commercial Vehicles. Similar research was conducted by Wipro tounderstand the Indian market players interested in this type of product. The research data shows

    that passenger vehicle manufacturers like Maruti Suzuki, TATA Motor, Nissan, Hyundai Motor

    India, Honda Siel etc and commercial vehicle manufacturers like Force India, Hindustan Motors,

    Premier Automobiles Limited, TATA Motors, Asia Motor Works and Eicher motors. Market

    data and analytics are derived from primary and secondary research.

    Differentiation

    The new product will be quite unique in its design and application. It will carter to both the

    passenger and commercial vehicles. The product is very durable and it is designed in such a way

    that it could get easily repaired. It is designed to work with current and future generations of

    automotive radar being deployed as part of the emerging infrastructure for Intelligent

    Transportation Systems (ITS) and the overall Telematics market including Adaptive Cruise

    Control (ACC) radar and collision warning, or avoidance radar.

    The test system provides a simulated radar target response with one of two set target ranges with

    an adjustable target Radar Cross Section (RCS). The signal response can be shifted to simulate

    the speed of a moving target. Radar sensors are available in two types-one using millimeter

    waves (radio waves) and the other using laser light. The milliwave-based radar sensor has the

    advantage of being less susceptible to adverse weather and dirt. However, this type is more

    costly compared to the laser light-based sensor, thus its use has been limited to certain extent. It

    can also detect a pedestrian who is tens of meters in front of the car, a task very difficult for

    conventional millimeter wave radar to achieve. It is also free from the influence of laser radar

    systems installed on other cars. By enabling high-sensitivity detection with a small signal, it also

    meets the highest level of laser safety standards pertaining to eye protection.

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    Positioning Strategies

    Adaptive cruise control (ACC) systems use either a radar or laser setup to allow the vehicle to

    keep pace with the car it is following, slow when closing in on the vehicle in front and

    accelerating again to the preset speed when traffic allows. Some systems also feature forward

    collision warning systems, which warns the driver if a vehicle in frontgiven the speed of both

    vehiclesgets too close. Since car sales volumes in middle class passenger segments are much

    larger when compared to those in higher segments, the installation of safety systems in such

    vehicles offers considerable potential for increased uptake of sensors. Simultaneously, there is a

    growing trend of implementing safety systems in heavy commercial vehicles. Together, these

    segments are likely to drive significant market demand. The product that is designed by Wipro

    automotive Electronics limited is of world class quality having a number of features at a verycompetitive price. It aims to challenge all the big players in the market. BMW and Volvo are

    only two vehicle brands in the luxury segment which have launched this technology. But middle

    class segment cars are yet to be targeted. Wipro considers this as an opportunity to get a

    significant market position for this new product.

    http://en.wikipedia.org/wiki/Radarhttp://en.wikipedia.org/wiki/Laserhttp://en.wikipedia.org/wiki/Forward_collision_warninghttp://en.wikipedia.org/wiki/Forward_collision_warninghttp://en.wikipedia.org/wiki/Forward_collision_warninghttp://en.wikipedia.org/wiki/Forward_collision_warninghttp://en.wikipedia.org/wiki/Laserhttp://en.wikipedia.org/wiki/Radar
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    THE MARKEING MIX DESIGN

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    Identification of Problems in the New Product Development Process

    The product is a highly evolved version of cruise control with the added benefit of several safety

    features not found on standard systems. Some problems are seen in the development process,

    such as

    1. The technology comes at a cost, typically more than $1,500 on most new vehicles. At themoment, the pricing barrier has limited the system to high-end luxury vehicles, keeping it

    out of the hands of many drivers. As the cost of the technology drops and the system will

    be standardized. This the main aim of the Wipro Automotive Electronics Ltd.

    2. Estimates of future demand placed on compliance processes and likely resources to meetthis demand are not yet clear because the product has not yet launched in the market.

    3. Identification of significant commercial vehicle compliance and enforcement-relatedproblems and locations in India (e.g., pavement and structural damage, crashes, air

    pollution, and security); and

    Plan to manage the risk

    There is a risk associated with regard to the sale of the sensor technology to the automobile

    industry. In order to reduce this risk Wipro has decided to introduce this technology in the

    automobiles of a particular company. As Wipro Automotive Electronics Ltd has been doing

    business with the Maruti Udyog Ltd, so the company has decided to strike a deal with Maruti.

    According to this deal Wipro will provide a small batch of its first consignment to Maruti.

    Maruti Udyog will install Wipros product in its cars. These cars sold will be observed and

    studied by the company. If the safety standards as good as promised by Wipro and the demand

    for its cars increases as a result of the installation of the Starship cruise control systems then

    Maruti will place an order for a larger consignment.

    With the success of the product the demand for the starship cruise system may increase. This will

    draw other automobile manufacturers to install the same system for the same system for their

    customers safety. Later many player may join the market making the product more competitive.

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    THE NEW PRODUCT BRAND

    The brand name of the new product is Starship cruise control systems.

    1. This system has been so named to denote the kind of technology used in the product. Astarship is the vehicle of the future having all the advanced technologies. These

    technologies give a smooth and comfortable ride to the passenger riding it.

    2. In the same manner Wipro through it brand want to make its customers to believe that thetechnology provided to them is of superior quality.

    3. The product also depicts the brand of Wipro which is known worldwide for its superiorquality of products and services in various sectors.

    4. The brand name also assures that it will be readily updated to meet the market demand.5. The brand name gives a feeling of superiority in the competitive products that may arise in

    the market.

    6. The brand itself speaks the kind of activity it is engaged in i.e. providing a smoothaccident free ride to the customers.

    7. It entails the speed of response of the cruise control system to the immediate changes inthe traffic that may lead to an accident. The speed of response also saves the life of the

    passenger of the vehicle.

    INTELLECTUAL PROPERTY RIGHTS

    The American associations for motor vehicle administrators have already given the right to

    Wipro to manufacture the product. So the association will charge for each unit of product

    produced by the company in India. The deal has been finalized so no further issues are to be

    dealt with regard to these rights. However the ownership of the technology still remains with the

    American association.

    FINANCIAL STATEMENT

    The financial statement for the new product development is as follows:

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    COST SHEET OF AN ADAPTIVE CRUISE CONTROL SYSTEM

    Rs. Rs. Rs.

    1) TechnicalCost

    Machinery & equipments

    a)Transfer

    Cost

    5000 Radar(1 radar = Rs.12500)(12500*3% =375)

    5000*Rs. 375=

    1,875,000.00

    5000 VideoSensor(1 video = Rs.3500 )(3500*3% = 105)

    5000*Rs. 105=

    525,000.00

    Total 2,400,000.00

    b) R & DCost

    Add : Expensesfor research

    100,000.00

    2,500,000.00

    Total Technical Cost 2,500,000.00

    2) NewProduct

    Development

    Wages20 employ

    ees*Rs 15000300,000.00

    Electricity 500,000.00

    Salaries 500,000.00

    Cost for 1 radar &1 Video Sensor(Rs 10000) 60,000,000.00

    61,300,000.00

    Total New Product Development Cost 61,300,000.0

    3) MarketingCost

    Distribution Cost 200,000.00

    SGA Cost 200,000.00

    Promotional Cost 100,000.00

    500,000.00

    Total Marketing Cost 500,000.00

    Total Cost64,300,000.0

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    PROJECT COST STATEMENT

    SL.NO VARIOUS COSTS 5000 Volume

    unit cost Total

    1

    Technical Cost

    a) Transfer Cost 375+105 480 3% of 16000 480.00 2,400,000.00

    b) R & D Cost # 100,000.00

    2New Product

    Development Cost 12,260.00 61,300,000.00

    3

    Marketing Cost

    a) Distribution Cost40.00 200,000.00

    b) SGA Cost 40.00 200,000.00

    c) Promotion Cost # 100,000.00

    Total Cost 12860 64,300,000.00

    Pricing Of the Product

    The new Starship cruise control system has been priced at Rs. 12,500. The price was determined

    after carrying out the financial calculations with regard to the manufacturing of the product. The

    pricing was done keeping the demand and cost of the product. As the price of the product is very

    competitive the demand for the product will also increase in the near future. The various

    automobile manufacturers will be attracted to install this new facility in their vehicles as the

    ultimate demand from the customer is safety.If the first few batches product becomes successfulthen different sensors systems will be developed for different systems keeping in view the kind

    of the safety required.

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    Pricing Objectives

    The various pricing objectives also play a vital role while deciding the price of the product.

    These are as follows:

    1. To maximize long-run profit2. To increase sales volume (quantity) of the product thereby reducing its price and

    increasing the company profit.

    3. To increase monetary sales ( rise in volume of sales )4. To increase the market share of the company.5. To obtain a target rate ofReturn on investment(ROI)6. To obtain a target rate of return on sales within a fixed period of time.7. To stabilize the market price.8. To enhance the company growth9. To enhance the image of the brand, or product10.beperceived as fair by customers and potential customers11.To use price to make the product visible"12.To get competitive advantage over other manufacturers.

    http://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/wiki/Return_on_investmenthttp://en.wikipedia.org/wiki/Return_on_investmenthttp://en.wikipedia.org/wiki/Return_on_investmenthttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Return_on_investmenthttp://en.wikipedia.org/wiki/Market_share
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    MARKETING COMMUNICATION PROGRAMME

    Wipro Automotive electronics Ltd aims to develop brand awareness and its position within the

    Indian market. Marketing communication strategy is developed cement relationships with

    customers and suppliers. It defines the businesss plan for product information dissemination and

    brand awareness development.

    Strategies

    Wipro may employ any of the three marketing communication tool to communicate about the

    product in the market.

    AdvertisingWipro will advertise its product only in a few of the technical magazines which are forthe display of the latest technologies available for any segment. These magazines are

    generally read by technical experts who play a vital role for the product development in

    any company.

    Public RelationsThe Company will introduce the product in the market through public appearances,

    news/press releases or event sponsorships, to build trust and goodwill by presenting the

    product in a positive light. The main aim for this type of communication is make the

    public aware about the technological availability.

    Personal SellingSince the product is for the automobile companies, in order to sell the new product

    appointments and meetings will be set. The company will invite representatives of the

    prospective customers to home parties where the products will be displayed. This also

    provides a great opportunity to answer all the queries related to the new product. If the

    representatives of the companies are satisfied then Wipro may be asked to make

    presentationsbefore the customers board members. This will help Wipro strengthen its

    relationship with its clients.

    http://www.selfgrowth.com/public_relations.htmlhttp://www.selfgrowth.com/public_relations.htmlhttp://www.selfgrowth.com/public_relations.html
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    Business to Business Marketing Communications is the best marketing tool for reaching your

    target market, creating the right message, and compelling prospects to become customers.

    Three reasons businesses need Business to Business Marketing Communications is to:

    1. Reach more clients and prospectsThe customers are directly approached to sell the product. The higher the number of

    prospective customers higher is the chance of gaining more customers. The higher the

    number of customers better is the profit earning capacity of the company.

    2. Convert prospects into customersIf the prospective customers are satisfied with the communication of the product then

    they can turn into essential clients.

    3. Turn customers and clients into repeat buyers.Once the customer is satisfied with quality, service, performance etc of the product then

    the customers can be turned into repeated buyers who form the regular clients of the

    company.

    Business to Business Marketing Communications strategies will help

    1. To position the business properly in the market.2. To Promote you above your competition3. To Produce benefits through advertising4. To Support sales and sales staff5. To Broadcast your messages out to your market faster6. To Increase views, prospects, and customers7. To generate revenues and profits.

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    ABSTRACT

    Wipro automotive Electronics Ltd decided to manufacture a new product. The product is a radar

    sensor for the automobiles to avoid the accident rate in the Indian roads. The characteristics of

    the product are determined to understand it properly. The marketing objectives for the product

    are developed. The prospective customers were interviewed to understand their expectations.

    The SWOT analysis for the product is analyzed through internal and external environment

    analyzes. Since the product is new in the market, prospective competitors are analyzed.

    Before the product is produced the technology for the product is licensed from the American

    Association for Motor Vehicle Administrators. A series of steps are followed in order to carry

    out the technological acquisition. Then the market segment of the product, its target market,

    differentiation and other positioning strategies are determined.

    After that the marketing mix for the product is designed. The various technological problems that

    may arise during the production are determined. Then a plan is devised to reduce the risk

    associated with these problems. The brand name for the new product is determined and the

    reasons for the naming the brand are also mentioned. The intellectual property rights for the

    technological transfer are carefully drafted to avoid any future conflicts with respect to the deal.

    The financial statement for the technological transfer is obtained. On the basis of this the pricing

    policy of the product is determined. The price of the new product is fixed taking into account the

    financial statement. After the price of the product is determined the marketing communication

    tools are used to device integrated marketing communication programme to promote the new

    company product.

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    APPENDIX

    CUSTOMER NEED ANALYSIS QUESTIONNNAIRE

    This set of questionnaire was prepared to understand the customers need.

    The questions are as follows

    1. What are your expectations from the new product that is to be launched by WiproAutomotive Electronics Ltd?

    2. Do you think there is any opportunity for such type of products in Indian market?3. Have your company, previously, done any business with Wipro?4. What is your perception about the automotive electronics parts manufactured by Wipro?5. Do you think this product will change the face of the automobile sector?6. Will this product provide you with a competitive advantage over other automobile

    manufacturers?

    7. Will this product improve the customers loyalty towards your company products?8. Do you consider that this product will give the driver a full control over his vehicle?9. How will your company advertise about the features of this product to the end users?10.Will the technology of this product help to maintain peace in the society?11.Have your company done any kind of research with respect to this new product and

    determine its effectiveness?

    12.What is the view of your companys engineering team about the utility of the product?

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    REFERENCES

    1. University of Michigan (July 12, 2004). U-M physicist: Smart cruise control eliminates

    traffic jams. Press release.

    2. L. C. Davis (2004). "Effect of adaptive cruise control systems on traffic flow". Physical

    Review Letters E 69 (6): 066110 (article ID; no page reference).

    3. CY Liang, H Peng (1999). "Optimal Adaptive Cruise Control with Guaranteed String

    Stability". Vehicle System Dynamics 32 (4-5): 313-330.

    4. P Venhovens, K Naab, B Adiprasito (2000). "Stop and Go Cruise Control". Proc. FISITA

    World Automotive Congress, Seoul, Korea.

    5. L. C. Davis, Effect of adaptive cruise control systems on traffic flow Physics Department,

    University of Michigan, Ann Arbor, Michigan 48109, USA The American Physical Society

    (Received 27 October 2003; revised 22 January 2004; published 4 June 2004)

    6. Intellimotion: keeping up with carlifornia PATH Research in Intelligent Transportation

    Systems -- Volume 12, No. 1 , 2006

    WEBSITES

    1.http://www.siliconchip.com.au/cms/A_105086/article.html

    2.http://www.audi.com/audi/com/en1/glossar...ntrol.html

    3.http://www.pcmag.com/encyclopedia

    4.http://www.ford.com/en/innovation/safety...ntrol.html

    5.http://www.edufive.com/seminartopics.html

    http://www.siliconchip.com.au/cms/A_105086/article.htmlhttp://www.siliconchip.com.au/cms/A_105086/article.htmlhttp://www.siliconchip.com.au/cms/A_105086/article.htmlhttp://www.audi.com/audi/com/en1/glossar...ntrol.htmlhttp://www.audi.com/audi/com/en1/glossar...ntrol.htmlhttp://www.audi.com/audi/com/en1/glossar...ntrol.htmlhttp://www.pcmag.com/encyclopediahttp://www.pcmag.com/encyclopediahttp://www.pcmag.com/encyclopediahttp://www.ford.com/en/innovation/safety...ntrol.htmlhttp://www.ford.com/en/innovation/safety...ntrol.htmlhttp://www.ford.com/en/innovation/safety...ntrol.htmlhttp://www.edufive.com/seminartopics.htmlhttp://www.edufive.com/seminartopics.htmlhttp://www.edufive.com/seminartopics.htmlhttp://www.edufive.com/seminartopics.htmlhttp://www.ford.com/en/innovation/safety...ntrol.htmlhttp://www.pcmag.com/encyclopediahttp://www.audi.com/audi/com/en1/glossar...ntrol.htmlhttp://www.siliconchip.com.au/cms/A_105086/article.html
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