Areeb KhamkarYash AgarwalBarun Anand

Khushboo NitnawareNavneet Bansal

RISE OF AUTOMOBILE SECTOR

IN INDIA

AUTOMOBILE INDUSTRY SCENARIO

2006• 5th largest commercial

vehicle manufacturer• 13 lakh passenger

vehicles, 4 lakh commercial vehicles.

• Automobile industry has turnover of US$28 billion, auto component turnover of US$10 billion.

2011• One of the largest in

the world and one of the fastest growing globally at 16 to 18 per cent.

• An annual production of more than 3.9 mn units.

• Asia's third largest exporter of passenger cars.

source : automotive_mission_plan_GoI

HYUNDAI MOTORS• Hyundai Motor Company was founded by Ju-Yung

Chung  and younger brother Se-Yung Chung  in December 1967. 

• The name Hyundai was chosen for its meaning which in English translates to “modern”.

• The second largest car manufacturer and the largest passenger car exporter from India.

• HMIL presently markets 36 variants of passenger cars across segments.

• Hyundai has one of the most advanced research and development facilities that focus on state of the art product and design engineering and rigorous quality enhancement.

PRODUCT LIFECYCLE OF HYUNDAI MOTORS.

• Niche SegmentE• Super /

Premium CarsD• Mid size

Luxury CarsC• semi

luxurious carsB• entry

level small cars

A

POSITION DEFENCE

PRODUCT POSITIONING

P.O.D.(POINT OF DIFFERENTIATION)

PERCEIVED VALUE PRICING

WARRANTIES

INTRODUCTION• Largest automobile manufacture in South Asia.

• Market leader in India; Half the cars sold in India are Maruti Suzuki cars.

• Headquarters are in Delhi, India

• Consumer Perceived the M-800 as a ‘VALUE FOR MONEY CAR’

• It has been rated first in customer satisfaction among all car markers in India

• Maruti 800 “Change ur life”

• Omni – 1984, “Fits all”

• Gypsy – 1985 “King”

• Wagon-R – 1999,”For the smarter race”

• Alto – 2000, Currently the largest selling car in India. “Lets go”

• Versa(2003) “The joy for travelling together”

MARUTI SUZUKI : BRANDS

MARUTI SUZUKI : BRANDS• Zen Estilo(2005) “ Shape ur world”

• Swift (2005 Maruti Suzuki SX4 (May 2007) “Men are back”

• Suzuki Grand Vitara Sports Utility Vehicle - July 2007. Imported “Play it your way”

• Suzuki Alto (Sold in India as the Maruti A-Star) Launched in 2008 December. “Stop @ nothing”

• Kizashi “A sign of great things to come” Launched in 2011

• The Gypsy targeted the paramilitary forces and the police. This resulted in complete control of Maruti over the market .

• A special cell was made to make direct dealing of Gypsy with the government & the army.

Product Line Products

A Maruti 800

BAlto, Zen ,Wagon –R, Swift, A-star

C Esteem , Baleno, Gypsy

UTILITY VEHICLE Vitara, Kizashi

MULTI PURPOSE VEHICLE

Omni, Versa

PRODUCT POSITIONING AND TARGET

D

C

B

A

TARGETING: - SELECTIVE SPECIALIZATION

MARKET PRODUCT

URBAN SEMI-URBAN RURAL

A Yes YesB Yes Yes YesC Yes Yes

Utility Vehicle YesMulti Purpose Vehicle

Yes Yes Yes

INCOME GROUP PRODUCT

Rs. 2-3 Lacs./Annum

Rs. 3-5 Lacs./Annum

Rs.5> Lacs./Annum

A Yes

B Yes Yes

C Yes

Utility Vehicle YesMulti Purpose

VehicleYes Yes Yes

TARGETING : - ON THE BASIS OF INCOME GROUP

• Market Leaders

• Major strength of MUL is having largest network of dealers and after sales service caters in the country.

• Strong Brand Value

• Availability of raw material

• Loyal Customer Base

• Low interior quality in side the cars • Labour Laws and Labour Unions are not in a good.

Big Market: Domestic and Abroad

Launched its LPG version of Wagon R MUL can start R&D on  electric cars for a much better substitute of the fuel. Economic growth of the country is sound an promising in future

Tata Motors launched a car with a price tag of Rs. 1 Lac and that could give a big impact on sales of MUL

China may give a good competition as they are also planning to enter into car segment

INDIA INDONESIA JAPAN

KAZAKHSTAN CHINA TAIWAN

Volkswagen India• Volkswagen -> People’s car; Slogan -> Das Auto

(the Car)

• The Volkswagen group consists of seven brands: Volkswagen, Audi, SEAT, Skoda, Volkswagen Commercial Vehicles, Bentley, Bugatti, Lamborghini and Scania.percent holding

Porsche Au-tomobil Holdin

Porsche GmbH

State of Lower Saxony

misc

Emirate of Qatar

Company Milestones• 1973: The Passat front wheel drive with four

cylinder engine goes into production.

• 1974: The Golf goes into production. It becomes a hit and succeeds the Beetle.

• 1983: Production of the second generation Golf begins. Robots are deployed for producing it.

• 1999: Production launch of the Lupo 3L TDI, the first production car to offer fuel consumption of just three litres per 100 kilometres.

Company Milestones• 2000: In August 2002, at Volkswagen Slovakia,

a.s. in Bratislava, mass production of the Touareg, a luxury-class off-road vehicle, is started, marking the Volkswagen brand's move into an entirely new market segment.

• In December 2002 the "Auto 5000 GmbH" company develops a special collective pay model, aimed at implementing lean production and involving flat hierarchies, team working, flexible working hours and the deployment of more process expertise by the workforce.

• Niche SegmentE• Super /

Premium CarsD• Mid size

Luxury CarsC• semi

luxurious carsB• entry

level small cars

A

source : www.indiatomes.com

Things that Worked for

Fast Plant Roll Out World class 3800 cr rupees Chakan plant built in record 17 months

Great Brand Launch ‘Roadblock’ ads in TOI and Talking ads

Marketing Prowess In 4 yrs, became India’s 6th largest car company

www.indiatimes.com

November 2009 Carpet Bombing in TOI, became most searched word on Google that day

September 2010 Talking newspaper Campaign in TOI

December 2010 Campaign with NatGeo, 5000 participants, Ventos as prizes

August 2011 “Anything for Jetta” twitter campaign, supported by interactive digital banners & webisodes on YouTube.Became #1 trend on Twitter in 20 mins, most popular account in India in 24 hrs.

Marketing Campaigns

PRINT ADS VIDEO ADS

source : www.indiatimes.com

Future Plans in India

• Volkswagen is talking about increasing its presence in the Indian auto industry by doubling the number of its dealerships by 2015 which currently stand at more than 200.

• Volkswagen has inaugurated the VW Group Technical Education Program for trained manpower and technical staff.

• The company is banking upon its more than 10 percent growth witnessed since January to July 2012 to increase the number of technicians in order to serve more customers.

source : www.indiatimes.com

Challenges for Pricing Woes Better Quality comes with

typically 5% premium

Dealer Push Dealers must push sales & customer care

Limited Presence Addresses just 35-45% of industry

India Connect Need to customize their products according to Indian conditions

FEATURES VOLKS WAGEN MARUTI SUZUKI HYUNDAI

WARRANTY 2 YEARS & 3 YEARS12 YEARS ON ANTI-CORRISON

LOYALTY CARD

MODELS 6 MODELS + BIG BRANDS

15 MODELS WITH 150 VARIANTS

9 MODELS

TOUR GUIDE NO YES NO

CUSTOMER SERVICE LOW HIGHEST HIGH

QUALITY CHECKS 120 CHECKS

ASSISTANCE 24*7 24*7

QUALITY TOUGH QUALITY CHECK UPS.BLUE MOTION TECHMQB TECHNOLOGY

BEST QUALITY WITH LOW MAINTAINANCE

BEST CHASSIS TECHNOLOGY

RESALE VALUE - HIGHEST RESALE VALUE

-

SERVICE CENTRE SERVICE CENTRE IN ALMOST EVRYWHERE IN INDIA

8000 SERVICE CENTRES

Comparative Analysis

MORE FOCUS ON A, B & C SEGMENT

SegmentationGEOGRAPHIC DEMOGRAPHIC

REGION •SMALL CARS SEGMENT IS BIGGEST IN INDIA IN NORTH, SOUTH & WEST

AGE/LIFE STYLE

•SMALL CARS ARE PURCHASED BY YOUTHS, SINGLE, YOUNG MARRIED.

•AGE GROUP PURCHASER OF 25-31 HAS RISEN UPTO 9%.

RURAL/URBAN

•MARUTI TARGET RURAL INDIA TO INCREASE SALES TO 8% FROM 3% •TATA MAGIC PRICED TO CATER ONLY RURAL INDIA

FAMILY SIZE •AVERAGE HOUSEHOLD SIZE IN INDIA IS 5 MEMBERS WHICH BOOST UP THE SMALL CARS

INCOME •BETTER EMI SERVICES AND FINACE AVAILABILITY IN INDIA HAS INCREASED SALES AMONGST YOUTHS

SEGMENT TARGETING

PETROL CARS ELECTRIC CARS

DIESEL/ CNG/LPG

MARUTI

REVA

HYUNDAI

DUEL FUEL PRICE SENSITIVITY

STYLE

WAGON R

ALTO

SWIFT

SINGLE SEGMENT CONCENTRATION

SELECTIVE SPECIALISATION

http://en.wikipedia.org/wiki/Suzuki_Wagon_R

HYUNDAI• Tough Competition To Maruti 800 And Alto By Hyundai

Eon.

• Good Interiors, Low Priced, Good Looking, Fuel Efficient, Music Systems.

• Hyundai Santro For Maruti Zen And 800

• Hyundai Eon For Maruti Alto.

• Better Pick Up And Engine.

• Better Leg Space With Added Feature

• Targeting Customers With Added Features With Prise.

VOLKSWAGEN INDIA• Technologial Advantage

• Blue Motion Technology

• Mqb Technological Advantage

• Market Share Risen With Increased Sales

• Indian Version Of Polo

• Technology To Cater Indian Market

• Manufacturing Advantage To Produce Advanced Car With Price Effeciency.

MARUTI : COMPETITIVE ADVANTAGE• Maruti Suzuki- Auto Loyalty Card

– 4% Surcharge & 2.5% Discounts At Every Petrol Pump

– Auto Card With SBI – Most Trusted Firm– Gets Discount On Exchange Or On Every Transaction– Low Maintenance In Alto Whereas High Fuel

Efficiency– Low Fuel Efficiency With High Style, Price, Comfort ,

Leg Space.– Cost Component Is The Comparative Advantage

Which Maruti Has Over Others.– Offered Maximum Fuel Efficiency Which Helped It To

Gain 60% Of The Market

POSITIONING- MARUTI SUZUKI

Brand andCompanyTarget CustomerBenefitsValue Proposition (Pointof difference)PositioningImageSantro Eco ,HyundaiEnvironmentallyconsciousconsumers whowant an economicand a safe small car Better power and fuelefficiency, Better  performance on cityroads, less maintenancecosts, spacious interiorsand more headroomEconomical andenvironment friendlysmall car Santro Eco – Anenvironmentfriendly car Swift,MarutiSuzukiCustomer seeking astylish, powerfuland a premium car for City drivingPowerful, Styling andHandling, AdvancedfeaturesA vehicle that providecomfort , power andluxury in small packageStyle, modernlooks and youngattitudeSpark,Chevrolet“Value for Money”consumer Low Maintenance cost,Extended warranty of spare parts, Goodmileage, High endFeaturesA vehicle that providesgood mileage and extrafeatures at competitive prices“Big car luxuryat a Small car  price”Indica ,Tata MotorsSmall- car consumers whowant a morespacious car SpaciousnessA small spacious car with no extra cost“More Car per Car”Fabia,SkodaCustomers seekinga luxurious smallcar World-class styling,technology, luxury andsafety featuresA vehicle in the upper-end of the B-segmentand lower end of the C-segment. Dynamiclooks, compact yetroomy, first-in-its classfeatures and exemplary performanceIndia’s #1Super-hatchAlto, Maruti A first-time car Good performance, A trusted and reliable car India’s largest

                                                                                                                                                                                                                                                                                                                         

SEGMENT INVASION PLAN- MARUTI SUZUKI

http://en.wikipedia.org/wiki/Suzuki_Wagon_R

source : www.indiatimes.com

Comparative Growth

BARGAINING POWER OF

CUSTOMERS

THREAT OF NEW

ENTRANTS

THREAT OF SUBSTITUTE PRODUCT

COMPETITIVE RIVALRY

WITHIN THE INDUSTRY

BARGAING POWER OF SUPPLIERS

ADVERTISING• Maruti Sells 2 Out Of Every 4 Car Sold In India

Still Advertising Campaign Plays Very Important Role

• Maruti Spends 5-10% In Advertising“kitna Deti Hai”

• “Kya Kare Petrol Khatam Hi Nahi Honda”.• Informative Ads

• Volkswagen Advertises In India With Indian Sentiments

• VW’s Ad Campaigns To Portray Different Image In India

Brand andCompanyTarget CustomerBenefitsValue Proposition

(Pointof difference)PositioningImage

Santro Eco, Hyundai

Environmentally

conscious

consumers who

want an economic

and a safe small car

Better power and

fuel efficiency,

Better

performance on

city roads, less

maintenance costs,

spacious interior

sand more

headroom

Economical and

environment

friendly small car

Santro Eco – An

environment

friendly car

Swift, Maruti Suzuki

Customer seeking a

stylish, powerful

and a premium car

for City driving

Powerful, Styling

and Handling,

Advanced features

A vehicle that

provide comfort ,

power and luxury in

small package

Style, modern looks

and young attitude

Alto, Maruti Suzuki

A first-time car buyer looking

for the best affordable car in the market

Good performance, good fuel economy. Good in price as well as quality

A trusted and reliable car with

access to the largest service network and commanding the highest resale value

India’s largest selling car. “Your Sachha

Hamsafar”. “Alto. Let’s go”.

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