Ambassador Failure
Transcript of Ambassador Failure
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HINDUSTAN MOTORS- One of the original car manufacturers in India,
founded in 1942 by Mr. B. M. Birla.
Ambassador was a leader in car sales until the 1980s and before liberalization in
India. AMBASSADOR - It has been in production since 1958 with few
modifications or changes and is based on the Morris Oxford III model, first
made by the Morris Motors Limited at Cowley, Oxford in the United
Kingdom from 1956 to 1959.
Ambassador was considered as a definitive Indian car and was fondly
called "The king of Indian roads".
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In 1980s and mid 90s a man getting out of a Ambassador was easily
assigned to a social status. He was either in public service or a politician.
All the government vehicles were Ambassadors for the good part of pre-
2000 era.
It was the first car to be manufactured in India, only automobile to ply Indian
roads for more than five decades, had carved a special niche for itself in the
passenger car segment.
Dependability, spaciousness and comfort factor made it the most preferred car
for Indians till 1980s.
The Ambassador's time-tested, accommodating and practical characteristics
made it a truly Indianised car.
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Ambassador was not up-to the mark in design and performance compared to
other segments of its competitors in the market.
Against the standard output of 8-10 cars per employee per annum, the plants
output was as low as 3 cars per employee.
It just failed to re-invent, align with the audience and update its external
features.
The weight of the car would probably be the same as any modern sedan but
lacks in evenly distributed weight and does not provide appealing contoursand drivable dimensions.
Limited advertising campaign by HM.
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SegmentingThe segmentation of consumers was not done, the same product
was being offered to everyone in the market.
TargetingIn the 80s and 90s targeting was done mainly towards government
institutions and cab companies and not general public. Later on many
ambassadors were used for cab purposes and moved out of consumer segment.
PositioningPositioned as a government or commercial vehicle only.
Rattling sounds and rusting was a common problem faced by its owners.
The fall of Ambassador from a leadership position to a marginal player is a
classic case of marketing myopia
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