ATUL Article in magazine

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[120] Construction | Infrastructure | Architect World z DEC-JAN 2013 ||||||||||||||||||| ||||||||||||||||| ||||||||||||||||||||| |||||||||||||||||||||||||| ||||||||||||||||||||| ||||||||||||||||| |||||||||||||||||||||||| |||||||||||||||||||||||||||||| |||||| SPECIAL FEATURE ||||||||||||| ||||||||||||||||| |||||||||||||||| |||||||||||||||||||| |||||||||||||||||| ||||||||||||||||| ||||||||||||||||||||| |||||||||||||||||||||| [120] Construction | Infrastructure | Architect World INDIA IS BECOMING HOT DESTINATION FOR FOREIGN CV MANUFACTURE AND IT'S NEW CHALLENGE FOR INDIAN OEM HOW TO KEEP THEIR MARKET SHARE >> ...... read more ndia is a becoming hot destination for foreign CV manufacture and it’s a new challenge for Indian OEM how to keep their market share in everyday changing business scenario. The basic concept how to define correct prod- uct portfolio and how to keep update and competitive portfolio without any damage of brand image & also keep market share. Triad players have normally shown much lower growth rates than their counter- parts in India. The definition of best product in India is best suitable product at competitive price. All OEM’s need to understanding of what the Indian markets look like today and in which direction it could move and where OEM’s are headed. First step should understand the application of vehicle here, based on application define segments and visualize how it is changing with the time. At the same time, customers in Indian markets are becoming increasingly sensitive to the total cost of ownership (TCO), which simply means all the costs of an investment over its en- tire product lifecycle. In truck business this includes the initial investment plus the fuel cost, driver’s wages, taxes, repairs and maintenance etc. Another important factor is that trucks are becoming more and more inter- changeable and hence, customization process appears. When this happens, prod- uct differentiation and definition becomes more and more difficult. OEMs should themselves force to place greater emphasis on developing right solutions rather than focusing on just how to sell vehicles. After understanding the applications define drive. HOW TO DEFINE PRODUCT PORTFOLIO IN INDIA After defining product portfolio then go back to application through the same rout but check different applications also weather it is suitable or not. This process is a continuous one. After technical ground work finally it comes on commercial issues like TCO and street price, it should be suitable for industry and how fast vehicle can achieve Break even point. Finally we will have a product portfolio which will be best suited for India. With this product portfolio there is always a strong service, spare parts and maintenance & repair packages but customized. Foreign OEM’s should enter into India with completely built unit after deciding right product portfolio. If they enter into the market with CBU then there will be I PRODUCT STRATEGY FOR INDIAN MARKET STRONG SERVICE & SPARE PARTS BACK UP AND DIFFERENT PACKAGES FOR DIFFERENT APPLICATIONS

Transcript of ATUL Article in magazine

[120] Construction | Infrastructure | Architect World z Dec-Jan 2013

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india iS becoming hot deStination for foreign cv manufacture and it'S new challenge for indian oem how to keep their market Share >> ...... read more

ndia is a becoming hot destination for foreign CV manufacture and it’s a new challenge for Indian OEM how to keep their market share in everyday changing business scenario. The basic concept how to define correct prod-uct portfolio and how to keep update and competitive portfolio without

any damage of brand image & also keep market share. Triad players have normally shown much lower growth rates than their counter-

parts in India. The definition of best product in India is best suitable product at competitive price. All OEM’s need to understanding of what the Indian markets look like today and in which direction it could move and where OEM’s are headed.

First step should understand the application of vehicle here, based on application define segments and visualize how it is changing with the time. At the same time, customers in Indian markets are becoming increasingly sensitive to the total cost of ownership (TCO), which simply means all the costs of an investment over its en-tire product lifecycle. In truck business this includes the initial investment plus the fuel cost, driver’s wages, taxes, repairs and maintenance etc.

Another important factor is that trucks are becoming more and more inter-changeable and hence, customization process appears. When this happens, prod-uct differentiation and definition becomes more and more difficult. OEMs should themselves force to place greater emphasis on developing right solutions rather than focusing on just how to sell vehicles. After understanding the applications define drive.

How to define Product Portfolio in india

After defining product portfolio then go back to application through the same rout but check different applications also weather it is suitable or not. This process is a continuous one. After technical ground work finally it comes on commercial issues like TCO and street price, it should be suitable for industry and how fast vehicle can achieve Break even point. Finally we will have a product portfolio which will be best suited for India. With this product portfolio there is always a strong service, spare parts and maintenance & repair packages but customized.

Foreign OEM’s should enter into India with completely built unit after deciding right product portfolio. If they enter into the market with CBU then there will be

I

product Strategy for IndIan Market

Strong Service & Spare partS back up and different packageS for different applicationS

Dec-Jan 2013 z Construction | Infrastructure | Architect World [121]

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oem'S Should themSelveS force to place greater emphaSiS on developing right SolutionS rather than focuSing on JuSt how to Sell vehicleS >> ...... read more

Construction | Infrastructure | Architect World [121]

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minor chances of having quality problems, parts availability, suitability, design, vendors and assembly etc.

By following this process, define a frame and give the best package (TCO, Service etc) is the most efficient way for product strategy. On some extent this process can be applied for many other countries where Indian OEM’s wants to enter into the market.

By having correct portfolio foreign OEM’s can increase market share easily but should decrease price also, both approach should comes together. For Indian OEM introduction of new/updated product and ensure quality standard with price in or-der to gain market share in low cost or budget segment.

By Atul Singh Chandel

“relationSHip betWeen price, Market SHare and product portfolio”