auto public relation management.

8/14/2019 auto public relation management.

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INDIAN AUTOMOBILE MARKET:

The Indian market confounds global carmakers simply because of

the way it is segmented. In the West, automobiles are generally

segmented according to platforms -- that is chassis-engine

combinations. Price plays a factor but only up to a point. In India,

though, price plays the primary role in segmentation.

Consider first the segments in the European or American market.

At the bottom, you have city cars' -- which include the Daewoo Matiz,the Hyundai Santro, the Maruti 800, Alto, Fiat Uno, the Zen as well as

the Wagon R. Next come the budget minis -- which would include cars

like the Suzuki Swift (our own Esteem). The next segment, the

superminis, would take in cars like the Opel Corsa, the Ford Ikon.

Above the superminis are small family cars -- which include models like

the Opel Astra and the Ford Escort. Medium-sized family cars are

bigger and include cars like the Opel Vectra and Peugeot 406. Compact

executive cars are small but immensely prestigious and include theBMW 3 series and the Mercedes C class. Executive cars embrace their

bigger brothers -- the BMW 5 series and the Mercedes E class. Only a

handful of cars are classified as true-blue luxury cars namely-- Jaguar


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XJ8, the BMW 7 series. And of course there are the niches like

sports, sports utility, and exotics.

The Indian market, of course, is quite differently segmented.

The Maruti 800 and Zen fall in a class by their own -- and are referred

to as the sub-Rs 2.5-lakh cars. The next is the Rs 3-4 lakh segment --

which includes all the other cars that would normally be classified as

city cars in Europe. Strictly speaking, the Tata Indica should fall in the

super-mini category because of its specifications -- but because of

price, it competes in the same segment. Above Rs 4 lakh and all the

way up to Rs 10 lakh is the luxury car range. It is loosely divided into

two halves -- with Maruti Esteem, Ford Ikon, Hyundai Accent, Daewoo

Cielo, Opel Corsa and Honda City 1.3 falling in the bottom layer, andthe Opel Astra, Honda City 1.5 and Ford Escort in the upper range. The

last segment is of premium car segment, which includes cars like

Mercedes Benz and BMW.

Scooters India Ltd (SIL), US-based Amerigon and Bangalore-

based Maini Group are negotiating a joint venture to manufacture an

electrical passenger car. Priced at Rs 1.75 lakhs, the car will target the

segment between two-wheelers and petrol/diesel based cars. Assembly

from imported Completely Knocked Down (CKD) kits will start as soonas an agreement is finalised among the partners. This venture

represents a major manufacturing shift for SIL, a public sector

enterprise, which so far has only produced two- and three-wheelers. It

also plans to introduce an electric three-wheeler model, already in use

in Nepal, into the Indian market.

Bajaj Auto has introduced its diesel three-wheeler in Hyderabad.

The vehicle has a 416 cc engine and is priced at Rs 83,000, lower than

its nearest competitor the Greaves Garuda, which is priced at Rs85,000 (in Hyderabad). Bajajs petrol three-wheelers already account

for 85 per cent of the India market. Its new product, consequentially,

could erode its own base.

Indian Automobile industry has become more competitive in the

export market due to its technological and quality advances, so much so


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that in quality conscious markets such as Europe and America, Indian

automobile industry is emerging as a major player judging by its

performance. India today exports: Engine and engine parts, electrical

parts, drive transmission & steering pats, suspension & braking parts

among others.

Opportunities for the Automobile Industry:Global automobile companies are setting up manufacturing

facilities in India. Also, many Indian automobile manufacturers have

announced their plans to increase the export of vehicles from India.

The year 2002-03 has already seen a significant 65% increase in

export volumes during the period April to March. This trend is

expected to continue with more global OEMs sourcing vehicles fromtheir Indian plants.

Additionally, the introduction of newer technologies such as

Electronic Diesel Control Systems to reduce emission levels, safety

devices such as Air Bags, Anti-lock Braking Systems, etc. augur well

for the Company and the automotive sector as a whole. These

technologies not only offer increased safety for drivers and

passengers, but also result in greater comfort and better drivability.

While there exist many opportunities for growth in business,there are also quite a few factors, which act as an impediment.

In my last years speech I mentioned about the need for a well

thought out and clearly defined policy on emission norms. It is now

fairly certain that Bharat Stage II norms (equivalent of Euro II

norms) will be implemented countrywide starting 2005. It is important

that this plan is implemented in time in the interest of a cleaner

environment. Technology is available to meet the advanced emission

norms using gasoline and diesel fuel; Bosch and many other companieshave proved this worldwide. There is no need for the authorities to

specify the type of technical solution required for this purpose as long

as the end objectives are met.


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The spurious and reconditioned goods market, which I also dealt

with in detail in my speech last year, continues to be a worrying factor

as it directly affects our market share. The Company on its part has

intensified the anti-spurious operations by conducting several raids

across the country with the help of local regulatory authorities. Large

quantities of spurious and fake products have been seized and legal

action has been taken against those indulging in such activities. The

Company believes that continued focus and concerted action against

spurious activities would improve safety and fuel efficiency of the

vehicles and at the same time help in expanding our market share in

the Aftermarket. The Company is also continuously educating the users

about the benefits of using genuine spares in place of spurious andreconditioned spares.

The lack of any significant change in the labor law reforms also

continues to be a matter of concern. It is essential that legal reforms

be put in place at the earliest to provide more flexibility in

manufacturing operations and enable the industry to quickly adjust the

work force in line with fluctuating market conditions.

Challenges for the Indian automobile industry:As we move into the new millennium, the Indian Automobile

Industry faces some tremendous opportunities and also great

challenges. The growth in automobile sales has been impressive for the


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past ten years since liberalization began. However, with liberalization,

the Indian customer has been presented with a wide range of choices

in automobiles, to suit every requirement and budget. The market has

turned into a buyers market where the customer is being wooed by the

manufacturers and the dealers with a range of freebies unheard of

before in India. Financing has become so easy that an automobile is

within every aspirant's reach.

Competition has meant that manufacturers' margins have been

squeezed severely and they are all under pressure to cut costs to be

profitable and competitive. Some of the older manufacturers like

Premier Automobiles (manufacturers of Premier cars), Automobile

products of India (manufacturers of Lambretta scooters) and IdealJawa (manufacturers of Jawa and Yezdi motorcycles) have closed

shop. Hindustan Motors (manufacturers of Ambassador and Contessa

cars) is in trouble due to the declining sales of its cars, as most

customers prefer the newer models available in the market. Even the

dominant player Maruti has seen its market share decline rapidly due

to its models being old and jaded and is in addition facing labour

problems in its plant.

To add to the problems, come April 2001, under the WTOagreement, India will have to permit import of fully built automobiles,

which hitherto was not permitted. The foreign manufacturers such as

GM, Ford and Daimler Chrysler will almost certainly import vehicles

from their large portfolio of models and makes, further segmenting

the market into niches, although how competitive they are in terms of

price remains to be seen.

The challenge before the industry is to figure out the strategy

for survival and growth. It is clear from the picture painted above thatthe industry will have to increase volumes in each segment to achieve

lower cost of manufacture. One way to achieve this will be to go for

exports in a big way. Maruti is already exporting vehicles, as are

Mahindra, Telco, Daimler Chrysler and more recently Daewoo. The

overseas markets will have to be exploited more aggressively, but this


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will mean the companies will have to invest more in Research and

Development of new models with better features.

The second opportunity is to become contract manufacturers for

overseas companies. A number of Japanese and Korean companies have

been following this strategy very successfully. Hindustan Motors is

said to be considering this option. The third opportunity is to overcome

the vulnerability of the automobile market to oil prices by designing

vehicles, which can offer lower fuel consumption. Recent reports

suggest the government is exploring the possibility of introducing

Gasohol, which is a mixture of Petrol and Alcohol. Gasohol has been

very successful in Brazil. Since Alcohol is a by-product of the Sugar

industry (of which India has the worlds largest), this is a very logicalstep that should have been taken many years ago. Even a small

percentage reduction in the consumption of petroleum per vehicle can

make a big difference to the balance of payments.

The industry must focus its R&D efforts in line with the global

trends, which is to build vehicles that are considerably more fuel

efficient and less polluting. With growing awareness among the public

about pollution and the effective campaigns carried out by the NGO's,

this will increasingly become an important selling feature. It wassurprising to see how the industry kept stalling the introduction of

pollution norms for vehicles on the pretext that they needed more

time to get the technology. Even Maruti despite its foreign affiliation

was caught off guard when the Supreme Court finally ruled that all

new vehicles should strictly adhere to the Euro II norms.

The inadequacy of road infrastructure in India is well known. This

is compounded by the fact that traffic management is very poor or

non-existent and the drivers are mostly ill trained and in disciplined.As more vehicles come on the road, this will become a major

bottleneck. The industry will need take initiatives firstly to train all

drivers in safe driving and proper road discipline and manners. They

will also need to assist government agencies in better road design and

in building of multilevel parking lots. Training of police personnel in


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better traffic management and advising them on better equipping

themselves to deal with various problems will also have to be done.

In terms of the world averages, India's vehicle density is very

low and if we have to achieve those density levels, the industry can

look forward to a bright future. However in the industry's interest

care must be taken to see that we also achieve the safety and

convenience levels of using automobiles.

The Challenges:

External Level : Integrating into Global Supply Chains

WTO Multilateral trade regimes

FTAs (i.e. Bi-lateral Trade) Country Level :

Infrastructure

Cascading effect of Taxes

Cost of Capital

Cost of Power

Inflexible labor laws Inflexible labor laws

Firm Level : Export as a mind set

QCDDM equation taken for granted

Logistics

Warranties & Liabilities

Challenges for CEOs:

Dilemma of Investment Addressing fast Global Business Environment

Changing mind set of teams

Developing & employing people with right right skills

skills.


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SERVICES:

Automotive PR undertakes a wide range of corporate

communications consultancy services for its clients. These services aredesigned to help clients promote their businesses and protect their

interests through all channels of contact with customers, suppliers,

distributors, shareholders and employees. Services provided, either as

a long-term co-ordinate activity or on an individual project basis,

include:


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Corporate communications counsel

Strategic public affairs planning and implementation

Government and political relations

Product PR and marketing services

Event management and product launches

Presentation and speech writing

Crisis communications management

Internal communication support

Strategic marketing advice and guidance

Media monitoring and evaluation

In addition, and in order to create awareness, generatesales and establish customer loyalty for clients' products and services,

Automotive PR is able to provide high quality marketing communication

support in areas such as brochure production, annual reports, design,

photography, internet marketing support and advertising.

In the highly specialised area of media relations Automotive

PR provides a complete press and broadcast service including the

writing and accurate placement of news releases, articles and case

studies that editors will want to publish as well as maintainingeffective, positive contact with journalists to identify new editorial

opportunities.

By analysing media coverage for our clients we measure the

extent to which the opinions of key audiences may have been

influenced and the possible impact that this media coverage is having

on the company's reputation. Our major objective of course is to

maximise the level of favourable publicity in key publications, achievedthrough contributed articles, news releases, editorial briefings, visits,

interviews and press launches.

PR TEAM:


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The Automotive PR team has a range of talents and expertise

gained from experience within the motor industry communications

arena. This gives APR unique insights into what is required from both

the client and media perspective.

APR's reputation for providing informed, relevant editorial

matter is hard-earned and our team gives clear guidance to clients on

what will work and what will not. We have the confidence, based on

real, daily contacts with key automotive journalists throughout Europe,

to create and place stories of real value.

PR SERVICES TO THE MOTOR INDUSTRY :

A PR operates from offices in central London and works on behalf

of a range of clients, from the largest multinational corporations to

one-man businesses, all focused on reaching customers in and for the

world's largest engineering-based industry - the automotive business.

APR undertakes a range of promotional services but its principal

specialisation is in effectively developing and managing hard hitting

media relations programmes on behalf of its clients.

NATURE OF THE WORK:public relation managers coordinate their companies' market research,

marketing strategy, sales, advertising, promotion, pricing, product

development, and public relations activities. In small firms the owner

or chief executive officer might assume all advertising, promotions,

marketing, sales, and public relations responsibilities. In large firms,which may offer numerous products and services nationally or even

worldwide, an executive vice president directs overall advertising,

marketing, promotions, sales, and public relations policies.

Public relations managers. Public relations managers plan and

direct public relations programs designed to create and maintain


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a favorable public image for the employer or client. For example,

they might write press releases or sponsor corporate events to

help maintain and improve the image and identity of the company

or client. They also help to clarify the organizations point of view

to their main constituency. They observe social, economic, and

political trends that might ultimately affect the firm, and they

make recommendations to enhance the firm's image on the basis

of those trends. Public relations managers often specialize in a

specific area, such as crisis management, or in a specific industry,

such as healthcare.

In automobile industry, public relations managers may

supervise a staff of public relations specialist. They also work withadvertising and marketing staffs to make sure that the advertising

campaigns are compatible with the image the company or client is

trying to portray.

In addition, public relations managers may handle internal

company communications, such as company newsletters, and may help

financial managers produce company reports. They may assist company

executives in drafting speeches, arranging interviews, and maintaining

other forms of public contact; oversee company archives; and respondto requests for information. Some of these managers handle special

events as well, such as the sponsorship of races, parties introducing

new products, or other activities that the firm supports in order to

gain public attention through the press without advertising directly.

Work environment.

public relation managers work in offices close to those of

top managers. Working under pressure is unavoidable when schedules

change and problems arise, but deadlines and goals still must be met.Substantial travel may be required in order to meet with

customers and consult with others in the industry. public relations

managers travel to meet with special-interest groups or government

officials.


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Long hours, including evenings and weekends are common. In

2008, over 80 percent of public relation managers worked 40 hours or

more a week.

public relation managers often serve as liaisons between the firmrequiring the advertising and an advertising or promotion agency that

develops and places the ads.

Training, Other Qualifications, and AdvancementAbout this section.

A wide range of educational backgrounds is suitable for entry into,

public relations manager jobs, but many employers prefer college

graduates with experience in related occupations.

EDUCATION AND TRAINING:For public relations management positions, some employers

prefer a bachelor's or master's degree in public relations or

journalism. The applicant's curriculum should include courses in

advertising, business administration, public affairs, public speaking,political science, and creative and technical writing.

Most public relation management positions are filled through

promotions of experienced staff or related professional personnel. For

example, many managers are former sales representatives; purchasing

agents; buyers; or product, advertising, promotions, or public relations

specialists. In small firms, in which the number of positions is limited,

advancement to a management position usually comes slowly. In large

firms, promotion may occur more quickly.

OTHER QUALIFICATIONS:

Computer skills are necessary for recordkeeping and data

management, and the ability to work in an Internet environment is


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becoming increasingly vital as more marketing, product promotion, and

advertising is done through the Internet.

Persons interested in becoming public relation managers should be

mature, creative, highly motivated, resistant to stress, flexible, and

decisive. The ability to communicate persuasively, both orally and in

writing, with other managers, staff, and the public is vital. such

managers also need tact, good judgment, and exceptional ability to

establish and maintain effective personal relationships with

supervisory and professional staff members and client firms.

CERTIFICATION AND ADVANCEMENT:

Some associations offer certification programs for these managers.

Certificationan indication of competence and achievementisparticularly important in a competitive job market. Although relatively

public relation managers currently are certified, the number of

managers who seek certification is expected to grow. Today, there are

numerous management certification programs based on education and

job performance.

In addition, the Public Relations Society of America offers a

certification program for public relations practitioners that is based

on years of experience and performance on an examination.

Because of the importance and high visibility of their jobs promotions,

public relation managers often are prime candidates for advancement

to the highest ranks. Well-trained, experienced, and successful

managers may be promoted to higher positions in their own or another

firm; some become top executives. Managers with extensive

experience and sufficient capital may open their own businesses.

EMPLOYMENTABOUT THIS SECTION:Advertising, marketing, promotions, public relations, and sales

managers held about 623,800 jobs in 2008. The following tabulation

shows the distribution of jobs by occupational specialty:

Sales managers 346,900


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Marketing managers 175,600

Public relations managers 56,700

Advertising and promotions managers 44,600

Job OutlookAbout this sectionEmployment is projected to grow about as fast as average. As with

most managerial jobs, keen competition is expected for these highly

coveted positions.

Employment change. Overall employment of public relation managers is

expected to increase by 13 percent through 2018. Job growth will be

spurred by competition for a growing number of goods and services,

both foreign and domestic, and the need to make ones product or

service stand out in the crowd. In addition, as the influence of

traditional advertising in newspapers, radio, and network television

wanes, marketing professionals are being asked to develop new and

different ways to advertise and promote products and services to

better reach potential customers.

Public relations managers are expected to see an increase in

employment of 13 percent between 2008 and 2018, which is about as

fast as average for all occupations, as organizations increasinglyemphasize community outreach and customer relations as a way to

enhance their reputation and visibility. Especially among the growing

number of nonprofit organizations, such as education services, business

and professional associations, and hospitals, where many of these

workers are employed, public relations managers will be charged with

promoting the mission of the organization and encouraging membership

or use of the organizations services.

RELATED OCCUPATIONS ABOUT THIS SECTION:public relation managers direct the sale of products and services

offered by their firms and communicate information about their firms
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activities. Other workers involved with public relations include the

following:

Actors, producers and directors

Advertising sales agents Artists and related workers

Authors, writers, and editors

Demonstrators and product promoters

Market and survey researchers

Models

Public relations specialists

Sales representatives .
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