CIELO : A CAR IN TROUBLE

GROUP MEMBERS

Diya Basu

Harshpreet Singh

Mayank Narang

Smita Jain

Varun Jenveja

1967: Foundation of Daewoo Group

1977: Tried to Enter into the joint venture with US auto Major GM but failed

1991: Daewoo bought out GM’s 50% stake in the venture for US$ 50 millions

1991: Take over 50% equity in DCM-Toyota and company renamed as Daewoo Motors

1997: Raised the stakes of DCM to 92%

2000: Daewoo was declared bankrupt

BACKGROUND HISTORY

1995-96 1996-97 1997-98 1998-99 1999-2000

43261

13776

90065512

4213

CIELO SALES IN INDIASales (no. of units)

SWOT ANALYSIS

STRENGTH• First Movers in India

• Entered in 1995• 3 Versions -CIELO, CIELO GLX & GLE• Only Competitor ( MUL)

AD• Successfully tried and trusted

strategy

• Technology with aesthetics• Feature rich , luxury car

• Acquisition with DCM Toyota

• Positioning “Technology with

aesthetics”/ family car

• Targeting

Premium class /middle class segment

• Segmentation No concept of segmentation available when CIELO was launched

WEAKNESS

• Quality defects• Complaints on Fuel Inefficiency

• No Training was provided to sales staff .

• Positioning of NEXIA and CIELO could not be independent of each other.

WEAKNESS

WEAKNESS• Incompatible management style for Indian

market

• Diwali Bonanza Scheme

• Lottery schemes

WEAKNESS

• High Import Content • high prices compared to competitors

• Ineffective Incentive • Pass on benefits• Prevailing finance rates – 23%• Offered Finance rates – 14.33%

OPPORTUNITIES• Targeted the mid size car segment

• Val-you Campaign-1998

• Encash on the Matiz image

• Scope in the Indian automobile market

THREATS

• Middle class boom did not take place as expected

• Recessions • Competition from other international

players• Creditors refused to give fresh loans

THANK YOU