Marketing

MARKETING OF PASSENGER CARS

MARKETING: Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.

PASSENGER CAR: A passenger car is a wheeled motor vehicle for transporting passengers, which also carries its own engine or motor.

CLASSIFICATION:  Microcar  Hatchbacks, saloons (sedans) and estate cars (station wagons): City car, supermini, compact, large family car, full size car, compact executive, executive, luxury.  Convertible

 Sports cars and grand tourers: sports compact, sports sedan,sports car, grand tourer, supercar, muscle car, pony car.  Off-roaders: SUVs, crossover SUVs,  Multi purpose vehicles/Minivans  Van, camper, RV, minibus etc.

IMPORTANT PLAYERS:         

Audi Bentley BMW Chevrolet Fiat Ford HM Honda Hyundai

        

Mahindra Maruti Suzuki Opel Volvo Porsche Tata Toyota Volkswagen Mercedes

TATA MOTORS:  Established in 1945 .  Tata Motors Limited is India’s largest automobile company, with revenues of Rs. 24,000 crores (USD 5.5 billion) in 2005-06.  It is the 2nd largest in the passenger vehicles market with winning products in the compact, midsize car and utility vehicle segments.  Vision :“best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics.”

MARUTI SUZUKI:  It has started business in 1909.  Maruti Suzuki India Limited (MSIL, formerly Maruti Udyog Limited) is a subsidiary of Suzuki Motor Corporation of Japan.  It is India's largest passenger car company.  It accounts for over 50 per cent of the domestic car market.

HYUNDAI:  Established in 1967.  It is ranked as the world’s 6th largest automaker in 2006 and includes more than two dozen auto-related subsidiaries and affiliates.  It presently markets 30 variants of passenger cars across segments.  Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms.

HONDA MOTORS:  It was established in 1948.  Sales :Consolidated: ¥12,002,834 million Unconsolidated: ¥4,088,029 million.  It operates under the basic principles of "Respect for the Individual" and "The Three Joys" .  It has conducted its activities with a commitment to protecting the environment and enhancing safety in a mobile society.

MARKET SIZE: Market size is defined as the number of buyers and sellers in a particular market.

SALES FIGURES:

Sales matrix for 2007

SALES 80000 70000 60000 50000 SALES THIS 40000 YEAR 30000 20000 10000 0 ta uti S

Ma hin d

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Ta

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Ma h

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Ma r

Hy un d

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SALES

COMPANIES

GROWTH 40.00% 30.00%

GROWTH

20.00% 10.00%

GROWTH

0.00% -10.00%

GM

Honda

Hyundai

Maruti Suzuki

-20.00% -30.00% CO.

Tata

Mahindra & Mahindra

BEST SELLING CARS:

MARKETING STRATEGIES:  Mass marketing (Maruti Suzuki)  Segment marketing  Undifferentiated (Mercedes,Honda etc.)  Differentiated (Maruti Suzuki)  Niche marketing (Mercedes, BMW, Audi etc.)

Catchy taglines…….

Celebrities and ads…….

Promotion through Movies

Attractive offers

COMPETITION:      

Maruti’S Wagon R vs Hyundai’s Santro Maruti’s SX4 vs Honda City Tata Nano Maruti’s A-Star, Splash vs Tata Nano Hyundai’s i20 vs Tata Nano Hyundai’s Santa Fe vs Honda CR-V

INNOVATIVE STEPS:    

ABS Seat belts Airbags Air conditioning/ climate control

   

Modern lighting In car entertainment Satellite navigation Common rail injection

FUTURE CARS:

S W O T

SWOT analysis of Hyundai Motors: Strengths  Strong domestic market  Good quality  Cheap labor costs  Production facilities. Weaknesses  Design  No luxury cars  No innovations

Opportunities  Cost reduction  Diversification  Cheaper cars  European and African market Threats:  Competitors from Germany, Japan.  Threat from local companies.

SWOT analysis of Tata Motors: Strengths  Strong market position  Strong revenue growth  Research and Development Weaknesses  Dependent on vendors  Overdependence on Indian market

Opportunities  Road development  Territorial expansion  Car penetration in India Threats  Global competition  Government regulations  Diesel fuel issues

SWOT analysis of Honda Motors: Strengths  Quality  Reliable  Performance-oriented Weaknesses  Weaker brand image  Declining operating margins  Market share is threatened by huge lineups from Toyota and Nissan.

Opportunities  Interest in environment friendly vehicles  Major Player in the emerging markets (BRIC countries). Threats  Rising oil and raw material prices in the world market.

SWOT analysis of Maruti Suzuki: Strengths  Established distribution and after sales networks  Understanding of the Indian market and ability to liaison with the government.  Ability to design products with differentiating features  Brand image  Experience and know-how in technology. Weaknesses  Lack of experience with foreign market

Opportunities  Government subsidies  Tax benefits  Foreign collaboration  Increased purchasing power of Indian middleclass category Threats  Threats from Chinese manufacturers  Indian as well as foreign competitors.

SCOPE: Emergence of new passenger car industry is because of factors like:  Distribution systems  New generation of engines  Entry of foreign manufacturers  Manufacturing technologies  Components, tyres  Value added services

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Materials Changing demand structure Auto finance Regulatory framework

Thank You GROUP NO. 9 [SWATI SAINI(849) SURBHI LAKHANI(846) SHUSHANT YADAV(842) RISHU BATRA(834)]