FINAL PROJECT REPORT

FORD FIGO: MARKETING PLAN
SECTION B
GROUP 10

Ranjitha G P

FPM-08/10/M

Arun Kumar Agarwal

PGP/18/070

Kalpana Sharma

PGP/18/080

Neha Prasad

PGP/18/090

Punit Rathi

PGP/18/100

Sourav Pattanayak

PGP/18/110

Yaman Rai

PGP/18/120

Executive Summary
The market today is dominated by young and youthful people. Where a research agency says that 65% or over 700 million Indians are younger than 35 years. They are open to risk, novelty seeking and are willing to try anything that sets a trend, an attribute that has been accounted by their growing potential of purchasing power. As a result, marketers are forced to try innovative strategies where Markets have become too congested with competition.
The launch of Ford Figo was an important event and a turning point in the history of ford which entered the small car segment which was a sweet spot during 2009-10. As the competition grew and major macro environmental factors brought a dramatic shift in the economy, it became tougher and tougher for figo to sustain in the market. This marketing plan analyses the current situation of Figo in terms of macro and micro environment, SWOT analysis and its current marketing strategies in order to internalize and project a effective and efficient plan for 2014-15.
The major objective of Figo in this Marketing plan is to enhance the market share and sales by the next year 2015 as a short term strategy and bring a product innovation through new product launches, value delivery network penetration and major promotional changes. Thus the new marketing plan for 2015 and the next two years would be a market expansion and product development there by estimating a strategic development for the brand and company as a whole.

Situation Analysis
1.1 Ford Figo: Analyzing the Brand
In February 2010, Ford India Pvt. Ltd., the wholly-owned subsidiary of Ford Motor Company, launched its first small car, the Ford Figo, in India. Within 15 months of its launch, Figo sales had crossed 100,000 unit sales. The Ford Figo‘s rapid market growth saw it joining the club of the top five selling cars in India along with the Maruti Alto, the Hyundai i10, the Maruti Swift, and the Maruti Wagon R. Fast forward to
July 2014, and Figo sales stood at 1519, a decline of 43.3% from July the previous year.
To proceed with the analysis, we begin by performing an STP analysis.
Segmentation: The marketing strategy of Ford Figo was to capture the hatchback segment of cars along with Maruti Alto, Hyundai i10, Maruti Swift and Maruti Wagon R.
Target Group: Small car buyers, as small cars are 60% of total car sale in India; young urban working population, just married, with aspirations of moving up both socially and professionally; urban middle class families which are value seeking and status driven.
The Ford India Motors targeted younger generation of customers in their mid 20s who are young, ambitious and tech savvy.
Positioning: Refer to the table.
PORTER’S FIVE FORCE MODEL:
Rivalry - High
Before the launch of Ford Figo, Ford Motors had a share of less than 1.8% in the Indian car market.
Currently it has a share of little over 4% in the market. By October 2010, Ford had crossed 50000 benchmark and by June 2011, it surpassed 100000 units in sales. It crossed the milestone of 300,000 units in August in the third year o its launch. Maruti Suzuki (42%), Hyundai Motors (15.18%), Mahindra &
Mahindra (10.15%) and Tata Motors (7.94%) have been the dominant players with the combined share of around three-fourths of the Passenger vehicle sales.
In October 2012, Newer/Improved versions of Maruti Alto, Chevrolet Spark, Etios, Corolla Altis and
Fortuner were introduced with better features at almost the same price.
Threat of Substitutes - High
Honda Motors cut the price for its City sedan by 8.1 percent to 749,000 rupees as a move to increased competition. It became a challenge for Ford due to the price cut.
Buyer Power - Medium
Post June 2011, Customers started delaying purchases and more buyers opted for diesel models, which led to a mismatch in supply. Ford’s India passenger-car sales fell by 12 percent to 6,874 units in May
2011 from a year earlier.

Supplier Power - Low
Here the threat of supplier’s power is low due to the availability of the numerous substitutes and high competition. So essentially the suppliers do not have control over prices. They will have to supply the product as per the demand otherwise buyers have options to choose from the alternatives.
Threat of New Entrants and Entry Barriers - Low
As the population of India is about 1.2 billion and currently the middle class income group is around 17%
(204 million). The National Council for Applied Economic Research's (NCAER) Centre for Macro
Consumer Research said by 2015-16, India will be a country of 53.3 million middle class households, translating into 267 million people falling in the category. As per the findings, the percentage of the middle class in the country's total population will increase to 20.3 per cent by 2015-16 and 37.2 per cent by 2025-26.
This definitely is a lucrative market for new entrants for tapping the growing middle class consumers into buying cars from hatchback segment. The car manufacturers who are not into this segment can consider this as an option for entry into the market.

PESTLE analysis
Demand side variable Economic growth
(GDP)
CPI inflation
WPI: fuel, power and lubricant
Petrol
Diesel
Interest rate
(savings deposit rate) 2010-11

2011-12

2012-13

2013-14

2014-15

8.6%

9.7%

6.7%

4.5%

4.7%

-1.7

12.3

14.0

9.9
10.4

51.91(Nov
2010)
37.75(“)

63.7(Jul
2011)
41.29
Libor+2%

67.24(Dec
2012)
47.15
4%

71.52(Dec
2013)
53.78
4%

71.51(June
2014)
57.28

POLITICAL
There is mprovement in market sentiment with the coming of the new government at the centre.
ECONOMIC
Crude oil prices to structurally remain on weak category



Crude oil prices are expected to decline to $90-100 per barrel by 2017 led by significant increase in OPEC’s spare capacity
Crude oil supply to increase by 8 million barrel per day by 2017 vis-à-vis incremental demand of
3.4 mbpd

Social
Growing middle class and professional class: India’s middle class will hit250 million or 20 percent of
India’s population by 2015, according to Mc. Kinsey and Company.
The percentage of young people in the population is also at its peak. According to the office of the
Registrar General of India and Census Commissioner , India’s working age population (15-64 years)is
63,4% as opposed to 60% in 2001 (demographic dividend)
These are the people that Ford Figo is targeting. Thus the potential market is expanding.

Legal
Increase in import duty on Indian cars to EU, change in safety norms in Algeria and the preferential treatment given to EU by several African countries to affect exports.
---------

Analysis of:

Identify key factors -that may affect the demand and supply side factors of the selected brand

Comment- on how these factors may impact the demand/ supply in the previous years as well as the extent of impact.

Company

Market share of Ford: 4% 48% decline in domestic sales from 2013-14. (
75771 units per year to 38829 units per year) Expected/projected sales growth: 10-15% ( 38829 to at least
44000 units)
Launching new Variant: Figo
Concept, Figo KA
Exports grew by 64% in 2013-14

With an investment of over $2 billion and launching of nine models, in 17 years, Ford just managed to get a market share of around 4 per cent, a plant that was working at half its capacity (2012-13) and Rs 1,374 crore in accumulated losses.
Ford reported a cash profit of Rs 144 crore in
FY12. But a depreciation charge of Rs 284 crore pushed it to losses.
Lack of continuity in the leadership does impact long-term perspective and performance of the company.
By 2015, new facilities will deliver a capacity of 610,000 engines and 440,000 vehicles. Eight new products are also coming to India.

Customers

SEC

ambitious, with aspirations of moving up both socially and professionally.
Likes
international, established, trusted brands, stylish and cool in his circle.
Technologically savvy, Attractive design seeking, cost of ownership seeking. SEC:
 Middle class population expected growth 19% by 2015
 Growth in Annual income by 4.9% out of which disposable income is growing by 3.7%
 New registrations of passenger cars growing at 7% can be seen as a lifestyle indicator of middle class customers.  Economic, small models dominate
India's car market, accounting for around 70% of sales as aspirational middle class families(strivers and seekers growing by 4%), mainly relying on loans, trade in their motorcycles for four-wheeled status symbols. Major Competitors
Maruti Swift :
Market share : 11.13%
Annual Sales : 1,98,571
Dealers : 900
I10/i20:
Market share : 7.646%
Annual Sales : 136,440
New Launch : Elite i20

Competitive factors include price, quality, available options, style, safety, reliability, fuel economy and functionality
Maruti Suzuki was the market leader in the small cars segment, followed by HMIL and
Tata Motors.
PoD and PoP : design, package, driving dynamics, comfort, safety, fuel economy, and cost of ownership.

Upper most segment of the consuming class-A1,A2 and B1
Growing Middle segment- B2 and C
Psychographic:

Competition

Collaborators

Dealers : 650
Honda Brio :
Market share: 12.34%
New Launch : Jazz
Tata Indica Vista:
Market share : 10.6%
New Launch : Bolt, Kite
Fiat:
Market share : 1%
New Launch : Punto Evo
Dealership Margin : 4%
Media: Print(newspapers, magazines),
Broadcast (TV), Social Media, mobile marketing, Media Sharing Platforms
(YouTube), Social Media, and Search engines. Context/Macro
Environment

The challenges of driving in India, including maneuvering through potholes, street animals, and the occasional erratic driver, did not faze
Figo.

Ford has 230 outlet nationwide dealer networks. By aggressively entering into the Tier-II and
Tier- III cities, Ford has ramped up its dealership throughout the country.
Growing dealership base, building strong business fundamentals and getting closer to the customers have been areas of high priority as they gear up to launch new models of Figo.
Figo has second-largest newspaper audience in the world, 27,000 newspapers in India .
Leading motor journalists were brought together and provided with an opportunity to experience the car for themselves.
Comprehensive press launch kits, press people were invited to the design center to receive an in-depth briefing of the car. about 850 million mobile telephones users in the country
Refer to PESTLE analysis

Understanding Brand History and Marketing Plan 2013-14
2.1 Ford Figo till date
Ford India was established in 1995 as a wholly-owned subsidiary of Ford Motor Company, a global automotive industry leader. Since then, Ford has invested more than US$ 2 billion in India to expand its manufacturing facilities and dealership footprint.
Ford India currently operates out of its Maraimalai plant near Chennai. With another plant in Sanand in
Gujarat scheduled to be operational later this year, Ford India will double its manufacturing capacity in
India with an installed capacity of 610,000 engines and 440,000 vehicles.
Ford Motor started the production of new Ford Figo in Chennai in early 2010 following a $500 million investment by the company. The group also inaugurated the new engine facility at the Chennai plant to manufacture exclusive 1.2-liter petrol engine for Figo.
The plan was that while Figo would be manufactured primarily for Indian consumers initially, the new model also would be exported to other countries including South Africa, as early as middle of 2010. The

new, 40,000sqm flexible engine line would build both diesel and petrol engines side-by-side for the new model. Four cylinder engines in varying displacements up to 1.6 litres also would be produced for export at the Chennai facility.
More than 700 new employees were hired by Ford India at the expanded assembly and engine manufacturing facility in the past 12 months. The manufacturing centre was expected to provide additional employment, once the full line capacity was reached.
According to Michael Boneham, president and managing director of Ford India, , Ford Motor Company had reaffirmed its commitment to transform the plant located outside of Chennai into a regional manufacturing centre of excellence.
In 2011, Ford India announced that it will export Ford Figo to Mexico and more than 50 other international markets in 2011.
Alan Mulally, president and CEO, Ford Motor Company, said: "Since launching the phenomenal Figo last year, we've sold almost 80,000 vehicles and it has earned more than 20 awards, making the Figo one of the fastest selling and most awarded vehicles in the Indian auto industry. We are now delighted to export it to more than 50 markets internationally from our world class manufacturing facility in Chennai."
"The Figo and its success are symbolic of Ford's ambitious expansion plans in India and throughout Asia
Pacific," said Joe Hinrichs, president, Ford Asia Pacific and Africa. "We invested $500 million in our
Chennai assembly plant to double its capacity to 200,000 units and to build a new, state-of-the-art engine plant. Today, both plants are humming along as we continue moving forward with plans to bring eight new vehicles to India by the middle of the decade."

The Competition Scene
3.1 How does Figo fare?
Brand performance and Position in the market
Elements of
Marketing Plan

Ford Figo

Maruti Suzuki
Swift

Hyundai i10 & i10 Grand

Comments

Brand sales

2011-12: 70,052
2012-13: 60,964
2013-14: 32,586

2011-12: 153,529
2012-13: 184,897
2013-14: 198,571

2011-12: 123,681
2012-13: 092,897
2013-14: 136,440

Brand Market
Share

2011-12: 3.48%
2012-13: 3.22%
2013-14: 1.84%

2011-12: 7.600%
2012-13: 9.890%
2013-14: 11.13%

2011-12: 6.125%
2012-13: 4.957%
2013-14: 7.646%

While Ford India domestic sales grew at 9.0% y-oy, Figo hasn’t been able to arrest the slide. Brand Growth rate 2012-2013:
(12.97%)
2013-2014:
(46.55%)
2011-12: 90,423
2012-13: 75,771
2013-14: 38,829

2012-2013:
20.43%
2013-2014:
7.395%
2011-12: 855,730
2012-13: 861,337
2013-14: 890,455

2012-2013:
(24.89%)
2013-2014:
46.87%
2011-12: 387,168
2012-13: 382,851
2013-14: 379,555

Company Car
Market Share

2011-12: 4.5%
2012-13: 4.0%
2013-14: 2.2%

2011-12: 42.2%
2012-13: 45.5%
2013-14: 49.9%

2011-12: 19.1%
2012-13: 20.2%
2013-14: 21.2%

Company Growth
Rate for Cars

2012-2013:
(16.2%)
2013-2014:
(48.75%)

2012-2013: 1%
2013-2014: 3%

2012-2013:
(1.11%)
2013-2014:
(0.86%)

Company Car
Sales

Key opportunities and challenges for the brand (outcome of situation analysis)
Elements of Marketing
Plan
Challenges for the brand Ford Figo

Maruti Suzuki Swift

1.Intense competition
2.Government regulations and increasing fuel prices
3.Improvement in public transport
4. Increasing fuel costs

Hyundai i10/i10
Grand

Opportunities for the brand 1.Expanding global automobile market

1.Fast growing automobile market

2.Increasing per capita income 2.Increasing purchasing power parity

3.Attractive for middle income families due to low price

3.Use of their strong global brand presence

1.Increasing purchasing power and growing target base
2.Leverage strong brand name by more advertising 3.Newer innovations

Business Strategy and Marketing Objectives- 2013-14
Elements of Marketing
Plan

Ford Figo

Maruti Suzuki Swift

Hyundai i10/i10 Grand

Business Strategy

To maximize sales of
Figo without any further increase in costs, until the new Figo is launched in April 2015 while selling more of Utility
Vehicles
To peg back the fall in growth and sell at least
40,000 units of the present Figo in FY
2013-14

To improve on sales by
2% on the back of the launch of the new
Celerio

To get mark share in the small car segment up to
7% through the launch of Grand i10

To reach a 50% share
(by sales volume) in the small car segment by end of FY 2013-14

To improve market share beyond 20% in a segment dominated by
Maruti

Marketing Objectives
2013-14

Current Marketing Strategy
Positioning Statement
Elements of
Marketing Plan

Ford Figo

Maruti Suzuki Swift

Hyundai i10/i10 Grand

Target Group and need Small car buyers, as small cars are 60% of total car sale in India.
Young urban working population, just married, with aspirations of moving up both socially and professionally.
Urban middle class families which are value seeking and status driven.
Spacious, fuel-efficient, and most comfortable to drive car

Age - 20to 34
Family size - 4 to 5.
Occupation Professionals, Officials,
Supervisors, Youngsters.
Psychographic.
Attitude - Middle class, working class Upper middle Target Customer Type :Repeat buyer who is inclined towards technology and styling
Target Customer
Demographics :- Middle class(targeted to upper also). Age group 2030yrs

Improved performance and fuel efficiency

Fuel efficient

Single most important claim

Competitive frame Hatchbacks in the price range
4 – 7 lakhs

Hatchbacks in the price range 4 – 7 lakhs

Hatchbacks in the price range 4 – 7 lakhs

Single most important support

1 Litre EcoBoost engine with
100 PS of maximum power, class leading space and New steering column mounted audio control

Advanced K-series petrol engine powered with VVT, and award winning DDS diesel technology 1.1 CRDi diesel engine

Marketing Program
Product and Brand Management
Elements of
Marketing Plan

Ford Figo

Product Mix

Ford Figo EXI
Ford Figo LXI
Ford Figo
Titanium
Ford Figo ZXI

Brand extensions in the past

Not Available

Maruti Suzuki
Swift

Hyundai i10/i10
Grand

Comments

Maruti Swift LDI
Maruti Swift VDI
Maruti Swift ZDI
Maruti Swift LXI
Maruti Swift VXI
Maruti Swift ZDI
Maruti Swift Dzire

Grand i10

The new Figo sedan and the next generation Figo in the small car segment to be launched in 2015.

Hyundai i20

Promotions (Promotion Mix)
Elements of
Marketing Plan

Ford Figo

Major Campaign

1)Events – Fun filled viral teaser campaigned(why is this man smiling) 2)Blog(www.drivingford.in)

Maruti Suzuki
Swift
1)Product Centric add campaign
2)Print, electronic and outdoor media

Hyundai i10/i10
Grand
1)Celebrity
Campaigning
2)Write Your i10
Story

1)Direct Communication with press, dealers and customers
2)Social Media

Other communication modes

1)Advertised through Capital
Ads

1)Crowd Source
Campaign
2)Creative ad scripts from customers

Place (Channel share)
Elements of
Marketing Plan

Ford Figo

Maruti Suzuki Swift

Hyundai i10/i10 Grand

Plant Locations

Currently, all models of Ford
India Pvt Ltd (FIPL) are being manufactured at its
Chennai plant. Installed capacity at the plant stood at
200,000 vehicles and 340,000 engines per annum, (on a twoshift basis) as on March 31,
2013. The company's capacity utilisation in 2012-13 fell to
82 per cent from 90 per cent in 2009-10, mainly on account of sluggish automobile demand.

Maruti has a combined production capacity of
1.75 million vehicles per annum at its Gurgaon and Manesar plants. The company has a wide dealership network of
1,358 sales outlets across 1,034 cities and
3,053 service stations across 1,449 cities.

HMIL has two plants at
Sriperumbudur, Chennai and a research and development (R&D) centre at Hyderabad. As on March 31, 2013, its total installed capacity stood at 680,000 units with a flexibility to expand to 700,000 units.
The company has 388 dealers and over 1,000 service points.

Capital
Expenditure

FIPL has invested $1 billion to set up a new manufacturing facility in Sanand, Gujarat.
The facility will have an annual initial capacity of 240,000 vehicles and
270,000 engines. The facility is scheduled to be operational by the end of 2014 and start production in 2015.
The company aims to export
40 per cent of its production to South Africa, Mexico and other emerging markets.

-

In 2012-13, HMIL invested $300 million
(Rs 1.6 billion) in a new diesel engine plant, which has a capacity to manufacture 300,000 units. It is expected that the plant will produce 1.1-litre,
1.4-litre and 1.6-litre engines, which will be used in SUV and MUV models. Pricing Strategy
Elements of
Marketing Plan

Prices of variants, extensions Ford Figo

1)Ford Figo
EXI(4,54,370/5,54,068)
2 Ford Figo
LXI(4,04,119/5,03,819)
3) Ford Figo
Titanium(5,29,298/6,28,997)
4) Ford Figo
ZXI(4,90,726/5,90,425)

Maruti Suzuki
Swift

Hyundai i10/i10
Grand

1)Maruti Swift LDI5,75,261
2)Maruti Swift VDI6,23,179
3)Maruti Swift ZDI7,02,898
4)Maruti Swift LXI4,66,097
5)Maruti Swift VXI5,10,220
6)Maruti Swift ZDI5,95,557

i10 – 3,87,800 –
4,66,300
i10 Grand – 4,33.000
– 6,35.350

Future prospects of the brand
Elements of Marketing
Plan

Ford Figo

Maruti Suzuki Swift

Hyundai i10

Growth Potential

Moderate

Moderate

High

Efforts required in attaining marketing objectives Innovation in product positioning, performance of the car and getting the trust of the customer after recall.
Ford has to work upon its steering system.

Recently Maruti Swift hatchback volumes slipped by 4% to 15,874 due to inventory correction and competition. Sales go down because of lower fuel efficiency.
Hyundai intends to roll out fuel efficient cars to promote sales.

Marketing Plan 2014-15
Objective
First Year Objective:
The primary marketing objective is to achieve market share of 10% by the end of 2015 with increase in sales up to 42000 units for the year.
Second and Third Year Objective:

To increase the market share by 25% by launching new cars in the small car segment with a plan to reach a combined total of 1.8 lakhs units per year which includes the sales of KA and Endeavour.
To sustain the sales of Ford Figo up to 42000 units per year.
Marketing Strategy:
Product Strategy:
Introducing two new Ford Figo variants by the end of 2015 viz. KA and Endeavour with state of the art technology features with EcoBoost.
Our aim is to have 500 service touch points in the country by 2015. Around 40 per cent of these facilities would come up between tier II and tier IV towns which enhances the customer services.
Pricing Strategy:
Passing on the benefits of recent excise duty reduction to 8% from 12% for small cars to customers up to
Rs 23,399. It will have a positive impact on consumer sentiment and stimulate pent up demand.
Promotion Strategy
1. Launch a game app. This is to cash in on market penetration of cell phones networks in India.
We could launch a contest such that the first person to clear the last level in each of the four zones (North,
South, East, West) gets a free Figo each. We could increase awareness of the features of the brand by unlocking new features of the car on clearing particular levels. This is to target the youth who is into gaming and children who affect buying behaviour.
2. Have a race of Swifts event at the Buddh International Circuit during the next auto expo. Both venues are close to each other in Greater Noida. The race can be sponsored by other companies for visibility among potential Indian and international buyers with sufficient purchasing power.
3. Product display.
Have a product display in a mall. Hold small competitions. Give out free goodies.
Ditto for college fests. Cash in on the huge footfall that has come to campus for the upcoming star night event (eg-Mohit Chauhan’s musical performance at 8pm. Product placed in college since the morning till
7pm etc).
Hold small competitions with free goodies. For instance, we could place a wall that asks ‘What does smart mean to you?’ or conduct a small quiz to determine ‘who is the smart aleck of the campus?’ etc.
3. Collaboration
We could give a toy Figo car in Happy Meals.
Depending on the budget, we can also display in the car in companies that employ youth like Infosys does. 4. Causes and Charity
Car with a heart
Promoting your products while supporting a cause can be an effective promotional strategy. Giving customers a sense of being a part of something larger simply by using products they might use anyway creates a win/win situation. From this, we get the customers and the socially conscious image; customers get a product they can use and the sense of helping a cause. One way to do this is to give a percentage of product profit to the cause your company has committed to helping.
This may allow Ford to increase mark-up over costs in spite of reduction in excise duty as in this case, the customer will think additional money is going for a noble cause.
5. Celebrity endorsement
We can invest in getting a celebrity on board. Though this may be expensive, it may also pay large dividends. We should rope in someone who goes well with the positioning of the brand-someone smart.
6. Customer Referral Incentive Program
This is a way to encourage current customers to refer new customers to the car dealerships. Free products, big discounts and cash rewards are some of the incentives that we can use. Thus, we may leverage our customer base as a sales force.
7. Contests
Contests are a frequently used promotional strategy. Many contests don't even require a purchase. The idea is to increase brand awareness and thus brand recall and recognition. People like to win prizes.
Sponsoring contests can bring attention to our product without company overtness. We can also use social media for this. Ford Figo seems to be using this already on FB. They ask questions like “What is the farthest you have driven in one trip?” Additionally, they could start giving awards for such claims that are supported by evidence.

Place (Distribution) Strategy:
During the first Year, we will add channel partners by covering major tier – II to Tier – IV Indian markets. We will increase our dealership networks to 500 by the end of 2015. We plan to arrange special payment terms and incentives for the dealers to make the best sale.
Action Programs:
Sep – Dec 2014: Aggressive Promotion on social media networks.
Discover Smart Drive Season 3:
In the end of December 2014, launch of Discover Smart Drive Season 3 in collaboration with one of the major tv channel, covering major cities of East, West, North, South of India. Encouraging smart people to participate in the event and get a chance to drive back home the all new Figo.
Jan - Feb 2015:

Launch of new Figo teaser and taking a cricketer celebrity as the brand ambassador and campaigning aggressively during the cricket world cup 2015.

Financial Analysis
201112

shar e 201213

shar e Figo
Swif
t

70,052
153,52
9

3.48
%
7.60
%

60,964
184,89
7

3.22
%
9.89
%

i10

123,68
1

6.13
%

92,897

4.96
%

tota l 201928
2

187405
7

-7%

growt h 12.97
%
20.43
%
24.89
%

cumulativ e 201415

-32%

34215

198,571

1.84%
11.13
%

growt h 46.55
%
7.40%

14%

212471

1.83%
11.34
%

136,440

7.65%

46.87
%

5%

143262

7.65%

1784462.4
64

-5%

187368
6

5%

2013-14

share

32,586

share

Rationale behind analysis
Small car Market will grow at 5% p.a.(as per
Assumptions
crisil)
Observations/ Insight: In past 3 years market declined by 5 % and 7% respectivly which impacted figo most Figo is the cheapest of all these brands so when market shrank by 5% or
7% ,bottom 5% or 7% people by income avoided buying cars which
Reason
impacted figo most
Now when market will grow, sales of figo will also grow.
Car sales of any brand depends on 3 parameters 1. Market growth and sensitivity to it, a product with customer from lower income band of the segment will be most sensitive to the growth
2. Market share, a player with higher market share is likely to gain most from increased market
3. Promotions and discounts by brand, these activity boost one time sales of the product