...Research The actual goal of the research process is to evaluate the customer’s buying behavior of cars by taking Tata Nano as the primary example and analyzing car-marketing segments in the automobile industry in order to support the Indian automobile companies especially Tata Nano, for improving their market sales. Scope of the Research The main scope of this project is to analyze the information on the Indian automobile industry and the car marketing aspects of automobile industry by considering Tata Nano as an example. This research will provide the detailed overview on the automobile industry in India and the changes in the Indian automobile industry after the establishment of Tata Nano. It will cover the different aspects related to the car marketing like the marketing plans and marketing strategies required for success. Factors of the Research The main factors of this project are as follows: * The overview of the Indian automobile industry * The detailed information on the buying behavior of the customers when they buy cars Research and Study Within the process of completing this research, hasn’t faced any obstacles until now and in the process of gathering the information from the different types of data collection methods of secondary source of data, there are some limitations and restrictions for collecting the information. In the process of gathering the information from the articles and case studies of previous scholars the researcher was asked to...
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...Term Paper Of Research Methodology (A Perspective on the Future of Small Cars in India) Submitted to: Submitted by: Ms. Kanika Jhamb Naveen Bangwal Roll no. - 05 Section – A17B2 Reg. no. -7470070078 B-Tech (h) - MBA (IT) Table of contents Abstract introduction objectives and scope of the study RESEARCH methodology literature review tata’s nano conclusion recommendations bibliography abstract A strong car brand can create significant value in the automotive industry. The price consumers expect to pay for otherwise identical luxury vehicles can vary as much as $4,000, depending on the car's brand. For mass-market cars, brand helps determine which products a consumer considers buying. Furthermore, superior brands extend their halo across every model of vehicle within the brand. It's no surprise that most auto manufacturers make brand positioning and development a key item on their marketing agenda. Because of the prominent role that brand positioning and development play in many auto manufacturers' business strategies, this research has been conducted under extensive research and analysis to better understand how consumers think about car brands. The study analyzes the set of factors which provide valuable insights into consumer brand perceptions. The...
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... CHAPTER 1 INTRODUCTION INTRODUCTION The automobile industry is one of the largest industries in India as in many other countries. It plays a major role in the growth of economy in India. The automobile industry in India is the ninth largest in the world with an annual production of over 2.3 million units in 2008. The industry comprises automobiles and auto component sectors, which encompass passenger cars, two-wheelers, three-wheelers, tractors, commercial vehicles, multi- utility vehicles and components. Today, the Indian automobile industry is the world s largest motorcycle manufacturer, the second largest two-wheeler and tractor manufacturer, the fifth largest commercial vehicle manufacturer and the fourth largest car maker in Asia. Apart from serving the domestic market, the Indian auto sector has also become a sourcing hub for the global auto giants. In 2009, India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. The Government of India has introduced an ambitious project of setting up world-class automotive testing and R&D infrastructure to place India in the USD 6 trillion global automotive business. This book details the current status and factors influencing the growth of the Indian automobile industry; its future prospects and the success stories of some automobile giants in India. It also focuses on the future growth of the industry as a result of the newly adopted technologies and strategies. India is...
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...year ago. For the year ending March 2011, passenger vehicle output is expected to exceed 2.5 million. India is emerging as a major production base for small cars, with output expected to reach 3 million units by 2016. The country is building a reputation in designing and manufacturing low cost cars. Production of trucks and buses increased by nearly 66% between April 2010 and Aug 2010. An expanding highway network and overall economic growth is pushing up demand. India is the second largest market for motorcycles worldwide. Output of over 4.5 million units was registered during April 2010 – Aug 2010, marking growth of over 27%. The auto parts industry is also scaling up, as global car manufacturers are increasing their component sourcing from India, due to cost and engineering competencies. Competition is intense as most global firms have entered the market. O nly three decades back, Indian car buyers had just two models to choose from. Both were local reproductions of European models that had disappeared from the western markets soon after World War II. Irrespective of market demand, manufacturing capacity was restricted through government licenses, and buyers had to wait several months after paying cash up front to get delivery. Imports were discouraged through very high duties, which remain high even now, and foreign-made cars were prized possessions of only the most affluent. Thomas White International Ltd 1 www.thomaswhite.com ...
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...Automobile industry). With a population of over 1.2 billion people, India has a huge market potential for automobiles. In the Indian Automobile Industry, India has become a leading center in producing small cars. In the year 2006, Ratan Tata of Tata Motors conceived the idea of a tiny car at an extremely cheap price to capture the potential of the rapidly growing middle class segment. The outcome was the Tata Nano, the world’s cheapest car priced at one lakh INR. Rolled out from Tata Motors as the world’s cheapest car in the year 2009, the indigenous Tata Nano achieved immediate success, fulfilling its promises of a complete car at an affordable price for the middle class masses. The Tata’s had relied rather heavily on the publicity of their product. But rather than leveraging this publicity, Tata became complacent about the communication strategy. The USP of the product, the “cheapest” price tag, had backfired miserably, and actually shunned its sales. The status conscious customer obviously did not want to get associated with the tag of “Poor man’s car”, and would rather opt for slightly pricier rival options. Hence, instead of being perceived as a functional step above the motorcycle as it was intended to be, the Tata Nano started being largely perceived as a cut-price car. The Tata Nano was initially conceived as a safe personal mobility alternative to the huge section of the Indian two wheeler riding population, at an equally competitive price. But the safety of the car came...
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...Application of Porter’s Five Forces Model on Tata NANO Brand Name: Unit Name Unit Code Tutor School Date Introduction The turnover in automotive industry is growing significantly. Companies need to sell their product across borders. To realize this, companies must evaluate the market forces in target markets in order to increase sales. One strategic tool used in evaluating market forces is porters five forces model. This tool highlights the key factors that determine the industry competition and the viability of such a market. The porters five forces model has been evolving with time. The principle ‘’the state of competition in an industry depends on five basic forces’’ (Porter, 2008 P.3) is still relevant. This analysis model covers a wide range of factors affecting the industry. Companies with awareness about their environment are able to make strategic decisions concerning their business. This paper discuses the application of Michael porter’s five forces model by Tata Motors Company on their new product, Tata Nano. Tata motors are the largest automobile company in India with revenues in excess of USD 16 billion in 2011. Tata motors have subsidiary companies and associate companies involved in various industries including mining, oil, manufacturing, and telecommunications. Tata motors have operations in Spain, Korea, Thailand, UK, and South Korea. The paper begins by identifying porters five forces. Second, a brief history...
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...SWOT- Analysis of Automotive STRENGTHS 1. Indian Automobile Industry is globally cost competitive: It is possible because of cheap labor availability and tax holidays provided by SEZs. 2. Government support: Indian government has also put Auto among its priorities 12 with 2012 target to become 10% of our GDP. 3. Indian Automotive Industry is following global accepted quality measures at a lower cost. This makes it a perfect destination for production-outsourcing of automobiles. 4. The availability large talent pool at cheap prices. 5. Availability of cheap R&D; IITs be deemed as centers of excellence for automobile research and access to latest technology. WEAKNESS The biggest and probably the only weakness of Indian automobile Industry is its slow growth in Research and Development most companies (barring TATA and M&M) do not have adequate spending on R&D in comparison to their turnover. Maruti for instance is completely dependent upon Suzuki for any new technology all of the successful cars sold by it were developed by Suzuki; Swift, A-Star (which replaced alto in other markets as New Alto), SX4, Ritz etc. This weakness will soon become history as Indian companies are catching fast in R&D and are showing strong signs of success e.g.: M&M Scorpio Hybrid, TATA Nano. Besides R&D the other weakness is political hostility (TATA Nano Singur plant) but is only a regional problem of less developed states or pro-communist states, states like Gujarat, Maharashtra...
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...SUMMARY | | 2 | OBJECTIVE& SCOPE OF THE PROJECT | | 3 | INDUSTRY PROFILE | | 4 | COMPANY PROFILE | | 5 | THEORETICAL BACKGROUND | | 6 | RESEARCH METHODOLOGY | | 7 | DATA ANALYSIS AND INTERPRETATION | | 8 | FINDING & OBSERVATION | | 9 | LIMITATION OF THE PROJECT | | 10 | CONCLUSION & RECOMMENDATION | | 11 | BIBLIOGRAPHY | | 12 | ANNEXURE | | 1. EXECUTIVE SUMMARY Executive Summary: 2. OBJECTIVE & SCOPE OF THE PROJECT * OBJECTIVE OF THE STUDY 3.INDUSTRY PROFILE INDUSTRY PROFILE Indian Automobile Industry History and development The history of the automobile industry in India actually began about 4,000 years ago when the first wheel was used for transportation. In the early 15th century, the Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By the 1600s, small steam-powered engine models were developed, but it was another century before a full-sized engine-powered automobile was created. The dream a carriage that moved on its own was realized only in the 18th century when the first car rolled on the streets. Steam, petroleum gas, electricity and petrol started to be used in these cars. On a growth path The Indian auto industry, worth US$ 34 billion in 2006, has grown at a CAGR of 14 per...
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...Topic: Apply the Porter's five forces model on Automobile Industry and analyse the attractiveness of the Industry for Investment purpose Evolution of Porter's Five Forces Model Five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. Michael Porter is a professor at Harvard Business School andis a leading authority on competitive strategy and international competitiveness.Michael Porter was born in Ann Arbor, Michigan. Five forces uses concepts developing, Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the industry profitability. An "unattractive" industry is one where the combination of forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition". Introduction Five Forces Model by Michael Porter Five Forces model of Michael Porter is a very elaborate concept for evaluating company's competitive position. Michael Porter provided a framework that models an industry and therefore implicitly alsobusinesses asbeing influenced by five forces.Michael Porter's Five Forces model is often used in strategic planning. Porter's competitive fiveforces model is probably one of the mostcommonly used business strategy tools and has proven its usefulness in numerous situations when exploring...
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...GOSWAMI-10BSPHH010718 INDIAN AUTOMOBILE INDUSTRY (A MACRO AND MICRO ANALYSIS) With a Focus on TATA Motors | FINAL REPORT (Business Strategy) | IBS-2011 BS-SEC I (Group-3) SHINY ACHARYA-10BSPHH010733 SHWETABH SRIVASTAVA-10BSPHH010766 SUNIL Kr. YADAV-10BSPHH011074 SAURABH TRIVEDI-10BSPHH011076 NILABH-10BSPHH011081 RAGHINI SHARMA-10BSPHH010936 SHAUNAK GOSWAMI- | Table of Contents Indian Automobile Industry: An Overview 3 A. Macro analysis of Indian Automobile Sector 3 1. PESTEL Analysis 3 I. Political and Legal Factors 3 II. Economic Factors: 4 III. Social Factors: 5 IV. Technological Factors 6 V. Environmental Factors 6 2. Key Drivers of Growth and Change 6 3. Porter’s Diamond 7 I. Factor Conditions 7 II. Demand Conditions 7 III. Related and Supporting Industries 8 IV. Firm Strategy, structure and rivalry 8 B. Micro-analysis of Automobile Industry 9 1. Porter’s 5 Force Framework 9 2. Dynamics of Competition 9 C. Competitors & Markets 10 1. Strategic Groups 10 2. Market Segments 13 3. Identifying Strategic Customer 16 D. Strategic Gaps 17 E. Tata Motors 19 1. Introduction 19 Mission Statement 19 Vision Statement 19 Goal 19 Core Values 19 Market share 19 Revenue and profits 20 Domestic growth 20 2. SWOT Analysis 22 3. Strategies 24 4. Projection of Revenue/Market Share for next five years 25 5. Implications of the Strategies 27 6. Conclusion 28 F. References 29 Indian Automobile...
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...The Industry: * Dominated by local players(90% of tires) * In 2006, 40 competitors with production volume 70 million tires * 4 local players alone accounted 75% of sales * Expansion of automobile mkt, production of vehicle doubled b/w 1994-2004 * Growth of 2 wheelers & 3 wheelers was high because of city dwellers * Resulting in growth in no. of tires sold 4.5 % in 2004 and 5% in 2005 Two main tire technologies * Diagonal or cross ply (created in 1950) * Easily recognised with its very high profile * In contrast, represented 65% of tire sales (value?) in India * Because of factors specific to India (emerging countries) * Variable quality of road, tendency to overload vehicles * Competitive price of Cross-ply * Long life expectancy, double of radial * Great capacity of absorption on rough terrain * But poor road holding at high speed * Strong risks of coming off the rim at high torsion and stress * Radial (Created in 1965 by Michelin) * Flat but wider * Established itself in developed countries with * Increased performance * Better adhesion * Greater resistance to torsion and friction * Sales growing slowly in India but with improvements in roads and car performance * Technological improvements were being made to cars in recent years * In 2006, radial represented 85% of car tire sales by volume (28% in 1995) * Radial...
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...of time, Toyota was the world’s leading manufacturer of automobiles and Volkswagen had been struggling to get to the top for quite some time. Volkswagen's Chairman Martin Winterkorn said at a press conference in Tokyo – “We want to be the world's No.1 automaker by 2018 and Suzuki's cooperation will accelerate the achievement of our goal". Suzuki’s latent ambition was to become the prime automaker in Japan. It intended to rely on Volkswagen to develop eco-friendly hi-tech vehicles like electric cars and gasoline electric hybrids – an area in which it was lacking technical know-how. Suzuki had also envisaged designing & developing diesel engines in partnership with Volkswagen. They agreed to share technologies and cooperate with each other in a number of critical areas. VW agreed to provide its larger-vehicle technologies to Suzuki and in turn the latter agreed to provide VW access to its small-displacement motors. While the future partnership goals generated curiosity among industry observers, both the auto manufacturers botched to arrive at an agreement on any of their proposed goals. Clearly, the alliance was an important strategic step for both the auto-manufacturers. But unfortunately it could survive for only 20 months. Since August 2011, there were signs that the partnership was...
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...INTRODUCTION: Fundamental analysis of a business involves analysing its financial statements and health, its management and competitive advantages, and its competitors and markets. Fundamental analysis includes the economic analysis, industry analysis and the company analysis. There are certain factors that are to be considered while doing the fundamental analysis and it includes Financials of the company It involves the study of financial health of the company using the various financial reports, like the profit and loss account, the balance sheet, and the cash flow statements. State and direction of domestic economy This is a study of the country’s economy in which the company operates. If the economy is growing fast, the probability of the company growing fast is greater. Similarly, if the economy is facing a slow growth, the chances of the company growing fast are lesser. Currency & commodity price movements Most companies use commodities like coal, metals and crude oil as their inputs. Any change in the price of these commodities has an implication on the profitability of the company. Similarly, any change in the exchange rate of currencies also has an impact on companies that import their raw materials or export their products. Interest rate movements Companies borrow money to invest for their expansions. Also, consumers borrow money to buy products. Thus, if the interest rates are high, the borrowing cost of the companies would increase. Also, consumers would...
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...of TRANS Asian Research Journals TAJMMR TRANS Asian Journal of Marketing & Management Research Vol.2 Issue 3-4, March-April 2013, ISSN 2279-0667 A STUDY OF SMALL CAR CONSUMER PREFERENCE IN PUNE CITY Mrs. Beena John*; Dr. S. Pragadeeswaran** *Research Scholar, MS University, Tirunelveli, India. **Deputy Controller of Exams, Annamalai University, Annamalai Nagar, Tamil Nadu, India. ABSTRACT Indian Automobile small car business is influenced by the presence of many national and multi-national manufactures after liberalization in 1991. The presence of the many manufacturers and variants within the city provides several decision options to the customers as they supply similar product proposition, creating the passenger automotive small car market highly competitive Customers now search for those differentiating parameters, which may help them to choose among the alternative products available in the market. The purpose of this paper is to come with the identification of parameter that influence the customer purchase preference behavior patterns of passenger automobile small car owners within the city of Pune. Of greatest interest to the current study is the impact of demographic variables and income affecting the vehicle selection of small cars. KEYWORDS: Consumer preference, small cars, influencing factors. ___________________________________________________________________________ INTRODUCTION India assisted by its economic advancement, is experiencing...
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...STRATEGIC MANAGEMENT ASSIGNMENT ASSIGNMENT ON ANALYSIS OF THE SECTOR USING PORTERS DOUBLE DIAMOND MODEL ON INDIAN AUTOMOBILE INDUSTRY Submitted To Prof. A. K. Kher Submitted By Rameez Bagban 03 Shahanawaz Mujawar 11 For the academic year 2014-15 INTRODUCTION: The Indian automobile industry is one of the key drivers of industrial growth and employment, which will gain rapid importance. In order to accelerate and sustain growth in the automotive sector, a roadmap is needed to steer, coordinate and synergize the efforts of all stakeholders. Exogenous and endogenous factors affecting industry also affects the competitiveness of the firms. Competitiveness captures the awareness of both the limitations and the challenges posed by global competition as an exogenous factor. Underdeveloped economies tend to be competitive by producing cheaper products, developing economies by producing better products, and developed economies by producing innovative products continuously. Though Indian automobile manufacturers are manufacturing innovative products and leading India to a new summit, there are various roadblocks, which prevent this industry from being a global player. COMPETITIVENESS DEFINED: Competitiveness has emerged as a paradigm towards the economic development. Michael Porter has defined competitiveness as productivity with which a nation utilizes its human, capital and natural resources. To understand competitiveness, the starting...
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