...Market Scenario With the advent of vehicles like Mahindra Quanto, Premier Rio and Renault Duster launched in the country, the Compact SUV market is making a name for itself with more and more consumers moving towards this segment. Claiming to give an experience of both the worlds; a compact premium hatchback and an entry level sedan, the makers of these SUVs are pitching the product to appeal to a younger, professional and lifestyle oriented users. According to Vivek Nayer, CMO, Automotive Division, Mahindra and Mahindra, the brand that launched Quanto two months back, says that Mahindra is trying to create a new segment as the market for compact SUV was non-existent in India. He explains that this segment will appeal to hatchback owners, entry level sedan owners and SUV owners as well. There are areas and scope for improvement in each of these segments. For example, he says hatchbacks are compact, have decent mileage and have easy manoeuvrability but do not have the presence, high ground clearance or the space of an SUV. “We believe that the compact SUV is the best of both worlds, it allows the user to get the feel of both the worlds. It is compact from the outside, easy to manoeuvre in the city, and at the same time spacious from the inside,” adds Nayer. Change to compact Umang kumar, Co-Founder and CEO Gaadi.com affirms that the segment has gained popularity, but only over the past few years in India. “People in India now indulge in more outdoor activities compared to...
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...1. Renault Duster Case Study 2. 2. Renault India • Renault came to India in 2005 in a JV with Mahindra and launched the Renault-Mahindra Logan • Within a short span of 5 years, Renault ended its JV with Mahindra and planned to strengthen its network in India by launching new cars by 2011 • Fluence became the first car launched by Renault in India • Expanded it portfolio by launching Koleos and Pulse • However, it was 2012 which proved to be a tipping point for the company when it launched its iconic compact SUV Renault Duster 3. 3. Dacia Duster • Duster was officially launched at the Geneva Motor Show, by the Romanian based Dacia group • Dacia is one of the Romania based automobile company founded in 1966 • It was later acquired by Renault in 1999 with an ambition to make Romania the automobile hub for Europe and Central Asia • Duster positioned as the ‘shockingly affordable car in Europe is considered as one of its most successful launch 4. 4. SUV Market in India SUV’s MUV’sVehicle Categories in India Renault’s Category Innovation Compact SUV A SUV that married the comfort of a sedan, to the rugged strength of a SUV 5. 5. Renault Duster “Made in India” • Globally sold as Dacia Duster, it was sold as Renault Duster in India due to higher brand awareness among Indian consumers for Renault • Globally positioned as the ‘shockingly affordable’ car it was re-positioned as ‘for the unstoppable Indian” • Highly Localized, carrying 60 per cent localized parts 6. 6...
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...(mostly all the cars of maruti,Hyundai tata etc in india have this ) V6, V8, V10,V12 and W12 Automobile scenario in india 5 main leadings companies Maruti Suzuki Hyundai Tata mototrs Mahindra Hero Honda India has the 9th largest automobile industry 2nd largest 2 wheeler market 4th largest in heavy trucks Monthly sales of passenger cars in almost 100,000 units TATA MOTORS Slogan of tata motors “more car per car” Popular vehicles; indica, indigo, indigo manza, indicab (nano the latest invention), sumo(gold/victa) , Safari Tata motors lost its share mainly to VW and ord during 2010- 11 Various configs of the engines CRDI- common rail diesel injection DICOR- diesel on common rail system Quadrajet VVT- variable valve timing(petrol engines ) CVT- constant variable transmission All the engines of tata cars for diesel variant are manufactured by “FIAT” Market share of TATA motors is almost 31% with the major ruler being “Maruti” followed by Hyundai. Common engine parts in cars Radiator- used to cool the engine when overheated Turbo charger- used in almost all diesel variant cars to boost the pickup of the car, by increasing the torque Crankshaft- connected to the flywheel of the car Camshaft- maintains the opening and closing of the valves Disc brakes- solid and ventilated (99% work strength) Alternator- used to charge the batteries Purator- it’s the air filter ALL THE HATCHBACKS AND SEDANS IN INDIA ARE FRONT WHEEL DRIVEN meaning- the differential...
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...WORLD AUTOMOTIVE MARKET The global Automotive industry generated revenues of $1,469.3 billion in 2009 (Datamonitor, 2011), corresponding to the manufacturing of 57.6 million light vehicles1 (PwC, 2011). In 2011, this market rose sharply to 74.6 million vehicles and is expected to grow to 106 million vehicles in 2018 at a 5.2% CAGR in the period (PwC, 2012). The major contribution to this growth will come from emerging markets, with 84%, with the BRIC2 countries alone representing 64%. The Automotive industry is still a very concentrated market, where the top 12 manufacturers represent 83% of the units assembled in 2011 (PwC, 2012). Despite this market structure, there have been a few new entrants, such as Tesla Motors and BYD, both electric car manufacturers. In Table 1, an analysis of the Automotive market environment is presented. FACTORS Political COMMENT IMPACT ON DEMAND/SUPPLY Governments and municipalities interest in green vehicles Positive for green product lines Disposable income Growing wages in developing countries, growing middle class with purchasing power Positive Low interest rates in developed economies Positive Currency fluctuation Loss of competitiveness due to strong currencies (Dawson & White, 2012) Negative for Japanese /Brazilian Lifestyle changes Approach to Western lifestyle in developing countries, demand for low-end cars (Ayres, 2012) Positive Green issues Global awareness regarding...
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...Plan – Auto Show business..Life style magazines…Luxury Hotels & Resorts…Blog…mall activations..Blog… social media…celebrity endorsements…IPL7…world 20-20…3d Ads… Audi A3 Sedan Website… 60% is print, 15% would be traditional online spend, 15% social media and alternative digital, and 10% would be television. Measurement Metrics – Audi sedan cars existing in India with model and prices Audi A4 * Audi A4 2.0 TDI Celebration Edition * 25,99,000 * 16.55 * * New Audi A4 2.0 TDI Multitronic * 30,69,000 * 15.2 * * Audi A4 2.0 TDI 177 Bhp * 33,61,000 * 17.11 * * Audi A4 2.0 TDI 177 Bhp Premium Plus * 35,86,000 * 17.11 * * Audi A4 2.0 TDI 177 Bhp Technology Edition * 38,66,000 * 17.11 * Audi A6 Pictures User Reviews (6) Audi A6 * Audi A6 2.0 TFSI Premium * 43,67,000 * 9.2 * * Audi A6 2.0 TFSI Premium Plus * 48,65,000 * 9.2 * * Audi A6 2.0 TFSI Technology * 51,00,000 * 9.2 Keeping in line with Audi’s (relatively) aggressive plans on expanding in the Indian market, there’s more than a chance that this...
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...HYUNDAI MOTOR INDIA LTD Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC). HMIL is the largest passenger car exporter and the second largest car manufacturer in India. It currently markets eight passenger car models across segments -- in the A2 segment it has the Eon, Santro, i10 and the i20, in the A3 segment the Accent and the Verna, in the A5 segment Sonata and in the SUV segment the Santa Fe. HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of advanced production, quality and testing capabilities. HMIL forms a critical part of HMC's global export hub, it touched 1.5 million in exports in March 2012. It currently exports to more than 120 countries across EU, Africa, Middle East, Latin America and the Asia Pacific. HMIL has been India's number one exporter for seven years in a row. To cater to rising demand the company commissioned its second plant in February 2008 having an installed capacity of 330,000 units per annum. To support its growth and expansion plans HMIL currently has 346 dealers and around 800 service points across India. In its commitment to provide customers with cutting-edge global technology, HMIL set up a modern multi-million dollar R&D facility in Hyderabad. The R&D centre endeavors to be a center of excellence in automobile engineering. Mission To create exceptional automotive value for our customers by harmoniously blending safety, quality and efficiency...
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...industry has emerged as a 'sunrise sector' in the Indian economy. India is emerging as one of the world's fastest growing passenger car markets and second largest two wheeler manufacturer. It is also home for the largest motor cycle manufacturer and fifth largest commercial vehicle manufacturer. India is emerging as an export hub for sports utility vehicles (SUVs). The global automobile majors are looking to leverage India's cost-competitive manufacturing practices and are assessing opportunities to export SUVs to Europe, South Africa and Southeast Asia. India can emerge as a supply hub to feed the world demand for SUVs. India also has the largest base to export compact cars to Europe. Moreover, hybrid and electronic vehicles are new developments on the automobile canvas and India is one of the key markets for them. Global and Indian manufacturers are focussing their efforts to develop innovative products, technologies and supply chains. The automotive plants of global automakers in India rank among the top across the world in terms of their productivity and quality. Top auto multinational companies (MNCs) like Hyundai, Toyota and Suzuki rank their Indian production facilities right on top of their global pecking order. MAJOR DEVELOPMENTS & INVESTMENTS * Yamaha Motor Co (YMC) has announced to set up its fifth global research and development (R&D) centre at its Greater Noida facility * Honda Cars India Ltd (HCIL) plans to invest Rs 2,500 crore (US$ 462.11 million)...
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...Renault’s Strategy in India Professor: E. Cornuel Students: Barbier Théodora Cheffert Pauline Jadoul Thibault Kerstenne Nola Munster Diana Nguyen Kathy Academic year 2014 -2015 What other cars to introduce? Lower end of the market? Regarding the highly saturated lower end of the market, the launching of an ultra-cheap car does not seem to be the best strategy. Indeed, Suzuki and Hyundai are already major players on this segment. Moreover, Tata Motors, a well-established Indian manufacturer, announced the cheapest car in the world. Upper end of the market? Again, the competition is already struggling on this segment: GM, Toyota, Ford and Honda are already well represented on this market 1 . Although it is becoming more and more attractive due to the higher number of rich Indians, it seems dangerous to try this market regarding the strong competition. Our recommendation is therefore to invest in the middle end of the market. The reasons are growth opportunities and non-saturation of this segment. First, adapting the car to the local needs of the market is a priority, especially for India2, where mastering the local culture is a requirement. The features of the car would be the following: 1. The length of the vehicle should not exceed 4 meters due to tax measures (24%)2; 2. The style should be sportive, regarding the disastrous state of Indian roads and the trend of SUV (Sport Utility Vehicle) in India3; 3. The price of the car should be competitive. First, SUV cars are only...
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...based on a combination of market growth and market share. Using Figure 1: The BSG Model, we will be able to identify General Motors recent performance in terms of market growth and market share, and determine which models should be held, built upon, harvested in the short-term, and divested. Figure 1: The BSG Model At the year-to-date mark of 2012, “General Motors holds an 18.1% share of the total automotive market, putting total cars at 7.6%, total light trucks at 10.5%” (Wall Street Journal, 2012). Figure 2: General Motors: BSG Model will display General Motors market growth and market share in terms of vehicle type. Figure 2: General Motors: BSG Model Stars (Hold) 1. Sports Cars and Convertibles – The Chevy Camaro and Corvette account for one out of every three sports cars sold in the United States in 2011. Chevrolet accounted for 37 percent of the sports-car segment last year with the Chevy Camero. Chevrolet accounted for 28 percent of the luxury-sports-car segment in 2011 with the Chevy Corvette. 2. Pick-up Trucks - Chevrolet Silverado: 28% market share 2011 growing pickup market. 3. Hybrid/Electrical Sedans – The Chevy Malibu and the Chevy Volt are among the leaders in the Hybrid and Electrical automobile industry (Hyrbidcars.com) Cash Cows (Harvest) 1. Four Door Sedans – General Motors holds 19.4% of the market share for four door sedans (Motor Trend, 2012). They can use this leading market share to competitive positioning...
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...the exclusive use of L. Jobard, 2015. IMB 443 SEEMA GUPTA VOLKSWAGEN IN INDIA In just 4 years since Volkswagen (VW) set up its India operations, it had captured a 3.6% market share – something the Detroit giants had not been able to do after more than a decade in the country (Exhibit 1). VW was the flagship brand of the Volkswagen group, which also owned Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, and Skoda. In India, the group was present with Skoda, Audi, and VW. 1 Maik Stephan, Managing Director, Volkswagen Group Sales India said: While three brands give us the collective power, we have to be careful to market them uniquely so that we are not chasing the same customer. i In 2011, the group’s worldwide revenues and net profit were Euro 159 billion and 15.8 billion, respectively. Headquartered in Wolfsburg, Germany, the group operated more than 60 plants around the world. It was the second largest automaker behind General Motors. It had a market share of 12.3% in 2011. Its core markets were Germany and China. It was the market leader in Europe with a 20% market share. It aimed to become the world’s largest automaker by 2018. With a growth of 30% in the Indian automobile industry, India was to play an important role in realizing the group’s global ambitions. ii VW targeted to increase the market share of its flagship brand in India from 3.6% to 5% by 2015. Neeraj Garg, Director, VW Group Sales India said: We have to transition from launch stage to growth stage of the life...
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...of SUVs The SUV (Sports Utility Vehicle) is one of the most popular types of vehicle to both own and drive. Last year, SUVs and minivans outsold conventional cars for the first time. During the 1990s, sport utility vehicles (SUVs) became the fastest growing segment of the auto industry. Generally larger and heavier than the typical automobile, SUVs require more fuel and produce greater amounts of toxins. Although buyers believe that SUVs are safer than automobiles, which they are in some cases, SUVs are more prone to roll-overs than are automobiles. With sales projected to grow to over 3 million units per year in 2001, SUVs show no sign of decreasing in popularity. However, the SUV is increasingly coming under attack for its fuel economy. The retail gas prices rose to just over $4 a gallon. Sales of large SUVs were affected more than any other vehicle, and their resale values dropped like a rock. In this paper I would like to talk about: why people want to buy SUVs? What impact does the lower fuel economy of SUVs have on the economy? What is the new fuel economy policy by the government? What impact does the safety record if SUVs have on the economy? Sport utility vehicle (SUV) is a vehicle similar to a station wagon or estate car. Early SUVs were used in military and commercial purposes, Jeep and Land Rover were used in the WW2. Chevrolet Carryall Suburban was the first SUV came out in 1935, but it’s only a RWD. SUVs became popular in the United States, Canada, India and...
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...Case 10 What were the factors that shaped Indra Nooyi as a leader? First of all, I think family background is a very big factor, from her stay-at-home mother as well as her grandfather, her mother taught her the knowledge of management, while her grandfather taught something not on the books. She is a hybrid leader, she has strong listening skills, a variation in styles, etc. In China, people pay attention to a person’s family background while dating or employing. We think, family background have a huge effect on a people and their future. Besides.her personality is important as well, she have a strong desire to learn, to study. What’s more, while facing with challenges, she will never give up. Though she is not an American citizen, she can adapt to American’s culture very quickly, which is the ability of flexibility and adaptability. She experience various cultures, which lead her to a very trans-cultural leader style. She has a clear vision about PepsiCo. “Performance with purpose.” What are the factors that could make Nooyi change her decision about corporate sustainability? I think if an event is immoral, Nooyi will change her decision about corporate sustainability. She likes challenges, if there are new competitors or changes in technology, these can change her decisions as well. Do you think Nooyi has a life outside of PepsiCo? Yes. Since she is a hybrid leader, one of the characteristic of a hybrid leader is emphasize work/life balance. She has...
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...SITUATION ANALYSIS: CURRENT MARKET POSITION: • BMW has achieved market leader position in the luxury car segment for 2 nd consecutive year. • 43% of market share in luxury car segment. • 73% growth over 2009. • Sales of 6426 units in 2010. Archrival Mercedes Benz sold 5819 units. • Presently employs 400 people. • Present in 20 locations across India. Launch Date: 23rd December 2010 Price: 22 Lakhs-32.5 Lakhs Models: X1 sDrive 1.8i X1 sDrive 2.0d X1 sDrive 2.0d Exclusive JOY IS WHAT YOU MAKE OF IT SITUATION ANALYSIS: COMPETITOR STUDY: SUV Engine Power Price (in Lakhs) BMW X1 (Petrol) 1.8 P 147.5 22 BMW X1 (Diesel) 2.0 D 174 23-32.5 Skoda Yeti 2.0 D 140 17 Ford Endeavour 3.0 D 153 19-20 Chevrolet Captiva 2.0 D 150 19 Toyota Fortuner 3.0 D 170 21 Hyundia Santa fe 2.2 D 197 21 Mitsubishi Outlander 2.4 P 168 22 Nissan X-trail 2.0 D 149 23 Honda CRV 2.4 P 151 24 SITUATION ANALYSIS: SWOT ANALYSIS: • Strengths: Brand Image; Quality; Captive finance solution; X1relatively affordable BMW; First crossover SUV. • Weaknesses: Dealer network; Service warranty. • Opportunities: Increase in millionaires; Cashing on diesel variants. • Threats: Competitors- Mercedes, Audi, VW, Toyota, Honda, etc. OBJECTIVES: • To achieve 10% market share in SUV segment by end of 2011. • Make X1 customer’s desired...
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...Ferrari SUV – Marketing Case Study Contents Management Summary ........................................................................................................................................... 3 Introduction & History of Ferrari Brand .................................................................................................................. 4 Products................................................................................................................................................................... 4 SUV – Understanding the Context........................................................................................................................... 5 SUV Ferrari SWOT Analysis ...................................................................................................................................... 8 Objectives ................................................................................................................................................................ 9 Market Strategy ..................................................................................................................................................... 10 Ferrari SUV Case Study August 22nd 2014 2 Ferrari SUV – Marketing Case Study Management Summary This study will try to explain why Ferrari motor company should to manage the hypothesis to start an R&D on a new car model in its lineup. In this case the study will focus on luxury SUV category...
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...Nano was launched in January 2008 at the Auto Expo New Delhi. ➢ In Geneva 2008, the Nano made its first overseas premiere. ➢ On March 23, 2009, Tata started production of the Nano from makeshift assembly line at Pantnagar and launched a car in three variants priced between Rs. 123,000 and Rs. 175,000 The Downfall Saga ➢ Tata witnessed a sequential fall in 2010, lowest in November Nano sales was 509 units ➢ Issues like production delays, multiple fire accidents, increasing prices of car, difficulty in getting loan from bank and the stigma attached to buying a cheap car was cited as cause for sales drop. ➢ A car in India was supposed to be a valuable product and Nano being termed as cheap car was not being accepted by middle class. What do they do ? They produce very low cost cars to the indian market. Making cars available to a costumer segment that could previously not afford cars. External Analysis Customer Analysis in the Budget Car Segment Customer Segment |Segment |User Intention | | | |Entry-Compact Car |Lower price, small |47% | Tata Nano, Maruti Alto, Ford | | |cars | |Figo, Maruti WagonR, Hyundai's | | | | |Santro, i10 and Eon and GM's Beat| |Premium-Compact Car |Higher priced, |11%...
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