...and heavy capital investments (Hitt, Ireland, and Hoskisson, 2013). When the economy takes a downturn the high cost of capital can have a negative impact on Porsche’s ability to acquire funds it needs to innovate and stay at the top of the industry in technology. The brand is exclusive with only a few diverse product offerings to a wealthier clientele. Though Porsche was an independent care maker for over 100 years, when the financial crisis hit a lack of capital led to Porsche being taking over and becoming a part of the Volkswagen platform (Hitt, Ireland, and Hoskisson, 2013). Though the VW platform gives Porsche a broad range of resources for both companies many may see it as a possibility of diluting the brand by expanding into sedan and SUV models. Porsche is seen as high quality sports car in a very niche market. The Volkswagen group is pushing higher sales volume, but the question comes at what risk is this to Porsche’s differentiated product offering quality. Porsche’s parent may be too concerned with volume that the Porsche brand would lose exclusivity, becoming mainstream as it has in London, and possible quality problems in the future (Hetzner, 2014). As Porsche needs to...
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...push the car through the air. This results in better fuel consumption. There are several ways to improve the quality of the vehicle shape to reduce drag. Rounded designs and shapes on the exterior of the vehicle as well as components on the underside of the body channel the air to flow with the least possible resistance. Our purpose during this experiment was to evaluate and compare the effect of vehicle shape on the fuel efficiency. METHOD: This experiment was performed using three different car models of variable shape and size that are present in today’s industry; an SUV, a sedan and a sports car were used. Each vehicle was placed individually inside the wind tunnel and the drag force was measured at 5 different wind speeds for each respective vehicle. Measurements were also performed in increasing and decreasing order for each vehicle for a total of 10 measurements per vehicle. RESULTS: The SUV was observed to have the largest drag force over the variable wind speeds, while the Sports car was observed to have the smallest drag force compared to the other two vehicles. A linear relationship between the drag force and the wind speed is observed for the 3 different vehicles. CONCLUSION: Our data indicates that larger vehicles with sharp angles and less channeling of air produce the highest drag force, and result in more fuel consumption as more power is needed to overcome the drag. II. Introduction Air resistance (Drag) affects vehicle acceleration...
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...Sport utility vehicles have come a long way since the clunky box that had little control on the highway. SUV’s used to be built on truck platforms, which gave them a heavier feel and bulkier ride. Now built on a car platform (http://www.edmunds.com/suv/before-buy.html), these crossover vehicles can be competitively compared to a standard sedan. The Chevy Equinox is a car-based SUV that has the same attributes as the mid-size passenger car, the Chevrolet Malibu, such as easier handling and a quieter, more enjoyable ride. The Malibu has been redesigned to be as comfortable as a luxury vehicle with a better performance than other vehicles in its class. The Chevrolet Equinox might boast a roomier interior like most crossovers, but the Chevrolet Malibu is a better value, not only because of price but also gas mileage, safety and interior space. While the price of an SUV used to be significantly higher than a mid-size sedan, with the invention of the smaller, car-based models, prices are now comparable. The Malibu starts at $21,995 and goes up to $29,700. (http://autos.aol.com/cars-Chevrolet-Malibu-2013/safety-features/) The Equinox starts at $24,155 and, depending on the features, can max out at $32,665. (http://usnews.rankingsandreviews.com/cars-trucks/Chevrolet_Equinox/) Projected resale value for a standard model Malibu priced at $23,150 after one year is 68% or $15,742. After five years, it drops to 36% or $8,334. (http://www.kbb.com/chevrolet/malibu/2013-chevrolet-malibu/ls/...
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...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 the past. This is the result of growing disposable income. For an average Indian family, a compact SUV makes sense because...
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...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. Different Launch Strategy • A relentless pre-launch communication strategy • Three weeks prior to the launch of the vehicle a commercial men weeping and a statement “our apologies to those who brought a sedan” • The campaign was also extended to digital platform to reach the right audience for the car • It created a lot of buzz among the Indian consumers for the...
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...IIM-C SMP09 Marketing Nuggets Project – SUV Market in India Success of Mahindra XUV 500 By: Amit Ahi Samir Chitkara Dr. Bhaskar Sonowal Anirban Sarkar Amit Dass J.Mohapatra Dwarka Nath Sharma Table of Contents Current market Size & key market trends 5 India’s Socio demographic profile 5 Indian Automobile Market 6 Size of Indian Automobile market 7 Key Market Trends for SUVs / Automobiles 8 Key market trends of SUVs 10 Segmentation of the market 11 Price Based Segmentation 11 Entry Level 11 Mid Segment 11 Premium Segment 11 Luxury 11 Price Wise Segmentation for Indian SUVs 12 Usage Based Segmentation 13 Off Roading: 13 Soft Roading: 13 Consumer Behavior noticed in Buying SUVs 13 Psychological factors 13 Personal Factors 14 Social Factors 14 Positioning of different brands in SUV market in India 15 Entry Level SUVs: 15 Renault Duster 15 Mahindra Scorpio 15 Tata Safari 16 Mid Segment: 16 Tata Aria 16 Force One 17 MAHINDRA XUV 500 18 Skoda Yeti 18 Ford Endevour 19 CHEVROLET Captiva 19 HONDA CRV 19 TOYOTA Fortuner 20 Key Advertising and Promotion campaigns adopted by leading brands 21 Mahindra XUV 500 21 Digital Marketing – FAce Book & Twitter 21 Launch Campaign 21 Force One 21 Big B as the Brand Ambassador 21 Toyota FORTUNER 23 Campaign Tag: “The Art of Power” 23 Toyota Fortuner Marketing Campaign: Experience the Power of Art on your Mobile 23 Results and achievements...
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...Gas vs Hybrid Ruvim korchuk Did you ever see a hybrid vehicle driving around? Amongst the sea of gasoline-powered vehicles, the hybrid cars stand out. For one, they don’t have an exhaust pipe that can be modified to be louder because they have certain specifications to run by. The physical characteristics of the hybrid car are not the only differences between the two types of vehicles. There are many differences between the two vehicles. Here are just two differences that impact the decision people make in purchasing a gasoline or hybrid vehicle: Maintenance, Environmental Factors, and Cost. First of all, maintenance is a big factor in purchasing a car because it is linked with time and resources. Hybrid vehicles run on huge batteries. Yes batteries are expensive, but don’t they outlast the gas lanterns on camping trips? Electric vehicles have less maintenance to do. Instead of maintaining a gasoline engine four times a year, a hybrid vehicle needs maintenance only once a year. If a person had a 10 year plan for his hybrid and gasoline vehicle, he would have to maintain his gasoline vehicle 40,000 times, while the hybrid needs only 12,000. That is 38,000 less oil changes! Now think about how much money you will save not only on money, but engine/transmission oil, and filters. Hybrid vehicle components require less maintenance because the technology for hybrid cars surpasses gasoline vehicles. Gasoline vehicles require more maintenance because they have fewer parts that...
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...Chery Auto's Success Story (BSTR 377) ------------------------------------------------- Abstract: China based Chery Automobile is one of the top ten car manufacturers and the leading exporter of cars in the country. Started as an automotive company by the Wuhu government in 1997, Chery designed engines for cars. After finding no buyers for its engines, it decided to build its own car. Chery entered into tie-up with another automotive company which had license to sell cars to retail customers in China. After obtaining its own license, Chery implemented a four-phase strategy to develop its technical strengths. Chery started exporting cars as early as 2001 and became the largest exporter of cars among the Chinese car companies. Chery expanded globally to have its presence in over 70 countries by 2009. | | ------------------------------------------------- Issues: » Study and analyze the competitive strategies of Chinese automobile companies. » Understand how Chery Auto used available resources effectively to manufacture cars. » Examine how a startup company could develop R&D capabilities by collaborating with other firms. » Study the globalization strategies of Chery Auto. » Evaluate the challenges faced by Chery Auto in the near future. ------------------------------------------------- Contents: | Page No. | Introduction | 1 | Background Note | 2 | The Growth Strategy | 3 | Going Global | 5 | The Challenges | 7 | The Road Ahead | 9 | ...
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...Emerging markets Recent history The four BRICs The BRIC’s roller coaster. 2009 Sales dropped in 50%, stabilize in 2010 Annual growth of 15% per year through 2014 Russia China The largest one. Share in 53% in 2008 Share is expected to be 61% in 2014 Brazil The most mature and stable market. Probably remain the second largest to 2014 Outpace both Brazil and China in growth India Summary • • • • • • The 4 BRICs are different There is no standard BRIC car Brazilian favor sporty hatchback Russians – western sedans and SUV Indian seeks ultra-low-cost minicars China – affordable luxury style sedans Brazil • The largest South America’s largest economy • Population close to 200 mln • GDP per capita of US$ 10 300 • The rapid growth of China’s economy has dramatically increased export demand for Brazil’s raw materials Brazil, history • • • • 10 years ago was a less confident place Economic crisis, history of inflation Political disarray with deep structural problems Seemed destined to remain a country with a great unrealized potential Brazil now • Quiet optimism that the country has been set on a more stable path • Still high level of poverty and corruption • But a sense of underlying progress with evidence in official statistics • Incomes are up • The gap between Brazil’s rich and poor has closed a little Brazil now • Locals treat the improvements due to just departing president Luiz Iinacio Lula da Silva (ince 2002) • The country...
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...IM MAPPING CONSUMER DIGITAL JOURNEY Name of Student Course title Date of Submission Introduction Mercedes Benz is a subsidiary company that manufactures automobiles with its headquarters based in Germany. Its main manufacturer is the Daimler AG located in Germany while other sales/assemblage divisions are in various parts of the world. The firm manufactures vehicles that go by the same name, “Mercedes-Benz.” They are mainly luxury vehicles and they include: “Sedans, Coupes, SUVs & Wagons, Convertibles & Roadsters, Hybrid & Electric cars, trucks, coaches and buses”[1]. Mercedes-Benz has a strong presence in the motor industry based on its diversity of production. Its vehicles have state-of-the-art luxury gear with impeccable customer service. The targeted customer base for this brand includes the middle and the high class due to the vehicles’ luxurious nature. 1. Purchase Process: The following are the steps for purchasing a new Mercedes Benz type of vehicle a. Research on model Mercedes-Benz always encourages its customers to research about the car models before they make the purchase. This can be done in person, by visiting the car outlets or doing it online. In order to purchase a Mercedes-Benz car model, a customer is required to select the model of choice from a preferred dealer-outlet after agreeing on the qualities. Dealers are found in various collision centers that are certified by the brand. Alternatively...
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...com/research/mahe1310/36352.phtml When it comes to car body style, what do you prefer Hatchback or a Sedan? Choosing the type of car body style can make a big difference on road. While Sedan looks luxurious, Hatchback is generally preferred by the economy class people. Sedan has size while hatchbacks are small. Those who go for looks, style, and luxury would certainly go for sedan but hatchback may have its own benefits. Here are some reasons why prefer hatchback over sedan car. Hatchback cars are more fuel efficient than sedan cars. In other words the fuel average of hatchback car is greater than the sedan cars. Parking charges at some places (not all) are higher for sedan and lower for hatchback cars. Hatchback cars find it easier to accommodate in the parking space and are easier to maneuver than sedan cars. It is easier to maneuver hatchback cars in traffic than the sedan cars. Remember the Nissan Micra advertisement where Ranbir Kapoor says the same thing. May be hatchback cars may help reduce traffic in the coming future. Sedan car looks bigger and more authoritative when on road then the hatchback car but this doesn’t mean that the car has enough space inside for the passengers. You may find it difficult to accommodate you body for long journeys in some of the sedan cars while some hatchback cars offer great room for legs for example Tata Indica. Hatchback or Sedan – the debate is full of extremists, who claim the other side to be completely out of the...
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...The Car Buying Market Today To gain some perspective on the overall car market in the US, each year, approximately 213 million cars drive the streets of America. As for vehicles that are purchased annually, here are some interesting observations: * Of all the vehicles purchased in the USA each year, 16 million are new and 41 million are used. * Of all the used vehicles purchased by consumers: one-third are from private parties one-third are from franchised dealerships one-third are from independent dealers * 17 million used vehicles are sold to auctions each year. How to buy a car Don't head to the car dealership empty handed. If you want to make the dreaded process of buying a car a little easier, make sure you have your papers in order. An unsuspecting victim is in the market for a new car complete with sweaty palms and racing pulse. He has no plan of attack, and the car dealer's approach is as calculated as a lion stalking its prey. He sizes up the shopper and finds the jugular. Then ... he pounces. Finance rates go flying, down payments make the victim's head spin, he barely remains conscious as the salesman rips into his prey with option packages. Buy now, pay later, cash for your trade-in, no credit-no problem -- how many ploys can these blood-thirsty savages use to bring their victim to their knees? But you can arm yourself and be prepared for your showdown in order to make the confrontation as quick and painless as possible. You've just got to get your paperwork...
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...Suzuki Samarai – Summary and Notes HBR Background: * Suzuki was founded in the early 1900’s an d started off as a motorcycle company. In the 50’s, lightweight vehicles became popular. Motorcycle products grew and expanded products to include a lightweight vans and cars. Until 1979, cars and trucks were only sold in Japan. In 1979, auto’s were introduced into foreign markets and by 1984, Suzuki cars were available in over 100 countries and Hawaii. In 1983, GM purchased 5% of Suzuki and helped develop subcompact car for US market (Chevy Sprint) – sold exclusively by Chevrolet dealerships American Suzuki Motor Corporation (ASMC) * GM’s success with the Sprint showed Suzuki that a market existed for its cars. Suzuki decided to establish its own presence in US market (not including GM) – and could begin selling under their own name. To test the waters, ASMC started with a beta product in FL called the SJ413 that had 1324 cc engine and was designed with US market in mind. In 1985, Suzuki hired Douglas Mazza to head ASMC and develop a Suzuki dealer network to sell SJ413 within 6 months. They named SJ413 the Suzuki Samurai and decided to market a convertible and hard top version. Samurai Dealer Network * Mazza’s goal was to establish Suzuki as a major car company in US – and had to convince prospective dealers to build separate showrooms for samurai to ensure product visibility. Facility had to include a showroom, sales offices, customer waiting and accessory...
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...SUVs, the Environment, Safety, and Stakeholders The Evolution and Devolution of the SUV Market In 1990, the SUV/Light truck market consisted of approximately 4 million units sold out of 14 million total vehicle sales in the United States. By 1999, the percentage of the total market had increased and total sales were higher. SUVs/light truck sales were 8.2 million of 16.4 million units sold.21 47.6 percent of Ford Motor Company's sales are of SUVs, primarily its Ford Explorer and larger Expedition, but also of its even larger Excursion. These vehicles took the place of the truck-like Bronco and smaller Bronco II. The largest players in the SUV market (with the number of units sold in 2000) are as follows: 22 [pic] In 1997, most auto manufacturers expanded their SUV offerings and entered the luxury SUV market. These SUVs, with prices around $50,000, featured in-vehicle televisions and VCRs, leather interiors, and all the amenities of luxury cars. The new market entrants are listed below: [pic] By 2000, the U.S. segment of the luxury SUV market was 80.5 percent.23 At that time, SUV purchases constituted one of every five auto sales in the United States and were the highest-margin products in all the automakers' lineups .24 Profits per SUV averaged $ 10,000 per unit. Profits on the Ford Excursion were at the top of the field at $18,000 per unit. At that time, SUVs comprised 20 percent of all of Ford's vehicle sales and accounted for the majority of Ford's...
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...The changes at Ford initiated by CEO Mulally, a former aerospace guy, have meant the difference between death for the automaker and merely being sick Almost 30 months after Alan R. Mulally left Boeing (BA) to become chief executive of Ford Motor (F), it's still easy to peg him as an industry outsider. Talking to Wall Street analysts in November, Mulally described the debut of the tiny, fuel-sipping Ford Ka at the "Paris Air Show" when he meant the "Paris Motor Show." Earlier this year, Mulally showed how he'd tried to stop appending an airplane doodle to his signature, but struggled to ink a car instead. "Rats. I still haven't got the car down," he said, in the "aw shucks" Kansas delivery that has become as familiar in Detroit as his off-the-rack blazers and shirts. Outsider CEOs have a decidedly varied track record. Some bring in their own people and impose a jarring management philosophy on a corporate culture, as Robert Nardelli did at Home Depot with such mixed results that the board pushed him out. Some are unsuited to running an unfamiliar business. Former S.C. Johnson CEO William Perez's 13-month stint at Nike (NKE) comes to mind. Others tread more softly and succeed, like Eric Schmidt, the former Novell (NOVL) guy who runs Google (GOOG). Mulally arguably falls into the latter category. Since arriving he has left most of the team he inherited in place and quieted talk that an aerospace guy couldn't run an automaker. Of course, Ford remains a very sick company. It lost...
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