PRESENTATION ON - Weebly

PRESENTATION ON - Weebly

Indias Luxury Car Market (The Competition Hots Up) Submitted to:by:Mrs Shailja Manocha Submitted Group Case Overview Luxury Car as defined in case is car priced above $ 40,000.

In India, luxury car segment growing at 28% annually. Profile:Earlier cars were considered a luxury only meant for Maharajahs (kings) and a few Wealthy traders. (cars were customized to please rich clients). Two wheelers were more popular in the markets primarly due to lower income levels and poor road conditions . Indian Luxury Car Market Between 1950 & 1990 way to import

cars was EOUs( Export Oriented Units) with huge turnover. With liberlization , policies changed and so did consumer behavior.For many Indians car has beome more a lifestyle statement than a status symbol. Fuel efficiency and price tags were no longer the main deciding factors for the buyer. Design and appeal in addition to a brand are the strongest drivers in the luxury segment.

Cars imported as CBUs against bookings only. a) First create brand awareness about the product through exhibitions and advertisements. b) Established infrastructure with experienced dealer networks to further enhance their presence . c) Finally introduced the product line for the market. Themes adpoted by various companies to target the customer :Hyundai :- Royalty . Honda:- Intrinsic Value and Past performance.

Daimler:- Comfort and Class . Second importance was given to the choice and location of dealers.:-Showrooms in metros to serve the customer Competition Hots Up With the launch of more than 20 luxury models , the competition has become more intense but there are few challenges too for premium carmakers in India. - High Customs Duty ranging from 98% to 100% nearly doubles the price of the vehicle. -Waiting Period ( 2 to 7 months).

- Pot holes , traffic jammed roads of India. But still favorable economic policies and vast population are encouraging the automakers to have a foothold in India. 3 Cs o Company o Customer o competitor COMPANY

General motors BMW Mercedes Rolls-Royce Lamborghini Porsche Audi Bentley Nissan Volvo

Toyota Volkswagen Skoda Mitsubishi CUSTOMER Establish Industrialist,rich Businessmen Chief Executives of Companies. Upper Class ( salary >100 lac p.a)

CUSTOMER PERCEIVED VALUE Product value Monetary cost Services value Time cost

Personnel value Energy cost Image value Psychic cost CORE COMPETENCY AUDI - TECHNOLOGY BMW - TECHNOLOGY

NISSAN- OPERATIONS PORSCHE- R & D MERCEDES - LUXURY AND TECHNOLOGY SEGMENTATION GEOGRAPHIC Region Whole India

City Class I cities, Metro Cities DEMOGRAPHIC Age Above 18 yrs of age Family Size

Anyone(single,married, with or without children) Gender Male or Female Income High(above Rs.100

lakhs p.a) Psychographic Segmentation Grouping people according to attitudes, values, and lifestyles Ostentatious and ambitious lifestyle BEHAVIORAL

Occasions Benefits User status User rate Loyalty status Readiness scale Attitude toward product Regular

Lifestyle Statement,Royality, Features First time,Ex-user Medium to Heavy Medium Informed Enthusiastic TARGETING Upper class (>100 lakhs p.a)

Informed people with rich taste (Ex. Industrialists and youths) POSITIONING Image positioning THE PRODUCT HIERARCHY Need family Product class

Product line Product type Item Transpot Automobile Four wheeler Luxury cars BMW,Mercedes,volv o, Porsche etc

THE PRODUCT HEIRARCHY TRANSPORT Train Aeroplane Automobile (product class) (Need family)

(product family) Two wheeler Three wheeler Four wheeler Heavy vehicles (product line) Small VOLVO FERRARI

Medium sized Luxury MERCEDES ROLLS-ROYCE VOLKSWAGEN (Item or brand) (product type)

FIVE PRODUCT LEVEL CORE BENEFIT: Transportation BASIC PRODUCT: Engine EXPECTED PRODUCT: Comfort,Luxury AUGMENTED PRODUCT: Advanced security systems POTENTIAL PRODUCT: luxury with high performance(average per litre) PRICING STRATEGY LUXURY CARS COMPANIES FOLLOW

PREMIUM PRICING STRATEGY AS THEY OFFER LUXURY AND COMFORT (VALUE) TO THE CUSTOMER AND CUSTOMER IS TODAY WILLING TO PAY FOR LUXURY. PRODUCT-MIX PRICING OPTIONAL FEATURE PRICING

MANY COMPANIES OFFER OPTIONAL PRODUCTS,FEATURES AND SERVICES ALONG WITH THEIR MAIN PRODUCT. Ex. GPS System,sunroof and theft control CONSUMER GOODS CLASSIFICATION Speciality goods: Because speciality goods have unique characteristics or brand

identification for which consumers are willing to make a special purchasing effort.Luxury cars are speciality goods as interested buyer will travel far to buy one. CONSUMER BUYING BEHAVIOUR COMPLEX BUYING BEHAVIOR: AS THE LEVEL OF INVOLVEMENT IS

VERY HIGH LEARN FEEL DO PROMOTION ADVERTISEMENTS IN Print media Magazines

News papers Rational appeal Direct Marketing Motion Pictures CHANNEL DESIGN STRATEGY PULL STRATEGY : As automobile(luxury cars) companies invests money in creating a Brand.

DISTRIBUTION CHANNEL Franchisee Distributor Dealer CHANNEL LEVELS Zero level Manufacturer Customer

I level Manufacturer Customer Dealer General motors GM cars and trucks were produced globally under the following 12 brands: Buick,

Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn and Vauxhall. ENVIRONMENT Car Industry and CAR Market Early 1990s

Recession Late 1990s Depreciation of Asian currencies GDP growth fell U.S. and East Asian markets slowed European car sales held up

Luxury segment Up-scale market Main competitors: BMW,GM, Ford, Toyota, Chrysler, Mercedes, Volvo, Saab, Audi Most companies operate with different brands

G. M. SWOT ANALYSIS STRENGTHS TECHNOLOGY POTENTIAL QUALITY IMPROVEMENT MODEL ACCEPTANCE HAS IMPROVED G. M. SWOT ANALYSIS WEAKNESSES Waiting period Too Much Vertical Integration

G. M. SWOT ANALYSIS OPPORTUNITIES FAVOURABLE ECONOMIC POLICIES. RISE IN LIVING STANDARD. INCREASE IN CUSTOMER CONFIDENCE. CHANGING CONSUMER DEMAND FOR NEW MODEL TYPES AND STYLES - EXPANSION. G. M. SWOT ANALYSIS THREATS FOREIGN COMPETITION

HIGH TAXES FOR CBUs INDIAN LEGISLATION AND REGULATION POOR QUALITY OF THE INFASTRUCTURE IN THIS COUNTRY G. M. SWOT ANALYSIS INDUSTRY ANALYSIS MEGADEALERS AND AUTO SUPERMARKETS WORLDWIDE DEMAND - STAGNATION - DECLINE MUST BE WORLD CLASS IN EVERY RESPECT PRODUCT, MFG. OPERATIONS, FINANCING, AND DISTRIBUTION

THANK YOU

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