View
55
Download
0
Category
Tags:
Preview:
DESCRIPTION
India’s Luxury Car Market ( The Competition Hots Up). Submitted to:- Submitted by:- Mrs Shailja Manocha Group No.:- 6. Case Overview. Luxury Car as defined in case is car priced above $ 40,000. In India, luxury car segment growing at 28% annually. Profile:- - PowerPoint PPT Presentation
Citation preview
India’s Luxury Car Market
(The Competition Hots Up)
Submitted to:- Submitted by:-Mrs Shailja Manocha Group No.:- 6
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.
Carmakers usually adopt Three Fold Strategy:-
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
directly.
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 C’s
o Companyo Customero competitor
COMPANYGeneral motorsBMWMercedesRolls-RoyceLamborghiniPorscheAudi
BentleyNissanVolvoToyotaVolkswagenSkodaMitsubishi
CUSTOMER
Establish Industrialist,rich Businessmen
Chief Executives of Companies.
Upper Class ( salary >100 lac p.a)
CUSTOMER PERCEIVED VALUE
Product value
Services value
Personnel value
Image value
Monetary cost
Time cost
Energy cost
Psychic cost
CORE COMPETENCY
AUDI - TECHNOLOGYBMW - TECHNOLOGYNISSAN- OPERATIONSPORSCHE- R & DMERCEDES - LUXURY AND
TECHNOLOGY
SEGMENTATIONGEOGRAPHIC Region
City
Whole India
Class I cities, Metro Cities
DEMOGRAPHICAge
Family Size
Gender
Income
Above 18 yrs of age
Anyone(single,married,with or without children)
Male or Female
High(above Rs.100 lakhs p.a)
Psychographic SegmentationGrouping people according to attitudes,
values, and lifestyles
Ostentatious and ambitious lifestyle
BEHAVIORALOccasionsBenefits
User statusUser rateLoyalty statusReadiness scaleAttitude toward
product
RegularLifestyleStatement,Royality,FeaturesFirst time,Ex-userMedium to HeavyMediumInformedEnthusiastic
TARGETINGUpper class (>100 lakhs p.a)
Informed people with rich taste (Ex. Industrialists and youths)
POSITIONING
Image positioning
THE PRODUCT HIERARCHYNeed familyProduct classProduct lineProduct typeItem
TranspotAutomobileFour wheelerLuxury carsBMW,Mercedes,volv
o,Porsche etc
THE PRODUCT HEIRARCHYTRANSPORT Train
AeroplaneAutomobile
Two wheelerThree wheelerFour wheelerHeavy vehicles
Small
Medium sizedLuxury
VOLVO
FERRARIMERCEDES
ROLLS-ROYCE
VOLKSWAGEN
(Need family) (product family) (product line)
(product type)(Item or brand)
(product class)
FIVE PRODUCT LEVELCORE BENEFIT: TransportationBASIC PRODUCT: EngineEXPECTED PRODUCT: Comfort,LuxuryAUGMENTED PRODUCT: Advanced
security systemsPOTENTIAL PRODUCT: luxury with
high performance(average per litre)
PRICING STRATEGYLUXURY 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 CHANNELFranchiseeDistributorDealer
CHANNEL LEVELS Zero level
ManufacturerCustomer
I level Manufacturer Dealer
Customer
General motorsGM 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.
ENVIRONMENTCar Industry and CAR
Market Early 1990‘s Recession
Late 1990‘s 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
STRENGTHSTECHNOLOGY POTENTIAL
QUALITY IMPROVEMENT
MODEL ACCEPTANCE HAS IMPROVED
G. M. SWOT ANALYSISWEAKNESSES
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 ANALYSISINDUSTRY ANALYSIS
MEGADEALERS AND AUTO SUPERMARKETS
WORLDWIDE DEMAND - STAGNATION - DECLINE
MUST BE WORLD CLASS IN EVERY RESPECT - PRODUCT, MFG. OPERATIONS, FINANCING, AND DISTRIBUTION
THANK
YOU
Recommended