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HYBRID CAR IN LATIN AMERICA
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Group No. 13
HYBRID CARHIGHFLIERTHE FUTURE IS IN YOUR HANDS
Our Brand
• VISION“To become the most respected and admired car company.”
• MISSION“Touch the hearts of our customers by providing Innovative products and services of superior quality at a competitive price.”
• CORPORATE OBJECTIVE“To become the Market leader in hybrid car category”
• MARKETING OBJECTIVETo become the market leader in hybrid car category in Brazil, Argentina and Colombia by acquiring 70%, 75% and 80% market share respectively by the year 2020
DESIGN OF ‘HIGHFLIER’
Our Hybrid Car.
CAR NAME- “HIGHFLIER” CAR VARIANTS:
a. ‘Hybrid model’b. ‘Hybrid with Leather and Satellite Navigation’
Pros of an hybrid car• Environm
ent• Tax
Breaks• Fuel
Saver
Cons of an hybrid
car• Cost• Batteries
The Marketing Mix.
THE PRODUCT:
a. ‘Hybrid model’B. ‘Hybrid with Leather and Satellite Navigation’
The 2nd variant will have extra features given below:-
• Satellite-Linked Navigation System with Voice Recognition, FM Traffic and Multi-Angle Rearview Camera with Guidelines• Leather-Wrapped Steering Wheel• Illuminated Steering Wheel-Mounted Cruise, Audio, Phone and
Navigation Controls• Leather-Trimmed Interior• Heated Front Seats• Body-Colored, Side Mirrors with Integrated Turn Indicators
ENGINE SPECIFICATIONS Hybrid Hybrid with Leather
Engine Type In-Line 4-Cylinder In-Line 4-Cylinder
Engine Block/Cylinder Head
Aluminum-Alloy Aluminum-Alloy
Displacement (cc) 1497 1497
Horsepower @ rpm (Combined: engine (SAE net) + electric motor)
110 @ 5500 110 @ 5500
Torque (lb-ft @ rpm, combined engine (SAE net) + electric motor)
127 @ 1000-3500 127 @ 1000-3500
Redline (rpm) 6000 6000
Bore and Stroke (mm) 73 x 89.4 73 x 89.4
Compression Ratio 10.8:1 10.8:1
Valve Train 8-Valve SOHC i-HTEC® 8-Valve SOHC i-HTEC®
Multi-Point Fuel Injection Standard Standard
Drive-by-Wire Throttle System
Standard Standard
Front-Wheel Drive Standard Standard
Eco Assist™ System Standard Standard
CARB Emissions Rating[1]
ULEV-2/AT-PZEV ULEV-2/AT-PZEV
Direct Ignition System with Immobilizer
Standard Standard
100K +/- Miles No Scheduled Tune-Ups[2]
Standard Standard
Battery Hybrid Hybrid with Leather
Lithium-Ion (Li-Ion) Battery
Standard Standard
Output (kW) 20 20
Voltage 144 144
Volume (Liters) 16 16
Weight (lbs) 48.5 48.5
Electric MotorPermanent Magnet Motor Standard Standard
Horsepower @ rpm 23 @ 1546-3000 23 @ 1546-3000
Torque (lb-ft @ rpm 78 @ 500-1546 78 @ 500-1546
Voltage Range 108V - 172V 108V - 172V
Motor Weight (lbs) 42.5 42.5
The Marketing Mix (contd.)
THE PLACE:
Brazil
Argentina
Colombia
The Marketing Mix (contd.)
THE PRICE:
Hybrid model’- $28000
‘Hybrid with Leather and Satellite Navigation’- $31000
• OOH • Print• Radio• Television
ABOVE THE LINE
(80%)• Digital• Sales Person
BELOW THE LINE
(20%)
The Marketing Mix (contd.)
PROMOTION
Brazil
• Brazil is the world's fourth largest car market and the seventh biggest car manufacturer.• It is South America’s largest consumer market, a still-bustling economy–and a lot of potential customers.• As early as 2015 Brazil could overtake Japan to become the world’s third-largest car market after China and the U.S.• In 2011 car production was 3,406,150 and in 2013 the country is expected to mark its seventh straight annual sales record, with close to 4 million vehicles sold
• Population: 174,468,575
• Language(s):Portuguese (official), Spanish, English, French
• Literacy rate:83.3%
• Area:8,511,965 sq km
• GDP: 595,458 (US$ millions)
• Number of Daily Newspapers:465
• Number of Television Sets:36,500,000
• Number of Radio Stations:1822
• Internet Access per 1,000:28.7
Pros• Brazil's electric vehicle
(EV) market is set to grow substantially owing to supportive legislations, anticipated tax incentives for EVs, and enhancements in charging infrastructure.
• Inovar-Auto program will provide incentives for EV manufacturers and end users, thereby encouraging adoption
• Rising fuel costs
Cons• The continued
preference for flex-fuel over hybrid electric technology is a restraint.
• The lack of localized battery technology and the high initial costs of acquisition
Argentina
• Automotive industry is a key contributor to manufacturing production and exports• Vehicle production has more than tripled since 2002 and strong growth is expected• Automotive companies currently operating have increased their production levels to meet the rising local and external demand• According to Argentine Association of Automobile Manufacturers (ADEFA), the sustained growth trend in the sector will keep up in the foreseeable future
• Population:37,384,816
• Language(s):Spanish (official), English, Italian, Germany, French
• Literacy rate:96.2%
• Area:2,766,890 sq km
• GDP:284,960 (US$ millions)
• Number of Daily Newspapers:106
• Total Circulation:1,500,000
Pros• Argentina is a market
with high potential given its income per capita and its geographical size
• Demand for low- and medium-priced cars is the largest
• Strong regional integration in automotive supply
• Balanced trade with Brazil allows some flexibility
Cons• Strong trade deficit in
the auto parts trade sector
• Low financing ratios
• Motorisation has increased, but the vehicle fleet is still relatively old
Colombia
• Official languages: Spanish
• Population : 47,072,915
• GDP :$502.874 billion
• Per capita : $10,791
• Literacy: 92.3% of the population aged 15 and older were recorded as literate
Pros• Short term & medium term
growth due to:• Strong external demand
for local commodities, from the Asian countries
• Good macroeconomic management.
• Strong foreign exchange reserve
• Good business environment
• Highly educated leading to skilled labour pool.
• Young population.
Cons• Despite the sustained
efforts of the government to improve social pacification and eradicate organized crime,
• Security concerns are very high dragging down its competitive potential.
• Inefficient regulation which fails to foster domestic competition.
• Poor Infrastructure.• Inefficient allocation of
resources.• Colombia is rich in natural
resources, and its main exports include petroleum
Major Competitors in LatAm
•Amsia Motors•Fiat •Renault •General Motors •Ford •Mercedes •Honda •Mitsubishi•Chevrolet
Nissan
Toyota
Kia
Nissan
Suzuki
Volkswagen
Peugeot
Citroën
Chevrolet
Strengths Competency AnalysisStrengths
• Environment conscious and provides reduced carbon emission
• Elegant interiors and revolutionarily designed exteriors
• Exceptional fuel efficiency• Smooth performance• Fuel efficiency & low exhaust
emissions.
Weakness• Huge investment in expensive
fixed costs.• High costs of training and
retaining labour.• High Advertisement &
Promotion costs.• Fluctuating economic and
political conditions
Opportunities• Increasing fuel prices.• Changing customer needs.• Acquiring collaborations with
automobile business entities.• Augment distribution and
servicing network.• Low competition in Hybrid Cars.
Threats• Product recall.• Rising raw material prices.• Intense competition offering
innovative features at lower price.
• Higher maintenance costs may defer the customer
• New entrants
SWOT ANALYSIS
(Our Company)
Porter’s 5 Forces Model
1. Threat of New Entrants: Low High capital High R&D cost Mass production to make cars affordable
2. Bargaining Power of Suppliers: Low Many parts needed so many suppliers
3. Bargaining Power of Buyers: High Limited number of players in the market
4. Threat of substitutes: High Substitutes are petrol or diesel
cars, solar cars or electric cars.
5. Competitive rivalry within the industry: Low Limited number of players High product differentiation
Industrial
Rivalry
Threat of new
entrants
Bargaining power
of suppliers
Threat of
substitutes
Bargaining
power of consume
rs
Entering Through : Joint Venture with Fiat In all three Countries
Why the decision : •Cost Reduction•Enhanced Skills•Less Risky•No need to build up an international infrastructure.
Entering LatAm
The Proposition
EMOTIONAL BENEFIT
FUNCTIONAL BENEFIT
ECONOMIC BENEFIT
People will have a feeling of contributing towards combating global warming by reducing carbon emission
Driving on electricity is cheaper then driving on fuel
DSTP ANALYSIS
DIFFERENTIATION:The eco-friendly cars for customers that are interested in saving the environment in style.
SEGMENTATION &
TARGETING:
Industrial Residential
Low Income
Middle level
Income
22-30 31-41
6.5k-10K Dollars
13K-16K Dollars
16K + Dollars
42-52
Elite
The Positioning Appeal
• An environment friendly car with state of the art features and comfort with enhanced safety• Large size and higher powerBatteries are
rechargeable.
Our earth is not.
Go Hybrid.It’s Lighter
on your pocket too.
• Value for Money-The Smart Buy • The Status• A feeling of Pride
Psychological appeal
The Big Idea• Brand Ambassadors
• Football Ground & Jerseys• Tournaments like La Liga and Copa America• Best player• Corporates & Hotels
Ronaldo Maradona
Promotions:• Showrooms• Brochures & interactive multimedia "eBrochures”• Demo cars• Facebook page• Web page showing demo of the car and explaining what the
car actually is.• Hoardings
Launch During Football Leagues
1 month plan:• TVC- 4 weeks• Print- 4 weeks• OOH- 4 weeks • BTL- select days• PR- 4 weeks + 4 weeks (Conferences)
Media Plan
THANK YOU!