Dissertation Scope of Luxury Car Brand in India2

5/26/2018 Dissertation Scope of Luxury Car Brand in India2

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G. L.G. L. Bajaj Institute ofTechnology And Managementnd Management

A DISSERTATIO !RO"E#T RE!ORT

O

S#O!E O$ L%&%R' #ARS I IDIA

Submitted to

UTTAR PARDESH TECHNICAL UNIVERSITY

For the partial fulfillmet of the a!ard of "a#ter# i $u#ie##

Admii#tratio De%ree

Under the Guidance of: Submitted By:

ABHISHEK SAXENA DEEPAK SINGH

Assistant Professor BA !I" sem#

BA De$artment %#No# &'(')*&&(+

G#,#B#I#-##

Greater Noida .U#P#/

Date of Submission: 0th A$ri12 )&((#


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G#,#BA3A3 INS-I-U-E 45 -E6HN4,4G7 8 ANAGEEN-

Approved by A.I.C.T.E. & Affiliated to U.P. Technical University. An Institution of R.K. Group

Ref. o.! "ated!

CERTIFICATE

This is to certify that ____________________, a bonafide

student of this institute (Batch - 2009-11), has undertaken

this project work entited

___________________________________________

Under my supervision and guidance for the partial fulfillment

of the award of

Maste( of Business Administ(ationdeg(ee

from %.!. Technical%ni)e(sity* Luc+no,.

As per best of my knowledge this Research proect work is

an original piece of work and has not been copied or

published elsewhere!

I wish him all the best for his bright future ahead!

A"#I$#E%$A&E'A

2


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Assistant (rofessor

)epartment of *anagement

+!,!"!I!T!*

-(roect +uide.

A6KN49,EDGEEN-

Many hands have toiled to ensure that this project finally sees the light of the day. It

required continuous guidance, inspiration and support from many people and without their

cooperation; this project would not have been complete.

I take this opportunity to epress my sincerest gratitude to my !roject "uide, Ms. #hruti

$garwal, who lived up to her %esignation and was a constant source of guiding light for me

at each and every stage of the eecution of this project.

I would also like to thank the following people who through their eperience have

enlightened me on the practical aspects of this subject without whom the study would not

have been carried out successfully.&' !rof. %r. Mukul "upta ( ).*.%. of M+$ %epartment,"+I-M

2' !rof. %r. %eepa "upta ( "+I-M.

' $ssit.!rofessors at "..+$/$/ I0#-. *1 -3).4 M$0$"M0-

a' $ssit !rof. %r. 5ohit kaushik

b' $ssit !rof. Ms.0aila $frin

c' $ssit !rof. %r. 6ineet #engar

d' $ssit !rof. Mr.$bhishek #aena

e' $ssit !rof. Mr. $nkur !andey

astly I would like to thank my well7wishers and my colleagues who were a constant source

of inspiration and in some cases also motivation as it ultimately has led to the completion of

this project. 1inally I would also like to give due credit to people, who knowingly or


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unknowingly have guided, supported and helped me in the completion of this project as

without their support this project would have never seen daylight.

DEEPAK SINGH

DE6,A%A-I4N

I to declare that the research report entitled 8S64PE 45 ,UXU%7 6A%S

IN INDIA#being submitted to the 9.!.-3)0I3$ 90I65#I-: for thepartial fulfilment of the requirement for the degree of Master of +usiness$dministration is my own endeavours and it has not been submitted earlier toany institutionuniversity for any degree .

P1ace: %!$< #I0")

Date: M+$ I67#em#

=


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Eecuti;e Summary

-he 1uury car mar? per year. $ luury car is a luuriously styled automobilewhich is designed to give satisfaction and comfort to its owner.

$ luury car typically has carrying capacity of @ passengers. -he luury cars in the Indianmarket are very epensive, with price tags that start from 5s. 2A lakh. )ence, luury cars canonly be afforded by the people who belong to the high income group and there are a lot ofsuch takers in the Indian automobile market.

-he various reasons for the growth of the 1uury car marAi and +MC D@Ali models 5olls 5oyce manufactures the 5olls 5oyce !hantom 6 &2 model !orsche manufactures the E&& 3arrera, E&& 3arrera #, and 3ayman # models %aimler 3hrysler manufactures the Mercedes +enF 3 and class models +entley manufactures the +entley 5ange and +entley 3ontinental models

,uury car mar


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India set its foot in the global automotive industry in &GEG, with the first car rolled out in the

streets of Mumbai. #ince then, India has come a long way. -aking into #crutiny the current

statistics, automotive industry is now, the most dynamic sectors in India. -he car market of

India boasts of attractive finance schemes, increasing purchasing power and a vast variety of

uury car range.

India being one of the lucrative hubs for the car market is attracting auto majors from all over

the world. -he count of people ready to buy these high sticker cars is gaining momentum. In

effect to this, almost all the overseas manufacturers including Mercedes, +MC, $udi,#uFuki, and most recently 6olkswagen have entered the fray. 1errariHs announcement to roar

into the India market from 2A&A and $ston MartinHs aspirations to enter the Indian market

soon net year also signals that the market has just picked up pace and there are great

possibilities for these indulgent vehicles to thrill the Indians.

Cith -ataHs recent acquisitionof 1ordHs and 5over and /aguar brands, -he Indian

companies are in the right gear to compete with other global luury brands making a rush in

the country. 5ecent analysis show that India is now among the principal driving markets for

the $sian automotive industry. -he reasons for these unprecedented changes being in favour

of India are quite a few.-he growing population of well heeled citiFens in India emerges to be the primary cause.

Cith the overall population being & billion, the &? people who constitute the affluent society

or the new H"lobal IndiansH are estimated to be over &A million, mainly because of the

growing disposable income of India.

#econdly, 3hange in attitude of the customer accounts for the sudden acceleration in the

uury car Market in India, as the emphasis has been shifted from price consideration and

affordability to design, quality and pleasure. -he Indians who believed in traditional savings

now follow an etravagant approach.

#tepping down to the third possible reason, eposure and passion for speed, power andelegance run on to take their seats. Cith more and more 3ar rallies, ehibition, televising of

1ormula & and international motor shows happening in the country, these luurious coups

have created an urge in drivers to eperience comfort and control at the very same time.

$lso, lower interest rates and good conditioned roads are some of the steps taken by the

Indian government which fuelled the demand for ultra7luury cars in Indian market. 0ow,

penetrating into the future, we can adamantly say that, with the real "%! growth of India

JG.G? in 2AA@' being outstanding, there are definite prospects of increasing count of uury

car buyers. "rowth in the luury segment has been helped by an economy epanding at

nearly E percent on average in the last four years, and the entry of new players and launches

@
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from the likes of +MC, Mercedes7+enF, !orsche and $udi.

$udi, a "erman manufacturer of first7rate luury cars and one of the worldHs leading

premium brands established $udi India under 6olkswagen "roup #ales India !vt. td. in

Mumbai in March 2AAD and is all set to stay put in the country for an enduring tenure through

their valuable investments in brand management, marketing and customer services.Mercedes7+enF India has had a long standing tie up in India in the luury car segment with

its inception way back in &EE>. +eing the only luury car maker in India to have such a wide

range of cars, J#7class, 7class, M7class, 37class and many more', it also provides an

authentic choice for the customers with each model in petrol and diesel variants.

+MC, another worldHs leading brand in the premium car segment, set its foot in India, just

few years back. $s its global record says, +MC in India, strives to achieve the same goal by

presenting customers with Kuality in conjunction with luurious driving comfort.

5olls75oyce, favored by Indian royalty during the imperial +ritish rule returned in 2AA> after

a gap of >A years with the !hantom super luury sedan.1ordHs 6olvo launched of two of its most successful models, the #GA sedan and the L3EA

#96 in both petrol and diesel variants, each promising to offer luury with comfort.

3onsequently, the picture seems to be apparently flaunting that the H"lobal IndiansH are all

ready to take the uury 3ar market to an all7new high and it has been well said ( 81or a

luury car to remain one, its features have to stay ahead of the innovative curve.

D


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-AB,E 45 64N-EN-S

!age no.

&. I0-5*%93-I*0 E72=

a' $i% three autoobile anufacturin% countries E7&

b' Autoobile industry in India &=

c' 'upply chain of autoobile industry &>7&@

d' Production statistics &D

e' E(ports &G7&E

f' )istory of brands 2A72&

g' Car brands in India 22

2. 56IC *1 I-5$-9 2>7DE

a' $rand personality 2>b' The creation of brand personality 2G72E

c' *hy use brand personality &

d' $rand personality of cars 27=

e' +u(ury vehicles >

f' +u(ury ar,et se%ent @7E

g' +u(ury cars in India-Audi $/* Chevrolet 0iat 0ord

G


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)onda )yundai /ercedes /itsubishi 1ol,s2a%en 1olvo =&7DE

. *+/3-I6 *1 -) 5#$53) GA

=. #3*! *1 -) 5#$53) GA

>. 5#$53) M-)*%**": G&

@. 5#$53) 1I0%I0"# G27&A=

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E. +I+I*"5$!):&AE

IN-%4DU6-I4N

BIG -H%EE AU-44BI,E ANU5A6-U%ING

64UN-%IES

(# United States of America and 6anada

"eneral Motors, 1ordand 3hryslerare often referred to as the N+ig -hreeN or, more recentlythe N%etroit -hreeN, being the largest automakers in the 9nited #tates and 3anada. -hey werefor a while the largest in the world and two of them are still a mainstay in the top five. 1ord

has held the position of second7ranked automaker for the past >@ years, being relegated tothird in 0orth $merican sales, after being overtaken by -oyotain 2AAD. -hat year, -oyota

E
http://en.wikipedia.org/wiki/General_Motors_Corporationhttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Chrysler_LLChttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/General_Motors_Corporationhttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Chrysler_LLChttp://en.wikipedia.org/wiki/Toyota


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produced more vehicles than "M, though "M still outsold -oyota that year, giving "M DDconsecutive calendar years of top sales. 1or the first quarter of 2AAG, however, -oyotaovertook "M in sales as well. In the 0orth $merican market, the %etroit automakers retainedthe top three spots, though their market share is dwindling. )onda passed 3hrysler for thefourth spot in 2AAG 9# sales. #ince then, because of -oyotaOs woes with their recent

unintended acceleration recall, -oyota has fallen back to fourth place in sales, with )ondatrailing in fifth place, allowing the %etroit -hree reclaim their +ig -hree title.

-he +ig -hree are also distinguished not just by their siFe and geography, but also by theirbusiness model. -he majority of their operations are unioniFed J9nited $uto Corkersand3anadian $uto Corkers', resulting in higher labor costs than other multinational automakers,including those with plants in 0orth $merica. -he 2AA> )arbour 5eport estimated that-oyotaOs lead in labour productivity amounted to a cost advantage of P>A 9# to P>AA 9#

per vehicle over $merican manufacturers. -he 9$C agreed to a two7tier wage in recent2AAD negotiations, something which the 3$C has so far refused. %elphi, which was spun offfrom "M in &EEE, filed for 3hapter && bankruptcy after the 9$C refused to cut their wagesand "M is epected to be liable for a PD billion shortfall.

In order to improve profits, the %etroit automakers made deals with unions to reduce wageswhile making pension and health care commitments. "M, for instance, at one time picked upthe entire cost of funding health insurance premiums of its employees, their survivors and"M retirees, as the 9# did not have a universal health care system. Cith most of these planschronically underfunded in the late &EEAs, the companies have tried to provide retirement

packages to older workers, and made agreements with the 9$C to transfer pensionobligations to an independent trust. In 2AAE, the 3+3 reported that the non7unioniFed/apanese automakers, with their younger $merican workforces and fewer retirees will

continue to enjoy a cost advantage over the +ig -hree.

%espite the history of their marques, many long running cars have been discontinued orrelegated to fleet sales as the +ig -hree shifted away resources from midsiFe and compactcars to lead the N#96 3raFeN. #ince the late &EEAs, over half of their profits have come fromlight trucks and #96s, while they often could not break even on compact cars unless the

buyer chose options. 5on )arbour, in releasing the *liver CymanHs 2AAG )arbour 5eport,stated that many small 8econoboes of the past acted as loss leaders, but were designed to

bring customers to the brand in the hopes they would stay loyal and move up to more

profitable models. -he report estimated that an automaker needed to sell ten small cars tomake the same profit as one big vehicle, and that they had to produce small and mid7siFe carsprofitably to succeed, something that the %etroit three had trouble doing.

#96 sales peaked in &EEE but have not returned to that level ever since, due to high gasprices. -he +ig -hree have suffered from perceived inferior initial quality and reliabilitycompared to their /apanese counterparts, which has been difficult to overcome. -hey havealso been slow to bring new vehicles to the market, while the /apanese are also consideredthe leader at producing smaller, fuel7efficient cars.

1alling sales and market share have resulted in the +ig -hreeOs plants operating below

capacity J"MOs plants were at G>? in 0ovember 2AA>, well below the plants of its $siancompetitors', leading to production cuts, plant closures and layoffs. -hey have been relying

&A
http://en.wikipedia.org/wiki/United_Auto_Workershttp://en.wikipedia.org/wiki/Canadian_Auto_Workershttp://en.wikipedia.org/wiki/Delphi_(auto_parts)http://en.wikipedia.org/wiki/Sport_utility_vehiclehttp://en.wikipedia.org/wiki/Econoboxhttp://en.wikipedia.org/wiki/United_Auto_Workershttp://en.wikipedia.org/wiki/Canadian_Auto_Workershttp://en.wikipedia.org/wiki/Delphi_(auto_parts)http://en.wikipedia.org/wiki/Sport_utility_vehiclehttp://en.wikipedia.org/wiki/Econobox


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heavily on considerable incentives and subsidiFed leases to sell vehicles. which was crucialto keeping the plants running, which in turn drove a significant portion of the Michiganeconomy. -hese promotional strategies, including rebates, employee pricing and A?financing, have boosted sales but have also cut into profits. More importantly such

promotions drain the automakerOs cash reserves in the near term while in the long run the

company suffers the stigma of selling vehicles because of low price instead of technicalmerit. $utomakers have since been trying to scale back on incentives and raise prices, whilecutting production. -he subprime mortgage crisis and high oil prices in 2AAG resulting in the

plummeting popularity of best7selling trucks and #96s, perhaps forcing automakers tocontinue offering heavy incentives to help clear ecess inventory.

-he +ig -hree sued 3alifornia "overnor $rnold #chwarFenegger to prevent a tailpipeemissions requirement. In response, "overnor #chwarFenegger told the +ig -hree to Nget offtheir buttN.

In 2AAG, with high oil prices and a declining 9# economy due to the subprime mortgagecrisis, the +ig -hree are rethinking their strategy, idling or converting light truck plants tomake small cars. %ue to the declining residual value of their vehicles, 3hrysler has stoppedoffering leases on its vehicles.

In 2AAE, "eneral Motors and 3hrysler filed for and emerged from 3hapter && restructuring inthe 9nited #tates. "eneral Motors of 3anadadid not file for bankruptcy. -he 9nited #tatesand 3anadian government control are reported as temporary.

3a$an

/apanese automakers -oyota, Honda, and Nissan, among many others, have longbeen considered the leaders at producing smaller, fuel7efficient cars. -heir vehicleswere brought to the forefront, due to the('*= oi1 crisiswhich had a major impact onthe auto industry. 1or instance, the Honda 6i;ic was considered superior to

$merican competitors such as the 6he;ro1et "e>aand 5ord Pinto. -he 3ivic is thebest7selling car in 6anadafor &2 straight years in a row.,

$s well, the 0issan 2=AQwas introducedat a relatively low price compared to otherforeign sports cars of the time J/aguar, +MC, !orsche, etc.', while providing

performance, reliability, and good looks. -his broadened the imageof /apanese car7makers beyond their econobo successes, as well as being credited as a catalyst forthe import performance parts industry.

+efore )onda unveiled $cura in &EG@, /apanese automobiles eports were primarilyeconomical in design and largely targeted at low7cost consumers. -he /apanese bigthree created their luury marques to challenge the established brands. 1ollowing)ondaOs lead, -oyota launched the eusname with the # =AAwhich debuted at

&&
http://en.wikipedia.org/wiki/Subprime_mortgage_crisishttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Arnold_Schwarzeneggerhttp://en.wikipedia.org/wiki/Subprime_mortgage_crisishttp://en.wikipedia.org/wiki/Subprime_mortgage_crisishttp://en.wikipedia.org/wiki/Chapter_11http://en.wikipedia.org/wiki/General_Motors_of_Canadahttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/1973_oil_crisishttp://en.wikipedia.org/wiki/1973_oil_crisishttp://en.wikipedia.org/wiki/1973_oil_crisis#Impact_on_motor_industryhttp://en.wikipedia.org/wiki/Honda_Civichttp://en.wikipedia.org/wiki/Chevrolet_Vegahttp://en.wikipedia.org/wiki/Chevrolet_Vegahttp://en.wikipedia.org/wiki/Ford_Pintohttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Nissan_S30http://en.wikipedia.org/wiki/Nissan_Z-carhttp://en.wikipedia.org/wiki/Jaguar_Carshttp://en.wikipedia.org/wiki/BMWhttp://en.wikipedia.org/wiki/Porschehttp://en.wikipedia.org/wiki/Halo_carhttp://en.wikipedia.org/wiki/Acurahttp://en.wikipedia.org/wiki/Lexushttp://en.wikipedia.org/wiki/Lexus_LShttp://en.wikipedia.org/wiki/Subprime_mortgage_crisishttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Arnold_Schwarzeneggerhttp://en.wikipedia.org/wiki/Subprime_mortgage_crisishttp://en.wikipedia.org/wiki/Subprime_mortgage_crisishttp://en.wikipedia.org/wiki/Chapter_11http://en.wikipedia.org/wiki/General_Motors_of_Canadahttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/1973_oil_crisishttp://en.wikipedia.org/wiki/1973_oil_crisis#Impact_on_motor_industryhttp://en.wikipedia.org/wiki/Honda_Civichttp://en.wikipedia.org/wiki/Chevrolet_Vegahttp://en.wikipedia.org/wiki/Ford_Pintohttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Nissan_S30http://en.wikipedia.org/wiki/Nissan_Z-carhttp://en.wikipedia.org/wiki/Jaguar_Carshttp://en.wikipedia.org/wiki/BMWhttp://en.wikipedia.org/wiki/Porschehttp://en.wikipedia.org/wiki/Halo_carhttp://en.wikipedia.org/wiki/Acurahttp://en.wikipedia.org/wiki/Lexushttp://en.wikipedia.org/wiki/Lexus_LS


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PG,AAA in the 9.#., in some markets being priced against mid7siFed si cylinderMercedes7+enF and +MCmodels', and was rated by 3ar and %rivermagaFine as

better than both the P@,AAA Mercedes7+enF=2A # and the P>>,AAA +MCD>iinterms of ride, handling and performance. It was generally regarded as a major shockto the uropean marques; +MC and Mercedes7+enFOs 9.#. sales figures dropped

2E? and &E?, respectively, with the then7+MC chairman berhard von . -he vehicle included a class7leadingJat the time' 2DG hp J2AD kC' 6G engine, four wheel steering, the first activesuspension system offered on a motor vehicle, and numerous interior luuryappointments. -hese made it competitive against the "erman imports like $udi,+MC and Mercedes7+enF, which by the time of InfinitiOs release had overtaken3adillacand incoln in dominating the luury segment of the $merican market. In&EEA, four years after the debut of the egend and Integra, $cura introduced the

0#L, a midship 6@ powered, rear7wheel7drive sports car. -he 0#L, an acronym forN0ew #ports eLperimentalN, was billed as the first /apanese car capable of competingwith 1errariand !orsche.-his vehicle served as a halo carfor the $cura brand. -he

0#L was the worldOs first all7aluminum production car, and was also marketed andviewed by some as the Nveryday #upercarN thanks in part to its ease of use, qualityand reliability, traits that were unheard of in the supercar segment at the time.

-he success of the /apanese automakers contributed to their $merican counterpartsfalling into a recession in the late &EDAs. 9nions and lobbyists in both 0orth $mericaand urope put pressure on their government to restrict imports. In &EG&, /apan

agreed to 6oluntary port 5estraints in order to preempt protectionismmeasuresthat the 9# may have taken, where it be tariffs or import quotas. 3onsequently,/apanese companies responded by investing heavily in 9# production facilities, asthey were not subject to the 65. 9nlike the plants of domestic automakers, /apanese

plants are non7unioned Jsave for09MMI', so they have lower wage epenses and donot face the risk of strikes. -he 65 was lifted in &EE= upon agreement of allmembers of "eneral $greement on -ariffs and -rade J"$--'. stablishing 9#

production facilities was also a significant step in improving public relations, alongwith philanthropy, lobbying efforts, and sharing technology. urope has still largelymaintained its protectionism policies against /apanese cars, though their variesconsiderably.

-oyota has always been by far /apanOs largest automaker, and it recently overtookperennial world leader "M in both production and sales by early 2AAG. $s the mostaggressive of /apanOs companies when it came to epanding into light trucks andluury vehicles, this proved largely successful. -heir high7end brand eusbecamethe top7selling luury marque worldwide in 2AAA, despite being only started up in&EGE. 3onsequently, -oyotaOs stock price has traded at a much higher premium thanother automakers. 0issan was formerly in second place, until financial difficulties inthe late &EEAs caused it to lose its place to )onda. )onda is /apanHs second largest

automaker and ranks sith in the world, behind -oyota, "M, 6olkswagen, 1ord, and

&2
http://en.wikipedia.org/wiki/Mercedes-Benzhttp://en.wikipedia.org/wiki/BMWhttp://en.wikipedia.org/wiki/Car_and_Driverhttp://en.wikipedia.org/wiki/Mercedes-Benz_W126http://en.wikipedia.org/wiki/BMW_E32http://en.wikipedia.org/wiki/Infinitihttp://en.wikipedia.org/wiki/Infiniti_Q45http://en.wikipedia.org/wiki/Horsepower#Society_of_Automotive_Engineershttp://en.wikipedia.org/wiki/Watthttp://en.wikipedia.org/wiki/Four_wheel_steeringhttp://en.wikipedia.org/wiki/Active_suspensionhttp://en.wikipedia.org/wiki/Active_suspensionhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Audihttp://en.wikipedia.org/wiki/BMWhttp://en.wikipedia.org/wiki/Mercedes-Benzhttp://en.wikipedia.org/wiki/Cadillachttp://en.wikipedia.org/wiki/Lincoln_(automobile)http://en.wikipedia.org/wiki/Acura_NSXhttp://en.wikipedia.org/wiki/Ferrarihttp://en.wikipedia.org/wiki/Porschehttp://en.wikipedia.org/w/index.php?title=Halo_vehicle&action=edit&redlink=1http://en.wikipedia.org/wiki/Voluntary_Export_Restraintshttp://en.wikipedia.org/wiki/Protectionismhttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Import_quotahttp://en.wikipedia.org/wiki/NUMMIhttp://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Tradehttp://en.wikipedia.org/wiki/Lexushttp://en.wikipedia.org/wiki/Mercedes-Benzhttp://en.wikipedia.org/wiki/BMWhttp://en.wikipedia.org/wiki/Car_and_Driverhttp://en.wikipedia.org/wiki/Mercedes-Benz_W126http://en.wikipedia.org/wiki/BMW_E32http://en.wikipedia.org/wiki/Infinitihttp://en.wikipedia.org/wiki/Infiniti_Q45http://en.wikipedia.org/wiki/Horsepower#Society_of_Automotive_Engineershttp://en.wikipedia.org/wiki/Watthttp://en.wikipedia.org/wiki/Four_wheel_steeringhttp://en.wikipedia.org/wiki/Active_suspensionhttp://en.wikipedia.org/wiki/Active_suspensionhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Audihttp://en.wikipedia.org/wiki/BMWhttp://en.wikipedia.org/wiki/Mercedes-Benzhttp://en.wikipedia.org/wiki/Cadillachttp://en.wikipedia.org/wiki/Lincoln_(automobile)http://en.wikipedia.org/wiki/Acura_NSXhttp://en.wikipedia.org/wiki/Ferrarihttp://en.wikipedia.org/wiki/Porschehttp://en.wikipedia.org/w/index.php?title=Halo_vehicle&action=edit&redlink=1http://en.wikipedia.org/wiki/Voluntary_Export_Restraintshttp://en.wikipedia.org/wiki/Protectionismhttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Import_quotahttp://en.wikipedia.org/wiki/NUMMIhttp://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Tradehttp://en.wikipedia.org/wiki/Lexus


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)yundai. Mitsubishi and MaFdaare in a distant fourth and fifth place compared to the/apanese +ig -hree.

-oyota, )onda, and 0issan are all in the +usinessCeek magaFineOs -he &AA -op"lobal +randsby dollar value, as ranked by leading brand consultancy Interbrand.-he -oyota marque was valued at 9#P22.@D billion, ranking it ninth among all global

brand names 7 automotive or non7automotive, edging out that of Mercedes7+enF.

Germany

-he automobile industry in "ermanyis one of the largest employers in the country, with astrong labour force of over G@@,AAA J2AA>' working in the industry. In addition, "ermany hasthe largest share of passenger car production inuropewith over 2E? market share JsourceB*I3$, 2AA2', followed by 1rance J&G?', #pain J&?' and the 9nited


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+MC also produces MI0I branded vehicles, and has been the parent company of 5olls75oyce Motor 3ars since &EEG.

+MC, Mercedes7+enF and $udi make up about G@? of the luury midsiFe market.

AU-44BI,E INDUS-%7 IN INDIA

-he Automoti;e industryin Indiais one of the largest in the world and one of the fastest

growing globally. India manufactures over && million vehicles Jincluding 2 wheeled and =

wheeled' and eports about &.> million every year. It is the worldOs second largest

manufacturer of motorcycles, with annual sales eceeding G.> million in 2AAE. IndiaOspassenger car and commercial vehicle manufacturing industry is the seventh largest in the

world, with an annual production of more than 2.@ million units in 2AAE. In 2AAE, India

emerged as$siaOs fourth largest eporter ofpassenger cars, behind /apan,#outh


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and more than E million by 2A2A. +y 2A>A, the country is epected to top the world in car

volumes with approimately @&& million vehicles on thenationOs roads.

$ chunk of IndiaOs car manufacturing industry is based in and around3hennai, also known as

the N"etroitof IndiaN with the India operationsof+MC,1ord,)yundaiand0issanheadquartered in the city. 3hennai accounts for @A per

cent of the countryOs automotive eports. "urgaon and Manesarnear0ew %elhiare hubs

where all of theMaruti #uFukicars in India are manufactured. -he3hakancorridor

near !une,Maharashtra is another vehicular production hub with companies like "eneral

Motors,6olkswagen,#koda,Mahindra and Mahindra, -ata Motors, Mercedes

+enF,1iatand 1orce Motors having assembly plants in the area.$hmedabadwith the-ata

0anoplant,)alol with"eneral Motorsin "ujarat, $urangabadwith $udiin Maharashtra

and
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-hird -ier Su$$1iers:-hese companies provide basic products like rubber, glass, steel,

plastic and aluminium to the second tier suppliers.

Second -ier Su$$1iers:-hese companies design vehicle systems or bodies for 1irst -ier#uppliers and *Ms. -hey work on designs provided by the first tier suppliers or *Ms.

-hey also provide engineering resources for detailed designs. #ome of their services may

include welding, fabrication, shearing, bending etc.

5irst -ier Su$$1iers:-hese companies provide major systems directly to assemblers. -hese

companies have global coverage, in order to follow their customers to various locations

around the world. -hey design and innovate in order to provide 8black7bo solutions for the

requirements of their customers. +lack7bo solutions are solutions created by suppliers using

their own technology to meet the performance and interface requirements set by assemblers.

1irst tier suppliers are responsible not only for the assembly of parts into complete units like

dashboard, breaks7ael7suspension, seats, or cockpit but also for the management of second7

tier suppliers.

$utomakers6ehicle Manufacturers*riginal quipment Manufacturers J*Ms'B $fter

researching consumersH wants and needs, automakers begin designing models which are

tailored to consumersH demands. -he design process normally takes five years. -hesecompanies have manufacturing units where engines are manufactured and parts supplied by

first tier suppliers and second tier suppliers are assembled. $utomakers are the key to the

supply chain of the automotive industry. amples of these companies are -ata Motors,

Maruti #uFuki, -oyota, and )onda. Innovation, design capability and branding are the main

focus of these companies.

%ealersB *nce the vehicles are ready they are shipped to the regional branch and from there,

to the authorised dealers of the companies. -he dealers then sell the vehicles to the end

customers.

!arts and $ccessoryB -hese companies provide products like tires, windshields, and air bags

etc. to automakers and dealers or directly to customers.

#ervice !rovidersB #ome of the services to the customers include servicing of vehicles,

repairing parts, or financing of vehicles. Many dealers provide these services but, customers

can also choose to go to independent service providers.

&@


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P%4DU6-I4N S-A-IS-I6

-he production of automobiles has greatly increased in the last decade. It passed the &

million mark during 2AA72AA= and has more than doubled since.

&D


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EXP4%-S

IndiaOs automobile eports have grown consistently and reached P=.> billion in 2AAE,

with 9nited e

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$ccording toe2 3or, Ties, IndiaOs strong engineering base and epertise in the

manufacturing of low7cost, fuel7efficient cars has resulted in the epansion of manufacturing

facilities of several automobile companies like)yundai

Motors,0issan, -oyota, 6olkswagenand #uFuki.

In 2AAG, )yundai Motors alone eported 2=A,AAA cars made in India. 0issan Motors plans to

eport 2>A,AAA vehicles manufactured in its India plant by 2A&&. #imilarly, "eneral

Motors announced its plans to eport about >A,AAA cars manufactured in India by 2A&&. In

#eptember 2AAE, 1ord Motorsannounced its plans to setup a plant in India with an annual

capacity of 2>A,AAA cars for 9#P>AA million. -he cars will be manufactured both for the

Indian market and for eport. -he company said that the plant was a part of its plan to make

India the hub for its global production business. 1iat Motors also announced that it would

source more than 9#P& billion worth auto components from India.

In /uly 2A&A, -he conomic -imes reported that !#$ !eugeot 3itroen was planning to re7

enter the Indian market and open a production plant in $ndhra !radesh with an annual

capacity of &AA,AAA vehicles, investing 95 DAAM in the operation. !#$Os intention to utilise

this production facility for eport purposes however remains unclear as of %ecember 2A&A.

In 2AAE India JA.2m' surpassed 3hina JA.&@m' as $siaOs fourth largest eporter of cars after

/apan J&.DDm', A,AAA cars

annually from India. $part from shipments to its parent #uFuki,Maruti #uFukialso

manufactures small cars for 0issan, which sells them in urope.0issanwill also eport

small cars from its new Indian assembly line.-ata Motorseports its passenger vehicles to

$sian and $frican markets, and is in preparation to launch electric vehicles in urope in

2A&A. -he firm is also planning to launch an electric version of its low7cost car 0ano in

urope and the 9.#. Mahindra 4 Mahindra is preparing to introduce its pickup trucks andsmall#96models in the 9.#. market. +ajaj $utois designing a low7cost car for the5enault

0issan $utomotive India,which will market the product worldwide. 5enault 0issan may

also join domestic commercial vehicle manufacturer$shok eyland in another small car

project. Chile the possibilities are impressive, there are challenges that could thwart future

growth of the Indian automobile industry. #ince the demand for automobiles in recent years

is directly linked to overall economic epansion and rising personal incomes, industry

growth will slow if the economy weakens.

&E
http://en.wikipedia.org/wiki/New_York_Timeshttp://en.wikipedia.org/wiki/New_York_Timeshttp://en.wikipedia.org/wiki/Hyundai_Motorshttp://en.wikipedia.org/wiki/Hyundai_Motorshttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Volkswagenhttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/Ford_Motorshttp://en.wikipedia.org/wiki/Hyundaihttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/SUVhttp://en.wikipedia.org/wiki/Bajaj_Autohttp://en.wikipedia.org/wiki/Renault_Nissan_Automotive_India_Private_Limitedhttp://en.wikipedia.org/wiki/Renault_Nissan_Automotive_India_Private_Limitedhttp://en.wikipedia.org/wiki/Ashok_Leylandhttp://en.wikipedia.org/wiki/New_York_Timeshttp://en.wikipedia.org/wiki/Hyundai_Motorshttp://en.wikipedia.org/wiki/Hyundai_Motorshttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Volkswagenhttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/Ford_Motorshttp://en.wikipedia.org/wiki/Hyundaihttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/SUVhttp://en.wikipedia.org/wiki/Bajaj_Autohttp://en.wikipedia.org/wiki/Renault_Nissan_Automotive_India_Private_Limitedhttp://en.wikipedia.org/wiki/Renault_Nissan_Automotive_India_Private_Limitedhttp://en.wikipedia.org/wiki/Ashok_Leyland


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Sni$$ets

-he first automobile in India rolled in &GED in +ombay.

India is being recogniFed as potential emerging auto market.

1oreign players are adding to their investments in Indian auto industry.

Cithin two7wheelers, motorcycles contribute GA? of the segment siFe.

9nlike the 9#$, the Indian passenger vehicle market is dominated by cars JDE?'.

-ata Motors dominates over @A? of the Indian commercial vehicle market.

2rd of auto component production is consumed directly by *Ms.

India is the largest three7wheeler market in the world.

India is the largest two7wheeler manufacturer in the world.

India is the second largest tractor manufacturer in the world.

India is the fifth largest commercial vehicle manufacturer in the world.

-he number one global motorcycle manufacturer is in India.

India is the fourth largest car market in $sia 7 recently crossed the & million mark.

History of Brands

-he Mercedes7+enF logo is one of the most famous brands in thewor;d. -he +enF logo is a simplistic three7pointed star that representsits domination of the land, the sea, and the air. -he famous three7

pointed star was designed by "ottlieb %aimler to show the ability of hismotors for land, air and sea7usage. It was first seen on a %aimler in

&EAE, and was combined with the +enF laurel wreath in &E2@ to signifythe union of the two firms. Mercedes7+enF is the worldOs oldest

2A
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automobile manufacturer.

+MC stands for +ayerische Motoren Cerke or +avarian Motor3ompany. -he company was established in &E& and based in Munich,"ermany. It started out as an aero engine manufacturer, hence thecompany logo. -he logo comprised of four quadrants of alternatingwhite and blue color. It is a styliFed representation of an airplane

propeller spinning against the clear blue sky. -he logo represents awhite propeller blade against a blue sky. It reflects the origins of +MCas a maker of military aircraft engines during CCI. $lso, white and

blue are the traditional colors of +avaria.

$ll racing fans are very familiar with the famous 1errari NprancinghorseN symbol. -he famous symbol of 1errari is a black prancing horseon yellow background, usually with the letters # 1 for #cuderia 1errari.-he horse was originally the symbol of 3ount 1rancesco +aracca, alegendary NassoN Jace' of the Italian air force during Corld Car I, who

painted it on the side of his planes. +aracca died very young on /une&E, &E&G, shot down after = victorious duels and many team victories.

-he $udi badge the O1our 5ingsO is the emblem of one of the oldest carmanufacturers in "ermany. It symbolises the &E2 merger of the fourindependent motor7vehicle manufacturersB $udi, %


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amborghini is an Italian manufacturer of high performance sports carsbased in the small Italian village of #antO$gata +olognese, near+ologna. amborghini is now a subsidiary of "erman car manufacturer$udi $", which is in turn a subsidiary of 6olkswagen. amborghini isthe main counterpart to 1errari in the Italian sports car business. -heItalian company was founded in &E@ by businessman 1erruccio

amborghini, who owned a successful tractor factory.

-he amborghini 3harging +ull ogo stands for the founderOs,1erruccio amborghini, Fodiacal sign J-aurus'. Most of the companyOscars have been named after famous fighting bulls Joddly most have

been spanish bulls not italian'.

Interestingly it is said that the choice of an animal and the colors usedon the logo Jgold on a black background, and a charging bull' aresuspiciously similar to the 1errari logo Ja black horse on a yellow

background'. It is believed that this was no accident on the part of

amborghini, who had a long standing Jand not always friendly' rivalrywith 1errari.

/aguar 3ars imited is a +ritish based luury car manufacturer,originally with headquarters in +rowns ane, 3oventry, ngland butnow at Chitley, 3oventry. It was founded as the #wallow #idecar3ompany in &E22,by two motorcycle enthusiasts, Cilliam yons andCilliam Calmsley, and changed its name to /aguar in &E=>. -he

company has been owned by 1ord since &EGE. -he /aguar logo is a/aguar leaping across the company name. -he leaping /aguart ispossibly built to represent the speed, power and quickness of the car.-he /aguar emblem is also placed on the front of the car.

22


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6A% B%ANDS IN INDIA

2


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6A%S B7 P%I6E %ANGE

Under %s# =

,a


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6erna,)yundai #onata mbera, )onda 3ity QL, )onda /aFF Maruti +aleno, Maruti #uFuki #=, Maruti #uFuki #wift

%Fire,Mahindra #corpio, Mitsubishi ancer, Mitsubishi3edia,Mahindra +olero

-oyota Innova, -ata #umo 6icta, -ata #umo "rande, -ata #afari

#koda 1abia

%s# (&!(0 ,a
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india.com/automobile/chevrolet-captiva.htmlhttp://www.surfindia.com/automobile/chevrolet-cruze.htmlhttp://www.surfindia.com/automobile/honda-crv-2007.htmlhttp://www.surfindia.com/automobile/honda-crv-2008.htmlhttp://www.surfindia.com/automobile/honda-civic-hybrid.htmlhttp://www.surfindia.com/automobile/honda-accord.htmlhttp://www.surfindia.com/automobile/honda-accord.htmlhttp://www.surfindia.com/automobile/hyundai-santa-fe.htmlhttp://www.surfindia.com/automobile/maruti-grand-vitara.htmlhttp://www.surfindia.com/automobile/mitsubishi-pajero.htmlhttp://www.surfindia.com/automobile/new-skoda-superb.htmlhttp://www.surfindia.com/automobile/skoda-laura.htmlhttp://www.surfindia.com/automobile/toyota-camry.htmlhttp://www.surfindia.com/automobile/ford-endeavour-thunder-plus.htmlhttp://www.surfindia.com/automobile/toyota-fortuner.htmlhttp://www.surfindia.com/automobile/volkswagen-beetle.htmlhttp://www.surfindia.com/automobile/volkswagen-passat.htmlhttp://www.surfindia.com/automobile/volkswagen-jetta.htmlhttp://www.surfindia.com/automobile/audi-tt-coupe.htmlhttp://www.surfindia.com/automobile/audi-q7-suv.htmlhttp://www.surfindia.com/automobile/mitsubishi-montero.htmlhttp://www.surfindia.com/automobile/mercedes-benz.htmlhttp://www.surfindia.com/automobile/toyota-land-cruiser-prado.htmlhttp://www.surfindia.com/automobile/volvo-xc90.htmlhttp://www.surfindia.com/automobile/volvo-s80.htmlhttp://www.surfindia.com/automobile/audi-r8.htmlhttp://www.surfindia.com/automobile/bentley-continental-gtc.htmlhttp://www.surfindia.com/automobile/bentley-azure.htmlhttp://www.surfindia.com/automobile/bentley-azure.html


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%E"IE9 45 ,I-E%A-U%E

Brand Persona1ity

$ brand is 8a set of epectation and association evoked from a company or product. $ brand

is how your key constituents7 customers, employees, shareholders etc. eperience what you

do. #ome brands are of such great importance to people, that we speak of them as a part of

oneHs life and identity, being used to epress one. #ome would say that these brands have

their own personality, the brand personality, which can be defined as 8the set of human

characteristics associated with a given brand. -hus, it includes such characteristics as

gender, age and socioeconomic class, as well as such classic human personality is both

distinctive and enduring.

+ased on the premise that brand can have the personalities in much the same way as humans,brand personality describe brands in terms of human characteristics. +rand personality is

2@


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seen as valuable factor in increasing brand engagement and brand attachment, in much the

same way as people relate and bid to other people. Much of the work in the area of brand

personality is based on translated theories of human personality and using similar measures

of personality attributes and factors. +rand personality refers to the set of humancharacteristics we associated with the brand. $ common way of determining this is to reply

on the metaphorB 8If the brand was a person, what would heshe be likeU we then list and

group the traits to describe the brand as, for eampleB caring, approachable and trustworthy.

)owever, there is a lot more we can do.

+ecause many people interact with brands as though they were other people, it is important

to understand what a brand personality consists of, and how its characteristics can be used to

affect the relationship between the brand and its user.


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people feel about tow companies. Chen asked questionB 8if these companies are people, how

would you describe themU their replies wereB

3ompany $ 3ompany +

#ophisticated asy going

$rrogant Modest

fficient )elpful

#elf7 centered 3aring

%istant $pproachable

%isinterested Interested

-hese two companies are actually competitors in a service industry. If you were asked of

these two companies you would like to be your fiends, you would probably choose company

+, as did E>? of other respondents. It is not surprising that the service level of company +

can be better eperience for customers than that of company $. it is also easy to conclude

that if customers consistently eperience these differences between the two companies, thenthe brand image of company + will be much better than company $.

$ further point of interest arising out of this research is that people tend to prefer brands that

fit their self7concept. veryone has views about themselves and how they would like to be

seen by others. $nd they tend to like personalities that are similar to theirs, or to those whom

they admire. -hus, creating brands with personalities similar to those of a certain group ofconsumers will be an effective strategy. -he closer the brand personality is to the consumer

personality Jor one which they admire or aspire to', the greater will be the willingness to buy

the brand and deeper the brand loyalty.

2G


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-HE 6%EA-I4N 45 B%AND PE%S4NA,I-7

+rand personality traits are formed and influenced by any direct or indirect contact that theconsumer has with a brand. $ brand, unlike a person, cannot think, feel or act. $ brand has

no objective eistence at all; it is simply a collection of perception on the mind of the

consumer. 3onsumers accept the marketing actions to humaniFe brands. *ne eplanation fort

this can be found in the theories of animism, which suggest that there eists need by people

to anthropomorphiFe objects in order to facilitate interaction with the nonmaterial world.

$nthropomorphiFe occurs when human qualities are attributed to non human objects, e.g.

brands. 3onsumers easily assign personality quality to inanimate objects like brands in

thinking about the brands as if they are human characters.

In a direct way, personality traits are associated with a brand by the people associated to that

brand. *ne direct way to form and influence brand personality is user imaginary. 9ser

imaginary is defined as the set of human characteristics associated with the typical or

stereotype user of the brand. $ssociations with the company employees or 3* and the

brandHs product endorsers are also direct ways by which brand personality traits are formed

and influenced. -he personality traits that of the people associated with a brand aretransferred directly to the brand. -he theories of animism describe another process

2E


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mechanism that directly eplains the specific ways in which the vitality of the brand can be

realiFed J1ournier, 2AA='. #pokespersons that are used in advertising can have personalities

that fit those of the brand they advertise. *ver time, the personalities of the spokesperson are

transmitted to the brand. -he brand7person associations can also have a more personal nature.+rands can be associated with person who use or used that particular brand, for eample a

close friend or a family member. $lso, brands received as gifts can also be associated with

the person from whom the gift was received. -hese person associations serve to animate the

brand as a vital in the minds of the consumers. *bviously, this aspect is much less under the

control of the marketers.

Indirectly, the brand personality is created by all the elements of the marketing mi. +etra,

ehman and #ingh suggest that the personality of a brand is created over time, by the entiremarketing mi of the brand 7 8its price Jhigh or low, odd or even', retail store location

Jimaginary associations', product formulation Jingredients, benefits', and product form

Jsolidliquid. tc.', packaging details Jcolor, siFe, material, shape', symbol; used an all

phases of the brand communication, sales promotion, and media advertising.

$nother form of animism eplains how brand personality is created in a more indirect way.

-his form of animism involves complete anthropomorphiFation of the brand object itself.

)uman qualities of emotionality and thought are transferred to the brand. -his is achieved

with the help of the marketing actions, especially advertising. 1or eample, the brand

character of M4M in the M4M commercials has the capacity to laugh and joke.

*ne of the advantage of the brand personality is that based on their distinctive personalities,

consumers are able to differentiate between brands. $nother advantage is that the consumer

can interpret the brandHs image in such a way that it is personally more meaningful. +rand

personality encourages more active processing on the part of the consumer. -hus, theconsumer put more efforts in creating and using the brand personality. $ further advantage of

brand personality is that life is given to a brand. +y vitaliFing a brand, another perspective of

brand personality can be eamined, namely the role of a brand as relationship partner in a

consumer7brand relationship. 0et we will concentrate on these consumer7brand

relationships.

Chether the brand is a product or a company, the company has to decide what personality

traits the brand is to have. -here are various ways of creating brand personality. *ne way is

A


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to match the brand personality as closely as possible to that of consumers or to the

personality that they like. -he process will be

%efine the target audience

1ind out what they need, want and like

+uild a consumer personality profile

3reate the product personality to match that profile

N4N P%4DU6- %E,A-ED B%AND

PE%S4NA,I-IES D%I"E%S

User ima>inary( user imaginary can be based on either typical users Jpeople you see using

the brand' or idealiFed users Jas portrayed in advertising and else were'. 9ser imaginary can

be powerful driver of brand personality, in part because the user is already a person and thus

the difficulty of conceptualiFing the brand personality is reduced. 1or eample 3harlie has a

feminine, strongly independent brand personality driven by it user imaginary. -he upscale

personality of Mercedes and the sey, sophisticated personality of 3alvin e( how long a brand has been on the market can affect its personality. -hus new entrantssuch as $pple, M3I, and #aturn tend to have younger brand personalities than brand such as

&


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I+M, $-4-, and 3hevrolets, and it as all too common far a major dominate brand to see as

strongly and old fashioned, a brand for older people.

Symbo1 ( a symbol can be powerful influence on brand personality because it can becontrolled and can have etremely strong associations. $pples bitten apple, the Marlboro

cowboy, the Michelin mans all helps to create and reinforce a personality for their brands.

9H7 USE B%AND PE%S4NA,I-7

-he brand personality construct can help brand strategies by enhancing their understandings

of peopleHs perceptions of and attitude towards the brand, contributing to a differentiatingbrand identity guiding the communication effort and creating brand equality.

Enrichin> understandin

-he brand personality metaphor can help a manager gain an in7depth understanding

of consumer perceptions and attitudes towards the brand. +y asking people to

describe a brand personality, feelings and relationship can be identified that oftenprovide more insight than is gained by asking about attribute perceptions.

6ontributin> to a differentiatin> identity

#trategically, a brand personality, as a part of a core or etended identity, can serve as

the foundation for meaningful differentiations. $dvertising agencies such as :oung 4

5ubicam and *gilvy 4 Mather routinely include a brand personality statement as a

part of their brand positioning strategy.

Guidin> the communication effort

2


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-actically the brand personality concept and vocabulary communication the brand

identity which richness and teture to those who must implement the identity building

effort. !ractical decisions need to be made about not only advertising but packaging,

promotions, which events to associate with, and the style of person interactionsbetween the customer and the brand.

6ratin> brand e@uity

-he brand personality creates brand equity. -he self7epression model eplains this.

-he model says that for certain groups of customers; some brands become vehicles to

epress a part of their self7identity. !eople epress their own or idealiFed identity in a

variety of ways, such as a job choices, attitudes, options, activities and lifestyles.

+rand that people like, admire, discuss, buy and use also provide a vehicle for self7

epression.

B%AND PE%S4NA,I-7 45 6A%S

$re you what you driveU -hat is what are companies seem to be asking and in the same

breath trying to convince you about. In other words, are you the )yundai accent owner whocommands immediate respect wherever she goes Jincluding fro the potential father7in7law' or

are you the suave eecutive from the 3hevrolet ad who is ever ready to share a moment with

loved oneU Cith a plethora of new models in the market, and generic benefits Jsuch as space

or fuel efficiency' of a particular car segment hardly a distinguishing factor between car

models, marketer are increasingly differentiating on the emotional pay7off a particular car

modelbrand provides to the customer. -his, of course, varies from the segment to segment

and also on how long a particular model has been in the market.

1or instance, while advertising for entry level or smaller cars tends to focus more on the

rational or functional benefits of the vehicles, the differentiations is increasingly on the

emotional benefits when it comes to high end cars.

8"enerally, it has been seen as one move up the value chain, the differentiation is more on

the emotional pay7off. !eople buy car as an etension of their personality rather than just

features. $ car, in India, helps build up show off, social esteem value. -he advertising wouldalso vary according to the segment which one is targeting, he says. 1or instance, the


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3hevrolet *ptra ad Jwhich depicts a young husband driving his wife to see the moon on the

occasion of


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campaign. 8Ce have found that typically a buyer for a smaller car Jsub 5s = lac' looks for

aspects such as reliability and fuel efficiency. -his changes as we move up since in case the

consumer has been with the category for a longer time and hence it is important t to talk of an

emotional pay off.

$ case in point is the Maruti GAA campaign in which the kids who is playing with a toy

Maruti GAA eclaims to his dad Jwhen asked how long will he keep on running the car',

8papa ki


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,UXU%7 "EHI6,ES

,uury ;ehic1eis a marketingterm for a vehicle that provides luury V pleasant ordesirable features beyond strict necessityVat increased epense JseeB definition of luury'.

-he term suggests a vehicle with greater equipment, performance, construction precision,

comfort, design ingenuity, technological innovation, or features that conveybrandimage,

cachet, status, or prestigeVor any other discretionaryfeature or combination of features.

$utomobile manufacturers market specific makes and models that are targeted at particular

socio7economic classes, and thus Nsocial status came to be associated more with a particular

vehicle than ownership of a car per se.N -herefore, automakers differentiate among theirproduct lines in NcollusionN with the car7buying public. Chile a high price is the most

frequent factor, it is Nstyling, engineering, and even public opinion which cars had the highest

and lowest status associated with them.N

very era in automobile history has had Na group of car marques and models that have been

epensive to purchase, due to their alleged superiority of their design and

engineeringN. $imed at wealthy buyers, such automobiles might be generically be

termed lu(ury cars. N-his term is also used for unique vehicles produced during Nan era when

luury was individualistic consideration and coachwork could be tailored to an owner like a

@
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bespoke suit.N $lthough there is considerable literature about specific marques, there is a lack

of systematic and scholarly work that NanalyFes the luury car phenomenon itself.N

In contemporary usage, the term may be applied to any vehicle typeV

including sedan,coupe, hatchback,station wagon, and convertiblebody styles, as well asto minivans, crossovers, orsport utility vehicles and to any siFe vehicle, from small to large

Vin any price range.

-hough widely used, the term luury is broad and highly variable. It is a perceptual,

conditional and subjective attribute and may be understood differently by different peopleB

NChat is a luury car to some... may be OordinaryO to others.N

,UXU%7 A%KE- SEGEN-S

Premium com$act se>ment

-he premium compact segments relatively new, having been initiated by several uropean

brands in the mid72AAAs, and constitute the least epensive offerings in their line7ups. -hese

cars are targeted at a niche market of young customers who have a more refined taste in their

automobiles and the means to pay for them. +y offering a smaller, lighter, more fuel7

efficient, and less epensive vehicle, this serves to introduce a younger customer to the

luury marque, in hopes of retaining the coveted customer loyalty. -his includes the $udi$,+MC & #eries, and Mercedes7+enF +73lass.

!remium compacts may share components with mass market cars from the marqueeHs parent

company Jthe $', andor have less sophisticated platforms compared to upmarket vehicles

in the lineup Jsuch as the +73lass'. -he body style tends to be a hatchbackor compact

wagon, previously associated with economy cars but regaining popularity in the 9nited

#tates for its afforded utility. -he luury branding and style, high7quality interior materials,

wide range of convenience features, and performance powertrains are key to distinguishing

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them from mass market equivalents Jone mistake made by the 3adillac 3imarron' and

making these appeal to consumers.

-he classification varies, for instance 3onsumer "uide $utomotive in the 9# considers the

$udi $ and $= as part of the premium compact segment due to similar siFe and M#5!,though these are known in urope as a small family car and a compact eecutive car,

respectively.

Entry!1e;e1 1uurycom$act eecuti;e cars

-he entry7level luury category is also known as the compact eecutive carin +ritain and

J/ittel,lassein "erman'. In the 9#, this segment mostly includes the bottom vehicles in the

line7up of luury brands as well as the top7of7the7line models of some non7luury brands.

3ompact eecutive cars tend to have comple powertrain and mechanical layouts, resulting

in increased cost and reduced interior passenger and trunk space, compared tomass market

compact cars. )owever, material and building quality is higher, there are eclusive features

not found on mass market cars, there is better handling and performance, and

the nameplateitself is part of the value proposition.

3ompact eecutive cars include the 6olvo #@A, eus I#,+MC #eries, and Mercedes7

+enF 373lasswhich particularly emphasiFe sporty handling. *ther vehicles such asthe eus #and$cura -are also considered entry7level luury as well, though they do

not fall under uropean luury classifications as they are larger and not sold there.

5ecently, the entry7level luury has been very competitive, and there has been price7

overlapping with well7equipped non7luury cars. -he bestselling vehicles of the marque are

frequently compact eecutive cars, such as the +MC #eries that makes up =A? of the

vehicles that +MC sells worldwide.

id!1uuryeecuti;e cars

-he mid7luury segment are commonly referred to aseecutive carsin +ritain, 4bere

/ittel,lassein "erman, and Grandes Routi5resin 1rench. amples include the 6olvo

#GA,+MC > #eries,Mercedes7+enF 73lass,and/aguar L1.

$lthough having similar dimensions to mid7siFe carsand large family cars, eecutive cars

have lower sales volumes and higher development costs Jfor better performance and

amenities', thus eecutive cars are usually positioned as premium vehicles, as base trims withless equipment and smaller engines are not sold in 9.#. and 3anadian markets.W2@X$lso due to

G
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the problem of steep depreciation, especially concerning cars from less prestigious brands,

most eecutive cars are produced by marques that specialiFe in largermore epensive

vehicles.

6ehicles in this segment include the mid7range models of several luury carmanufacturers. -here are also someflagship sedans in this segment, such as the$cura

5and Infiniti MD>@. ecutive cars such as the +MC > #eries are crucial to a luury

automakerOs bottom line, and although not the highest7selling model, they generate a

significant amount of profits due to the lucrative technology options.

Hi>h!end 1uuryfu11!sie 1uury cars

$lso known asfull7siFe luury cars, grand saloons, or premium large cars, while

N*berklasseN is used in "ermany. Many of these are the marqueOs showcases for the newest

automotive technology. #everal nameplates also offer long7wheelbase versions that offer

additional rear legroom and anemities. 1ull7siFe luury cars sold in 3anada and the 9.#.

typically have mid7displacement 6G engines, though recently some marques have offered a

6@ but without much success.

6ehicles in this category include some of the models from the flagship lines of luury car

brands. amples include the eus #, $udi $G, 6olkswagen !haeton,+MC D

#eries, Mercedes7+enF #73lass, /aguar L/and in the 9#, the incoln -own 3ar and3adillac

%-#.

U1tra!1uury cars

5.. !olk and 3ompany, a global automotive information and marketing firm that provides

solutions to automotive and related industries, has defined the term Nsuper luuryN segment

for luury cars costing more than P&AA,AAA 9#%. -his bracket includes the entire lineup

of5olls 5oyce, +entley, $ston Martin,Maybach, andMaserati. -he top7performing variantsof flagship cars from $udi, +MC, Mercedes7+enF and/aguarare often included here.

-here are ultra7high performance cars from Neotic brandsN that also eceed the P&AA,AAA

9#% mark, but would not necessarily be categoriFed as luury automobiles, such as the

offerings from 1errari, amborghiniand !orsche.

,uury SU"6rosso;er

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-he luury7type sport utility vehicle J#96' segment is not a recent development. -his

marketing category was created with


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and it has since been the best7selling luury vehicle in the 9#, so it has inspired similar

competitors from rival marques.W=>XChile early luury crossovers released in the late &EEAs

have resembled traditional boy #96s, recent offerings have prioritiFedsportinessover

utility V such as the Infiniti 1L and +MC L@.

6HA%A6-E%S-I6S

uury cars tend to offer a higher degree of comfort than their mainstream counterparts,

common amenities include genuine leather upholstery and polished Nwoodgrain7lookN

dashboards. 3ompared to mainstream vehicles, luury cars have traditionally emphasiFedcomfort and safety. uury vehicles are also a status symbol for conspicuous consumption.

3ontemporary luury cars also offer higher performance and better handling, which is often

known assport luury. )owever in urope, where large7displacement engines are often

heavily taed and many luury buyers shy away from conspicuous consumption, brands offer

buyers the option of removing eterior engine7identifying badges.

1orbes noted that the reputation of luury marques enables them to continually introduce

many new safety technologies and comfort amenities, such as anti7lock brakes,electronic

stability controland %6% entertainment systems, before they trickle down to mass market

cars. 0umerous Nsmart carN features are largely only found on luury cars as of 2AAE.

-he rear7wheel drivewith longitudinal engines J15' is a common layout of luury cars.

uropean marques like Mercedes7+enF,+MC, and /aguarhave almost never adopted front7

wheel driveand retained a lineup mostly or entirely made up of 15 cars. /apanese brands

such as eus and Infinitialso have predominantly 15 lineups. -he 15 layout, while more

epensive than the 11, has been retained by these luury manufacturers as it allows for

higher performance engines Jparticularly thestraight7@,6G,and other engine configurations

with more cylinders', better handling, and a smoother ride.

=&
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$merican manufacturers also largely followed the 15 for their luury brands Jas well as their

mass7market cars of the time'. )owever, due to the$rab *il mbargoof &ED and the &EDE

fuel crises, began eliminating their 15 platforms in favor of the more economicalfront wheel

drive transverse enginelayoutJ11'. 3hrysler went &AA? 11 by &EEA

and "MOs 3adillacand+uickbrands for the 9# were entirely 11 by &EED. *ne of the few

notable holdouts was 1ordOsincoln -own 3arandincoln #.

In the 2&th century, as part of the revamp of its design and image, 3adillac did return most of

its lineup Jsedans, roadsters, crossovers and #96s' to have rear7 and all7wheel7drive, the

only eceptions being the front7wheel drive3adillac +# Jwhich is not sold in 0orth

$merica' and the3adillac %-#.3hryslerreturned its full7siFecars to this layout with

the 3hrysler AA. 1ordOs incoln retained the longtime 15 platform for the -own 3ar,

intended for use as a limousineandchauffeuredcar, but newer offerings such as

the M


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Audi A8 4.2 FSI Petrol... Audi A8 W12 6.0 Petrol...

1,11,25,425 78,51,212

AudiQ7 3.0 TDI Diesel Sedan... AudiQ7 4.2 FSI Petrol Sedan...

61,73,745 76,70,346

!opular $udi models range in on7road price from below rupees thirty7two lakhs to a bitabove rupees one73rore, including

Audi AC .Sedan/

$vailable in two variants 7 $= &.G petrol and $= 2.A diesel,this model caters to the premium luury market in India. -he $= is the base range

presentation in the range of world class $udi cars now available in India. -his car is alsomarketed as a compact eecutive vehicle around the world. In India, style and substancemake it a sure competitor to other 3 segment cars. -he $= offers an on7road price range

between rupees thirty two and thirty four lakhs. -he $= 6ariants include

AC (#- .Petro1/

-he $udi $= &.G turbo petrol is $udiOs entry level petrol model in India which sports $udiOsremarkab

Documents

Dissertation Scope of Luxury Car Brand in India2