Submitted by :

ANAND TUTEJA 1B-40

ARUN PUNDIR 1B-43

NANDITA KATIYAR 1B-54

RASWINDER JIT SINGH 1B-31

RUPAL NIMBHORKAR 1B-33

SHRAVAN RASTOGI 1B-59

BRAND MANAGEMENT

Under guidance of Prof Vartika Joshi

1. Classification of Car Segments

2. History & Evolution

3. Failure

4. Product Details

5. Dealer Analysis

6. Competitor Analysis

7. Customer Analysis

8. Associative Network Memory Model

9. Consumer Decision Making Process

10.CBBE Pyramid

11.Conclusion & Inferences

CLASSIFICATION OF CAR SEGMENTS

(according to size)

I) MINI : Maruti – 800

Tata NANO

II) COMPACT : Hyundai SANTRO / i-10 / GETZ

Maruti ZEN / ALTO / WAGON–R

/ SWIFT

Chevrolet SPARK / AVEO–Uva

Tata INDICA

Fiat PALIO

Ford FUSION

Skoda FABIA

III) MID SIZE : Hyundai ACCENT

Maruti ESTEEM / SX4 / VERNA

/ BALENO / SWIFT-DeZire

Ford IKON / FIESTA /

Tata INDIGO / MARINA

HM AMBASSADOR

Honda CITY

Chevrolet AVEO

Mahindra-Renault LOGAN

IV) EXECUTIVE : Skoda OCTAVIA

Toyota COROLLA

Chevrolet OPTRA

Hyundai ELANTRA

Honda CIVIC

Mitsubishi LANCER

V) PREMIUM & LUXURY :

Honda ACCORD

Hyundai SONATA

Ford MONDEO

Toyota CAMRY

Skoda LAURA / SUPERB

Mercedez BENZ C-Class

BMW 3 Series

AUDI

Volkswagen PASSAT

T H E B I R T H Hindustan Motors is an Indian automobile

manufacturer founded in 1942.

Part of the Birla group of industries.

One of the original 3 car manufacturers in India.

Largest car manufacturer in India before the rise

of Maruti Udyog (MUL).

It is the producer of the famous Ambassador car,

widely used as a taxicab and as a government

limousine.

T H E J O U R N E Y

AMBASSADOR CAR

Manufactured at Uttarpara plant near Kolkata,

West Bengal.

Until the 1980’s, Ambassador and Premier

Automobiles Ltd’s (PAL) Padmini were the only 2

cars available in the Indian market.

THE JOURNEY CONTINUES …….In production since 1957.

Ambassador was the vehicle of choice,

Government of India, and the official car for

almost every Indian Prime Minister after

independence.

HM derived a major part of its sales from

senior politicians, top civilians, bank

managers and defense personnel.

A N D T H E J O U R N E Y

S T I L L C O N T I N U E S ….

Ambassador was very popular in the taxi segments as well, even in 2001 the segment accounted for almost 65% of ambassadors sales.

Till the early 1980s, Ambassador commanded 70% of the market share. Premier Padmini claimed the other 30%.

“ Amby – Hall Of Fame ” One of India's best-known cartoonist RK. Laxman, has driven an Ambassador for years.

Oscar-winning Indian director Satyajit Ray immortalised the car in many of his films. .

Government of India has a fleet of more than 5,000 Ambassadors. whose rounded contours, big bonnet and bulging headlights have remained virtually unchanged since it first rolled off the production line in 1957.

Evolution of Automobile Industry

Initial Years

Manufacturing was licensed

License Raj

• High Customs duty on

imports

• Steep excise duties &

• Sales tax

• 2 Major players : Premier Automobiles Ltd & Hindustan Motors

1980s

• Entry of MUL, better product,

with government support

• Seller’s Market

• Long Waiting Periods

Early to mid 90s

• Seller’s market and long

waiting periods

• Decrease in customs &

excise

• Auto finance boom- more

players

• Foreign banks & non

banking companies, better

schemes.

Mid 90s – Early 2000s

• Buyers market

• Easy Auto finance

• Manufactures

diversifying into related

activities: finance lease,

fleet management,

insurance and used car

market

• But HM diversified very

lately compared to all

other companies

The Dark CloudsReasons for failure :

1. Focused only to one segment.

2. Internal Union problems.

3. Drop in marketing strategies.

4. Lack of innovation.

5. Failure of HRM strategies.

6. Incompetence to handle competition.

7. Unaesthetic design.

T H E P O I S O N P I L L

HM was focused only to one segment till 1997

and with in that time MUL was able to bring

out brands for each segment with in the

nation. Substitute for the brand was quite

visible in the economy

PRODUCT DETAILS

(available in 4 variants)

1) 1.8 L Petrol : 1817 cc / 71 bhp

2) 2.0 L Diesel : 1995 cc / 50 bhp

3) 1.5 L Diesel : 1489 cc / 35 bhp

4) 1.8 L CNG : 1817 cc / 54 bhp

54 litre fuel tank

1200 kg weight

Mileage 8-11 kmpl

130 dealers all over India

• First Model Launch in 1948.

• Available in 5 Models.

• Priced between 4.8 L to 6.3 L.

• Choose from 10 Colors.

• On-Demand Left Hand Drive Option.

• Plant in Uttarpara – West Bengal.

• 5+1 Seating Capacity.

•First Model Launch in 1948.

•Available in 5 Models.

•Priced between 4.8 L to 6.3 L.

•Choose from 10 Colors.

•On-Demand Left Hand Drive Option.

•Plant in Uttar Para – West Bengal.

•5 + 1 Seating Capacity.

•Can be easily bullet proofed.

TOTAL SALES AMBASSADOR % of total

sales

2005-06 9,09,000 20,800 2.2 %

2006-07 10,71,000 10,200 0.95 %

2007-08 12,24,000 8,500 0.69 %

% OF TOTAL SALES

9090001071000

1224000

8500

10200

20800

0

200000

400000

600000

800000

1000000

1200000

1400000

2005-06 2006-07 2007-08

years

un

its

TOTAL SALES AMBASSADOR

J WILLIAM’S AND COMPANY

(Opposite East Street Cafe)

Sales Manager : Mr. John D’Cruz

Broadly the dealer was asked the following questions :

1. When was there a drop in sales ?

2. When was the dealership stopped ?

3. Why was the dealership stopped ?

4. Approximate sales and profit margin ?

5. How was the brand visibility ?

6. What was the consumer profile ?

7. How many cars were stocked at a time ?

8. How is HM’s attitude towards ambassador ?

9. What could be the reasons for decline ?

10.What did customers look for in a car ?

11. Is HM promoting Lancer to the government ?

DEALER’s RESPONSES

• Dealership stopped 2-3 months back.

• Sales were only 6-7 cars a month.

• Earlier sales high due to less competition.

• More focus on Mitsubishi cars now.

• However, Ambassador is provided on

individual order basis with 25 day waiting at

an extra cost of Rs 5000 for transport from

Kolhapur.

• Consumer profile is either Defense &

government or taxi drivers / owners.

DEALER’s RESPONSE ON HM’s ATTITUDE

• Very supportive, though aggressive

marketing not practiced.

• Launched a new model (Ambassador Grand)

to augment the existing range of 4 variants.

• Grand is an improved version positioned as

“Elegance and Economy”, with a mileage of

11-16 kmpl.

• Individual order can be placed in 10

different colors and left hand drive also

available.

• HM is not promoting Lancer to the govt. as

Ambassador is the easiest to bullet proof.

• Reasons for failure – Inadequate Advertising

& lack of innovation.

• Users look for the following in while

purchasing a car :

Price

Mileage

Serviceability

Power

COMPETITOR ANALYSIS

QUANTITATIVE•Mileage

•Price

•Capacity

•Sales

•Power

QUALITATIVE•Looks

•Interiors

•Comfort

•Drive quality

•Value for money

AMBASSADOR COMPETES IN 2 SEGMENTS

1) TAXI MARKET :

Competitors – Tata INDICA

2) GOVT VEHICLES

Competitors – Tata INDIGO

Mitsubishi Lancer

AMBAS-

SADOR(diesel)

INDICA-V2(diesel)

INDIGO(diesel)

LANCER(diesel)

Mileage

(Kmpl)

8-11 14 -17 14 -17 13 - 16

Power 50 BHP 53.5 BHP 84 BHP 68 BHP

Capacity 1995 cc 1405 cc 1405 cc 1998 cc

Sales

(units)

8,500 1,35,000 33,300 2,700

Market

Share (%)

0.69 11.1 2.7 0.2

Price

(on road)

4 – 6 lacs 3.6 – 4.2 lacs 6 lacs 8.5 – 9.5

lacs

1. QUANTITATIVE ANALYSIS

AMBAS-

SADOR

INDICA V2

(diesel)INDIGO

(diesel)

LANCER(diesel)

Looks

Interiors

Drive

Quality

Comfort

Value for

Money

2. QUALITATIVE ANALYSIS

STRUCTURE OF SURVEY

Primary research

Sample size 4 (3 users , 1 non user)

Respondent profile

Respondent 1: Sep. C.V. Reddy

Respondent 2: Mr. S.K.Gavde

Respondent 3: Hav. K.K. Pal

Respondent 4: Dr. J.P. Singh

Warm Up Questions

USER : • Price conscious.

• Seek information from family, friends & media

NON USER :• Consider application as the main parameter

• Seek information from family, friends & media

Product Category Knowledge

USER : • Consider transport as main purpose of 4 wheeler

• Have a reasonable knowledge of mid sized cars

• Consider post sales service of Ambassador to be sub average

• Do not wish to buy the car for personal use.

• Not satisfied with the car, find it bulky and require high

maintenance.

• Not very technology conscious.

NON USER : (for Lancer)

• Give importance to transport with status and comfort.

• Well aware of mid sized cars.

• Satisfied with the current brand.

• Aware of technology and consider Ambassador as low tech.

Brand Knowledge

USER : • Brand conscious, but not main concern.

• Not have purchased the brand for personal use.

• Consider other brands for current purpose.

• Consider mileage, looks, maintenance cost, prestige, power to

be important criteria.

NON USER : (for Lancer)• Consider brand as the primary consideration.

• Have good awareness of the brands .

• Consider power as an advantage for Ambassador.

• Consider brand, comfort, performance & power as main

criteria.

Brand Salience(Brand Recall & Recognition)

USER :• High recall as a government vehicle (top of mind) and Taxi.

• Aided brand recognition. Could recognize the product but not

the tagline and could not remember any of the Ambassador

ads.

• No knowledge about various models .

• Identify more with Tata vehicles.

NON USER : (for Lancer)• High recall as a Govt. vehicle (top of mind) and Taxi.

• Aided brand recognition.

Brand Imagery

USER :• Consider it a car for the Govt. and Defense officials.

• Suitable for rough terrain.

• Associate with color black as a symbol of power and prestige.

• Associated with Indian-ness, and have fond past memories

related.

• CELEBRITY ASSOCIATION : Atal Behari Vajpayee, Sonia

Gandhi, Sunny Deol.

• Associate with someone who once had power & has lost it

now (eg Retired Govt Official)

NON USER : • Consider it a car for the Govt. and Defense officials.

• Suitable for rough terrain.

• Associate color white with politicians .

• Associated with ruggedness.

• No fond memories.

• CELEBRITY ASSOCIATION : Dharmendra

Brand JudgmentUSER :• Mediocre environment friendliness.

• Average value for money.

• Large internal space.

• Robust with mediocre reliability.

• Low on energy efficiency and technology usage.

NON USER : (for Lancer)• Mediocre environment friendly.

• Good value for money.

• Large internal space.

• Highly robust and reliable.

• Average on energy efficiency and good on technology

usage.

Brand Feelings

USER :• Social approval, ownership and pride.

• Low trust worthiness, average aesthetic appeal.

• Associate with fun , adventure and fond memories.

• Mediocre connect with brand .

NON USER : (on Lancer)

• High level of ownership and pride.

• Status symbol vehicle.

• High on aesthetic appeal .

(on Ambassador)

• Low on brand appeal and aesthetics.

• No connect with the brand.

Brand Resonance

USER :• First time users but have known the brand for a long time.

• Wish to replace the car when possible.

• Do not wish to recommend it to others (66%).

• Connect with other Ambassador users and discuss it.

NON USER : (for Lancer)

• First time user.

• Do not wish to replace immediately though intend to upgrade

to luxury segment.

• Wish to recommend it to others.

• Connect with other users.

Brand EvaluationUSER :• Consider Ambassador as lagging in segment.

• Consider Tata vehicles as leader in mid car segment.

• Low on mileage, style, design, maneuverability, reliability &

post sales service. High on maintenance cost, comfort,

safety.

• Associate with robustness, power and prestige.

• Vehicle for middle aged and older people from middle income

group.

• Do not have high loyalty with the brand and consider that it

needs radical design changes but do not want the car to

discontinue in market.

NON USER :• Consider Ambassador as lagging in segment .

• Considers Honda City as leader in mid car segment.

• Low on mileage, style, design, maneuverability. High on

maintenance cost, comfort, safety ,reliability and post sales

service.

• Associate with it as a old but safe vehicle.

ASSOCIATIVE NETWORK MEMORY MODEL

AMBASSADOR

Taxi

Prestige

Bulky

Power Stars

Red light

Old

ComfortIndian

ALL BRANDS

Volvo, M&M, FiatTata, Chevrolet, Mitsubishi,

Honda, Ford, Toyota, Maruti,

Hyundai, HM

H MToyotaChevrolet Tata, Honda,

Maruti,

Mitsubishi,

Hyundai

Hyundai, MarutiMitsubishi,

Honda, Tata

KNOWN UNKNOWN

evokedinept inert overlooked

purchasednot purchased

CONSUMER DECISION MAKING PROCESS

CBBE

Pyramid

SALIENCE : High brand recall as govt. vehicle and taxi, aided

brand recognition

Do not wish to recommend this brand

IMAGERY : Tough

& Safe

Old

Govt Vehicle & Taxi

PERFORMANCE :

Spacious

Inadequate Service

Low reliability

FEELINGS :

Pride

Prestige

JUDGEMENT :

Average VFM

RESONANCE:

No strong Loyalty

4. Relationships

What about you and me?

3. Response

What about you?

2. Meaning

What are you?

1. Identity

Who are you?

CONCLUSION

INFERENCES Negative associations –

OLD

LOW TECHNOLOGY

LOW INNOVATION

No major problem with brand awareness

Major lacuna in marketing as high level of

customization available but people not

aware of it.

With the current level of competition in the

market, Ambassador will have to undergo

serious design , styling & technology

changes

The car that your grandpa drove. The car

that you love because of the old-world

charm it offers. The good 'ol Amby, as it

is lovingly called, offers a lot of space

and amazing comfort. There is nothing

really to talk about beyond this. So,

that's it. A very spacious, comfortable

and rugged car which we would not

recommend.