mabdassignment_sumitra iyengar
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TASMAC GBPL PROGRAMME
Marketing Analysis for Business Decisions(MABD)
WRITTEN ASSAIGNMENT GBPL
TRIMESTER II (Part Time) June Batch 2011
Submitted by: Sumitra Iyengar11 December 2011
Aim: To Showcase Our Understanding of marketing concepts for two competing brands in
automobile industry and identify the customer segment targeted by the chosen brands by
demographics and socio economic factors. Compare the marketing mix elements of the two
brands, analyze and bring out points of parity and differentiations.
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MABD MID-TERM ASSIGNMENT
Title : Business analysis of the Maruti & Hyundai
Subject : Marketing Analysis for Business Decisions
(MABD)
Level / Trimester : 1/1
Programme : GPBL (Part Time)
Subject Tutor :
Name of Student : Sumitra Iyengar
Students Registration Number :
Date of Submission : 11th
December 2011
Word Count : 2200 words (Excluding tables, figures, cover
page, charts, references & checklist)
Word Limit : 2000 words
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Assignment checklist
Student NameSumitra Iyengar
Registration Number
Date for submission of the Assignment. 11 12 - 2011
The cover page is in the correct format as indicated in the Guidelines
of writing AssignmentsYes
Have done a complete spell check of the assignment Yes
Have done a complete word count for the assignment Yes
Does the table of contents include numbers? Yes
Are the pages numbered correctly? Yes
Are the figures numbered correctly? Yes
Are the tables / charts numbered correctly? Yes
Are the captions for the tables and charts proper? Yes
Are the references / bibliography listed in the assignment? Yes
Are the references cited adequately in the text? Yes
Are the references in the text in the proper format as indicated in the
Guidelines to writing AssignmentsYes
A soft copy of the assignment has been enclosed with the assignment Yes
All material written in this assignment is my own and I have not used any material,
content or information of others claiming them to be mine. Wherever materials have been
used, proper citation has been done in the text. I am fully aware of the rules and regulations
governing the plagiarism applicable to the dissertation and should at any point of time my work
is suspected / investigated and established to have plagiarized some other work. I am aware of
the consequences if such cases are detected and have read the Student Handbook in detail.
Signature of the student Date:
(Sumitra Iyengar)
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Maruti 800 the magnificence of the middle class
Santro Xing a small car with optimized luxury again for the middle class
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Table of contents
1. Goal of the assignment62. An Overview of the Indian Automobile Industry..6
3. Maruti Suzuki India Limited....6 4. Hyundai Motor India Limited..7 5.
SWOT analysis of Maruti Suzuki...7 6. SWOT analysis of Hyundai.8
7. Value proposition of Maruti Suzuki8 8. Value proposition of Hyundai9
9. Market places, spaces & Meta Markets11 10.
Segmentation..11
11.Positioning & Branding.12 12.POPs & PODs12
13.Customer value.13 14.Appendix I-References.14
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1. Goals of this assignmenta. To study the two competing brands of automobile industry in Indiab. Indentify, compare, the benefits, total cost to the customerc. Compare the customer value created by each of the brands
2. An Overview of the Indian Automobile IndustryThe government of India announced economic liberalization in 1991 which resulted in
incredible growth especially is automotive industry. Revolutionized competence & unperturbed
restrictions brought sustained growth. Vigorous economic escalation provided an
unprecedented highway for the expansion of inland as well as global markets.
The industry has encouraged foreign investments global leaders in this arena, exceeding
one million passenger cars alone are sold in India in a year. Indian automobile pioneers such as
Tata Motors, Maruti Suzuki and Mahindra and Mahindra are built their capabilities to compete
& excel in line with global automotive standards.
This is one of the premier industries which encompass all steps of mankind as for as
revenue generation is concerned. The vast spectrum comprises of manufacturers, new & used
car dealers & buyers, financing companies, insurance companies, spare part dealers, service
shops, auto magazines, news papers, websites, TV channels the list goes on.
3. Maruti Suzuki India Limited
This revolutionary auto market leader Maruti Udyog Limited now has a new name
"Maruti Suzuki India Limited". in the new name, "Maruti Suzuki" continues to have the
principal position as the largest manufacturer of passenger cars in India. This is one of the
strongest corporate brands; the name generations has grown up with and features prominently
on the Company's products, services and its sales and service network across the country.
Models offered are Maruti 800, Alto, Alto K10, Omni, Gypsy, Estilo, WagonR, Eeco,
A-Star, Ritz, Swift, SX4, DZire, Grand Vitara n& Kizashi. The service network is spread across
country & the most reliable with 802 centers in 555 cities. Added to this there are 2740
workshops spread over 1335 small cities & towns.
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4. Hyundai Motor India Limited
Hyundai Motor India Limited (HMIL) is the second largest and manufacturer in India..
Currently the company markets more than 30 variants of passenger cars in six segments. Some
popular brands of Hyundai are Santroi10, i20, Getz, Accent, Elantra, Sonata Embera and Tucson.
The total capacity of this company is 600, 000 units per annum. To cater to the ever
growing demands & considering the economic growth of the nation, HLIL has established
with315 dealers & 630 service stations across the country.
5. SWOT analysis of Maruti Suzuki
Strength: A house hold name known for giving a common man a luxury of enjoying the
motoring, the number one strength is the service availability across the nation & the costs of
spares means overall operating economy for the customer is unparallel which comprises of
comparatively good fuel efficiency. This brand enjoys a market share of 47% which makes
viable to add customer value.
Weaknesses: In majority of the segments this brand has average styling & lack luxury feeling.
At the higher segment from sedan to SUV, limited variants are available.
Opportunities: As the principles Suzuki-Japan is preparing to develop a JV with German auto
leader Volkswagen to reach global market, this state of affairs may generate great deal of new-
fangled prospects for Maruti Suzuki.
Threats:. If we compare the data from the year 2010, there is an decline in market share which
accounts for 6%, market share as off today stands at 47%. First time in its history of 25 years,
the market share has plunge below 50% level, this loss seen as linear in nature & is due to
direct competition from other auto makers such as Hyundai, Ford GM.
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6. SWOT analysis of Hyundai
Strength: Hyundai has 300 dealers & 112 sales outlets across the nation& has established itself
as a foremost player in the industry. Hyundai is the biggest car exporter and the second largest
car maker with offering a value and resilient assertion to the clientele & second best sought out
brand. The key offering is affordable luxury added through excellent engineering.
Hyundai has signed MOU with financial institutions such as Bank of India, UCO bank,
Allahabad bank ING & Vijaya bank. This strategy is to facilitate financial services to the
customers.
Weaknesses: As Hyundai offers moderate luxury cars, the key input to produce such cars is theraw materials & supply of finished parts from the suppliers. As the market prices behave it has a
greater impact on the companys financials. This is the number one risk the organization is
facing; the second risk is the foreign exchange rates which affects components import & car
export.
Opportunities: As Hyundai is planning to introduce new cars in each of the segments, it can
position itself to compete with domestic as well as international competition. Indian auto
industry is one of the largest & fastest growing in the globe, India is the 7th
largest passenger
car producer also which accounts to 3.7 million units in the year 2010. The forecast t numbers
are 5 million in 2015 & 9 million by 2020.
Threats: Given the incredible growth & forecasts our country & development of road
infrastructure, the number one threat is to retain the position two in the industry & the new
competition from the new entrants is the particular segments such as Volkswagen & Ford.
Financial options available for the buyer as the wide range of cars availability in the
country is the second largest threat Hyundai has to consider, cheap choices such as Tata Nano
is good example.
7. Value proposition of Maruti Suzuki
These cars have the lowest cost of ownership in comparison any other brands in any
particular segment. The cost of operation is another critical angle where these cars edge out
others. Known for best quality enjoys the reputation of loyalty of customer by centrally
controlling the prices of spares & consumables.
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JD Power APEAL conducted a survey in 2004, which ranked WagonR as #1 is premium
compact car. This study covered 8 critical parameters such as design, performance & layout.
Buying & driving these cars are of great delight, across the nation 307 showrooms in 189 cities
backed-up by 6000 trained sales force, and to add the strong customer care. JD Power CSI
reports that 92% car owners have expressed either they are happy or satisfied during a survey
conducted in the year 2004 that is the result of robust service net work & spares availability
across. Low cost of ownership where Maruti cars edge out all the completion across the
segments, this clearly depicted in the chart below.
8. Value proposition of Hyundai: Hyundai with high quality immense reliability are a cut above
by introducing unrivaled product warranty. The five years extended product warranty
alternatively till the top limit of one lakh kilometers, assures the buyer giving sense of protected
interest for the life time of the car, which covers major mechanical & electrical parts &
assemblies. This incomparable value is excellent motive choose the product from Hyundai.
Passenger Safety is the imperative for unsurpassed quality vehicles through which the
buyer gets an assurance of security while enjoying the motoring. Keeping this in mind Hyundaihas featured unique systems such as Electronic Brake-Force Distribution (EDB), Vehicle Dynamic
Control (VDC) &Anti Braking System (ABS). Such life safety technologies has been an integral
parts of all Hyundai cars. Added to that the programs on crash testing & emergency
performance which have been synonymous with manufacturing these cars guarantee the
buyer.
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Hyundai offers 24X7 breakdown services which exceptional in compare with close
competitors, moreover for electrical & mechanical troubles arising out of accidents support
comes free of cost. The picture below depicts the growth of Hyundai over the years with in the
country as well as exports.
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9. Market places, spaces & Meta markets
6.1 Maruti Suzuki: For the just-ended fiscal year, Maruti Suzuki's total sales increased 25% fromthe previous year to 1.27 million vehicles. Exports fell 6.3% to 138,266 units. The showrooms
across the country in every tier3, 2 & 1 cities with the unmatched service capability, positioned
themselves as very near to every customer. Any car buyer will have to spend the most
minimum time to find the details of each of the models & their features & availability.
6.2 Hyundai: For the just-ended fiscal year, Hyundais total sales increased 7.8% by taking the
total sales to 603, 819 units in comparison with the previous year which was 559880. The
overall growth of domestic sales by 23.1% over 2009. Exports numbers are 247102 units against
270017 units for the previous year. There is negative growth of 8.5%. With their state of the art
& well spread over network of showrooms, and uncompromising customer care supported by
highly committed marketing team, Hyundai has carved a niche for its brand value in the urban
& suburban domestic markets. Looking at the consistency in the export department, the
aggressiveness & appetite to expand their foot print beyond the geography of India must be
commendable.
10. Segmentation: The automobile industry is the undisputed evergreen market in the world.
Hence it has got its own segmentation with respect to Premium, luxury, economy & commercialetc.
10.1 Maruti Suzuki: Maruti Suzuki has wide variety of range of segmentation in the domestic
Indian market. The company presents over 150 variants out of 16 different models. WagonR
adjudged as the family car of the decade, for which the company has made a great haul of
capital investment last year. Maruti Suzuki is known for its economic features stands out in
every segment of the passenger car however the SUV segment demands attention on top
priority.
10.2 Hyundai: Hyundai which has a presence in all the segments of the passenger car, and has
given a special touch of luxury in each of its model. This has given the car maker an edge in the
competition. They wanted to be unique in the mid segment hence the i20, as a hatch back
midsized matchless model stands out of the common multitude.
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11. Positioning & Branding
11.1 Maruti Suzuki: this Company mainly focusing on variety of hatchback cars & targets
middle income & who are first time buyers. These buyers top priority is low cost of ownership
& to just meet the requirement of a simple family. Off late, the company strategy pacing
towards sedans in SEC A.
The latest excitement is Kizazhi which positioned as sports sedan, such venture is first
of its kind for Maruti Suzuki, which is in to SECA category with plush luxury.
Well planned & structured brand building of the company, has made Maruti Suzuki over
all image of economic as well as luxury brand thus an all rounder.
11.2 Hyundai: This Company of course to give tiff competition, has come out with hatch backvariants adding plush interiors & specious design which have this brand a cut above the rest.
Knows for adopting well calculated risks, Hyundai positioned in all segments with models such
Santro, Getz, Accent etc.
The brand building saga of Hyundai is really commendable; the great strengths are
product performance & quality, which has resulted as value for money for the customer.
Hyundai regularly revisits the product life cycle using variants & keeps in line with the prospect
of buyer. Thus be in the minds of the mass, which facilitates the most powerful word of mouth
branding & marketing.
12. POPs & PODs
POPs:
12.1 Maruti Suzuki:
Category POP: Functionality, air conditioning, music system with latest features & security
systems.
Competitive POP: Simple & economic design, cost of spares parts & availability of service
12.2 Hyundai:
Category POP: Functionality, air conditioning, music system with latest features & security
systems.
Competitive POP: Life safety systems, air bags, Powerwindows, plush interiors & exteriors.
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PODs:
12.3 Maruti Suzuki: Simplicity, economics & basic requirement of a family are the key points of
this auto maker. Additionally the after sales service & availability of spares are key
differentiators. Association with industry service partners such as insurance, banks etc is a great
comfort for the customer.
12.4 Hyundai : Luxury, performance are the key contributors for Hyundais success. Life safety
systems & 24x7 customer care service are added feathers the cap, which gives experience of
taken-care throughout the ownership for the product.
13. Customer value
13.1 Maruti Suzuki: Has signed MOUs with number of banks & insurance agencie. Through its
used car resale wing Maruti True value, has built an image of taken care throughout the life
cycle of the product.
13.2 Hyundai: Also has tied up with various financial institutions & insurance companies for the
great comfort for the buyer. 24x7 customer care is the most exceptional feature of the
company.
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14. Appendix I-References
http://www.hyundai.com/in
http://www.marutisuzuki.com
http://www.timesof india.com
http://indianautosblog.com
http://www.carazoo.com
http://www.hyundai.com/inhttp://www.hyundai.com/inhttp://www.marutisuzuki.com/http://www.marutisuzuki.com/http://indianautosblog.com/http://indianautosblog.com/http://www.carazoo.com/http://www.carazoo.com/http://www.carazoo.com/http://indianautosblog.com/http://www.marutisuzuki.com/http://www.hyundai.com/in
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