Professional Documents
Culture Documents
Comparative Analysis of Marketing Strategies of Automobile Companies in India
Comparative Analysis of Marketing Strategies of Automobile Companies in India
Companies in India.
Title:
A Comparative Analysis of the Marketing Strategies of Automobile
Companies in India.
The firms namely:
Maruti Suzuki
Hyundai
Mahindra & Mahindra
Toyota
Keywords:
Marketing Strategy, Strategic Management, Brand Position, Brand
Equity, Marketing, Advertising, Product, Price, Distribution,
Promotion
ABID SHAIKH
Page 1
Abstract:
In todays competitive era the word Strategy is very crucial for
all business organizations. Presently organizations started
realizing that customer centric and aggressive marketing
strategies plays vital role to become successful leaders. Though
globalization has opened the doors of opportunities for all, the
market is still crowded with some unknown risks and a lot of
competition. Because of this competition, a marketing strategy
must aim at being unique, differential-creating and advantagecreating.
Therefore, at the heart of any business strategy is a marketing
strategy. All the marketing strategies are based on the right mix
of 4Ps, only those can be ahead which have the right marketing
strategies because it increases the chances of better market
penetration with proper utilization of resources. Marketing
strategies include all basic and long term activities in the field of
marketing that deal with the analysis of the strategic initial
situation of a company and formulation, evaluation and selection
of market-oriented strategies and therefore contribute to the
goals of the company and its marketing objectives.
ABID SHAIKH
Page 2
ABID SHAIKH
Page 3
Page 4
Page 5
With the festival season coming up, the Indian auto sector will see
a rise in demand which is expected to bring in major growth. An
auto dealer survey by firm UBS suggested that the Indian auto
industry, riding on trends like the upcoming festival season and
decline in fuel price, will observe a 12 per cent y-o-y growth in
FY15. Also, keeping up with international trends, there is expected
to be a surge in the number of hybrid vehicles in the Indian auto
sector in the years to come.
ABID SHAIKH
Page 6
Introduction:
The automobile industry is facing new and pressing challenges.
Globalization, individualization, digitalization and increasing
competition are pressing the face of the industry. In addition,
increasing safety requirements and voluntary environmental
commitments by the automotive industry have also contributed to
the changes ahead. Size is no longer a guarantee of success. Only
those companies that find new ways to create value will prosper
in the future. Based on this perspective, some strategic
methodology is needed which would enable them to transform
themselves for the competition.
The global automotive industry is subjected to a range of factors
that are increasing complexity and influencing the economic
options available to the automobile manufacturers. The majority
of these factors interacts with one another and has strong
interdependencies. However, some of these factors are marketinduced and consequently, cannot be influenced directly by the
automobile manufacturers. These factors include:
Globalization, regionalization and market convergence Due
to the effects of liberalization, national markets are
increasingly getting globalized. This gives companies a
chance to expand to new markets, but also increases the
threat of new entrants or increased competition in traditional
markets.
Increasingly diversified consumer aggregate patterns of
behaviour Consumers are no longer accepting standardized
products that satisfy their individual requirements. Target
groups thus have to be downsized by companies so
customers will be attracted by the products offered.
However, because of the increased global competition with a
stronger focus on price and not on brand loyalty, consumers
generally do not reward companies for their more
ABID SHAIKH
Page 7
Development
departments are not just overburdened by the complexity of
digital technology, but also by the shortening of product
lifecycles. Another aspect is the increasing number of
parallel development projects since companies develop more
and more niche models for special target groups. This
certainly requires the use of new development techniques
such as virtual reality. For example, this technique enabled
ABID SHAIKH
Page 8
ABID SHAIKH
Page 9
Objectives:
To review the progress of Indian Automobile
(Passenger vehicles)
To understand the marketing strategies of:
Maruti Suzuki
Hyundai
Mahindra & Mahindra
Toyota
To assess their competitive strength.
ABID SHAIKH
Page 10
sector
Literature Review:
K.S. Venugopal Rao (1996) [1] had conducted a study of marketing
strategies for emerging markets. The world economic order is
changing and changing very fast. Emerging markets are
characterized by some unique features which can be applied to all
situations like mass dispersed markets; penetration is abysmally
low in key product categories. Emergence of information
technology, high-level of conspicuous consumption, antiquated
rules and procedures, shift from a protectionist regime to a free
market economy, a young and vibrant services economy are
characteristics of the emerging markets in India.
Yaseer Maharoff (2000) [2] has illustrated some marketing
strategies for firms in emerging markets. Despite the billions of
untapped consumers in the worlds emerging markets,
multinational firms often flounder in areas such as Eastern
Europe, China, India and Latin America. Corporations are quickly
realizing that the local consumers do not reciprocate with
enthusiasm. While failure is often attributed to market difficulties,
more often it can be traced back to the multinationals inability to
recognize the fact that emerging markets are different. Marketing
i.e., those that rely on product innovation, fine segmentation, high
margins and global brands do not necessarily work in emerging
economies.
According to Ahmadi, R & Yang (2006) [3] marketing strategy
encompasses the strategy involved in the management of a given
product. A given firm may hold numerous products in the
marketplace, spanning numerous and sometimes wholly
unrelated industries. Accordingly, a plan is required in order to
effectively manage such products. Evidently, a company needs to
weigh up and ascertain how to utilize its finite resources. For
example, a start-up car manufacturing firm would face little
success should it attempt to rival Toyota, Ford, Nissan, Chevrolet,
ABID SHAIKH
Page 11
ABID SHAIKH
Page 12
ABID SHAIKH
Page 13
ABID SHAIKH
Page 14
Research Methodology:
This comprehensive project shall be purely based on secondary
data and through that, it will try to study the different strategies
of four major players in the Indian Automobile Industry (Passenger
vehicles), namely Maruti Suzuki, Hyundai, Mahindra & Mahindra
and Toyota which have over 75 percent of the entire market share
of Indian passenger vehicles market. The purpose of the project is
to study their network of dealers and service centres, their
effective promotional techniques and their customer relationship
management which is the mainstay of their product line-up as
well. The secondary research shall be based upon data collected
from sources such as magazines, news articles, journals, blogs
and others. They shall be effectively studied to draw conclusions
about the objectives & to frame results and also to understand it
as
an
industry
as
a
whole.
ABID SHAIKH
Page 15
References:
1. K.S. Venugopal Rao (1996). Product and Brand Building
Strategies A study of marketing strategies for emerging
markets. IOSR journals.
2. Yaseer Maharoff (2000). Product and Brand Building
Strategies A Study of marketing strategies for emerging
markets. IOSR journals.
3. Ahmadi, R & Yang (2006). Parallel imports: Challenges from
unauthorized distribution channels. Handbook of Research
on Strategy and Foresight. Google Books.
4. Bergen, M, Heide, J.B. (2000). Implications of switching or
replacing products or suppliers. IJRM Volume-30 #4 (2013)
5. Cavusgil, S.T. & Sikora, E. (2000). Factors that affect pricing
strategies
for
international
firms.
papers.ssrn.com/SSRN_ID1922867
6. Cespedes, F.V., Corey, R.E., & Rangan, K. (1996). Going to
Market: Distribution systems for Industrial Products. Harvard
Business School Press.
7. Kowske, Brenda, J., Herman, Anne E., & Wiley, Jack W.
(2010).
Exploring
Leadership
and
Organizational
Effectiveness. Kenexa Research Institute WorkTrends Report.
8. Bucklin, L.P. (2008). Competition and Evolution in the
Distributive trades. Prentice Hall Publication.
9. Corey, R.E., & Rangan, K. (2006). Business Marketing
Strategy: Cases, Concepts and Applications. McGraw
Hill/Irwin Professional. Irwin Professional Publishing.
10.
Clarke III, I. & Owens, M. (2002). Research in Consumer
Behaviour. Volume 12. Google Books.
ABID SHAIKH
Page 16
11.
ABID SHAIKH
Page 17
Bibliography:
Aaker, David and Joachimsthaler, E. (1999). The Lure of
Global branding strategy. Harvard Business Review
(November-December): 137-144.
Agarwal, Madhu (1994). Review of a 40-year debate in
international
advertising
strategy:
Practitioner
and
Academician perspectives to the standardization/adaptation
issue. International Marketing Review 12(1): 26-48.
Boddewyn, Joan J., Soehl, R. and Picard, J. (1986).
Standardization of International Marketing. Business
Horizons 29(November-December): 69-75.
Ettlie, John (2001). Three takes on
Manufacturing and Production (June).
Mercer Management Consulting/
Automobiltechnologie (2010)
NPD.
Marco
Automotive
Ehmer
(2002).
ABID SHAIKH
Page 18
Title
Abstract
Introduction
Literature Review
Industry Overview
Objectives
Market Description
SWOT Analysis
SWOT Explanation
Marketing Strategy(Maruti Suzuki, Hyundai, Mahindra &
Mahindra, Toyota)
Positioning
Product Strategy
Pricing Strategy
Distribution Strategy
Marketing Communication Strategy
Media Selection
Analysis of strategies
Results
Discussions
Conclusion
References
Bibliography
ABID SHAIKH
Page 19
ABID SHAIKH
Page 20
ABID SHAIKH
Page 21