Study of Promotional

Strategies for Cars in

India

Table of Contents
1. Objective
2. Scope of Work
3. Rationale
4. Theoretical Framework and Review of Literature
i.

Promotional Strategy

ii.

Promotional Mix

iii.

Message and Media Strategy

iv.

Communication Model- AIDA

5. Promotion Process For Cars

i.

Selecting the target market

ii.

Product and Brand Positioning

iii.

Promotional Decisions

iv.

Advertising

v.

Direct Marketing

vi.

Interactive/Interactive Marketing

vii.

Sales Promotion

viii.

Publicity/Public Relation

ix.

Personal Selling

6. Ford Fiesta and its Promotions

i.

Target Market

ii.

Adopting offer to suit target segment

iii.

Market Competition

iv.

Strategic Promotion of Ford

7. Questionnaire
8. Analyzed Survey Report of the Questionnaire
9. SWOT Analysis
10. SWOT Analysis of Ford Fiesta
11. Conclusion
12. Bibliography

Chapter 1
Introduction

Objective
To study and analyze the elements of Promotional Strategies.
Study and analysis of promotional strategies of Ford India for its product Ford
Fiesta.
Study the customer response regarding the promotions of cars in India.

Scope of the Project

Study the basic aspects of Promotional Strategies such as Sales Promotion,
Personal Selling, Advertising and Publicity.
Studying the customer response regarding promotions of cars in India through
a questionnaire.
Study the promotional strategies of Ford Fiesta with all the tools of promotion.
Analyze and interpret the responses by SWOT analysis.

Data Collection and Analysis

Secondary data collection from the various car information websites,
newspapers, magazines, etc.
Primary data collected from a questionnaire designed to target the customer
regarding the promotions of cars in India.
Analysis of promotional strategies by SWOT analysis by evaluating the
Strengths, Weaknesses, Opportunities and Threats of Ford Fiesta by analyzing
the responses through the questionnaire.

Rationale
One of the fastest growing industries in the world is automobile industry. This
automobile industry even has its influence on the Indian market. There is an
emergence of global automobile players in India, such as Ford, for the past decade
and each player have their different promotional strategies to interact customers. This
project is an effort to understand these promotional strategies adopted by different
automobile companies in India. This project concerns with the study of choosing the
6

most appropriate mix of advertising, sales promotion, personal selling and publicity
for cars in India with a detailed study of promotional strategy of Ford Fiesta. This
project also targets the customers in India regarding the promotions of cars in India
by reviewing and interpreting a questionnaire.

Chapter 2
Literature Survey

Theoretical Framework and Review of Literature

Promotional Strategy
A successful product or service means nothing unless the benefit of such a service can
be communicated clearly to the target market. An organizations promotional strategy
can consist of:

Advertising: Is any non personal paid form of communication using any form of mass
media.

Public relations: Involves developing positive relationships with the organization

media public. The art of good public relations is not only to obtain favorable publicity
within the media, but it is also involves being able to handle successfully negative
attention.

Sales promotion: Commonly used to obtain an increase in sales short term. It could
involve using money off coupons or special offers.

Personal selling: Selling a product service one to one.

Direct Mail: Is the sending of publicity material to a named person within an

organization. There has been a massive growth in direct mail campaigns over the last
5 years. Spending on direct mail now amounts to 18 bn a year representing 11.8% of
advertising expenditure (Source: Royal Mail 2000). Organizations can pay thousands
of pounds for databases, which contain names and addresses of potential customers.

Direct mail allows an organization to use their resources more effectively by allowing
them to send publicity material to a named person within their target segment. By
personalizing advertising, response rates increase thus increasing the chance of
improving sales. Listed below are links to organization whose business involves direct
mail.

Promotional Mix

Message and Media Strategy

An effective communication campaign should comprise of a well thought out message
strategy. What message are you trying to put across to your target audience? How will
you deliver that message? Will it be through the appropriate use of branding? Logos
or slogan design? The message should reinforce the benefit of the product and should
also help the company in developing the positioning strategy of the product.
Companies with effective message strategies include:

Nike: Just do it.

Honda City: The race lies within.

Media strategy refers to how the organization is going to deliver their message. What
aspects of the promotional mix will the company use to deliver their message strategy.
Where will they promote? Clearly the company must take into account the readership
and general behavior of their target audience before they select their media strategy.
What newspapers does their target market read? What TV programmes do they
watch? Effective targeting of their media campaign could save the company on
valuable financial resources.

Communication Model- AIDA

10

AIDA is a communication model which can be used by firms to aid them in selling
their product or services. AIDA is an Acronym for Attention, Interest, Desire, and
Action. When a product is launched the first goal is to grab attention. Think, how can
an organization use it skills to do this? Use well-known personalities to sell products?
Once you grab attention how can you hold Interest, through promoting features,
clearly stating the benefit the product has to offer? The third stage is desire, how can
you make the product desirable to the consumer? By demonstrating it? The final stage
is the purchase action; if the company has been successful with its strategy then the
target customer should purchase the product.

Internet Promotion
The development of the World Wide Web has changed the business environment
forever. Dot com fever has taken the industry and stock markets by storm. The ecommerce revolution promises to deliver a more efficient way of conducting business.
Shoppers can now purchase from the comfort of their home 24 hours a day 7 days a
week.

11

Owning a website is a now a crucial ingredient to the marketing mix strategy of an

organization. Consumers can now obtain instant information on products or services
to aid them in their crucial purchase decision. Sony Japan took pre-orders of their
popular Play Station 2 console over the net, which topped a 1 million after a few
days, European football stars are now issuing press releases over the web with the sites
registered under their own names. Hit rates are phenomenal.

Advertisers have now moved their money over to the internet as customers are on
average spending more time online then watching TV. Popular ways to advertise seem
to be with banners and pop ups.

Promotion Process for Cars

Selecting the Target Market

To say that target market selection is a part of promotional/marketing strategy

development is just stating the obvious. Marketing targeting simply means choosing
ones target market. It needs to be clarified at the outset that market targeting is not
synonymous with market segmentation. Segmentation is actually tee prelude to target
market selection. One has to carry out several tasks besides segmentation before
choosing the target market. Through segmentation, a firm divides the market into
many segments. But all these segments need not form its target market. Target market
signifies only those segments that it wants to adopt as its market. A selection is thus
involved in it.
12

Marketing segmentation is a process that throws up not one but several market
segments. There may be segments that are sizeable and the ones that are not so
sizeable. There may be segments assuring immediate profits and the ones that call for
heavy investments in market development. There may also be segments that show
great potential, but display tough barriers to entry. As such, the question, which
segment/segments, the firm should select as its target market, assumes crucial
importance.
Markets can be segmented using several relevant bases. For example, demographic
characteristics of consumers, such as age, sex, income/purchasing capacity, education
level etc, form one base for segmentation. Geographic characteristics constitute
another; and buying behavior of the consumers forms yet another base. The various
types of segmentations are Geographic segmentation, Demographic segmentation,
Psychographic segmentation, etc.

Product Positioning and Brand Positioning

It is essential to understand the relationship between products positioning and brand
positioning. Though in discussions, the two terms are synonymously and
interchangeable used, technically they are different.
Product positioning denotes the specific product category/product class in which the
given product is opting to compete. And brand positioning denotes the positioning of
the brand viz-a viz the competing brands in the chosen product category.
It is evident that for any product, before entering the market it has to sequentially
carry out the two exercises, product positioning and brand positioning. In the first

13

step, the product category where the new entrant should enter and compete, i.e.
against what all products it has to compete, has to be decided. In this step, it is the
broad function that the product is trying to serve that matters. This choice of product
category will decide the nature of the competition the product is going to face. Once
product category positioning is decided, the position for the new entrant against
competing brands in the chosen product category has to be analyzed and fixed.

Issues in Brand Positioning

In deciding the brand positioning, the issues are:
Which are the competing brands in the chosen product category?
What are the unique claims/strengths of the various brands?
What position do they enjoy in consumers evaluation and perception?
What is the most favored position? And yet vacant?
Can the new brand claim the needed distinction and take the position and
satisfy the need?

Promotional Decisions
Promotion has been defined as the coordination of all seller initiated efforts to set up
channels of information and persuasion in order to sell goods and services or promote
an idea. While implicit communication occurs through the various elements of the
marketing mix, most of an organizations communications with the market. The basic
tools used to accomplish an organizations communication objectives are often
referred to as the promotional mix.

14

Advertising
Advertising is defined as any paid form of non personal communication about an
organization, product, service, or idea by an identified sponsor. The paid aspect of this
definition reflects the fact that the space or time for an advertising message generally
must be bought. An occasional exception to this is the public service announcement,
whose advertising space or time is donated by the media.
Advertising is the best-known and most widely discussed form of promotion, probably
because of its pervasiveness. It is also very important promotional tool, particularly for
companies, whose products and services are targeted at mass consumer markets. It is a
very cost-effective method for communicating with large audiences. It can be used to
create brand images and symbolic appeals for a company or brand.

Direct Marketing
One of the fastest-growing sectors of the U.S. economy is direct marketing, in which
organizations communicate directly with target customers to generate a response and
a transaction. It has become such an integral part of the IMC program of many
organizations and often involves separate objectives, budgets, and strategies; we view
direct marketing as a component of the promotional mix.
15

Direct Marketing is much more than direct mail and mail order catalogs. It involves a
variety of activities, including database management, direct selling, telemarketing and
direct response ads through direct mail, the Internet, and various broadcast and print
media.
One of the major tools of direct marketing is direct response advertising, whereby a
product is promoted through an ad that encourages the consumer to purchase directly
from the manufacturer.

Interactive/Internet Marketing
Interactive media allow for the back-and-forth flow of information whereby users can
participate in and modify the form and content of the information they receive in real
time. Unlike traditional forms of marketing communications such as advertising,
which are one-way in nature, the new media allow users to perform a variety of
functions such as receive and alter information and images, make inquiries, respond
to questions and of course make purchases. In addition to the Internet, other forms of
interactive media include CDROMs, Kiosks, and interactive television.

Sales Promotion
The next variable in the promotional mix is sales promotion, which is generally
defined as those marketing activities that provide extra value or incentives to the sales
force, the distributors, or the ultimate consumer and can stimulate immediate sales,

16

sales promotion is generally broken into Consumer-oriented and Trade-oriented

activities.
Consumer-oriented sales promotion is targeted to the ultimate user of a product or
service and includes couponing, sampling, premiums, rebates, contests, sweepstakes,
and various point-of-purchase materials.
Trade-oriented sales promotions are targeted towards marketing intermediaries such
as wholesalers, distributors and retailers.
Effective Sales Promotion
Sales promotion consists of diverse collection of incentive tools mostly short term,
designed to stimulate quicker and greater purchase of particular products of services
by the consumer. Sales promotion is the only method that makes use of incentives to
complete the push-pull promotional strategy of motivating the sale force, the dealer
and the consumer in transacting a sale.
Price-Off Offers
Price-off offers refers to offering the product at lower than the normal price. This
encourages immediate sales, attracts non-users, induces product trail and counters
competition.
Premium
Premium refers to the offer of an article of merchandise as an incentive in or to sell
the product.
Coupons
In order to encourage product trail, stimulate re-purchase rate and build loyalty
through news papers.

17

Dealer stock display context

It is a type of point of purchase advertising which uses the show windows of the dealer
for providing exposure to the sponsors products. Dealer participating enthusiastically
and creatively are awarded.

Publicity/ Public Relations

Publicity refers to non personal communications regarding an organization, product,
service, or idea not directly paid for or run under identified sponsorship. It usually
comes in the form of a news story, editorial or announcement about an organization
and its products and services. Like advertising, publicity is not directly paid for by the
company.
An advantage of publicity over other forms of promotion is its credibility. Another
advantage of publicity is its low cost, since the company is not paying its time or space
in a mass medium such as TV, radio or newspapers.
Public relations are defined as the management function which evaluates public
attitudes, identifies the policies and procedures of an individual or organization with
the public interests and executes a program of action to earn public understanding
and acceptance. Public relations generally have a broader objective than publicity, as
its purpose is to establish and maintain a positive image of the company among its
various publics.

Personal Selling

18

It is a form of person-to-person communication in which a seller attempts to assist and

persuade prospective buyers to purchase the companys product or service or to act on
an idea. Unlike advertising, personal selling involves direct contact between buyer and
seller, either face-to-face or through some form of telecommunications such as
telephone sales. Personal selling involves more immediate and precise feedback
because the impact of the sales presentation can generally be assessed from the
customers reactions.

FORD FIESTA
About Ford
The modern Ford India began production in 1998, although the roots trace back to
1907 when the Model A was launched. Its manufacturing facilities are in Maraimalai
Nagar near Chennai. Ford India began production in 1926, but was shut down in
1954. Production began again with the joint venture Mahindra Ford India, Limited
(MIFL) in 1995, a 50-50 venture with Mahindra & Mahindra Limited. Ford increased
its interest to 72% in 1998 and renamed the company Ford India Limited.

19

The first model was the Ford Escort, which was later replaced by locally produced
Ford Ikon in 2001. It has since added Fusion, Fiesta, Mondeo, Endeavour and
Endeavour Thunder+ to its product line.
Key Products
Ford Ikon
Ford Fiesta
Ford Fusion
Ford Endeavour

Ford Fiesta

While Fiesta continued to impress people all over the globe, Ford had different plans
for the Indian market. Ford engineers in Melbourne, Australia, designed a car from
scratch specifically for the Indian market and badged it as Fiesta (2005).

This sedan was sold with two engine options, 1.4 Diesel (TDCI) and 1.4/1.6 Petrol.
The 1.6 Petrol version was marketed for its acceleration and performance to keep it
competitive with other car makers. The Diesel version saw much success as its main
20

selling point was the fuel efficiency. Ford test delivered a whopping 30+Km/L Since
cost of fuel was rising this was the right time for Ford to showcase its turbocharged
direct-injection diesel technology. Ford claims to have sold more diesel variants than
its petrol ones.

Recently Ford gave some minor facial uplift to the well sold Fiesta and also reworked
on safety features. Dual Airbag was included because the competitors the Suzuki SX4
and Hyundai Verna had this and other safety features.

Ford Fiesta is engineered specifically to adapt the demanding Indian road conditions.
It is a mid-sized car having a perfect combination of style and solidity. The car has
high stability and exceptional driving comfort. Structurally engineered, Ford Fiesta
withstands severe collisions. It is loaded with state-of-the art safety features.

Model Variants

Fiesta 1.6 Duratec ZXI

Fiesta Duratec 1.6 SXI
Fiesta 1.6 S
Fiesta 1.4 Duratorq Exi
Fiesta Duratec 1.6 EXI (Pace Petrol and Diet Diesel)
21

Fiesta Duratorq 1.4 Zxi

Fiesta Duratorq 1.4 SXI

Color Variants

Flare
Jewel Violet
Panther Black
Diamond White
Paprika Red
Vitro
Moondust Silver
Platinum

Promotions of FORD FIESTA

Catch Phrase

Go Fida!

22

Quote Unquote

"Premium aspirational car in the mid-size segment..."

- Arvind Mathew, Managing Director, Ford India

Price Tag

Fiesta Duratec EXI

Fiesta 1.6 Duratec ZXI
Fiesta Duratec 1.6 SXI
Fiesta 1.4 TDCi ZXI

Rs.5.75 Lakhs
Rs.6.41 Lakhs
Rs.7.01 Lakhs
Rs.7.25 Lakhs

The prices are to the close approximation ex-showroom as in Delhi. Please check the
latest prices and variant specifications with your dealer.

Target Market
On the basis of Demographic
Age: Young, Middle and Elderly
Gender: Male and Female

23

Profession: Businessmen, Servicemen, Industrialists, Bureaucrats, Politicians,

Students, Doctors, any successful professional.
Income: Upper Middle Income Group, High Income Group

On the basis of Psychographic

Lifestyle: Exciting, Trendy, Outdoor Oriented
Social Class: Upper Middle

On the basis of Geographic

Region: Northern, Southern, Eastern, Western region of India
Area: Metro cities, Semi-Urban and other Urban areas

Adopting Offer to suit Target Segment

Ford modifies its models for Indian target segments as shown below:

24

Higher ground clearance to make the car more compatible to the rougher road
surface in India.
Stiffer rear springs to enable negotiating the ubiquitous potholes on Indian
roads.
Changes in cooling requirement, with greater airflow to the rear.
Higher resistance to dust.
Compatibility of engine with the quality of fuel available in India.
Location of horn buttons on the steering vehicles. (As the India motorist uses
the horn more frequently, for cars sold in India, the horn buttons are kept on
the steering wheel and not on a lever on the side as in the models sold in
Europe.)

Market Competition
Ford Fiesta comes in C segment Sedan and is available in both Diesel and Petrol
variants in Indian Market. Along with Fiesta, other cars in this segment are Hyundai
Verna, Maruti Suzuki SX4, Chevrolet Aveo and Tata Indigo Manza.

Strategic Promotions by Ford

25

Ford follows the promotions at two levels, they a

1) Promotions of product directly by the manufacturer.
2) Promotions at dealer level.
In the first step the products of vehicles manufactured by the Ford Automotives are
directly promoted by the manufacturer by himself. He follows many promotional
strategies like
1. Advertising through television and newspaper.
2. Internet or interactive marketing.
3. Direct marketing.
In the second step the dealer of the vehicles promotes the vehicles.
The various promotional strategies followed by the dealers are
1. Advertising though news papers, radios, palm plates. In this all the features of
the product and its prices are given in detail to the customer.
2.

By Hoardings, the promotion about the product and its features.

Hoardings
A heavy picture of the product which comprises of its attributes and special features
are displayed on the roadsides in the form of hoardings. It is a bit expensive strategy
but attracts many people who pass by that roadside.
This type of advertisement is prepared for those segments of people who cannot afford
their time in reading newspapers and watching televisions. While travelling from their
home to office, moving on their business activities they may watch these hoardings.
These hoarding are especially setup at the road signal stops.
Maintaining Data Bank
26

In this the dealer collects personal/bio-data (address and contact number) of many
people from various organizations and different sector who are ready to buy the
vehicles and who change the vehicles regularly.
These people are met-in person or contacted through their contact number. The
various new features and new offers regarding the vehicles are advocated to them and
are given discounts on group purchase of vehicles, i.e. if 5 or more friends in the
group purchase the cars at a time then they are given special discounts on the
vehicles.

Free Insurance
The dealers of Ford may give a special offer of free insurance on the purchase of each
vehicle to its new customers.

Relationship Marketing
Fortune Ford pays a special attention towards its old customers. To retain the old and
existing customers it conducts a corporate meet at a luxurious hotel. The event aims at
knowing the problems of the customers regarding the vehicles and also service
feedback.
In this way it maintains an effective relationship with the customers and gains the
reputation and goodwill in the minds of the customers.

Sales Promotion
27

The sales promotion is done by ford at three levels:

1) Showroom Sales: In this the customers walk in to the showrooms to know
about the details of the product. Specially trained sales executives who are
present in the showrooms give a detailed explanation about the product to the
customers. Sales executives give a detailed note on the products features,
various offers given by the manufacturer and also by the dealer to the customer
and enhance the sales of the vehicles.

2) Corporate sales: A special team of sales executives are sent to some big
corporate sectors and there they personally meet the heads of the organizations
like C.E.Os, Managers, etc., and explain about the vehicles and the offers and
special schemes provided by the dealer to them on bulk purchase of the
vehicles and try to promote the sales of the vehicles.

3) Field sales: The sales executives conduct some events with the corporate
working people and try to demonstrate the product features and its benefits and
try to promote the product and increase its sales.

Conducting Customer Delight Program

28

This is a unique program conducted by the dealers of Ford. This is a program

conducted to retain the old customers of the Ford. The old customers of Ford are
meeting personally and they are requested to give their feedback by filling in the
questionnaire which is specially prepared for them. In this questionnaire their
problems regarding the vehicle and also their post sale service experience are taken. If
there exists any problem, then the Fortune Ford service men try to resolve the
problems of their customers as soon as possible and makes the customer satisfied. This
is a technique to attract the new customers by satisfying the old customers and gaining
goodwill in the market.

Extended Warranty
The dealers of Ford Fiesta give an extended warranty to its customers where there will
be extended time duration in the warranty.

What is Extended Warranty?

Factory Warranty covers only for a specific period of time/mileage.
After the factory warranty expires, customer is exposed to the risk of parts
failures.
This is applicable for any machine/equipment/vehicle.
Extended Warranty:
Is an extension of Factory Warranty
Offers almost similar coverage as Factory Warranty
Comes with a time-bound (eg. 1yr/2yrs but unlimited mileage cap)

29

Covers all Mechanical and Electrical Failures

Covers labor
Why is extended warranty needed?
Offers peace of mind motoring
Protects against unexpected and non-budgeted expenses
Can be transferred, hence increases the resale value.
What does it NOT cover?
Does not cover wear and tear of parts
Does not cover scheduled service items
Does not cover accident repairs

Benefits to customer
Protection from manufacturing and material defects
Car can be repaired at any Ford out let across the country
Unlimited number of claims
No excess to pay
One up-front payment only
Inflation protection from rising costs of parts and labor
All repairs carried out by qualified Ford technicians
Warranty can be transferred when vehicle is sold better resale value
Total peace of mind

TOTAL MAINTENANCE PLAN

30

What is Total Maintenance Plan?

Cost of ownership is the key factor while considering vehicle purchases
As part of regular maintenance, customers spend on
a) Maintenance parts that are to be replace at specific intervals
b) Replacement of worn out parts
c) Labor charge for the above
A comprehensive maintenance plan by Ford will serve as a good tool to
improve the service experience and minimize concerns on cost of ownership of
the vehicle
Total Maintenance Plan (TMP) is a complete service solution provided to the
customer. This enables the customer to have total peace of mind in the form of
a Maintenance Holiday
What does it cover?
Scheduled servicing like Engine Oil change, Fuel filter, Oil filter, Spark plugs
etc.
Non-scheduled maintenance like Brake Pads/Shoes, Brake Discs, Clutch
Plates, Lower Suspension Arms, Shock Absorbers etc.
Mechanical/Electrical repairs
Labor for all the above
What does it NOT cover?
Accident repairs
Tyres
Fuel
31

Benefits to the customer

Total peace of mind
Fixed price for next 2 to 3 years
Increased residual value of the car
Only Ford genuine parts are used
Can avail this service across the country at all Ford authorized outlets
Transferable
Incase of total loss, can be cancelled
Ford factory backed programme
Diagnosis/repairs as per recommended standards and practices
Vehicles serviced by Ford trained and certified technicians

Advertising
Advertising is a direct tool of promotion as any non personal paid form of
communication using any form of mass media such as TV, radio or newspapers. The
television advertisement of Ford Fiesta emphasize on the powerful engine and
mileage. The advertising of Fiesta relates with the word fida, and its catch phrase is
go fida.
Advertisement of Fiesta is through TV commercials, Print Media (Mainline
newspapers, magazines- auto and general and lifestyle), placing hoardings and online advertisement.

32

It is also done by sponsored Links on popular social networking websites and through
banners, etc.

The other indirect tools of promotions are through sponsorship and words of mouth.
Ford sponsors various environment and sports events. Fords cars are very much
appreciated for their superb performance and stylish aerodynamic looks. Among
motorsport lovers the ford cars are promoted in Rally Racing Championships.

Now, to understand the customers view regarding the promotion of cars in India and
its effect on customers is done through a questionnaire. The basic method adopted in
conducting the study is a structured questionnaire. Questionnaire is administered on
the sample respondents. However, there are certain cases where personal interactive
method is followed with customers to find the satisfaction level.
The questionnaire study the impact of various promotion techniques and tool used for
promoting cars on the customers in India.

Sales figures ( www.carwale.com):

Ford Fiesta: 2213 units (in Sep 09), 1478 units (in Sep 08)
Honda City: 4281 units (in Sep 09), 2566 units (in Sep 08)
Maruti Suzuki SX4: 2134 units (in Sep 09)

33

QUESTIONNAIRE:
Name:
E-mail address:
1) Which of the following companys car do you own?
a) Maruti Suzuki
b) Hyundai
c) Honda
d) Ford
e) Chevrolet
f) Other
(Respondent can opt for more than one choice)
2) What do you like most about a car?
a) Style/design
b) Comfort
c)

Brand

d) Service

3) What do you feel great about your car when compared to other cars in the
market?
a) Fuel Efficiency
b) Durability

34

c) Low Maintenance
d) Sound Quality
e) Brand Name

4) How do you come to know about your car before purchasing?

a) From friends, relatives
b) Advertisements
c) Car Experts
d) Sales Persons visit
e) Auto Magazines or shows
5) To which media do you get expose regularly?
a) Television
b) Magazine
c) News Papers
d) Radio
6) What kind of TV channels do you watch regularly?
a) National News Channel
b) Regional News Channel
c) Sports Channel
d) Entertainment Channels
7) What kinds of offers do you like or expect from the dealer?
a) Free insurance
b) Special discounts on sales of cars
c) Extending the service period
35

d) Finance availability with 0% interest

8) How do you feel when an unknown sales person approaches you by knowing
your full details to demonstrate about any product?
a) I will respond
b) Lost my privacy
c)

Interested in knowing (if I feel a need of it)

9) Whats your opinion on Brand Ambassador of a car?

a) Very necessary
b) Not necessary
c) Waste of money for the company
10) Whats your opinion about the previous brand ambassador Abhishek
Bachchan endorsing Ford Fiesta?
a) Fulfilled the purpose
b) Unable to attract customers
c) They were not apt for it
11) Who do you suggest as the right person for promoting the car?
a) Sports Person
b) Film Star
c) Car Expert
d) Any celebrity
12) Do you think the expensive hoardings of cars catch your eyes at the roadside?
a) Absolutely
b) Dont bother

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c) Not at all
13) Which companys product do you think are reliable?
a) Maruti Suzuki
b) Honda
c) Hyundai
d) Ford
e) Others
14) Which brand do you seriously consider before making a car purchase?
a) Maruti Suzuki
b) Hyundai
c) Honda
d) Ford
e) Other
15) What is your profession?
a) Student
b) Businessman
c) Service
d) Other Professional

Thanks for taking the time to fill out this questionnaire and for providing valuable
information which will be used for my project work, and reports. We do not share or
sell your name, e mail address or any other data with anyone.

37

Chapter 3
Analysis

38

Analyzed Survey Report of the Questionnaire

1) Which of the following companys car do you own?
g) Maruti Suzuki
h) Hyundai
i) Honda
j) Ford
k) Chevrolet
l) Other
(Respondent can opt for more than one choice)
Data Analysis
Name of the Company

% of Respondents

Maruti Suzuki

45

Hyundai

30

Honda

13

Ford

Chevrolet

Other

Interpretation
This question is meant for taking the information regarding the most preferred car
company in India. From the above graph it is found that most preferred car company
is Maruti Suzuki.

39

2) What do you like most about a car?

e)

Style/design

f)

Comfort

g) Brand
h) Service

Data Analysis
Customer Preference

No of Respondents

Style/Design

27

Comfort

69

Brand

39

Service

15

Interpretation
This question is meant to know the Respondents preferences and likes towards the
cars. From the data we can position our product to the comfort seeking group of
people.

3) What do you feel great about your car when compared to other cars in the
market?
f) Fuel Efficiency
g) Durability
h) Low Maintenance
i) Sound Quality
j) Brand Name
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Data Analysis
Customers Perspective

No. of Respondents

Fuel Efficiency

Durability

21

Low Maintenance

27

Sound Quality

36

Brand Name

60

Interpretation
From this question we can position the cars according to the Respondents
perspectives. Many of the Respondents are buying the cars by seeing its Brand Name
only. The no. of customers satisfied with the fuel efficiency are very low.

4) How do you come to know about your car before purchasing?

f) From friends, relatives
g) Advertisements
h) Car Experts
i) Sales Persons visit
j) Auto Magazines or shows
Data Analysis
Source of Awareness

No. of Respondents

From friends, relatives

27

Advertisements

75

41

Car Experts

Sales Persons Visit

24

Auto Magazines

15

Interpretation
Most of the Respondents came to know about their vehicle through advertisements
only. The major media that attracted the customers is television.
5) To which media do you get expose regularly?
e) Television
f) Magazine
g) News Papers
h) Radio
Data Analysis
Media

No. of Respondents

Television

78

Magazine

21

News Papers

48

Radio

Interpretation
From this analysis we come to know that most of the Respondents are interested in
watching televisions, which is a good media for communicating with people and
delivering our intentions about product.

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6) What kind of TV channels do you watch regularly?

e) National News Channel
f) Regional News Channel
g) Sports Channel
h) Entertainment Channels
Data Analysis
TV Channel

No. of Respondents

National News Channel

30

Regional News Channel

48

Sports Channel

12

Entertainment Channels

60

Interpretation
This question is meant to know the interests and preferences of Respondents towards
T.V. channels. More than quarter of the sample size showed interest only on the
entertainment channels and next preference goes to the regional news channels.

7) What kinds of offers do you like or expect from the dealer?

e) Free insurance
f) Special discounts on sales of cars
g) Extending the service period

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h) Finance availability with 0% interest

Data Analysis
Offers

No. of Respondents

Free Insurance

27

Special Discounts

Extending the service period

81

0% Finance

33

Interpretation
By the result of this question we come to know about the various promotional
techniques/offers which attract the customers. From the above analysis many
customers are expecting the extension in the service period from the various offers
given to them.

8) How do you feel when an unknown sales person approaches you by knowing
your full details to demonstrate about any product?
d) I will respond
e) Lost my privacy
f)

Interested in knowing (if I feel a need of it)

Data Analysis
Customer Opinion

No. of Respondents

I will respond

33

Lost my privacy

15

44

Interested in knowing

102

Interpretation
This question is prepared indirectly to know about the customers opinion about the
Data Bank maintenance by the company/dealers. In reply majority of the customers
gave a positive reply by showing interest in knowing about the cars when a sales
person gives a detailed description about the cars.

9) Whats your opinion on Brand Ambassador of a car?

d) Very necessary
e) Not necessary
f) Waste of money for the company
Data Analysis
Customer Opinion on Ambassador

No. of Respondents

Very Necessary

129

Not Necessary

21

Waste of money

Interpretation
This question is meant to know about the importance of Brand Ambassador for a car
in the customers point of view. Most of the respondents think that a Brand
Ambassador is very necessary for promoting a car.

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10) Whats your opinion about the previous ambassador Abhishek Bachchan
endorsing Ford Fiesta?
d) Fulfilled the purpose
e) Unable to attract customers
f) They were not apt for it
Data Analysis
Customer Opinion

No. of Respondents

Fulfill the purpose

114

Unable to attract customers

30

They were not apt for it

Interpretation
Most of the respondents think that the Brand Ambassadors full filled the purpose and
were able to increase the sales of the cars.

11) Who do you suggest as the right person for promoting the car?
e) Sports Person
f) Film Star
g) Car Expert
h) Any celebrity
Data Analysis
Customer Suggestion

No. of Respondents

Sports person

54

46

Film Star

63

Car Expert

21

Any Celebrity

12

Interpretation
Most of the respondents suggest a film star as the best ambassador. Because many of
them get attracted only to their favorite film stars other than other brand ambassadors.

12) Do you think the expensive hoardings of cars catch your eyes at the roadside?
d) Absolutely
e) Dont bother
f) Not at all
Data Analysis
Customer Opinion

No. of Respondents

Absolutely

90

Dont bother

48

Not at all

12

Interpretation
Most of the respondents think that hoardings are a good option for catching the eyes
of a customer.
13) Which companys product do you think are reliable?
a) Maruti Suzuki

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b) Honda
c) Hyundai
d) Ford
e) Other
Data Analysis
Company

No. of Respondents

Maruti Suzuki

45

Honda

32

Hyundai

36

Ford

34

Other

Interpretation
The response shows that Maruti Suzuki, Honda, Hyundai, and Ford have good
reputation of reliable products.
14) Which brand do you seriously consider before making a car purchase?
f) Maruti Suzuki
g) Hyundai
h) Honda
i) Ford
j) Other
Data Analysis
Car Brand

No. of Respondents

48

Maruti Suzuki

87

Hyundai

27

Honda

21

Ford

Others

12

Interpretation
The response shows that most of the people think of Maruti Suzuki product before
making a decision.
15) What is your profession?
e) Student
f) Businessman
g) Service
h) Other Professional
Data Analysis
Profession

No.of respondents

Students

69

Businessman

24

Service

45

Other Professional

12

Interpretation

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Most of the respondents were students but more than half of the respondents were
working.

According to the questionnaire, the facts gathered about the promotional strategies of
cars In India is as follows:
1. The customers prefer Comfort in a car, more than style or design, so in
promotional strategies more emphasis should be on comfort level a car
provides.
2. The companies should catch in for their brand name while designing the
promotional strategies.
3. Advertisements of the cars are the best source of awareness for the customers.
4. Television is the most important media that most of the people communicate
with, and entertainment channels should more be targeted than news channel
or sports channel.
5. More people look for extended service period while buying a car, rather than
special discounts and other offers.
6. There is a strong requirement of a Brand Ambassador for promoting a car,
and most respondents feel that a film star is the most appropriate choice.
7. Expensive hoardings at the roadside can prove to be an important medium for
spreading awareness about the product.
8. Approximately, half of the respondents were students and rests were working
professionals.

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SWOT Analysis
SWOT Analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business venture.
It involves specifying the objective of the business venture or project and identifying
the internal and external factors that are favorable and unfavorable to achieving that
objective.

Strengths: attributes of the person or company those are helpful to

achieving the objective.
Weaknesses: attributes of the person or company those are harmful to
achieving the objective.
Opportunities: external conditions those are helpful to achieving the
objective.
Threats: external conditions which could do damage to the objective.

Matching and converting

Another way of utilizing SWOT is matching and converting.
Matching is used to find competitive advantages by matching the strengths to
opportunities.
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Converting is to apply conversion strategies to convert threats or weaknesses

into strengths or opportunities

A firm should not necessarily pursue the more lucrative opportunities. Rather, it may
have a better chance at developing a competitive advantage by identifying a fit between
the firm's strengths and upcoming opportunities. In some cases, the firm can
overcome a weakness in order to prepare itself to pursue a compelling opportunity.
In SWOT analysis, Strength and Weakness are internal factors while Opportunities
and Threats are external factors.

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SWOT Analysis of Ford (Fiesta)

Internal Factors
Strength
Good experience of Indian market of about 15 years. Have tested the potential
of Indian market.
Reputation of reliable and performance oriented products.
Settled and has branches in North, South, East and West of India. Location is
strength for their business.
Reputation of one of the largest car manufacturers in the world.

Weakness
Weaker brand image in India. Despite of strong hold in larger markets of the
world, has weaker brand image in one of Asias largest car market.
Lack of aggressive marketing.
No brand ambassador. After previous brand ambassador, Abhishek Bachchan
for Ford Fiesta, no brand endorsements are done with any celebrity.
Very low market share. Companies such as Hyundai and Honda, has more
market share despite entering the Indian market after Ford. (media.ford.com)

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Opportunities
Can capitalize on existing brand.
Moving into new segment that offers improved profits.
Cost reduction through research and development.
Increasing purchase power of Indian middle class.

Threats
Rising prices of Oil and raw material all over the world. Rising prices in the
global economy could pose a threat. The price of steel and aluminum is
increasing putting pressure on the costs of production.
Maruti Suzuki, Honda, Hyundai are all in the segment of tuff competition.
Every company has a strong hold on one segment.

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Chapter 4
Conclusion

55

Conclusion

1. Advertising, Publicity, Personal Selling, Sales Promotion and Internet

Marketing are the most important medium of promotion for cars.
2. Television is the most important medium of advertising and promoting
followed by magazines, newspaper, hoardings and radio.
3. Choosing a brand ambassador is beneficial for the promotion of a car.
4. Customers look for various offers while buying a car, for example, free
insurance, special discounts on sale, extending service period, finance
availability at 0 %, etc.
5. SWOT analysis of Ford (Fiesta) is done with its Strength, Weakness,
Opportunity and Threats.

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Bibliography
1. Marketing Management, Twelfth Edition, Philip Kotler, Kevin Lane Keller,
Abraham Koshy, Mithileshwar Jha, Pearson Education.
2. http://www.india.ford.com/servlet/ContentServer?pagename=DFY/IN
3. http://www.carwale.com/blog/category/sales-figures/
4. http://media.ford.com/
5. http://tutor2u.net/business/marketing/promotion_mix.asp
6. http://learnmarketing.net/promotion.htm
7. http://en.wikipedia.org/wiki/SWOT_analysis

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