SWOT ANALYSIS

STRENGTH
 Easy availability of spare parts.
 Cost of spare parts is low.
 Innovation in fuel efficient bikes.
 Economic cost than competitor.
 Innovation in fuel efficient bikes.
 It has a high brand loyalty amongst the customers.
Weakness
 Similar type of models with same specifications.
 Lack of advanced technology.
 Skilled labour.
 High competition.
Opportunity
 Increase in disposable income.
 Credit financing by bank is increasing.
 Increase in sale of sports bike segment.
Threats
 Increase in fuel prices.
 Inflation
 Economic slowdown.
 BS6 leads to price hike.

PESTEL ANALYSIS
Political factors
The Indian automobile industry has attracted many investors. All these are pooled in
three main regions despite the expansive size of the country. This is due to the fact
that these areas are more developed as compared to other regions. The government
has a hand in this because it has invested in the development of these regions.
Politically speaking, the automobile industry has greatly benefited from the
government of India. The government has set up bodies which help the automobile
industry in carrying out research and development. These bodies also maintain a
monitoring system for the automobile industry.
Economic factors
India has also been experiencing economic degrowth and the automobile industry
contributes 22% to the GDP of the country. This is a very important income
generating activity for the country. Without economic growth, India would not be able
to attract as many foreign investors in the automobile industry. It is thus important for
the country to sustain this upward growth as it will affect all its manufacturing
industries.

Social factors

India is fast becoming an automobile industry hub because of its large population.
This forms a bustling market for the manufacturers. The tastes of the populations
may vary but manufacturers always take note of the fast selling automobiles and
create appropriate designs. For instance, in the past three years, there has been a
surge of two-wheeler vehicles because of their convenience in the country. Many
automobile industries have created these vehicles for domestic consumers.

Technological factors

The automobile industry has grown because there are several technological
inventions. These are used not only in manufacture of the vehicles but also to reduce
expenses for the vehicle buyers. The government is also helping in research and
development to ensure that both producers and consumers are happy and
encouraged to invest in the automobile industry.

Environmental factors

Environmental factors have influenced automobile industry in India because more

investors are opting to manufacture environmentally friendly vehicles. These include,
vehicles that consume less fuels and emit less fumes. There are also some investors
that have chosen to manufacture the electric vehicle in a bid to conserve energy and
also the environment.

Legal factors
Legal factors have played a role in the recent expansion of the Indian automobile
industry. This is because the industry is extremely incentivized with investors being
given 100% foreign direct investment pass. There are also zero taxes for the
investors who ship the cars to other countries from their manufacturing bases in
India. By easing the legal rules affecting the industry, the government of India has
encouraged varied automobile companies to set up shop in the country.
MARKETING MIX

Product
Product is a thing process utility. For many a product is simply the tangible, physical entity
that they may be buying or selling. The product is the physical product or service offered to
the consumer. In the case of physical products, it also refers to any services or
conveniences that are part of the offering. Product decisions include aspects such as
function, appearance, packaging, service, warranty, etc.
The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed
is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down
roots as it becomes an adult (maturity); after a long period as an adult the plant begins to
shrink and die out (decline).
The Customer Life Cycle (CLC) has similarities with the Product Life Cycle (PLC).
However, CLC focuses upon the creation of and delivery of lifetime value to the customer i.e.
looks at the products or services that customers NEED throughout their lives.

Price
The price is the amount a customer pays for the product. It is determined by a number of
factors including market share, competition, material costs, product identity and the
customer's perceived value of the product. The business may increase or decrease the price
of product if other stores have the same product. Pricing decisions should consider profit
margins and the probable pricing response of competitors. Pricing includes not only the list
price, but also discounts, financing, and other options such as leasing. Price is also
calculated on the basis of the Demand and Supply for the Product.
Price is influenced by following factors: -
 Sales volume
 Profit margin
 Return on investment
 Trade margin
 Product image
 Advertisement and sales promotion
 New development
Promotion
Promotion Mix (Meaning) – Promotion is the persuasive communication about the product by
the offered to the prospects. It covers advertising, personal selling, sales promotion,
publicity, public relation, exhibition and demonstration used in promotion. Largely it deals
with non-price competition the different elements of promotion mix are as follows:
 Sales promotion
 Advertising
 Direct Marketing
 Public relation
 Sales force
The various factors affecting promotion mix
 Size of the incentive
 Condition for participation
 Duration of promotion
 Distribution vehicle
 Timing of promotion
Physical Distribution
Physical Distribution (Meaning) - Physical Distribution is to deliver the right goods to the right
customer at the right time and place. Physical Distribution means the process of delivering
the product to the user or consumer promptly, safely and in time. Physical Distribution
involves planning, action and control of the Physical flows of raw materials and finished
products from the points of origin to the points of consumption to meet the customer’s needs.
Distribution planning and accounting, in bound transport, receiving, inventory management,
in-plant warehousing, customers service, communication these are the components of
Physical Distribution. The main components are,
 Transportation
 Warehousing
 inventory management
Importance of Physical Distribution
 Scope of Marketing
 Sales generating power
 Management science
 Rising competitive demand
MARKET SHARE

EVIDENCE