METHODOLOGY ADOPTED: Personal interaction with the employees, filling of

questionnaires, gathering information through internet surfing, observing the activities, etc.

were some of the primary methods adopted for research study.

CONTRIBUTION: The research would help the company in refurbishing the loopholes

present in its marketing strategies as well as entire operations through strict surveillance and

understand the tactics to deal with the challenges posed by the competitors for making the

process of delivering a quality value to the customer effective and profitable.

CONTENTS

1) INTRODUCTION TO THE TOPIC

2) OBJECTIVE OF THE STUDY
3) INTRODUCTION TO THE AUTOMOBILE INDUSTRY
4) ARRIVAL OF FIAT
5) MARKETING STRATEGIES AND ANALYSIS
6) MARKETING STRATEGIES AT LR AUTO
7) QUESTIONNAIRE
8) CONCLUSION
9) SUGGESTION AND RECOMMENDATION
10)

INTRODUCTION TO THE TOPIC

“Analysis of marketing strategies in a four wheeler dealership company” encompasses

several aspects of marketing function in an organization as well as the in depth study of an

automobile sector. Marketing is much more than just an isolated business function – it is

a philosophy that guides the entire organization towards sensing, serving and satisfying

consumer needs. The marketing department cannot accomplish the company‟s customer

relationship-building goals by itself. It must partner closely with other departments in the

company and with other organization throughout its entire value – delivery network to

provide superior customer value and satisfaction.

Thus marketing calls upon everyone in the organization to “think customer” and to do all

they can to help build and manage profitable customer relationship. Marketing is all around

us, and we need to know that it is not only used by manufacturing companies, wholesaler and

retailers, but also by all kinds of individuals and organizations. There are four major,

powerful themes that go to the heart of modern marketing theory and practice, they are:

1. Building and Managing Profitable Customer Relationships.

2. Building and Managing Strong Brands.

3. Harnessing New Marketing Technologies in This Digital Age.

4. Marketing in a Socially Responsible Way around the Globe.

“What marketing is what it does and what it offers.”

“Marketing is a social and managerial process whereby individual and groups obtain what

they need and want through creating and exchanging products and value with others”.

“Marketing management is the process of planning and executing the conception, pricing,

promotion and distribution of ideas, goods and services to create exchanges that satisfy

individual and organizational goals.” “Marketing offers some combination of products,

services, information, or experiences offered to a market to satisfy a need or want”.

Marketing is an orderly and insightful process for thinking about and planning

for markets. The process starts with researching the market place to understand its dynamics.
The marketer uses research methodologies to identify opportunities, that is, to find

individuals and groups of people with unmet needs or latent interest in some products

or service.

The marketing process consists of the following:

1. Analyzing marketing opportunities i.e. analyze market, competition and customers.

2. Developing marketing strategies.

3. Planning marketing programs i.e. research distribution

4. Managing the marketing efforts.

5. Financial Analysis

6. Review and Revise

Before taking any decision and achieving the goals, it has to make analysis of What to do,

how to do, when to do, where to do and who is to do it. This is nothing but strategic
planning. Goals indicate what a business unit wants to achieve whereas strategy is how to get

there. Marketing strategies in simple terms are the complete and unbeatable plans designed

specifically for attaining the marketing objectives of the firm. Marketing can be called as a

game plan for achieving its goals. Strategy choice will depend on whether the firm or the

marketer plays the following roles:

 Market leader

 A challenger

 A follower

 A nicher

The identification of objectives, both in quantitative and qualitative terms, is an essential

backdrop to strategy formulation. Goals have a quality and time frame attached to them.

These are typically spelt out in terms of financial return, market share, market presence, etc.

Thus, the concept of market oriented strategic planning arises with the link between the

products the link between the products the manufacturer is dealing in and the market

conditions. In this direction, our study deals only with the marketing strategies

i.e. promotional strategies of the automotives.

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE
To know the influence of various marketing strategies, promotional activities, over the

customers of four wheelers.

SECONDARY OBJECTIVES

 To know the effective factors for preferring 4 wheelers

 To know the factor for awareness of the cars

 To know whether the customers are satisfied with the offers given by the dealer

 To know which kind of offers can attract the new customers

 To study and analyze the promotional strategies of the company

 To find the area to be improved

 To find out the satisfaction of the customers

 To find the reasons for the dissatisfaction

 To study the channel levels involved in the promotion of the cars

 To study and analyze the customer's perception regarding the usefulness/utility of cars

sold by the company

 To study and analyze the distributors perception regarding the promotional and

distributional strategies of LR Auto

INTRODUCTION TO AUTOMOBILE INDUSTRY

Automotive industry is the key driver of any growing economy. It plays a pivotal role in

country's rapid economic and industrial development. It caters to the requirement of

equipment for basic industries like steel, non-ferrous metals, fertilizers, refineries,
petrochemicals, shipping, textiles, plastics, glass, rubber, capital equipments, logistics, paper,

cement, sugar, etc. It facilitates the improvement in various infrastructure facilities like

power, rail and road transport. Due to its deep forward and backward linkages with almost

every segment of the economy, the industry has a strong and positive multiplier effect and

thus propels progress of a nation. The automotive industry comprises of the automobile and

the auto component sectors. It includes passenger cars; light, medium and heavy commercial

vehicles; multi-utility vehicles such as jeeps, scooters, motor-cycles, three wheelers, tractors,

etc; and auto components like engine parts, drive and transmission parts, suspension and

braking parts, electrical body and chassis parts; etc.

The Role of Automobile Industry in India GDP has been phenomenon. The Automobile

Industry is one of the fastest growing sectors in India. Probably automobile industries

occupy a large market share in the worlds market as well as in the Indian market. Nearly

18% of the total national income is being incurred from the automobile industry. From

this we can estimate the importance of an automobile industry in the improvement of GDP

of a country. In India automobile industry has a growth rate is at the average of 10-12%.

India has become one of the international players in the automobile market. It is expected

that the Automobile Industry in India would be the 7th largest automobile market within

the year 2016.

INDIAN AUTOMOBILE INDUSTRY SINCE 1947:

It is a fascinating drive through history, which begins as a story of isolation and missed

opportunities to one of huge potential and phenomenal growth. India‟s fixation with

socialism and planned economies had a crippling impact on the automotive industry in its

formative years. The goal at that time for independent India was self-sufficiency. Issues like

quality and efficiency were simply not considered. Dependence of foreign technology was
banned and manufacturers were forced to localize their products; import substitution became

the order of the day. Though we learnt to localize, the cars we made were all outdated designs

with little or not improvements for decades. The automotive industry stagnated under the

government‟s stifling restrictions and the Indian car buyer was saddled with cars of appalling

quality and even then there was a waiting list that at one point stretched to eight years! This

attempt at self-reliance failed miserably because of the industry‟s isolation from the best

technology. The Japanese and later Korean auto industries were also highly protected in their

formative years but they never shut the door on technology. Instead, they relentlessly tapped

the best talent pools in the world to absorb the know-how to produce good cars. One of the

most important chapters in the Indian automotive industry‟s history was written by Maruti. It

marked the Indian government getting into the far business in the early1980‟s, a radical shift

in thinking after decades of treating cars with disdain. The Maruti 800 went on to become the

staple car of India and put a nation on wheels. This little car set a benchmark for price, size

and quality and structured India as small car market. It wasn‟t till 1993 that things really

started to change for the Indian car buyer. With the liberalization of the economy, a host of

international carmakers rushed in. But most of them were in for a shock as Indian customers

rejected their product. Indian customers refused to allow the glitter of prestigious brands

blind them to the outdated and overpriced products they were offered. The Indian consumer

wanted super value, and rewarded the brands that delivered it, handsomely. Hyundai and

Maruti delivered, and profited. The period also saw the emergence of the Indian players

like Tata Motors and Mahindra & Mahindra. They rose to the challenge of the MNC‟s and

responded brilliantly with the Indica and the Scorpio. This was ironically due to the license

raj that forced Indian carmakers to be innovative and develop products frugally. India‟s frugal

engineering skill has now caught the world‟s imagination, and an increasing number of

carmakers are preparing to setup major capacities here. India‟s changing,

and changing fast. It‟s moving forward. India‟s largest-selling car is not its cheapest car, the

800. It is the Alto. People‟s aspirations are rising and so are their mistakes, have got their

finger on the pulse of the market. Get the right product and the rewards are handsome. The

Indian auto industry is today bubbling with promise and confidence. It‟s been a long journey

but to see where the Indian car industry is going. We have to see where it has been.

AUTOMOBILE INDUSTRY IN PRE-INDEPENDENCE:

The first motorcar on the streets of India was seen in 1898, Bombay had it first taxicabs

by the turn of the century. In 1903, an American company began a

public taxiservice with afleet of 50 cars. For about 50 years after car arrived in India, cars wer

e directly imported. Before World War I, around 40,000 motor vehicles were

imported. During the years between the wars, a small start for an automobile industry was

made when assembly plant were established in Bombay, Calcutta and Madras. The

import/assembly of vehicles grew consistently after the 1920s, crossing 30,000units by

1930. It was during the end of the war that the importance of establishing an indigenous

automobile in India was realized. Premier Motors, Hindustan Motors and Mahindra &

Mahindra set up factories in the 1940s for progressive manufacture rather than assembly

from imported components. The cars they chose to make were the latest in the world when

they were introduced in India in the formative years of the industry.

POST- INDEPENDENCE:

The government clamped down on imports and foreign investments. Companies like GM and

Fiat packed their bags and left. India‟s clock, thereafter, stood still while the world raced on
ahead. It would take nearly 50 years before the Indian auto industry could catch up with the

rest of the world again.

Building India‟s first auto factory

Seth Walchand Hirachand has first started the trails to establish an Indian car manufacturing

plant in Indian for which he went to U.S.A. where three largest car manufacturing companies

are located. He wants Indian company to be completely independent, with Indian

management capital and employees, paying royalty or technology transfer payment to

western countries. After approaching

General Motors, they insisted on part ownership. Seth Walchand then moved to second largest

automaker Fiat; Henry agreed, but delegated the project to Fiat of Canada, which refused.

Finally the third largest automaker Chrysler agreed and signed in an agreement in Bombay in

1940.
SCENARIO OF INDIAN AUTOMOBILE INDUSTRY
In India, automotive is one of the largest industries showing impressive growth over the years

and has been significantly making increasing contribution to overall industrial development

in the country. Presently, India is the world's second largest manufacturer of two wheelers,

fifth largest manufacturer of commercial vehicles as well as largest manufacturer of tractors.

It is the fourth largest passenger car market in Asia as well as a home to the largest motor

cycle manufacturer. The installed capacity of the automobile sector has been 9,540,000

vehicles, comprising 1,590,000 four wheelers (including passenger cars) and 7,950,000 two

and three wheelers. The sector has shown great advances in terms of development, spread,

absorption of newer technologies and flexibility in the wake of changing business scenario.

The Indian automotive industry has made rapid strides since de-licensing and opening up of

the sector in 1991. It has witnessed the entry of several new manufacturers with the state-of-

art technology, thus replacing the monopoly of few manufacturers. At present, there are 15
manufacturers of passenger cars and multi-utility vehicles, 9 manufacturers of commercial

vehicles, 16 of two/ three wheelers and 14 of tractor, besides 5 manufacturers of engines. The

norms for foreign investment and import of technology have also been liberalized over the

years for manufacture of vehicles. At present, 100% foreign direct investment (FDI) is

permissible under the automatic route in this sector, including passenger car segment. The

import of technology for technology up gradation on royalty payment of 5% without any

duration limit and lump sum payment of USD 2 million is also allowed under automatic route

in this sector. The Indian automotive industry has already attained a turnover of Rs. 1,65,000

crore (34 billion USD) and has provided direct and indirect employment to 1.31 crore people

in the country.

The growth of Indian middle class with increasing purchasing power, along with strong

macro-economic fundamentals has attracted the major auto manufacturers to Indian market.

The market linked exchange rate, well established financial market, stable policy governance

work and availability of trained manpower have also shifted new capacities and flow of

capital to the auto industry of India. All these have not only enhanced competition in auto

companies and resulted in multiple choices for Indian consumers at competitive costs, but

have also ensured a remarkable improvement in the industry's productivity, which is one of

the highest in Indian manufacturing sector.

The Department of Heavy Industry, under the Ministry of Heavy Industries and Public

Enterprises, is the main agency in India for promoting the growth and development of the

automotive industry. The department assists the industry in achievement of its expansion

plans through policy initiatives, suitable interventions for restructuring of tariffs and trade,

promotion of technological collaboration and up-gradation as well as research and

development. The department is also concerned with the development of the heavy
engineering industry, machine tools industry, heavy electrical industry, industrial machinery,

etc.

The automobile sector recorded growth of 13.56% in 2006-07. During the year 2007-08

(April-December), the industry decelerated at 3.49%. The automobile exports crossed the

US$ 1 billion mark in 2003-04 and increased to US$ 2.76 billion in 2006-07. The industry

exported 15% of its passenger car production in 2006-07, 10% of commercial vehicles

production, 26% three wheelers and 7% two wheelers. Similarly, during the year 2006-07,

the auto component industry continued its high growth path and emerged as one of the fastest

growing sector in Indian engineering industry by clocking 21% growth in output during the

year. This industry crossed a total turnover of over US $ 15 billion (Rs. 64,500 crore), with

exports of US $ 2.9 billion (Rs. 12,643 crore) during the year. Investment in the industry also

grew by over Rs. 4500 crore during the year as the industry continued to invest in capacity

enhancements and new greenfield sites to cope with the increasing demand. The auto

component industry‟s export growth was 15% in 2006-07. While, the total imports was US $

3.3 billion (Rs. 14,644 crore). On the quality and productivity front, auto component industry

maintained its leadership with more than 95% companies being certified as per the ISO 9000

system standards and more than 70% of the companies are certified as per the ISO/TS 16949

standards. It has also the distinction of having the maximum number of 11 Deming award

winning companies.

In order to further accelerate and sustain advancements in the auto sector, the department has

undertaken several policy measures and incentives. The most important being the

announcement of the 'Auto Policy' of 2002, which aims to establish a globally competitive

automotive industry in India and double its contribution to the economy by 2010. The policy

seeks to set out the direction of growth for the sector and promote R&D therein so as to
ensure continuous technology up-gradation as well as building up of better designing

capacities. It emphasizes on low emission fuel auto technologies and availability of

appropriate auto fuels in order to take auto manufacturing to a self-sustaining level. Broadly,

the objectives of the auto policy are to:-

 Exalt the sector as a lever of industrial growth and employment and to achieve a high

degree of value addition in the country

 Emerge as a global source for auto components

 Establish an international hub for manufacturing small, affiatable passenger cars and a

key center for manufacturing tractors and two-wheelers in the world

 Ensure a balanced transition to open trade at a minimal risk to the Indian economy

and local industry

 Conduce incessant modernization of the industry and facilitate indigenous design,

research and development

 Steer India's software industry into automotive technology

 Assist development of vehicles propelled by alternate energy sources

 Development of domestic safety and environmental standards at par with international

standards.

 A FORGETTABLE YEAR

 It is said that one cannot predict the future by looking into the past. This adage holds

true for the automotive sector in India. According to data available with the Society of

Indian Automobile Manufacturers (SIAM), domestic passenger car sales stood at 1,

38,521 units in October 2011 compared to the 1, 81,704 units sold in the same month

last year (October 2010). Even the festive cheer did nothing to help the cause this
 season. The year 2011 has been gloomy for the industry as it has shown the steepest

decline in sales since 2000.

 The carmakers have cited increased fuel prices and bank interest rates as the key

reasons for the collapse. Fuel prices have been revised more than 11 times in the past

one year and Reserve Bank of India (RBI) has increased lending rates by 13 times

since March 2010 to cool inflation. This has made the shoppers think twice before

buying a car. Moreover, a car is the second biggest investment for many households,

with the first being purchasing a home, and people are not taking car loans as they

already have home loans to repay.

 Despite the dismal performance this year the Indian automotive companies are not

hitting the panic button as many expected the slowdown and have made plans to

counter the same.

 Many automotive companies

converted the adversity into

an opportunity by coming up

with new launches which

have an option of diesel

engines. With the hike in the

petrol prices, the differential

price between petrol and diesel is currently more than 40 percent, which lead to an

increase in demand for vehicles with a diesel engine.

 Analysts expect 2012 to be a bright year for the industry as statistics show that the

Auto Expo 2011 has all its stalls booked which reflects the many customer friendly

deals companies have to offer. Companies have realized that trimming down the cost
 of vehicles and providing vehicles to customers at a relatively low price is the key to

increase their sales.

 Several large companies have geared up to this new reality and are in the process of

investing down south to set up manufacturing units, R&D facilities and design

capabilities.

ON A BRIGHTER NOTE

 Considering the challenges that the industry has been facing since the past one year

and the way it has countered most of the threats that it faced, one can be sure that the

future of auto industry is promising. This is proved by the recent announcement made

by SIAM, that the car sales are projected to increase up to 5 million vehicles by 2015

and more than 9 million by 2020. By 2050, India is expected to top the world in car

volumes with approximately 611 million vehicles on the nation‟s roads.

THE ARRIVAL OF FIAT:

Fiat S.p.A. (Fabbrica Italiana Automobili Torino) is the parent company of the Fiat Group

and, since July 2011, also the majority shareholder in Chrysler. On 29 January 2014, it was

announced that Fiat S.p.A. will be merged into a new Netherlands-based holding

company Fiat Chrysler Automobiles NV (FCA) with the now wholly owned Chrysler Group

and that the merger is expected to take place before the end of 2014. Fiat Chrysler

Automobiles will become the owner of Fiat Group.

In 1951, PAL singed up with Fiat to assemble the Fiat 500 in India. In 1952, the

tariff commission spelled out future for the auto industry – indigenize or get out. Companies

like Fiat and GM, which had assembly operations in India, packed their bags and went home.
But fiat decided to stick it out and committed itself full-fledged manufacture of the Millicento

in 1954. In September 1964, PAL and FIAT launched the Fiat 1100 DELITE in India. The

biggest customers for PAL‟s were Bombay’s taxi drivers. The Padminies were easy for

maintenance in terms of spares and labour cost, low on running cost, easy to drive and

reasonably tough. It was everything that a taxi driver wants.

FIAT CARS IN INDIA

Way back, in the year 1899, a group of investors from Italy, including the famous

entrepreneur Giovanni Agnelli, founded an automobile manufacturing company called as the

Fabbrica Italiana Automobili Torino (F.I.A.T.) societa per azioni (S.p.a.), in other words, the
Italian Automobile Factory of Turin. The company was renamed later in 1906, its

acronymous name getting replaced by the upper- and lower-case 'Fiat', which represents the

company across the world till date. Over its long lifespan, which extends longer than a

century, Fiat has acquired several other companies and entered into a number of partnerships,

making its presence felt on a global level. While its acquisition list features brands like

Lancia (1968), Ferrari (1969), Alfa Romeo (1986), Maserati (1993) and Chrysler (2011), the

major partnerships that Fiat has been involved in can be traced to countries like Serbia,

France, Turkey, India and China.

In India, Fiat began its operations in 1997, when Fiat India Automobiles Limited (FIAL) got

established at Ranjangaon in the Pune district of Maharashtra on January 2. Beginning its

journey in the Indian Peninsula by selling the 1100, the 124 and the Uno models, which were

manufactured back then by the iconic auto-clan of Premier Automobiles Limited, Fiat formed

a joint venture with the illustrious Tata camp on October 19, 2007. Today, this Italian

automaker ranks at the ninth position amidst the largest car manufacturers by sales in India.

Having sold 23,551 vehicles in 2009, an impressive growth of 241% was recorded by Fiat in

India in comparison to its sales count of 6,897 recorded over the year before that.

To make sure that these plans work out exactly the way they are expected to, Fiat India is

working round the clock on getting as many as dealerships set up across the country by the

end of 2013. As of May, 2013, the dealership base of the company comprises of 54 outlets.

Having ended its distribution agreement with Tata on April 1, 2013, the Italian automaker is

working very proactively on expanding its sales and services network in India. However, it is

not just the dealerships that lie within the area of focus of Fiat. Its manufacturing base,

comprising of a single plant at Ranjangaon, Maharashtra, with a current annual production

capacity of 100,000 cars and 200,000 engines, is being worked on so that its production

capacity could be doubled over the next few years.

FIAT MODELS IN INDIA

Although Fiat has been a part of the Indian automobile industry for over a decade and a half,

not many models have been launched from its camp in the Indian car-bazaar. The most

popular entrants belonging to this clan have been the Fiat Linea sedan and the Fiat Grande

Punto hatchback, both of which are locally produced at the Ranjangaon facility owned by the

company. Although over the days to come, several new models are expected to make their

way into the Fiat clan, expanding its portfolio and adding more charm to it, at present, only 3

models are featured on its lineup - Fiat Punto, Fiat Linea Classic and Fiat Linea.

FIAT LOWEST PRICE CARS

Ever since Fiat first started manufacturing and selling cars in India, its offerings have been

known and applauded for the creativity, versatility and practicality that their maker

incorporates in them. Simple yet attractive looks, decent comforts, sufficient room and

brilliantly-designed engines - such are the traits that have always been the defining factors of

every Fiat car. Despite being packed with all these qualities, Fiat cars have always managed

to put forward a very affordable deal for their buyers, which only adds to their list of pros.

Currently, the most affordable model that this Italian car-major has on sale in the Indian car-

market is Fiat Grande Punto, having been tagged with a price of Rs 4,92,799.

FIAT HIGHEST PRICE CARS

Over the past decade and a half that Fiat has spent manufacturing and selling cars in India,

the price tag of each of its offerings has been very smartly branded. Pricing being a major

deciding factor for the fate of every car in the Indian auto-market, Fiat India has always paid

attention to keeping its cars in competitive price brackets. Be it hatchbacks or sedans, Fiat

cars have always had that touch of practicality that arises from an aggressive price. That's the

reason why even the most heavily priced member of the Fiat family, Fiat Linea, comes

bearing a price tag of just Rs 7,00,454.

MOST FUEL-EFFICIENT FIAT CARS

Fiat has spent over 15 years on Indian soil, serving as one of the most renowned automakers

in the country. But, more than the car-manufacturer has been known for the cars that it has

built over all these years, it has been applauded for the spectacular power mills that it has

designed and manufactured at its Ranjangaon plant. Be it the immensely successful 1.3-litre

multi jet diesel engine or the 1.2-litre and 1.4-litre Fire gasoline mills, Fiat engines have
powered, and are still driving, many cars that dash across the Indian roads today, including

those belonging to the famous camp of Maruti Suzuki. What makes these power mills so

sought-after amongst auto-clans is their high-performance, exceptional refinement and

impressive fuel-economy returns. Thanks to these very smart engines, extremely fuel-

efficient models are offered by Fiat in India, the most fuel-efficient of which is Fiat Grande

Punto, which is available for a sum of Rs 4,92,799 in the market. Fiat has provided all the

bells and whistles in a very economical way. Even the base variant of T-Jet now comes with

features such as Anti-lock Braking System (ABS), Electronic Brake force Distribution

(EBD), and four disc brakes to name a few.

FIAT UPCOMING MODELS

Having once recorded a towering growth figure of 241%, Fiat India has been quite some

troubles recently. With its sales figures having dropped down significantly and its market

share reduced to less than 1%, the company is now set and ready to throw in a real fight.

Aiming to raise its sales count to a staggering 130,000 by the end of 2014 and establishing its

claim over 5% of the market, Fiat is gearing up to add some very alluring models to its fleet

over the days to come. Included in this upcoming lineup is Fiat Avventura.

Fiat has 3 car models available in India. The available models are Fiat Punto, Fiat Linea

Classic, Fiat Linea,. The minimum priced model of Fiat is Fiat Punto priced at Rs 4,92,799

and the maximum priced model of Fiat is Fiat Linea priced at Rs 9,74,111. To find out

about Fiat Dealers in India click here. Click here to learn more about Fiat History in India.

It is well known that in the medium-to-long-term, India is likely to be among the top five auto

markets in the world. In the short-term, though, there are issues with car sales slowing down.

The Society of Indian Automobile Manufacturers (SIAM) has reported figures with eight

quarters being down and even year-on-year, car sales are down.
There are several things like macro factors and lack of demand due to changes in excise duty,

overall situation with the pre-election year etc.

In the words of Fiat CEO Rajeev Kapoor, “At Fiat, we are here to stay and have started out

with a three-pillar strategy based on product, brand and network. On the product side, we

have a product offensive with nine, new or significantly refreshed products to come. We are

very product-focused and a lot of the product initiatives as we go forward along with

customer-connect initiatives are what will help.

We are expanding our exclusive dealer network where we are going it alone. On the brand

side, Fiat is a brand that has been around a long time but I think part of the story that we are

trying to bring out is that the brand itself has grown over the last 20-30 years and Fiat-

Chrysler is today the world‟s seventh largest auto maker. We are cautiously optimistic. We

look at India as a growing and a strategic market”.

Granted there are some headwinds right now but our products, our technology and innovation

combined with the exclusive dealer network will probably get us out of this.

Fiat Group Motors, now a 100 per cent subsidiary of the Italian SPA post its transition

announcement from Tata Motors, has launched a new integrated brand reassurance marketing

campaign, designed as a communication tool to tell its consumer database about its new

initiatives, dealerships, post sales service and more importantly, deliver the brand experience

that was missing with the joint venture with Tata Motors.

This is also an initiative by the brand to make up for lost brand equity and sales due to the

split and re-establish itself in the Indian market.

 MARKETING STRATEGY AND ANALYSIS

A marketing strategy is a process that can allow an organization to concentrate its limited

resources on the greatest opportunities to increase sales and achieve a sustainable competitive

advantage. Any organization that wants to exchange its products or services in the market

place successfully should have a Strategic Marketing plan to guide the allocation of

its resources. A strategic marketing plan usually evolves from an organization‟s overall
corporate strategy and serves as a guide for specific marketing programs and

policies. Marketing strategy is based on a situation analysis- a detailed assessment of the

current marketing conditions facing the company, its product lines, or its individual

brands. From this situation analysis, a firm develops an understanding of the market and the

various opportunities it offers, the competition and the market segments or target markets the

company wishes to pursue. Marketing strategy is the complete and unbeatable plan, designed

specifically for attaining the marketing objectives of the firm/business unit. The marketing

objectives indicate what the firm wants to achieve; the marketing strategy provides the design

for achieving them .For example, if the marketing objectives of a business unit stipulate that

next year, it should achieve a sales revenue of Rs. 1,000 crore and a net profit of 15 percent

of sales revenue, it is the job of marketing strategy to indicate how and wherefrom this sale

and profit will come, which product lines/products/brands will accomplish this task and how.

Marketing strategy forms an integral part of marketing planning. A marketing strategy is

most effective when it is an integral component of corporate strategy, defining how the

organization will successfully engage customers, prospects, and competitors in the market

arena. It is partially derived from broader corporate strategies, corporate missions, and

corporate goals. As the customer constitutes the source of a company's revenue, marketing

strategy is closely linked with sales. A key component of marketing strategy is often to keep

marketing in line with a company's overarching mission statement.

MARKETING AND PROMOTIONS PROCESS MODEL:

Development of marketing program requires an in-depth analysis of the

market. This analysis may make extensive use of market research as an input

into the planning process. This input, in turn, provides the basis for the
development of marketing strategies in regard to product, pricing, distribution

and promotion decisions. Each of these steps requires a detailed analysis, since

this plan serves as the road map to follow in achieving marketing goals. Once

the detailed market analysis has been completed and marketing objectives

have been established, each element in the market mix must contribute to a

comprehensiveintegrated marketing program. Of course, the promotional progra

m element must be combined with all other program elements in such a way as

to achieve maximum impact.

FORMULATING THE MARKETING STRATEGY

Basically, formulation of marketing strategy consists of three main tasks:

1. Selecting the target market,

2. Positioning the offer,

3. Assembling the marketing mix.

This implies that the essence of the marketing strategy of a firm for a given product or brand

can be grasped from the target market chosen, the way it is positioned and how the marketing

mix is organized. The target market shows to whom the unit intends to sell the products;
positioning and marketing mix together show how and using what uniqueness or distinction,

the unit intends to sell. The three together constitute the marketing strategy platform of the

given product.

SELECTING THE TARGET MARKET:

To say that target market selection is a part of marketing strategy development is just stating

the obvious. It does not fully bring out the import of the inseparable linkage between the

two. When the selection of the target market is over, an important part of the marketing

strategy of the product is determined, defined and expressed. Marketing targeting

simply means choosing one‟s 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.

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.

STRATEGIC MARKET SEGMENTATION:

Market Segmentation is “dividing up a market into distinct groups that

(1) Have common needs and

(2) Will respond similarly to a marketing action”,

which was said by Eric N.Berkowitz, Roger A.Kerin, and William Redulius

The Segmentation process involves five distinct steps:

➢ Finding ways, to group consumers according to their needs

➢ Finding ways to group the marketing actions – usually the products offered – available to

the organization.

➢ Developing a market-product grid to relate the market segments to the firm‟s products or

actions.

➢ Selecting the target segments towards which the firm directs its marketing actions.

➢ Taking marketing actions to reach target segments

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 consumer forms yet another base. The various types

of segmentations are:

a) Geographic segmentation
 b) Demographic segmentation

c) Psychographic segmentation

d) Buyer behavior

e) Benefits segmentation

f) Volume of purchase segmentation

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 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 PRODUCT POSITIONING:

 Where is the new offer going to compete? As what?

  Which product function/customer need is it trying to meet?

 What other product categories serve this need?

 In other words, what are the substitute products that serve the same need?

 Where is the real gap, where is such a new offer most welcome and wanted by the

market?

 What are company‟s competencies to fight here?

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 consumer‟s evaluation and perception? What is the most favoured

position…? And yet vacant? Can the new brand claim the needed distinction and take the

position and satisfy the need? The major dimension of marketing strategy relates to

positioning of the offer. The firm has already selected the target market and decided its basic

offer. Now, what is the conjunction between these two entities? How do they get

connected? What is the interface? In other words, what is the locus the firm seeks among the

customers in the chosen target market with its offering? How would the firm want

the consumer to view and receive the offer? These are the issues the firm has to grapple with

in positioning. And, while formulating the marketing mix too, the firm will agitate over these

issues. The Product Differentiation and Positioning discusses the multifarious issues involved

in the subject.

PRODUCT REPOSITIONING :
Products do undergo „repositioning‟ as they go along their life cycle. In some cases, even

products that are fairing well are repositioned. This is done mainly to enlarge the reach of the

product offer and to increase the sale of the product by appealing to a wider target

market. The product is provided with some new features or it is associated with some new

target segments.

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 organization‟s communications with the market The basic tools used to accomplish an

organization‟s communication objectives are often referred to as the promotional mix.

THE PROMOTIONAL MIX

 Advertising

 Direct marketing

 Interactive/ internet

 Sales promotion

 Publicity/Public relations

 Personal selling
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.

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 CD-

ROMs, Kiosks, and interactive television.

SALES PROMOTION:
The next variable in the promotional mix is sales promotion, which is generallydefined 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, sales promotion is

generally broken into two major categories: 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, sweep stakes ,and various

point-of-purchase materials. Trade-oriented sales promotions are targeted towards marketing

intermediaries such as wholesalers, distributors and retailers.

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

persuade prospective buyers to purchase the company‟s 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 customer‟s reactions.

ASSEMBLING THE MARKETING MIX:

Assembling the marketing mix means assembling the four Ps of marketing in the

best possible combination. Involved in this process are the choice of the appropriate

marketing activities and the allocation of the appropriate marketing effort/resources to each

one of them. The firm has to find out how it can generate the targeted sales and profit. It
considers different marketing mixes with varying levels of expenditure on each marketing

activity and tries to figure out the effectiveness of different combinations in terms of the

possible sales and profits. It then chooses the combination/mix of products, price, place and

promotion that is best according to its judgment. Since marketing is essentially an interaction

between the marketing mix and environmental variable, and since the latter and non-

controllable, marketing becomes synonymous with assembling and managing the marketing

mix. Of course, while assembling the marketing mix, the marketing manager will take due

note of the environmental variables.

Not only will he take due not of them, he will ensure that his marketing mix suits the

environmental variables. And, it is this factor that renders the task much more complex.

MARKEGING MIX: THE SOLE VEHICLE FOR CREATING AND

DELIVERING CONSUMER VALUE

The four elements mentioned above- product, distribution, promotion and pricing constitute

the marketing mix of the firm. The marketing mix is the sole vehicle for creating and

delivering customer value. It can be easily seen that all activities and programmes, which a

marketer designs and carries out in his effort at winning customers, relate to one or the other

of the above four elements- product, place, promotion and pricing. It can also be seen that in

each of these elements, there are several sub-elements. For example, packaging is one of the

sub-elements of product and warehousing is one of the sub-elements of distribution.

THE FOUR PS OF MARKETING:

It was James Culliton, a noted marketing expert, who coined the expression marketing mix

and described the marketing manager as a mixer of ingredients. To quote him, `The

marketing man is a decider and an artist – a mixer of ingredients, who sometimes follows a

recipe developed by others and sometimes prepare his own recipe. And ,sometimes he adapts

his recipe to the ingredients that are readily available and sometimes invents some new

ingredients, or, experiments with ingredients as no one else has tried before. Subsequently ,

Niel H.Borden, another noted marketing expert, popularized the concept of marketing mix. It

was Jerome McCarthy, the well-known American professor of marketing, who first described

the marketing mix in terms of the four Ps. He classified the marketing mix variables under

four heads, each beginning with the alphabet “P”.

I. Product

II. Place

III. Price

IV. Promotion

McCarthy has provided an easy-to-remember description of the marketing mix variables. Over

the years, the terms – Marketing mix and Four Ps of marketing have come to be used

synonymously. Assembling and managing the marketing mix is the crux of the marketing

task. And, it is through the marketing mix that the marketing manager achieves the marketing

objectives.
MARKETING STRATEGIES FALL UNDER TWO CATEGORIES:

We have seen that target market selection, positioning and marketing mix formulation

together constitute marketing strategy. We have also seen that a firm can assemble the

marketing mix elements in many different ways, depending on the relative weight

age it assigns to the different elements.

The scope to carve out different combinations is, in fact immense. As a result, business firms

are able to employ an abundance of strategies and strategy stances in their relentless race to

stay ahead of competition.

However, a close scrutiny will reveal that all these strategies can be fitted into two broad

categories:

1. PRICE ORIENTED MARKETING STRATEGY

2. DIFFERENTIATION ORIENTED MARKETING STRATEGY

In other words, there are only two broad routes available for forging marketing strategies: any

strategy has to be ultimately either a price-oriented strategy or a differentiation-oriented

strategy.

PRICE ORIENTED MARKETING STRATEGY:

Firms taking to the price route in marketing strategy compete on the strength

of pricing. They use price as their competitive lever. They juggle the price of their product to

suit the prevailing competitive reality. They can affiat to offer lower prices and still make the

targeted profits. They elbow out competition with the cushion they enjoy in the matter

of pricing. Price route requires cost leadership, evidently, a firm opting for the price route

will have to have a substantial cost advantage in their operations. It should be enjoying an

overall cost leadership in the given industry and its lower cost should enable it to secure

above average returns, inspite of strong competition. The cost advantage can emanate from

different factors like, scale economies, early entry, a large market share built over a period of

time, locational advantage, or synergy among the different businesses. The firms whole

strategy, in fact will revolve around building such cost advantage. To successfully practice a

price-led strategy, a firm should have consciously taken to the idea sufficiently early in its

evolutionary process and prepared itself for adopting such a strategy.

DIFFERENTIATION ORIENTED MARKETING STRATEGY:

The differentiation route of strategy revolves around aspects other than price. It works on the

principle that a firm can make its offer distinctive from all competing offers and win through

the distinctiveness. And, a firm adopting such route can price its product on the perceived

value of the attributes of the offer and not necessarily on competition-parity basis. Maximum

scope for exploiting differentiation remains with the product. While all the 4Ps of marketing

are important elements from the point of view of strategy, the other Ps normally go as

elaborations of the offer, while the product forms its core. Product differentiation is of vital

importance in product management and has great potential in forgoing successful marketing

strategies. The product can be differentiated along two major planks:

1. Tangible product attributes and functions,

2. Intangible characteristics and emotional associations.

The tangible product attributes and functions are Differentiation based on ingredients,
Differentiation based on functional value,

Differentiation based on additional features, Packaging contributing to differentiation,

Differentiation based on Quality, Operational Efficiency, Technology, Service.

DIGITAL MARKETING:

Digital Marketing is the practice of promoting products and services using digital distribution

channels to reach consumers in a timely, relevant, personal and cost-effective manner. Whilst

digital marketing does include many of the techniques and practices contained within the

category of Internet Marketing, it extends beyond this by including other channels with which

to reach people that do not require the use of The Internet. As a result of this non-reliance on

the Internet, the field of digital marketing includes a whole host of elements such as mobile

phones, sms/mms, display / banner ads and digital outdoor.

BUZZ MARKETING (WORD OF MOUTH):

Word of mouth, is a reference to the passing of information by verbal means, especially

recommendations, but also general information, in an informal, person-to-person manner.

Word of mouth is typically considered a face-to-face spoken communication, although phone

conversations, text messages sent via SMS and web dialogue, such as online profile pages,

blog posts, message board threads, instant messages and emails are often now included in the

definition of word of mouth. There is some overlap in meaning between word of mouth and

the following: rumor, gossip, innuendo, and hearsay; however word of mouth is more

commonly used to describe positive information being spread rather than

negative, although this is not always the case.

Word-of-mouth promotion, also known as buzz marketing and viral advertising, is highly

valued by advertisers. It is believed that this form of communication has valuable source

credibility. Research points to individuals being more inclined to believe WOMM than more

formal forms of promotion methods; the receiver of word-of-mouth referral stands to believe

that the communicator is speaking honestly and is unlikely to have an ulterior motive (i.e.

they are not receiving an incentive for their referrals). In order to promote and manage word-

of-mouth communications, marketers use publicity techniques as well as viral marketing

methods to achieve desired behavioral response. Influencer marketing is increasingly used to

seed WOMM by targeting key individuals that have authority and a high number of personal

connections.

EVANGELISM MARKETING:
It is an advanced form of word of mouth marketing (WOMM) in which companies develop

customers who believe so strongly in a particular product or service that they freely try

to convince others to buy and use it. The customers become voluntary advocates, actively

spreading the word on behalf of the company. Evangelism literally comes from the three

words of 'bringing good news' and the marketing term justly draws from the religious sense,

as consumers are literally driven by their beliefs in a product or service, which they preach in

an attempt to convert others.

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-Offs Offer:

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.

Dealer stock display contests:

It is a type of point of purchase advertising which uses the show windows of the dealer

for providing exposure to the sponsor‟s products. Dealer participating enthusiastically and

creatively are awarded.

DEFENDING MARKET SHARE:

While trying to expand total market size, the dominant firm must continuously defend it

current business against rival attacks. This step is very much essential for the market leader

firm because the challenger firms are constantly to exploit the weaknesses of the leader firms.

EXPANDING MARKET SHARE:

Market leaders can improve their profitability by increasing their market share. But for few

market leaders whose share in the total market is insignificantly high, the expansion of

market share n the total market may be proved both as expensive and risky. Therefore it is

better for such leader firms in spending their time in building up the market size rather than

expanding the market share. The reason for this action may be attributed to two factors:
1. The market leader firms might attract the provisions of various anti-trust legislations. The

rival competitors will try to force the Government to bring

legislations against the “MONOPOLIZATION”

2. The second reason being the economic factors. The cost of making further gains in the

market share after a large share has been achieved may rise fast and reduce the profit margin.

INNOVATION STRATEGY:

The market leader may innovate several strategies in respect of new product ideas, customer

services, means of distribution, cost cutting discovery. In addition to these, a leader may

discourage its competition particularly challenge firm.

FORTIFICATION STRATEGY:

In order to protect its market share, the market leader may try to keep it product prices

reasonable in relation to the perceived valued of the offer and competitors offer. The leader

produces it brand in a variety of sizes and firms.

CONFRONTATION STRATEGY:

If leader firm faces an extremely aggressive challenger, whose actions demand a quick and

direct response. In such a situation, the market leader will engage any promotional war,

engaging in a massive promotional expenditure that the aggressive challenger cannot

match. The leader firm may engage in the price war whenever a new challenger is
considering to entering its market. This strategy will frighten the potential competitions and

make then to withdraw from entering the market.

MARKETING STRATEGIES OF FIAT:

 Product differentiation based on operational efficiency:

FIAT EXCELLING THROUGH SERVICE:

Fiat tries to differentiate its offer on the plank of service. It has gone in for a new norm

in customer service: “ fix it right-the first time-on time”. Fiat is also supplying videotapes showing

how repairs have to be done.

 Adopting Offer to Suit Target Segment:

FIAT MODIFIES ITS MODELS FOR INDIA:
 Higher ground clearance to make the car more compatible to the rougher road surface

in India.

 Stiffer rear springs to enable negotiating the ubiquitous pot holes 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.)

Strategic Segmentation Of Cars:

The Fiat in India has launched the car only for few segments of people. The segmentation of

car buyers based on price preferences is:

• Family car segment:

These cars form a reasonably sizeable segment of the market (around 15 percent). Preferred

price range is from 5 lakh to 6.5 lakhs. “FIAT GRANDE PUNTO DYNAMIC” and “FIAT

GRANDE PUNTO ACTIVE” come under this type of segment. These are its hatchback

models.

• Premium car segment:

This segment represents buyers who need a real world-class car and are willing to pay the due

price. Preferred price range starts from 8 lakh to 12 lakh. “FIAT GRANDE LINEA T- JET”

and “FIAT GRANDE PUNTO SPORTS” come under this segment of cars. These are

hatchback models.

• SEDAN segment:
The buyers of this segment like to have big vehicles. Their body is designed similar to off

road vehicles, which can withstand to Indian roads. These cars provide adequate seating

space at the rear side having a fixed full - height roof. “FIAT LINEA 1.3 MULTIJET

EMOTION” and “FIAT LINEA CLASSIC PLUS MULTIJET” which features a price of

around 10 lakhs, occupies this segment.

STRATEGIC PROMOTIONS BY FIAT:

Fiat follows the promotions at two levels, they are:

1) Promotions of product directly by the manufacturer.

2) Promotions at dealer level.

In the first step the products of vehicles manufactured by the Fiat Automotives are

directly promoted by the manufacturer himself. He follows many promotional strategies like:

1. Advertising through television and newspaper.

2. Internet or interactive marketing.

3. Direct marketing.

MARKETING STRATEGIES OF LR AUTO

In the second step the dealer of the vehicles promotes the vehicles. The various promotional

strategies followed by the Fiat dealers are:

1. The dealers provide credit facility to their customers and act as mediator between the bank

and the customer in order to ease the purchasing process for them. The customer provides

relevant documents to the dealers who in turn acquire the sanction letter from the bank after

making proper scrutiny about their CIBIL scores and other grades.

2. Direct Mail Advertising: It includes circulation of catalogues, price list, brochures,

calendars, sending emails, sms, etc to the prospects and the customers of the company.

3. Press Advertising- This involves use of newspapers, magazines, and trade journals for

advertising the features and benefits of the car model.

4. Organizing Customer‟s Meet- Here, a small party is thrown for the prospects and

customers of the car at the showroom, where attractive displays are made depicting the

quality and features of the car. It establishes goodwill of the brand in the market and is

considered as one of the modern and innovative method of promoting the sales.

5. Field visit and Demo Activity: Various road shows at the potential customer markets

leads to branding of the car as well as help in lead generation.

6. Mall Displays: Here, the car is kept for display in a particular shopping mall which

evidences the highest footfalls. Thus, the car becomes a centre of attraction for every person

stepping into the mall.

7. Audio advertising: The famous radio channels are used to advertise the car features and

values which makes the common masses aware about its presence in the market.
8. Mesmerizing Delivery Process: This generates a feeling of satisfaction and loyalty

among the customers as the phenomenal ceremony renders joy in everyone‟s heart when the

keys of the car is finally handled to the customer.

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 affiat 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:

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 Fiat gives a special offer of free insurance on the purchase of each vehicle to its new

customers.
STRATEGIC SALES STANDARDS:

Fiat maintains strategic sales standards in the following manner. The Sales faculty is clean,

tidy and inviting, making customers comfortable while purchasing products and availing

services. Customers are courteously acknowledged within two minutes of their arrival and are

advised that a Sales Consultant will be available upon request. The Sales Consultant‟s

appearance and dress will be of the highest standards. An advisory relationship is established

between the customer and the Sales Consultant who listens to the customer, identifies their

needs and ensures that they are met. A pleasant, non-pressured purchase experience will be

provided during which a thorough demonstration of the vehicle features and benefits will be

made. A test drive will be offered to all customers. Using a check list, the Sales Consultant

delivers the vehicle in perfect condition when promised. Customers will be contacted within

one week after delivery to ensure total satisfaction.

MAINTAINING SERVICE STANDARDS:

An efficient service facility allows a customer to avail all the service provided by Fortune

Fiat, in a clean and welcoming environment. An appointment is available within 5

working days of the customer‟s request. Customers are courteously acknowledged within two

minutes of their arrival and the write-up will begin with five minutes.

Service needs are courteously identified, accurately recorded on the repair order and verified

with the customer. The vehicle is serviced right on the first visit.

The vehicle is ready on the agreed upon time. A through explanation of work done,
warranty coverage and charges is given to the customer. All service repair work will be

followed up within five working days. Each vehicle will be washed before being returned to

the customer.

EXTENDED WARRANTY:

Fiat gives an extended warranty to its customers for another two years or 1,50,000 Kms from

the date of sale of the vehicle, where there will be an 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 (example, 1yr/2yrs but unlimited mileage cap)

♦ Covers all Mechanical and Electrical Failures

♦ Covers labour

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

Benefits to customer

♦ Protection from manufacturing and material defects

♦ Car can be repaired at any Fiat 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 labour

♦ All repairs carried out by qualified Fiat technicians

♦ Warranty can be transferred when vehicle is sold – better resale value

♦ Total peace of mind

RESEARCH METHODOLOGIES AND LIMITATIONS: MARKETING

RESEARCH:
Definition of marketing research as approved as by the board of directors of the association

of American marketing association is:

“Marketing research is the function which links the customer and public to the

marketer through information – information used to identity and define marketing

opportunities and problems generate define and understanding of marketing as process”.

Simply, marketing research is the systematic design collection analysis and reporting of data

finding relevant to a specific marketing situation facing the company. Carefully planning

through all stages of the research is a necessity. Objectivity in research is all-important. The

heart of scientific method is the objective gathering of the information. The function as

marketing research within the company as to provide the information and analytical

necessary for effective.

➢Planning of the future marketing activity.

➢Control of the marketing operation in the present.

➢Evaluation of marketing results.

A research may undertake any of the three types of research investigation depending upon the

problem. These type of research include:

1. Basic research

2. Applied research

3. Designated Fact Gathering

BASIC RESEARCH:
It is also known as the pure fundamental research, which refers to those studies, sole purpose

of which is the discovery of new information. It is conducted to extend the horizons on given

area of knowledge with no immediate application to existing problems.

APPLIED RESEARCH:
It is attempt to apply the various marketing technique, which have been developed as

research, first and later on they become applied research techniques. It is on attempt to apply

the basic principles and existing knowledge for the purpose of solving operational problems.

DESIGNATED FACT GATHERING:

It refers to a research where the investigation attempts to gather some pre-determined data.

STEPS IN MARKETING RESEARCH:

Marketing research process can be out through following steps:

 Define the problems and research objectives

 Develops the research plan

 Collect the information

 Analysis and interpretation

 Present the finding.

RESEARCH METHOD:
It must be classified on the basis of the major purpose of the investigation. In this
problem description studies have been undertaken, as the objective of the project is to

conduct the market shares study to determine the share of market received by the company to

the competitor.

DATA COLLECTION
The information needed to further proceed had been collected through primary and secondary

data.

PRIMARY DATA:
It consists of information collected for the specific purpose, survey research was used and he

all the details of Fiat and their competitors were contacted. Survey research is the approached

gathering description and information.

CONTACTED METHOD:
The information was solicited by administering structured questionnaire to the customer and

dealers, thus getting to know directly from the dealers their sales before and after sales

service.

SECONDARY DATA COLLECTION:

The secondary data consists of information that already existing somewhere having been

collected for another purpose. Any researcher begins the research work by first going through

secondary data. Secondary data includes the information available with company. It may be
the findings of research previously done in the field. Secondary data can also be collected

from the magazines, news papers, internet other service conducted by researchers.

METHODS OF DATA COLLECTION:

The basic method adopted in conducting the study is a structured questionnaire.

Questionnaire is administered on the sample respondents. How ever there are certain cases

where personal interaction and observation method is followed with the employees to find the

required information.

QUESTIONNAIRE

1. Which of the following Fiat car you own?

a) Fiat Linea
b) Fiat Grande Punto
Data Analysis:

Name of the % of customers

car
Fiat Linea 30
Fiat Grande 55
Punto

Interpretation: This question was meant for taking the information

regarding the most preferred cars among Fiat cars. People prefer Punto
over Linea.

2. What do you like most about your Fiat car?

a) Style/design
b) Comfort
c) Fiat brand
d) Service
Data Analysis:

Customer’s preference Number of customers

Style/ design 25
Comfort 37
Brand 18
Service 20

Interpretation: This question is meant to know the customer’s preferences

and likes towards the car. From the data we can position our product on
the comfort seeking group of people.

3. What do you feel great about your car when compared to other cars
in the market?

a) Fuel efficiency
b) Durability
c) Low maintenance
d) Sound quality
e) Brand name

Data Analysis:

Customer’s perspective No. of customers

Fuel efficiency 12
Durability 8
Low maintenance 5
Sound quality 20
Brand name 30

Interpretation: By this question, we can find that generally people

purchase the car by seeing the brand name only. Sound quality is also one
of the criteria.

4. How did you come to know about this car before purchasing?

a) From friends, relatives (buzz)

b) Advertisements
c) Car experts
d) Sale’s persons visit
e) Auto magazines

Data Analysis:

Source of awareness No. of customers

Buzz 15
Advertisements 20
Car experts 5
Salesperson’s visit 8
Auto magazines 9

Interpretation: The major media that attracted the customers is television.

5. Can you share your experience with after sale service support?

a) Very much satisfied

b) Satisfied
c) Ok
d) Not satisfied

Data Analysis:

Post service experience No. of customers

Very much satisfied 6
Satisfied 15
Ok 25
Not satisfied 4

Interpretation: This question is meant to know the service levels of the

authorized dealers. Mostly, the customers are at indifferent attitude with
the service.

6. Where do you get your car serviced regularly?

a) At authorized service centre

b) At a local workshop near my home

Data Analysis:

Place of service No. of customers

Service centres 41
Local workshop 9

Interpretation: Most of the customers get their car service only at the
authorized service centres. From this we come to know the importance of
these places.
7. Which bank do you prefer in getting financial help while purchasing
a car?

a) ICICI
b) Mahindra and Mahindra
c) SBI
d) Other

Data Analysis:

Name of the Bank No. of customers

ICICI 15
Mahindra and Mahindra 8
SBI 20
Others 6

Interpretation: Most of the customers rely on SBI and ICICI bank for getting
financial help for purchasing the car.

8. To which media do you get expose regularly?

a) Televisions
b) Magazines
c) News papers
d) F.M/Radio

Data Analysis:

Media No. of customers

Televisions 30
Magazines 8
Newspapers 18
FM radio 4

Interpretation: It shows that television is playing a significant role in

spreading awareness about the product among the people.

9. Which kind of T.V. channels do you watch regularly?

a) National news channels

b) Regional news channels
c) Sports channels
d) Entertainment channels
Data Analysis:

TV channels No. of customers

National channel 10
Sports channel 16
Regional news channel 4
Entertainment channel 20

Interpretation: This question is meant for knowing interest and

preferences of the customers towards TV channels.

10. What’s your opinion on the price list of Fiat cars?

a) Affordable by common man

b) Affordable only for rich man
c) Can’t say
Data Analysis:

Customer opinion No. of customers

Affordable 10
Not affordable 45
Can’t say 4

Interpretation: It shows that cars are too expensive for an economic man of
the society.

11. What kinds of offers do you like or expect from the dealer?

a) Free insurance
b) Special discount on sale of cars
c) Extending the service period
d) Finance availability with 0% interest
Data Analysis:

offers No. of customers

Free insurance 12
Special discount 5
Extensions 18
Soft loans 25
Interpretation: Here we come to know about the various promotional
techniques that attract the customers. The customers are expecting soft
loans and extensions in service period from the dealers.

12. How do you feel when an unknown sales person approaches you by
knowing your full details to demonstrate about any product?

a) I will not respond

b) Lost my privacy
c) Interested in knowing (if I feel a need of it)
Data Analysis:

Customer’s opinion No. of customers

No response 11
Lost privacy 5
Interested in knowing 34

Interpretation: This question is prepared indirectly to know the customer’s

opinion about the Data bank maintenance by Fiat car dealers. Majority of
them gave a positive reply showing an interest in knowing about the cars.

13. What’s your opinion on a Brand Ambassador for the cars?

a) Very necessary
b) Not needed
c) Waste of money for manufacturer
Data Analysis:

Customer’s opinion No. of customers

Very necessary 40
Not needed 7
Waste of money 2

Interpretation: The question is meant to know the importance of brand

ambassador for cars. People believe in its necessity.

14. What is your opinion about the current Ambassador Sushmita Sen for
the car Fiat Linea T-jet?

a) Fulfilled the purpose

b) Unable to attract customers
c) She is not apt for it.
Data Analysis:

Customer’s opinion No. of customers

Fulfilled the purpose 38
Failed 10
Not apt 2

Interpretation: People are satisfied with the current brand ambassador

who fulfilled the purpose of promoting the cars.

15. What other brand(s) did you seriously consider before making this car
purchase?

a) Toyota
b) Skoda
c) Maruti
d) Honda
Data Analysis:

Customer’s choice No. of customers

Toyota 19
Skoda 9
Maruti 12
Honda 8

Interpretation: This question gives an idea about the competitors of Fiat

cars thriving in the market.

Thanks for taking the time to fill out this questionnaire and for providing
valuable
information. It will be used for my project work, market research studies and
reports. We do not share or sell your name, address or any other data with any
outside company for any purpose.

VALUABLE SUGGESTIONS GIVEN BY FIAT CUSTOMERS:

 Please try to increase the number of Service centers.

 Keep Service Stations at main locations of the city where many customers

feel it easy to go to service centers..

 Please recruit efficient service men in the service centers. The service men in

the service centers are unable to understand the problems told by us, and

they are not resolving the cars problems.

 Provide information on service and mileage regularly.

 Please provide information about new cars along with their price lists at

least once in 6 months.

 Advertisements through televisions can influence many categories of people. So try to

concentrate on this segment. We don‟t see or find much of the Fiat car advertisements

in T.V except Linea.

 Try to provide financial facility at 0% interest.

 Customer should be educated about the maintenance of the vehicle. i.e. maintenance

tips should be provided.

 The quality of the sun proof coating used is of very low quality, vehicle

colour is getting shaded very quickly.

 Please send the specially appointed feedback taking staff on Sunday

evenings only.

 The sales people present in the showroom respond to us properly when we

come to purchase a new car, but they do not respond when we come to tell

our problems regarding the cars.

CONCLUSION
The brand Fiat has been working for quite a long time in the Indian economy. It has produced

various affordable models for the people. The marketing strategies adopted by the brand as

well as its dealers is rightly justified. According to the results derived from the customer

feedback, one can come to the conclusion that still a lot more is left to be done. Recently, Fiat

has merged itself with Chrysler and became a complete subordinate to it. Hence, efficiency in

the work is expected after a change in the organizational set up.

There are certain loopholes lying in the internal working conditions of the automobile

dealership company. these are needed to be addressed as soon as possible to promote the

demand for the Fiat cars in the market. Also, new marketing strategies should be innovated

by the dealers at their own level which can prove as an advantage over the competitors and

support the growth of market share. Currently, the market share of almost each car brand is

1%. Hence, a stiff competition is faced by all.

As the cars offered by the dealers belong to the taste of high class customers and affluent

people, the dealers must try to link their contacts with such prospects for generating leads. An

advantage of having a customer base of High Net Worth individuals is that such prospects do

not make much time on decision making and provide a ready check without serious

negotiations. Hence, a first impression made would help the dealers in grabbing the lasting

association and true loyalty from its customers. Organizing customer‟s meet is one of the

innovative and welcome step in this area.

ROAD AHEAD
Fiat Linea had been doing really good on the Indian roads and this prompted Fiat India into

launching the more powerful version of the Fiat Linea- the Turbo Charged Linea. The car

has been christened the Linea T Jet. This car is an improvement over the earlier model of the

Linea and comes with a stronger engine and better features as well. The car costs Rs 8,99,059
on the Indian roads. So, the future of four wheelers in India is promising. Indian Automobile

has a lot of scope for four wheelers due to development in infrastructure of the country. The

Indian auto market is still untapped the majority of the people in country don‟t own a four

wheeler and all the major auto companies are trying to increase their sales by several moves.

Easy availability of finance and rising income levels are encouraging the middle class

population to choose from the vast range of passenger vehicles. India is 16th in the world in

terms of nominal factory output. The service sector is growing rapidly in the past few years.

By analyzing the current trend of Indian Economy and Automobile Industry we can say that

being a developing economy there is lot of scope for growth and this industry still have to

cross many levels so there is huge opportunities to invest in and this is proving as more and

more foreign Companies setting up there ventures in India. The Government of India allows

100 per cent FDI in the automotive industry through automatic route. The growth rate of

Indian Automobile is so fast that by 2016 Indian Industry will be among world‟s 7 largest

manufacturer in all sections.

SUGGESTIONS AND RECOMMENDATIONS

 There is huge opportunity of growth for the automobile sector in the coming year, so

the dealers must patiently follow the guidelines of the parent company and maintain

the standard in the market.

 The company can hire the services of Curata which is a global agency in creating

useful database for maintaining the demands of the customers.

 The branches can be opened in many new areas for diversification and the company

should also think of providing other auto parts for its customers in order to cover the

entire range of an automotive industry.

 Soft loans should be provided to the customers for safeguarding their loyalty and

generating leads.

 Internal loopholes can be checked for minimizing the number of complaints received

by the customers.

 Number of employees can be increased.

 The problems stated by the customers should be carefully looked into and get solve ds

quickly as possible.

QUESTIONNAIRE

 1. Which of the following Fiat car you own?

 a) Fiat Linea
 b) Fiat Grande Punto

 2. What do you like most about your Fiat car?

 a) Style/design
 b) Comfort
 c) Fiat 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
 c) Low maintenance
 d) Sound quality
 e) Brand name

 4. How did you come to know about this car before purchasing?

 a) From friends, relatives (buzz)

 b) Advertisements
 c) Car experts
 d) Sale’s persons visit
 e) Auto magazines

 5. Can you share your experience with after sale service support?

 a) Very much satisfied

 b) Satisfied
 c) Ok
 d) Not satisfied

 6. Where do you get your car serviced regularly?

 a) At authorized service centre

 b) At a local workshop near my home

 7. Which bank do you prefer in getting financial help while

purchasing a car?

 a) ICICI
 b) Mahindra and Mahindra
 c) SBI
 d) Other

 8. To which media do you get expose regularly?

 a) Televisions
 b) Magazines
 c) News papers
 d) F.M/Radio

 9. Which kind of T.V. channels do you watch regularly?

 a) National news channels

 b) Regional news channels
 c) Sports channels
 d) Entertainment channels

 10. What’s your opinion on the price list of Fiat cars?

 a) Affordable by common man

 b) Affordable only for rich man
 c) Can’t say

 11. What kinds of offers do you like or expect from the dealer?

 a) Free insurance
 b) Special discount on sale of cars
 c) Extending the service period
 d) Finance availability with 0% interest

 12. How do you feel when an unknown sales person approaches you
by knowing your full details to demonstrate about any product?

 a) I will not respond

 b) Lost my privacy
 c) Interested in knowing (if I feel a need of it)

 13. What’s your opinion on a Brand Ambassador for the cars?

 a) Very necessary
 b) Not needed
 c) Waste of money for manufacturer

 14. What is your opinion about the current Ambassador Sushmita

Sen for the car Fiat Linea T-jet?

 a) Fulfilled the purpose

 b) Unable to attract customers
 c) She is not apt for it.

 15. What other brand(s) did you seriously consider before making
this car purchase?

 a) Toyota
 b) Skoda
 c) Maruti
 d) Honda
 Thanks for taking the time to fill out this questionnaire and for providing
valuable information. It will be used for my project work, market
research studies and reports. We do not share or sell your name, address
or any other data with any outside company for any purpose.

ANNEXURE

ABOUT LR AUTO

Car Enterprises Pvt Ltd. is a local dealership company for Fiat car models in the capital city

of Raipur, Chhattisgarh. It was established in the year 2009 and commenced its operations

from 6th march, 2013 for Fiat cars. The company also deals in luxurious Mitsubishi car brand

“Pajero sport‟ as its diversified business. The shareholding of the company is among the

family members of the head of the organization, Mr. Amit Agrawal. The company has its

branch in Bilaspur city and owns a dealership in the city of Korba too.

It deals in all the models of Fiat cars launched by the company. Apart from this, the company

also provides exchange facility for second hand cars to its customers at reasonable prices,

thus, converting the customers of other brands to the consumers of Fiat. It works in

collaboration with various financial institutions like HDF, PNB, SBI, Tata Capital, MFSN,

Mahindra and Mahindra.

LR Auto promotes the theme of “More features more benefits” for its Fiat cars. The company

has a well defined HR policy for all its employees which is a rare feature for an automobile

dealership company. The employees follow the principle of “frugality” for maintain

efficiency in the organization. There is proper dress code assigned to every section of
employees. The staff group consists of 105 people in the organization. Every person is

recruited for their specialized skills. Each person has its own well defines authority and

responsibility. The company follows the model of line and staff for supporting the work

culture of the organization. The approach is flexible with an adequate blend of formal and

informal type of work system. The company has a vertical hierarchy which helps in

maintaining a quick reporting system in the concern. Thus, tasks are completed on time and

employees are consequently appraised. The following figure depicts the organization

structure.

Today, automobile sector in India is one of the key sectors of the economy in terms of the

employment. Directly and indirectly it employs more than 10 million people and if we add

the number of people employed in the auto-component and auto ancillary industry then the

number goes even higher. Over a period of more than two decades the Indian Automobile

industry has been driving its own growth through phases. With comparatively higher rate of
economic growth rate index against that of great global powers, India has become a hub of

domestic and exports business. The automobile sector has been contributing its share to the

shining economic performance of India in the recent years.

BIBLIOGRAPHY

 Research methodology book by CR Kothari

 www.google.com

 www.scribd.com

 Economic Times

 LR Auto brochure

 Indian Statistical Organization reports