MARKETING PLAN

• ABOUT THE COMPANY

Our company is an AIRBAGS manufacturer providing different types of

airbags which will be placed in the front of the car protecting the car
from major damages. The airbag will use the sensor system to detect
and deploy at a time and a specific distance. Our idea is to minimize the
road accidents and damages due to which numerous individuals every
year lost their lives.

• ENVIRONMENTAL ANALYSIS

Political factors: These are laws and rules that the government enacts
that have an impact on the airbag sector. For instance, all airbag
manufacturers are required to adhere to safety criteria set by regulatory
authorities like the National Highway Traffic Safety Administration in the
US, the European Commission in Europe, and the Ministry of Road
Transport and Highways in India. These rules have an effect on how
airbags are created, manufactured, and distributed, which may have an
effect on how profitable airbag manufacturers are.

Economic factors: These include macroeconomic variables that can

affect the demand for airbags, such as inflation, interest rates, and
consumer expenditure. For instance, buyers may put off buying a car
during a recession, which can lead to a decline in the demand for
airbags. On the other hand, during times of economic expansion,
demand for airbags can rise as a result of increasing vehicle sales.

Social aspects: They include social and cultural factors that have an
impact on the airbag sector. For instance, the demand for airbags may
increase as people become more aware of their importance and the
growing concern for road safety. On the other hand, societal perceptions
about car ownership and driving behaviour may also have an impact on
airbag demand.
 Technical developments that might have an impact on the airbag
business are included below. The effectiveness and safety of airbags, for
instance, might be improved through the creation of sensors and
algorithms that can identify accidents and modify airbag deployment.

Legal aspects: These are rules and laws that have an impact on the
airbag sector. For instance, product liability rules may affect the
responsibility of airbag manufacturers for injuries brought on by
defective airbags. Likewise, the capacity of airbag businesses to
safeguard their technology and stop rivals from stealing their devices
may be impacted by intellectual property rules.

The effect of the airbag industry on the environment is one of the

environmental factors. For instance, rules governing the usage and
disposal of hazardous materials used in the creation of airbags must be
followed by airbag producers. The market for airbags may also be
impacted by a trend towards electric vehicles brought on by growing
concerns about climate change.

You may develop a better grasp of the external environment in which

airbag companies operate by taking each of these aspects into account.
In turn, this can assist you in identifying prospective industry possibilities
and risks so that you can make better marketing selections.

• TARGET MARKET

Channels:

1.Direct sales to car manufacturers and distributors

2.Online sales and marketing to car owners and drivers
3. Partnerships with industry associations and groups
 1. Automotive manufacturers
2. Car rental companies
3. Fleet operators
4. Safety-conscious consumers

• Automotive manufacturers : who want to incorporate new safety

elements into their vehicles could be a potential target market for a new
outside airbag business. The advantages of outside airbags, such as
increased safety and lessened damage to cars and passengers in the case
of an accident, would probably be of appeal to this market.

• Car rental businesses might be a suitable target market because they are
likely to be willing to invest in new safety features to set themselves
apart from rivals and provide their clients more peace of mind.

• The safety advantages of outside airbags for their cars may also be of
interest to fleet operators, such taxi and ride-hailing services. This
market would probably be interested in the additional safety features
and lower repair costs that external airbags may offer.

• Consumers that are concerned about their safety and are looking for
further security for themselves and their automobiles could be a last
potential target group. The safety advantages of outside airbags as well
as any other features that set the product apart are probably of interest
to this market.

Car airbags are designed to provide additional safety and protection to

passengers in the event of a collision or accident. Therefore, car airbags
would be relevant to all drivers and passengers, regardless of age,
gender, or any other demographic factor. However, it is worth noting
that some individuals and groups may be more likely to prioritize safety
features such as airbags when choosing a vehicle.. Additionally,
government agencies and organizations that prioritize road safety may
also place a higher importance on vehicles that include airbags as
standard equipment.
SWOT ANALYSIS
SWOT analysis is a strategic planning tool used to identify and evaluate the
strengths, weaknesses, opportunities, and threats involved in a business or
project. It helps in understanding the current position of the organization or
project and identifying areas for improvement.
1. STRENGTHS

Strengths are basically the positive aspects of the organization or the

project that give it an advantage over the other or basically in
comparison to its competitors. While here talking about our company i.e
Airbag manufacturing company mainly for cars to be fitted in front.

• Increasing Public Awareness: Nowadays , with better flow of

information and globalization , consumers are becoming more
demanding and aware regarding the technological changes
related to safety and want better safety equipments in their
vehicles hence it would benefit our company as bringing up new
technology related to the safety of the drivers along with their
vehicles.
• High Growth rate : As the demand for the airbags are increasing
at a high rate and is also expected to grow at a same rate as
customers are becoming more demanding and aware regarding
the safety , hence bringing up new technology along with a new
product in the market can lead to be a better side of a company
hence leading a company to generate revenue at a shorter time .

• Strong Distribution Network : As this could be a advantegious for

a company , as the company can reach to a large scale of
customers and can provide faster delivery times .
2. WEAKNESSES

Weaknesses are the negative aspects of the organization or project that

put it at a disadvantage compared to its competitors. While talking
about the weaknesses of our company:

• Limited protection: Exterior airbags may not provide enough

protection in certain types of accidents, such as rollovers or
collisions with stationary objects.

• Dependency : As the airbag manufacturing company are

dependant on OEM (automobiles manufacturers ) which make it
prone to automobile market fluctuations . hence to overcome this
weakness we will not be dependant only on car manufacturers
companies we would tries to tie up with the Insurance providers
as it would benefit both insurance agencies as well as our
company as the insurance company would help us to gain orders
in bulk and they will get benefited by paying the cost of airbag
only for the car as engine will be safed which costs higher price in
repairs.

• Increasing cost of vehicles: Cost of new technology airbag would

leads to increase in the cost of a vehicle as this would not only
affects the margins of OEMs as well as customer would
thinks twice buying the same vehicle at the higher price than
before for the new technology.

• Replacement cost: Once the airbag is deployed and the vechiles is

not insured then the cost of that airbag has to be beared by the
customer which would cost somewhere around 80000-100000 rs.

• Vulnerability to Product Recalls : Airbags are critical safety

features, and any defects can lead to product recalls, which can be
costly and damaging to the company's reputation.
 3. OPPORTUNITIES

These are external factors that the organization or project can take
advantage of to improve its position or achieve its objectives.

• Innovation: There is an opportunity for car manufacturers to

continue to innovate and improve the design and effectiveness of
exterior airbags.
• Regulation: As governments around the world increase safety
regulations for vehicles, there may be an opportunity for car
manufacturers to promote the safety benefits of exterior airbags.
• Brand differentiation: Vehicles equipped with exterior airbags
may help car manufacturers differentiate their brands from
competitors, potentially leading to increased sales and market
share.

4. THREATS
These are external factors that may affect the organization or
project in a negative way.
• Consumer acceptance: Exterior airbags are a new and relatively
unfamiliar technology, and consumers may be hesitant to purchase
vehicles equipped with them until they have been proven effective and
reliable.
• Competitive pressure: If one car manufacturer successfully implements
exterior airbags, competitors may feel pressure to adopt the technology
in order to remain competitive.
• Safety concerns: There may be safety concerns related to the use of
exterior airbags, such as the risk of the airbag deploying when it is not
needed or causing injury to pedestrians.
• PORTER’S FIVE FORCES MODEL

The five forces in Porter's model are:

1. The threat of new entrants: This refers to the extent to which new
competitors can enter an industry and compete with existing
businesses. If barriers to entry are high (such as high capital
requirements or strong brand loyalty), the threat of new entrants will
be low. For an airbag manufacturing company , have high barriers to
entry due to the need for significant investment in research and
development, production equipment, and safety regulations. Also
Intense rivalry among existing firms along with high investment
required.

2.The bargaining power of suppliers : This refers to the ability of

suppliers to influence the prices and terms of supply for businesses in
the industry. If there are few suppliers or they have significant
bargaining power, they can charge higher prices or demand favorable
terms. The airbag industry may face limited supplier options due to
specialized components needed for the airbag system, but there could
be some bargaining power if the airbag company has developed long-
term relationships with suppliers. Also, Suppliers has better bargaining
power than the airbag modle manufacturer due to vertical integration
since Suppliers’ products such as sensors, inflator and airbag fabric are
important component for the airbag manufacturer .

3.The bargaining power of buyers : This refers to the ability of buyers to

influence the prices and terms of purchase from businesses in the
industry. If buyers have many choices or can easily switch suppliers, they
can negotiate lower prices or better terms. Airbag companies faces a
high bargaining power of buyers due to the importance of safety in the
automotive industry, which could increase the pressure on companies to
produce high-quality products. Buyers are automobile manufacturers
and has better bargaining power due to High capacity purchase by
buyers

4.The threat of substitutes : This refers to the extent to which

alternative products or services can compete with those offered by
businesses in the industry. If there are many substitutes available or they
offer similar benefits at lower prices, the threat of substitutes will be
high. This industry may face some threats of substitutes from safety
systems that do not rely on airbags, such as collision avoidance systems.

5.Rivalry among existing competitors : This refers to the extent to which

existing businesses in the industry compete with each other. If there are
many competitors and they are all vying for market share, the intensity
of competitive rivalry will be high. Among airbag module manufacturing
firms, intensity of competition is increasing due to high growth rate in
airbag market. Competition in airbag module segment is very intense
with Autoliv 40%, Delphi 9%, TRW 8%, Takata 3% and others 38% market
share after the siccess of our product they may have the possibility of
manufacturing that same product and can capture the market since they
are in this field from a long back at the same time we would be
benefited from first mover advantage.

On contrary , the airbag company should be aware of the competitive

forces within the industry to maintain its profitability and develop
strategies to address any challenges that may arise.
• MARKETING MIX

• Product:
Highlight the unique safety benefits of exterior airbags, such as
improved protection for both vehicle occupants and pedestrians.
Emphasize the advanced technology and innovation behind the design
and implementation of exterior airbags.
Provide clear and concise information on how exterior airbags work and
how they differ from traditional airbags.

A framework for examining the competitive forces that impact an

industry's profitability and allure is the Porter's Five Forces Model.
Michael Porter created the model, which is widely used in corporate
management and strategy.

• Price:
Determine a price point that reflects the added cost of developing and
implementing exterior airbags.
Consider offering exterior airbags as part of a premium safety package,
which could be sold at a higher price point.
Offer financing options or promotional pricing to make exterior airbags
more accessible to a wider range of consumers.

• Place:
Make sure vehicles equipped with exterior airbags are available at a
variety of dealerships and sales locations.
Train sales staff on the benefits and features of exterior airbags to
ensure they can effectively communicate them to customers.
Use targeted advertising and promotions to reach consumers who
prioritize safety in their vehicle purchasing decisions.

• Promotion:
Use social media and other digital channels to educate consumers about
the benefits of exterior airbags and how they work.
Highlight the safety ratings and certifications that vehicles equipped with
exterior airbags have received.
 Partner with safety organizations and advocacy groups to promote the
benefits of exterior airbags and their importance in
improving road safety.

• MARKETING STRATEGIES
Marketing strategies for exterior airbags could focus on the following
aspects:

• Safety: Emphasize the safety benefits of exterior airbags in protecting

pedestrians and cyclists from the impact of a collision. Highlight how this
technology can help prevent serious injuries or fatalities in accidents.

• Innovation: Highlight the novelty and innovative aspect of the

technology. Showcase how the technology works, how it is different
from other safety features, and how it could be a game-changer in the
automotive industry.

• Branding: Create a brand image that emphasizes the values of safety,

innovation, and social responsibility. Position the product as a premium
safety feature for conscious and responsible drivers who prioritize
safety.

• Partnerships: Forge strategic partnerships with automakers, dealerships,

and other automotive-related businesses to promote and showcase the
product. Collaborate with them to develop co-branded campaigns and
events that showcase the technology and its benefits.

• Education: Educate potential customers about the technology, its

benefits, and how it works. Use a variety of channels such as social
media, blogs, webinars, and seminars to provide detailed information
about the product.

• Testimonials: Use customer testimonials and case studies to

demonstrate how the technology has helped protect people from
accidents and reduce injuries.
• Environmental Sustainability: Highlight how the technology can help
reduce emissions by reducing the likelihood of accidents, which in turn
can lead to fewer repairs and replacements, resulting in a lower carbon
footprint.

APPROACHES FOR MARKET STRATEGIES

• Market research: Conduct thorough market research to understand the

target audience, their needs, preferences, and perceptions of safety
features. Identify the potential market segments and their buying
behaviors.

• Competitive analysis: Analyze the competition and their products to

identify the strengths and weaknesses of their offerings. Use this
information to differentiate the product and develop a unique value
proposition.

• Pricing: Set a competitive price point that reflects the product's value
and affordability to the target audience. Consider factors such as
production costs, profit margins, and customer willingness to pay.

• Distribution: Develop a distribution strategy that ensures the product is

available in the right places, at the right time, and in the right quantity.
Consider factors such as the target audience's buying behaviors, sales
channels, and logistics.

• Promotion: Develop a promotional strategy that highlights the product's

unique value proposition and benefits. Use a mix of channels such as
social media, search engine marketing, influencer marketing, and
traditional advertising to reach the target audience.

• Partnership: Forge strategic partnerships with automakers, dealerships,

and other businesses in the automotive industry to promote and
showcase the product. Collaborate with them to develop co-branded
campaigns and events that showcase the technology and its benefits.
• Customer service: Provide excellent customer service to build brand
loyalty and ensure customer satisfaction. Offer warranties, guarantees,
and after-sales support to build trust and confidence in the product.

• Compliance: Ensure compliance with relevant safety regulations and

standards to ensure the product's safety and reliability.

It is important to note that the market strategies for exterior airbags will
depend on various factors such as the product's stage of development,
target audience, and competitive landscape. Therefore, a tailored
approach will be necessary for successful market implementation.

• EVALUATION AND CONTROL

Evaluation and control of exterior airbags involve several factors that

need to be considered to ensure their effectiveness and safety. Here are
some key aspects:

• Testing: Exterior airbags undergo rigorous testing to ensure their

effectiveness and safety. They are tested under different conditions,
including different impact speeds, angles, and environmental conditions.

• Deployment: Exterior airbags need to deploy quickly and precisely in the

event of an impact. The deployment system needs to be carefully
designed to ensure the airbag inflates at the right moment and with the
right amount of force.

• Sensors: Exterior airbags are equipped with sensors that detect an

imminent impact and signal the airbag to deploy. These sensors need to
be carefully calibrated to detect impacts accurately and avoid false
positives.
• Durability: Exterior airbags need to withstand different weather
conditions and maintain their effectiveness over time. They are tested
for durability under different conditions, including exposure to heat,
cold, and humidity.

• Cost: The cost of exterior airbags needs to be carefully considered, as

they can be expensive to produce and install. Cost-effectiveness analysis
can help determine the optimal balance between cost and effectiveness.

• Regulatory compliance: Exterior airbags need to comply with regulatory

standards to ensure their safety and effectiveness. Regulatory bodies
such as the National Highway Traffic Safety Administration (NHTSA) and
the European Commission evaluate and certify the safety of these
airbags before they are allowed in the market.

In summary, evaluation and control of exterior airbags require careful

consideration of their testing, deployment system, sensors, durability,
cost, and regulatory compliance. These factors need to be balanced to
ensure the effectiveness and safety of these airbags.