ANALYSIS OF OPERATING

ENVIRONMENT AND
COMPETITION

PRODUCT : CARS
Presented by:

Abhishek Mehta(191123)
Midhun A(191148)
Rohit Baliyan(191165)
Rahul Sethi(191163)
Rojit Irom(191166)
Vaibhav Gupta(191174)
FACTORS AFFECTING ENVIRONMENT
 Macro-Environment

 Micro-Environment
MACRO
Macro environment factors
Demographic
 Age 30
30 25
25 20 Upto 25 Years
20 15 26-35 Years
10 36-45 years
15 46-60
10 60 and above
5
0
Respondents

Hyundai is preferred by age group between 26-45, which

constitutes people who have started earning and are
settled in life and are able to afford the expenses.
Demographic cont.
Occupation: 40
40
35 30
30 Government Professionals
25
Business Housewife
20
15 10 10 10 Retired
10
5
0
Respondents

Most of the Hyundai car customers are from

professional back ground and business background
who opt for the luxury and good performed vehicles
Demographic cont.
• Married/unmarried:

30
MARRIED
UNMARRIED

70

• Most of the Hyundai car owners fall under the married segment. It is
termed as complete family vehicle. So the company should try to
maintain and improve the quality and luxury of the vehicle which
should fit for complete family luxury
Economic environment
Pricing:
74
80
70 Highly priced
60
50 Reasonably priced
40
Approximately priced
30 14
12
20 Below level Priced
10 0
0
Respondents

Hyundai cars are reasonably priced, and have

satisfied the customers with the product they are
offering both in their taste and preferences in the
charged prices.
Economic environment cont.
25 25
 Income:
25
20 20 Upto 3,00,000
20
3,00,000 to 5,00,000
15
10 5,00,000 to 7,00,000
10
7,00,000 to 10,00,000
5
Above 10,00,000
0
Respondents

Hyundai provides for cars which can be afforded

by people from all income segments and also the
product matches up to their preferences and taste.
Economic environment cont.
Increasing road development..
Increasing Per Capita income.
Cheaper (decline interest rates) and easier finance scheme.
Socio-culture environment
Pick-up Interior

Mileage Road Handling

Comfort Visibility

Service Backup

Highly satisfied Satisfied Dis-satisfied

Most of the people have different preferences and tastes

regarding engine pickup, interior, mileage, visibility,
comfort, etc.
There are no cultural factors like religion, language, etc on
which car industry depends.
Most people have different preferences in accessories like
power window, power steering, etc.
Technological environment
Interior air quality improvement in new cars-As high
molecule materials such as rubber, plastic, and adhesives
are widely applied in automobiles, interest in improving
the air quality of new car interiors is increasing.
BorgWarner's engineers replaced straight turbine vanes
with a patented S-shaped vane design to improve
thermodynamics, response and control
Hybrid technology has been around a long time but only
recently emerged as a cost effective option for mass
produced vehicles
Natural environment
 Hyundai Motor Company is developing hydrogen fuel–cell
electric cars, with a firm belief in the environmentally friendly
automobile market.
The ultimate goal of developing new and renewable energy
sources is developing and supplying non-polluting vehicles
that have zero gas emissions. At present, hybrid electric
vehicles, which use internal-combustion engines and
electricity as their power source, are gaining attention as a
powerful alternative
Benefits of the hybrid technology are less fuel consumption, as
well as a reduction of smog related emissions, CO2 and
greenhouse gases
Political-Legal factors
Pre-Liberalization Period
 Government protection by use of licenses.
 Heavy excise duty on cars.
 Price discrimination by government.
 High import duty.
Post liberalization
License raj ceased to exit.
Continuous rationalization of excise duty regime.
Reduction in Import duties.
Micro Environmental Factors
Customer
Gaining confidence
Providing Luxury ,comfort and satisfaction
Introducing various programs like Hyundai Loyalty
program, Hyundai customer promise, Hyundai Global
satisfaction Index.
Initiated Before services
Employee and Shareholders
Treating them asset of the company
Looking after the training and development of their
employees
Formulating policies and taking decision keeping in
view shareholder interest
Focusing shareholder by providing satisfaction to its
customers
Supplier and Media
 Devoted their success to suppliers providing quality
products and using cost reduction methods.
Domestic as well as international suppliers
In 2004 introduced Seeburger Software.
Customer relationship strategy
Usage of social media for customer feedback and
response on company performance.
Competitors
Luxurious and stylish products.
Providing Best Quality to their customers
Policy of delivering zero defective vehicles
Focuses on aggressiveness and speed
Better customer services
OPPORTUNITY FOR HYUNDAI
Market Demand
Penetrated village market as well
Dealerships in small towns
Rising working class and middle class
Unexplored rural markets
Improved quality of roads and connectivity
Nuclear family
Industry
 Indian Automobile Industry 7th largest
 Hordes of player in the market
 Concept of hybrid and electric cars
 New technology to be used to upgrade the cars
Consumer
 Demand in terms of quality, price, design and comfort
 Between 2003 and 2009 , 130 million added to working
population
 Purchasing power of middle class and easy credit availability
 Middle income group will grow from 50 million to 550
million by 2025
 FUTURE TRENDS OF INDIAN CAR MARKET

• Whole of the car market will be improving

sales.
• Luxury car segment expected to improve
market share.
• Reduction in market share of higher end
compacts and midsize sedans
• Exponential growth for newly introduced very
low end segment
• Opening up of market for EV and HEV.
IMPACT OF FUTURE CHANGES IN COMPONENTS
OF MARKETING ENVIRONMENT, IN INDIAN CAR
INDUSTRY
Demographic
Socio-Cultural
Political and legal
Economic
Natural
Technology
Government Policies
Micro environment
STUDY OF COMPETITIVE
BEHAVIOUR
Market Structure of Car Industry
Maruti Suzuki India Ltd.
Formerly Maruti Udyog Limited
Brought the automobile revolution to India
Market leader in the car segment, both in terms of volume of
vehicles sold and revenue earned
MUL was started with the aim of producing fuel efficient
vehicles to conserve scarce resources and producing
indigenous utility cars for the growing needs of the Indian
population
Suzuki acquired 26% of the equity and agreed to provide the
latest technology as well as Japanese management practices. In
the present day Suzuki is the majority stake holder in MSIL.
Maruti Vs Hyundai (Marketing Strategy)
Maruti
 Product and Price: Portfolio of 13
brands and over 150 variants
 Trust : Maruti has always spelt
trust - be it with the products
themselves or with the service
standards.
 Dealers and service: sales
network of 802 centres in 555
towns and cities, and provides
service support to customers at
2,740 workshops in over 1,335
towns and cities
Hyundai
Product and Price : Portfolio
of 6 passenger cars across 25
variants
Commitment to providing
Indian customers with
cutting-edge global
technology
Dealers and services: 290
strong dealer network and
580 strong service points
across India
Tata Motors
Established in 1945, Tata Motors is India's largest and only
fully integrated automobile company.
The company's manufacturing base is spread across India.
New plant for Nano coming up in Gujrat.
The foundation of the company's growth in the last few
years is a deep understanding of economic stimuli and
customer needs.
Leading edge R&D in India
Recent success of Tata Nano – the people’s car is proof of it.
Tata Motors also distributes and markets Fiat branded cars
in India.
Comparision of marketing strategies
TATA
 Product and Price : 12 variants across 7
passenger car and utility vehicles
 Has a strong R&D hub in India. Tata
Indica, India's first fully indigenous
passenger car and Tata Nano- the
people’s car have come from the Tata
camp.
 Dealership, sales, services and spare
parts network comprises over 3500
touch points in India
 It banks on its Indianness to sell itself.
TV and media campaigns don’t
generally have big name celebs to sell
their products
HYUNDAI
 Product and Price : Portfolio of 6
passenger cars across 25 variants.
 Only recently launched its R&D
in India in Hyderabad.
 Dealers and services: 290 strong
dealer network and 580 strong
service points across India
 TV and Media advertisements
using popular celebs like SRK ,
Sania Mirza has been a norm
since the beginning for Hyundai
New Entrants in the Industry – A threat to
the main players
Foreign brands like Honda which have predominantly
been operating in the premium and luxury segments
have started looking at the small-lower mid car segment
Nissan’s Micra , Ford’s Figo , GM’s Beat are some of the
new entrants making waves in the small car segment in
India.
Foreign Brands have recognized that this segment is the
major money spinner in the Indian Car Market and
aggressively marketing their products to eat into the
market shares of major players.
THANK YOU