1. Eicher Motors Case Analysis SDM, NMP Term IV Group 4 Abhijeet Tomar - 03 Argha Ray - 15 Khushal Malik - 28 Vipin Kathuria 59 2.Context LCV market liberalized in 1990 by GOI. DCM Toyota, Allwyn Nissan, Swaraj Mazda and Eicher Mitsubishi are competitors. Toyota has first mover advantage. Eicher recovering from the midst of a financial crisis. Spares and Reach drive sales success. Nascent market cooling off. 3.Market Dynamics: Target segment includes Inter City and Intra City Transport Service Providers, Small and Medium Traders and Cab Service Providers Spares sold through Small Autopart Retailers and Garage Owners. Market infested with unscrupulous middlemen. Long waiting lines as a hangover of License Raj. Toyotas first mover advantage nullified as prominent well located showrooms symbolizes luxury, seldom a consideration for end users seeking usability and low operational costs. 4.Eichers Yardsticks: Slump in Tractor market has caused precarious cash position. Its expertize in Tractor distribution can be easily leveraged. Tractor market slump must have affected Eichers channel as hard as it did Eicher. Diversification proposition into LCV to Eichers channel can be a unique selling point to strengthen relations and mitigate their risks. Spares has to reach every nook and corner of the country to compete with private labels. Existing distribution channel will not need large quantum investments. Design separate channels for LCV and LCV spares. 5.Two Channel Design: 6.Design Rationale: 7.Channel Resonance: Toyotas folly is geared toward a luxurious Car market rather than LCV. Mazdas model may turn out to be more effective in terms of both sales and cost considering the target segment. Carrying both a Tractor and LCV may make more sense for already scathed Tractor Dealers. Impress upon Channel Members that cooling off in LCV market is due to overbooking by middlemen who kept real customers in abeyance due to flawed advance booking model. Removing long waiting lines for immediate possession to real customers by removing advance booking will attract those who bit the dust with other competitors. 8.Channel Selection: Exclusive Eicher Dealers. After sales service is paramount. Select those who had been brother in arms during hard days of Tractor market shock. Quick learners who can seamlessly recast Tractor selling expertize to LCV sales. Downstream partners who show signs of recovery as does Eicher.