rohit.docx

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Chapter 1

INTRODUCTION TO THE TOPIC

Todays society is warm with urbanization and demonstration effect. With a view towards it,

there are drastic changes coming up in all sectors even in the automobile industries. The

following information gives an insight about it.

In the present context the companies operate on the principle of natural selection !urvival

"f The #ittest$. "nly those companies will succeed which at best match to the current

environmental imperatives those who can deliver what people are ready to buy. %ut real

mar&eting does not involve the art of selling what the manufacturers ma&e. "rganizationsgain mar&et leadership by understanding consumer needs and finding solutions that delight

consumers. If customer value and satisfaction are absent, no amount of promotion or selling

can be compensating. 'ence the aim of mar&eting is to build and manage profitable

customer relationship.

This is a part of the strategic mar&eting done by every company to achieve it ob(ectives and

goals. To maximize the profits and long)term plans every organization has to follow astrategic planning.

*ar&eting is much more than (ust an isolated business function it is a philosophy that

guides the entire organization towards sensing, serving and satisfying consumer needs. The

mar&eting department cannot accomplish the companys 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 networ& to provide superior customer

value and satisfaction. Thus mar&eting calls upon everyone in the organization to thin&

customer$ and to do all they can to help build and manage profitable customer relationship.

*ar&eting is all around us, and we need to &now that it is not only used by manufacturing

companies, wholesaler and retailers, but also by all &inds of individuals and organizations.

+


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There are four ma(or, powerful themes that go to the heart of modern mar&eting theory and

practice, they are

+. %-I/I01 20/ *2021I01 3"4#IT2%5 6-!T"*54 452TI"0!'I3!.

7. %-I/I01 20/ *2021I01 !T4"01 %420/!.

8. '2405!!I01 05W *2495TI01 T56'0""1I5! I0 T'I! /I1IT2 215.

4. *2495TI01 I0 2 !"6I2: 45!3"0!I%5 W2: 24"-0/ T'5 1"%5.

What marketing is what it does and what it offers;

*ar&eting 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.$*ar&eting 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.$

*ar&eting offers some combination of products, services, information, or

experiences offered to a mar&et to satisfy a need or want$

*ar&eting is an orderly and insightful process for thin&ing about and planning for mar&ets.The process starts with researching the mar&et place to understand its dynamics. The

mar&eter uses research methodologies to identify opportunities, that is, to find individuals all

groups of people with unmeet needs or latent interest in some products or service.

The mar&eting process consists of the following

+. 2nalyzing mar&eting opportunities.

7. /eveloping mar&eting strategies.8. 3lanning mar&eting programs


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*ar&eting strategies in simple terms are the complete and unbeatable plans designed

specifically for attaining the mar&eting ob(ectives of the firm. *ar&eting can be called as a

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

mar&eter plays the following roles

*ar&et leader

2 challenger

2 follower

2 niche

The identification of ob(ectives, both in =uantitative and =ualitative terms, is an essential

bac&drop to strategy formulation. 1oals have a =uality and time frame attached to them.

These are typically spelt out in terms of financial return, mar&et share, mar&et presence, etc.

Thus, the concept of mar&et oriented strategic planning arises with the lin& between the

products the lin& between the products the manufacturer is dealing in and the mar&et

conditions. In this direction, our study deals only with the mar&eting strategies i.e.

promotional strategies of the #ord automotives.

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INTRODUCTION TO AUTOMOBILE INDUSTRYINTRODUCTION TO AUTOMOBILE INDUSTRY

"ne of the fastest growing industries in the world is automobile industry. This automobile

industry even has its influence on the Indian mar&et. 3robably automobile industries occupya large mar&et share in the worlds mar&et as well as in the Indian mar&et. 0early +>? of the

total national income is being incurred from the automobile industry. #rom this we can

estimate how important the automobile industry in the improvement of 1/3 of a country is.

In India automobile industry has a growth rate is at the average of +@)+7?.

INDIAN AUTOMOBILE INDUSTRY SINCE 1947:INDIAN AUTOMOBILE INDUSTRY SINCE 1947:

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

opportunities to one of huge potential and phenomenal growth. Indias 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 li&e =uality and

efficiency were simply not considered.

/ependence of foreign technology was banned and manufacturers were forced to localizetheir productsA import substitution became the order of the day. Though we learnt to localize,

the cars we made were all outdated designs with little or no improvements for decades. The

automotive industry stagnated under the governments stifling restrictions and the Indian car

buyer was saddled with cars of appalling =uality and even then there was a waiting list that at

one point stretched to eight yearsB

This attempt at self)reliance failed miserably because of the industrys isolation from

the best technology. The Capanese and later 9orean 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 &now)how to produce good

cars. "ne of the most important chapters in the Indian automotive industrys history was

written by *aruti. It mar&ed the Indian government getting into the far business in the early

+D>@s, a radical shift in thin&ing after decades of treating cars with disdain.

The *aruti >@@ went on to become the staple car of India and put a nation on wheels. This

little car set a benchmar& for price, size and =uality and structured India as small car mar&et.


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It wasnt till +DD8 that things really started to change for the Indian car buyer. With the

liberalization of the economy, a host of international carma&ers rushed in. %ut most of them

were in for a shoc& as Indian customers re(ected 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. 'yundai and *aruthi delivered, and profited.

The period also saw the emergence of the Indian players li&e Tata *otors and *ahindra E

*ahindra. They rose to the challenge of the *06s and responded brilliantly with the Indica

and the !corpio. This was ironically due to the license ra( that forced Indian carma&ers to be

innovative and develop products frugally. Indias frugal engineering s&ill has now caught theworlds imagination, and an increasing number of carma&ers are preparing to setup ma(or

capacities here.

India is changing fast. Its moving forward. Indias largest)selling car is not its cheapest car,

the >@@. It is the 2lto. 3eoples aspirations are rising and so are their mista&es, have got their

finger on the pulse of the mar&et. 1et the right product and the rewards are handsome.

The Indian auto industry is today bubbling with promise and confidence. Its been a long

(ourney 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 +>D>, %ombay had it first taxicabs bythe turn of the century. In +D@8, an 2merican company began a public taxi service with a

fleet of F@ cars. #or about F@ years after car arrived in India, cars were directly imported.

%efore World War I, around


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The importGassembly of vehicles grew consistently after the +D7@s, crossing 8@,@@@ units by

+D8@. It was during the end of the war that the importance of establishing an indigenous

automobile in India was realized. 3remier *otors, 'industan *otors and *ahindra E

*ahindra set up factories in the +DF, the government announced its famous Hbroad banding policy which gave

new licenses to brad groups of automotive products such as two and four)wheeled vehicles.

Through a liberal move, the licensing system was very much intact. 2 manufacturer had to

submit a phased)manufacturing programmed to the *inistry of Industry specifying the

indigenization progress and allowing for almost complete indigenization within five to seven

years. The biggest hurdle was the foreign)exchange clearance re=uired for these pro(ects.

5xcept for *-, which had direct access to policy)ma&ers, every other manufacturer still

faced a series of obstacles.

!everal new products were launched during this period. 2ll three traditional carma&ers added

new models to their ranges !tandard *otors returned to the car business after +@ years,

when in +D>F it introduced the !tandard 7@@@, a 4over !/+ body with the old two)litre

anguard engine. '* bought in a +DJ7 auxhall ictor in +D>F, transplanted its ageing2mbassador engine into it and the 6ontessa was born.

THE BIRTH O! THE AMBASSADOR:

In +DFJ, a small tail fin was added on either side of the rear fenders, along with a new,

dimpled hood, and the car was re)christened theAmbassador Mark I. The car cost 4s.+J,@@@.

In +DK8, it underwent a frontal facelift with a closely chec&ered grille and was named the

Ambassador Mark II. It would be another +7 years before the 2mbassador got a facelift.

K


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In +DJF, another minor facelift to the same grille and a much bigger frontal facelift turned out

as the *ar& III. The *ar& I, launched in +DJD, was the last of the *ar& cars.

TheAmbassador Novawas launched in +DD@, followed by 2mbassador +>@@ I!L three years

later. The 0ova was the last 2mbassador powered by the +Dcc petrol engine. In 7@@7, was one of the few luxury cars manufactured in

the country in the +D>@s and +DD@s. It was based on the +DJ@s vintage auxhall victor.

While it was initially launched with the +Dcc engine found in the 2mbassador, the

6ontessa was soon given the Isuzu engines. There were three versions of this car ) +.>1M

NIsuzu petrolO, 7.@/M NIsuzu dieselO and the rare 7.@T NIsuzu diesel, turboO. The last

6ontessa rolled out in 7@@7, phased out by the demand for cheap Capanese cars.

!ome of the leading Indian auto players in Indian automobile industry are

3remier,

Tata

*ahindra and *ahindra

*aruti

'industan motors

Pre"#er:Pre"#er:

The story of premier is the story of one mans vision, !eth Walchand 'irachand. 'e not onlygive India its first car factory but also the countrys first aircraft factory 'industan

2eronautics imited and the countrys first modern ship yard, 'industan !hipyard imited

B$#%'( I'a)* +#r*t a$t, +at,r

!eth Walchand 'irachand has first started the trails to establish an Indian car manufacturing

plant in Indian for which he went to -.!.2. where three largest car manufacturing companies

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

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

western countries.

2fter approaching General Motors they insisted on part ownership. !eth Walchand then

moved to second largest automa&erFordA 'enry agreed, but delegated the pro(ect to #ord of

6anada, which refused. #inally the third largest automa&er Chrsleragreed and singed in an

agreement in %ombay in +D


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Chapter 0

COMPANY PRO!ILE

#ord *otor 6ompany

Tpe 3ublic N0:!5 #

!,$'&e& Cune +J, +D@8

!,$'&er 'enry #ord

Hea&$arter* /earborn, *ichigan, -!2

Area *er/e& Worldwide

2e pe,p%e

William 6lay #ord, Cr ) 5xecutive

6hairman

2lan *ulally ) 3resident, 65"

I'&$*tr 2utomotive

Pr,&$t* 2utomotive goods and services

Re/e'$e -!P+7@.+ billion N7@@KO Q+R

Operat#' #',"e -!P)+F.@ billion N7@@KOQ+R

Net #',"e -!P)+7.K billion N7@@KOQ+R

E"p%,ee* 7>8,@@@ N7@@JOQ7R

D#/#*#,'*

#ord 6redit#ord division

incoln

*ercury

3remier 2utomotive 1roup

S$3*#ar#e*

2utomotive 6omponents 'oldings

Caguarand 4over

D
http://studio.financialcontent.com/Engine?Account=prnewswire&PageName=QUOTE&Ticker=Fhttp://en.wikipedia.org/wiki/U.S._dollarhttp://en.wikipedia.org/wiki/Ford#_note-fullyearhttp://en.wikipedia.org/wiki/Ford#_note-fullyearhttp://en.wikipedia.org/wiki/Ford#_note-fullyearhttp://en.wikipedia.org/wiki/Ford#_note-0http://en.wikipedia.org/wiki/U.S._dollarhttp://en.wikipedia.org/wiki/Ford#_note-fullyearhttp://en.wikipedia.org/wiki/Ford#_note-fullyearhttp://en.wikipedia.org/wiki/Ford#_note-fullyearhttp://en.wikipedia.org/wiki/Ford#_note-0http://studio.financialcontent.com/Engine?Account=prnewswire&PageName=QUOTE&Ticker=F


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olvo Ncars onlyO

S%,(a'

%old *oves

'ave you driven a #ord lately;

%uilt #ord Tough

%uilt for ife in 6anada

#eel the difference

*a&e 5veryday 5xciting

e3*#te www.ford.com

!,r& M,t,r C,"pa'is an 2merican multinational corporation and the worldSs third largest

automa&er based on worldwide vehicle sales. In 7@@K, #ord was the second)ran&ed

automa&er in the -! with a +J.F? mar&et share, behind 1eneral *otors N7


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H#*t,r

'enry #ord Nca. +D+DO

!,r& was launched in a converted factory in +D@8 with P7>,@@@ in cash from twelve

investors, most notably,ohn Francis $odgeand+orace %lgin $odgewho would later found

the /odge %rothers *otor ehicle 6ompany. /uring its early years, the company produced

(ust a few *odel TSs a day at its factory on *ac& 2venue in$etroit- Michigan. 1roups of two

or three men wor&ed on each car from components made to order by other companies. 'enry

#ord was


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!ORD IN INDIA!ORD IN INDIA::

#ord started its innings with the *ahindra)#ord (oint venture formed in +DD. The I&on was the first model by a multinational to be developed

specifically for India. Though it was based on the #iesta, it was a uni=ue body style and was

offered and was offered with an option of three engines, including a diesel. The car was a big

hit. The I&on underwent several face)lifts and price cuts to &eep demand high. 'owever,

fresher competition and a reputation for high)maintenance saw sales gradually decline. 2fter

the arrival of the modern and highly)capable #iesta, another made)for)India car, with state)of)

the)art engines, the I&on has been marginalized. The #iesta has pic&ed up where the I&on left

and is selling well.

Though the I&on and #iesta have been the mainstays of #ords production in India, the

company has had limited success with other models. The *ondeo, launched in 7@@+, was a

very talented car by was simply not suited to Indian conditions and earned a reputation for

being exorbitant to maintain.

The 5ndeavour !- was launched in early 7@@< and has sold well for its niche. The

5ndeavour has recently been upgraded in 7@@J and this has boosted the appeal of the big

!-. In 7@@


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!,rt$'e !,r& is a F@F@? Coint enture

set up between two well &nown and reputed families in 'yderabad, the Modisand theBabu

Khans. #ortune #ord is a blend of experience and youth. The experience and good will that

*r. *isbahuddin %abu 9han and *r. 3ramod *odi en(oy blend very well with the youth and

energy of the youngsters %ashir, 2shish, 0irav and !ira( to ma&e #ortune #ord a truly world

class #ord /ealership.

!,rt$'e !,r&mar&ets and services the recently launched truly 5uropean #ord #iesta, the

ever)popular Ford Ikon Flair, the 0o non)sense carFord Fusionand the macho !- the

Ford %ndeavourthrough its sales and service outlets at 'yderabad. The sales outlet is located

strategically at !oma(iguda next to 5anadu. We have two service centers, one at 6hapel 4oad,

2bids opposite !tanley 6ollege and other one at #athebagh, !anthnagar. These centrally

located outlets provide convenient and easy access to both the proud owners as well as

prospective buyers. The wor&force at !,rt$'e !,r&is committed to excellence in serving all

esteemed customers.

The !ales Team is made up of dedicated showroom and field executives who are

professionally trained by #ord India imited. They are adept at guiding the customer through

the entire sales process right from assisting in the choice of model, colour and features to

lending a helping hand in providing attractive buybac& options and also arranging finance at

competitive rates.

The !ervice 6entre is armed with the state)of)the art e=uipment and is in)line with #ordSs

exacting 1lobal standards. The service team is technically =ualified and trained to analyze

and provide solutions adhering to uality 6are, in order to satisfy even the most demanding

customers.

The !,rt$'e !,r&dealership maintains a high standard of excellence in sales and services

by sending its personnel for training on a regular basis to #ord India imited, to update them

with the latest technological advances in the automotive sphere.

+8


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SHOROOM

We have F@@@ centrally air conditioned showrooms, located in the heart of the city in

!oma(iguda, ad(acent to 5enadu office and (ust opp. to 9hairtabad 4T2. This ma&es

convenient for almost every one residing in and around 'yderabad and !ecunderabad.

The +a#%#t#e* ,++ere& +r," the *h,5r,," are:

1. ery easy finance facility with in)house finance team to cater to your every car finance

re=uirements. 2ll the leading finance counters are available li&e ICICI6 HD!C6 2OTA26

SUNDARAM6 SBI6etc.

0. 5xchange offer for any of your used car. #ree spot evaluation for any usedcar.

. 3rofessionally trained and courteous sales staff to ta&e care of every relevant needs of the

customers.

4. !,r&preferred insurance for cashless transactions in the event of claims. !pecial offers on

Insurance renewals. :ou can also renew your insurance by (ust ma&ing call to our !ervice

mar&eting help line 98488890.

Sh,5r,," ; S,"a


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7.2 well maintained fleet of test drive cars to give you the feel and experience the drive

dynamics on actual driving conditions before ta&e the purchase decisions. :ou can call our

sales help line for test drive or fill the on)line test drive re=uisition form.

S#('#+#a't "#%e*t,'e*S#('#+#a't "#%e*t,'e*

The first Indian built #ord 5scort rolled off the assembly line in +DDK.

The 6ompany was able to deliver #ord 5scorts in seven ma(or cities simultaneously,

in (ust a month after boo&ing.

The !pecial alue 3ac& program was launched in +DDJ, with commemorative

S#reedomS, followed by the petrol and diesel driven S2nniversaryS. 4ecent !3s have

included the "rion, 2lpha and !port ) 5.

#ord 5scort won the C / 3ower 2ward in India uality !urvey in +DDJ.

#ord topped the 6ustomer !atisfaction Index N6!IO ratings in +DDJ and +DD>, in the

6ustomer !atisfaction !urvey.

uality6are, #ordSs branded service initiative, provides car owners with superiorservices at its dealership countrywide.

The new, integrated manufacturing plant was dedicated in *arch +DDD, where #"4/

I9"0 is manufactured.

#ord India launched #ord 2ssured on 2pril 7< 7@@@, a new initiative to buy and sell

used cars of all ma&es.

"n !eptember ++, 7@@@. #ord India launched the #ord I9"0 !Mi the stylish H(osh

machine

#ord India has started exporting #ord I9"0

0==1 #ord India launched the #ord *ondeo.

0==0

+F


16/71

!,r& I'a *h,5 a*e* a 5#&e *petr$" ,+ e>#t#'( ar* at the A$t, E>p,

#ord India imited announced a strategic partnership with 'industan *otors imited

N'*O.

6ertified ! D@@@ +DD>, 8rdedition on *arch 7+, 7@@7 #ord India received the !

D@@@ award from TU !Vddeutschland.

0ew I&on ariant +.K 5Mi was launched

0==:

The 0ew #ord I&on 0MT launched ) The 0ext evel of Cosh.

2dding 4efinement to Cosh) #ord India launches I&on 0MT H#inesse.

#ord 6elebrates 6entennial in India.

!,r& I'a %a$'he* I?,' N@T S@#.

#ord India 4an&s 'ighest in C./. 3ower India !ales !atisfaction !tudy.

!,r& %a$'he* I?,' !%a#r at R*. 4.9 La?h*.

0==4: 2utocar !- of the :ear Winner #ord 5ndeavour.

0==7:

#"4/ *otor 6ompany of !outhern 2frica achieves three wins and two seconds on

this year total economy run

/"5 2W24/! #"4/ two grants for vehicle fuel efficiency research

#"4/ *"0/5" I! 2-T" 5M345!! car of the year

20/ 4"54 /I!6"54: 8 scoops category win at T"W624 2W24/! 7@@J

+K


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#"4/ *"0/5" is the 6aravan 6lub T"W624 of the year 7@@>.

PRODUCT PRO!ILE

Fusion:Fusion:

PRICENlacsO K.FD

E'(#'e:Type < 6yl. In ine, +K /"'66onstruction 2ll 2luminium 2lloy#uel !ystem !5#I/isplacement NccO +FDK6ompression 4atio D.JF+*ax. 3ower NpsGrpmO +@+ G KF@@*ax. Tor=ue NnmGpmO +


18/71

5mission !tage %harat !tage III2er3 e#(ht 2( ++Spee& 9mphO +J alve

!"'6

6onstruction 2ll)aluminium 2lloy

#uel !ystem !5#I 'igh 3ressure 6ommon 4ail

/isplaceme

nt

cc +8>> +FDK +FDK +8DD +8DD +8DD

6ompression 4atio D.JF+ D.JF+ D.JF+ +>+ +>+ +>+

*ax.

3ower

"utput

psGrpm >7GK@@@ +@+GKF@

@

+@+GKF@

@

K>GGG


20/71

PRICENlacsO F.F@

E'(#'e:

Type < 6ylinder, >) !"'6, 4ocam 3etrol#uel system !5#I/isplacement NccO +7DD*ax. 3ower NpsGrpmO J@GFF@@*ax. Tor=ue N0mGrpmO +@FG7F@@Tra'*"#**#,' Tpe F !peed *anual2er3 e#(ht 2( DJ>Ma>Spee& 9mphO +M#%ea(e +@.>

MondeoMondeo::

7@


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PRICENlacsO K.FD

E'(#'e:

5ngine type 7.@ +K /"'6 3etrol/isplacement +DDD cc*ax. power +F 0mG+alves +K /"'6#uel in(ection !e=uential electronic fuel in(ection N!5#IO5mission level %harat !tage III6onstruction 2ll 2luminium 2lloyTra'*"#**#,' Tpe !,r& MT@-7 "a'$a% -*pee& 5#th

*'hr,"e*h

2er3 e#(ht 2(

Ma>Spee& 9mphO 7@@M#%ea(e >.K

S,$re* ,+ Data

Mar?et#'( *trate( a'& a'a%*#*Mar?et#'( *trate( a'& a'a%*#*:

2 mar&eting 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.

7+


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2ny organization that wants to exchange its products or services in the mar&et place

successfully should have a !trategic *ar&eting plan to guide the allocation of its resources.

2 strategic mar&eting plan usually evolves from an organizations overall corporate strategy

and serves as a guide for specific mar&eting programs and policies. *ar&eting strategy is

based on a situation analysis) a detailed assessment of the current mar&eting conditions

facing the company, its product lines, or its individual brands. #rom this situation analysis, a

firm develops an understanding of the mar&et and the various opportunities it offers, the

competition and the mar&et segments or target mar&ets the company wishes to pursue.

*ar&eting strategy is the complete and unbeatable plan, designed specifically for attaining

the mar&eting ob(ectives of the firmGbusiness unit. The mar&eting ob(ectives indicate whatthe firm wants to achieveA the mar&eting strategy provides the design for achieving them.

#or example, if the mar&eting ob(ectives of a business unit stipulate that next year, it should

achieve a sales revenue of 4s. +,@@@ crore and a net profit of +F percent of sales revenue, it is

the (ob of mar&eting strategy to indicate how and wherefrom this sale and profit will come,

which product linesGproductsGbrands will accomplish this tas& and how.

*ar&eting strategy forms an integral part of mar&eting planning. 2 mar&eting 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 mar&et

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

corporate goals. 2s the customer constitutes the source of a companySs revenue, mar&eting

strategy is closely lin&ed with sales. 2 &ey component of mar&eting strategy is often to &eep

mar&eting in line with a companySs overarching mission statement.

MAR2ETIN AND PROMOTIONS PROCESS MODEL:

/evelopment of mar&eting program re=uires an in)depth analysis of the mar&et. This analysis

may ma&e extensive use of mar&et research as an input into the planning process.

*ar&eting

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!,r"$%at#'( the "ar?et#'( *trate(:

%asically, formulation of mar&eting strategy consists of three main tas&s

+. !electing the target mar&et,

7. 3ositioning the offer,

8. 2ssembling the mar&eting mix.

This implies that the essence of the mar&eting strategy of a firm for a given product or brand

can be grasped from the target mar&et chosen, the way it is positioned and how the mar&eting

mix is organized. The target mar&et shows to whom the unit intends to sell the productsA

positioning and mar&eting mix together show how and using what uni=ueness or distinction,

the unit intends to sell. The three together constitute the mar&eting strategy platform of the

given product.

SELECTIN THE TARET MAR2ET:SELECTIN THE TARET MAR2ET:

To say that target mar&et selection is a part of mar&eting strategy development is (ust stating

the obvious. It does not fully bring out the import of the inseparable li&age between the two.

When the selection of the target mar&et is over, an important part of the mar&eting strategy of

the product is determined, defined and expressed.

*ar&eting targeting simply means choosing ones target mar&et. It needs to be

clarified at the outset that mar&et targeting is not synonymous with mar&et segmentation.

!egmentation is actually tee prelude to target mar&et selection. "ne has to carry out several

tas&s besides segmentation before choosing the target mar&et.

Through segmentation, a firm divides the mar&et into many segments. %ut all these segments

need not form its target mar&et. Target mar&et signifies only those segments that it wants to

adopt as its mar&et. 2 selection is thus involved in it.

*ar&eting segmentation is a process that throws up not one but several mar&et 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 mar&et

development. There may also be segments that show great potential, but display tough

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barriers to entry. 2s such, the =uestion, which segmentGsegments, the firm should select as its

target mar&et, assumes crucial importance.

STRATEIC MAR2ET SEMENTATION:

*ar&et !egmentation is dividing up a mar&et into distinct groups that N+O have common

needs and N7O will respond similarly to a mar&eting action$, which was said by %ric

N.(erkowit/- 0oger A.1erin- and William 0edulius.

The !egmentation process involves five distinct steps

#inding ways to group consumers according to their needs.

#inding ways to group the mar&eting actions usually the products offered

available to the organization.

/eveloping a mar&et)product grid to relate the mar&et segments to the firms products

or actions.

!electing the target segments toward which the firm directs its mar&eting actions.

Ta&ing mar&eting actions to reach target segments.

*ar&ets can be segmented using several relevant bases. #or example, demographic

characteristics of consumers, such as age, sex, incomeGpurchasing capacity, education level

etc, form one base for segmentation. 1eographic characteristics constitute anotherA and

buying behavior of the consumers forms yet another base.

The various types of segmentations are

1eographic segmentation

/emographic segmentation

3sychographic segmentation

%uyer behavior

%enefits segmentation

olume of purchase segmentation

POSITIONIN:POSITIONIN:

3ositioning is a platform for the brand. It facilitates the brand to get through to the target

consumers.

It is defined as the art and science of fitting the product or service to one or more segmentsof the broad mar&et in such a way as to set it meaningfully apart from competition.$

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3ositioning is the act of fixing the locus of the product offer in the minds of the target

consumers. In positioning, the firm decides how and around what parameters, the product

offer has to be placed before the target consumers. The significance of product positioning

can be easily understood from /avid "gilvys words The results of your campaign depends

less on how we write your advertising than on how your product is positioned$.

De+#'#t#,'* ,+ pr,&$t p,*#t#,'#'(:

Se'($pta, in his boo&Brand Positioningsays, The aim of product positioning is to create

a perception for our brand in the prospects mind so that it stands apart from competing

brands we must cover that space in the consumers mind as if we had won a long)term

lease. We must find a strong position in that mind and sit on it.$

M#hea% R,th*h#%&, in his boo&Marketing Communications From Fundamentals to

Strategiessays, 3ositioning refers to the place a brand occupies in the mind in relation to a

given product class. This place was originally a product)related concept. 6oncerning

mar&et structure. The concept now refers to the place that the brand holds in the consumers

mind related to perceptions and preferences$.

De/e%,p#'( a P,*#t#,'#'( Strate(To create a position for a product or service, 'routand0iessuggest that managers as&

themselves six basic =uestions.

+. What position, if any, do we already have in the prospects mind;

7. What position do we want to own;

8. What companies must be outgunned if we are to establish that position;


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3roduct positioning denotes the specific product categor2product classin which the given

product is opting to compete. 2nd 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 mar&et it has to se=uentially 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. "nce 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 POSITIONIN

Where is the new offer going to compete; 2s what;

Which product functionGcustomer 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

mar&et;

What are companys competencies to fight here;

ISSUES IN BRAND POSITIONIN:

In deciding the %rand positioning, the issues are

Which are the competing brands in the chosen product category;

What are the uni=ue claimsGstrengths of the various brands;

What position do they en(oy in consumers evaluation and perception;

What is the most favoured position; 2nd yet vacant;

6an the new brand claim the needed distinction and ta&e the position and satisfy the

need;

The ma(or dimension of mar&eting strategy relates to positioning of the offer. The firm has

already selected the target mar&et and decided its basic offer. 0ow, what is the con(unction

between these two entities; 'ow do they get connected; What is the interface;

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What is the locus the firm see&s among the customers in the chosen target mar&et with its

offering;

'ow would the firm want the consumer to view and receive the offer;

These are the issues the firm has to grapple with in positioning. 2nd, while formulating the

mar&eting mix too, the firm will agitate over these issues. The 3roduct /ifferentiation and

3ositioning discusses the multifarious issues involved in the sub(ect.

PRODUCT REPOSITIONIN:

3roducts do undergo Hrepositioning as they go along their life cycle. In some cases, even

products that are faring 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 mar&et.

The product is provided with some new features or it is associated with some new target

segments.

PROMOTIONAL DECISIONS:

3romotion 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 mar&eting mix, most of

an organizations communications with the mar&et the basic tools used to accomplish an

organizations communication ob(ectives are often referred to as thepromotional mi*.

The promotional mixThe promotional mix

A&/ert#*#'(:

7>

Advertisin

gDirect

marketin

Interactive

$

Sales

promotio

n

Publicity$

Public

Personal

selling


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2dvertising 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. 2n occasional exception to this is the public service announcement, whose

advertising space or time is donated by the media.

2dvertising is the best)&nown 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 mar&ets.

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.

D#ret Mar?et#'(

"ne of the fastest)growing sectors of the -.!. economy is direct mar&eting, in which

organizations communicate directly with target customers to generate a response and a

transaction. It has become such an integral part of the I*6 program of many organizations

and often involves separate ob(ectives, budgets, and strategies, we view direct mar&eting as a

component of the promotional mix.

/irect *ar&eting is much more than direct mail and mail order catalogs. It involves a variety

of activities, including database management, direct selling, telemar&eting and direct

response ads through direct mail, the Internet, and various broadcast and print media.

"ne of the ma(or tools of direct mar&eting is ret re*p,'*e a&/ert#*#'(, whereby a product

is promoted through an ad that encourages the consumer to purchase directly from the

manufacturer.

I'terat#/eI'ter'et Mar?et#'(:

Interactive media allow for the bac&)and)forth flow of information whereby users can

participate in and modify the form and content of the information they receive in real time.

-nli&e traditional forms of mar&eting 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, ma&e in=uiries, respond to =uestions and of course ma&e

purchases. In addition to the Internet, other forms of interactive media include 6/)4"*s,

9ios&s, and interactive television.

Sa%e* Pr,",t#,':

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The next variable in the promotional mix is sales promotion, which is generally defined as

those mar&eting 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 bro&en into two ma(or categories

6onsumer)oriented and

Trade)oriented activities

6onsumer)oriented sales promotion is targeted to the ultimate user of a product or service and

includes couponing, sampling, premiums, rebates, contests, sweepsta&es, and various point)of)

purchase materials.

Trade)oriented sales promotions are targeted towards mar&eting intermediaries such as wholesalers,

distributors and retailers.

P$3%##tP$3%# Re%at#,'*

3ublicity 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. i&e advertising, publicity is not directly paid for by the company.

2n advantage of publicity over other forms of promotion is its credibility. 2nother

advantage of publicity is its low cost, since the company is not paying its time or space in a

mass medium such as T, radio or newspapers.

3ublic 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$. 3ublic

relations generally have a broader ob(ective than publicity, as its purpose is to establish and

maintain a positive image of the company among its various publics.

Per*,'a% Se%%#'(:

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

persuade prospective buyers to purchase the companys product or service or to act on an

idea. -nli&e advertising, personal selling involves direct contact between buyer and seller,

either face)to)face or through some form of telecommunications such as telephone sales.

3ersonal selling involves more immediate and precise feedbac& because the impact of the

sales presentation can generally be assessed from the customers reactions.

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ASSEMBLIN THE MAR2ETIN MI@ASSEMBLIN THE MAR2ETIN MI@

2ssembling the mar&eting mix means assembling the four 3s of mar&eting in the best

possible combination. Involved in this process are the choice of the appropriate mar&eting

activities and the allocation of the appropriate mar&eting effortGresources to each one of them.

The firm has to find out how it can generate the targeted sales and profit. It considers

different mar&eting mixes with varying levels of expenditure on each mar&eting activity and

tries to figure out the effectiveness of different combinations in terms of the possible sales

and profits. It then chooses the combinationGmix of products, price, place and promotion that

is best according to its (udgment.

!ince mar&eting is essentially an interaction between the mar&eting mix and environmental

variable, and since the latter and non)controllable, mar&eting becomes synonymous with

assembling and managing the mar&eting mix. "f course, while assembling the mar&eting

mix, the mar&eting manager will ta&e due note of the environmental variables. 0ot only will

he ta&e due not of them, he will ensure that his mar&eting mix suits the environmental

variables. 2nd, its factor that renders the tas& much more complex.

MAR2EIN MI@: THE SOLE EHICLE !OR CREATIN AND DELIERIN

CONSUMER ALUE

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

the mar&eting mix of the firm. The mar&eting mix is the sole vehicle for creating and

delivering customer value.

It can be easily seen that all activities and programmers, which a mar&eter designs and caries

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. #or example, pac&aging is one of the sub)elements of product and

warehousing is one of the sub)elements of distribution.

The !,$r P* ,+ Mar?et#'(:

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It was Cames 6ulliton, a noted mar&eting expert, who coined the expression mar&eting mix

and described the mar&eting manager as a mixer of ingredients. To =uote him, XThe

mar&eting 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. 2nd, 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.

!ubse=uently- Niel +.(orden, another noted mar&eting expert, popularized the concept of

mar&eting mix.

It was Cerome *c6arthy, the well)&nown 2merican professor of mar&eting, who first

described the mar&eting mix in terms of the four 3s. 'e classified the mar&eting mix

variables under four heads, each beginning with the alphabet 3$.

3roduct

3lace

3rice

3romotion

McCarthhas provided an easy)to)remember description of the mar&eting mix variables.

"ver the years, the terms *ar&eting mix and #our 3s of mar&eting have come to be used

synonymously.

2ssembling and managing the mar&eting mix is the crux of the mar&eting tas&. 2nd, it is

through the mar&eting mix that the mar&eting manager achieves the mar&eting ob(ectives.

MAR2ETIN STRATEIES !ALL UNDER TO CATEORIES:

We have seen that target mar&et selection, positioning and mar&eting mix formulation

together constitute mar&eting strategy. We have also seen that a firm can assemble the

mar&eting 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. 2s a result, business firms are able to employ an abundance of strategies and

strategy stances in their relentless race to stay ahead of competition. 'owever, a close

scrutiny will reveal that all these strategies can be fitted into two broad categories

+. 34I65 "4I50T5/ *2495TI01 !T42T51:

7. /I##5450TI2TI"0 "4I50T5/ *2495TI01 !T42T51:

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In other words, there are only two broad routes available for forging mar&eting strategies any

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

strategy.

PRICE ORIENTED MAR2ETIN STRATEYPRICE ORIENTED MAR2ETIN STRATEY

#irms ta&ing to the price route in mar&eting strategy compete on the strength of pricing.

They use price as their competitive lever. They (uggle the price of their product to suit the

prevailing competitive reality. They can afford to offer lower prices and still ma&e the

targeted profits. They elbow out competition with the cushion they en(oy in the matter of

pricing.

3rice route re=uires cost leadershipA evidently, a firm opting for the price route will

have to have a substantial cost advantage in their operations. It should be en(oying an overall

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

average returns inspire of strong competition. The cost advantage can emanate from different

factors li&e, scale economies, early entry, a large mar&et share built over a period of time,

vocational 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 ta&en to

the idea sufficiently early in its evolutionary process and prepared itself for adopting such a

strategy.

DI!!ERENTIATION ORIENTED MAR2ETIN STRATEYDI!!ERENTIATION ORIENTED MAR2ETIN STRATEY:

The differentiation route of strategy revolves around aspects other than price. It wor&s on the

principle that a firm can ma&e its offer distinctive from all competing offers and win through

the distinctiveness. 2nd, 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.

*aximum scope for exploiting differentiation remains with the product. While all the


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The product can be differentiated along two ma(or plan&s

+. Tangible product attributes and functions,

7. Intangible characteristics and emotional associations.

The tangible product attributes and functions are

/ifferentiation based on ingredients,

/ifferentiation based on functional value,

/ifferentiation based on additional features,

3ac&aging contributing to differentiation,

/ifferentiation based on uality, "perational 5fficiency, Technology, !ervice.

DIITAL MAR2ETIN:DIITAL MAR2ETIN:

/igital *ar&eting 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 mar&eting does include many of the techni=ues and practices contained within

the category of Internet *ar&eting, it extends beyond this by including other channels with

which to reach people that do not re=uire the use of The Internet. 2s a result of this non)reliance on the Internet, the field of digital mar&eting includes a whole host of elements such

as mobile phones, smsGmms, display G banner ads and digital outdoor.

BU MAR2ETIN ORD O! MOUTH:BU MAR2ETIN ORD O! 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 spo&en communication, althoughphone conversations, text messages sent via !*! 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 hearsayA however word of

mouth is more commonly used to describe positive information being spread rather than

negative, although this is not always the case.

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Word)of)mouth promotion, also &nown as buzz mar&eting and viral advertising, is highly

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

credibility. 4esearch points to individuals being more inclined to believe W"** than more

formal forms of promotion methodsA the receiver of word)of)mouth referrals tends to believe

that the communicator is spea&ing honestly and is unli&ely to have an ulterior motive Ni.e.

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

of)mouth communications, mar&eters use publicity techni=ues as well as viral mar&eting

methods to achieve desired behavioral response. Influencer mar&eting is increasingly used to

seed W"** by targeting &ey individuals that have authority and a high number of personal

connections.

EANELISM MAR2ETINEANELISM MAR2ETINIt is an advanced form of word of mouth mar&eting NW"**O 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.

5vangelism literally comes from the three words of Sbringing good newsS and the mar&eting

term (ustly 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.

E!!ECTIE SALES PROMOTIONE!!ECTIE SALES PROMOTION::

!ales promotion consists of diverse collection of incentive tools mostly short term, designed

to stimulate =uic&er and greater purchase of particular products of services by the consumer.

!ales promotion is the only method that ma&es use of incentives to complete the push)pull

promotional strategy of motivating the sale force, the dealer and the consumer in transacting

a sale.

PPr#e-O++* O++er:r#e-O++* O++er:

3rice)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.

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Pre"#$":Pre"#$":

3remium refers to the offer of an article of merchandise as an incentive in or to sell the

product.

C,$p,'*:C,$p,'*:

In order to encourage product trail, stimulate re)purchase rate and build loyalty through

news papaers.

Dea%er *t,? *p%a ,'te*t*Dea%er *t,? *p%a ,'te*t*:

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

providing exposure to the sponsors products.

/ealer participating enthusiastically and creatively are awarded

DE!ENDIN MAR2ET SHAREDE!ENDIN MAR2ET SHARE

While trying to expand total mar&et size, the dominant firm must continuously defend it

current business against rival attac&s. This step is very much essential for the mar&et leader

firm because the challenger firms are constantly to exploit the wea&nesses of the leader

firms.

E@PANDIN MAR2ET SHAREE@PANDIN MAR2ET SHARE

*ar&et leaders can improve their profitability by increasing their mar&et share. %ut for few

mar&et leaders whose share in the total mar&et is insignificantly high, the expansion of

mar&et share n the total mar&et may be proved both as expensive and ris&y. Therefore it is

better for such leader firms in spending their time in building up the mar&et size rather than

expanding the mar&et share. The reason for this action may be attributed to two factors

+. The mar&et leader firms might attract the provisions of various anti)trust

legislations. The rival competitors will try to force the 1overnment to bring

legislations against the *"0"3"I!2TI"0$

7. The second reason being the economic factors. The cost of ma&ing further gains in

the mar&et share after a large share has been achieved may rise fast and reduce the

profit margin.

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HARASSMENT STRATEY:HARASSMENT STRATEY:

The mar&et leader firm will resort to a harassment strategy in order to promote its mar&et

share. 2s a part of this strategy, the leader form might approach the suppliers and threaten to

reduce its purchases. If the latter supply the upstart firm, sometimes it might put pressure on

distributors not to carry the competitors product. The salesman of leader firm might spea&

negatively about competitors. It may also try to hire away the better executives of an

aggressive firm. !ometimes, the mar&et leader firm will try to restrain these competitions

through legal devices. It might push legislation that would be more unfavorable to the

competitors than to it.

The aim of defensive strategy is to reduce the profitability of attac&, divert attac&s to less

threatening areas, and lessen the intensity of attac&. 2ny attac& is li&ely to hurt profits. %ut

the defenders form and speed of response can ma&e an important difference in the profit

conse=uences.

There are K defense strategies that a dominant firm can use

+.+. P,*#t#,' De+e'*eP,*#t#,' De+e'*e

The basic idea of defense is to build an impregnable fortification around ones

territory.

0.0. !%a'? De+e'*e:!%a'? De+e'*e:

The mar&et leader should not only guard its territory but also erect outposts to protect

a wea& front or possibly serve as an invasion base for counter attac&ing.

8.8. Pree"pt#/e De+e'*ePree"pt#/e De+e'*e

2 more aggressive defense maneuver is to launch an attac& on the enemy before the

enemy starts its offense against the leader. 3reemptive defense assumes that an ounce

of prevention is worth more than a pound of cure.

4. C,$'ter,++e'*#/e De+e'*eC,$'ter,++e'*#/e De+e'*e:*ost mar&et leaders, when attac&ed will respond counterattac&. The leader cannot

remain passive in the face of a competitors price cut, promotion blitz, product

improvement, or sales territory invasion. The leader has the strategic choice of meeting the

attac&er frontally, maneuvering against the attac&ers flan&, or launching a princer movement

to cut off the attac&ing formation from their base operation.

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9.9. M,3#%e De+e'*e:M,3#%e De+e'*e:

*obile defense involves more than the leader aggressively defending its territory. In

mobile defense, the leader stretches it domain over new territories than serve as future centers

for defense and offense.

K. C,'trat#,' &e+e'*eC,'trat#,' &e+e'*e

arge companies recognize that they can no longer defend all the territory. Their

focus are spread too thin, and competitors are nibbling away on several funds. The best

course of action then appears to be planned contraction Nalso called strategic withdrawalO.

INNOATION STRATEY:INNOATION STRATEY:

The mar&et 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.

!ORTI!ICATION STRATEY:!ORTI!ICATION STRATEY:

In order to protect its mar&et share, the mar&et leader may try to &eep 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.

CON!RONTATION STRATEYCON!RONTATION STRATEY

If leader firm faces an extremely aggressive challenger, whose actions demand a =uic& and

direct response. In such a situation, the mar&et 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

enter in its mar&et. This strategy will frighten the potential competitions and ma&e then to

withdraw from entering the mar&et.

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MAR2ETIN STRATEIES O! !ORD:MAR2ETIN STRATEIES O! !ORD:

Pr,&$t ++ere't#at#,' 3a*e& ,' ,perat#,'a% e++##e':

#"4/ 5M65I01 T'4"-1' !54I65 #ord tries to differentiate its offer onthe plan& of service. It has gone in for a new norm in customer service fi it right!the

first time!on time$. #ord is also supplying videotapes showing how repairs have to be

done.

A&,pt#'( O++er t, S$#t Tar(et Se("e't:

!,r& ",+#e* #t* ",&e%* +,r I'a:

#ord modified its models for the Indian target segments as shown below

'igher ground clearance to ma&e the car more compatible to the rougher road surface inIndia.

!tiffer rear springs to enable negotiating the ubi=uitous patholes on Indian roads.

6hanges in cooling re=uirement, with greater airflow to the rear.

'igher resistance to dust.

6ompatibility of engine with the =uality of fuel available in India.

ocation of horn buttons on the steering vehicles. N2s the India motorist uses the horn more

fre=uently, for cars sold in India, the horn buttons are &ept on the steering wheel and not on a

lever on the side as in the models sold in 5urope.O

Strate(# *e("e'tat#,' ,+ ar*:

The #ord in India has launched the car only for few segment of people.

The segmentation of car buyers based on price preferences are

!a"#% ar *e("e't These cars form a reasonably sizeable segment of the mar&et Naround

+F percentO.

3referred price range is from F la&h to K la&h.

H#"4/ I9"0 20/ H#"4/ #-!I"0 come under this type of segment.

Pre"#$" ar *e("e't This segment represents buyers who need a real world)class car and

are willing to pay the due price.

3referred price range starts from > la&h to +7 la&h.

H#"4/ #I5!T2, H#"4/ *"0/5" comes under this segment of cars.

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SU *e("e't The buyers of this segment li&e to have big vehicles.

2nd these cars are also useful for sport riding and even on hill areas. There body is designed

similar to off)road vehicles, which can withstand to Indian roads.

H#"4/ 50/52"-4 occupies this segment.

Strate(# Pr,",t#,'* 3 !ORD:

!,r& follows the promotions at two levels, they a

+O 3romotions of product directly by the manufacturer.

7O 3romotions at dealer level.

In the first step the products of vehicles manufactured by the #ord 2utomotives are directly

promoted by the manufacturer by himself. 'e follows many promotional strategies li&e

+. 2dvertising through television and newspaper.

7. Internet or interactive mar&eting.

8. /irect mar&eting.

In the second step the dealer of the vehicles promotes the vehicles.

The various promotional strategies followed by the #ortune #ord at dealer are

+. 2dvertising though news papers, radios, palm plates. In this all the features of the

product and its prices are given in detail to the customer.

7. In televisions the scrolling are given about the product and its features.

H,ar'(*

2 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 afford 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

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Ma#'ta#'#'( Data Ba'?:

In this the dealer collects personalGbio)data Naddress and contact numberO 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 F or more friends in the group purchase the cars at a

time then they are given special discounts on the vehicles.

!ree I'*$ra'e:

The #ortune #ord gives a special offer of free insurance on the purchase of each vehicle to

its new customers.

Re%at#,'*h#p Mar?et#'(:

#ortune #ord pays a special attention towards its old customers. To retain the old and

existing customers it conducts a corporate meet at a luxurious hotel. The event aims at

&nowing the problems of the customers regarding the vehicles and also service feedbac&.

In this way it maintains an effective relationship with the customers and gains the reputation

and goodwill in the minds of the customers.

Sa%e* Pr,",t#,':

The sales promotion is done in the fortune ford at three levels

+. Sh,5r,," *a%e*:In this the customers wal& in to the showrooms to &now about the

details of the product. !pecially trained sales executives who are present in the

showrooms give a detailed explanation about the product to the customers. !ales

executives give a detailed note on the products features, various offers given by the

manufacturer and also by the dealer to the customer and enhances the sales of the

vehicles.

7. C,rp,rate *a%e* 2 special team of sales executives are sent to some big corporate

sectors and there they personally meet the heads of the organizations li&e 6.5."s,

*anagers etc., and explain about the vehicles and the offers and special schemes


42/71

provided by the dealer to them on bul& purchase of the vehicles and try to promote the

sales of the vehicles.

. !#e%& *a%e*: The sales executives conduct some events with the corporate wor&ing

people and try to demonstrate the product features and its benefits and try to promote the

product and increase its sales.

C,'&$t#'( C$*t,"er De%#(ht Pr,(ra":

This is a uni=ue program conducted by the #ortune #ord. This is a program conducted to

retain the old customers of the #ord. The old customers of the #ortune #ord are meeting

personally and they are re=uested to give their feedbac& by filling in the =uestionnaire which

is specially prepared for them. In this =uestionnaire their problems regarding the vehicle

and also their post sale service experience are ta&en. If there exists any problem, then the

#ortune #ord service men try to resolve the problems of their customers as soon as possible

and ma&es the customer satisfied.

This is a techni=ue to attract the new customers by satisfying the old customers and gaining

goodwill in the mar&et.

STRATEIC SALES STANDARDS:

!,rt$'e !,r&maintains strategic sales standards in the following manner.

The !ales faculty is clean, tidy and inviting, ma&ing customers comfortable while

purchasing products and availing services.

6ustomers are courteously ac&nowledged within two minutes of their arrival and are

advised that a !ales 6onsultant will be available upon re=uest.

The !ales 6onsultants appearance and dress will be of the highest standards.

2n advisory relationship is established between the customer and the !ales 6onsultant

who listens to the customer, identifies their needs and ensures that they are met.

2 pleasant, non)pressured purchase experience will be provided during which a

thorough demonstration of the vehicle features and benefits will be made.

2 test drive will be offered to all customers.

-sing a chec& list, the !ales 6onsultant delivers the vehicle in perfect condition when

promised.

6ustomers will be contacted within one wee& after delivery to ensure total

satisfaction.


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MAINTAININ SERICE STANDARDS

2n efficient service facility allows a customer to avail all the service provided by

#ortune #ord, in a clean and welcoming environment.

2n appointment is available within F wor&ing days of the customers re=uest.

6ustomers are courteously ac&nowledged within two minutes of their arrival and

the write)up will begin with five minutes.

!ervice 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.

2 through explanation of wor& done, warranty coverage and charges is given to

the customer.

2ll service repair wor& will be followed up within five wor&ing days.

5ach vehicle will be washed before being returned to the customer.

E@TENDED ARRANTY:

#ortune #ord gives an extended warranty to its customers where there will be extended time

duration in the warranty.

hat #* E>te'&e& arra'tF

#actory Warranty covers only for a specific period of timeGmileage.

2fter the factory warranty expires, customer is exposed to the ris& of parts failures.This is applicable for any machineGe=uipmentGvehicle.

E>te'&e& arra't:

Is an extension of #actory Warranty

"ffers almost similar coverage as #actory Warranty

6omes with a time)bound Neg. +yrG7yrs but unlimited mileage capO

6overs all *echanical and 5lectrical #ailures


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6overs labour

h #* e>te'&e& 5arra't 'ee&e&F

"ffers peace of mind motoring

3rotects against unexpected and non)budgeted expenses

6an be transferred, hence increases the resale value.

hat &,e* #t NOT ,/erF

/oes not cover wear and tear of parts

/oes not cover scheduled service items

/oes not cover accident repairs

Be'e+#t* t, $*t,"er

3rotection from manufacturing and material defects

6ar can be repaired at any #ord out let across the country

-nlimited number of claims

0o excess to pay

"ne up)front payment only

Inflation protection from rising costs of parts and labour

2ll repairs carried out by =ualified #ord technicians

Warranty can be transferred when vehicle is sold better resale value

Total peace of mind


45/71

Chapter

LITERATURE REIE

2 mar&eting 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. 2ny organization that wants to exchange its products or services in themar&et place successfully should have a !trategic *ar&eting plan to guide the allocation of

its resources.

2 strategic mar&eting plan usually evolves from an organizations overall corporate strategy

and serves as a guide for specific mar&eting programs and policies. *ar&eting strategy is

based on a situation analysis) a detailed assessment of the current mar&eting conditions

facing the company, its product lines, or its individual brands. #rom this situation analysis, a

firm develops an understanding of the mar&et and the various

opportunities it offers, the competition and the mar&et segments or target mar&ets the

company wishes to pursue.

*ar&eting strategy is the complete and unbeatable plan, designed specifically for attaining

the mar&eting ob(ectives of the firmGbusiness unit. The mar&eting ob(ectives indicate what the

firm wants to achieveA the mar&eting strategy provides the design for achieving them. #or

example, if the mar&eting ob(ectives of a business unit stipulate that next year, it should

achieve a sales revenue of 4s. +,@@@ crore and a net profit of +F percent of sales revenue, it is

the (ob of mar&eting strategy to indicate how and where from this saleand profit will come,

which product linesGproductsGbrands will accomplish this tas& and how.

*ar&eting strategy forms an integral part of mar&eting planning. *ar&eting 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 mar&et

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

corporate goals. 2s the customer constitutes the source of a companySs revenue, mar&eting

strategy is closely lin&ed with sales. 2 &ey component of mar&eting strategy is often to &eep

mar&eting in line with a companySs overarching mission statement.


46/71


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It is also &nown 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 &nowledge with no immediate application to existing problems.

APPLIED RESEARCH

It is attempt to apply the various mar&eting techni=ue, which have been developed as

research, first and later on they become applied research techni=ues. It is on attempt to apply

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

DESINATED !ACT ATHERIN

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

STEPS IN MAR2ETIN RESEARCH

Marketing research process can be out through following steps.

/efine the problems and research ob(ectives

/evelops the research plan

6ollect the information

2nalysis and interpretation

3resent the finding.

RESEARCH METHOD

It must be classified on the basis of the ma(or purpose of the investigation. In this problem

description studies have been underta&en, as the ob(ective of the pro(ect is to conduct the

mar&et shares study to determine the share of mar&et received by the company to the

competitor.

DATA COLLECTION


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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 #ord and their competitors were contacted. !urvey research is the

approached gathering description and information.

CONTACTED METHOD:

The information was solicited by administering structured =uestionnaire to the customer and

dealers, thus getting to &now 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. 2ny researcher begins the research wor& by first going

through secondary data. !econdary data includes the information available with company. It

may be the findings of research previously done in the field. !econdary data can also be

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

METHODS O! DATA COLLECTION:

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

uestionnaire is administered on the sample respondents. 'ow ever there are certain cases

where personal interactive method is followed with customers to find the satisfaction level.


49/71

OBGECTIES O! THE STUDYOBGECTIES O! THE STUDY

Pr#"ar O3


50/71

SCOPE O! THE STUDY

The scope of the study is to identify the mar&eting strategies of #ord

*otors$. 3rimary data was collected from customers. !econdary data was collected from

company manuals, magazines and websites and so on, the study gathers information about

the mar&eting strategies in regard to uality of !ervice, !afety Tips, fuel saving tips, driving

tips etc.., customer care service and other values added services provided by the company.

F@


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LIMITATIONS O! THE STUDY

2 portion of the respondents contacted were not precise and genuine in giving their

opinion of satisfaction or dissatisfaction. If accidentally they had badly experience at one

instance, they would mar& very poor.

To measure the exact level of customer relation the sample size was small.

!hort time period was inade=uate for conducting detailed study among the customer.

The study was restricted to /elhi only.

The study was limited to the capabilities and willingness of the respondents

inappropriately answering the =uestions.

F+


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Chapter

DATA ANALYSIS INTERPRETATIONS

1. h#h ,+ the +,%%,5#'( !,r& ar ,$ ,5'F

a !#e*ta

3 I?,'

E'&ea/,$r

& !$*#,'

"ata anal#sis:

Na"e ,+ the ar ,+ $*t,"er*

!#e*ta 49

I?,' 07

E'&ea/,$r 1

!$*#,' 9

T,ta% 1==

% of customers

0

10

20

30

40

50

Fiesta Ikon Endeavour Fusion

Inter$retation: This =uestion is meant for ta&ing the information regarding the most

preferred car in the #ord cars. #rom the above graph it is found that most preferred vehicle of

#ord cars isFiesta.

F7


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0. hat &, ,$ %#?e ",*t a3,$t ,$r !,r& arF

a St%e&e*#('

3 C,"+,rt

!,r& 3ra'&& Ser/#e

"ata anal#sis:

C$*t,"er* pre+ere'e N, ,+ $*t,"er*

St%e&e*#(' 9

C,"+,rt 0

!,r& 3ra'& 1Ser/#e

Inter$retation: This =uestion is meant to &now the customers preferences and li&es

towards the cars. #rom the data we can position our product to the comfort see&ing group of

people.

. hat &, ,$ +ee% (reata3,$t ,$r ar 5he' ,"pare& t, ,ther ar* #' the "ar?etF

F8


54/71

a !$e% e++##e'

3 D$ra3#%#t

L,5 "a#'te'a'e

& S,$'& $a%#t

e Bra'& 'a"e

"ata anal#sis:

C$*t,"er* per*pet#/e N, ,+ $*t,"er*

!$e% e++##e' 0

D$ra3#%#t 7

L,5 "a#'te'a'e 9

S,$'& $a%#t 10

Bra'& 'a"e 0=

@

7

+@

+7

+

7@

#uel efficiency /urability ow maintenance !ound =uality

%rand name

customer prespective

N, ,+ -$*t,"er*

Inter$retation: #rom this =uestion we canpositionthe cars according to the customer)s

perspectives. *any of the #ord customers are buying the cars by seeing its (rand Name

only. The no. of customers satisfied with the fuel efficiency is very low.

4. H,5 & ,$ ,"e t, ?',5 a3,$t th#* ar 3e+,re p$rha*#'(F

a !r," +r#e'&*6 re%at#/e* 3$JJ

3 A&/ert#*e"e't*

F


55/71

Car e>pert*

& Sa%e)* per*,'* /#*#t

e A$t, "a(aJ#'e*

"ata anal#sis:

S,$re ,+ a5are'e** N,. ,+ $*t,"er*

!r#e'&*6 re%at#/e* 9

A&/ert#*e"e't* 0

Car e>pert*

Sa%e)* per*,'* /#*#t 8

A$t, "a(aJ#'e*

Inter$retation: *ost of the #ord customers came to &now about their vehicle through

advertisementsonly. The ma(or media that attracted the customers is television.

. Ca' ,$ *hare ,$r e>per#e'e 5#th a+ter *a%e *er/#e *$pp,rt

a er "$h *at#*+#e&

3 Sat#*+#e&

O?

FF


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& N,t *at#*+#e&

"ata anal#sis:

P,*t *er/#e e>per#e'e N,. ,+ $*t,"er*er "$h *at#*+#e&

Sat#*+#e& 1

O? 0

N,t *at#*+#e& 4

=

1=

1

0=

0

=

er "$h *at#*+#e& Sat#*+#e& O? N,t *at#*+#e&

A+ter *a%e *er/#e e>per#e'e

N,. ,+ $*t,"er*

Inter$retation: This =uestion is prepared to &now the service levels of the authorized

dealer. *ost of the customers are (ust telling okabout the service. "nly a veryfew customers

are ver much satisfiedwith the service. 5ven some of the customers are not satisfied with

the service given by the authorized service men.

. here &, ,$ (et ,$r ar *er/#e& re($%ar%F

a At a$th,r#Je& *er/#e e'tre

3 At a %,a% 5,r?*h,p 'ear " h,"e

FK


57/71

"ata anal#sis:

P%ae ,+ *er/#e N,. ,+ $*t,"er*

At a$th,r#Je& *er/#e e'tre 41

At a %,a% 5,r?*h,p 'ear h,"e 9

80

18

$*t,"er* pre+ere'e +,r *er/#e e'tre*

at a$th,r#*e& *er/#e e'tre At a %,a% 5,r?*h,p 'ear h,"e

Inter$retation: *ost of the #ortune #ord customers are interested to service their vehicles

only at the authorized dealers. #rom this we come to &now what the importance of authorized

service centers for car is.

7. h#h 3a'? &, ,$ pre+er #' (ett#'( +#'a'#a% he%p 5h#%e p$rha*#'( a arF

a ICICI

3 HD!C

SBI

& Other*

FJ


58/71

Na"e ,+ the 3a'? N,. ,+ $*t,"er*

ICICI 01

HD!C

SBI 0=

Other*

Inter$retation: *ost of the customers prefer I6I6I and !%I ban&s for ta&ing financial

help while purchasing a car. 6ustomers are as&ing for @? interest on financial help

provided by the ban&s.

8. h#h tpe ,+ +#'a'e &, ,$ pre+erF

a I' h,$*e +#'a'e

3 O$t h,$*e +#'a'e

N, ++ere'e 3et5ee' thet5,

"ata anal#sis:

Tpe ,+ +#'a'e N,. ,+ $*t,"er*

I' h,$*e +#'a'e =

F>


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O$t h,$*e +#'a'e 10

N, ++ere'e 3et5ee' the t5, 8

=

1=

1

0=

0

=

=

10

8

1

C$*t,"er ,p#'#,' ,+ +#'a'e

I' h,$*e +#'a'e O$t h,$*e +#'a'e N, ++ere'e 3et5ee' the t5,

Tpe* ,+ +#'a'e

N,. ,+ $*t,"er*

Inter$retation: To &now the customers opinion about the finance and their interests in

preferring the finance from various sources, this =uestion is prepared. *ost of the

customers prefer onlyIn house financecompared to outhouse finance.

9. T, 5h#h "ea &, ,$ (et e>p,*e re($%ar%Fa Te%e/#*#,'*

3 Ma(aJ#'e*

Ne5* paper*

& !.MRa,

"ata anal#sis:

"ea N,. ,+ $*t,"er*

Te%e/#*#,'* 0

FD


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Ma(aJ#'e* 7

Ne5* paper* 1

!.MRa, 1

0

5

10

15

20

25

30 26

7

16

1 1

Mea that attrat $*t,"er*

Te%e/#*#,'* Ma(aJ#'e* Ne5* paper* !.MRa,

Tpe ,+ Mea

N,. ,+ $*t,"er*

Inter$retation: #rom this analysis we come to &now that most of the customers are

interested in watching televisions, which is a good media for communicating with people

and delivering our intentions about product.

1=. h#h ?#'& ,+ T.. ha''e%* &, ,$ 5ath re($%ar%F

a Nat#,'a% 'e5* ha''e%*

3 Re(#,'a% 'e5* ha''e%*

Sp,rt* ha''e%*

& E'terta#'"e't ha''e%*

"ata anal#sis:

T.. Cha''e%* N,. ,+ $*t,"er*

Nat#,'a% 'e5* ha''e%* 1=Re(#,'a% 'e5* ha''e% 1

Sp,rt* ha''e%* 4

K@


61/71

E'terta#'"e't ha''e%* 0=

Inter$retation: This =uestion is meant to &now the interests and preferences of

customers towards T.. channels. *ore than =uarter of the sample size showed interestonly on the entertainment channels and next preference goes to the regional news

channels.

11. hat)* ,$r ,p#'#,' ,' the pr#e %#*t ,+ !,r& ar*F

a A++,r&a3%e 3 ,"",' "a'

3 A++,r&a3%e ,'% 3 r#h "a'

Ca')t *a

"ata anal#sis:

C$*t,"er ,p#'#,' ,' pr#e%#*t ,+ +,r&

ar

N,. ,+ $*t,"er*

A++,r&a3%e 3 ,"",' "a'

A++,r&a3%e ,'% 3 r#h "a' 40

Ca't *a 0

K+


62/71

== K 10

40==K 84

0==K 4

C$*t,"er ,p#'#,' ,' pr#e %#*t ,+ !,r& ar*

A++,r&a3%e 3 ,"",' "a' A++,r&a3%e ,'% 3 r#h "a' Ca't *a

Inter$retation: *ore than >@? of customers thin& that #ord cars are affordable only

by rich men. These cars are too expensive for an economic society.

10. hat ?#'&* ,+ ,++er* &, ,$ %#?e ,r e>pet +r," the &ea%erF

a !ree #'*$ra'e

3 Spe#a% *,$'t ,' *a%e ,+ ar*

E>te''( the *er/#e per#,&

& !#'a'e a/a#%a3#%#t 5#th = #'tere*t

"ata anal#sis:

,++er* N,. ,+ $*t,"er*

!ree #'*$ra'e 9

Spe#a% *,$'t ,' *a%e ,+ ar*

E>te''( the *er/#e per#,& 07

!#'a'e a/a#%a3#%#t 5#th =

#'tere*t

11

K7


63/71


64/71

0

5

10

15

20

25

30

35

2

34

4

10

1

C$*t,"er* e>petat#,'* +r," &ea%erI'+,r"at#,' a3,$t 'e5 ar*

I'+,r"at#,' a3,$t *er/#e a'& "#%ea(e

A**#*ta'e re(ar'( %,a'* a'& #'*$ra'e

U'&er*ta''( $*t,"er 'ee&*

E>petat#,'*

N,. ,+ $*t,"er*

Inter$retation: *ost of the customers are expecting the information about service

and mileage regarding the cars from the dealer. #rom the above analysis we come to

&now about the customers expectations and their post purchase service demands from the

dealer.

14. H,5 &, ,$ +ee% 5he' a' $'?',5' *a%e* per*,' appr,ahe* ,$ 3 ?',5#'(

,$r +$%% &eta#%* t, &e",'*trate a3,$t a' pr,&$tF

a I 5#%% ',t re*p,'&

3 L,*t " pr#/a

I'tere*te& #' ?',5#'( #+ I +ee% a 'ee& ,+ #t

"ata anal#sis:

C$*t,"er ,p#'#,' N,. ,+ $*t,"er*

I 5#%% ',t re*p,'& 11

L,*t " pr#/a

I'tere*te& #' ?',5#'( #+ I +ee% a 'ee&

,+ #t

4

K


65/71

Inter$retation: This =uestion is prepared indirectly to &now about the customers

opinion about the /ata %an& maintenance by the #ortune #ord. In reply ma(ority of the

customers gave a positive reply byshowing interest in knowingabout the cars when a

sales person gives a detailed description about the cars.

1. hat)* ,$r ,p#'#,' ,' a Bra'& A"3a**a&,r +,r the ar*F

a er 'ee**ar

3 N,t 'ee&e&

a*te ,+ ",'e +,r "a'$+at$rer

"ata anal#sis:

C$*t,"er ,p#'#,' ,' a"3a**a&,r N,. ,+ $*t,"er*

er 'ee**ar 4

N,t 'ee&e& 7

a*te ,+ ",'e +,r "a'$+at$rer =

KF


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=

1=

1

0=

0

=

4=

44

7

=

1

Op#'#,' ,' Bra'& A"3a**a&,r

er 'ee**ar N,t 'ee&e& a*te ,+ ",'e +,r "a'$+at$rer

$*t,"er ,p#'#,'

N,. ,+ $*t,"er*

Inter$retation: This =uestion is meant to &now about the importance of %rand

2mbassador for a car in the customers point of view. *ost of the #ord customers thin&

that a %rand 2mbassador is ver necessarfor promoting a car.

1. hat)* ,$r ,p#'#,' a3,$t the pre/#,$* A"3a**a&,r A3h#*he? Baha' +,r

the ar !,r& !#e*taF

a !$%% +#%%e& the p$rp,*e

3 U'a3%e t, attrat $*t,"er*

He 5a* ',t apt +,r #t.

"ata anal#sis:

C$*t,"er ,p#'#,' N,. ,+ $*t,"er*

!$%% +#%%e& the p$rp,*e 8

U'a3%e t, attrat $*t,"er* 1=

He 5a* ',t apt +,r #t 0

KK


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7

0=4

C$*t,"er ,p#'#,' a3,$t A3h#*he? Baha'

!$%% +# % %e& the p$rp,*e U'a3%e t, attrat the $*t,"er*

rohit.docx

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