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Measuring success of new product launches in the Indian automobile industry
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TABLE OF CONTENTS
1. Objectives…………………………………………………………3 2. Abstract……………………………………………………………4 3. Indian Automobile market…………………………………………5 4. Segmentation & Profile…………………………………………...11 4. New product development………………………………………...21
5. New Product: Success or failure…………………………………..23
5. Problem of measuring success of new product……………………25 6. Critical factors of success of new products………………………..26 7. Measuring Success of New Products……………………………...28 8. Measuring success for automobiles...……………………………...31 9. Market share and product portfolio…………………...…………...34 10. Buying Behavior………………………………………………….44 11. Satisfaction survey………………………………………………..52 12. Awareness………………………………………………………...56 13. Advocacy………………………………………………………….57 14. Conclusion………………………………………………………...58 Annexure- I-Questtionnaire……………………………………………61 Annexure- II-SIAM data………………………………………………65
To study the various new products launch in Indian automobile industry. To understand various factors that affect preference of consumers while purchasing an automobile Critical factors responsible for the success of new product in Indian automobile industry
Abstract The Indian auto industry. has grown at a CAGR of 14 per cent over the last five years with total sales of vehicles reaching around 9 million vehicles in 2005-06. the study would be confined to cars only.12 per cent. given that the first half of 2006-07 has already witnessed a staggering growth rate of 17. short listing of some car models have been done to make the study more specific and effective. Further. Due to exhaustive nature of the industry. This project deals with a critical analysis of Indian automobile industry and its growth it has shown in past years. So this project is to analyze the success rate of new product launches and to see whether the growth shown in Indian automobile industry is really due to new product launches and their success. worth US$ 34 billion in 2006. Even though industry has been showing good growth in numbers it is more important to see whether it is really moving up the ladder. . That number is likely to see a significant boost. Now the project deals with measuring success of new product launch for cars launched in the past four years. The growth it shows should be in terms of success of new product launches.
has grown at a CAGR of 14 per cent over the last five years with total sales of vehicles reaching around 9 million vehicles in 2005-06. Domestic car sales for the April-September 2006 period stood at an impressive 4. In the early 15th century. On a growth path The Indian auto industry. if . That number is likely to see a significant boost. petroleum gas. but it was another century before a full-sized engine-powered automobile was created. By the 1600s. The dream a carriage that moved on its own was realized only in the 18th century when the first car rolled on the streets. including cars.86 million vehicles. including the creation of a wheel that turned under its own power.12 per cent. worth US$ 34 billion in 2006. According to industry experts.000 years ago when the first wheel was used for transportation. electricity and petrol started to be used in these cars. small steam-powered engine models were developed.Indian Automobile Industry History and development The history of the automobile industry in India actually began about 4. Steam. two-wheelers and commercial vehicles. given that the first half of 2006-07 has already witnessed a staggering growth rate of 17. the Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies.
Destination India India is on every major global automobile player‘s roadmap. the Government‘s announcement to cut excise duty on small cars will soon see India emerging as the world's largest manufacturing hub for small or compact cars. The automobile industry witnessed a growth of 19.6 million) and Canada (1. which stood at No. up 70 per cent from 1.35 million). It will be neck and neck with Brazil‘s 2-million capacity at No.35 percent in April-July 2006 when compared to April-July 2005. past UK (1.8. will move two steps ahead. In addition.4 million units now. Auto majors have announced massive investment plans which will push the country‘s car production past the psychological 2 million mark by the end of fiscal 2006-07. India. sales could touch 10 million by March 2007.11 among global car producing nations. . Even at 2 million. as is evident from this year‘s production trends.this trend continues. clocking an annual growth rate of 20 per cent. and it isn‘t hard to see why: India is the second largest two-wheeler market in the world Fourth largest commercial vehicle market in the world 11th largest passenger car market in the world Expected to be the seventh largest by 2016 Robust production India‘s car production capacity is in for a US$ 2 billion boost.
During the last five years (2000-05).s) 219297 171781 391078 1045881 196371 66661 1308913 1020013 6201214 379574 7600801 434424 9735216 Source: Society of Indian Automobile Manufacturers (SIAM) Domestic Sales Increased affluence. India achieved the sales of 1. .Automobile Production Trends Category M&HCVs LCVs Total CVs Passenger Cars Utility Vehicles MPVs Total Passenger vehicles Scooters Motorcycles Mopeds Total Two Wheelers Three Wheelers Grand Total 2004-05 214807 138896 353703 960487 182018 67371 1209876 987498 5193894 348437 6529829 374445 8467853 2005-06 (In no. wider selection and the ready availability of car loans is driving the Indian car market through the roof. the production of passenger cars in India increased by more than 100 per cent.11 million vehicles last year (2005).
Goods carriers grew by 26.12 percent and mopeds at about 6. the commercial vehicles segment grew at 36.86 percent. Overall. two-wheelers and commercial vehicle exports grew at 27. the two wheeler market grew by 15. According to the Society of Indian Automobile Manufacturers (SIAM).84 per cent during April-September 2006. Overall.80 per cent. Three wheeler sales grew at 19. Here are some of the vehicle manufacturers dominating the headlines with their impressive plans: .90 per cent. Investments The Indian automobile sector has witnessed a slew of investments in the first half of 2006. compared to the corresponding period last year. a total of 89.53 per cent.16 per cent and passenger carriers grew at 15.92 per cent. While passenger vehicle exports grew at 13. Growth of Medium and Heavy Commercial Vehicles was 39.85 per cent during the same period.96 per cent. over the same period last year. a 58.53 percent over April-September 2005.73 percent.78 per cent during the April-September 2006 period.Domestic sales have been growing at a clipping pace: Passenger car sales rose by 22. The cumulative growth of overall sales of passenger vehicles during AprilSeptember of 2006-07 was 20. Light Commercial Vehicles also performed well with a growth of 32. over the same period last year.49 per cent during the AprilSeptember period of financial year 2006-07. scooters at 0. Exports India is fast emerging as a manufacturing base for car exports. Motorcycles grew by 18.15 per cent. dominated by plans for new plants and ramped up capacities. Utility Vehicle (UVs) sales grew at 12.07 per cent jump as compared to the same month last year.338 vehicles were exported in September 2006.
The proposal also includes creating the last-mile.2 million for a 600. Bentley and Rolls Royce are already here. Karnataka. the Italian marquee Lamborghini is also planning to enter the country. road-port connectivity at all the four ports. Nissan is set to establish its manufacturing base in Gujarat. The year 2007 will also mark Audi's entry into merchandising in Indian car bazaar.Punjab-based International Cars and Motors (ICML) will invest US$ 223. Pune and Mumbai including JNPT and Jamshedpur and Kolkata.7 million in Himachal Pradesh to set up a plant to manufacture diesel-operated multi utility vehicles (MUVs). Foreign players in India Calendar 2006 has seen the entry of many high-end brands into the country. to expand the company‘s passenger car capacity to 600. The Government is planning to set up three dedicated corridors for automobile companies exporting to the rest of the world. along with Suzuki. Now. German luxury car maker Audi AG is preparing to drive into India a range of sporty. Mercedes. Dedicated rail corridors are proposed between Gurgaon and Mumbai port.000 cars per annum plant. The Indian automobile market will see at least 30 new launches. A dedicated highway for automobile movement is also being considered between Gurgaon and Delhi. Porsche.000 units per annum from the present 300. Hyundai Motor is set to invest an additional US$ 700 million into its Indian operations based in Tamil Nadu. BMW. . The company. Toyota Kirloskar Motors is likely to set up its second plant near its existing facility in Bidadi. The Italian marquee plans to launch the Gallardo. is planning to invest upto US$ 671. spanning everything from affordable hatchbacks to mid-size models to super luxury high-end cars and SUVs.000. as well as in a new engine and transmission unit. lifestyle cars like S8 and RS4 early next year. Audi.
GM plans to bring in a sporty variant of the Chevy Optra to add to its existing line-up. .General Motors launched Aveo this year. The automobile companies manufacturing cars in India are : Maruti Udyog Limited Tata Motors General Motors Hyundai Motors India Limited Toyota Kirloskar FIAT Automobiles Hindustan Motors Ford Motors BMW Skoda Auto Honda Siel Mahindra Renault Daimler Chrysler Nissan Motors Volkswagen Audi A brief about some top car companies which are relevant with the project is mentioned. It also includes the segmentation of the Indian market which is on the basis of length of the car.
It sold 6. Priced at an attractive US$21.750 and above which has witnessed a lot of activity in the recent past. This market insight discusses a few developments taking place in these two sub-segments.200 it power steering. which is priced at approximately US$10.900 is being powered by growing sales of Hyundai Santro and Maruti Wagon R and Alto models.500 with a luxury feel to it. This has been . There is also Tata‘s mid-sized sedan Indigo. General Motors India launched the Chevrolet Optra.Segmentation of the Indian Car Market Segmentation of cars in Indian markert is mainly done on the length of the car or the price of the car.000mm The less than US$6.500 segment or the ‗A‘ class. It is the mid-sized or the ‗C‘ segments US$10. this vehicle became the largest selling model in the premium end of the segment.500 to US$10. the Maruti 800 is the only mod el in this segment. This vehicle is aimed at beating Skoda. safety airbags.500mm • Segment A4 (executive) – cars having a length of 4.001-4. Price competition will be in a segment.600 and has signaled new competition for the Maruti Esteem and Ford Ikon. and air filters are included in this purchase price.400mm • Segment A2 (compact) – cars having a length of 3.019 units during the period April 2002 to March 2003 – half of entire sales in the ‗D‘ segment.401-4.501-4.750 and the premium or ‗D‘ segment US$21. It seems that price competition will be the new mantra going forward. which many believed was relatively price inelastic.000mm • Segment A3 (mid-size) – cars having a length of 4.900 to US$21. The launch of the Skoda Octavia in late 2001 started this trend. Ford Mondeo and Hyundai Sonata a run for their money. Within a short time. The ‗B‘ segment US$6.000mm • Segment A6 (Luxury) – cars having a length of more than 5. Priced at US$17.700mm • Segment A5 (premium) – cars having a length of 4.000 to US$22.701-5. has received a new lease of life when most had written about its demise. the model gave its higher priced peers in the ‗D‘ segment like the Honda Accord. Segmentation on the basis of length is done as: Passenger cars • Segment A1 (mini) – cars having a length of up to 3. Following its footsteps.
With models like the Optra carrying a host of advanced features. Although sales have risen across the board.000.300 will soon be launched. Such a model could well be the vehicle of choice for an owner of a premium end car. the Chevrolet Forrester. Customers are feeling more confident about the future and automakers hope to see this translate in to . A large part of the limelight is also been shared by new launches of sport-utility vehicles. Skoda has also confirmed plans to launch its Superb priced at approximatelyUS$70. What will the likely success of ‗C‘ segment cars mean for the largest selling ‗B‘ segment? Given the improving economic climate and easy availability of credit. their manufacturers do not expect big sales numbers. the current spate of developments in the passenger car segment is largely concentrated in the higher end of the market. Given the price range of these models. This has coincided with the return of the ‗feel good‘ factor in the Indian economy. Toyota launched its Corolla and Camry models. it widely known that a large body of Indian consumers would still prefer the low cost of ownership of a ‗B‘ s egment car like Maruti Zen. some customers would certainly think of replacing their existing ‗B‘ segment cars with a competitively priced ‗C‘ segment model. After tasting success with its utility vehicle Qualis. The Mercedes ‗C‘ Kompressor priced at US$54. Activity in the ‗D‘ segment is being dominated by new model launches. Time will tell whether the new launches will be able to match its success. their launches signal that global automakers now sense an increasing level of maturity in the Indian market. this segment seems crowded. this segment only had the Tata Safari as part of the lineup of vehicles.disproved by the success of the Octavia. However. General Motor launched the Vectra in early 2003. and the Hyundai Terracan. Frost & Sullivan believes that the new launches in the ‗C‘ segment cars could also affect the fortunes of the premium end of the market. With the launch of the Mitsubishi Pajero. some consumers would count it as a premium class vehicle. However. Until recently.
greater sales of higher end cars. A brief profile of car manufacturing companies is mentioned in the following section : .
.4 percent. The Santro in the B segment.000 units per annum. the Sonata Embera in the E segment and the Tucson in the SUV segment. which will produce an additional 300.174 units. the Elantra in the D segment. In the domestic market it clocked a growth of 19. registered total sales of 299.000 units per annum by end of 2007. an increase of 18. HMIL‘s fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production.339units. with exports of 113.513 vehicles in calendar year (CY) 2006. while overseas sales grew by 17. In continuation of its investment in providing the Indian customer global technology.000 in2007. HMIL‘s service network will be expanded to around 1. Getz in the B+ segment. HMIL presently markets 16 variants of passenger cars in six segments. South Korea and is the second largest and the fastest growing car manufacturer in India. quality and testing capabilities in the country. the Accent and Verna in the C segment. Apart from expansion of production capacity. with 186. HMIL is setting up its second plant.Hyundai Motor India Limited Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company. HMIL plans to expand its dealer network. Hyundai Motor India. continuing its tradition of being the fastest growing passenger car manufacturer. HMIL is investing to expand capacity in line with its positioning as HMC‘s global export hub for compact cars.1 percent a compared to 2005. raising HMIL‘s total production capacity to 600. And with the company‘s greater focus on the quality of its after -sales service.5 percent over CY 2005. which will be increased from 183 to 250 this year.
even as it plans to continue its thrust in existing export markets. .000 th car.00. The year just ended also saw Hyundai Motor India attain other milestones such as the launch of the Verna and yet another path-breaking record in its young journey by rolling out the fastest 10.The year 2006 has been a significant year for Hyundai Motor India. it is gearing up to step up its foray into new markets. Hyundai exports to over 65 countries globally. It achieved a significant milestone by rolling out the fastest 300.000th export car.
FORD INDIA LIMITED The very first mass produced vehicle was the model T. this is reflected in the company‘s sprawling.000 vehicles per annum. Presently offering seven different models. 350 acre manufacturing plant in Maramalai Nagar near Chennai. If there is anything that‘s made this possible its Ford‘s ―Can Do‖ philosophy. in Ford plants around the world.m. currently Ford has a 78% stake. . Now the company stands tall among all automobile manufacturers and now houses some of the world‘s most favourite brands of cars.1700 crore.The Maraimalai Nagar Plant of Ford India Limited. In India.from Chennai. The philosophy that triggered Ford‘s growth worldwide.built in 1908.The plant has the capacity to manufacture 1. A project that has been set up with a investment of Rs. Ford India Limited is a subsidiary of Ford Motor Company. located roughly 45k. equipped with state-of-the-art vehicle manufacturing technology from Ford. Looks like FIL is all set to conquer the Indian market like rest of the world. which is going upto 92% soon. Ford India Limited (FIL) is catching up fast with the Indian consumer.00. Ever since the company has been coming out with models with breakthrough technology. provides employment to over 20000 people.
has had a long association with India – from 1928 till 1954. by unveiling new products and the most exciting lineup in its history. GM bought out its partner‘s shareholding and GM India became a fully-owned subsidiary of GM Corporation. Birla Group of Companies. Opel Corsa. Asia Pacific. General Motors Corporation. Pontiac. The next model. GM cars and trucks are sold under the following brands: Cadillac. Vectra . the Opel Astra. GM's vision is to be the world leader in transportation products and related services. In 1999.General Motors Founded in 1908. the company entered the MUV segment and launched the Chevrolet brand in India through the Forester. Opel.K. Oldsmobile. designs. was launched in 2000 and two variants of this model have been subsequently launched – Corsa Swing in 2001 and Corsa Sail in 2003. In 2003. GM India launched its first car model. It also launched the Opel Vectra and Chevrolet Optra. builds and markets cars and trucks worldwide. Latin America. Saturn and Vauxhall. in 1996. trucks. GM. Saab. Chevrolet. where it is in its 78th year as market leader. it used to assemble Chevrolet cars. GMC. the worldwide leader in car manufacturing. Holden. General Motors India was formed in 1994 as a 50:50 joint venture between General Motors Corporation and the C. GM's major markets are North America. Europe. the world's largest vehicle manufacturer. The total investment in GMI as of today is approximately US$ 252 million. GM India offers products under the Chevrolet and Opel brands in the country and has a total workforce of 1. Africa and the Middle East. Buick. buses and batteries for the domestic market as well as for exports. Its largest market is North America. Hummer.200 personnel.
GM India is on the road to breaking even and profitability this year. The company is targeting a turnover of US$ 375 million during the year. . the Tavera.and Forester were imported as CBUs while Optra was assembled in the Halol plant. up by US$ 208 million from last year. the company has launched another MUV model. In 2004. With the recent launch of its new car models and a few others in the pipeline.
The Joint Venture agreement was signed between Government of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. as a Government company with Suzuki Motor Corporation of Japan holding 26 per cent stake.822 vehicles in 2005-06 including exports of 34784 units. .61. Production of vehicles in large volumes Production of fuel efficient vehicles.00. The company sold 5. Maruti had a market share of about 54 per cent of the Indian passenger car market.000) Maruti cars have rolled out from its manufacturing facilities. over 6 million (60. Suzuki was an obvious choice because of its unparalled expertise in small cars. 1983. Maruti‘s cumulative exports are over 4 lakh units. The company went into production in a record time of 13 months and the first car was rolled out from Maruti Udyog Limited Gurgaon in December. It was entrusted the task of achieving the following: Modernization of the Indian Automobile Industry. Market Share Till date. At the end of 2005-06.Maruti Suzuki Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament.
000 crores (USD 5. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer.Tata Motors Tata Motors Limited is India's largest automobile company.5 billion) in 2005-06. with revenues of Rs. has also emerged as a global automotive company. it acquired the Daewoo Commercial Vehicles Company. and the second largest in the passenger vehicles market with winning products in the compact. It is the leader by far in commercial vehicles in each segment. 24. midsize car and utility vehicle segments. Tata Motors. The rechristened Tata Daewoo Commercial Vehicles Company has already begun to launch new products. . In 2004. the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004). Korea's second largest truck maker.
realise greater employement opportunities for local citizens. TKM aims to further contribute to progress in the Indian automotive industry.Toyota Kirloskar As a joint venture between Kirloskar Group and Toyota Motor Corporation. yet important aspect of its business philosophy . . Toyota Kirloskar Motor Private Limited (TKM) aims to play a major role in the development of the automotive industry and the creation of employment opportunities. but also through ancillary industries."Putting Customer First". TKM's growth since inception can be attributed to one simple. TKM firmly believes that the success of this venture depends on providing high quality products and services to all valued customers through the efforts of its team members. In this way. While managing growth. TKM has maintained its commitment to provide quality products at a reasonable price and has made every effort to meet changes in customer needs. not only through its dealer network. has adopted the "Growing Together" philosophy of its parent company TMC to create long-term business growth. improve the quality of life of the team members and promote robust economic activity in India. TKM. along with its dedicated dealers and suppliers.
To remain successful innovators. • Multifunctional teamwork – Successful product innovations are almost invariably the result of people in the company working together in teams rather than independently. There are numerous problems in measuring new product success.New Product Development Identifying and developing a new product is always a messy. it is necessary to identify both the critical success factors and the measures. its treatment remains elusive. Although the importance of measuring new product success is widely recognized. new product development. partly due to the multidimensional nature of such success. but most of them fail. and the resource allocation provided to. and. A review of relevant literature indicates greater simplicity in the process of critical success factors' . business managers must continually review their companies' to meet the three conditions for effective innovation: • Closeness to customers – Managers must know their customers and understand their needs and requirements well. The process of introducing new products is as risky as it is vital to the long-term success of companies. Revolutionary new products often come from upstart players or companies outside the industry whose vision is not limited by a focus on the current business and markets. The number of new products introduced globally is increasing every year. Measuring new product outcomes from innovation is also crucial for our understanding the organizational behaviors related to. experimental process. • Cross-functional communications – Innovations in most companies refer to the information flow between the key functions. One of the most important themes in innovation research has been an attempt to identify the factors that are associated with new product success. For many companies this process is more difficult and less successful than necessary. This has resulted in the use of large number of measures in the assessment of new product performance. and the multiple stakeholders who look for different things in the new product development product. the different levels of analysis that can been examined. Taking into consideration the importance of a new product for business performance of enterprise as a whole.
they point out some problems in selection of new product success measures.identification. and. depending on the character of innovation (for example. business model of enterprise (market-oriented enterprises as different forms of networks versus enterprises with traditional business models). the problems arise in identifying the system of new product success measures. The authors first analyze the critical factors of new product success. Isolated measures that are not integrated in the system of performance measures of enterprise as a whole. the different models for valuation have been created. Attempting to overcome the problem. However. The point is not in the deficiency of individual measures. size of enterprise (big global companies versus small and medium enterprises). but in imprecise definition of the subject of measures as well as in inadequacy of result interpretation. etc. there are some differences. distort the picture of efficiency and effectiveness of enterprise. after that. Logically. . radical versus incremental innovations). especially in condition of expressed connection of different participants in value chain. This is especially related to the new product success evaluation.
New Product : Success or Failure
The experiences of a large number of enterprises show that the failure in product development, particularly related to the products representing the basis for the creation of a whole range of other, so-called product platforms, originates from the phase of the product concept definition. The risk is more pronounced in the cases of developing the products that should create the needs of consumers. In such circumstances, when completely new products of high risk are created, technological and marketing uncertainties have to be studied in order to reduce or eliminate the risk of their implementation. The enterprises that are successful in this field are characterized by the management through projects, which enables successful management of each individual project and a network of projects within the enterprise, of interactions and relations among different projects and of the relationships with the environment . The surveys of the practices of successful companies suggest that adequate approaches (methods and
techniques) in the product creation and development should be selected in the conditions of abrupt technology and market changes. Different approaches may be applied.
Problems of Measuring Success of a New Product
• Creates a clear product course map of the enterprise where the managers, regardless of their functional location, understand the significance of the product for the enterprise. Product maps help in defining key priorities, in timely decision-making and in defining the products that shall represent the grounds for further development. This enables not only the improvement of final products but also the elimination of the lost efforts that divert the enterprise from more important activities. The product maps, as well as the processes that create them, are the central parts of the total product development process; • Develops the product strategy "without voids". Successful firms create a multitude of products in order to fill up the appearing voids in the market and satisfy new needs of their consumers. By studying the consumers and their purchasing motives, new market opportunities are identified and competition is neutralized; • Collects and uses valid information from the market and cooperates in particular with consumers and suppliers. The product creation process includes consumers-innovators, who are the first to accept the product and who appear in the role of referential groups, which facilitates not only a full satisfaction of consumers but enables the realization of the desired enterprise performances.
A new product was the result of a proactive research and development and the application of science. above all). especially in high-technology branches. • Integration of consumers into the process of value creation (from the idea to the realization of the product). as well as of the products resulting from their application. technological and marketing strategies. The development cycles of such technologies. identification of the benefits for potentially profitable consumers. in which the most difficult part is to provide reliable information necessary for shaping a customized offer.CRITICAL FACTORS OF THE SUCCESS OF NEW PRODUCTS A significant issue related to the success of managing a new product development project is the identification of critical factors of success. This is a very complex process. Technology was formerly considered as the only factor of a new product success. the enterprise management should decide on the project selection criteria within the framework of a complex system of business performance measurement. starting from the characteristics of the new product project. Rapid technology and market changes impose the need to coordinate research-developmental. This approach is still very successful. major competencies of the enterprise and features of the market (consumers and competition. The producers of high-technology products are forced to shorten the periods of new product development and launching. This is the basis of their selection. determination of priorities and allocation of resources. Since the measures of new product success are different and each enterprise uses its own system of standards. Such approach is known as the technology pushing. Numerous empirical research projects show that the critical factors of the new product success are the following: • Definition of a new product prior to its development – the analysis and selection of a target market. The process of new product development is progressively acquiring the characteristics of a marketmanaged project. The application of modern information and communication technologies and the execution of . where the changes in the market are very fast and projects are extremely expensive and risky. are ever shorter.
they may represent significant limitations as well. Computerized operations are the most flexible. • The product innovativeness. which contributes to more efficient time management. launching and ommercialization by adequate strategic positioning. are varying largely. while the costs of activities in the customization process are reduced to acceptable limits. • Logistic activities largely restrain successful commercialization of a new product. • Controlled cannibalization. • The product superiority based on the quality as a strategic instrument and on the superior value delivered. • Superiority based on other elements of the offer – services offered to consumers. the levels of competence in flexible production. Alongside with the development of the Internet and electronic trade. that is of the appropriate marketing infrastructure. technological and marketing synergy and involvement of the top management into the process of new product development. • Organization and guidance of the project of a new product development. • Flexibility enhancing the adjustment potentials even in the industries falling into the group of so-called mature ones. particularly in certain enterprises. empirical research points out that the organizational culture is crucial for the enterprise transformation into a flexible system that reacts proactively to the market requirements. In view of the situation in some industries and branches. However. and therefore innovation. • Inter-functional coordination. which eventually increase the product value. It is not enough just to make a product fit the buyer's standards. Although the activities related to the product delivery to the buyer enlarge the value for customers. • High-quality performance of new product development activities.online marketing research enable successful overcoming of limitations. it becomes easier to solve the problems of delivering value to consumers .
you need to be able to learn from the process to achieve more success down the line.Measuring Success of New Products New products are important for business success of enterprise as a whole. it changes the basis of competitive advantage and it changes industry economics Once you've introduced a new product or service or developed significant improvements to existing ones. An idea is radical if it meets one or more of three tests: it changes customer expectations and behaviors. The interpretation of success is affected by the interest groups involved in new product development (R&R. Radical innovation has a high probability of failure but can be more profitable than incremental innovation." which is usually conducted in a controlled group of stores . and brand image at a given point in time trial and repeat purchase tracking studies that record weekly purchases of similar products by target consumers. more sophisticated competitors: usage and attitude studies that examine consumer usage and attitude about products. production. advertising. brand awareness. compatible and incompatible. marketing). Similarly. incompatible innovation can be more profitable than compatible one. Complexity of measuring comes from character of innovation radical. Whether the introduction is ultimately successful or not. as well as the reasons for buying or not buying the products (this type of study is sometimes called a diary panel) simulated test marketing called "experimental primary lab research. Measuring new product success and its contribution to business performance of enterprise as a whole is a very complex process. Most small companies cannot afford the complex and costly consumer tracking studies used by larger. as it has not been well defined. A fundamental problem when measuring new product success lies in the meaning of such success. you'll naturally want to do some follow-up to measure the success of the project." which is usually conducted in store malls under controlled conditions controlled field testing called "experimental primary field research. incremental.
but free. way to measure initial purchase vs. qualitative research without standard interview controls.g. It is relatively easy to vary introductory spending in each market.g. close to your buyers (e. Conduct a test of advertising spending levels in different test markets or. retailers) and end users. over different time periods. Starch. The three most important aspects to be measured are: Financial performance Market impact Opportunity window dimensions . with a single business in one location. compared to receipts for reorders. or AC Nielsen market research companies But small companies can conduct low-cost or free qualitative research: Talk to buyers and consumers about product satisfaction and purchases. one store) may have to vary spending levels over matched periods of time and compare sales results. There are no reconciled opinions in the literature on new product success measures.advertising awareness and recall studies that examine the efficacy of print and electronic advertising on target buyers. this is biased. Examine weekly company sales receipts for new account sales. often conducted by the Burke.50 percent in each market for each spending variable. And it places you at point-of-purchase.. But it is timely information and may be actionable. if you are testing a number of geographical markets. try increasing your local newspaper advertising spending 50 percent over the same quarter of the previous year. However.. For example. From a marketing research standpoint. Small companies (e. This is an indirect. one should have significant spending differences of at least +/. reorder sales.
.Various other measures that have been suggested by certain authors are: rate of success percent of sales profitability relative to investment range of technical success influence on sales influence on profit success in meeting sale goals success in meeting profit goals profitability relative to competition and global success. .
Corporate image and brand identity. lead acquisition and deal flow. which can include metrics such as market share gains. short listing of some car models have been done to make the study more specific and effective. user attachment and affinity. Few models from varying segments and different manufacturers have been short listed . The more you understand your customer‘s needs and wants the more you can satisfy them. their buying decision process — the greater the likelihood your sales and marketing efforts will be successful. and tonality of coverage . retention and relevance of messaging. The project deals with measuring success of new product launch for cars launched in the past four years.Measuring Success for automobiles Development of a new product in case of automobiles is a very difficult job. The measure of success for an automobile is very difficult. which can include market adoption rates. loyalty and word-of-mouth. awareness and retention of employees. But overall success for an organization should fulfill these objectives: Business acquisition/demand generation. People are buying from you. . which can include share of voice and discussion. Corporate vision and leadership. The time over which you want to evaluate your product success changes the the volume or amount you are expecting. Product innovation/acceptance.These have been introduced in the past few years and are new to the industry . Time horizon has big say in measuring of the new product success. Due to exhaustive nature of the industry. It‘s important to look at the business from the customer‘s and market‘s perspective. For different markets different conditions have to be taken into account . which can include growth in brand value and financial equity. the study has been confined to cars only. Different organizations define it in their own way. Further. And the more you understand how they buy — that is.
Ownership experience In order to determine which success factors to measure and the appropriate metrics for each.Few models that have been shortlisted are : Maruti Suzuki Swift Toyota Innova Hyundai Getz Tata Indigo Ford Fiesta GM Aveo There are certain parameters on the basis of which a car is evaluated in the Indian market. handling & brakes 7. Design & styling 5. Ride . Driving pleasure 8. marketers must have a clear understanding of the company's goals. A young company looking to gain traction in the market is focused on different factors than a more established company wanting to improve its customer relationships. Engine. Relevance to the Indian market 3. Value for money 4. Safety 10. Fitness for purpose 2. Most of them include:- 1. gearbox & performance 6. The following parameters have been selected to measure the success of new products in Indian automobile industry: . Fuel efficiency 9.
Market share Awareness Repeat purchase and advocacy Customer Satisfaction .
MARKET SHARE The passenger car industry was dominated by Premier Automobiles Limited (PAL) and Hindustan Motors Limited (HM) before 1980.1% in H1FY2003).2% (up from 48. Hyundai. in the Rs. MUL captured a major share of the market as it offered a better product at a lower price. MUL continued to strengthen its dominance in the passenger car market and faced virtually no competition till the sector was opened up in 1993. in the late 1990s. Alto.3-0. the market share of PAL and HM declined rapidly even as they were able to sustain sales in volume terms. Versa. MUL's pricing was very competitive as it had relatively higher indigenisation levels and established vendor base besides a depreciated plant. In just four years since the commencement of production. Omni. Although MUL continued to be the market leader. Zen. Subsequent to the entry of MUL. MUL's market position was not affected even after the entry of many foreign players as none of the new entrants targeted the small car segment. The company has been able to strengthen its market share during H1FY2004 at 50.5% in FY2002 accounted for by its models (Maruti 800. Tata Motors and Daewoo launched Santro. and none of the newer players could penetrate this segment. Esteem and Baleno. Grand Vitara) across different price ranges. its share in the total passenger car sales has been declining and stood at 50. However.8% in FY2003 as against 54. 0. the market structure of the passenger car industry in India changed dramatically. With the entry of MUL in 1982. Wagon R. . Indica and Matiz respectively. Hyundai Motors India has emerged the second largest player in the Indian automobile market.4 million range.
Market Share of Players in the domestic passenger car market H1FY2005 H1FY2006 .
Profiles of Select Players in the Indian Automobile Industry Year of incorporation Name Indian Partner Collaborator Foreign Equity DailmerChrysler India Private Ltd Fiat India Automobiles Pvt Limited None DailmerChrysler AG 100% 1995 None Fiat Auto SPA. The volumes of most players are below 100. USA None Honda Motor 84. Japan Hyundai Motor Company. Korea Suzuki Motor Company. Japan 88. In most mature markets. the manufacturers are not able to realise economies. With low volumes. there are around half a dozen players dominating the passenger car industry. Japan 99% 1995 Hyundai Motor India Limited Maruti Udyog Limited Tata Motors Limited Toyota Kirloskar Motors Limited None 100% 1996 Government of India 54.2% 1982 Tata Group None - 1942 Kirloskar Group Toyota Motor Corporation.1% 195 General Motors India Limted Hindustan Motors - 100% 1995 CK Birla Group 100% 1940s Honda Siel Cars India Limited Siel Limited Company Limited. with the new environmental norms being proposed. USA General Motors Corporation. Italy 100% 1997 Ford India Limited Mahindra & Mahindra Ltd Ford Motor Company. Further.000-150. the level that is considered viable in the developing economies.9% 1997 The sales to capacity ratio for select players4 in the Indian passenger car industry has improved from 66% in FY1999 to 73% in FY2004.000 units a year. the cost of compliance may add to .
and pricing. the Indian partners contributed their understanding of the local market. reach of dealer network. efficiency of after-sales service. some JVs have been converted into wholly owned subsidiaries of the foreign parent or the foreign parent has increased its stake in the JV significantly. Some of the critical success factors for passenger car manufacturers in the emerging scenario are indigenization levels. With leading international players demonstrating increasing commitment to their Indian ventures. with the Indian JV partners not able to pump in the requisite capital for expansion. With the liberalization of the automobile sector in the early 1990s. most of the international players entered the Indian market through the joint venture (JV) route. the market is likely to consolidate over time. However. While foreign manufacturers brought in the latest in automobile technology. Ford India and Toyota Kirloskar Motors are cases in point.the cost of production. . This understanding of the local markets was particularly useful in building dealership and distribution networks. volumes.
the more popular (by a big margin) of the two models — petrol and diesel — is the latter.5 lakh for the base model.Of course. and for obvious reasons. high speed composure and gearshift. with its advanced. GM Aveo The Aveo's big.6 litre petrol variants. but still manages to come across as a value-formoney package. The Fiesta 1. It falls short in a few areas like the handling.4 and 1. the Aveo will give primarily compete with the Honda City. trapezoidal headlights and strong chin give it an imposing look that makes it look bigger than it actually is. `fuel-frugal' common rail injection diesel technology engine and its diesel fuel advantage is clearly the first choice amongst fuel-efficiency conscious sedan buyers. Ford Fiesta enjoys a market share of about 18 % in its segment. .In the Indian automobile market. the car has become the second largest selling family sedan in the Indian market.FORD FIESTA The Ford Fiesta has quickly climbed up the market share ladder. The sedan is priced at a nifty Rs 5.4 TDCi.The Aveo is available in two engine capacities 1. Within a year of its launch. GM has also gone all out to make the Aveo's interiors look and feel plush. Ford Fiesta and . deep-set grille.
The car derives its name from the words ‗India‘ and ‗go‘.Hyundai Accent. as it symbolizes a nation on the move and is aimed at Indians on the go wanting to make a purposeful statement. Tata Indigo Tata Engineering signaled its impending entry into the mid-size segment with the naming of the indigenously developed Tata Indigo. This is the first time GM entered the volume segment. . GM wanted to be seen as volume player in India and Aveo has just given them that . India‘s first sedan. The Aveo has quickly acquired a market share of around 5 % in a very span of time.The Aveo has given GM a push in the Indian automobile market.
the car will be launched with 14-inch wheels and a first-in-class independent three link and strut type rear suspension with anti-roll bar seen only in more premium segment cars. Powered by a 85 bhp petrol and a 62 bhp turbo-diesel engine. more than adequate for long outstation drives with the family. undaunted by new challenges. It has 500 litres of trunk space and 42 litres of fuel tank capacity. enthusiasm. . Currently it enjoys a market share of around 17 % in its segment.Tata Indigo is targeted at people who exude energy. ambition and the desire to succeed and are raring to go.
and antilock braking system together with electronic brake-force-distribution. Maruti Swift VXi.Maruti Swift Maruti Swift brings a feeling of freshness to the compact car segment.As a result it is giving tough competition to cars even in other segment due its big car features. Active safety technologies include dual front airbags. Swift enjoys a share of more than 50 % in its hatch back segment and sells around 5500-6000 units per month. Maruti Swift comes in three variants-Maruti Swift LXi. Maruti Suzuki Swift comes with a number of safety features such as collapsible steering column. Its appealing looks. Hyundai Getz . front seatbelt pre-tensioners with load limiters. and energy absorbing trim all around.. and a whole lot of user-friendly features at once catch your attention. spacious interiors. and Maruti Swift ZXi.
period. or the Tata Indigo and even its own sibling.to begin with. It enjoys a market share of about 20% in its segment. Toyota's famous D4D common rail diesel engine is a proven performer.2494cc . the Accent. Toyota Innova Showing the way forward in though and execution as also a new way of motoring life is Toyota with the classy and powerful Innova. This engine has capacity . but is truly `smack bang' in the C class in terms of interior room.The 3810 mm long Getz is in the B plus segment in terms of length. Toyota has probably the best diesel engine in its class on offer. refinement and performance. The look is all new and refreshingly curvy and pleasing where the boxy Qualis looked like a weightlifter on skinny legs. has a strong dohc 16-valve . having excelled not only in various pick-ups and SUVs in Asia but also in certain saloons in Europe. In terms of all these it is at least a match for the Ford Ikon. comfort. the Maruti Esteem. heralding a whole new category.
top end force fed by a turbocharger and the latest generation common rail diesel injection system to make for not just a punchy and frugal prime mover but also a very refined powerplant which effortlessly meets the latest Euro III emission norms.It enjoys a market share of above 40 % in the MUV segment. .
Status buyers want to show-off success and attract attention. and status account for over 50% of the car buyers in India. Liberation is the smallest of the six need segments – these buyers seek increased freedom and latest technology. The study identifies the following six need segments in the Indian automotive market: Contrary to the belief that prestige and status needs are pre-dominantly among buyers of higher-end vehicles. Superior craftsmanship and best technology are imagery issues that this group relates to. brand image of trendy and innovative appeals to this group. While prestige and potency related needs are the key motivators for entry luxury buyers. safety consciousness is relatively higher among them. The key drivers for the six need segments in India are summarized below: Potency buyers are motivated by a need to attract opposite sex and feel powerful. It is apparent from the need segment drivers that a majority of motives are about what a consumer desires to communicate to the outside world based on the car he/ she uses. Prestige buyers are motivated by a need for prestige.Buying behavior exhibited while purchasing an automobile According to the primary research conducted emotive needs such as potency. SUV finds preference for these buyers who relate to their cars as ―lover‖. the study clearly reveals that needs exist across vehicle segments. including the cheaper small cars. They are least price sensitive and desirous of latest/ futuristic features in cars Adventure buyers seek fun & adventure and to increase popularity. Value for money and cost of ownership are the benefits that these buyers associate with. these needs exist across segments. Utility buyers seek a need for basic transportation and care for family. indulge self. it is vital to understand these underlying drivers for consumer behavior and position brands accordingly instead of solely focusing on rational elements of .Therefore. and exclusivity. prestige.
while Maruti‘s is more protective. both these makes finds similarities on some of the rational brand drivers such as good fuel economy. Similarly. Toyota. Consequently. The two examples below further illustrate the essence of these differences. and good after-sales service coverage. increase popularity and show-off success are stronger motivations for Hyundai. in comparison. Honda‘s positioning is closer to the individual oriented zone of self-assertion – reflected in one of its key motive of ―feel powerful‖. practical cars. potency need is about self-assertion and more individual oriented. easy to maintain. while status need is more subdued. Honda and Toyota: Superior craftsmanship is a key similarity for both these brands at a rational-level. falls more on the expressive and affiliative side with motives like ―feel young‖ and ―for adventure and fun‖. While brands cut across different need segments due to a similar identity. whereas prestige is more about affiliation and family oriented. . However. Needs such as adventure and liberation are more expressive. Hyundai finds a relatively better ―fit‖ with adventure and potency as compared to utility and status for Maruti. while basic transportation and fit-in socially is higher for Maruti. Hyundai and Maruti: At a rational-level. For example.purchase such as fuel economy and engine power. the varying degrees of ―fit‖ is determined by its soul or persona. However. Hyundai‘s persona is more expressive.
non-availability of public transport services. and changing consumer profiles. other factors included the need for greater mobility. increasing levels of urbanisation.Key Demand Drivers Disposable income was perceived as the key factor driving passenger car demand. availability of cheap finance. introduction of new technologically superior models. development of the used-car market. But over time. .
Market Characteristics Product Penetration The penetration of passenger cars in India stood at five per thousand persons as against 27 for two-wheelers in 2000.8% of the automobile market in terms of units sold in FY2004. The automobile industry in India is still concentrated around the mini and the compact segments which together account for around 81. . the Indian figures are lower than even those for economies like Indonesia (14 and 62). Significantly. The relatively high penetration of twowheelers in India reflects the population's need for mobility and their limited affordability. the domestic car market has been segmented on the basis of vehicle price till SIAM introduced the length-based2 classification of passenger cars since FY2003. Automotive Penetration (vehicles in use per thousand persons)* Passenger Cars USA United Kingdom Japan Germany China Indonesia South Korea India 478 373 395 508 3 14 167 5 Two wheelers 14 12 115 36 8 62 59 27 *Source: World Bank Market Segmentation Considering that affordability is the most important demand driver in India.
Palio Siena Adventure General Motors India Ltd. Opel Corsa Sail Opel Corsa Chevrolet Optra Opel Vectra Contessa Sonata Honda Siel India Ltd. SIAM classification of Motor cars( Segment-Wise) is discussed in following section Mini Compact Mid-Size Executive Premium Luxury Vehicle Length 3401 3400mm to 4000 4001-4500 4501-4700 4701-5000 >5001 Maruti Udyog Ltd.The following table presents various models in each segment of the domestic passenger car market. Ikon Tata Motors Indica Indigo DaimlerChrysler India Ltd MercedesBenz C Class Skoda Octavia Toyota Kirlosker Corolla Camry Laura superb Mercedes Benz E Class Mercedes -Benz S class Mondeo Mondeo Accord . Ambassador Contessa Mitsubishi Lancer Fiat India Automobile Ltd. City Ford India Ltd. 800 Omni Alto Zen Wagon R Esteem Baleno Altura Hyundai Motor India Ltd Santro Accent Hindustan Motors Ltd.
the new car they upgrade to must be a kind of aspiration to them and must inspire to reach for it.Only 24 % people are attracted by the mileage as a first criteria for their attraction towards a car which was considered to be the . more than 7yrs 9% 5 to 7yrs 24% 1 to 3yrs 23% 1 to 3yrs 3 to 5 yrs 5 to 7yrs more than 7yrs 3 to 5 yrs 44% Also which came out as a surprise around 58 % of the people surveyed are attracted by the styling and performance (combined) of the car.As surveyed 44% of the people would like to change their car within 3. Hence.23 % of the people will retain their car for only next 1-3 yrs from the date of purchase. where as only 24 % of the people would retain their car for next 5-7 yrs. This results from their aspiration for growth in their lives both professional and personal. People with increasing level of incomes are more willing to change their car model and upgrade to a better one. This percentage depends upon the age group of the people and their disposable income.5 yrs of their purchase.
Duratorq . 21% yes no 79% When we talk about the brand names most of the people rate Japanese as better manufacturers of cars (around 36 %) where as 27 % of people still trust Germans the . turbo as a feature of the car which they believe will attract most customers but most of the people do not understand these terms.main criteria by most of the companies. 18% 24% Mileage Styling Performance 24% 34% Brand name Nowadays we see the automobile manufacturers advertising their new technological terms such as CRDI. Also 18 % still think brand name is most important to them over other parameters when they first notice an automobile.
styling is very important/important to 56 % of the people. Around 16 % and 13 % of people rate Koreans and Americans (respectively)as preferred car manufacturers. Satisfaction Survey . Awareness and Repurchase as measure . 40 35 30 25 20 15 10 5 0 1 13 8 27 36 Americans Germans 16 Indians Japnese Korean While choosing an automobile. 31 % of the people still think power and performance is important/very important to them while only 16 % of the people think brand name is very important/important to them.innovators & quality specialists as the best car manufacturers. A few people still like Indians as manufacturers of automobiles. where as 68 % of the people think mileage is very important to them. 26 % people believe that interiors and ride quality is important to them while 34 % of people believe hat after sales service is important to them.
Customers primarily form their expectations through past purchasing experiences. whether or not that product or service met the customer's expectations. in particular. In the automobile industry which is a high involvement product there are large no. If the customer's expectation isn't met. Satisfaction surveys are an important method for collecting information about how your customers think and feel about your brand. Premium prices: a highly satisfied customer is willing to pay more for the product or service. such as advertising or public relations. Repeat purchase: a highly satisfied customer buys more products. product or service. of parameters while purchasing an automobile. they will be dissatisfied and it's very likely they will tell others about their experience. A survey is carried out with the existing owners of the the products and they are asked to give their rating on the based if their experience with the product . Reduced costs: a highly satisfied customer costs less to serve than a new customer. Referrals: a highly satisfied customer tells their family and friends about the product or service. friends and colleagues and information delivered through marketing activities. including: Loyalty: a highly satisfied customer is a loyal customer. wordof-mouth from family. It's about understanding the way a customer feels after purchasing a product or service and. Different people have different needs and they choose the product .As mentioned earlier satisfaction survey is one of the method to to measure the success of a car. Retention: a highly satisfied customer is less likely to switch brands. Why customer satisfaction is important in automobile industry A high level of satisfaction can deliver many benefits. Customer satisfaction can help your business achieve a sustainable competitive advantage.
Even though segmentation in Indian market is done on the length it should be done on the customer needs.explores satisfaction with the reliability of seats. braking etc which make an automobile . Then the data is divided into six categories which covers all the aspects of the car from mechanical components to after sales service. transmission and braking systems. In a car there are large number of factors such as mileage. Each owner who takes part completes a sixteen question evaluation . Owners rate their cars using a scale of 2 to 8(2. So all these components have to be equally effective or according to their weights demanded by the customer to make an automobile successful. THE CATEGORIES EXPLAINED Mechanical Problems . Different profile or set of profile should be made and segments should be defined accordingly. handling . determine whether your customers believe you are meeting those expectations. airconditioning and ventilation. heating. dashboard and interior. More over the segmentation for the vehicle has to be clearly defined. Interior Problems . suspension.6.8) – 2 represents not satisfied while 8 is very satisfied.4. what problems they‘ve had.uncovers satisfaction levels with the reliability of the car‘s engine. A good customer satisfaction survey will also help you to understand the causes of dissatisfaction among your customers. sound systems. interiors. engine power and performance. .accordingly. A satisfaction survey can help you to understand the expectations of your customers. mechanical components. Once you've identified these issues. identify new customer requirements or trends in the market and determine what areas of your business need investment.They include likes and dislikes about their car. you'll be able to implement new practices to improve customer satisfaction. quality of dealer service and a section on running costs.
brak ing. It also looks at how competent the service department is at diagnosing and rectifying faults. followed by vehicle appeal. Dealer Service . engine and transmission. and finally dealer service. getz indigo aveo innova fiesta swift 0 10 20 30 29 32 35 Series1 41 39 34 40 50 Findings . This takes every aspect of the car into account and is influenced most by reliability and vehicle quality. rust and corrosion and exterior lights. insuring and servicing the car.evaluates the performance of the franchised dealer network.surveys body panels. then ownership costs.discloses owners‘ perceptions of value for money when at the filling station. paint problems. Ownership Costs .looks at appeal of the car‘s ride.Exterior Problems . Vehicle Performance . from the ease of booking a service to customer care. This pivotal figure is then expressed as a percentage and an overall rating. handling. Finally the car is given an overall score.
interiors .e. Fiesta is followed by Tata Indigo and Swift which have achieved a score of 35 and 34 respectively. exteriors after sales service into consideration. Rest remaining are Hyundai Getz and GM Aveo which have achieved a score of 32 and 29 respectively. Also being a hatchback it should have bigger boot which it lacks. Even though it got less scores in appealing . Ford Fiesta has also reached a competitive total of 39 which sets it apart from the other vehicles in its class.Indigo is a good car but uts engine still needs refinement.This shows customers who have purchased Innova are highly satisfied with their car taking all the factors such as mechanical components .It has been founded that according to the satisfaction survey Toyota Innova tops the customer satisfaction ratings.The engine delivers good power and mileage but has the shortcomings of a diesel engine. Swift is an excellent car with drawbacks only with the mileage and probably the price of the car. It has achieved a highest points i. the 41points. Awareness . styling and interiors it got highest in the ownership costs since it delivers a highest mileage. With introduction of diesel engine in swift which maruti has recently launched its sure going to be hit.
12% 34% 36% 18% Advertisements Magazines Friends/Relatives On the Road So the experience of the owner with the product has to be a satisfactory one. . It is the the word of mouth that makes a car popular. More than 50 % of the people said they were aware of the product before the actual launch.According to survey 36 % of the people come to know about the car from their friends and relatives. This clearly shows that awareness was high among them but they were just waiting for the launch and wanted a market review.
Conclusion .13 % of people feel they would give negative recommendation.Advocacy 13% 41% 22% convince recommend won't recommend negative recommend 24% 41 % of people say they would convince a person planning to purchase a car that they have purchased whereas 24 % say they would only recommend only.22% say they would not recommend anyone and would not like to influence anyone decision.
Around 63 % of people owning a fiesta say they are willing to repurchase fiesta if buying a second car or changing the car. They would (around 60%) convince others to purchase this car if in the same segment. Different people have different needs and they choose the product accordingly. Next car that comes up is the Maruti Swift. . mechanical components. Next car is the Tata Indigo which has a higher satisfaction score than swift but is more in Taxi segment and had an good sales volume initially but with introduction of Fiesta sales volume has gone down.Around 54 % of people say they repurchase this car if improved mileage could be delivered. engine power and performance. Fiesta is the runners-up. In a car there are large number of factors such as mileage. of parameters while purchasing an automobile.Also taking sales volume and market share Fiesta is clearly not lagging behind Innova and is sense of pride for Ford. Hence .6000 per month. With mileage being only drawback and the boot it will top rankings when diesel model is introduced. So all these components have to be equally effective or according to their weights demanded by the customer to make an automobile successful. In the automobile industry which is a high involvement product there are large no. Swift is an excellent car wih a sales volume of around 5500. handling .On the basis of the parameters selected it clearly shows that Toyota Innova and Ford Fiesta have topped the rankings in the satisfaction survey.Also taking other factors that is the market share and the sales volume of the car it is clearly a success for Toyota Hence Innova has topped the group with that and the next car that closely follows it is the Ford Fiesta . interiors. Even though segmentation in Indian market is done on the length it should be done on the . More than 72 % of Innova owners say they are willing to repurchase it if provided with subsequent developments with time . braking etc which make an automobile . More over the segmentation for the vehicle has to be clearly defined.
running innovative marketing campaigns to attract potential buyers. There has been an increase in the bargaining power of buyers while the power of suppliers is on the decline. and providing excellent after-sales service. The key strategies in the Indian car market will be offering good-quality cars that provide value for money. . the Indian car industry has transformed into a buyers market. there are opportunities for players to spot gaps in the market and cater to particular niches like sports utility vehicles. This led to the industry providing technologically superior models at competitive prices and consumers getting attractive finance schemes and various cars off the shelf. will be at a significant advantage because of their ability to cross-subsidise models.customer needs. Companies which have a range of vehicles in all the segments of the market. TRENDS IN THE INDIAN PASSENGER CAR MARKET Changing Manufacturer-Customer Relationship With competition among firms intensifying and new models being launched. Further. Different profile or set of profile should be made and segments should be defined accordingly.
Changing Face of the Indian Passenger Car Industry .
Please feel free in giving your response as the information provided will be kept confidential and will be utilized only for research purpose.5000 b) Rs. The present research work is being carried out by the students of ICFAI Business School. The objective of this research is measure the success of new products in Indian automobile industry . Gurgaon as a part of their academic curriculum.) 2) Gender i) Male ii) Female 3) Occupation i) Service ii) Business iii) Professional iv) Student v) Others 4) Monthly household income a) Less than Rs.15001-30000 d) More than Rs.5001-15000 c) Rs. Please give the following particulars: 1) Name ____________________ ________________(yrs.Annexure I Dear Respondents. There is no right or wrong answers and there is no time limit to finish but try to finish it as soon as possible.30000 Age .
How often do you change your car or purchase a car ? (i) 1-3 yrs (ii) 3-5 yrs (iii) 5-7 yrs (iv) more than 7yrs 4. performance & ride quality (iv) Brand name 5. How much time it has been with your car ? (i) Less than 1 yr (ii) 1-2 yrs (iii) 2-3 yrs (iv) 3-4 yrs 3. Car that you own ……………… (i) Swift ( ii ) Getz (iii) Aveo (iv) Fiesta (v) Innova (vi) Indigo 2. How important to you are the following while purchasing a car : Very Important Important Less Important Not Important Styling(looks) Mileage Price Brand Name Technology Ride Quality & Interiors Power & Performance After sales service ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ . What is the first thing that attracts you towards a car ? (i) Mileage (ii) Styling & looks (iii) Power.1.
Turbo etc. ventilation etc) of the car ? Very Satisfied ___ Satisfied ___ Less Satisfied ___ Not satisfied ___ 11. body panels . exteriors lights etc) of the car ? Very Satisfied ___ Satisfied ___ Less Satisfied ___ Not satisfied ___ . How much you are satisfied with the interiors (seats. . Transmission etc) of the car ? Very Satisfied ___ Satisfied ___ Less Satisfied ___ Not satisfied ___ 10. Duratorq. (i) (ii) Yes No 8. air conditioning . Rank these car manufacturers in the order you feel think they are better than the others? (i) (ii) (iii) (iv) (v) Americans Germans Indians Japnese Korean 7. Where did you first saw/spotted or came to know about the car you are owning ? (i) (ii) (iii) (iv) Advertisements Magazine reports Friends/ Relatives On the road 9. suspension. How much you are satisfied with the exterior (styling . DICOR.dash board. How much you are satisfied with the mechanical components(engine. Do you understand the technological terms such as CRDI. rust & corrosion prob.6.paint .
handling braking etc) of the car ? Very Satisfied ___ Satisfied ___ Less Satisfied ___ Not satisfied ___ 13.servicing etc) of the car ? Very Satisfied ___ Satisfied ___ Less Satisfied ___ Not satisfied ___ 15.spares etc) of the car ? Very Satisfied ___ Satisfied ___ Less Satisfied ___ Not satisfied ___ 14. How much you are satisfied with the after sales service(dealer network. A friend or relative of yours purchasing a car in the same segment as of your car you would : (i) (ii) (iii) (iv) Convince him Recommend him Won‘t recommend Negative recommendation 16. How much you are satisfied with the ownership costs(mileage. insurance. spare costs. If purchasing a second car or changing your car would you like to go for your current car again ? (i) (ii) Yes No .12. How much you are satisfied with the vehicle performance (car ride .
co.com Books SIAM journals ICMR Journals Magazines Autocar BS Motoring Business Today .com www.References Websites www.siamindia.asp www.in/siam.automonitor.ibef.com www.org www.cybersteering.indiacar.
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