Honda marketing Strategy: The American Honda Motor Company was established as a subsidiary by Honda in 1959.

During the 1960's the type of motorcycles brought by Americans underwent a major change. Motorcycle registrations increased by over 800,000 in five years from 1960. In the early 60's the major competitors were Haley - Davidson of U.S.A, BSA, Triumph and Norton of the UK and Motto - Guzzi of Italy. Harley-Davidson had the largest market share with sales in 1959 totalling a6.6 million dollars. Many of the motorcycles produced were large and bulky and this led to the image of the motorcycle rider as being one who wore a leather jacket and went out to cause trouble. The Boston Consulting Group ( BCG ) report was initiated by the British government to study the decline in British motorcycle companies around the world, especially in the USA where sales had dropped from 49 0n 1959 to 9 0n 1973. The two key factors the report identified was the market share loss and profitability declines an the scale economy disadvantages in technology, distribution, and manufacturing. The BCG report showed that success of the Japanese manufacturers started with the growth of their own domestic markets. The high production for domestic demand led to Honda experiencing economies of scale as the cost of producing motorbikes declined with the level of output. This provided Honda to achieve a highly competitive cost position which they used to penetrate into the US market. " The basic philosophy of the Japanese manufacture is that high volumes per model provide the potential for high productivity as a result of using capital intensive and highly automated techniques. Their marketing strategies are therefore directed towards developing these high model volumes, hence the careful attention that we have observed them giving to growth and market share." (BCG p.59 ). The report goes on to show how Honda built up engineering competencies through the innovation of Mr Honda. The company also moved away from other companies who relied upon distributors to sell their bikes when the company set up its headquarters in the west coast of America. The BCG found that the motorcycles available before Honda entered the market were for limited group of people such as the police, army etc. But Honda had a "policy of selling, not primarily to confirmed motorcyclists but rather to members of the general public who had never before given a second thought to a motorcycle"( SP p.116 ). The small, lightweight Honda Supercub sold at under 250 dollars compared to the bigger American or British machines which were retailing at around 1000 to 1500 dollars. In 1960 Honda's research team comprised of around 700 designer and engineer staff compared to the 100 or so employed by their competitors showing the value which the company placed on innovation. Production per man-year was 159 units in 1962, a figure not reached by Harley-Davidson until 1974. Honda was following a strategy of developing region by region. Over a period of four to five years they moved from the west coast of America to the east coast. The report showed the emphasis which Honda paid to advertising when the company spent heavily on the advertising theme " you meet the nicest people on a Honda" thereby

disassociating themselves

from the rowdy, hell's angels type of people.

Essentially the BCG is portraying Honda as a firm dedicated to being a low cost producer, utilising its dominant position in Japan to force entry into the U.S market, redefining that market by putting up the nicest people image and exploiting its comparative advantage via aggressive advertising and pricing. Pascale tends to disagree on many points of the BCG report. The report suggests that there was a smooth entry into the U.S market which led to an instant success. Pascale argues that Honda entered the American market at the end of the motorcycle trade season showing their impotence to carry out research in the new market. As they entered the market at the wrong time sales were not as good as they should have been and any success was not going to be instantaneous. Pascale also criticises the assumption that Honda was superior to other competitors in productivity. He says that Honda was successful in Japan with productivity but circumstances indicate that the company was not superior. The lack of funding from the ministry of finance and the ploughing back of profits into inventory meant they had a tight budget to follow. The BCG report shows that Honda had a smooth policy of developing region by region, moving from the west to the east. Pascale response is that this is partly true but reminds that Hondas advertising was still in Los Angeles in 1963, four years after setting up their subsidiary. The report to the British government showed that Honda had a deliberate strategy of disassociating themselves from the hells angels type of people by following the nicest people advertisement policy. Pascale shows that this was not an intentional move since there were disputes within the company with the director of sales eventually persuading to management against their better judgement. The BCG report found Honda pushed into the U.S market with small lightweight motorbikes. However Pascale says this is again not true. He argues the intended strategy was one of promoting the larger 250cc and 350cc as Honda felt that this was what the market wanted since Americans liked all things large. The bikes were unreliable which led to the promotion of the supercubs. These bikes salvaged the reputation of the company. An idea which hardly came from an inspired idea but one of desperation. Overall Pascale gives the impression that it was through an incidental sequence of events which led to Honda gaining a strong hold in the U.S market, mainly through the unexpected discovery of a large untapped segment of the market while at the same time trying to retain the interest of the current market. The criticism made by Pascale can be further analysed by looking at the strengths of the Honda company. The strengths of Honda start with the roles which the founders played. Honda was an inventive genius with a large ego and a volatile temperament. His main concerns were not about the profitability of the company or its products, but rather to show his innovative ability by producing better engines. Fujisawa on the other hand thought about the financial section of the company and how to market the ideas. He often challenged Honda to come up with better engines. By specialising in their own abilities

the two of them were able to pool together resources and function effectively as a team. Another strength was the way the company utilised its market position. Strengths in design advantages and production methods meant they were able to increases sales in Japan even though there was no organisation within the company. Once there was a large enough demand for its products, mainly the supercub, Honda both in Japan and in America, moved from a sale on consignment basis to one that required cash on delivery. This seemed a very risky decision to make at the time but within three years they had changed the pattern within the motorcycle industry by shifting the power relationship from the dealer to the manufacturer. Mr Honda had cultivated a "success against all odds" culture into the company. This was tested when he sent two executives to the U.S with no strategy other than to see if they could sell something. The weaknesses within an organisation can become irrelevant if the strategy is strong and there is good leadership. An element of luck also helped Honda follow an emerging strategy. Restrictions placed on funds by the government for the U.S venture forced Honda to take an alternative route. If they had all the funds necessary they may well have gone through the normal distribution channels. Honda entered the us market right at the end of the motorcycle trade season. When leaking oil and clutch problems occurred on their bikes it did not affect Honda as hard as it would have had they entered in the beginning of the season. Also people noticing the Supercubs led the company to produce a bike which was not at first supported by senior management. The success of Honda was not the result of senior management coming up with all the answers. In fact senior executives in most Japanese manufacturing companies do not take their strategic positions too seriously. Salesman, cleaners and those working on the manufacturing floor all contribute to the company is run and thereby influence its strategic position. It is this ability of an organisation to move ideas from the tom to the bottom and back again in continuos dialogue that the company values the greatest. As a conclusion it is necessary to consider the theoretical side of Hondas strategy and see whether the company was in fact following a model. The first model is the Andrew's model. Andrew came up with the idea that there were two stages to corporate strategy, formulation and implementation. Formulation involved looking at the market, competitors and resources and formulating a corporate strategy which would be implemented throughout each process of the organisational structure. This model was also supported by Porter. This is how the BCG saw Honda, as a corporation, who had looked at the market, formulated a strategy to cope with the environment and competition pressures and implemented it, making all Hondas plans and activities deliberate.

branded affordability. core menu extensions and value. Their focus is not so much on being the biggest fast-food restaurant chain.S. The actual strategy followed by Honda is likely to be a combination of both. 26). the company should start to see more positive financial results.The second model known as the emergent strategy portrays a different image to the Andrews model and shows how Pascale viewed Honda. One of the ways McDonald’s can obtain a positive net . McDonald’s plans to “continue to drive success in 2008 and beyond by leveraging key consumer insights and our global experience. McDonald’s strategic plan continues to focus on breakfast. In the Asia-Pacific.000 restaurants in over 100 countries.8%. while relying on our strengths in developing. “The unique business relationship among the company. beverages and convenience. and Africa markets. McDonald’s strategic plan is focused around convenience. and revenue was a record high of $23 billion. classic menu. convenience and daypart expansion. and ongoing restaurant reinvestment. McDonald’s incorporates several organizational strategies. Middle East. price and promotion” (McDonald's. McDonald’s starting introducing new hot specialty coffee offerings on a market-by-market basis. McDonald’s overall strategic plan is called Plan to Win.. daypart expansion and menu variety” (McDonald's. rather it is more focused on being the best fast-food restaurant chain. With McDonald’s overall strategic plan and its geographical strategic plan. breakfast. products. 2008. 2008. The model shows a realised strategy made up from a an intended strategy together with an emergent strategy which is not planned but emerges in relation to activities within the environment. McDonald’s “strategic alignment behind this plan has created better McDonald’s experiences through the execution of multiple initiatives surrounding the five factors of exceptional customer experiences – people. The business model enables McDonald’s to play an integral role in the communities we serve and consistently deliver relevant restaurant experiences to customers. 25). 25). McDonald’s uses a tiered menu approach. place. These are the core areas in the United States. McDonald Marketing McDonald's Strategy McDonald’s is the world’s largest fast-food restaurant chain. Pascale seemed to think that in Hondas case a substantial proportion or the companies corporate strategy was emergent and less was actually intended strategy. In the beverage business. McDonald’s sales were up 6. McDonald’s has launched the Southern Style Chicken Biscuit for breakfast and the Southern Style Chicken Sandwich for lunch and dinner. It has more than 30. McDonald’s also incorporates geographical strategic plans. menu variety and beverage choice. In the U. Some of the organizational strategies consist of better restaurant operations. Although net income was down by $1. and everyday affordable offerings. chicken. its franchisees and suppliers (collectively referred to as the System) has been key to McDonald’s success over the years. 25). They also “complement these with new products and limited-time food promotions” (McDonald's.1 billion in 2007. In Europe. placing the customer first. testing and implementing initiatives surrounding our global business drivers of convenience. Over one billion more customers were served in 2007 than in 2006. 2008.” (McDonald's. This menu features premium selections.

while in the U. and the development of their employees starting with recruitment and training and leading all the up to leadership and management. In 2007. or vegetables as part of their Happy Meal. 253). McDonald’s is building their brand image “with innovated marketing transporting ideas across borders and using i’m lovin’ it to deepen their connection with customers who love their food and the unique McDonald’s experience” (McDonald's. A couple other organizational strategies are branded affordability. Other organizational and marketing strategies are “creating stronger bonds of trust by being accessible and maintaining an open dialogue with customers and key stakeholders” (McDonald's. 2008. McDonald’s also has locally owned and operated restaurants which “are at the core of their competitive advantage and makes them not just a global brand but a locally relevant one” (McDonald's. McDonald’s also uses marketing campaigns. McDonald’s used the Shrek movie to give children a choice between milk.. 27). 2008. Carmel and Banana Sundae. They are enhancing the customer’s experience. and Rice Sticks. McDonald’s has already renovated about 10. In the 2008 Olympics held in Beijing. They are also installing new kitchen operating systems so that they can continue to deliver high food quality. premium salads and sandwiches. Jr.S. With strategic focus on menu variety and beverage choice. they are making is easier for customers to enjoy a great McDonald’s experience. The company is also opening up McCafe’s “with the expectation that the gourmet coffee shop would move it closer to its goal of doubling sales at existing U. McDonald’s held a marketing campaign where the people could decide what name to give its new hamburger. McDonald’s is hoping to increase efficiency in its drive-thru pick up window. “Across their markets. McDonald’s is . and Canada. McDonald’s has a reimaging program that includes adding about 100 McCafes. McDonald’s is hoping for increased sales and guest counts. 2007. they create value for customers and satisfy their demand for choice and variety” (McDonald's. They featured nine Olympic and Paralympic athletes on their packaging. In addition to their commitment with children. McDonald’s is trying to create a better brand image. everyday value meals. With their convenience and daypart expansion initiative. “By serving a locally relevant balance of new products. In Germany. With marketing campaigns like these. Types of marketing mix that McDonald’s use to achieve their marketing goals are longer operating hours. fruit.S. McDonalds offered the Beijing Burger. 2008. 13). They want their restaurants to be an expression of their brand.000 restaurants world wide.9 billion into their restaurants primarily to reimage existing restaurants and build new ones. greater drive-thru efficiency and double drive-thru lanes enable them to serve even more customers quickly” (McDonald's. In Australia. 27). classic menu favorites and everyday affordable offerings around the world. 17). 15). McDonald’s strategic plan is influencing their marketing efforts by building better brand transparency. and optimizing efficiency in the drive-thru. The name that won was Backyard Burger. The company is reinvesting approximately $1. The company is also delivering greater value to the customer with new menu selections. They want their image to be recognized globally. restaurants over the next decade” (Peter & Donnelly. They are in the process of remodeling and upgrading its franchises.income is to maximize efficiency in its restaurant operations while at the same time placing the customer first. and the company is staying open later for those late-nighters who want a quick bite to eat. They are introducing drive-thrus to the increasingly mobile populations in China and Russia.

Although in some countries. And Prius is the brand or car that Toyota has made a significant success in American market. It was such a great success that Toyota conquered American market. When starting up or at very low speeds (under 15 mph). However. Coaster and Prius. such as China. Toyota’s competitor at that time was Honda. Reiz. In the macro environment there are many young men who love technique and pursue new technology products. let’s have a look at micro-environments. this will give the customer a more pleasant and friendly place to dine out at. Co. this should help them increase sales and net income. the auto runs on the electric motor. but It didn’t sell well because of its poor design. TOYOTA Analysis of marketing of Toyota: Toyota manufactures cars. they were an integral part of the games and this only enhanced McDonald’s brand image in a positive way. Toyota got the first place in America. Americans changed the need structure for cars. a joint venture was established with General motor. And they are also highly educated and so have a strong environmental protect spirit. the auto does not make noise. which has a wide coverage from economic minibus to luxurious cars. While American car manufactures lacked producing such cars. What are the characteristics of it? Hybrid vehicles have both a gas engine and an electric motor. Vios. converting their needs to oil saving cars. have a look back at Toyota’s history to find new Toyota has made its way to America. It is a hybrid vehicle. Other factors are natural resources and pollution. With McDonald’s growing global brand image and its emphasis on the five factors of exceptional customer service. this means that the auto gets power from only the battery at low speeds. First. The brand on sell includes Crown. Prius was first in production and had a launch in America. GE and Ford were followers later. With McDonald’s marketing campaign for the 2008 Olympics. When starting up and operating at low speed speeds. It introduced the insight. SUV. Corolla. As a result. and from both the gas engine and electric motor during heavy acceleration. the gas engine kicks in. then Toyota caught that opportunity and tried to occupy this niche market. With the initiative of remodeling and upgrading existing franchises. Toyota exported to America at the first time and established the selling company. less capital-intensive business model. With the recruitment and training initiatives for current employees or future prospects. it was largely contributed to the micro and macro environment at that time. And Prius is just the combination of the concepts of environment and technology. And in 1997. this will allow McDonald’s to achieve less of an already high turnover ratio. Toyota had no competitors in local at that time. In 1957. Before the . which seems eerie to some drivers and to pedestrians who don’t hear it coming! Then. At roughly 15 mph. this is not permissible due to governmental laws. To dig into the reasons. We all know that American love cars so much. In 1984.also moving towards a more heavily franchised. Afterwards. It started to develop the hybrid car almost at the same time as us. And due to oil crisis.

and shared their experiences through chat rooms such as Priusenvy. it was able to educate the right consumers 2 years before introduction. Once Toyota identified the target market.com. the History Channel. The press was also excited about the technology.toyota.com online to look at colors and decide on options such as CD players and floor mats. it wasn’t aimed at the mass market. Auto magazines. Inside the Prius. The consumer must process the information in the ad in order to interpret it. but it takes specially trained salespeople to explain and promote the Prius. from the market of techies and adopters to a wider market. but the bulk of the campaign was in television advertising on channels such as Discovery. the dealers get involved. Toyota began to research and develop the hybrid cars with a long term view. Toyota decided to enlarge the market. They also wrapped some Priuses in green and gave away cars at Earth Day events. performance and gas efficiency.800 cars immediately. Toyota thought that the first hybrid buyers would be “techies” and early adopters (people who are highly likely to buy something just because it’s new). After all. the Learning Channel. Instead. It is a sleek. A 7-inch energy . enthusing. the answer lies in Toyota’s clever marketing campaign. why would the Prius be so successful? For the first model. The company established a Web site to distribute information and set 3-brochures to 40. The new Prius improved styling. In all. which was designed to reduce oil consumption and gas emissions. There were print ads in magazines such as Newsweek and Vanity Far. Americans love technology and are quick adopters of it. began to modify cars. All of this coverage helped Toyota sell 1. or belittling the hybrids. The result is higher ad impact and longer ad recall. ran articles describing. After that. Such ads are based on ambiguity where the headline attracts attention because its meaning is not clear. and MSNBC. Strategies after the year 2004 Enlarge the market 1. Much of the Prius’s success is based on correct identification of the target market. To begin with. there is a stubby switch to engage reverse or drive and a push button that turns everything on. These ads helped to position Toyota as an “environmentally concerned” company and more subtly stressed the technology aspect of the car. Many early purchasers were attracted by the technology. Even though the Internet played a major part in the Prius launch. Buyers go to www. and even general interest media. Toyota spent $15 million in 1997 touting the Prius. the ads appealed more to emotion with taglines such as “When it sees red.prius. After introduction. In a country where everyone was ecstatic when governments raised speed limits above 55 mph.environment problem and energy crisis come into people’s attentions. Toyota also took advantage of the environmental appeal by sending out green seed cars shaped like Toyota’s logo to prospective buyers on Earth Day. Toyota is planning to launch and educational campaign aimed at salespeople and consumers. it charges”——a reference to the recharging of the battery at stoplights. Launch a new product. Toyota launched a new Prius. Therefore. Asianinspired design including seven colors. As more and more people accepted the new Hybrid vehicles. Toyota does not sell the car from its Web site. The company was right. In order to reach this purpose.000 likely buyers just before the introduction.

and even your lunch. The increased demand can be seem from the long for 6 months or more waiting lists. perhaps because he couldn’t predict how long this high demand would last. and battery charge level. there must be competitors coming in. many competitors came up. What strategies will Toyota make to offend these competitors? Bring Hybrid to a luxury car level After Toyota’s success in Hybrid car. regenerated energy. the reputation of Prius increased and the sales increased a lot. The CD player holders six discs. books. Increased production from external incentives Because of the rising gasoline prices. moving Hybrids up to the luxury car level. with plenty of rear legroom. In order to keep its advantages Toyota keeps on updating its technology and its Lexus division introduced a Lexus SUV hybrid. It has also developed a hybrid model of its Silverado truck. The new Prius made Hybrid familiar to the common consumers. the demand for Priuses increased. or a combination of these. putting hybrid technology in vehicles that use the most gas. 3. Toyota spent more than $40 million dollars spread over media in more consumer-oriented magazines and TV. giving consumers a choice of a hybrid or regular model. 2. Spots on dealers’ waiting lists were even being auctioned on E-bay for $500. Toyota had no plans at that time to start production at a second plant. The interior is roomy and practical. emissions and other environmental concerns. GM is following the similar strategy. but just alleviated the shortages. Because of the “environmentally friendly” aspects of the car. Although the federal deduction will be phased out in the near future. Relatively moderate price. It also explains whether you’re running on gas. electricity. Although so many competitors come up. Ford began an environmental print campaign built around mileage. Thus.monitor touch screen displays fuel consumption. Sales of fullsized SUVs such as the Ford Excursion and Expedition and the Lincoln Navigator suffered a sharp drop. Large promotion To launch the new Pirus. Toyota is still the market leader because of its more mature technology than other automakers and the reputation it made and because Toyota is the first to come into this niche market. During this time. though the excess demand for Prius. To promote the hybrid. So compared SUV cars there is a relative low cost because of the tax relief. and satellite navigation system. they are followers. outside temperature. 4. there are government breaks on the car. as Prius sales are up 120 percent and have reached 28000 units in 2004. Honda is another Japanese automaker. Ford began production of a hybrid model of the Escape SUV. audio. other bills are pending to extend the tax break based on greater fuel efficiency and lower emissions from vehicles. and some states allow single-occupant hybrids in HOV (High Occupancy Vehicle) lanes. There are also screens to show how much electricity you have stored and to arrange your air conditioning. as well as a deep dashboard which leaves ample space for maps. as the excess benefit exists in this market. Toyota increased monthly production of Prius from 7500 to 15000. The promotion is successful. and the price is moderate. However. and because of the internal learning curve. the target of enlarging the market has reached. However. The federal government gives a $1500 tax deduction. Toyota has a big jump on US automakers who have only dabbled in this market at . There are many storage space cubbyholes and shelves in the front.

which is from the prospective in the meeting of late 2004. So hybrid has taken a seat from medium car level to the luxury car level and until now Toyota is updating the hybrid technology and improving the performance of the hybrid car. So Toyota should keep on producing hybrid cars and updating technology. Suggestions: Do more market research so as to predict the demand more precise and make suitable production. But as the gasoline price increases these years and people’s environmental protection awareness hances. Marketing intermediaries Compared with 1997. so this factor does not contribute much to the decision making about marketing strategy. competitors and publics. Micro-environmental factors The company The slogan and concept of Toyota express explicitly that Toyota is always pursuing the product which is environment-friendly and fuel efficient. We discuss such factors in detail in the following paragraphs. Build a new plant to produce hybrid car because of its promising future. marketing intermediaries. Suppliers There are not some apparent elements changed from the earlier period. However. And Toyota also has some particular factors which are more important and need closely monitored. customers. Now the newest model is 2008 Prius model. the hybrid car which brings fuel efficiency and low emissions will become more and more popular in the future. And the competition will become more and more violence. Customers The customers are more familiar with such new environment-friendly product and accept the concept. economic. From the past promotion and the practical driving experience of customer. Toyota also consider a lot of macro. As the previous version. these factors have various levels of influence. while macro-environment factors usually contain demographic. this is also not a very important factor since it does not change too much. and SUV vehicle is still appealing to people’s taste. Competitors . the new version is also continued to use this concept and the improved Prius is in accordance with the company’s image perfectly. This factor is more beneficial than the prior years when the product was first introduced to the market. most people still like stockcar racing.and micro-environment factors to establish their marketing strategy. This can also increase the reaction speed to the changing market so that the large shortage and excess demand is less likely to happen. Now in the car market. natural. suppliers. and cultural environment factors. Prius04 When a new version of Prius which is improved from the old one is launched. The effort of Toyota makes common consumers remember Toyota every time someone mentions hybrid. political. As for different companies. the intermediaries are more familiar with the product and can sale it more efficiently. Micro-environment factors usually contain the company. technological. they have form a quite stable and growing market for the new version of Prius.that time.

Publics Until now. So Toyota’s product suits the need of the times well. Toyota’s new product can meet such growing demand exactly. some states even provide the exclusive lane for the hybrid car in some highway. It is a factor that has no changes compared to prior years. Toyota should monitor its competitors closely and try to predict their marketing strategy and establish the reaction plan. Economic environment This summer. Although Toyota has already taken the lead in this field. so the demand of the hybrid car which can use fuel more efficiently is growing. about distribution channel . Such changing factor certainly contribute a lot to the decision-making process of marketing strategy. Although such benefit will be out of date recently. And the experts predicted that such price rising is not temporary but permanent. Furthermore. Macro-environmental factors Demographic environment There are more educated people nowadays and this trend will continue in the foreseeable future. such as Honda.Changes in this factor are quite important to the strategy decision. So the competition in this market is fiercer than before. However. All these favorable government policies give more incentive for the public to purchase hybrid cars. It seems that the public always appreciate Toyota’s concept since Toyota emphasis on the new technology and environmental protection idea which is in the interest of the public. There arise some competitors in the market. Cultural environment Cultural factors are not changed so much and generally the culture of the public shows that the hybrid concept is well accepted. Toyota should try to simplify the use by advancing the technology. their technological ability is still far behind Toyota. GM. Technological environment Toyota has already been the top producer of the hybrid cars and although the other producers are providing the similar products. So Toyota should take advantage of this factor. Toyota needs to further enhance their leading position and keep up to date about any technology changes. Natural environment Since the resource is limited. It is likely that the price will rise further. there’re more other tax incentives which are under discussion and probably to be approved by the government in the near future. it enhances the need of the public to find substitute resource and the need to use the fuel more efficiently. Suggestions: about product Since the hybrid car is more complicated to use than traditional ones. the price of gas has climbed to the record high level. The government has already given the tax incentives to the people who purchase the hybrid car that they can enjoy the tax deduction of $1500 when they buy it. it should further enhance its research and development ability. Ford. Political environment This is the most important factor in the macro-environment.

In 1865. The need a mobile phone has satisfied are there is no need to stay by the phone to wait on an important phone call if there are other errand that need to be done. In 1960s. Due to the high European demand for paper Nokia became very successful. an engineer built a wood pulp mill in southern Finland and starting manufacturing paper and other paper goods. The company designed the website in such a way several years before because Prius was new to the public and the public will not buy it directly through the website. raincoats. Nokia Group also established Cable Works Electronics department which started to research semiconductor technology and also generated 3% of all Nokia Group net sales. Fredrik Idestam. and just a wide variety of fulfillments. Finnish Rubber Works purchased nearly all of the Finnish Cable Works shares and consolidated into the Nokia Group by 1967. Did you know at one point in time Nokia was also the largest information technology and television manufacturer in the Nordic counties? (1) . NOKIA Marketing Analysis of Nokia As I sat around and pondered for 6 and ½ weeks. shape or form and I thought I may do well. The Finnish Cable Works manufactured cables for telephones and telegraphs. Everyone has a mobile phone in some way. easily able to contact children if they are involved in after school activities. industrial parts. access to the e-mail without having to search for a computer to accomplish this goal. Finland. As time passed a great deal of Nokia’s products were exported to Russia. the world leaders in mobile telecommunications.Now the website of Prius only provides the display function of different versions of Prius for people to have a look. I chose to write about Nokia. By early 1991 Nokia was using the digital technology or global systems and selling its product in 9 European countries then by August 1997 expanded to be the telecommunications company we know today and selling expanded to over 31 countries. Around this same time new laws allowed Nokia to set up mobile networks for car phones and as a result formed Nordic Mobile Telephony. However. Nokia started to develop a digital mobile telephone technology called Nokia PX200 in the 1970s and 80s since analog telephone switches had long been invented. There is always a history behind a successful company and I thought that I would start there. and much more. I needed to write about something even if I did not have a passion for it. After World War II. To back up a little Finnish Rubber Works manufactured rubber products such as tires. now we consider it appropriate that the website should provide further service such as the on-line sale since the public are familiar with the Prius now and are willing to buy it through website to reduce their cost of purchase. The hydroelectricity that the wood pulp used attracted Finnish Rubber Works and they form a factory in Nokia. Also during that era Finnish Rubber Works started using Nokia as their brand name. United Kingdom and France. what I was going to do for my marketing analysis it finally hit me. By this time Nokia had established global success in telecommunications.

1 million dollars in Europe alone so does all the accessories you will purchase to make your phone stylish and unique to your personality. I did not want to single out just one phone. Nokia normally sells their phone at mobile phone dealerships and anywhere electronics are sold. deliver enterprise solutions. place. They believe this will only last until 2009 because then their teenage target will be older and then they will reposition their aim. Nokia’s marketing also target younger consumer ages 13 to 19 years old and its target is currently very successful. this will allow for a phone to remain a limited edition if only sold at limited supplier which will encourage younger consumer to buy them. .Now after all that boring stuff let get on to more boring things! I am going to spend sometime talking about the 4 P’s of marketing that Nokia used and what I think may need a little improvement. Not only do phone generate 41. Nokia states. build scale in networks and expand professional services. (2) I also discovered Nokia uses competitive and penetration pricing as a pricing strategy. The quality of a Nokia phone also allows them to price slightly higher in the beginning because of the brand name. The three areas are brand and design. I could not pick just one item because like I just state Nokia markets their entire new product at one time. I will start with price. Nokia established its focus on five key areas. Next is the place of distribution. The five areas are creating winning devices. The total mobile device volume of Nokia during 2006 was 347 million units. and technology and architecture. This is proven to be very effective. In 2006. Nokia plans to invest in and prioritizes three strategic assets. Nokia’s current marketing strategy is to produce new phones and sell them at a high introductory price then after about 4 months to then drop the price to be more competitive with others. I think all Nokia has to do to reposition their market is to just make phone must more easier to operate for the older not a computer savvy consumer. Nokia will just use one advertisement and show all of their phones and limited features hoping the consumer will go venture for more information or do some internet research on a particular phone. In the marketing mix the 4 P’s stand for price. In their advertisement they never really promote just one type of phone at a time like LG or Samsung. promotion and product. Promotion is something different when it comes to Nokia. All of Nokia new phones usually have the latest technology because they are always working on new innovation and normally have phone features the consumers love. This also allows for saving and possibly more money to advertise more often. customer engagement and fulfillment. like changing the color of the face of your phone or getting a different phone case. embrace consumer internet services. which represents growth of 31% compared to 2005. Based on the global market volume their estimate market share is 36% for 2006 compared to 33% in 2005. Selling accessories for your phone generate massive sales figures for Nokia. Last but not least is product. In addition.

As I learned all the features of the phone I am finding that those features I thought were missing are just under a more complicated submenu or very different name. Then there is product. weakness. Will older people like it? Maybe not so I understand now why Nokia targets younger consumers because there is a lot of learning when you purchase a new phone. MTV and VH1 if they are continuing to target teens. and threats. So if Nokia changed their pricing strategy to demand based pricing or market skimming for certain products then what would they have to lose. I guess I would increase advertisements in magazines. Especially if they want the sales to go up for their target market. Whomever they want to target for a particular items should be promoted by what society wants. I guess it time for my opinion on the subject matter. I know that Nokia should continue to sell their phones in the same arenas they have already selected to sell their products. Next is place of distribution. As fair as pricing is concern if the target market is teenagers I believe they should lower their prices. Innovation like 3G is what keeps them on top of their technology. 3G or 3rd generation cell phones are a technology that allows a user to have modern equipment and features that are normally done on a computer. I know it sound far fetched but maybe they could expand the markets by selling phones not just in mobile phone dealerships or stores with major electronics sections but if they tried to sell prepaid phone in everyday place like a convenience store or grocery stores will increase sell too. SWOT stands for strengths. It took some getting used to but I finally figure it out. I think Nokia should do most of it advertisement in the Sunday newspaper across the nation because that is the paper most people purchase. newspapers and on the internet. promotion. opportunities.As I began doing this research I concluded I am still clueless about what really needs to be in this analysis. which is also a factor in some of the decisions of Nokia marketing. If they want to target business professional add some advertisement in the Forbes or People magazines. Next I will talk about the SWOT analysis. Let me begin with pricing. promotion. I like the fact that Nokia is positioned 6th most valued brand in the world according to Business Week and Interbrand for their annual rating. Nokia was also one of the first companies to introduce the 3G technology. (3) I also concluded that if the price is just a little higher than other brand I would wait until the price went down if it were a product I want because I know that it will be worth the wait. I . As the future approaches Nokia has also come out with models of phone so easy that they have one button calling that parents have to program for their children to handheld computer so the business person on the go. In those types of stores there is no other competition and maybe they will target more women and children to increase sells. Starbucks and other coffee shops should really have fliers or something do to the vast majority of people who enter that place or billboards. Promotion. Nokia does a lot of sponsored event which also create advertisement. I just recently purchased a Nokia mobile phone and I personally thought that it did not have the additional features my Motorola had. Nokia should also place more commercials on channels like BET.

It was the first time that that 74 minutes of music could be recorded then re-recorded over and over again without losing any of its near perfect digital sound quality. The same year the MD was introduced into the United States. Sony’s Marketing Stategy for the Mini-Disc EXECUTIVE SUMMARY Sony has changed the way that the world listens to music. cool people of the USA that the MD was the way . Some opportunities are the increase their presences in new markets like India and other countries that are expanding their cell phone and getting leverage or preference and stronger positioning with carriers. The main reason for failure here was due to very high prices and not enough information to the public that the MD was not a replacement for the CD. The target market was defined as 18-34 year olds with a higher than average income. who purchased more than twelve CDs per year. 36% market share and still the largest cell phone vendor. The target market in 1992 was described as the ‘MTV Generation’ but the MD failed to impress and was therefore re-launched in 1994. With each re-launch prices fell greatly. The threats the have listed is the fact that they were late coming out with 3G which could have probably displaced them from being the leaders in the industry and the Asian countries are entering the market very aggressively with their own products. The MiniDisc was a product that was new to the world. It was then re-launched again in 1996 and again in 1998. So far Nokia seems to be very successful and besides branching out into different venue to market I would not change too much about their marketing strategy. They introduced the Walkman. the Compact Disc and now the MiniDisc. Nokia should stay the way they are with the different levels of technology they have availble from easy to use to the most complex mobile phones. I do not think there is too much to improve for Nokia since the market is overwhelmed with all the other mobile phone companies in the world. which had just been introduced. A lot of a company success depends on the perception the consumer has on the brand name. The main reasons for the failure of the MD in America were the high prices and the product launch.the young. but a replacement for the cassette. Weaknesses are Nokia has the tendency to produce the newest styles slowly and Symbian is giving Nokia a bad image.looked on the internet and some of the strengths for Nokia are being a dominant player in the smart phone market. 6th top brand in the world. Sony then had to spend millions and millions of dollars trying to convince its target market. (4) In conclusion. on 2 ½ inches. Developed in the late 80’s the MD was introduced into Japan in 1992 that saw an instant success.

Founded in 1946 by Masaru Ibuka and Akio Morita. Re-launched in 1994. the MD was a product that was ‘new to the world. 1998) and an estimated annual global media spend of over $1. whilst still trying to build its own products.com) Sony has changed the way in which people listen to music with the introduction of the Walkman. the CD player in 1982 and the first camcorder in 1993. only now the MD is growing in popularity. Products competing with the MiniDisc include the digital compact cassette.5billion making the company the worlds 11th biggest advertiser. This could be due to the fact the MD was viewed by the American market as a replacement for the CD. the company had major success when they introduced Japans first tape recorder and obtained a licence to make transistors. MP3 players and the most recent competitor to be introduced into the market is DVD audio 2. Although 80% of Sony’s new product activity is through modifying and improving existing products (Trott 1999). the 3 ½” floppy disc in 1989. Today Sony has transformed itself from a small electronics company to an international entertainment company with over 138. Since then Sony have went on to have major success and have introduced many world firsts. In 1950. This proved to be a success in Japan but the opposite in the US.’ It was the first time that 74 minutes of music could be recorded on to a 2 ½“ disc time and time again without the loss of quality. In the beginning the company tried its hand at any work that came in its direction such as electrical repairs and maintenance. which was also introduced in 1992 by Philips and Matsushita. The MiniDisc was launched successfully in Japan in 1992. Examples included the first colour television in 1968. CD–R and CD–RWs. the CD and now the MiniDisc.0 INTRODUCTION The chosen product for this report is the Sony MiniDisc. competition from the likes of the MP3 player has seen Sony introduce a cable called the PC-to-MD that allows PC users to download their digital music stored on their computers onto a MD. (www. Sony intended the MD as a replacement for the cassette.0 MARKETING STRATEGY .of the future. 1996 and again in 1998.mind-advertising. Also new long play MDs mean that 340 minutes of music can be stored onto the same 2 ½ inches of plastic. however in America the market proved to be less receptive.000 employees world wide (Sony. 1. However. which at that point was still in its early growth stage. personal stereo (Walkman) in 1979. Sony opened for business in an old department store in Tokyo with 20 employees.

5 million people in the United States fitted into that category. and has a table of contents. This proved to be a failure. Sony had done its research and that the target market was people aged 18 to 34.’ It gave those who purchased a playback model. It lasted eight months and saw extensive magazine advertising. Although MD sales had rose to 400. the target market was the ‘MTV Generation’ (Trachtenberg. They believe that if the product is going to be a success. Sony knew they had a world-class product. 1998).1 TARGET MARKET When Sony introduces a new product. The MD is similar to a computer disc in the fact that the music is stored in segments. Sony concluded that the reason for this is that people saw the MD as a replacement for the CD and not the cassette as intended. Today. Wall Street Journal. a Sony executive –Mark Viken. 3. thus enabling 74 minutes of high quality music on one small disc.000). a MD Walkman with batteries weighs on average between 83g and 142g.2. and the CD was still in the introductory stage of its product lifecycle. When the MD was introduced in 1992.3 PROMOTION With a product that was such a major success in Japan. Sony also gave away over a million MDs. the MD was re-launched and named The Media Blitz Campaign. Two years later in 1994. and also a PC kit that enables users to download digital music files stored on their computers hard drive on to a MiniDisc. 2. they do not believe in product research before the launch. $300 of MD music.000 units being sold (Seong-Shin Hong. In 1998. 2000). 24/07/98). December 1992 saw the launch of the MD in the USA. who buy twelve or more CDs a year and who have a higher than average income ($50. the customers will decide. 2. . Due to the fact that the first and second launches was extremely unsuccessful. It was regarded as one of the biggest ever music giveaways. admitted that for the third launch. it was still a considerable amount less than the million units sold in Japan in the same year. This enables the user of the MD to edit and erase whole tracks or even just small sectors of specific songs. The latest innovation from Sony is that of a network MiniDisc that can be connected to laptop computers. This was because of the high prices aimed at a young market. It is magnetically encoded that makes it more shock-resistant than the CD. (Sony. The Rolling Stone Magazine published coupons redeemable for MiniDiscs and had a giveaway program called ‘Sony Mini Music.2 PRODUCT The MiniDisc looks similar to a CD but is half the size (2 ½ “). Sony developed a system called the Adaptive Transformer Acoustic Coding (ATRAC) which only records audio sounds and then compresses them.

The LA Times estimated that Sony would spent $30 million on the campaign including standard print. the automobile. Nell stated that this was the ‘most aggressive and largest advertising and promotional campaign that has ever been conducted by Sony’. The cassette tape. Sony has highlighted many similarities and differences between the MD Walkman and the original. By this time only 25% of American adults were aware of its existence (Wichner. 1996 saw the third attempt by Sony to increase America’s awareness. Entitled ‘Where the Music Takes You’. 1996 also saw more of a focus on portable MD players. They did not support pre-recorded MDs due to the lack of demand from consumers. Increased competition from companies such as JVC. Support from Sony Music and also Time Warner meant that by 1999. However Mark Viken announced that this was to be the ‘biggest campaign in audio history of the US’. Sony’s Vice-President of Personal Audio. tv advertising. In 1987. 2000). the Smithsonian Institute in Washington DC recognised the Walkman as a cultural icon. At this point Sony believed the only reason for poor sales in the US was due to poor marketing. 1998 was dubbed ‘ The Year of the MiniDisc’. Sony have tried to focus on the points that made the Walkman so successful.A factor that made things far more difficult for Sony was the lack of support from the record companies. which was the way of the future and is a product that fits into our new digital age. Also the use of the Sony Walkman brand name has been used to suggest that the MD Walkman is an upgrade of the original for the future. The main aim of the marketing from the beginning was to show people that the MD was a cool product. the digital Recordable MiniDisc’ (Sony 1996) Nell stated that 50% of Sony’s total print advertising was spent on the MD. . With a redesigned Walkman logo. and so since 1996 when the main focus of the campaign was the portable units of the MD player. Robert R. there were only 500 pre-recorded MDs available compared to thousands of CDs (Seong-Shin Hong. The typewriter. the computer. Sharp and Pioneer meant that there was more support for the product that saw sales increase. The focal point of the campaign was declining cassette sales and that the MD was not a replacement for the CD ‘The horse. sponsorships and co-branding opportunities. 1999). Since 1992 Sony worked hard to try and convince the US market that there was a need for the MD. retail promotions.

4 PRICE Each time Sony re-launched the MD prices were cut as they realised that the price was limiting sales. then design. This strategy worked in Japan.With adverts such as ‘go create’ and ‘create the soundtrack to your life’ the MD is aimed at the fashion conscience. 2000) 2. it was more cost effective for the Japanese to buy a MD and to then hire and copy to MD. 3. Due to the fact that in Japan CD prices are extremely high. mobility. play films and play music. 2. however they were also aware that it would take sometime before the MD would become affordable to the public. Finally the American people are becoming aware and converting their cassettes to MDs with sales up 35% between 1999 and 2000. Products are distributed to these dealers through a central distribution warehouse who order the products when needed.5 PLACE (DISTRIBUTION) 1998 saw an unexpected acceptance of the MD by several large scale retailers who dedicated displays that were built with Sony’s support. 1998) The price of the MD has clearly been reduced since the introduction making the MD more affordable to the target market. Another theory is that the people of America have less disposable income as they tend to spend more on real estate and larger products for the home (Popular Mechanic. It is a four stage process that starts with planning. youth culture and to ‘cool’ people emphasising features such as portability. (Appendix 2) When the MD was developed it was a product that would have been a multi-format disc that could be used to store computer data.0 PRODUCT DEVELOPMENT PROCESS Sony uses an early form of New Product Development for developing products called the Departmental – Stage Model (Saren 1984). MDs are widely available on the Internet too. (Appendix 1). Sony whose earlier product Digital Audio Tape which was . In America on the other hand CD prices were low and therefore there was no demand for a high-quality recording device. By 1998 over 9000 retailers were selling the MD. Demand therefore increased allowing the price to fall due to economies of scale. procurement. edit features and superior sound quality. Sony used a price-skimming strategy charging the highest possible price for the MD. Sony also has a number of independent dealers who deal only in Sony products. ( Iverson. then manufacture. However due to copyright rules in America. Today the cost of a blank MD is less than that of a high quality cassette.

(R. It could also cover the Test Marketing stage to a certain extent. The Test Market for the MD was in River City.required by law to insert a circuit which prevented DAT to DAT copying called the Serial Copy Management System.000. .0 ASSESSMENT OF PERFORMANCE There are three key factors that make a successful product – product uniqueness and superiority. Sony failed to have an effective product launch. It is an important fact to note that one of the main priorities placed on a product in the planning stage is environmental compatibility. part shop and part R & D laboratory. Designers of products are kept closely in touch with cultural trends and cultural practises within target markets. Showrooms in major global cities such as Tokyo.G Cooper) The MiniDisc was a unique product that was highly innovative and new to the audio market. Sony chose this city as it best met the four criteria they set – high proportion of 18 – 34 year olds with incomes greater than $50. A great understanding of the marketplace with an effective launch is vital to new product success. River City is a music oriented town and met the four criteria with 60% of the population aged between 18 and 34. Austin. also the environmental impact of the product during use and recycling. and Business Analysis stage. New York and Paris are part showroom. Sony staff then monitor their behaviour and preferences. 4. This stage could be compared with the Product Development Stage. the product can then be passed to the manufacture stage. a tendency to own a CDs and a tendency to purchase electronics. Allen and Hamilton’s Concept Testing stage. especially if the firm has a sound understanding of the market. Cooper stated that a product is successful where the market oriented activities were expertly undertaken were more successful. Customers were invited into lifestyles settings such as bedrooms and offices and are encouraged to touch and experience new products. not once. Once these have been considered. With reference to Booz. Allen and Hamilton’s eight-stage process. Sony decided to make the audio MDs incompatible with MDs that stored computer data. The procurement stage is concerned with what materials will be used in manufacturing and disassembly. market knowledge and marketing proficiency and technical and production synergy. It allowed customers to have a higher quality recording device that would last longer and is more reliable than competiting product (cassette). but three times. This stage would relate to Booz. This information is then sent to Sony HQ who can then refine the design of the product if necessary and can then develop marketing and merchandising strategies. this Planning stage would cover the Idea Generation and the Idea Screening concepts Design at Sony is organised in a way in that enables the company to make products that both create and respond to customer needs.

Overall I feel that Sony’s introduction of the MiniDisc in the United States of America was a failure. MD and MP3 Running Neck.mind-advertising. Jan 25 1999 • ‘CD Recorders. 5. The MD was an instant hit in Japan. The American people saw the MD as a replacement to the CD that had just been introduced.com • ‘The Sony MiniDisc’ – Brandon Seong-Shin Hong. and not as a digital replacement of the cassette as intended. I think that in the not to distant future the MD will finally become the success that Sony aimed for in the US market. and the introduction of the PC-to-MD cable which will compete with MP3. cool people of the USA that the MD was the way of the future. The main reasons for the failure of the MD were the high prices and the product launch. the falling prices.0 CONCLUSIONS Nearly ten years after its first introduction. then the rest of the world should also respond. 2000 • ‘Now hear this Future’s sound is digital. being in a market with many new product introductions and being in a competitive market where customers are already well satisfied.www. a market where new models are constantly being introduced by a number of competitors. July 10 2000 • www.com – January 1998 . The MiniDisc was a extremely high priced product in the US audio market. With the innovative ideas such as the MD recording deck on the latest laptop computers. Sony then had to spend millions and millions of dollars trying to convince its target market. Neck and Neck’-Jon Iverson. 6.0 REFERENCES • ‘Sony Corporation (Japan)’. which proved to Sony that they had a world-class product – if they could satisfy Japan. These are having a high priced product. mini and recordable’ – David Wichner. new long-play MDs which can give up to 340 minutes of music on one small 2 ½ inch disc and also Sony’s current advertising campaign – MTV awards.the young. Stereophile. The CD was still in its growth stage and therefore consumers were already satisfied both with the cassette and the CD. Arizona Daily Star. and taking interest in Sony’s MiniDisc. today the American market are finally responding. Popularmechanics.There are also three barriers to success.

primarily dealing in heavy weight motorcycles. companies are looking for ways to improve their market share. 1 A Rich History • Established 1903 by William Harley. Harley drivers buy a motorbike for the experience. Harley-Davidson motor company. accessories. the sensation of belonging to something substantial. and related services. In addition to heavyweight motorcycles. With the growing global economy. Many excellent firms have learned how to beat their competitors through the implementation of new management. Harley-Davidson financial services in the form of Eagle Credit Corporation provides wholesale and retail financial services and insurance to Harley-Davidson customers and dealers. Executive Summary: Harley-Davidson is still the undisputed leader in manufacturing and selling motorcycles. Since then it has come to symbolise individuality.Harley-davidson. where the brand is not the be all and end all. In order to move into the new age. Harley is going to have to adapt its marketing strategy to continue its growth in market share as well as revenue. Motorcycles and Related Products. Asia and India. 3. But perhaps it is time for a change. not to mention very little market development in emerging economies such as Brazil. meaningful and authentic. Created in 1903 by the Davidson’s a new company established itself as a force within the motorbike industry (www. Buell motorcycle company focus is in incorporating Harley Davidson engines in a performance/sport motorcycles. but efficiency and mobility are key. In this way Harley Davidson has been very clever in not steering too far away from their niche – American bikes driven for the open road experience and the image (www.com). It operates in two segments.com). Some of the ventures licensed under the Harley Davidson name are: 1. and the three Davidson brothers (www. and/or manufacturing techniques.Harley- .Harley-davidson. Harley Davidson has a relatively low market share in other countries outside of the USA. The Company produces thirty-five Harley-Davidson motorcycle models. and Financial Services.Harley Davidson Motorcycles Introduction: Harley Davidson is a brand steeped in history. heritage and is known as the ‘all American’ bike. freedom and rebellion. not to get around town or beat the traffic to work every morning. 2. The 2009 figures show that in the heavyweight motorbike market Harley has a 53% share in the USA and 12% in Europe. Harley offers motorcycle parts. marketing.

davidson. • Became world leaders in the industry by 1920’s (Russel 1997).This was the turning point for Harley. • A strong brand name globally. • Only survived the Great depression because of exports and sales to the military and police (Cox 2004). • Established the HOG (Harley Owners Group) in 1983 and the LOH (Ladies of Harley) a few years later (Cox 2004). • Survived WW2 due to military sales then shifted focus to recreational bikes (Cox 2004).com).Harleydavidson. By 2007 there were 1460 dealers in 60 countries. . reducing Harley-Davidson sales (Russel 1997). • By 1953 was the only motorbike manufacturer in the USA (www.1m members worldwide (www. rather than simply selling bikes (Russel 1997). • In 1951 the company went up for sale. • 1969 was taken over by AMF (American Machine Foundry) and experienced difficulties in the 70’s because of Japanese competitors.Harley-davidson.com). • Adopted a new marketing philosophy that centered on selling community and lifestyle positioning. and a third of the worlds – making it the largest producer of heavyweight motorcycles in the world. who offered bikes of better quality at a lower price. Analysis: 1 SWOT Analysis: STRENGTHS: • Harley Davidson is an American Icon. The HOG had +/.com). which slowly regained market share. Just over half were in the USA. • 1st trademark bike in 1909 (2 cylinder v-twin engine – the fastest bike at the time). and 13 members accomplished a complete management buy-out (Cox 2004). This was key to turning around the success By 2006 Harley-Davidson held half of USA’s heavy weight motorcycle market.

They are loyalty toward brand. i. • Appear to be weak at attracting new customers to the brand. • Harley Davidson has also developed and marketed a broad range of consumer items. • Harley-Davidson has designed a wide variety of products based on custom requirements and uses by customers. Performance and touring bikes.com). and style • Has established long-term mutually beneficial relationship with its suppliers. OPPORTUNITIES: . • Production of motorcycles is not able to meet the current demand (Russel 1997).• Mostly bought for recreational purposes rather than for transportation purpose. • Repeat business is strong. and joined in community affairs to enhance the company’s image (Cox 2004). • Weak marketing strategies outside of the USA. and offers their customers organised opportunities to ride. which not only generated revenue for the company. • Harley Davidson was only able to secure a limited market shares in Europe and Asia Pacific market comparing to a majority market share North America. These buyers are mostly experienced motorcycle riders (www. a large percentage of new Harley Davidson purchases have owned a Harley Davison previously (Russel 1997). • Harley Davidson has developed a long-lasting relationship with employees to ensure continued success.motortrends. WEAKNESSES: • The price of an average Harley Davidson is relatively high. but also enhanced the company’s image. Excellent relationships with suppliers enable them to ask for cost reducing and quality improvement (Russel 1997). which has a very large market potential. which is a large source of revenue for Harley Davidson. • Large numbers of customisations are made on bikes. • The HOG (Harley Owners Group) is the largest riding club in the world. • Harley Davidson has yet to enter India and other developing markets. quality.e.

i. as entry requires a lot of capital (Cox 2004). and demand for Harley Davidson is the largest outside of the USA (Russel 1997). • Constraints on production capacity mean that buyers are put on long waiting lists. India.• Europe is the single largest motorcycle market in the world. • Increasing market share in the large portion of younger riders. • Increasing interest in motor biking by the females is on the rise (www. . of which Harley-Davidson does not meet the required standards in some countries. THREATS: • The age of the average Harley buyer is 42 years. China. • Increasing demand in the USA for motorbikes. Brazil. who have imposed a 60% importing tariff and other taxes. This model attempts to analyze the attractiveness of an industry by considering five forces within a market.motortrends. • Has encountered some legal problems in India. • A growing market globally for heavyweight bikes. especially in the USA. Also the market.com). The more difficult it is for other firms to enter a market the more likely it is that existing firms can make relatively high profits. Entry barrier is very high in this market. is already quite saturated. • Stronger restrictions globally on emission standards. • The upturn of the global economy has been relatively slow. 1 The likelihood of new entry The extent to which barriers to entry exist (www. which substantially increases the price of the bike. and is on the increase (Russel 1997).com).e. and studies have indicated that consumer confidence in the economy is directly linked to sales of luxury items (Russel 1997). 2 Porter’s five forces: The competitive structure of an industry can be analyzed using Porter's five forces. • Opportunities in emerging and developing market.quickmba.

com).quickmba.com). some of Harley Davidson’s competitors are more diversified. for equipment such as steel and electrical components. and thus have larger financial resources. RECOMMENDATIONS: 1 A new marketing strategy for a new era: Harley Davidson should place a very large amount of energy and resources on expanding into foreign markets at this point. Also.quickmba.com.quickmba. however. Harley Davidson has a wide span of suppliers.2 The power of buyers The stronger the power of buyers in an industry the more likely it is that they will be able to force down prices and reduce the profits of firms that provide the product (www. Harley could easily change suppliers without majorly affecting production. Buyers of Harley Davidson motorbikes are individual customers (Cox 2004). Very few substitutes exist in the Heavyweight motorbike market. Honda is one such example (Cox 2004). There is a high degree of rivalry among Harley Davidson and the three other Japanese competitors in the heavy weight segment.quickmba. since Harley is a recreational product.com). other similar recreational products such as sports cars are possibly substitutes. 4 The degree of rivalry This measures the degree of competition between existing firms. so they can’t really affect the financial standing. 3 The power of suppliers The stronger the power of suppliers in an industry the more difficult it is for firms within that sector to make a profit because suppliers can determine the terms and conditions on which business is conducted (www. Research has shown that the Harley has done . so should a supplier decide to increase prices. 5 The substitute threat This measures the ease with which buyers can switch to another product that does the same thing (www. The higher the degree of rivalry the more difficult it is for existing firms to generate high profits (www. which is the Harley flagship product.

as well as increase satisfaction which could increase sales in these regions (Cox 2004). however to gain some more market share is regions such as Europe through stronger marketing initiatives (Russel 1997). When the company first started up the business. This will increase profit margins significantly as it may be a way around the import tariffs as well as logistic costs. The population in these regions are very large so there is huge market potential. when they expanded to globalize the company. The company could distribute the Buell Motorcycle Company’s product to the other markets in order to establish a sporty image and able to directly complete with other manufacturers. They actually did successfully in the US market. it should be a natural progression for Harley Davidson to customise bikes for female riders.exceptionally well in targeting the US market. CONCLUSION: It can be said that Harley Davidson has managed to maintain fierce customer loyalty by offering more than just the product. They should do more research on people’s preferences and tastes in the targeted countries. the USA. like Asia and Brazil. Although the middle class in these regions are on the rise. they can also target sport motorcycles market (Russel 1997). however this market is quite mature at this point (Russel 1997). • Harley Davidson should take sales to developing countries such as India. but have extended it to involve an experience. they did not do as successful as they did in the US market. A new market would be younger riders. • By expanding HOG to other regions and countries. • The global market for female bikers is rapidly rising. • Harley’s current consumer market is mainly middle-aged men. • Not only should they target heavyweight motorcycles market. however this might not fit the global market. It is one of the most recognisable brands and they need to capitalise on this in order to attract market share outside of its stronghold. 2 Expanding the Market and product development: • Harley Davidson does very little mainstream advertising. However. the Harley was developed according to American taste. Harley built up a strong heavyweight image over the American market. However. it would support customer loyalty by engaging with consumers. the company did relatively poor on managing foreign sales. They need to analyse foreign markets. in order to make products more affordable it would make sense to set up production plants in India. . especially developing countries where there is high potential of a boom in the market in the coming years. This should be relatively uncomplicated as Harley Davidson already has a strong brand name globally. They could be attracted to Harley Davidson with its Buell range of sportier bikes. Over the years.

and three-wheelers. the second largest two-wheeler market in the world. to import and sell two.and threewheelers. In 1960. Supplier Bargaining Power: Suppliers of auto components are fragmented and are extremely critical for this industry since most of the component work is outsourced. but recreationally. a trading company. the company secured a license from the Government of India (GoI) to manufacture two. such as female and younger markets to gain substantial growth in sales as well as market share. This business continued till | |1959. Bajaj Auto Limited (BAL) is one of the leading players in the Indian two-wheeler market. such as HOG. • Owning a strong distribution network is important and is very costly.Harley also needs to re-position its products to different markets. by strategically advertising in certain magazines and billboards. In 1945. | THE AUTO MOBILE INDUSTRY IN INDIA External Environment Industry: Automobiles: Two Wheelers / Three Wheelers Segments: Presence in all segments Entry Barriers: Entry barriers are high. (BAL) and the company went public. The company has maintained very low key advertising in the past.. • The need for technical expertise is high.. Kamalnayan Bajaj. so by engaging these different markets on that level will prove very successful. solid and reliable motorbike manufacturer with the personal touch. set up Bachraj | |Trading Corporation Ltd. BTCL | |was renamed Bajaj Auto Ltd. (BTCL). • The market runs on high economies of scale and on high economies of scope. could be arranged for women who are interested in riding. This should cement Harley place globally as a large. It has long been realised that Harley Davidson bikes are not driven as a mode of transport. but perhaps it is time to build better engagement with the brand. All these make the barrier high enough to be a deterrent for new entrants. Proper supply chain management is a . The same year. Background Note |The Bajaj group was founded in 1926 by Jamnalal Bajaj (Jamnalal). | | | |In 1959. it entered into a technical collaboration with | |Piaggio for the manufacture of scooters. Bajaj Auto Ltd. Jamnalal's son. Harley clubs.

Summarizing the industry analysis. the market forces have empowered the buyers to a large extent. But taking into account the delays involved in implementation of such large infrastructure projects the demand to be affected only five to seven years down the line. Availability of credit for vehicle purchase: The availability and cost of finance affects the demand for two. But with the recent change in GOI policy to reduce the subsidy. which strongly affect the auto industry: Government policy impact on petrol prices: Petrol prices determine the running cost of two/three wheelers expressed in Rupees per kilometer. This will have multiplier effect on demand for consumer durables including two-wheelers. Also. the prices of petrol will remain constant at the current prices. This will have negative impact on demand for two-wheelers in the long run. Cars. due to entry of multinationals following liberalization process and fifth pay commission. Changes in prices of second-hand cars: The second hand car prices of small cars have come down sharply in the recent past. if there is any substitute to a twowheeler. This will shift the demand from higher-end twowheelers to cars and affect the demand for two-wheelers negatively. it can be said that the two-wheeler market is attractive as it scores well on three out of five categories. the disposable income has improved exponentially over the years. cycles do never even compete with the low entry level moped for even this choice comes at a comparatively higher economic potential. With more models to choose from in almost all categories. Substitutes: There is no perfect substitute to this industry. Industry Rivalry: The industry rivalry is extremely high with any product being matched in a few months by competitor. Therefore. do never directly compete or come in consideration while selecting a two-wheeler. Improvement in disposable income: With the increase in salary levels. which again are a mode of transport.and three-wheelers as the trend for increased credit purchases for consumer durables have increased over the years. Bajaj has presence in it. any change with respect to any of these two parameters as a result of change in RBI policy has to be closely watched .costly yet critical need. Buyer's Bargaining Power: Buyers in automobile market have more choice to choose from and the increasing competition is driving the bargaining power of customers uphill. Petrol prices are the highest in India as GOI subsidizes kerosene and diesel. This will have a positive effect on purchases of two/three wheelers. Key Earnings Drivers Below are the key factors. This instinct of the industry is primarily driven by the technical capabilities acquired over years of gestation under the technical collaboration with international players. A further drop in second-hand car prices will lead to pressure on the two-wheeler majors who plan to release higher-end scooters and motorcycles. Implementation of mass transport system: Many states have planned to implement mass transport systems in state capitals in the future.

• Annual turnover for the year 2005-06 is Rs. Bajaj Auto Ltd. lulled the company into being complacent and they gave way to the competitors like Hero Honda and TVS.Five Forces Analysis • SWOT Analysis • Tows Matrix • Marketing Strategies • Strategies Implementation • Strategies for Overseas Market • Research & Development • Future • Recommendations The Company Bajaj Auto is the flagship of the Bajaj Group of Companies. contemporary technology. the near monopolistic market structure. 63. 81. In 1990s.06 billion v/s Rs. I started with the industry analysis.and three-wheeler manufacturer and one of the biggest in the world. company analysis. Bajaj is currently India's largest two. and non-stop excitement of launch of newer and newer models offered on the motorcycles platform. “The decline of the market for scooters was directly related to neglect of this segment over decades vis-à-vis critical benefits (mileage). Outlook The late 1990s saw the popularity of scooters wane and motorcycles emerge as the new favorites in the Indian two-wheeler market. • BAL is currently outperforming the industry growth rate in two-wheeler segment with 32% growth in year 2004-05 v/s industry growth of 19%.and three-wheelers.” said Francis Xavier. Bajaj has long left behind its annual turnover of Rs. Here in this work. as this was largely an unchartered territory. • Market share in Motorcycles is improving with every passing year. 81. there was a marked shift in customer preference from scooters to motorcycles. It was believed that the dramatic shift happened because players like BAL did not pay sufficient attention to design.to assess the demand for two.23 billion a year . R&D.06 billion. 72 million (1968). portfolio analysis. to currently register an impressive figure of Rs. perhaps. In 1990s. and then moved on to exploring the strategies adopted by BAL to reinvent itself and once again become a market force to reckon with in the Indian two-wheeler industry. managing director. TVS Suzuki tied up with foreign majors to bring in the latest in terms of aesthetics and technology. and Bajaj failed to gauge the changing tastes of consumers. Current Situation Current Performance. Bajaj found itself at a loss here. Francis Kanoi Marketing Planning Services. It has also increased from 28% in 2004-05 to 31% in 2005-06. and customer satisfaction. The paper touches upon the following areas: • Industry Analysis . (BAL) is one of the oldest and the largest manufacturer of automobiles in India and has been the market leader in scooters.

The rise in their disposable incomes on account of good monsoons in the 1990s provided the normally conservative rural and semi-urban customers with extra money that induced them to experiment with new.| | |Threats |Increase the customer centric initiatives |Invest in building world class bikes to sustain the | | |and command more customer loyalty. Shift from Scooter to Motorcycle |Year |Total In '000 |Overall Growth |Scooter |Motorcycle | Moped | | | | | |Strengths |Weaknesses | |Opportunities |Can use the existing R&D capabilities for |Must employ the cash in production and product capabilities | | |new models.before . which scooter manufacturers failed to provide. BAL is a market leader in two-wheeler exports and it consists a great chunk of there overall revenues. the growth in the motorcycle segment was mainly driven by the demand from rural and semi-urban consumers. | | | |Actively market electric range | . |to match competitors and for continuous export growth. they are commanding 50% market share in Central America. [pic] nterestingly. | | |the insurance arm.and has been showing increased sales in all the segments over years.Price Segment. and the difficulty of maintenance also contributed to this shift.an increase of 28% which is very healthy. The delayed launch of new. An estimated 60% of the demand for motorcycles came from rural and semi-urban customers. Value Segment and Performance Segment . Profile Change in Indian Two-Wheeler Industry The demand shift from scooters to motorcycles in the 1990s was without parallel in any comparable product category in India. | | | |Invest in new product platforms. advanced scooter models. • BAL has significant presence in all the three basic segments . BAL is selling over 1 lac motorcycles annually in Sri Lanka. | | | |Can invest and grow the life style segments. Currently. innovative products. fear of four-stroke scooters being prone to increased skidding risks and vibrations. This was mainly attributed to the change in customers' preference towards fuel-efficient and aesthetically appealing models. Besides this. |international markets independently in the coming years like| | |Improve the efficiency of the financing and |WIND 125. | | |Can use Kawasaki's distribution networks | | | |internationally. further.

The model was a great success and has already crossed 1 million mark in sales.First attempt by bajaj to make a mark in the motorcycle segment. high ground clearance and high mileage were the selling factors and it was in direct competition to Hero Honda Dawn and Suzuki MX100. The time at which Kawasaki 4S was launched Hero Honda was the market leader in fuel-efficient bikes and Yamaha in the performance bikes. Going by the initial market response. 25-plus. With this.The same DTSI technology of Pulsar extended to 125 cc Discover was a great success. the teaser campaign and the emphasis on the Caliber 115 being a `Hoodibabaa' bike placed it as a trendy motorcycle for the college-goers and the 25 plus executives both at the same time. BAL adopted different marketing strategies for different models.The focus for the Caliber 115 was youth. Larger wheelbase. So. BAL has been the pioneer in stretching competition into providing latest features in the price segment by updating the low price bikes with the latest features like disk-brakes. Bajaj gave the mandate for the ad campaign to Lowe. anti-skid technology and dual suspension. few of them are discussed below: Kawasaki 4S . Target was the rural population and the price sensitive customer. Kawasaki 4S had the punch line "Kyun Hero" means "now what hero" which reflected the aggressiveness in the marketing front by the company. The campaign beared innovative punch line of "Definitely Male" positioning Pulsar to be a masculine-looking model with an appeal to the performance sensitive customers. Boxer .| | |internationally. picking them from the clique of three agencies that do promos for the company (the other two being Leo Burnett and O&M). Boxer marketed as a value for money bike with great mileage. the campaign was clearly a hit in the 5-10 years age bracket. etc. And though Bajaj made the bike look bigger and feel more powerful than its predecessor (characteristics that will attract the average. Pulsar . executive segment bike buyer). Bajaj could realize its success riding on the back of technological innovation rather than the joint venture way followed by competitors to gain market share. The Pulsar went one step ahead of Hero Honda's 'CBZ' and launched a twin variant of Pulsar with the 180 cc model. its approach towards advertising is even more radically different this time around.Pulsar was launched in direct competition to the Hero Honda's 'CBZ' model in 150 cc plus segment.It took the reins from where the Kawasaki 4S left. Most of the Bajaj models come loaded with the latest features within the price band acceptable by the market. | | Marketing Strategies The focus of BAL off late has been on providing the best of the class models at competitive prices. The target customer was the father in the family but the target audience of the commercial was the son in the family. Discover . Strategies & Implementation FMCG Business Model BAL now is taking a leaf out of the FMCG business model to take the company to . Caliber .

To fight this battle and retain its hard-earned market share in the motorcycle segment. like in India. Earlier. Stake for Kawasaki: Bajaj Auto's attempt to vest the surplus cash in a separate company may be a prelude to offering a stake to Kawasaki of Japan in the equity of the automobile company. competition in the two-wheeler market is set to intensify. Bajaj has kicked off a project to completely restructure the company's retail network and create multiple sales channels. 3) Markets where BAL need to enter with existing products and probably with a good distributor or a production facility or a joint venture. in its target markets. distribution and even after-sales service are completely different in the rural areas and do not makes sense for city dealers to control this. most of the products that Bajaj exported were scooters and some motorcycles. Bajaj Auto's entire product portfolio. The restructuring will involve separate dealer networks catering to the urban and rural markets as well as its three-wheeler and premium bikes segments. Bajaj Auto also plans to set-up an independent network of dealers for the rural areas. Delisting worry: What is worrying is that there is an idea to delist the investment company (also an indirect indication that it would be listed initially). The company also plans to set-up exclusive dealerships for its three-wheeler products instead of having them sold through an estimated 300 of its existing dealers. The latter has been playing an increasingly active role in Bajaj's recent models. Factors such as low valuation. This would be closing the valve of equitable ownership distribution. selling. Over the next few months. This would also obviate the need to fork-out fancy sums as stamp duty to the government for the de-merger. from the entry-level to the premium. Over the next couple of years. is being sold by the same dealers. the company will set-up separate sales channels for every segment of its business and consumers. The company would not be short of cash to put through such a buyback. the shift was towards motorcycles. A look at its own story over the past five years provides valuable insight. A strategic stake for Kawasaki would only positively influence the stock's valuation. TVS Motors and Hero Honda are on a product expansion binge. Better value proposition: Shareholder interests may be better served if the cash is retained to pursue growth in a tough market. 2) Markets where BAL need to create new products. Bajaj Auto will need its cash muscle.greater heights. and its brand name is also more visible in Bajaj bikes than in the past. With the . Strategies for the Overseas Markets Bajaj Auto looks at external markets primarily with three strategies: 1) A market where all BAL need to do is distribute through CKD or CBU routes. The needs of financing. A combination of a large onetime dividend and a regular buyback program through the tender route may offer better value. However. low trading interest and the need to provide shareholders may be cited as plausible reasons for the buyback. Other Strategic Issues Cash is strength: Bajaj Auto has been sitting on a cash pile for over five years now. There is a hint of a buyback of shares of the investment company as this is the only way it can be delisted.

The other focus area is the ASEAN nations. But two-wheeler market requires great deal of effort from BAL. except in Brazil. The other market. which hold potential. extensive and very well-equipped Research and Development wing geared to meet two critical organizational goals: development of exciting new products that anticipate and meet emerging customer needs in India and abroad. sophisticated technologies to scale down product development lifecycles and enhance testing capabilities. Egypt and Iran also continue to be strong markets for Bajaj. but for now it will create a base there with its motorcycle models. It also wants to develop a new step-through model for the Indonesian market. The biggest among them is Indonesia. the company has also been investing heavily in the latest. only makes high-end bikes and does not have sub200cc models. where the company feels it is fairly well represented in most countries. also the reason for its stronger showing. For the last fiscal. Bajaj's Pulsar model has taken off well there. they have built their distribution network over 60 countries worldwide and multiplied the exports from 1% of total turnover in Fiscal 1989-90 to over 5% in Fiscal 1996-97. This is a good beginning strategically for Kawasaki to evince interest in Bajaj products for markets which can still buy less than 150 cc. Bajaj has identified certain key markets. Argentina. Wind 125. There's Suzuki. a large multi-product conglomerate. Kawasaki. in the Philippines. While the manpower strength of the R&D represents a cross-section of in-depth design and engineering expertise. Kawasaki and some Korean and Chinese models. the largest market. which would be a focus area. Germany. Iran and Egypt. 60 per cent of its exports were two-wheelers and the rest three-wheelers. Sweden. Kawasaki. The Bajaj-developed models. R&D Bajaj Auto has a huge. Bangladesh. Everybody is there with Honda leading the show. Colombia. Kawasaki is marketing the new model. and development of eco-friendly automobile technologies. Peru. close to 90 per cent were motorcycles. are also being distributed by Kawasaki. Bajaj has also made a beginning by selling bikes in the Philippines branded in the name of its technical partner. Italy. where Bajaj distributors are looking to introduce eco-friendly four-stroke auto rickshaws. Bajaj leads . The countries where their products have a large market are USA. it had a better offering to export. The two signed an MoU in February. Sri Lanka. which is a fuel-efficient bike. developed by both companies. Its first overseas office established at the Jebel Ali free trade zone has been the focal point for exports to middle Africa and the Saharan nations.expansion in Bajaj's own range to almost five-six platforms of motorcycles. BAL should look at the right product mix for two-wheelers. Bajaj Auto R&D also enjoys access to the specialized expertise of leading international design and automobile engineering companies working in specific areas. The company recently participated in a large auto exhibition in Brazil and found good consumer acceptance to products like Pulsar and Wind 125. Based on their own brand of globalization. which constitute the third biggest consumer of two-wheelers. Of the two-wheeler exports. is South America. Caliber and Byk.

followed by the moderately growing moped segment and the restructuring in the scooter segment with major national and foreign players reinforcing their presence. the expected introduction of cheaper Chinese brands. stringent emission norms and threat from major international players. Several new models are being developed specifically for global markets and with these the company will progressively endeavor to establish its presence in Europe too. The Future Although the avalanche of motorcycles offered Indian consumers a wide variety of models to choose from. Recommendations Focus on High Margin Products: Around 50% of the two-wheeler consumers buy high quality products (products of executive and premium segment motorcycles). With the failure of the joint ventures. it was unlikely that the entire growth in the two-wheeler sector would be due to motorcycles. with high demand from female customers. it is believed this strategy of focusing on higher margin products would . and is reducing its dependence on lower-end of motorcycles and scooters segment. One of the major assumptions underlying the motorcycles rush was that if the market was considerably large and was growing at a constant pace. it also resulted in increased pressure on the companies to concentrate on cost-cuts.Colombia with 65% of the scooter market. the survival of indigenous brands looked uncertain. There was little differentiation between the brands being launched apart from styling as most companies had introduced their four-stroke vehicles. the segment would have to completely cannibalize the market for scooters and a considerable part of the market for scooterettes and mopeds. High margin products . Margins on these products are higher. Their margins came under pressure as marketing costs escalated. limited infrastructure and lack of technological innovations when compared to their foreign counterparts. remains to be seen. Discover. Considering the fast growing scooterettes segment. Low margin products . in Uruguay with 30% of the motorcycle market and in Bangladesh with 95% of the three-wheeler market. whether the Indian companies would succeed in generating the kind of volumes needed to sustain in the competitive motorcycle market. the growth in the motorcycle segment was dependant on continuing favorable market conditions. there was room for a profitable existence for all brands. Mopeds.Platina. Constrained with the ruling price levels in the market place. Now with increasing competition in the economy segment and limited scope from cost saving measures. Moreover. stages in the product life cycle would apply to the field sooner. Avenger. Three-wheelers. Scooters. analysts were skeptical about the segment's ability to maintain the growth rate in the years to come. Analysts claimed that to sustain this growth rate. rather than later and the decline stage would invariably come some day. Further.Pulsar. Analysts also commented that as the two-wheeler industry had grown steadily for eight years. BAL should adopt a deliberate strategy of focusing on executive and premium segment motorcycles and three-wheelers. The companies were forced to reduce prices and offer discounts to survive the competition. technology enhancements and up-gradations and styling.

Market positioning is arranging for a product to occupy a clear. . The understanding of these environments is essential for the marketers to make future marketing plans. Successful market depends largely upon company's ability to manage its marketing programmers within its environment. Summary This assignment report reflects the marketing strategy of the Bajaj Auto. For this. Market positioning: After a company has decided which market segments to enter. • The company needs to tap the export market more efficiently as there is a huge potential to make India as the world's two-wheelers production base. it needs to look for joint ventures abroad.and three-wheelers. a major Indian manufacturer of two. To ride bikes compared to other two wheelers is easier one and with great comfort. it must decide what 'position' it wants to occupy in those segments. Brown. its flagship scooter model. Armstrong. 1998. Below are other useful recommendations: • Company should keep focusing on the fast growing motorcycle segment. and design appropriate products. According to need. The advertising should have a fresh look and the product should live up to the Gen-X's expectations. services and programs to The main target of the company is middle-income family. Introduction: Marketing is the front-line business function that identifies customer needs wants. They encourage them by providing bike on installment because company concentrates on bike segment. Today Bajaj Auto Ltd has very good position in two and three wheelers industry in India. the company needs to review its products line-up and launch new products to cater the changed demand. & Adam. Conclusion: Bajaj Auto Ltd understood the microenvironment and Introduction In January 2006. To cover market Bajaj Auto marketing division makes different marketing policies and for that market research is done.It also reflects how Bajaj Auto handles main competitors. determines which target markets the organization can serve best. • It needs to target the young age group more effectively as this group is extremely trend savvy. p196). want and demand of the customers marketing policies of the company is implemented . which is India's the biggest two and three wheeler industry. Bajaj Auto Limited (BAL). distinctive and desirable place in the minds of target consumers relative to competing products (Kotler.enable the company in retaining its operating margins. • In view of the new threat posed by Honda Motors in the scooter segment. announced that it had stopped production of Bajaj Chetak. • The company needs to take a look at its ungeared scooters offerings and need to adapt to the latest trends.

Even as it phased out the Bajaj Chetak. BAL started manufacturing scooters under the Bajaj brand The Chetak. and consisted predominantly of gearless scooters. launching a series of new motorcycle models. low maintenance costs.9. the company was faced with declining sales and revenues. the Indian two-wheeler market witnessed a shift in consumer preferences. analysts felt that it would be an uphill task for BAL to once again become the largest scooter manufacturer in India. BAL decided to reorient its business. The popularity of geared scooters began to wane while that of motorcycles soared. the economy was growing. which increased the disposable incomes of the middle class. In the late 1990s. Scooters were BAL's main products. It did not want to give up on scooters either. According to Rajiv Bajaj (Rajiv). However. with new scooter launches from Hero Honda and Kinetic Motor Company Ltd. the features of scooters. especially the Activa. remained essentially unchanged Consequently. also. In an attempt to recapture market share. many newer models of motorcycles. In 2005-06.and three-wheelers. In the 1970s and 1980s. started manufacturing Vespa brand scooters at its plant near Pune. scooter sales in the Indian market were around one million units annually. At that time. scooters dominated the Indian two-wheeler market. They were also costlier. BAL was making efforts to regain market share in the scooter market. especially those of the Bajaj Chetak. BAL started as an importer of two. with the proportion of younger people in the population growing significantly. managing director. In 2005-06. With its collaboration with Piaggio coming to an end in the early 1970s. with the introduction and subsequent popularity of Honda Motorcycle and Scooter India (HMSI)7 scooters. with improved designs and modern technology had become available in the market. a gearless8 scooter. scooter sales in the Indian market were around one million units annually. Maharashtra. There were various reasons for the shift – India was undergoing a demographic change. and when market preferences shifted to motorcycles. motorcycle sales surpassed that of scooters and BAL lost its title of India's largest two-wheeler company to Hero Honda6. and the Bajaj Chetak name became synonymous with scooters. and versatility. BAL. was introduced in 1972. . and consisted predominantly of gearless scooters. While these changes were taking place in the market. BAL lost its dominance over the Indian scooter market as well. BAL.The Chetak. in collaboration with Piaggio5. In the early 1960s. BAL announced that it would launch two new models of gearless scooters in 2006-07. In the mid-1940s. BAL's first scooter model under the Bajaj brand. the motorcycles available in India were heavier and not as fuel efficient as scooters. the company had produced about 10 million Chetak scooters before the model was discontinued. had reigned over the Indian two-wheeler market in the late 1970s to early 1990s and had come to occupy a near-iconic status. It launched new scooter models and upgraded existing ones. Most middleclass Indians preferred scooters because of their durability. by the early 2000s. However. In early 2006. which halted the downward trend in sales. a geared4 scooter.

who later agreed that BAL had been slow in reading the demand pattern. Scooters. BAL closed a major chapter in its history. TVS. middleware and operational software from dispersed units of IBM. the Fall of an Icon In January 2006. though rather belatedly. entities that wanted to produce two-wheelers were required to secure licenses from the GoI. the Indian industry operated under what was popularly termed the “License Raj” . Rajiv said. With this announcement. “It is a history I would like to forget. IBM's Software Group is now a self-sustaining software business.” said Venu Srinivasan.”. with growth rates. the scooter segment was the largest sub-segment in the two-wheeler market. Geared scooter sales registered a fall of 41% in 2001. the company failed to anticipate the consumer behavior. said.BAL and the Indian Two-Wheeler Market Between the mid-1950s and 1980s. Rajiv. BAL realized. Overall sales of twowheelers declined by 15% in 1991 and 8% in 1992 .. During this period. which resulted in consumers placing greater emphasis on fuel efficiency when purchasing a new two wheeler. My company has lived too long on nostalgia…holding on to anything from the past is a sign of weakness. profits and other key measures in line with other major software companies. “See. International Business Machine Executive summary: IBM created the Software Group in 1995 to pull together all of IBM's infrastructure. The Turning Point The early 1990s saw a recession in the Indian two-wheeler market. The production capacity was also determined by the GoI. BAL announced that it had stopped production of the Chetak. chairman. and industry watchers predicted that this trend would continue. the numbers clearly indicated that consumer preference had shifted firmly toward motorcycles with four-stroke engines. This period also saw a steep rise in fuel prices. were followed by motorcycles (37%). and mopeds (21%) By the end of FY 2000. even as late as 1997-98. “The market has shifted to motorcycles. However. if it had to survive. that it would have to cater to the changing consumer tastes and preferences. the software group . In addition. We will have to follow the trend. with 42% of the market (in terms of unit sales).

We translate these advanced technologies into value for our customers through our professional solutions.g. 2008) 2). Workplace. IBM has also good contribution in the space research like IBM ThinkPad 750. IBM’s system/390 is the world most powerful main-frame computer. International business machine is an I.000 employees and conducts business in 170 countries. IBM earns more profit than the next nine computer firms generated in total sales. ..000 Business Partners to sell everywhere else. IBM is the biggest provider of IT services ($47B). INTRODUCTION IBM one of the leader brand of I. including computer systems. 2007). services and consulting businesses worldwide.has services and support capabilities via their development labs (e. IBM designed the website for Nagano Olympic winter games. The Software Group has the industry's leading portfolio of middleware products.g.. The IBM now a day provides wide range of Data storage devices as well as servers with enormous storage and secure database. This report shows how IBM states itself feasible beside of its massive operation size. Austin) and their services via support canters (e. Toronto.T industry which is basically related to computing. IBM is the world's largest information technology company with 2005 revenues of $91 billion. having its arm spreads to almost all dimension of technology weather it is about gadget or the software. we strive to lead in the invention. software. consolidation which saves wide range physical assets.T giant now days. This report is focuses on the new strategies adopted by the IBM and the strategies through which IBM survived over the competitions. IBM has established much software for environment management and protection like in 1999 the environment monitoring software’s. Software Sales Specialists within Sales and Distribution sell to large customers and over 24. IBM is now aiming for animation. Portal and Collaboration. spending more on research and development than they made in earnings. (Understanding IBM. Strategic analysis: Vision statement: At IBM. Rational. introduced a blend of silicon and germanium. storage systems and microelectronics. hardware ($24B) and rental and financing ($2B). development and manufacture of the industry's most advanced information technologies. Tivoli. stretching it hands. IBM Software Group is organized around five brands within the software industry: Web sphere. (Understanding IBM. Information Management. the website made 650 million hits from around the world that is one of the world record. The company has approximately 329. Dallas Systems Centre). | 1). IBM introduced various cost effective technology like instead of pure silicon chip.

Mission statement: IBM main activity is to find solutions to its wide range of clients using advanced information technology. Its clients are individual users, specialised businesses, and institutions such as government, science, defence, spatial and educational organisations. To meet and respond to its customers needs, IBM creates, develops and manufactures many of the world's most advanced technologies, ranging from computer systems and software to networking systems, storage devices and microelectronics.(Linch, 1997) Through this mission statement IBM is striving to dynamically galvanize their props in various field and trying to maintain a stabilize balance between all above aspect like clients, government, educational organisation etc. The main strategy of IBM is to delivers their high value added services (or software) to customers through their server product. And it can be divided into 4 pieces as follows: 1) Reallocating resources to enhance their server product business and reduce operation costs and optimize the efficiency. 2) To pursue an innovation agenda with its clients, partners and in other relationships, and to continue refining its portfolio to achieve higher value. 3) Acquiring businesses that contribute strategically to its portfolio 4) To maintain its leadership of this rapidly changing business by focusing on high-value innovation-based solutions and services while consistently generating high returns on invested capital for its shareholders. The strategy making of IBM should consider whether the new strategy can satisfy these key stakeholders who have high power. For example, the government element in the “keep satisfied”, they have high power (legislation power) but low interest. Another example is the shareholders in “key players”, who have high interest in IBM and high power on affecting the strategic decision. To sum up, if the strategic decisions threaten the benefits of the key stakeholders, this strategy might be difficult to be achieved. Internal Analysis: Value Chain Analysis Firm infrastructure: Supply-Chain Management in IBM, supply chains of IBM are becoming more complex, harder to manage and more costly to run. In fact, nearly $3.4 trillion was spent on supply chains in 2005. To address this, IBM is creating a supply-chain management business transformation outsourcing practice. The Supply chain management (SCM) solutions can help IBM to improve costs and customer service, while decreasing overall supply chain inventory. IBM’s (2006) Business Performance Management enables companies to visualize end-to-end processes across business and IT systems, analyze execution in real time against goals, and make adjustments as needed. For instance, IBM offers consulting,

services and middleware to simulate and monitor business processes, and provides clients with real-time analysis of the underlying IT systems carrying out those processes. Organisation structure: - Sales & Distribution Group. - Global Business Services Group. - Global Technology Services Group. - Software Group. - Systems & Technology Group - Integrated Operations Group. - Innovation & Technology Group. HRM: To eliminating redundancies and overhead structures to drive productivity, the integration of HRM has improves IBM's capacity to innovate by providing greater clarity of key priorities around shared goals and objectives and leads to a sharper focus for the company on learning, development and knowledge sharing. Perhaps after this integration, IBM has acquired numbers of companies to enhance their capability. However the integration issues could appear during the acquisition process that would be the challenge of the HRM, e.g. the culture conflict. Technology development: IBM's research and development, operations differentiate IBM from its competitors. IBM annually spends approximately $5–$6 billion for research and development, including capitalized software costs, focusing its investments in high-growth opportunities. IBM has some of the best technology registered in its account that made revolutionary changes through-out the many of business operation through huge amount of business data transferring around the world. Procurement: IBM has developed Business Partner relationships with establishment, best-of-breed Supply Chain Management solution providers. Their solutions, coupled with IBM products and services, deliver the cost-competitive, scalable and secure infrastructure the customers need. Acquisitions and mergers in order to improve their businesses on the high value products and services, IBM acquired service-related companies into the global services segment, (e.g. Network Solutions, data storage and transferring, mainframes etc) and the software-related companies that were integrated into the software segment. Inbound & Out bound Logistics and Operations: IBM's supply, manufacturing and logistics and customer fulfilment operations are integrated in one operating unit that has reduced inventories, improved response to

marketplace opportunities and external risks and converted fixed to variable costs. This feasibility IBM has acquired after facing a huge flexible competition by Compaq in 1982. Through this flexible and enormous services exchange system IBM now a days possessing almost top position at market in its segment. Key Financial system/ Marketing and sales: In 2005, the company realigned its operations and organizational structure in Europe to give sales and delivery teams greater authority, accountability and flexibility to make decisions and to execute more effectively on behalf of our clients. The company had broaden their dimension to Asian countries in order to increase their sales, company has explored a huge profitable market in Asia specially in the middle and far east Asian countries which includes some of the fastest growing economies ( China, India, Taiwan and Hong Kong, Singapore, Thailand, Indonesia and the Philippines etc.) Services: IBM Provides technology and transformation services to clients, businesses, and invests to improve the ability to help their clients innovate. And this is the high value added and profitable process. The service IBM provides beside of above mentioned are Middleware services, Outsourcing services, Security and privacy services, Server services and Site and facilities services, mainframes, communications, mainframe storage, minicomputers, and personal computers. Global Business Services (GBS). IBM Global Business Services replaces what was formerly called Enterprise Business Services and Business Consulting Services. Redbooks are distributed by IBM and are increasingly available through online bookstores such as Fatbrain.com and Amazon.com. IBM provides services basically in three categories. 1. The more IT-oriented technology services offerings like strategic outsourcing, integrated technology services, and hosting. 2. IT infrastructure delivery, which is becoming increasingly strategic as a lever to drive productivity, efficiency and margin improvement. 3. And offerings targeted toward transformation and high-end business value -consulting, systems integration, application services, business transformation outsourcing, asset innovation, and strategic business development. (Understanding IBM, 2008) Value System Analysis: The value system of IBM is as follows: In this value network of server products, the processor and the software providers have higher profit pool than other suppliers. Furthermore for the distributors, the retailers have the high profit pool. Therefore, the profit space of server products for IBM is not wide enough. Value drivers:

and more than 400 Internet Service Providers in 2000. guarantee Business orders: Price. and the customer experience on the service would be higher or more difficult to be satisfied.K it was nearly 60. the population in just U. choice. the heavy taxes in the UK make the IBM server products increase the weakness on the price factor. A survey from CIA. the opportunity and competition will exist together. IBM also added some of the revolutionary environmental friendly strategies which not just provides environmental saving factors. The healthy economic environment with strong and stable GDP in the all regions provides a good market for the product and service business of IBM. That indicated that the high value added service market in the world is matured. Technological factors: Internet. guarantee.6 million in 2005) were internet users.4% to the GDP in 2006.153. more than half of these people (37.860 Internet hosts in 2006. the stability could balance this disadvantage element. but also cost saving factors like energy cost. service. IBM made computers for NASA for astrology that made them to set the satellite which monitor the environmental changes over the glob. (2007).composition by sector: The service industry in the world contributed nearly 73. Environmental factor: In environmental dimension the IBM made the some of the major technologies like to trace the weather through-out the world.Channels Value Drivers Wholesalers: Price. GDP . quality.609. The information above shows the main distributors of IBM and their value drivers. In this sophisticated market.064. Economic factors: GDP factor. . PESTEL Analysis: Political factors: Taxation. satisfying their distributors is required for IBM. in 2006. Although the GDP increase rate is not fast. (2007) shows that there were 6. logistics Retailers: Price. Because of high buyer power. and according to CIA. Socio cultural factors: Population and the internet users. service. especially on the premium price IBM products. The well known about the internet indicated the opportunities of relevant products and services.

manufacturing and the distribution. IBM spent nearly $171 million in system and technology for server product in 2005. the world server market continues to show promising signs. There were many product choices for the buyers. Power of Suppliers: Intel and AMD.(Shankland. the cross country business. The advantages of web hosting include low cost. germanium and silicon). tech-support. e. However. have very strong power on the chip supplying. the competitive rivalry in the server market was becoming intense in the world.g. 2002) This was only the barrier on the cost.2006) and IBM spent over $1 billion in the Linux operating system in 2001. IBM. Poters 5 Forces Analysis: The threat of entry: the threat of entrants for the server market was low because of the enormous costs on the R&D. (2003). HP. For example. These competitors included HP. easy to manage and low switching costs. Although the power of suppliers might be decreased resulting from the competition between these two companies.Legal: The main legal constraints for IBM are Cyber protection and the chemical the use in making hardware (like: carbon. there were other barriers like technique. Dell etc. Power of buyers: The power of buyers for the server products in the UK was high because the buyer did not concentrate to the firm and the switching costs for the buyers were low. IBM. the advanced personal computer might be another biggest threat to the server . The threat of substitutes: The web hosting business might be the biggest threat of substitute for the server products in the world. Competitive Rivalry: By 2003. In addition. relevant support products and services. currency exchange and many legal registrations for their business outsourcing facilities. (Annual Report. the wide range of customers and high costs on switching cause the buyers lack of power to bargain with these two giants. the power of suppliers for other low technical required material and parts was much lower than the core hardware providers. distribution channels etc. Sun Microsystems. according to IDC. Dell and Fujitsu Siemens Computers were becoming the fifth leading server vendor in the world. as the two biggest processor providers (monopolies) in the world.

. Outsourcing services.Advanced business performance management. However. . SWOT analysis: Strengths: . the PC can not instead of professional server for the business uses. Integrated communications services. . IBM spends much on its research and development then it’s earning and have very limited supplier in market. 3). . End user services.Creative services.e. Good organization culture.High efficient fulfilment centre. Through such outperforming technologies IBM is able to provide some of the best back hand facilities.Strong and stable economic market context. mergers and acquisitions.Possible acquisition issues. IT strategy and architecture services. Weaknesses: . . minicomputers. The most recent merge of IBM is with the Lenovo in which lenovo is providing the outer hardware technology and IBM providing all of its latest chip technology. . Since company owning very sensitive place in market. . . because of its massive organisation size the immediate change are likely impossible. Middleware services.Flexible marketing management.Strategic outsourcing. Security and privacy services. Now IBM came in market with its revolutionary Green technology through which they can save 40% of energy cost through animation.High individual consumption power. Server services and Site and facilities services.High costs in the value chain. consolidation and consultancy. blue gene a supercomputer which is 500 times fastest than world fastest computer and capable of more then one quadrillion operation per second. Maintenance and technical support services. . - As company handling all most 95% of business task of top 1000 companies of wall street. the company have some of the world fastest main frame and many revolutionary technologies like: speech recognition a software with which you can work just with your voice.product. Opportunities: .Sophisticated service market. communications. Business continuity and resiliency services.Matured internet market. mainframe storage. and personal computers. currently. IBM has been entered the wide range of fields i. mainframes. Since.

new contracts. 4). Local Community Jobs. IBM can hold a large share in market. just with little feasible strategies to market changes. Strategic option/ future strategy/ Objectives: It is becoming widely understood that the way in which companies are behaving as a society is environmentally unsustainable. Rising energy prices. Stakeholder Expectations and interests. that’s why it’s not easy for other companies to enter in this field and compete over IBM. Customer. The internet is one of the wide application. . . are increasingly impacting on the cost of doing business. Involvement. Customer may look for change.Customers have high experience on the service. Targets. . Working environment and hours. IBM may face threat from small companies like Compaq because of their small size they can change rapidly with customer environment. Owners private/shareholders Profit. Since. that is growing faster then any thing on earth. Performance.IBM has high switching costs on the core hardware. Liquidity. Trade.High level of entry barrier to the server market. Stable. Legislation. Customers (Distributor/Government) Quality. causing irreparable damage to our planet. As being one of the oldest players of its field. Creditors Credit score. 5). together with government-imposed levies on carbon production. company possess a good place in market. Strategic challenge/issue: These are the aspects that affect the strategy changes with in the management of IBM. Today as market is so flexible. Shares. Payment. Senior Management staff Performance. IBM is almost created monopoly on server market. Price. Direction. 2008) Well. Job security. making many current business . Environmental issues. the opportunity is open for IBM.High threat of substitutes. Care. Employment Rate. IBM can barely afford to substitute.Wireless Applications (Understanding. except some huge market giants like Microsoft. suppliers and employees using wireless and emerging technologies. IBM high spending than its earning on research and development can be a loophole for IBM. . Threats: .Customers( have low switching costs. Suppliers Long-term Contract. almost the star of its field. through these specifications IBM can create a monopoly in its market. VAT. Wireless solutions enable customers to extend their reach to clients. Since. Non-Managerial staff Rates of pay. Minimum wage.Intense competition. Because of very limited suppliers during value chain process.. because IBM already in this field by providing huge data storage facilities. Government Taxation. . Unions Working conditions. IBM has very less count of competitors in its segment.

but also to enhance the brand and to improve corporate image. Market and industry shift are a chance to move ahead of the competition.Inflexibility. Implementation and Change: IBM has the biggest threat in front of it that is global recession. Insatead of merely responding to trends. It is becoming progressively more important for all businesses to act (and to be seen to act) in an environmentally responsible manner. Its business is strategically designed to access the best capabilities.Complexity. because the material they use is toxic in nature and the use of these gadgets is all over the world and in massive amount.Speed. it shapes and leads them. The antidote to complexity is transparency. . Environmental issue is one of the important aspect of this company. Complexity can hide the reality about . both to fulfil their legal and moral obligations. That’s why government are getting strict on these factors and screwing it up day by day with strict rules. It shifts the value proposition. Hungry for change: The enterprise of the future is capable of changing quickly and successfully. overturns traditional delivery approaches and. . The main focus problems for the company are: . reinvents itself and its entire industry Genuine.Scale. from their environmental strategy IBM has save 40% of energy. 6). This dimension is eco friendly as well a positive sign for IBM because they are saving huge amount of energy amount. Disruptive by nature: The enterprise of the future radically challenges its business model. as soon as opportunities arise. (‘Green IT’ – the next burning issue for business 2007). The company has to find some strategy which act as cure for their company in this unsteady market. not just generous: The enterprise of the future goes beyond philanthropy and compliance and reflects genuine concern for society in all action and decisions. Globally integrated: The enterprise of the future is integrating to take advantage of today’s global economy. Deep collaborative relationships allow it to surprise customer with innovations that make both its customers and its own business successful. Innovative beyond customer imagination: The enterprise of the future surpasses the expectations of increasingly demand customers. . IBM has already begun on this champagne of green and save energy cost which worth million. disrupting the basis of competition.practices economically unsustainable. knowledge and assets from wherever they reside in the world and apply them wherever required in the world.

allowing panicked player to assess the situation more fully. gives a brief over-view of IBM stragies and core operation via SWOT and Internal analysis which includes sales and distribution. The company must consider the another constraints like global currency slump. The antidote to the massive scale of losses will be the creation of larger reserve institutions. The company must maintain a reserve that is equal to the loss they has expected and creates dent to such occasion.A. the company has been noted for its continued participation in . (Cure of the crisis. The brakes need to be applied infrequently and carefully. If player in the market can correctly anticipate a reaction by governments. wealth distribution scheme.. Although these two large economically stable countries are quite different. the Italian and the German one. This led to great uncertainty in the minds of investors and can cause irrational behaviour among players. Trading in markets can be suspended. as can provide a “cooling off” period in which news and information can disperse. KFS. The first remedy to future crises is greater transparency in the form of stronger reporting requirements to the public. Conclusion: The information and fact available above in report. Firms and individuals who want to borrow should be required to purchase “shock absorbers” with which to withstand a loss of income. For the investigation we used business theories such as the marketing mix. The antidote to speed is a coordinated braking mechanism. The antidote to inflexibility is insurance. PESTEL and Porter 5 forces. natural disaster or default. Throughout its history.financial condition. Runs on solvent companies arise where customers cannot tell the difference between those organisations which can meet their financial obligations and those which cannot. This report also lighten the future objectives and challenges for organisation. analysis of segmentation and positioning. THE BRAND Ferrari is an Italian sports car manufacturer based in Maranello. And on the bases of above analysis the last aim of this report is to suggest some of the strategy which covers the loophole of the organisation weak points. we analysed marketing strategies and their success in two different markets. the player will begin to game system. Italy. We will explain the way the company works. FERRARI EXECUTIVE SUMMARY Focusing on the sports car brand Ferrari. the Boston Consulting Group matrix. Founded by Enzo Ferrari in 1929 as Scuderia Ferrari. The most basic kind is a “rainy day account” a reserve fund of cash that a firm or individual could use in case of adversity. 2008) 7). Ferrari doesn’t make many differences in the way of seelling cars. the company sponsored drivers and manufactured race cars before moving into production of street-legal vehicles in 1947 as Ferrari S.p. product life cycle.

Not just anyone can buy a Ferrari. Italian and goes from 0 km/h to 100 km/h in three and a half seconds?” The answer is Ferrari. but rather to sell a specific offering to a specific group and. what makes Modena the international capital of sports cars. it is smaller than Porsche. {draw:frame} Since 1969 Ferrari has been a subsidiary of Fiat. Ferrari sales have continued to increase steadily since 1998. F1 team and the famous test track. you will not be able to get your hands on one. Italy has the strategic advantage in serving the key markets for sports cars. unless you are invited. Italy has the second highest absolute car penetration behind Luxemburg. In terms of production capacity. but bigger than Lamborghini and Lotus. we have to appreciate the efforts of these Italian masters. Due to the universal strategy adopted by Ferrari in all the markets in which they take part.racing. Luca Cordero di Montezemolo (ex-president of Confindustria). The small geographic area produces a surprisingly high portion (nearly a third) of all the high-end sports car units sold worldwide every year. they are poorly positioned and vulnerable to competitors that adopt a more targeted niche approach. Enzo Ferrari’s maxim: “We have to build as many cars as the demand requires… less one” Organizations that use this strategy discovered that without a specific target market to design their products around. {draw:frame} Because of the geographic location and its affinity for cars. As we can see. There is one center of Ferrari sport car production and another one seated in Modena (Scaglietti bodywork) mainly specialized in the formula 1 manufactures. including factory. from the following exhibit. cars have an extremely high penetration. Ferrari. Within 15 km radius round in Modena there are three of the most valued sport cars companies. PRICE Ferrari's pricing strategy also offers a marketing masterclass. The scuderia Ferrari team is based in Maranello adjacent to Ferrari’s road car factory. The total annual average production. the secret of profitability is not to sell a lot. where it has enjoyed great success. development center. born by the fusion of advanced technology and refined artisanal care is about 4200 exemplars. especially in Formula One. In fact. because aside from technical expertise. Prices are not just the . Number voluntarily limited by the president. Lamborghini and Maserati. given Italy’s level of GDP per capita. Ferrari also understands how to approach to the market. In fact. Italy represent nearly 12% of sales of Ferrari. crucially. In fact. not to waste time or resources on customers who fall outside the target group. In contrast. All facilities are located in Maranello. ITALIAN – GERMAN FERRARI’S MARKETING MIX PRODUCT: “What's red. {draw:frame} Ferrari's targeting strategy offers an excellent example of its expertise. {draw:frame} In fact. we will analyze the Italian market and continue with the German’s one.

Starnberg. Since the beginning. “Luxury sets price. Köln. the introduction or start-up. Ferrari never spent a penny in communications or in advertisement. 20 authorized dealerships and one service-point offer the information needed. the Passion for engines. moreover this company doesn’t need a strong . Holzwickede. Stuttgart. In Germany. PRODUCT LIFE CYCLE In the first phase. These places are chosen between the best Italian cars showrooms. Frankfurt/Main. the Passion for Car Racing. Also. the German Formula 1 pilot Michael Schumacher helped the Scuderia Ferrari in the sight of being statistically the most successful F1 team in history. Bayreuth and Dettelbach/Würzburg.Yet. of a creative identity. Germany also represents the second largest market for Ferrari worldwide and the largest market in Europe. Singen. which gives ferrari loyal customers. and value of the materials. This Passion and excitement goes through to every racing sport lover all around the world. Ferrari coorperates with other brands like Lego Racers or Adidas. This has been the marketing strategy of Ferrari. The dealerships are based in Radebeul/Dresden. in terms of technologies. PLACE {draw:frame} In Italy there are 37 Ferrari concessionaries. In these showrooms every single detail (furniture. Völklingen. that work directly with the rampant horse. and wait patiently 18 months before the brand deliver the new Red Ferrari. Meerbusch. The company has a developed market of merchandising. Osterhofen. one of those stores is located in Berlin. Luxury is the expression of a taste. employees dressing) represents the top quality category that Ferrari embodies. München. In 2007 Ferrari sold 6400 sports cars. If someone wish to buy a Ferrari F430 or a 599 GTB. This helps to amplify the brand recognition. we have to consider 2 factors: The luxury market. price does not set luxury!” PROMOTION {draw:frame} Ferraris promotion is different compared with the others. there are some special shops that just offer Ferrari merchandising products. Mühlheim-Kärlich. No other brand has the allure of the Ferrari Brand. so the image of the place where to buy a top quality sports car has to coincide with the image of the brand. like a product that just a little minority could have. Hamburg. For example.means of generating revenues. this person has to give a downpayment to the Ferrari dealer. the company was doing both things it still does today: Car Racing and constructing extraordinary sports cars for speed lovers. They also indicate the quality and exclusivity of the product as well as the corporate brand responsible for that product. Kassel. handmade work. the image that the same product assigns to his owner and for sure the real value of the product. Nürnberg. They have a share of 11% of the Ferrari global sales. 88% of the production is exported. Berlin. Stuhr/Bremen. To investigate about it. Moreover. HannoverLaatzen. we can see that Ferrari cars (as it is a luxury brand) are not a basic product. The Passion for speed. of the intrinsic passion of a creator and certainly has two value facets: Luxury for oneself and luxury for the others.

this is the second dimension of the BCG-Matrix. These were sold before they were produced.promotion since it is one of the most important teams of F1. Therefore. the crisis has allowed them to get rid of the speculators. the Enzo can’t be called as one. Ferrari should have some cash cows. the brand doesn’t have a massive product extension. Furthermore. Maybe the Enzo matches a poor dog soonest because with an amount of 400 cars there is no high market share and. however. question marks or poor dogs. But. SWOT Analysis . Ferrari has always been a successful brand. This stage can be the longest because the company can use a lot of marketing strategies like taking out the market different models of the product or just manufacture a limited edition. You see. In addition. On the other hand. as well as a question mark. Moreover. Actually it is quite difficult to get free information about the Ferrari products. BCG MATRIX As already mentioned before. Moreover. the marketing responsible of the brand. Andrea Ferrari. chapter Product Life Cycle). here is shown Ferraris outstanding position. the demand was that strong that Ferrari decided to sell 399 cars (later the 400th car was produced for a fundraiser). the products don’t conform always to the normal life cycles of a product (s. nowadays economy is in a recession stage. In the growth phase. The BCG-Matrix is based on the life cycle of a product. This money should be used for your question marks or stars that need much money in the phase of becoming a cash cow. there is no development of the product. all Enzos were sold at once and Ferrari earned much money with them. for Ferrari the (relative) market share is an important indicator. according to the definition of a cash cow. star or poor dog. the importance of the dimension of the market growth rate is questionable in the small market of luxurious super-sports cars. which wasn’t very good for the image of the company. you would be asked whether you want to buy one. Those are the fundamental products because you don’t have to invest in them and they give you much money. people who made petitions and negotiated whit them. Ferrari is an outstanding. stars. In this period customers are more attracted by the product. also. which makes it really influential on the consumers. with a very special marketing strategy and a small group of exclusive costumers.not anybody could buy a Ferrari Enzo. not usual brand. it grows little by little. in which Ferrari compete. products with a high market share and low market growth. And don’t forget the big marketing influence which the Enzo has on the luxurious image of Ferrari. if it has a selective public. assures that they keep on their waiting list for the Ferrari cars. So it is not possible trying to create a Ferrari portfolio analysis here or showing some cash cows. a poor dog can bring you much money. For example. which increase the interest of the consumers. they set a limitation of 345 cars.consequently an analysis of Ferrari products and creating following strategies by using the BCG-model could be problematic. But lets put give an example of a Ferrari product that doesn’t fit with the BCG-analysis model and outlines the special position of Ferrari: When Ferrari wanted to build the “_Enzo_”. the market of such a super-sports car is very small.

To do this segmentation. Also. who belong. Anyway… who doesn’t recognize this logo? . and freedom only available for those “special” costumers who reach some specific characteristics set by the company. there are some exceptional cases of famous people who are invited to buy a Ferrari just as a way of addvalue to the brand. mainly men. Finally. to high class. it is easy to see that it is a brand with a selective public that targets their consumers offering not only a car. Obviously getting one of these cars is not for everyone. motive and lifestyle: Quality Luxury Status In what concerns to Ferraris’ targeting strategy. and Ferrari ensures that. but luxury. luxury.Strengths: Myth (all over the world) High prices Luxurious and exclusive Belongs to FIAT High quality Weaknesses: ??? Opportunities: Accomplishing an “immortal” myth Improving technique and quality Threats: Loosing its myth Will always people go on enquiring a luxurious super-sports car? Not resistant against economical crises SEGMENTATION Ferrari divides the total market into small homogeneous groups in order to focus their efforts in selling to these new niches. is composed by high educated and high income people. are: Demographics: Age: 35 to 55-60 years Sex: Male Family: Single/Divorced Socio-Economics: High-incomes High-education High-class Personality. the positioning of Ferrari consists on finding the way to position the brand in the mind of the consumers. the company had worked in building a brand-image of exclusiveness. taking in account the special needs and characteristics that every group has. status and quality. between 35 and 60 years old. Ferrari considers a group of variables that allows them to divide the market. as well. in which they are focusing. The niche. To do this. The Variables. used by Ferrari.

Strategies for RETAILING: a conceptual study on big bazaar retail strategies Abstract: Indian retail sector is witnessing one of the most hectic marketing activities of all times. However. accounting for over 10 per cent of the country’s GDP and around 8 per cent of the employment. In this paper author made dare attempts to answer the following questions • To understand marketing strategies in mass markets. the prospects of both the sectors are mutually dependent on each other. • To analyze growth strategies of Big Bazaar in the wake of increasing competition from other global players. Big Bazaar went into tie-ups with some of the manufacturers. a hypermarket from Pantaloon Retail (India) Ltd. The whole concept of shopping has altered in terms of format and consumer buying behavior. emerged as a success story in the Indian retail scenario. "Pressure on some food product prices is impacting sentiment. There is always a ‘first mover advantage’ in an upcoming sector. he was quick to add that rise in commodity and food grain prices are acting as a dampener. ushering in a revolution in shopping in India. • Big Bazaar’s promotional strategy Keywords: retail strategy. which helped the company to offer goods at low prices to its customers. has presently emerged as one of the most dynamic and fast paced industries of our times with several players entering the market. The Indian Retail Industry is the largest among all the industries. In India. Retail. Big Bazaar. Retailing in India is gradually inching its way toward becoming the next boom industry. entertainment and food all under one roof. multi-storied malls and huge complexes offer shopping. that advantage goes to “Big Bazaar”. And if industry experts are to be believed. promotion strategy. Retail and real estate are the two booming sectors of India in the present times. the retail king says demand for new categories is emerging2. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. one of India’s largest industries. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. Commenting on the outlook for the sector in 2010. The Indian population is witnessing a significant change in its demographics. Big Bazaar came out with innovative marketing strategies which attracted the middle class consumers. Modern retail has entered India as seen in sprawling shopping centers. Big bazaar coming to India it will be at its introduction stage . to meet the aspirations of the middle class. big bazaar Introduction Big bazaar – the discount store was launched in the year 2001. The companies are fighting for mind share and heart share which can finally be converted to market share. the large and growing young working population of a preferred customer segment • Big Bazaar specifically targets working women and home makers who are the primary decision makers..

with a large product offering and offer a good depth and width in terms of range. Personality & Symbolism Big Bazaar (Exhibit 1) is Indian personification of retail. And really. It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class. 2Published on Tue. free parking. we want everything: • a wide assortment of good-quality merchandise. • a pleasant shopping experience. It was started as a hypermarket format in Mumbai with approx. Big Bazaar: Brand’s Identity. knowledgeable service. offers. 2010 at 19:09 | Updated at Tue. Kishore Biyani never hired any foreign consultant for Big Bazaar which is . exterior look justifies its name “THE BIG BAZAAR” BIG BAZAAR: FOR THE GREAT INDIAN MIDDLE CLASS Kishore Biyani led the company’s foray into organized retail with the opening up of the Big Bazaar in the year 2001. Its values and missions are to be the best in Value Retailing by providing the cheapest prices and hence go the tag-line “Is se sasta aur achcha kahin nahin” It sells variety of merchandise at affordable rates. Usually the items are clubbed together for offers as on the lines of Wal-mart and Carrefour and it also offers weekend discounts. as the store offers large mix of products at a discounted price. discounts. Strategies for retailing The secret / strategies of successful retailing are to give customers what they want. The strategy which they adopt is that they will have low price.so it is quite obvious that it will adopt some strategy for attracting the customers. • friendly. Jan 12. • guaranteed satisfaction with what we buy. it offer different kind of schemes. the prices of which it claims are lowest in the city. the environment created by traders to give shoppers a sense of moment. Its personality is of being an entity away from fancy or pretty and being authentically "no-frills". if we think about it from our point of view as a customer. scratch cards. Jan 12. It’s like an Indian bazaar or mandi or mela. 50. the name “Big Bazaar” was finalized The idea was to recreate a complete bazaar. • convenient hours. • the lowest possible prices. It currently operates out of more than 100 stores and top 25 stores register a cumulative footfall of 30 lakh a month on an average. The concept of “Bazaar”. 2010 at 19:13 | Source : CNBC-TV18 THE STRATEGY OF BIG BAZAAR Saving is the key to the Indian middle class consumer. coupons. high advertisements. It has got massive appeal.000 sqft of space.

kirana stores. they never sell goods below the price they have purchased it. Also. the "Indian Wal-Mart". To use predatory pricing is not in the personality of Big Bazaar.evident from Indian-specific personality of the brand. The strategic decisions to secure spaces before other retailers join in have resulted in cost-saving. According to Kishore Biyani. while Big Bazaar is looked up to by millions of Indians to fulfill their aspirations. it has created early presence in market. The brand’s personality is selfexplanatory by its tag-line only. It reflects that entrepreneurship and simplicity are the essence of character of Big Bazaar. Big Bazaar make full use of the marketing mix for a new ventures which earlier belongs to the unorganized retail sector i. This trust led to strategically correct decisions most of the time. is the modern Indian family's favorite store.. . Big Bazaar. This statement places Big Bazaar at the top of customer’s mind. and buyers or users perceive values in it which matches their needs. location is one of the most important things. . Dhoni would feature in a series of advertisements across all media. A successful brand is an identifiable product or service. In this way. The strategic decisions that lead to BUILD BIG Bazaar BRAND: Real Estate Game For a retailer. Big Bazaar: Positioning & Establishment Positioning of big bazaar: Big bazaar positioned itself between low price and high service. Big Bazaar has shown a robust growth in recent years Brand Ambassador: A brand ambassador is a celebrity (or an attractive or interesting person) used to help advertise a product or services. has roped in cricketer Mahendra Singh Dhoni as the Brand Ambassador for its new range of fashion apparel. Big Bazaar.e. By this positioning strategy it attracts middle class people . Nurturing Relationships Kishore Biyani follows strategy to develop trust and nurture relationships with suppliers. real estate cost should be less than 5% of total sales of store in order to provide maximum benefits to customer. Application of the best marketing practices helps Big Bazaar in a great way. Dhoni and Big Bazaar have a lot of synergies as the Indian one-day international team’s captain stands for the aspirations of youths. Value of Branding Branding plays a crucial role for all the products and services.

etc. Successful marketing depends on number of key issues.000 microwave-ovens. toys. Product mix of bigbazaar .000 DVD-players and 25. there are many in house brands promoted by Big Bazaar.000 pairs of jeans. selling to existing customers.SWOT ANALYSIS: The SWOT Analysis of current strategy of Big Bazaar elaborates the core competencies and areas of improvement. This helped Big Bazaar in being the "value for money" store. Big Bazaar refrains from high-end locations for business which reduces its rental budget and provides competitive advantage over competitors. 50. farm products. child care. The key features in establishing a brand : Big Bazaar ensures that no other kirana store / departmental store are offering considerable discount compared to its own price.. Cheap and local products are heavily stocked in Big Bazaar which makes it easier to attract lower middle class category of customers. The seven keys issues are explained as: Product Big Bazaar offers a wide range of products which range from apparels. the fashion. Big Bazaar sold over 300. (Exhibit 7). electronics and travel segments made up about 70% of sales. Kishore Biyani has taken "early movers advantage" in many retail spaces. Also. these categories made up only about 60%. furniture. Last year. Promotion of kirana is rare event but Big Bazaar used this channel efficiently to establish itself as national brand. Products of all the major brands are available at Big Bazaar (Exhibit 8). i. Big Bazaar scores high on product mix as compared to kirana store. In all. BCG MATRIX OF BIG BAZAAR [pic] 7P ANALYSIS OF BIGBAZAAR: 7P Marketing Mix is more useful for services industries and knowledge intensive industries. food. Customer loyalty resulting in high up sell.e.

Rs. The various promotion techniques used at Big Bazaar include "saal ke sabse saste teen din". Advertising has played a crucial role in building of the brand. Point-of-Purchase Promotions. Promotion Big Bazaar started many new and innovative cross-sell and up-sell strategies in Indian retail market. 49. TV. Place Big Bazaar stores are located in 50 cities with 75 outlets . There pricing objective is to get "Maximum Market Share". TV ad.Price The tag-line is "Is se sasta aur accha aur kahin nahi". or comparison shopping. Dhoni. waiting for discount promotions. S. 99. Promotional Pricing: Big Bazaar offers financing at low interest rate. pongal and Durga Pooja). Card (the card offers 3% discount). Mar 2007. They are aggressive on their expansion plans.e.) is used as promotional tool. i. which is aggressively used by Big Bazaar. Exchange Offer . Brand Endorsement by M.Every Day Low Pricing): Big Bazaar promises consumers the lowest available price without coupon clipping. Differentiated Pricing: Time pricing. Bundling: Selling combo-packs and offering discount to customers. radio) • Brand endorsement by m. Opportunity India Retail.. Shakti Card. The various techniques used at Big Bazaar are: Value Pricing (EDLP . Big Bazaar advertisements are seen in print media.s dhoni . etc. Big Bazaar also caters on Special Event Pricing (Close to Diwali. difference in rate based on peak and non-peak hours or days of shopping is also a pricing technique used in Indian retail.‘Junk Swap Offer’. Radio (FM) and road-side bill-boards. The combo-packs add value to customer. Big Bazaar has presence in almost all the major Indian cities. They work on the model of economics of scale. Retrieved Nov 2007 Promotion strategies The main idea/startegy behind every effort is to make a bulk purchase • “Saal ke sabse saste 3 din” • Hafte ka sabse sasta din “Wednesday bazaar” • Exchange offers “junk swap offer” • Advertisement (print ad. The concept of psychological discounting (Rs.

Process The goods' dispatch and purchasing area has certain salient features which include: Multiple counters with trolleys to carry the items purchased. etc. Use of technology like scenario planning for decision making. • Low prices on Wednesday • Promotional offers • Concept of big day • Happy father’s day People They are one of the key assets for any organization. staff at store to keep baggage and security guards at every gate. is above the line promotion The terms 'below-the-line' promotion or communications refers to forms of non-media communication. not only those involved in FMCG products. SOAP.). radio. newspaper etc. the staff employed by Big-Bazaar is well-suited for modern retail.000 people and recruits nearly 500 people every month. makes for a customer-friendly atmosphere. The promotional activities carried out through mass media like television. so staff is empowered to take innovative steps. Some of the ways by which companies do BTL (below the line) promotions are by • Exhibitions • Sponsorship activities • Public relations • Sales promotions like giving freebies with goods • Trade discounts given to dealers and customers • Reduced price offers on products • Giving coupons which can be redeemed later etc. The salient features of staff of Big Bazaar are: Well-trained staff. Employs close to 10. but also for industrial goods. Multiple counters for payment.• Point of purchase promotion • Faida zones Promotion can be loosely classified as "above the line" and "below the line" promotion. Well-dressed staff improves the overall appearance of store. Proper display / posters of the place like (DAL. . Employees are motivated to think out-of-the-box. even non-media advertising. Below-the-line promotions are becoming increasingly important within the communications mix of many companies. which is much lesser than the normal media promotion. BTL promotions are gaining popularity among all big companies nowadays considering their effectiveness because of the "individual customer promotion" at a price. Retail sector is in growth stage.

This creates aura about the Big Bazaar brand in the minds of customers. Pet/beer bottles (Rs 15 per kg). These catch-phrases appeared on hoardings and newspapers in every city where Big Bazaar was launched. Everybody understood and connected easily with these simple one-liners. Road-side Advertisements: Big Bazaar bill-boards are displayed on prime locations in various cities as a brand building exercise. Sanjeev Agarwal. The customer can redeem the coupons before the due date on the condition that he/she shops four times the value of the coupon. The prices fixed by Big Bazaar are: clothes (Rs 200 per kg). tyres (Rs 50 per kg). President (Marketing). 100 per kg). Big Bazaar is launching a promotional offer from Saturday. such as newspaper. Big Bazaar commercials are shown on various channels in India. Bhesh Badlo" is the latest . TV Ads: Kishore Biyani spends a lot of money in brand building exercise. Physical Evidence It deals with the final deliverable or the display of written facts. 75 per kg). "Bengali . etc. This includes the current system and available facilities. The catch-liners include "Hindi . and get coupons issued in exchange of the junk. plastics/utensils/leather goods (Rs. Pantaloon Retail (India) Ltd.Stall ke bhaw balcony". Fashion@Big Bazaar commercial is aired. Presently. newspaper (Rs 25 per kg). furniture (Rs 75 per kg) and others (Rs 20 per kg). This informs customers about all new happenings at Big Bazaar. A press release issued by the company says the customer can bring anything old.Chane ke bhaw kaaju".Rui er dame illish". BIG BAZAAR’S JUNK SWAP OFFER Junk swap offer "This offer will help the housewife clean out the junk while getting a good value for it. "Hindi ." says Mr.Home delivery counters also started at many places. Advertising: The Essential strategy of Brand Building Process Advertising is an essential component of brand building. They display the catch-phrases now-a-days. Radio Ads: Advertisements on FM channels for attracting customers.Desh Badla. Fashion Shows: "FASHION @ BIG BAZAAR . with the slogan. Print Ads: Big Bazaar newspaper advertisements are present just before launch of any new scheme. These tag-lines are modified according to demographic profile of customers. footwear/luggage (Rs. the techniques used are: Tag-line: Big Bazaar tag-lines are the key components of advertising. "bring anything old and take something new”. The advertisement and brand building is done through various ways.

invention of the Indian iconic brand.0 483.2 33.5 Services Health goods and 131.412. The potential customers of Big Bazaar are India One and India Two.5 103.9 33.096.5 357.259.883. Confidence and Consumption. BIG BAZAAR: STARTEGY TO IDENTIFY POTENTIAL CUSTOMER Big Bazaar is based on 3-C theory of Kishore Biyani.320. and according to this theory. .480. The customer insights were developed by close observation of the target set.7 965.544. the flagship hypermarket brand of retail chain of Future Group.1 835.484.3 35.516.1 9.463.560. .97 8. "Change and confidence is leading to rise in Consumption". India Three Struggling class. Big Bazaar.923. Disposable Income & expenditure pattern of Indian household Rs per household 1990 1995 2000 2005 2010 2015 Mean Disposable Household Income: Current 26.23 1.8 Expenditure pattern: Household goods and 117. have hand-to-mouth existence.510. washermen.7 51.153.210.610.967.7 31. etc.0 566.8 Constant 1990 26. They divided Indian customers in three categories: India One Consuming class constitutes only 14% of Indian population.195.0 1.090.1 79.4 190.8 267.2 30.911. remaining population of India.179.5 Clothing and footwear 238.480.837.6 120. Mumbai.0 524. In an effort to take the Fashion to the masses.640. Cannot afford to inspire for better living. The insights that came out were: • The clean and shiny environment of modern retail stores creates the perception that such store are too expensive and exclusive.0 626.955.44 1. The 3-C symbolizes Change.0 846.0 113.170.3 1. They are upper middle class and most of customers have substantial disposable income. and are not meant for India Two. house-hold helps office peons.360.8 653. Euromonitor International India Two Serving class which includes people like drivers.227. organized a three-day Fashion Show on the streets of Bandra.030.4 1.1 Source: National statistical offices.34 6.268.

that is multiple clusters within a bazaar. To achieve this they are targeting a turnover of Rs. Metro. shopping is an entertainment.. ft. so they prefer not to have tie.. they come in groups.000 sq. with families so Big Bazaar should offer something for every section of family. grams. • Purchased bags / goods should be sealed at check-out as customer can enter and exit multiple times. Big Bazaar has counters where you can touch wheat. ft. They prefer to be in queues. are in the race. The company has also gone on record saying that it would have another 35 stores by the end of its fiscal in June 2009 to take the total number to 135. 5. • Hypermarkets in India should be situated in city unlike western countries where they are located away from city. The company may also increase its annual turnover to Rs. they are not individualistic. sugar. etc. One will be front-end consumer-oriented entity and other will be for back-end operations. etc. it’s about believing in Indian ways of doing things. and Big Bazaar Supercentres with store area more than 75. Back-end entity may enter into joint venture with leading international cash and carry retailers. radio in local languages. The front-end operations will be further divided in three categories.600 crore last fiscal on the back of its expansion.• India Two finds moves and find a lot of comfort in crowds.000 sq. • Indian customers prefer to purchase grains. etc. Big Bazaar: Future Possibilities Future Group is planning to split Big Bazaar into two entities. • The guards. salesman at the Big Bazaar outlets should not look smarter than customer. • Indian-ness is not about swadeshi. in their uniform. 3. • Advertisements about schemes and offers through local newspapers. 13. Foreign partners like Carrefour.. and their role will be to improve efficiency in sourcing and logistics. etc. Big Bazaar Express with store area less than 40. That also led separate section for clothes. ft. rice. Future Group is also planning to distribute financial products like consumer loans and insurance through Big Bazaar outlets [pic] Big Bazaar is planning to have 300 hypermarkets in the country by 2010-11. inspires customer more than the traditional ways.. vegetables. so it’s better not to sell in polythene packs.. Costco..000 sq. before purchasing.000 crore by 2010-11. etc. after touching them.. Standard Big Bazaar with store area between 40. up from Rs. food. which will help drive down prices and boost margins.000 to 75.000 crore in the current fiscal year and have formulated . • For Indians.

after sales services. While formulating strategies we should keep in mind that strategies should be flexible. The Group expects to increase its revenues to $7-8 billion by 2011. This is helpful to change or revival of strategy. 13. It has emerged as the largest retail format of Future Group's retail division. of which Big Bazaar is expected to contribute a large chunk of around $4 billion. he said. seasonal discounts.from this it reveals that company is having young and energetic workforce who are very creative . so as to sustain in the market and to create a good reputation. Following are some additional strategies they require to adopt: • Thorough market research • Site selection and evaluation • Gaming zone and restaurant • Less premium and low price branded goods in merchandise assortment. The average size of a Big Bazaar hypermarket is 30. festival offers. The marketing strategy seems to be perfectly on track as the Big Bazaar hypermarkets had a footfall of 11 crore last fiscal and the company is aiming for an increase in the numbers up to 14 crore this year. For the expansion. Biyani said that the proposal is at a very initial stage and has to be taken to the board.000 sq ft to one lakh sq ft. guarantees and warrantees.000 crore by 2010-11 fiscal.enthusiastic and also very determined to grow in their career and in turn helping the company to grow The strategies of big bazaar are very efficient in bringing up the company. it is also very intending to build long term relationship with all its stakeholders which is very essential for a successful business venture • It is found that more than 60% of employees are of the age group of 20-35. Promotional activities like advertisement. etc. . it has built a very emotional and cordial relationship with its customers. besides Tier II cities & smaller cities. the company would be looking at both the metros and Tier I cities. Conclusion • Big bazaar is undoubtedly the number one retailer in India. They would also give stress on providing the prompt services like home delivery. “Currently we have more than 80 Big Bazaars and we are planning to scale it up to 160 by the year end”.plans for reaching a figure of Rs.

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