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Automobile Industry
With the changing economy of India, Automobile Industry in India also has taken a steep
curve of growth. Today automobile industry in India acts as the primary segment for
employment leading to economical stability. From the first car running in Mumbai’s street,
today Indian Automobile Industry has come a long way. Today Indian automobile industry is
coined as one of the world’s largest industry and at the same time fast growing. The
automobile industry serves a wide range of vehicles, like mass transportation to cars and
trucks etc.
Buses form a major section in automobile industry. With the advanced technology bus
industry has come a long way. Today bus is just not the means of transportation; it targets our
comfort level and status. With the economy reforms of India as the basis and also the increase
in commuter base foreign companies have started to invest in Indian bus industry. Volvo has
already set its mark in luxury bus sector of India. And the recent player in market is very well
For our study on market mix, we have considered the Volvo B7R and Mercedes Benz Citaro
make.
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2. Need & Want Analysis
The rapidly growing middle class in India has changed the transportation trend. Basic need of
transportation is defined in terms of reliability, comfort, safety and luxury. An ordinary city
bus has been replaced by a more comfortable, luxurious and safer bus. A reliable and robust
mass transit system is imminent in India. As the cities are developed in a way which requires
the corporate employees to travel a good deal of distance for their work, the need of these
The passengers are looking forward for the next level of luxury in terms of more advanced
technology and also safety. Few of them are a special women only buses, new wireless
interior facilities, an automated indication system for required bus stops, an automated system
for helping the passenger to take daily (or short term) bus passes. The last that we would like
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3. Volvo
The Volvo Group is a publicly held company headquartered in Gothenburg, Sweden. In 1999
Volvo divested of its car division to Ford Motor Company. Using some of the proceeds of the
sale, in 2001 Volvo acquired Mack and Renault Trucks becoming the largest producer of
heavy duty diesel engines in the world. The Group now holds leading positions in each of our
business areas which include heavy trucks, buses, construction equipment, marine and
Volvo buses have already made a mark as the world’s largest manufacturer of busses and bus
chassis. Volvo Buses comprises city buses, intercity buses and tourist coaches. In India
Bangalore was the first to introduce Volvo city buses, which in fact was a great success.
Product
Volvo B7R is promoted as a rear engine lightweight coach. Its good design, look and better
road presence has supported Volvo in its market share. It has a low floor access. The other
characteristics are cushioned seats, disc breaks that ensure passengers are not jerked forward,
electronic systems that provide vehicle data to the drivers, fully air-conditioned, complaint
with Euro – III environment norms, kneeling mechanism for the aged and physically
challenged, and wide pneumatically operated doors. The seating capacity is 40.
The riding comfort is provided by full air suspensions, which effectively compensates for
irregularities in the road surface and offers a high degree of ride comfort. Stabilizers are fitted
as standard on both the front and rear, minimizing the tendency to roll over.
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Price
Volvo B7R has entered the Indian Market with a price of 40 lakhs. This huge price when
compared to already existing models like, Ashok Leyland, in the segment is justified
considering the operating cost distribution. Keeping in mind the fuel efficiency of B7R the
fuel cost comes to 30 percent of the total operating cost while in other buses it comes around
40 – 45 percent.
Place
Volvo B7R is targeted for the cities of India. The first city to introduce B7R was the IT hub
Bangalore. Now B7R is covering a large area with all major cities in its list. In s very short
Initially Volvo B7R chassis are built by AZAD. After Volvo has started its own body plant in
India, Volvo is the only company whose complete manufacturing is done in India. The idea it
is to increase flexibility with regard to production capacity and to further improve quality.
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Promotion
As promotional activities Volvo organizes seminars quite frequently. One such seminar is the
Sustainable Mobility Indo – Swedish perspective which was held at Bangalore and Delhi.
Another example is Auto Expo 2008 organized in New Delhi. Volvo had a stall where it
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4. Mercedes Benz
Mercedes Benz is a German based company, very well known for its automobile
manufacturing. Mercedes Benz has positioned itself with its key measures of durability and
reliability. Mercedes has been manufacturing vehicles with advanced technology. Mercedes
Benz is the pioneer of featuring its vehicles with the Safety airbags, anti-lock brakes and the
traction control system, in the world. Mercedes Benz has entered Indian market with its
luxury bus recently. The body is built by Sutlej Motors, Jalandhar, however the coach is built
Product
The intercity bus has low floor for easy access. It has one passenger door with pneumatic
type. Passengers are given other facilities like the seat rear have magazine net, grab handle
and a bottle holder. It also provides speakers, AC control and lights for every passenger. It is
Also the Mercedes Benz Citaro has two models targeting for urban model and Suburban model.
Operators have the options of choosing between two different front stylings: the standard design
features an angled destination display and is primarily marketed for urban buses, while a version with
a one-piece windscreen covering the destination display also is available and is primarily intended for
interurban use. However, all models are available with either version.
Other customizations include the number and type of doors as well as the internal layout. Two
types of seats are offered as part of the standard range, again with a basic model for urban use
and an enhanced version for longer-distance routes, although both also are available on all
models. Aside from the usual diesel engines, the Citaro is also available with a powerful
Euro IV natural gas engine. All of the Mercedes-Benz Citaro engines deliver impressive
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pulling power, even at low engine speeds and when the bus is full, which is vital for pulling
Price
The Citaro is likely to be a little expensive for Indian market with a cost of 80 lakhs. The high
Place
The first customers of Mercedes Benz intercity buses in India are Sharma Transports from
Bangalore, Neeta Tours and Travels from Mumbai and Konduskar Travels from Kolhapur.
Mercedes Benz is focusing on cities like Mumbai, Pune, Ahmedabad, Goa, Bangalore,
Pune -BUB
Promotion
Mercedes-Benz has been associated with India for more than 50 years. Presently, Mercedes-Benz
India’s engagement in India covers several domains starting from cars to buses and trucks. With the
present brand image of Mercedes Benz, the intercity bus Citaro is launched into the Indian bus
segment. Also Mercedes Benz is involved in some oriented programs across India, such as Bio fuel
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from Jatropha, Road safety project for children, automotive education etc. Mercedes Benz quotes
Both Volvo B7R and the Mercedes Benz Citaro are at par for their features, facilities
available. Hence the comparison between them is narrowed down to only price and
promotion basis. Also as Mercedes Benz is in its budding stage in Indian Bus segment the
area coverage is less when compared to Volvo B7R. We have listed down few of the
differences below.
1. Place: Volvo has an extensive network of its sales and service centres.
2. Price: The Volvo B7R has a lower price, of 40 lakhs, when compared to the 80 lakhs price
3. Product:
a. Mercedes Benz Citaro leads in the advanced technology facilities against Volvo B7R.
b. The seats arranged in Mercedes Benz are more flexible than Volvo B7R.
c. Mercedes Benz Citaro is hybrid, in its engine made for the usual diesel fuel and also
natural gas.
4. Promotion:
Volvo B7R reaches its customer in India with the help of its promotional activities like
conducting seminars. However Mercedes Benz Citaro has used present market image of
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6. Recommendations
From my analysis on marketing mix of both Volvo B7R and Mercedes Benz Citaro, it’s seen
that Mercedes Benz is new to Indian Bus segment. Where in Volvo has taken the advantage of
being the first player in the market and captured a good image in the market. This gives
Mercedes Benz a tough competition. For this purpose Mercedes Benz should look into
increasing their sales and service centres throughout India. Easy access to information and
The other side of marketing is Promotional activities. Mercedes Benz in its initial stage in bus
segment in India should uplift its promotional activities. This would help in attracting
customers from not only few Governmental and travel agencies of major cities, but also a
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7. Bibliography
http://business.mapsofindia.com/india-industry/bus.html/2010-12-04.
http://www.businessworld.in/bw/2010_01_06_MercedesBenz_Luxury_Bus.html/2010
-12-07.
http://autonews.indiacar.com/news/n2409.htm/2010-12-07
http://www.thefreelibrary.com/Volvo+Inaugurates+New+Bus+Plant+in+India.-
a0174051536/2010-12-06
http://www.motorindiaonline.com/2010/02/mercedes-benz-offers-next-
generation.html/2010-12-07
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