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RoleofCountryofOrigininProductEvaluations(PBMAssignment)

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The car industry in India is chosen for studying consumer perception of global brands vs. local brands for the simple reason being the strong growth of the automobile sector in India. The car segment is specifically chosen as it is highly competitive with wellestablished and flourishing globalandlocalbrands. IndianautomobileindustryanOverview Indiaisemergingasoneofthemostattractiveautomotivemarketsintheworld,andispoisedto become a key sourcing base for auto components. The Indian automotive sector has a presence acrossallvehiclesegmentsandkeycomponents.Intermsofvolume,twowheelersdominatethe sector,withnearly80percentshare,followedbypassengervehicleswith13percent.Passenger vehicles consist of passenger cars and utility vehicles. The industry had few players and was protectedfromglobalcompetitiontillthe1990s.Aftergovernmentliftedlicensingin1993,17new ventures have come up. At present, there are 12 manufacturers of passenger cars, 5 manufacturersofmultiutilityvehicles(MUVs),9manufacturersofcommercialvehicles,12oftwo wheelersand4ofthreewheelers,besides5manufacturersofengines.Withthearrivalofglobal players,thesectorhasbecomehighlycompetitive ThegrowthcurveofIndianautomobileindustryhasbeenonanupswingforthepastfewyears.It isthe4thlargestpassengervehiclemarketinAsiaandhasbecomethefastestgrowingcarmarket intheworldin2004,withagrowthrateof20percent. Continuingtheupswing,thesectorpostedanimpressive8.9percentgrowthin200506,saysthe Economic Survey 200506. The latest announcement by the Government to cut excise duty on small cars will soon see India emerging as the world's largest manufacturing hub for small or compactcars. Indian automobile companies are moving aggressively into foreign markets. As a good example, TataMotorsLtd.,whichisoneofthelargestprivatesectorcommenceditsdistributionofFiatcars across India as part of the new TataFiat dealer network, is also looking at tapping overseas marketsthroughthepartnership. Thecompanyisgearinguptorelaunchitsbestsellingpassengercar,Indica,intheUnitedKingdom under its own brand. Indica had made its debut on the British roads about two years ago as City Rover under Tata Motors' tieup with the Birmingham based MG Rover (IBEF, 2006). With few suchmovementshappeningtremendously,itwouldntbetoolongforIndiatohaveitsbrandson theinternationalroads. Indian automobile companies are moving aggressively into foreign markets. As a good example, TataMotorsLtd.,whichisoneofthelargestprivatesectorcommenceditsdistributionofFiatcars across India as part of the new TataFiat dealer network, is also looking at tapping overseas marketsthroughthepartnership.Thecompanyisgearinguptorelaunchitsbestsellingpassenger car,Indica,intheUnitedKingdomunderitsown brand.Indicahad made itsdebutontheBritish
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roads about two years ago as City Rover under Tata Motors' tieup with the Birmingham based MG Rover (IBEF, 2006). With few such movements happening tremendously, it wouldnt be too longforIndiatohaveitsbrandsontheinternationalroads.

Thus the Indian automobile industry has been performing well both in the domestic and the internationalmarkets. AccordingtoIBEF(IndiaBrandEquityFoundation),Indiahasseveralcompetitiveadvantagesinthe automobile sector and they can be explained as following; India has a growing workforce that is Englishspeaking, highly skilled and trained in designing and machining skills required by the automotive and engineering industries. Many Indian and global players are leveraging this advantagebyincreasinglyoutsourcingactivitieslikedesignandR&DtotheirIndianarms. India offers a huge growth opportunity for the automobile sector the domestic market is large and has the potential to grow further in the future due to positive demographic trends and the currentlowpenetrationlevels.Indiahasnearly23percentoftheglobalpopulationandisoneof the most attractive consumer markets in the world today. Income levels across population
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segmentshavebeengrowinginIndia.AccordingtoNationalCouncilofAppliedEconomicResearch (NCAER)data,theconsumingclass,withanannualincomeofUS$980orabove,isgrowingandis expectedtoconstituteover80percentofthepopulationby200910(IBEF,2006). Inaddition,alargeproportionoftheIndianpopulationisrelativelyyoungintheagegroupof20 59 years. This is expected to further boost the automotive domestic market as a younger population has a higher consumption index. The rise in income levels of the Indians and the emergenceoftheconsumingclassthathashigherpropensitytospendoffersgreatopportunities forgrowthtocompaniesacrossvarious sectors. Furthermore,ConsumersinIndia arenowmore informed, sophisticated and demanding. Urban consumers have been especially exposed to western lifestyles through overseas travel. For example, more than 5 million Indians traveled overseas last year and this number is expected to increase by 15 per cent to 20 per cent per annum. An increase in the number of working women and the prevalence of nuclear double incomefamilies,especiallyinurbanareas,areothertrendsshapinglifestyles According to IBEF, large infrastructure development projects underway in India combined with favorable government policies will also drive automotive growth in the next few years. Easy availabilityoffinanceandmoderatecostoffinancingfacilitatedbydoubleincomefamilieswillalso increaseconsumption. The advent of cars in India dates back to 1898 when the first motorcar rode down Indias roads. FromthentilltheFirstWorldWar,about4,000carsweredirectlyimportedtoIndiafromforeign manufacturers. During 1948, the first car was manufactured in India. In 1993, with the winds of liberalizationsweepingtheIndiancarmarket,manymultinationalslikeDaewoo,Peugeot,general Motors, Mercedes Benz and Fiat came into the Indian car market. Since the 80s, the Indian car Industry has seen a major resurgence with the opening up of Indian shores to foreign manufacturersandcollaborators.The90sbecamethemeltingpointforthecarindustryinIndia. Theconsumerbeingtheking,wasconstantlywooedbyboththe Indianandforeignmanufacturers.Thoughsaleshadtakenadipinthefirstfewmonthsof1999,it isbacktoboomtime.Highendmodelsarebeinglaunchedrapidlyandareflourishing. Asalreadysaid,Indianautomobileindustryishighlycompetitivewithalargenumberofplayersin each industry segment. Most of the global majors are present in the passenger vehicle and two wheelersegments.ThekeyplayersinpassengervehiclessegmentinIndiaareTataMotors,Maruti Udyog,HondaMotors,HyundaiMotors, Toyota,Skoda,DaimlerChrysler,andHindustanMotors.Mercedes,BMW,Porsche,Audi,Bentley andRollsRoycearealreadyhere.BriefdescriptionsofbothlocalandglobalcarbrandsinIndiaare presentedbelowtoenhancethecomprehensionofthestudy.LocalcarbrandsinIndiaareinitially describedbeforepursuingtoglobalcarbrands.
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LocalCarBrandsinIndia ThelocalcarbrandsfoundinIndiaare;MarutiUdyogLimitedisthepremiercarcompanyinIndia. MarutiUdyogLimited(MUL)wasestablishedinFeb1981.Thecompanyenteredintocollaboration with Suzuki Motor Corporation of Japan to manufacture cars. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea. Despite there being 11 companies now in the passenger car market in India, Maruti holds about 60% of the total market share. Maruti Udyog LimitedhasmanyuniqueServiceadvantagesforthecustomers.IthasbaggedtheFirstPositionin JDPowerCustomerSatisfactionIndexfortheconsecutivetwoyears.Thecompanyhasalsoranked highestintheIndiaSalesSatisfactionStudy.ThemodelsofMarutiUdyogLimitedcarsareMaruti 800, Maruti Alto, Maruti Zen, Maruti Zen Classic, Maruti Esteem, Maruti Gypsy, Omni, Wagon R, Versa,Baleno,SwiftandGrandVitara. HindustanMotorsLimited(HML)isIndia'srenownedautomobilemanufacturingcompany.In1942 this company was introduced in India by Mr. B.M. Birla of Birla family (India's largest business groups).Sincethen,ithasbecomeavastcompany,manufacturingcarslikeAmbassador,Contessa, andincollaborationwithMitsubishiofJapannowmanufacturesthenewMitsubishiLancer TataMotorsLimitedisIndia'slargestautomobile company,withlargerevenues.Itsnamecomes firstinthecategoryofcommercialvehiclesandthesecondlargestinthepassengervehicles,mid size car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercialvehiclemanufacturer.Over3.5millionTatavehiclesaremovingonIndianroads,since 1954. The models of the company are Tata Indigo, Tata Indica, Tata Sumo, Tata Safari and Tata IndigoMarina.

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GlobalCarBrandsinIndia

Apartfromlocalcarbrands,theglobalcarbrandspresentinIndiaare;HyundaiMotorIndiaLimited (HMIL) was established in 1996 and is a wholly owned subsidiary of South Korean multinational, HyundaiMotorCompany.HMIListhefastestgrowingandthesecondlargestcarmanufacturerin Indiaandpresentlyselling30variantsofpassengercarsinsixsegments.TheCompanyhassetup more than 70 dealer workshops that are equipped with the latest technology, machinery, and internationalqualitypress,bodyandpaintshops,acrossthecountry,therebyprovidingaonestop shopforaHyundaicustomer.Hyundaialsohasafleetof78emergencyroadservicecarsthatcan provide emergency service to all its customers anytime, anywhere. The models of Hyundai are Santro, Getz, Accent, Elantra, Sonata, Tucson, Terracan. The awaited models of Hyundai Motors are Verna, Getz next generation and Santa Fe. Honda Siel Cars India Ltd., (HSCI) was set up in December 1995 as a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited to manufacture passenger cars in India. The company has brought about three models in India Honda City, Honda Accord, and Honda CRV. Its first model was launched in 1997. Very recently Honda Siel Cars has launched one more market friendly model, Honda Civic on 9th July 2006 in India. ToyotaMotorCorporationisthepremiumvehiclemanufacturerintheworld.BasedinJapan,the company manufactured its first vehicle in 1936. Toyota exported its first Japanesemade
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passengercartotheUnitedStatesin1957.TodayToyotahasglobalpresenceandToyotabranded vehicles rank among the world's highest quality cars. In India Toyota Motor Corporation has entered into a joint venture with Kirloskar Group and the new entity is called Toyota Kirloskar MotorPrivateLimited(TKM).ThecompanyaimstoplayamajorroleinthedevelopmentofIndian automotiveindustry.DaewooMotorsisaSouthKoreancompany.GeneralMotorstookdecision totakeupDaewooMotorstoformGMDaewoo.ThisbrandenteredtheIndianmarketduringthe year2002withitsmodelssuchasDaewooMatiz,DaewooCielo,andDaewooNexia FordMotorCompanyistheworld'ssecondlargestautomaker.Thecompany'sworldheadquarters is in Dearborn, Michigan. Its automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln,Mazda,MercuryandVolvo.ThebrandsonIndianroadsincludeFordIcon,FordMondeo, Ford Fiesta, Ford Fusion, Ford Escort and Ford Endeavor. The company is also waiting for Ford FocustobelaunchedinIndiaShortlyFiat,amakefromItalysteppedinIndiaduringtheyear1905 and later on joined hands with Premium Automobiles which was a private company in India. GeneralMotorsCorporationwasfoundedin1908andistheworld'slargestvehiclemanufacturer. General Motors enlisted its name for making outstanding future performance in the field of automobile industry in India from the year 1994. The models of General motors in India are ChevroletAveo,ChevroletOptraandChevroletTavera,OpelAstraandOpelCorsa. GermanbasedcompanyAudihasspreadeditswingsofsuccessinthefieldofautomobileindustry foritstechnicalexpertiseandcreativity.AudihasalreadystartedleavingitsfootprintinIndiafrom July2004.AudihaslauncheditsbiggermodelsA6andA8intheIndianmarket. BMW(BayerischeMotorenWerke) was founded on March 7, 1916 and is now one of the major automobile manufacturers in the international market. Its major brands include BMW, MINI and RollsRoyce Motor Cars. Although its cars are on Indian roads, it has been announced that 2007 willbetheyearwhenBMWwillstartmanufacturingandsellingcarsinIndia. Czech Republic based Skoda Auto Company is one of the popular brand name in the field of automobile industry. It is a part of the international Volkswagen Group. Skoda Auto introduced itself in Indian market in November 2001. The models of Skoda cars on Indian roads are Skoda Octavia,SkodaSuperbandSkodaLaura.TheawaitedmodelsareSkodaFabiaandRoomster DaimlerChryslerenteredtheIndianmarketandsetupMercedesBenzIndiaLtd.during1994with theaimtoservethecustomersinIndiawiththelatestproductsandtechnologicalexcellencefrom theMercedesBenzRollsRoyceMotorCarswasintroducedbyFrederickHenryRoyceandCharles StewartRollsonMay4,1904.RollsRoycemodel,PhantomisalreadyintheroadsofIndia.

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PorschewasestablishedbyFerdinandPorsche.In1931,FerdinandPorschefoundedthePorsche Engineering Office in Stuttgart. Porsche started leaving its footprint in the market of luxury and utilityvehicleinIndiafrom2003.

UNITEDSTATES&CANADA:

THE BIG THREE: AUTOMOBILE MANUFACTURES General Motors, Ford, and Chrysler are often referredtoasthe"BigThree"or,morerecentlythe"DetroitThree",beingthelargestautomakers intheUnitedStatesandCanada.Theywereforawhilethelargestintheworldandtwoofthem arestillamainstayinthetopfive.Fordhasheldthepositionofsecondrankedautomakerforthe past56years,beingrelegatedtothirdinNorthAmericansales,afterbeingovertakenbyToyotain 2007. That year, Toyota produced more vehicles than GM, though GM still outsold Toyota that year,givingGM77consecutivecalendaryearsoftopsales.Forthefirstquarterof2008,however, Toyota overtook GM in sales as well. In the North American market, the Detroit automakers retained the top three spots, though their market share is dwindling. Honda passed Chrysler for the fourth spot in 2008 US sales. Since then, because of Toyota's woes with their recent unintendedaccelerationrecall,Toyotahasfallenbacktofourthplaceinsales,withHondatrailing infifthplace,allowingtheDetroitThreereclaimtheirBigThreetitle.
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TheBigThreearealsodistinguishednotjustbytheirsizeandgeography,butalsobytheirbusiness model. The majority of their operations are unionized (United Auto Workers and Canadian Auto Workers),resultinginhigherlaborcoststhanothermultinationalautomakers,includingthosewith plants in North America. The 2005 Harbour Report estimated that Toyota's lead in labour productivity amounted to a cost advantage of $350 US to $500 US per vehicle over American manufacturers.TheUAWagreedtoatwotierwageinrecent2007negotiations,somethingwhich the CAW has so far refused. Delphi, which was spun off from GM in 1999, filed for Chapter 11 bankruptcy after the UAW refused to cut their wages and GM is expected to be liable for a $7 billionshortfall. JAPAN: JapaneseautomakersToyota,Nissan,andHonda,amongmanyothers,havelongbeenconsidered theleadersatproducingsmaller,fuelefficientcars.Theirvehicleswerebroughttotheforefront, duetothe1973oilcrisiswhichhadamajorimpactontheautoindustry.Forinstance,theHonda CivicwasconsideredsuperiortoAmericancompetitorssuchastheChevroletVegaandFordPinto. TheCivicisthebestsellingcarinCanadafor12yearsinarow. Aswell,theNissan240Zwasintroducedatarelativelylowpricecomparedtootherforeignsports cars of the time (Jaguar, BMW, Porsche, etc.),while providing performance, reliability, and good looks.ThisbroadenedtheimageofJapanesecarmakersbeyondtheireconoboxsuccesses,aswell asbeingcreditedasacatalystfortheimportperformancepartsindustry. Before Honda unveiled Acura in 1986, Japanese automobiles exports were primarily economical indesignandlargelytargetedatlowcostconsumers.TheJapanesebigthreecreatedtheirluxury marques to challenge the established brands. Following Honda's lead, Toyota launched the Lexus name with the LS 400 which debuted at $38,000 in the U.S. (in some markets being pricedagainstmidsizedsixcylinderMercedesBenzandBMWmodels),andwasratedbyCarand Driver magazine as better than both the $63,000 MercedesBenz W126 and the $55,000 BMW E32intermsofride,handlingandperformance.Itwasgenerallyregardedasamajorshocktothe European marques; BMW and MercedesBenz's U.S. sales figures dropped 29% and 19%, respectively,withthethenBMWchairmanEberhardvonKuenheimaccusingLexusofdumpingin that market. Nissan's Infiniti became a player on the luxury market mostly thanks to its popular Q45. The vehicle included a classleading (at the time) 278 hp (207 kW) V8 engine, four wheel steering, the first active suspension system offered on a motor vehicle, and numerous interior luxury appointments. These made it competitive against the German imports like Audi, BMW and MercedesBenz, which by the time of Infiniti's release had overtakenCadillacandLincolnindominatingtheluxurysegmentoftheAmericanmarket.In1990, four years after the debut of the Legend and Integra, Acura introduced the NSX, a midship V6 powered, and rearwheeldrive sports car. The NSX, an acronym for "New Sports experimental", was billed as the first Japanese car capable of competing with Ferrari and Porsche. This vehicle served as a halo car for the Acura brand. The NSX was the world's first allaluminum production
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car, and was also marketed and viewed by some as the "Everyday Supercar" thanks in part to its easeofuse,qualityandreliability,traitsthatwereunheardofinthesupercarsegmentatthetime. GERMANY The German trio Audi, MercedesBenz and BMW are often referred to as "Germany's Big Three", although the actual major automobile manufacturers are the Volkswagen Group(producerofAudi),DaimlerAG(producerofMercedesBenz),andBMW. VolkswagenGrouphaslongbeenthelargestautomakerinEurope.Asof2007itedgedoutFordto rank third in the world after General Motors and Toyota. It is also the parent group ofAudi,Porsche,SEAT,koda,Bugatti,LamborghiniandBentley. DaimlerAGholdsmajorstakesinotherautomakersincludingMitsubishiFuso. BMW also produces MINI branded vehicles, and has been the parent company of RollsRoyce MotorCarssince1998. BMW,MercedesBenzandAudimakeupabout86%oftheluxurymidsizemarket. FORDECOSPORTS:THEGAMECHANGERFORFORDS Ford EcoSport: A Game changer for Ford India Pvt. Limited and Indian Automotive Industry. Americanautoking,FordrecentlylaunchedEcoSporttoincreasetheirmarketshareanddecrease the debts of Indian market. With a competitors in every segment, because EcoSport is not into one single segment as it caters many like in terms of price we can compare Ecosport with Swift Dzire of Maruti Suzuki which is a sedan, highest model of Polo (Volkswagen) which actually a hatchback,HondaAmazewhichiscombinationofhatchbackandsedan.EcoSportispositionedas SUVinIndiasosegmentwiseitscompetitorsareDusterofRenault,XUV500ofMahindra,Scorpio ofMahindraandErtigaofMarutiSuzuki.HenceFordistryingtotapallthesegmentsthroughthis low cost so called SUV. Ford invested around USD $142 million in Chennai plant for the manufacturing of Ford EcoSport to reduce the cost in terms of tax, outsource and import of materialbecausetheyaregettingmostofthematerialfromlocalsupplieritselfandtheyarealso following Child Parts Strategy to maintain this low cost of ownership vision. Ford EcoSport changed the whole game of Indian automotive industry in past 4 months after the launch as the waiting time reaches to highest point of 9 month for any car in India with30,000 booking in just 17 days of launch in the time where other players running for every single customer because of crises.ChangeofstrategyandunderstandingofbasicsofIndianmarketworksforFordthistime. ButtherecallmadebyFord(around970dieselvariants)becauseofabigtechnicalglitchmadea blackmarkontheEcoSportscustomeralongwiththelongwaitingtime.Thiswillhamperthecall of Indian customer to EcoSport or will cause a noncreating positive for Fords EcoSport to gain
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morepublicityamongallregardingthephraseYeswecareforyou,whichwillbeaninteresting lookoutforus. ThegradualsurgeinthefuelpriceshasmadetheIndiancarenthusiastsandotherpeopleseean entirely fresh trend. The lucrative Indian car market that was out and out, bent more towards hatchbacks and sedans to a certain extent, is now changing trends and falling towards the UV (utilityvehicle)segment.Thereasonforthisshiftiscitedwiththefactthatbesides,offeringdecent space for your daily trips, the UVs are also useful for longer journeys, thereby saving fuel7.The automobile manufacturers automatically started looking to enhance their portfolios for the growing Indian market with their respective manufactured utility vehicles. The American auto major,FordisalsonotbehindinthisprevalenttrendwiththeintroductionofFordEcoSport,which wasthemostanticipatedlaunchoftheyear.TheSUVhastakenan18monthgestationperiodto get it Indianized, for the company was aggressively testing the EcoSport in the country and the onethathasbeenlaunchedisalmost70%locallymanufactured8. TheadvantageoflocalizingtheEcoSportisthatthepricingoftheSUVcanbesetaggressively.This SUV was first put on display for the public eye, at the 2012 Automobile Expo held in Delhi, and unlikemanyothervehiclesthatgothroughtheprocessofdevelopmentalchangeslikethechange avatarsthatis,fromalargerthanlifevisualonboard,tothenotcheddownclaymodels,andthen, to the more realistic production versions, the charming Ford EcoSport seemed to have skipped the steps entailed in the Change Avatar process and straightaway headed into the production linefromthedrawingboard9.TheUSautomajorFord,launcheditsmuchawaitedcompactsports utility vehicle (SUV), EcoSport on 26th June, 2013 in India with a price tag of Rs. 5.59 Lakh (ex showroomDelhi)10.Themodelisavailableinthefollowingvariants: Version11litrepetrolwithEcoboosttechnologyatRs.7.90Lakh Version21.5litrepetrolatRs.5.59Lakh Version31.5litredieselatRs.6.69Lakh Version41.5litrepetrolwithautomatictransmissionatRs.8.45Lakh Ford EcoSport has been developed specially to cater those customers who want a compact SUV withinabudgetof510lakhrupees.ItisthebestlookingSportUtilityVehicleinitssegment.Ford EcoSport follows the Ford's latest design theme featuring huge front bumper and peeledback head lights with a sporty rearend. Ford EcoSport is powered by the award winning 1.0 litre EcoBoostengine,whichisknownforitsexcellentmileageandreliability. FordhasclearlystatedthatEcoSportisasub4metercarwhichmeansshorterthanmanyofthe hatches. Give it a look and its hard to believe if its actually that short. The design of this car is exceptional. The people at Auto Expo couldnt believe if they are going to see this car plying on
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Indian roads. We have never seen a compact SUV as dazzling as EcoSport in India. Turn once, twice,thricearounditandyoujustcantstopwonderinghowuniquethiscaris.Thereisnodoubt thatFordhastriedtobringalltheSUVcharacteristicstothiscar.ThisfiveseatedSUVstandshigh andtall.Itlooksextremelyaggressivefromitsfront.Ithasamassivefrontbumpersportingahuge threelayeredairdam.Itspartlyblackincolorsothatitlookslessbulky. Ford India has invested $142 million at its Chennai plant to manufacture the EcoSport. The Companyisalsoinvestinganamountof1billiondollarstosetupitssecondproductionfacilityat SanandinGujaratandisexpectedtobeoperationalby2014.Withthesetwoplants,theCompany will have an output capacity of 2.4 Lakh vehicles and 2.7 Lakh engines annually14. At the launch of the EcoSport, top Ford officials said that a multisegment spread was part of the EcoSport's marketingandpositioningstrategy."TheEcoSportisauniquepropositionandwehavetokeepin mind what the Indian customer wants in terms of both the product features as well as the price positioning," said Ford India president & MD Joginder Singh. "For us, it's a new segment and the pricingwillhelpdrawcustomersfromabroadrangeofproductssedans,hatchbacks,smallSUVs and even those who already have a bigger SUV and want to settle for a vehicle this size." At Rs 7.89 lakh for the higher end petrol and Rs 8.44 lakh for the automatic transmission, the priciest EcoSport variants are positioned alongside the Renault Duster's entry level models. Analysts say theEcoSportcouldalsoredefinethecompactSUVsegmentintoapositionthatoverlapsboththe sedanaswellastheSUV.Itcouldalsotriggeroffadiscountwarinthemarketplaceasrivalbrands offer fresh benefits to counter the pull of a newly launched vehicle. Although not too many companies would have the stomach for an allout price war at a time when the sentiment is sluggishandtherupeeisslidingsharply,discountsandaddedbenefitswouldcertainlybeonthe riseastheautoindustrydrivesintothefestivalseason. Ford India has invested $142 million at its Chennai plant to manufacture the EcoSport. The Companyisalsoinvestinganamountof1billiondollarstosetupitssecondproductionfacilityat SanandinGujaratandisexpectedtobeoperationalby2014.Withthesetwoplants,theCompany willhaveanoutputcapacityof2.4Lakhvehiclesand2.7Lakhenginesannually FORDMOTORCOMPANY OperatesinautomobileindustrywhichisimpactedbytheGDP,Inflation,andUnemploymentrate. Theindustryisimpactedby,andhasanimpactontheGDP,theunemploymentrate,theinterest andtheinflationrate.Backin2003,Fordvirtuallycreatedthecompact,frontwheeldrivecitySUV segmentinBrazil,lobbingthenewEcoSportintotheringtocompetewithsmallutilitymodelswith rearorallwheeldrive,liketheSuzukiJimnyandlocallyassembledMitsubishiPajeroTR4[Shogun PinininEurope],bothheaviermodelsmoreoffroadfocused.Latelastyear,Renaultlaunchedthe locallybuilt Duster, which finally tipped the EcoSport off its segment leading perch. But, from launchon31December,chancesaretheredesignedEcoSportwillreclaimFord'scrown.20Factors likeMarketprices,oilchargesandcostlessbusinesscontinuewhichaccessthecustomertodevote
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on the automobile. Derived dominion adjustment and technological assistance among nations helpingthefordIndiainboostingtheendowmentandconstructingthemodernstandardswhich can encounter with the present outline. Commencement of new organization constitution influences the ford to advance its standing orders which are essential for assembling a valuable transport. One of the reason because of which ford was able to price its cars so low was that it paidattentiontothecurrentIndianeconomicsituation(constantrupeefallandrisinginflation)& adoptedastrategyofmanufacturing70%ofitscarlocallyasaresultitwasabletobargainonits price.21 Thecomparisonswithotherleadingplayersprovestheabovemotionedstrategywasbeneficial: FordEcoSportv/sMahindraQuanto People opting for the C6 or C8 variant of the Quanto are verylikelytooptforthebaseEcoSportdieselwhichcomesinatacheaperprice.TheQuantostop variants are priced at Rs. 8.06 lakhs and 8.64 lakhs, while the diesel EcoSport Ambiente is priced atRs.7.93lakhsandtheTrendvariantispricedatRs.9.01lakhs. FordEcoSportv/sPremierRiO First mover advantage doesnt necessarily work always. Case in pointistheRiO,whichalthoughthefirstcompactSUVinIndia,isquitehorriblewhenitcomesto dynamicsandquality.ThepetrolengineontheRiOisbelowaverageandtheonlysavinggraceis Fiats Multijet diesel engine in the RiO which is priced at Rs. 7.94 lakhs. The base EcoSport is Rs. 10000/cheaperandmuchbetterintermsofqualityanddynamics. FordEcoSportv/sMarutiDZire The DZire has had a dream run till now but the EcoSport might spoilitsparty.TheDZireZXicostsRs.6000/morethanthe1.5litrepetrolEcoSportTrendvariant. ThetopendDZireispricedatRs.9.03lakhs,Rs.2000/morethanthedieselEcoSportTrend. FordEcoSportv/sMarutiErtigaTheZXivariantoftheErtigaispricedatRs.8.96lakhs,whilethe 1.5litrepetrolEcoSportTitaniumispricedatRs.8.88lakhs.ThetopenddieselErtigaZDiispriced atRs.10.64lakhswhilethetopendEcoSportTitanium(O)ispricedatRs.10.66lakhs.Wegetway more features in the EcoSport, although the Ertiga offers you 7seats and there is a CNG option too. FordEcoSportv/sRenaultDuster Ford has created absolute havoc for Renault. The Duster has been overpriced since day one and multiple price hikes have only made the overpriced Duster evenmoreoverpriced.ThebaseDusterispricedatRs.9.05lakhswhilethebaseEcoSportispriced atRs.6.63lakhsthatisadifferenceofRs.2.42lakhs.ThebaseDusterdieselispricedatRs.10.06 lakhs while the base EcoSport diesel comes in at Rs. 7.93 lakhs, a difference of 2.13 lakhs! If we compare the topend Duster 85 PS diesel (priced at Rs. 12.73 lakhs) with the topend EcoSport diesel, we will see the price difference between them is Rs. 2.07 lakhs. Comparing the topend EcoSport diesel with the topend Duster 110 PS RxZ (Opt) shows a whooping price difference of Rs. 3.49 lakhs. Yes, the topend Duster costs Rs. 14.15 lakhs. Renault really needs a French revolutionnow.

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CustomizationforINDIAMarkets:Also Ford has not only been juggling with many models, but its productshavealwaysbeenyouthcentric.ConsideringIndiawheremorethan50%ofpopulation isyouthFordEcoSportpaidalotofattentionondesigningandgivingitamenacingandjazzyurban youth look which will surely attract Indian young population to this fuel efficient car hence the launchoffordEcoSportin57lakhsegment.Toturnprofitable,a(car)companyneedstoobtain a minimum volume of a specific model. For models in the Rs 57.5 lakh range, a company needs tosellatleast3,000unitsamonthtobreakeven,and6,000unitsamonthforproductsintheRs 35 lakh price range. And ford EcoSport had received 30000 bookings in the month of its launch itself.Ithasalwaysbeenhighonintroducingnewandinnovativetechnologicaladvancementinits models. The engine in EcoSport is an allalloy, 'Sigma', 97.6 cu inch/1.6litre flex fuel unit developing 113bhp on 100% ethanol. That, along with new highstrength steel in the bodywork, kept the average modelformodel weight rise down to 88lb/40kg despite considerably more standardequipment.Fordclaimsbetterfuelefficiencywiththisengine6.UsingthenewFiestas architecture also allowed Ford to specify safetyrelated upgrades such as antilock brakes and driverandpassengerairbagsplus,inupscaleversions,sideandcurtainairbagsandstabilityand tractioncontrol.ThenEcoSportisalsorenderedwithESP(electronicBrakeProgram),rearparking sensors, a hill start assist and added new features like SYNC, which alerts the emergency service automaticallyincaseofhazardoussituationetc.Allthesequalitiesmakethiscaraperfectonefor thecustomersofIndiaanddefinitelythemostadmiredoneinitssegment.Basicversionsareno longer offered by ford. Visteon designed and is manufacturing key heating, ventilation and air conditioning (HVAC) components for the Ford Ecosport launched recently in Brazil and destined forglobalsale. Parts supplied by Visteon for the Ecosport include a compact, centremounted HVAC system; compressor; condenser with integrated receiver dryer; and air conditioning lines with 'zero leak' metal seal fittings. The air conditioning system is among the first to apply a 45mm 'tubefin' evaporatorconstructionformaximumperformanceintransferringheatoutofthecabin. RedOceanandBlueOceanStrategy Blue Ocean Strategy assists us during strategic planning. It enables us to concentrate on the creationofnewmarketsvianewofferings,withtheaimbeingtomakethecompetitionirrelevant sothatanorganizationcangrow.Suchastrategythereforeallowsfirmstolargelyplayanonzero sumgame,withhighpayoffpossibilities. TheFordEcosportisquitesimplythemostimportantproductfortheAmericancarmakerinIndia duetotwofactors: 1) Ford needs a bestselling product to take the place of the Figo, which is becoming a dated offering. 2)TheSUVsegmentisoneoftheoutliersintheIndiancarmarket,showinghighgrowthatatime whencarsalesinIndiaaregoingtowardsslowdown.So,theEcoSportdoeshavealotridingonit. In a price sensitive market such as India, a sharply priced car has all the trappings of becoming a
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successrightfromthewordgo.AndFordIndias intenttopricetheEcoSportcompetitivelyhave beenevidentforquiteawhilenow. Ford,beforetheEcoSport,wassellingonlyoneSUVinIndia,theEndeavor.ButtheEcoSportcould makethedifference.ItislaunchinginIndiaonthebackofstrongdemandshifttowardstheSUVs. Sales have somewhat slowed in the last couple of months, especially due to the additional 3 percentexcisedutyimposedonSUVsintheUnionBudget. RedOceansStrategy,alreadycontainanumberofcompetitors.ARedOceanStrategyisastrategy whichisaimstofightandbeatthecompetition.Theyfocusoncompetinginamarketplacewhich alreadyexists.Theyfocusonbeatingthecompetition. While localization is one strategy, the other strategy that Ford could adopt in order to price the EcoSportcompetitivelyisthatofbettingbigonvolumes.Fordissaidto planningto buildno less than150,000EcoSportsinIndia.Thehugevolumes,atleastbyFordIndiasstandards,backedby high localization of parts, are expected to give the car maker better negotiating ability with vendors supplying parts for the EcoSport. These factors, along with the excise duty benefit the EcoSport stands to get from the Indian government due to the cars sub4 meter length, is expected to be instrumental in allowing Ford to achieve the sub6 lakh rupee price tag for the entrylevelvariant. The EcoSport at a sub6 lakh rupee price tag is something that is quite apt for the car. The Eco Sports compact dimensions mean that car buyers will tend to compare the EcoSport with B+ segment hatchbacks and entry level compact SUVs such as the Premier Rio and the Mahindra Quanto.So,asub6lakh rupeepricetagseemsjustwhatthedoctororderedforFordtoachieve bignumbersforthecrossover. FinancialAnalysisofFordIndiaPrivateLimited FinanciallyFordEcosportishelpingFordalottorecoverthelosseswhichoccurredinpast.Hereis someofthefinancialanalysisofFordIndiaPrivateLimitedbeforeandafterthelaunchofEcoSport. WhenwelookatpasttrendofsalesoffordIndia,compoundedannualgrowthrateof34%isshown in sales and if we look at expenses they are contributing around 96% of sales, which is affecting thenetprofit.Fromlast5yearscompanynetprofitisnegative,inordertoimprovethiscompany is planning for new models and extension of capacity for future. Company is coming with new plantissanandand8newmodelsinadecadewhichwillhelpcompanyinincreasingmarketshare andmakingnewprofits.
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Ifwelookatgrowthofautomobilesector,sectorisgrowingwithaverageof14%,sowecanmake analysisthatcompanyisgoingtoshowconstantgrowthof14%infuture. Year 2008 2009 2010 2011 2012 NetSales 2068.89 1754.32 2144.38 5636.50 6604.18 SalesTrend 7.63 7.47 7.67 8.64 8.80 Slope 0.34885631 Expenses 2366.62 2119.18 2547.23 5428.89 6399.93 Profit 37.74 76.80 209.31 107.50 140.03 If we look at July 2013 figures, facts and news of ford, company is showing positive results with newmodeloffordEcosport. Ford India reported 48.23 per cent increase in total sales in July this year at 12,338 units on the backofnewlylaunchedcompactsportsutilityvehicleEcoSport3.TheCompanyhadsoldatotalof 8,323unitsinthesamemonthlastyear,FordIndiasaidinastatement.Domesticsalesalsowent upby26.15percentto7,867unitsinJulythisyearasagainst6,236unitsinthesamemonthlast year,itadded.Thecompanyexported4,471unitslastmonthcomparedto2,087unitsintheyear agoperiod,ajumpofovertwofold. The sales of Ford India including exports stood at 11,065 units in August 2013 registering 7% growth in comparison with August 2012 sales of 10,352 units. The domestic sales accounts for 8,008unitsinAugustthisyear,comparedto7,840unitsinAugustlastyear,recordinga2percent increase.ExportsforthemonthofAugust2013stoodat3,057carsagainst2,512unitsinAugust 2012;recordingagrowthof22percent.


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AsignificantcustomerinterestintherecentlylaunchedurbanSUV,theallnewEcoSport,helped adduptoFordIndiassecondbestsalesmonthsofarthisyear. TheyeartodatesalesofFordIndiainthefiscalyear201314alongwithexportsstoodat45,437 unitsagainst43,264unitsduringsameperiodofpreviousfinancialyear,registering5%increase. The domestic sales for the period is 8% less for the AprilAugust period in FY 201314 at 31,025 units as against 33,580 units during the AprilAugust period of FY 201213. The exports went significantlyhighfortheperiodat49%at14,412unitsagainst9,684unitsduringsameperiodof FY201213. A financial ratio is a relative magnitude of two selected numerical values taken from an enterprise'sfinancialstatements. The current ratio32 is balancesheet financial performance measure of company liquidity. Low values for the current ratio (values less than 1) indicating that a firm is facing difficulty meeting currentobligations. Year 2008 2009 2010 2011 2012 CurrentRatio 0.92 0.84 1 0.97 0.83 Turnover Ratios Inventory 8.7 9.52 5.4 5.66 7.36 Debtors 31.17 26.35 9.47 7.52 9.07 Turnoverratiosarealsoknownasactivityorefficiencyratios.Thetotalfundraisedbythecompany is invested in acquiring various assets for its operations. The assets are acquired to generate the salesrevenueandthepositionofprofitdependsuponthevalueofsales.Turnoverratiosestablish therelationshipofsaleswithvariousassets. Inventory turnover ratio31 measures how frequently the company's inventory turned into sales. Ifwelookatfiguresin2012itisbetterincomparedto2011. Debtorsturnoverratioshowshowquicklythecreditsalesof thecompanyhavebeenconverted intocash.Ifwelookatfiguresitisdecreasingeveryyearwhichisdirectlyaffectingprofitabilityof company. Lower debtor turnover ratio is not good because it tells us that we have not managed debtorsbetterways.Moneyfromdebtorsisnotcollectedfastly.Thisiswillcreatebadimpactif someinvestorsplanningtoinvest. Beyondthisafterlookingatfutureaspectswealsoforecastedaccordingtoindustryandcompany growth.Afterthenewplanscompanyisshowingpositivesign,whichshowscompanyistryingto implementstrategies.
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StrategicmovesbyFordEcoSport(PositivesandNegatives) PositivefactorsforFordEcoSport Low Cost of Ownership and Low Pricing Strategy Ford EcoSport will be supported by a well thoughtoutstrategyofrobustandwelltestedcomponentsandsparesandfaster,affordable and timely service. Innovative Child Parts strategy and low pricing specially developed durable parts plus technologically advanced powertrains contribute to low price of Ford EcoSport and low cost of ownership. Fords main vision behind launching EcoSport with this strategy is because they want to provide a low cost of ownership and service over time. To offerthis,Fordworkedhardonathreeprongedvisionofefficienttechnologyandpartsdesign, serviceinnovationsandnetworkexpansions. Threeclassleadingpowertrains,includingtheinternationallyacclaimedEcoBoost,powersthe Ecosport range in India offering amazing and superior fuelefficiency and thus a low running cost over the ownership lifecycle. Being produced on a global platform, the all new EcoSport benefits from the huge economies of scale in terms of global sourcing that benefits the customers.Sincemostlyallservicepartsareproducedlocally,theavailabilityandaffordability ofpartshasgreatlyincreased.ChildPartsstrategycomesfromtheproductionofFordFigo, whichmeansnotreplacingofentireassemblies.Forexample,thefrontbumpercomesinthree separatechildpartsallowingcheaperreplacements. Providing easy and quick service for the EcoSport also has been addressed with more dealership adding quick service bays and Fordpioneered Quick Lane service that takes customerexperiencetothenextlevelintermsofcomfortandconvenience.With260outlets in around 138 cities and towns in India, Ford EcoSport is fully geared up to need the service needsofcustomers.Fordsmobilevansalsoavailableataround20locations. Ford Ecosport is a compact SUV with aggressive price range from 5.59 lakhs to 7.8 lakhs (depending upon the variant). Ford is mainly banking on high volumes as they are more concentrated towards volumes rather than profit margin to increase their market share in India.ForloweringthecostFordstrategiesasinvestedaround142millionUSD.Theysettleda completemanufacturingunitdedicatedtothiscaronlyinChennai.Wehavetolookmoreinto how they are managing this much low cost and how this will affect the overall sales of Ford carsandparticularlyEcosportinIndia. HighDemandofFordEcoSportFordEcoSportbecomesthehighestsellingSUVinlastquarter. Ford was swamped by as many as 30,000 bookings in the fortnight the launch of Ecosport in Indiaon25June,potentialbuyersluredbyitsprice,sizeandlooks.SincethelaunchofEcoSport inIndia,FordIndiaisexperiencingasignificantriseinfootfallsatdealershipsacrossallregions and most dealerships across all regions and most dealerships are witnessing record levels of daily bookings, with enquiries extending to other Ford nameplates as well. Out of the 260
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dealer touch in 360 cities, 40% cover tier II and III, and these have been in readiness for this overwhelmingdemandfortheEcoSport.AccordingtoSIAM,thecompanyhassold8717units ofEcoSporttillJuly,and4,715unitsinJulyitself. Because of heavy demand booking for some variants are now stopped which is effecting the buyingofpotentialcustomers.SinceFordEcoSportismostsellingSUVinIndiarightnowand duetothisamazingresponse,buyershaveturnedupinhugenumberstobookthemselvesa ride in this SUV. Over a period of time, the demand exceeded considerably and eventual outnumbered the supply. This led to increased waiting period of SUVs delivery. This high demandandhighbookingshelpedFordIndianonfinanciallysectortoahighextent(Referto financialanalysis).Lowprice,goodinstyle,plentyoffeaturesmakeFordEcosportas1stchoice of customer who are preferring highend Hatchbacks and entry level SUVs. Because of these feature, Ford Ecosport right now enjoying 30,000 prebookings in just 17 days of launch. For some models waiting time is extended to 180 to 270 days with minimum waiting time of 60 days on few other highend models. Petrol variants are offering high waiting because Ford is moreconcentratingonDieselmodelsastheyarehavinghighdemandrather thanpetrolvariants.WehavetodecideormadeanyconclusiononthisasonwhatFordneed to concentrate more Concentrate on diesel models as their sales are more or concentrate onhighproductionofpetrolvariantsastheirwaitingiscontinuouslyincreasing. Segment Advantage EcoSports design is new for Indian customer with that price and no doubt its best in class. EcoSports segment is also new to the Indian market as it is launched under compact SUV segment in which only one car i.e. Renault Duster was present but the pricesareabout20%morethanthatofEcoSport.EcoSportalsogiveschoiceintypeofEngine along with variant which is also 1st time in India with around 4 engines distributed in 10 differentvariants.ItisprovidingyouthepleasureofSUValongwitheasycityridesbecauseof compact size and handling. One of the biggest reason behind so many advantages is the mappingofcar,whichisnearlyperfectforIndiansandIndianroads. Along with practical advantages related to driving status, Ford and customers also enjoying financial advantages on this car. This car comes under 4 meter segment with higher ground clearance, hence the excise duty reduced to 4% for customers and 1% for company and similarly on the spare parts as well. Tax relaxation from government is also coming for companyaswellascustomerbecauseofsizepatternwhichisadoptedbyFordEcoSport.

NegativefactorsforFordEcoSport LongWaitingtimeLuredbyitsprice,sizeandlooks,FordEcosportreceivedasmanyas30,000 bookingsinafortnight.TheproductioncentersofFordareclearlynotinapositiontohandle so much demand. There is waiting period of about 90270 days on some models. If it fails to boost production to meet the demand for the EcoSport, Ford India Pvt. Ltd. risks losing customers to not only rivals such as Renault SA, with its Duster SUV, but also Maruti Suzuki India Ltd, which plans to start selling its compact SUV XA Alpha next year. Also why should a customer prefer the same car after 69 months when there is chance a new design, new
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modifications,newfeaturesandnewproductatsamepriceatthattime?Alsoforprebooking ofFordEcosportcustomerneedtopayaroundRs.80,000.Ifwecalculatecompoundinterest ofthismoneyfornext9months@10%ratethenalsocustomerislosingsomemoneytobuy thiscarandhencecostingofthecarwillautomaticallyincrease37. Recall byFord Ecosport Ford recalled 972 of the diesel powered Ford Ecosport, barely days after its launch, because of some serious technical issues which could have impact on customer safety. The recall came at a time when bookings for the model have swelled and deliverieshadbegun.Thiscandentthecustomersentiments,particularlyofthosecustomers whosecarsarerecalled&theirmoneyissomewhereinbetweenwithoutthecarandtothose who are planning to buy the car in future. It will also generate a doubt in the minds of those customers who have purchased the car and are not recalled. The company issued a quick notice saying "This is a proactive, voluntary recall action to ensure customers' safety and satisfaction."NowitcanbetakenasastrategicmovebycompanyastheywanttoproveYes we take care off any problem with our product and we will not ignore them. We have to analyzeIsthisrecallastrategicmovebyFordtoattractmorecustomers.Andifitisso,then howwillthisaffectthesaleofFordEcosport38? Compromise on plastics quality for priceMajor chunk of the plastics used in building the car arehardplasticsandareinferiorto mostpremiumvehicle, forexample,theHundaii20.This is not a car for which the owners would be raving about on quality. The real issues however observedarelooselyfittedplasticpanelsaroundthegearleverandmeterconsolewhichcould easilyshaketheentireinstrumentconsolebyhand.Onarelatednote,thesameproblemwas observedwiththefoglamphousingonthebumper

FordsstrategiestolaunchEcoSportforIndianmarketseemstobeworkedexcellentlyforthem asperthecurrentfigureofthesales.ThestrategieslikeChildPartsstrategy,lowcostof ownership,lowpricingstrategy,differentialsegmentetc.makesFordEcoSportmostdemanded carinIndiaduringpast4monthsperiod.AsIndiancustomerisveryreluctantinbuyingitemslike automobile,longwaitingtimeofabout9monthsmaycauseloosingofpotentialcustomer becauseafter9monthsmanynewcarsofsamesegmentswillcometotapthemarketinwhich EcoSportisplayingthegame.Onthecontraryofthislongwaitingtime,recentrecallbyFordof someofitsdieselcarscanmakesituationworstforEcoSport.IsrecallsmadebyFordrightatthis peaktimeofsalesperformanceoristhatastrategicmovebyFordtoputEcoSportinnewsagain andagain.EvenaftersomuchofpositiveattributesatthatlowcostwhatmakesFordscustomer waitforlongtimeanddisheartenthecustomersbyrecalls.Asmanyofthecompetitorsalready plannedtoputatleastonecarinEcoSportssegmentinupcoming2or3months,itwillbevery interestingtoseehowFordwillreactonthatandhowtheywillhidethebigproblemsofnot usinggoodqualityexternalmaterial,recallsandmaintainthecustomerswhohavetowaitfor next9monthsfortheirownFordEcoSport.
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FordsstrategiestolaunchEcoSportforIndianmarketseemstobeworkedexcellentlyforthemas perthecurrentfigureofthesales.ThestrategieslikeChildPartsstrategy,lowcostofownership, low pricing strategy, differential segment etc. makes Ford EcoSport most demanded car in India duringpast4monthsperiod.AsIndiancustomerisveryreluctantinbuyingitemslikeautomobile, long waiting time of about 9 months may cause loosing of potential customer because after 9 monthsmanynewcarsofsamesegmentswillcometotapthemarketinwhichEcoSportisplaying thegame.Onthecontraryofthislongwaitingtime,recentrecallbyFordofsomeofitsdieselcars can make situation worst for EcoSport. Is recalls made by Ford right at this peak time of sales performance or is that a strategic move by Ford to put EcoSport in news again and again. Even after so much of positive attributes at that low cost what makes Fords customer wait for long timeanddisheartenthecustomersbyrecalls.Asmanyofthecompetitorsalreadyplannedtoput atleastonecarinEcoSportssegmentinupcoming2or3months,itwillbeveryinterestingtosee how Ford will react on that and how they will hide the big problems of not using good quality externalmaterial,recallsandmaintainthecustomerswhohavetowaitfornext9monthsfortheir ownFordEcoSport. CONCLUSION . Theaimofthestudywastounderstandconsumerperceptionofglobalbrandsvs.localbrandsin the Indian car industry. The car industry in India was undertaken for the study due to the strong growth of the automobile sector in India. The secondary objectives of the study highlighted the factors that effect consumer preference for global brands; examined the effects of country of origin on consumer perceptions of global brands and local brands; and studied the effects of consumer ethnocentrism towards global brands. The study initially accomplished the secondary objectivesinordertoaccomplishtheprimaryobjective. The literature review provided a critical analysis of the views and insights of various researchers on the subject area and served as a source of secondary data, which were collected through marketing journals and other existing reports that were based on the topic. Furthermore, an overviewoftheIndiancarindustrywaspresentedinthestudyinordertofacilitatethereaderto comprehendthestudyinanenhancedway. The effects of consumer ethnocentrism over global brands assisted to better understand the respondents beliefs and perceptions towards global and local car brands. Although all the respondentswhowereinterviewedhadapositiveperceptiontowardslocalbrandsinIndia,most of the respondents felt that global car brands were better than Indian brands. Even the respondents, who owned a local brand, had a positive insight towards global brands. The respondents who own a local brand had a feel of contentment, being safe with the home brand and also trust towards the brand. Furthermore, they also felt that global car brands were expensivethanthelocalbrands.
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Itwasfoundthattherewereconsumerswhowerenonethnocentric,whereintheyjudgedforeign productsbasedontheirattributesand/orviewedthemasbetterbecausetheywerenotproduced in their own country. Furthermore, there were also consumers who were low on CET and were foundtobemorecosmopolitaninoutlookalongwithahighdegreeofculturalopenness. Localbrandswerefoundtoprovidesatisfactionandgoodvalueformoney.Therespondents,who possessedlocalbrands,trustedthebrandsandfeltsafewithit.Qualityandtrustwerethemajor influencers for possessing local brands. Prestige or status had only a passive role in the respondentsperception,whoownedalocalcarbrand.

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