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Project Title: Harman speakers on Tata Tiago and its future marketing strategy for

India/ Asia Pacific region

Background:

Harman International Indias latest in-car infotainment system can be seen in the
recently launched Tata Tiago, a crucial model that involves high stakes for the
company. The infotainment system is one of the many features on Tata Tiago that
are being appreciated by experts.
The systems that Harman have developed for Tata Motors are infotainment systems
predominantly catering to two segments entry small car (Bolt and Tiago) and entry
mid-sized sedan category (Zest). Products developed by them are in two variants
entry radio and display audio. While the entry radio (AM/FM, Bluetooth, USB and
AUX support) and display audio are internally classified terms, according to the
senior company official, the entry radio solution is a segment-first in terms of giving a
better user experience via bigger display and flow of functionalities. Segment-first
because a typical entry radio found in the market only offers a single-line segmented
display with not much of additional features. So this was something where Harman
and Tata Motors collaborated to deliver segment-first infotainment system for the end
consumers, Prathab Deivanayagham, head of connected car India, Harman
International explains.
Harman drive the technologies from their global platforms yet remain innovative in
terms of tailor-made functionalities suitable for the Indian market. Thats how they
were able to pitch into Tata Motors and deliver such systems. Harmans plant in
Chakan, which now has two functional assembly lines, currently produces around
10,000-15,000 units per month. They have a scalable capacity that can go up to half
a million units per annum. Having an acoustics engineering centre in Pune and a
production plant in Chakan is a key advantage for Harman.
The senior official estimates that if the Indian passenger car industry grows, as per
the projections, to 5-6 million units annually by 2020/21, the in-car infotainment
segment could translate into a US$ 200-250 million opportunity.
However, currently, OEM-fitted infotainment systems come in less than one million
cars. Almost 60-70 percent of total car produced come with entry radio because they
sell in the cost sensitive segments. Entry-navigation units are the biggest bet with
bigger display touchscreens. According to a recently published report by Allied
Market Research titled, World In-Car Infotainment Market Opportunities and
Forecasts, 2015-2022, the world in-car infotainment market is expected to reach
US$ 33.8 billion by 2022, registering a CAGR of 13.3 percent in 2016-2022. The
report says that while Europe is the most promising region with surging demand,
Asia-Pacific would be the fastest growing region over the forecast period.

Problem Symptom:
Poor/Unsatisfactory performance of Harman Speakers in Tata Tiago car. High repair
time of speakers in case of failure.

Problem Statement:
Brand Harman is at stake and the company may fail to target the fastest growing
Asia Pacific market.

Scope:
In this project we will try to discover the reason Harman entered into low car
segment infotainment. We will also bring out the failure of the Harman speakers in
Tata Tiago car and the impact of the failure on brand Harman. We will try to use
available secondary data to show the failure of Harman speakers on Tata Tiago. We
will give recommendations that what Harman should do to fix the problem in Tata
Tiago and how to prevent brand Harman to target fast growing Asia Pacific Market.

Related Interests