Study of Promotional Strategies for Cars in India


Table of Contents
1. Objective 2. Scope of Work 3. Rationale 4. Theoretical Framework and Review of Literature i. ii. iii. iv. Promotional Strategy Promotional Mix Message and Media Strategy Communication Model- AIDA

5. Promotion Process For Cars i. ii. iii. iv. v. vi. vii. viii. ix. Selecting the target market Product and Brand Positioning Promotional Decisions Advertising Direct Marketing Interactive/Interactive Marketing Sales Promotion Publicity/Public Relation Personal Selling

6. Ford Fiesta and its Promotions i. Target Market



Adopting offer to suit target segment

iii. iv.

Market Competition Strategic Promotion of Ford

7. Questionnaire 8. Analyzed Survey Report of the Questionnaire 9. SWOT Analysis 10. SWOT Analysis of Ford Fiesta 11. Conclusion 12. Bibliography


Chapter 1 Introduction


 To study and analyze the elements of Promotional Strategies.  Study and analysis of promotional strategies of Ford India for its product Ford Fiesta.  Study the customer response regarding the promotions of cars in India.

Scope of the Project
 Study the basic aspects of Promotional Strategies such as Sales Promotion, Personal Selling, Advertising and Publicity.  Studying the customer response regarding promotions of cars in India through a questionnaire.  Study the promotional strategies of Ford Fiesta with all the tools of promotion.  Analyze and interpret the responses by SWOT analysis.


Data Collection and Analysis
 Secondary data collection from the various car information websites, newspapers, magazines, etc.  Primary data collected from a questionnaire designed to target the customer regarding the promotions of cars in India.  Analysis of promotional strategies by SWOT analysis by evaluating the Strengths, Weaknesses, Opportunities and Threats of Ford Fiesta by analyzing the responses through the questionnaire.

One of the fastest growing industries in the world is automobile industry. This automobile industry even has its influence on the Indian market. There is an emergence of global automobile players in India, such as Ford, for the past decade and each player have their different promotional strategies to interact customers. This project is an effort to understand these promotional strategies adopted by different automobile companies in India. This project concerns with the study of choosing the 6

most appropriate mix of advertising, sales promotion, personal selling and publicity for cars in India with a detailed study of promotional strategy of Ford Fiesta. This project also targets the customers in India regarding the promotions of cars in India by reviewing and interpreting a questionnaire.

Chapter 2 Literature Survey


Theoretical Framework and Review of Literature
Promotional Strategy
A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organizations promotional strategy can consist of:

Advertising: Is any non personal paid form of communication using any form of mass media.

Public relations: Involves developing positive relationships with the organization media public. The art of good public relations is not only to obtain favorable publicity within the media, but it is also involves being able to handle successfully negative attention.

Sales promotion: Commonly used to obtain an increase in sales short term. It could involve using money off coupons or special offers.


Personal selling: Selling a product service one to one.

Direct Mail: Is the sending of publicity material to a named person within an organization. There has been a massive growth in direct mail campaigns over the last 5 years. Spending on direct mail now amounts to £18 bn a year representing 11.8% of advertising expenditure (Source: Royal Mail 2000). Organizations can pay thousands of pounds for databases, which contain names and addresses of potential customers.

Direct mail allows an organization to use their resources more effectively by allowing them to send publicity material to a named person within their target segment. By personalizing advertising, response rates increase thus increasing the chance of improving sales. Listed below are links to organization whose business involves direct mail.

Promotional Mix


Message and Media Strategy
An effective communication campaign should comprise of a well thought out message strategy. What message are you trying to put across to your target audience? How will you deliver that message? Will it be through the appropriate use of branding? Logos or slogan design? The message should reinforce the benefit of the product and should also help the company in developing the positioning strategy of the product. Companies with effective message strategies include:

Nike: Just do it.

Honda City: The race lies within.

Media strategy refers to how the organization is going to deliver their message. What aspects of the promotional mix will the company use to deliver their message strategy. Where will they promote? Clearly the company must take into account the readership and general behavior of their target audience before they select their media strategy. What newspapers does their target market read? What TV programmes do they watch? Effective targeting of their media campaign could save the company on valuable financial resources.

Communication Model- AIDA


AIDA is a communication model which can be used by firms to aid them in selling their product or services. AIDA is an Acronym for Attention, Interest, Desire, and Action. When a product is launched the first goal is to grab attention. Think, how can an organization use it skills to do this? Use well-known personalities to sell products? Once you grab attention how can you hold Interest, through promoting features, clearly stating the benefit the product has to offer? The third stage is desire, how can you make the product desirable to the consumer? By demonstrating it? The final stage is the purchase action; if the company has been successful with its strategy then the target customer should purchase the product.

Internet Promotion
The development of the World Wide Web has changed the business environment forever. Dot com fever has taken the industry and stock markets by storm. The ecommerce revolution promises to deliver a more efficient way of conducting business. Shoppers can now purchase from the comfort of their home 24 hours a day 7 days a week.


Owning a website is a now a crucial ingredient to the marketing mix strategy of an organization. Consumers can now obtain instant information on products or services to aid them in their crucial purchase decision. Sony Japan took pre-orders of their popular Play Station 2 console over the net, which topped a 1 million after a few days, European football stars are now issuing press releases over the web with the sites registered under their own names. Hit rates are phenomenal.

Advertisers have now moved their money over to the internet as customers are on average spending more time online then watching TV. Popular ways to advertise seem to be with banners and pop ups.

Promotion Process for Cars
Selecting the Target Market

To say that target market selection is a part of promotional/marketing strategy development is just stating the obvious. Marketing targeting simply means choosing one‟s target market. It needs to be clarified at the outset that market targeting is not synonymous with market segmentation. Segmentation is actually tee prelude to target market selection. One has to carry out several tasks besides segmentation before choosing the target market. Through segmentation, a firm divides the market into many segments. But all these segments need not form its target market. Target market signifies only those segments that it wants to adopt as its market. A selection is thus involved in it. 12

Marketing segmentation is a process that throws up not one but several market segments. There may be segments that are sizeable and the ones that are not so sizeable. There may be segments assuring immediate profits and the ones that call for heavy investments in market development. There may also be segments that show great potential, but display tough barriers to entry. As such, the question, which segment/segments, the firm should select as its target market, assumes crucial importance. Markets can be segmented using several relevant bases. For example, demographic characteristics of consumers, such as age, sex, income/purchasing capacity, education level etc, form one base for segmentation. Geographic characteristics constitute another; and buying behavior of the consumers forms yet another base. The various types of segmentations are Geographic segmentation, Demographic segmentation, Psychographic segmentation, etc.

Product Positioning and Brand Positioning It is essential to understand the relationship between products positioning and brand positioning. Though in discussions, the two terms are synonymously and interchangeable used, technically they are different. Product positioning denotes the specific product category/product class in which the given product is opting to compete. And brand positioning denotes the positioning of the brand viz-a viz the competing brands in the chosen product category. It is evident that for any product, before entering the market it has to sequentially carry out the two exercises, product positioning and brand positioning. In the first


step, the product category where the new entrant should enter and compete, i.e. against what all products it has to compete, has to be decided. In this step, it is the broad function that the product is trying to serve that matters. This choice of product category will decide the nature of the competition the product is going to face. Once product category positioning is decided, the position for the new entrant against competing brands in the chosen product category has to be analyzed and fixed.

Issues in Brand Positioning In deciding the brand positioning, the issues are: Which are the competing brands in the chosen product category? What are the unique claims/strengths of the various brands? What position do they enjoy in consumer‟s evaluation and perception? What is the most favored position…? And yet vacant? Can the new brand claim the needed distinction and take the position and satisfy the need?

Promotional Decisions Promotion has been defined as the coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. While implicit communication occurs through the various elements of the marketing mix, most of an organization‟s communications with the market. The basic tools used to accomplish an organization‟s communication objectives are often referred to as the promotional mix.


Advertising Advertising is defined as any paid form of non personal communication about an organization, product, service, or idea by an identified sponsor. The paid aspect of this definition reflects the fact that the space or time for an advertising message generally must be bought. An occasional exception to this is the public service announcement, whose advertising space or time is donated by the media. Advertising is the best-known and most widely discussed form of promotion, probably because of its pervasiveness. It is also very important promotional tool, particularly for companies, whose products and services are targeted at mass consumer markets. It is a very cost-effective method for communicating with large audiences. It can be used to create brand images and symbolic appeals for a company or brand.

Direct Marketing One of the fastest-growing sectors of the U.S. economy is direct marketing, in which organizations communicate directly with target customers to generate a response and a transaction. It has become such an integral part of the IMC program of many organizations and often involves separate objectives, budgets, and strategies; we view direct marketing as a component of the promotional mix. 15

Direct Marketing is much more than direct mail and mail order catalogs. It involves a variety of activities, including database management, direct selling, telemarketing and direct response ads through direct mail, the Internet, and various broadcast and print media. One of the major tools of direct marketing is direct response advertising, whereby a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer.

Interactive/Internet Marketing Interactive media allow for the back-and-forth flow of information whereby users can participate in and modify the form and content of the information they receive in real time. Unlike traditional forms of marketing communications such as advertising, which are one-way in nature, the new media allow users to perform a variety of functions such as receive and alter information and images, make inquiries, respond to questions and of course make purchases. In addition to the Internet, other forms of interactive media include CDROMs, Kiosks, and interactive television.

Sales Promotion The next variable in the promotional mix is sales promotion, which is generally defined as those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales,


sales promotion is generally broken into Consumer-oriented and Trade-oriented activities. Consumer-oriented sales promotion is targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various point-of-purchase materials. Trade-oriented sales promotions are targeted towards marketing intermediaries such as wholesalers, distributors and retailers. Effective Sales Promotion Sales promotion consists of diverse collection of incentive tools mostly short term, designed to stimulate quicker and greater purchase of particular products of services by the consumer. Sales promotion is the only method that makes use of incentives to complete the push-pull promotional strategy of motivating the sale force, the dealer and the consumer in transacting a sale. Price-Off Offers Price-off offers refers to offering the product at lower than the normal price. This encourages immediate sales, attracts non-users, induces product trail and counters competition. Premium Premium refers to the offer of an article of merchandise as an incentive in or to sell the product. Coupons In order to encourage product trail, stimulate re-purchase rate and build loyalty through news papers.


Dealer stock display context It is a type of point of purchase advertising which uses the show windows of the dealer for providing exposure to the sponsor‟s products. Dealer participating enthusiastically and creatively are awarded.

Publicity/ Public Relations Publicity refers to non personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. It usually comes in the form of a news story, editorial or announcement about an organization and its products and services. Like advertising, publicity is not directly paid for by the company. An advantage of publicity over other forms of promotion is its credibility. Another advantage of publicity is its low cost, since the company is not paying its time or space in a mass medium such as TV, radio or newspapers. Public relations are defined as “the management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interests and executes a program of action to earn public understanding and acceptance”. Public relations generally have a broader objective than publicity, as its purpose is to establish and maintain a positive image of the company among its various publics.

Personal Selling


It is a form of person-to-person communication in which a seller attempts to assist and persuade prospective buyers to purchase the company‟s product or service or to act on an idea. Unlike advertising, personal selling involves direct contact between buyer and seller, either face-to-face or through some form of telecommunications such as telephone sales. Personal selling involves more immediate and precise feedback because the impact of the sales presentation can generally be assessed from the customer‟s reactions.

About Ford The modern Ford India began production in 1998, although the roots trace back to 1907 when the Model A was launched. Its manufacturing facilities are in Maraimalai Nagar near Chennai. Ford India began production in 1926, but was shut down in 1954. Production began again with the joint venture Mahindra Ford India, Limited (MIFL) in 1995, a 50-50 venture with Mahindra & Mahindra Limited. Ford increased its interest to 72% in 1998 and renamed the company Ford India Limited.


The first model was the Ford Escort, which was later replaced by locally produced Ford Ikon in 2001. It has since added Fusion, Fiesta, Mondeo, Endeavour and Endeavour Thunder+ to its product line. Key Products Ford Ikon Ford Fiesta Ford Fusion Ford Endeavour

Ford Fiesta

While Fiesta continued to impress people all over the globe, Ford had different plans for the Indian market. Ford engineers in Melbourne, Australia, designed a car from scratch specifically for the Indian market and badged it as Fiesta (2005).

This sedan was sold with two engine options, 1.4 Diesel (TDCI) and 1.4/1.6 Petrol. The 1.6 Petrol version was marketed for its acceleration and performance to keep it competitive with other car makers. The Diesel version saw much success as its main 20

selling point was the fuel efficiency. Ford test delivered a whopping 30+Km/L Since cost of fuel was rising this was the right time for Ford to showcase its turbocharged direct-injection diesel technology. Ford claims to have sold more diesel variants than its petrol ones.

Recently Ford gave some minor facial uplift to the well sold Fiesta and also reworked on safety features. Dual Airbag was included because the competitors the Suzuki SX4 and Hyundai Verna had this and other safety features.

Ford Fiesta is engineered specifically to adapt the demanding Indian road conditions. It is a mid-sized car having a perfect combination of style and solidity. The car has high stability and exceptional driving comfort. Structurally engineered, Ford Fiesta withstands severe collisions. It is loaded with state-of-the art safety features.

Model Variants

Fiesta 1.6 Duratec ZXI Fiesta Duratec 1.6 SXI Fiesta 1.6 S Fiesta 1.4 Duratorq Exi Fiesta Duratec 1.6 EXI (Pace Petrol and Diet Diesel) 21

Fiesta Duratorq 1.4 Zxi Fiesta Duratorq 1.4 SXI

Color Variants

Flare Jewel Violet Panther Black Diamond White Paprika Red Vitro Moondust Silver Platinum

Promotions of FORD FIESTA
Catch Phrase

Go Fida!


Quote Unquote

"Premium aspirational car in the mid-size segment..."

- Arvind Mathew, Managing Director, Ford India

Price Tag

Fiesta Duratec EXI Fiesta 1.6 Duratec ZXI Fiesta Duratec 1.6 SXI Fiesta 1.4 TDCi ZXI

Rs.5.75 Lakhs Rs.6.41 Lakhs Rs.7.01 Lakhs Rs.7.25 Lakhs

The prices are to the close approximation ex-showroom as in Delhi. Please check the latest prices and variant specifications with your dealer.

Target Market On the basis of Demographic Age: Young, Middle and Elderly Gender: Male and Female


Profession: Businessmen, Servicemen, Industrialists, Bureaucrats, Politicians, Students, Doctors, any successful professional. Income: Upper Middle Income Group, High Income Group

On the basis of Psychographic Lifestyle: Exciting, Trendy, Outdoor Oriented Social Class: Upper Middle

On the basis of Geographic Region: Northern, Southern, Eastern, Western region of India Area: Metro cities, Semi-Urban and other Urban areas

Adopting Offer to suit Target Segment

Ford modifies its models for Indian target segments as shown below:


Higher ground clearance to make the car more compatible to the rougher road surface in India. Stiffer rear springs to enable negotiating the ubiquitous potholes on Indian roads. Changes in cooling requirement, with greater airflow to the rear. Higher resistance to dust. Compatibility of engine with the quality of fuel available in India. Location of horn buttons on the steering vehicles. (As the India motorist uses the horn more frequently, for cars sold in India, the horn buttons are kept on the steering wheel and not on a lever on the side as in the models sold in Europe.)

Market Competition Ford Fiesta comes in “C” segment „Sedan‟ and is available in both Diesel and Petrol variants in Indian Market. Along with Fiesta, other cars in this segment are Hyundai Verna, Maruti Suzuki SX4, Chevrolet Aveo and Tata Indigo Manza.

Strategic Promotions by Ford 25

Ford follows the promotions at two levels, they a 1) Promotions of product directly by the manufacturer. 2) Promotions at dealer level. In the first step the products of vehicles manufactured by the Ford Automotives are directly promoted by the manufacturer by himself. He follows many promotional strategies like 1. Advertising through television and newspaper. 2. Internet or interactive marketing. 3. Direct marketing. In the second step the dealer of the vehicles promotes the vehicles. The various promotional strategies followed by the dealers are 1. Advertising though news papers, radios, palm plates. In this all the features of the product and its prices are given in detail to the customer.

By Hoardings, the promotion about the product and its features.

Hoardings A heavy picture of the product which comprises of its attributes and special features are displayed on the roadsides in the form of hoardings. It is a bit expensive strategy but attracts many people who pass by that roadside. This type of advertisement is prepared for those segments of people who cannot afford their time in reading newspapers and watching televisions. While travelling from their home to office, moving on their business activities they may watch these hoardings. These hoarding are especially setup at the road signal stops. Maintaining Data Bank 26

In this the dealer collects personal/bio-data (address and contact number) of many people from various organizations and different sector who are ready to buy the vehicles and who change the vehicles regularly. These people are met-in person or contacted through their contact number. The various new features and new offers regarding the vehicles are advocated to them and are given discounts on group purchase of vehicles, i.e. if 5 or more friends in the group purchase the cars at a time then they are given special discounts on the vehicles.

Free Insurance The dealers of Ford may give a special offer of free insurance on the purchase of each vehicle to its new customers.

Relationship Marketing Fortune Ford pays a special attention towards its old customers. To retain the old and existing customers it conducts a corporate meet at a luxurious hotel. The event aims at knowing the problems of the customers regarding the vehicles and also service feedback. In this way it maintains an effective relationship with the customers and gains the reputation and goodwill in the minds of the customers.

Sales Promotion 27

The sales promotion is done by ford at three levels: 1) Showroom Sales: In this the customers walk in to the showrooms to know about the details of the product. Specially trained sales executives who are present in the showrooms give a detailed explanation about the product to the customers. Sales executives give a detailed note on the products features, various offers given by the manufacturer and also by the dealer to the customer and enhance the sales of the vehicles.

2) Corporate sales: A special team of sales executives are sent to some big corporate sectors and there they personally meet the heads of the organizations like C.E.O‟s, Managers, etc., and explain about the vehicles and the offers and special schemes provided by the dealer to them on bulk purchase of the vehicles and try to promote the sales of the vehicles.

3) Field sales: The sales executives conduct some events with the corporate working people and try to demonstrate the product features and its benefits and try to promote the product and increase its sales.

Conducting Customer Delight Program


This is a unique program conducted by the dealers of Ford. This is a program conducted to retain the old customers of the Ford. The old customers of Ford are meeting personally and they are requested to give their feedback by filling in the questionnaire which is specially prepared for them. In this questionnaire their problems regarding the vehicle and also their post sale service experience are taken. If there exists any problem, then the Fortune Ford service men try to resolve the problems of their customers as soon as possible and makes the customer satisfied. This is a technique to attract the new customers by satisfying the old customers and gaining goodwill in the market.

Extended Warranty The dealers of Ford Fiesta give an extended warranty to its customers where there will be extended time duration in the warranty.

What is Extended Warranty? Factory Warranty covers only for a specific period of time/mileage. After the factory warranty expires, customer is exposed to the risk of parts failures. This is applicable for any machine/equipment/vehicle. Extended Warranty: Is an extension of Factory Warranty Offers almost similar coverage as Factory Warranty Comes with a time-bound (eg. 1yr/2yrs but unlimited mileage cap)


Covers all Mechanical and Electrical Failures Covers labor Why is extended warranty needed? Offers peace of mind motoring Protects against unexpected and non-budgeted expenses Can be transferred, hence increases the resale value. What does it NOT cover? Does not cover wear and tear of parts Does not cover scheduled service items Does not cover accident repairs

Benefits to customer Protection from manufacturing and material defects Car can be repaired at any Ford out let across the country Unlimited number of claims No excess to pay One up-front payment only Inflation protection from rising costs of parts and labor All repairs carried out by qualified Ford technicians Warranty can be transferred when vehicle is sold – better resale value Total peace of mind



What is Total Maintenance Plan? Cost of ownership is the key factor while considering vehicle purchases As part of regular maintenance, customers spend on a) Maintenance parts that are to be replace at specific intervals b) Replacement of worn out parts c) Labor charge for the above A comprehensive maintenance plan by Ford will serve as a good tool to improve the service experience and minimize concerns on cost of ownership of the vehicle Total Maintenance Plan (TMP) is a complete service solution provided to the customer. This enables the customer to have total peace of mind in the form of a “Maintenance Holiday” What does it cover? Scheduled servicing like Engine Oil change, Fuel filter, Oil filter, Spark plugs etc. Non-scheduled maintenance like Brake Pads/Shoes, Brake Discs, Clutch Plates, Lower Suspension Arms, Shock Absorbers etc. Mechanical/Electrical repairs Labor for all the above What does it NOT cover? Accident repairs Tyres Fuel 31

Benefits to the customer Total peace of mind Fixed price for next 2 to 3 years Increased residual value of the car Only Ford genuine parts are used Can avail this service across the country at all Ford authorized outlets Transferable Incase of total loss, can be cancelled Ford factory backed programme Diagnosis/repairs as per recommended standards and practices Vehicles serviced by Ford trained and certified technicians

Advertising Advertising is a direct tool of promotion as any non personal paid form of communication using any form of mass media such as TV, radio or newspapers. The television advertisement of Ford Fiesta emphasize on the powerful engine and mileage. The advertising of Fiesta relates with the word “fida”, and its catch phrase is “go fida”. Advertisement of Fiesta is through TV commercials, Print Media (Mainline newspapers, magazines- auto and general and lifestyle), placing hoardings and online advertisement.


It is also done by sponsored Links on popular social networking websites and through banners, etc.

The other indirect tools of promotions are through sponsorship and words of mouth. Ford sponsors various environment and sports events. Ford‟s cars are very much appreciated for their superb performance and stylish aerodynamic looks. Among motorsport lovers the ford cars are promoted in Rally Racing Championships.

Now, to understand the customers view regarding the promotion of cars in India and its effect on customers is done through a questionnaire. The basic method adopted in conducting the study is a structured questionnaire. Questionnaire is administered on the sample respondents. However, there are certain cases where personal interactive method is followed with customers to find the satisfaction level. The questionnaire study the impact of various promotion techniques and tool used for promoting cars on the customers in India.

Sales figures ( Ford Fiesta: 2213 units (in Sep „09), 1478 units (in Sep „08) Honda City: 4281 units (in Sep „09), 2566 units (in Sep „08) Maruti Suzuki SX4: 2134 units (in Sep „09)


Name: E-mail address: 1) Which of the following company‟s car do you own? a) Maruti Suzuki b) Hyundai c) Honda d) Ford e) Chevrolet f) Other (Respondent can opt for more than one choice)
2) What do you like most about a car? a) Style/design b) Comfort c)


d) Service

3) What do you feel great about your car when compared to other cars in the market? a) Fuel Efficiency b) Durability


c) Low Maintenance d) Sound Quality e) Brand Name

4) How do you come to know about your car before purchasing? a) From friends, relatives b) Advertisements c) Car Experts d) Sale‟s Persons visit e) Auto Magazines or shows 5) To which media do you get expose regularly? a) Television b) Magazine c) News Papers d) Radio 6) What kind of TV channels do you watch regularly? a) National News Channel b) Regional News Channel c) Sports Channel d) Entertainment Channels 7) What kinds of offers do you like or expect from the dealer? a) Free insurance b) Special discounts on sales of cars c) Extending the service period 35

d) Finance availability with 0% interest 8) How do you feel when an unknown sales person approaches you by knowing your full details to demonstrate about any product? a) I will respond b) Lost my privacy

Interested in knowing (if I feel a need of it)

9) What‟s your opinion on Brand Ambassador of a car? a) Very necessary b) Not necessary c) Waste of money for the company 10) What‟s your opinion about the previous brand ambassador Abhishek Bachchan endorsing Ford Fiesta? a) Fulfilled the purpose b) Unable to attract customers c) They were not apt for it 11) Who do you suggest as the right person for promoting the car? a) Sports Person b) Film Star c) Car Expert d) Any celebrity 12) Do you think the expensive hoardings of cars catch your eyes at the roadside? a) Absolutely b) Don‟t bother


c) Not at all 13) Which company‟s product do you think are reliable? a) Maruti Suzuki b) Honda c) Hyundai d) Ford e) Others 14) Which brand do you seriously consider before making a car purchase? a) Maruti Suzuki b) Hyundai c) Honda d) Ford e) Other 15) What is your profession? a) Student b) Businessman c) Service d) Other Professional

Thanks for taking the time to fill out this questionnaire and for providing valuable information which will be used for my project work, and reports. We do not share or sell your name, e mail address or any other data with anyone.


Chapter 3 Analysis


Analyzed Survey Report of the Questionnaire
1) Which of the following company‟s car do you own? g) Maruti Suzuki h) Hyundai i) Honda j) Ford k) Chevrolet l) Other (Respondent can opt for more than one choice) Data Analysis Name of the Company Maruti Suzuki Hyundai Honda Ford Chevrolet Other % of Respondents 45 30 13 7 2 3

Interpretation This question is meant for taking the information regarding the most preferred car company in India. From the above graph it is found that most preferred car company is Maruti Suzuki.


2) What do you like most about a car? e) f)

Style/design Comfort

g) Brand h) Service

Data Analysis Customer Preference Style/Design Comfort Brand Service No of Respondents 27 69 39 15

Interpretation This question is meant to know the Respondents preferences and likes towards the cars. From the data we can position our product to the comfort seeking group of people.

3) What do you feel great about your car when compared to other cars in the market? f) Fuel Efficiency g) Durability h) Low Maintenance i) Sound Quality j) Brand Name 40

Data Analysis Customers Perspective Fuel Efficiency Durability Low Maintenance Sound Quality Brand Name No. of Respondents 6 21 27 36 60

Interpretation From this question we can position the cars according to the Respondents perspectives. Many of the Respondents are buying the cars by seeing its Brand Name only. The no. of customers satisfied with the fuel efficiency are very low.

4) How do you come to know about your car before purchasing? f) From friends, relatives g) Advertisements h) Car Experts i) Sale‟s Persons visit j) Auto Magazines or shows Data Analysis Source of Awareness From friends, relatives Advertisements No. of Respondents 27 75


Car Experts Sale‟s Persons Visit Auto Magazines

9 24 15

Interpretation Most of the Respondents came to know about their vehicle through advertisements only. The major media that attracted the customers is television. 5) To which media do you get expose regularly? e) Television f) Magazine g) News Papers h) Radio Data Analysis Media Television Magazine News Papers Radio No. of Respondents 78 21 48 3

Interpretation From this analysis we come to know that most of the Respondents are interested in watching televisions, which is a good media for communicating with people and delivering our intentions about product.


6) What kind of TV channels do you watch regularly? e) National News Channel f) Regional News Channel g) Sports Channel h) Entertainment Channels Data Analysis TV Channel National News Channel Regional News Channel Sports Channel Entertainment Channels No. of Respondents 30 48 12 60

Interpretation This question is meant to know the interests and preferences of Respondents towards T.V. channels. More than quarter of the sample size showed interest only on the entertainment channels and next preference goes to the regional news channels.

7) What kinds of offers do you like or expect from the dealer? e) Free insurance f) Special discounts on sales of cars g) Extending the service period


h) Finance availability with 0% interest Data Analysis Offers Free Insurance Special Discounts Extending the service period 0% Finance No. of Respondents 27 9 81 33

Interpretation By the result of this question we come to know about the various promotional techniques/offers which attract the customers. From the above analysis many customers are expecting the extension in the service period from the various offers given to them.

8) How do you feel when an unknown sales person approaches you by knowing your full details to demonstrate about any product? d) I will respond e) Lost my privacy

Interested in knowing (if I feel a need of it)

Data Analysis Customer Opinion I will respond Lost my privacy No. of Respondents 33 15


Interested in knowing


Interpretation This question is prepared indirectly to know about the customer‟s opinion about the Data Bank maintenance by the company/dealers. In reply majority of the customers gave a positive reply by showing interest in knowing about the cars when a sales person gives a detailed description about the cars.

9) What‟s your opinion on Brand Ambassador of a car? d) Very necessary e) Not necessary f) Waste of money for the company Data Analysis Customer Opinion on Ambassador Very Necessary Not Necessary Waste of money No. of Respondents 129 21 0

Interpretation This question is meant to know about the importance of Brand Ambassador for a car in the customer‟s point of view. Most of the respondents think that a Brand Ambassador is very necessary for promoting a car.


10) What‟s your opinion about the previous ambassador Abhishek Bachchan endorsing Ford Fiesta? d) Fulfilled the purpose e) Unable to attract customers f) They were not apt for it Data Analysis Customer Opinion Fulfill the purpose Unable to attract customers They were not apt for it No. of Respondents 114 30 6

Interpretation Most of the respondents think that the Brand Ambassadors full filled the purpose and were able to increase the sales of the cars.

11) Who do you suggest as the right person for promoting the car? e) Sports Person f) Film Star g) Car Expert h) Any celebrity Data Analysis Customer Suggestion Sports person No. of Respondents 54


Film Star Car Expert Any Celebrity

63 21 12

Interpretation Most of the respondents suggest a film star as the best ambassador. Because many of them get attracted only to their favorite film stars other than other brand ambassadors.

12) Do you think the expensive hoardings of cars catch your eyes at the roadside? d) Absolutely e) Don‟t bother f) Not at all Data Analysis Customer Opinion Absolutely Don‟t bother Not at all No. of Respondents 90 48 12

Interpretation Most of the respondents think that hoardings are a good option for catching the eyes of a customer. 13) Which company‟s product do you think are reliable? a) Maruti Suzuki


b) Honda c) Hyundai d) Ford e) Other Data Analysis Company Maruti Suzuki Honda Hyundai Ford Other No. of Respondents 45 32 36 34 2

Interpretation The response shows that Maruti Suzuki, Honda, Hyundai, and Ford have good reputation of reliable products. 14) Which brand do you seriously consider before making a car purchase? f) Maruti Suzuki g) Hyundai h) Honda i) Ford j) Other Data Analysis Car Brand No. of Respondents


Maruti Suzuki Hyundai Honda Ford Others

87 27 21 3 12

Interpretation The response shows that most of the people think of Maruti Suzuki product before making a decision. 15) What is your profession? e) Student f) Businessman g) Service h) Other Professional Data Analysis Profession Students Businessman Service Other Professional No.of respondents 69 24 45 12



Most of the respondents were students but more than half of the respondents were working.

According to the questionnaire, the facts gathered about the promotional strategies of cars In India is as follows: 1. The customers prefer Comfort in a car, more than style or design, so in promotional strategies more emphasis should be on comfort level a car provides. 2. The companies should catch in for their brand name while designing the promotional strategies. 3. Advertisements of the cars are the best source of awareness for the customers. 4. Television is the most important media that most of the people communicate with, and entertainment channels should more be targeted than news channel or sports channel. 5. More people look for extended service period while buying a car, rather than special discounts and other offers. 6. There is a strong requirement of a Brand Ambassador for promoting a car, and most respondents feel that a film star is the most appropriate choice. 7. Expensive hoardings at the roadside can prove to be an important medium for spreading awareness about the product. 8. Approximately, half of the respondents were students and rests were working professionals.


SWOT Analysis
SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.

Strengths: attributes of the person or company those are helpful to achieving the objective. Weaknesses: attributes of the person or company those are harmful to achieving the objective. Opportunities: external conditions those are helpful to achieving the objective. Threats: external conditions which could do damage to the objective.

Matching and converting Another way of utilizing SWOT is matching and converting. Matching is used to find competitive advantages by matching the strengths to opportunities. 51

Converting is to apply conversion strategies to convert threats or weaknesses into strengths or opportunities

A firm should not necessarily pursue the more lucrative opportunities. Rather, it may have a better chance at developing a competitive advantage by identifying a fit between the firm's strengths and upcoming opportunities. In some cases, the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity. In SWOT analysis, Strength and Weakness are internal factors while Opportunities and Threats are external factors.


SWOT Analysis of Ford (Fiesta) Internal Factors Strength Good experience of Indian market of about 15 years. Have tested the potential of Indian market. Reputation of reliable and performance oriented products. Settled and has branches in North, South, East and West of India. Location is strength for their business. Reputation of one of the largest car manufacturers in the world.

Weakness Weaker brand image in India. Despite of strong hold in larger markets of the world, has weaker brand image in one of Asia‟s largest car market. Lack of aggressive marketing. No brand ambassador. After previous brand ambassador, Abhishek Bachchan for Ford Fiesta, no brand endorsements are done with any celebrity. Very low market share. Companies such as Hyundai and Honda, has more market share despite entering the Indian market after Ford. (


Opportunities Can capitalize on existing brand. Moving into new segment that offers improved profits. Cost reduction through research and development. Increasing purchase power of Indian middle class.

Threats Rising prices of Oil and raw material all over the world. Rising prices in the global economy could pose a threat. The price of steel and aluminum is increasing putting pressure on the costs of production. Maruti Suzuki, Honda, Hyundai are all in the segment of tuff competition. Every company has a strong hold on one segment.


Chapter 4 Conclusion



1. Advertising, Publicity, Personal Selling, Sales Promotion and Internet Marketing are the most important medium of promotion for cars. 2. Television is the most important medium of advertising and promoting followed by magazines, newspaper, hoardings and radio. 3. Choosing a brand ambassador is beneficial for the promotion of a car. 4. Customers look for various offers while buying a car, for example, free insurance, special discounts on sale, extending service period, finance availability at 0 %, etc. 5. SWOT analysis of Ford (Fiesta) is done with its Strength, Weakness, Opportunity and Threats.


1. Marketing Management, Twelfth Edition, Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha, Pearson Education. 2. 3. 4. 5. 6. 7.


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