MARKETING PLAN

• ABOUT THE COMPANY

Our company is an AIRBAGS manufacturer providing different types of

airbags which will be placed in the front of the car to protect the car
from major damage. The airbag will use the sensor system to detect and
deploy at a time and a specific distance. Our idea is to minimize the road
accidents and damages due to which numerous individuals every year
lost their lives.

• ENVIRONMENTAL ANALYSIS

Political factors: These are laws and rules that the government enacts
that have an impact on the airbag sector. For instance, all airbag
manufacturers are required to adhere to safety criteria set by regulatory
authorities like the National Highway Traffic Safety Administration in the
US, the European Commission in Europe, and the Ministry of Road
Transport and Highways in India. These rules have an effect on how
airbags are created, manufactured, and distributed, which may affect
how profitable airbag manufacturers are.

Economic factors: These include macroeconomic variables that can

affect the demand for airbags, such as inflation, interest rates, and
consumer expenditure. For instance, buyers may put off buying a car
during a recession, which can lead to a decline in the demand for
airbags. On the other hand, during times of economic expansion,
demand for airbags can rise as a result of increasing vehicle sales.

Social aspects: They include social and cultural factors that have an
impact on the airbag sector. For instance, the demand for airbags may
increase as people become more aware of their importance and the
growing concern for road safety. On the other hand, societal perceptions
about car ownership and driving behavior may also have an impact on
airbag demand.
 Technical developments that might have an impact on the airbag
business are included below. The effectiveness and safety of airbags, for
instance, might be improved through the creation of sensors and
algorithms that can identify accidents and modify airbag deployment..

Legal aspects: These are rules and laws that have an impact on the
airbag sector. For instance, product liability rules may affect the
responsibility of airbag manufacturers for injuries brought on by
defective airbags. Likewise, the capacity of airbag businesses to
safeguard their technology and stop rivals from stealing their devices
may be impacted by intellectual property rules.

The effect of the airbag industry on the environment is one of the

environmental factors. For instance, rules governing the usage and
disposal of hazardous materials used in the creation of airbags must be
followed by airbag producers. The market for airbags may also be
impacted by a trend toward electric vehicles brought on by growing
concerns about climate change.

You may develop a better grasp of the external environment in which

airbag companies operate by taking each of these aspects into account.
In turn, this can assist you in identifying prospective industry possibilities
and risks so that you can make better marketing selections.

• TARGET MARKET

Channels:

1.Direct sales to car manufacturers and distributors

2.Online sales and marketing to car owners and drivers
3. Partnerships with industry associations and groups
 1. Automotive manufacturers
2. Car rental companies
3. Fleet operators
4. Safety-conscious consumers

• Automotive manufacturers who want to incorporate new safety

elements into their vehicles could be a potential target market for a new
outside airbag business. The advantages of outside airbags, such as
increased safety and lessened damage to cars and passengers in the case
of an accident, would probably be of appeal to this market..

• Car rental businesses might be a suitable target market because they are
likely to be willing to invest in new safety features to set themselves apart
from rivals and provide their clients more peace of mind.
• The safety advantages of outside airbags for their cars may also be of
interest to fleet operators, such as taxi and ride-hailing services. This
market would probably be interested in the additional safety features
and lower repair costs that external airbags may offer.

• Consumers that are concerned about their safety and are looking for
further security for themselves and their automobiles could be the last
potential target group. The safety advantages of outside airbags as well
as any other features that set the product apart are probably of interest
to this market.

• Car airbags are designed to provide additional safety and protection to

passengers in the event of a collision or accident. Therefore, car airbags
would be relevant to all drivers and passengers, regardless of age,
gender, or any other demographic factor. However, it is worth noting
that some individuals and groups may be more likely to prioritize safety
features such as airbags when choosing a vehicle. Additionally,
government agencies and organizations that prioritize road safety may
also place higher importance on vehicles that include airbags as standard
equipment.
 SWOT ANALYSIS
SWOT analysis is a strategic planning tool used to identify and evaluate
the strengths, weaknesses, opportunities, and threats involved in a
business or project. It helps in understanding the current position of the
organization or project and identifying areas for improvement.

1. STRENGTHS

Strengths are the positive aspects of the organization or the project that
give it an advantage over the other or basically in comparison to its
competitors. While here talking about our company i.e Airbag
manufacturing company mainly for cars to be fitted in front.

• Increasing Public Awareness: Nowadays, with a better flow of

information and globalization, consumers are becoming more
demanding and aware regarding the technological changes
related to safety and want better safety equipment in their
vehicles hence it would benefit our company by bringing up new
technology related to the safety of the drivers along with their
vehicles.
• High Growth rate : The demand for airbags is increasing at a high
rate and is also expected to grow at the same rate as customers
are becoming more demanding and aware regarding safety, hence
bringing up new technology along with a new product in the
market can lead to being a better side of a company hence leading
a company to generate revenue at a shorter time.

• Strong Distribution Network : This could be advantageous for a

company, as the company can reach a large scale of customers
and can provide faster delivery times.
2. WEAKNESSES

Weaknesses are the negative aspects of the organization or project that

put it at a disadvantage compared to its competitors. While talking
about the weaknesses of our company:

• Limited protection: Exterior airbags may not provide enough

protection in certain types of accidents, such as rollovers or
collisions with stationary objects.

• Dependency : Airbag manufacturing company are dependent on

OEM (automobile manufacturers ) which make them prone to
automobile market fluctuations. hence to overcome this weakness
we will not be dependent only on car manufacturers companies
we would try to tie up with the Insurance providers as it would
benefit both insurance agencies as well as our company as the
insurance company would help us to gain orders in bulk and they
will get benefited by paying the cost of airbag only for the car as
the engine will be saved which costs higher price in repairs

• Increasing cost of vehicles: The cost of new technology airbags

would lead to an increase in the cost of a vehicle as this would not
only affect the margins of OEMs as well as customers would think
twice about buying the same vehicle at the higher price than
before for the new technology.

• Replacement cost: Once the airbag is deployed and the vehicle is

not insured then the cost of that airbag has to be borne by the
customer which would cost somewhere around 80000-100000 rs.

• Vulnerability to Product Recalls : Airbags are critical safety

features, and any defects can lead to product recalls, which can be
costly and damaging to the company's reputation.
 3. OPPORTUNITIES

These are external factors that the organization or project can take
advantage of to improve its position or achieve its objectives.

• Innovation: There is an opportunity for car manufacturers to

continue to innovate and improve the design and effectiveness of
exterior airbags.
• Regulation: As governments around the world increase safety
regulations for vehicles, there may be an opportunity for car
manufacturers to promote the safety benefits of exterior airbags.
• Brand differentiation: Vehicles equipped with exterior airbags
may help car manufacturers differentiate their brands from
competitors, potentially leading to increased sales and market
share.

4. THREATS
These are external factors that may affect the organization or project
negatively.
• Consumer acceptanceExterior airbags are a new and relatively
unfamiliar technology, and consumers may be hesitant to purchase
vehicles equipped with them until they have been proven effective and
reliable.
• Competitive pressure: If one car manufacturer successfully implements
exterior airbags, competitors may feel pressure to adopt the technology
to remain competitive.
• Safety concerns: There may be safety concerns related to the use of
exterior airbags, such as the risk of the airbag deploying when it is not
needed or causing injury to pedestrians.
• PORTER’S FIVE FORCES MODEL

The five forces in Porter's model are:

1. The threat of new entrantsThis refers to the extent to which new
competitors can enter an industry and compete with existing
businesses. If barriers to entry are high (such as high capital
requirements or strong brand loyalty), the threat of new entrants will
be low. An airbag manufacturing company has high barriers to entry
due to the need for significant investment in research and
development, production equipment, and safety regulations. Also,
Intense rivalry among existing firms along with high investment is
required.

2.The bargaining power of suppliers : This refers to the ability of

suppliers to influence the prices and terms of supply for businesses in
the industry. If there are few suppliers or they have significant
bargaining power, they can charge higher prices or demand favorable
terms. The airbag industry may face limited supplier options due to
specialized components needed for the airbag system, but there could
be some bargaining power if the airbag company has developed long-
term relationships with suppliers. Also, Suppliers has better bargaining
power than airbag module manufacturer due to vertical integration
since Suppliers’ products such as sensors, inflator, and airbag fabric are
important component for the airbag manufacturer.

3.The bargaining power of buyers : This refers to the ability of buyers to

influence the prices and terms of purchase from businesses in the
industry. If buyers have many choices or can easily switch suppliers, they
can negotiate lower prices or better terms. Airbag companies face a high
bargaining power of buyers due to the importance of safety in the
automotive industry, which could increase the pressure on companies to
produce high-quality products. Buyers are automobile manufacturers
and have better bargaining power due to High capacity purchases by
buyers

4.The threat of substitutes : This refers to the extent to which

alternative products or services can compete with those offered by
businesses in the industry. If there are many substitutes available or they
offer similar benefits at lower prices, the threat of substitutes will be
high. This industry may face some threats of substitutes from safety
systems that do not rely on airbags, such as collision avoidance systems.

5.Rivalry among existing competitors : This refers to the extent to which

existing businesses in the industry compete with each other. If there are
many competitors and they are all vying for market share, the intensity
of competitive rivalry will be high. Among airbag module manufacturing
firms, the intensity of competition is increasing due to the high growth
rate in the airbag market. Competition in the airbag module segment is
very intense with Autoliv at 40%, Delphi at 9%, TRW at 8%, Takata at 3%,
and others at 38% market share after the success of our product they
may have the possibility of manufacturing that same product and can
capture the market since they are in this field from a long back at the
same time we would be benefited from first mover advantage.

On contrary, the airbag company should be aware of the competitive

forces within the industry to maintain its profitability and develop
strategies to address any challenges that may arise.
• MARKETING MIX

1.Product:
• Highlight the unique safety benefits of exterior airbags, such as
improved protection for both vehicle occupants and pedestrians.
Emphasize the advanced technology and innovation behind the design
and implementation of exterior airbags. Provide clear and concise
information on how exterior airbags work and how they differ from
traditional airbags.
• A framework for examining the competitive forces that impact an
industry's profitability and allure is Porter's Five Forces Model. Michael
Porter created the model, which is widely used in corporate
management and strategy.

2. Price: Determine a price point that reflects the added cost of

developing and implementing exterior airbags. Consider offering
exterior airbags as part of a premium safety package, which could be
sold at a higher price point. Offer financing options or promotional
pricing to make exterior airbags more accessible to a wider range of
consumers.

3. Place: Make sure vehicles equipped with exterior airbags are

available at a variety of dealerships and sales locations. Train sales
staff on the benefits and features of exterior airbags to ensure they
can effectively communicate them to customers. Use targeted
advertising and promotions to reach consumers who prioritize safety
in their vehicle purchasing decisions.

4. Promotion: Use social media and other digital channels to educate

consumers about the benefits of exterior airbags and how they work.
Highlight the safety ratings and certifications that vehicles equipped
with exterior airbags have received. Partner with safety organizations
and advocacy groups to promote the benefits of exterior airbags and
their importance in improving road safety.
 MARKETING STRATEGIES
MARKETING STRATEGIES for exterior airbags could focus on the
following aspects:

1. Safety: Emphasize the safety benefits of exterior airbags in

protecting pedestrians and cyclists from the impact of a
collision. Highlight how this technology can help prevent
serious injuries or fatalities in accidents.

2. Innovation Highlight the novelty and innovative aspect of the

technology. Showcase how the technology works, how it is
different from other safety features, and how it could be a
game-changer in the automotive industry.

3. Branding: Create a brand image that emphasizes the values of

safety, innovation, and social responsibility. Position the
product as a premium safety feature for conscious and
responsible drivers who prioritize safety.

4. Partnerships: Forge strategic partnerships with automakers,

dealerships, and other automotive-related businesses to
promote and showcase the product. Collaborate with them to
develop co-branded campaigns and events that showcase the
technology and its benefits.

5. Education: Educate potential customers about the technology,

its benefits, and how it works. Use a variety of channels such as
social media, blogs, webinars, and seminars to provide detailed
information about the product.

6. Testimonials: Use customer testimonials and case studies to

demonstrate how the technology has helped protect people
from accidents and reduce injuries
 7. Environmental Sustainability: Highlight how the technology
can help reduce emissions by reducing the likelihood of
accidents, which in turn can lead to fewer repairs and
replacements, resulting in a lower carbon footprint.

APPROACHES FOR MARKET STRATEGIES

1. Market research: Conduct thorough market research to

understand the target audience, their needs, preferences,
and perceptions of safety features. Identify the potential
market segments and their buying behaviors

2. Competitive analysis: Analyze the competition and their

products to identify the strengths and weaknesses of their
offerings. Use this information to differentiate the product
and develop a unique value proposition.

3. Pricing: Set a competitive price point that reflects the

product's value and affordability to the target audience.
Consider factors such as production costs, profit margins,
and customer willingness to pay.

4. Distribution : Develop a distribution strategy that ensures

the product is available in the right places, at the right time,
and in the right quantity. Consider factors such as the target
audience's buying behaviors, sales channels, and logistics.

5. Promotion: Develop a promotional strategy that highlights

the product's unique value proposition and benefits. Use a
mix of channels such as social media, search engine
marketing, influencer marketing, and traditional advertising
to reach the target audience.
 6. Partnership: Forge strategic partnerships with automakers,
dealerships, and other businesses in the automotive
industry to promote and showcase the product. Collaborate
with them to develop co-branded campaigns and events
that showcase the technology and its benefits.

7. Customer service: Provide excellent customer service to

build brand loyalty and ensure customer satisfaction. Offer
warranties, guarantees, and after-sales support to build
trust and confidence in the product.

8. Compliance: Ensure compliance with relevant safety

regulations and standards to ensure the product's safety
and reliability.

It is important to note that the market strategies for exterior airbags will
depend on various factors such as the product's stage of development, target
audience, and competitive landscape. Therefore, a tailored approach will be
necessary for successful market implementation.

• EVALUATION AND CONTROL

Evaluation and control of exterior airbags involve several factors that

need to be considered to ensure their effectiveness and safety. Here are
some key aspects:

1. Testing: Exterior airbags undergo rigorous testing to ensure

their effectiveness and safety. They are tested under
different conditions, including different impact speeds,
angles, and environmental conditions.

2. Deployment: Exterior airbags need to deploy quickly and

precisely in the event of an impact. The deployment system
 needs to be carefully designed to ensure the airbag inflates
at the right moment and with the right amount of force.

3. Sensors Exterior airbags are equipped with sensors that

detect an imminent impact and signal the airbag to deploy.
These sensors need to be carefully calibrated to detect
impacts accurately and avoid false positives.

4. Durability: Exterior airbags need to withstand different

weather conditions and maintain their effectiveness over
time. They are tested for durability under different
conditions, including exposure to heat, cold, and humidity.

5. Cost: The cost of exterior airbags needs to be carefully

considered, as they can be expensive to produce and install.
Cost-effectiveness analysis can help determine the optimal
balance between cost and effectiveness.

6. Regulatory compliance Exterior airbags need to comply

with regulatory standards to ensure their safety and
effectiveness. Regulatory bodies such as the National
Highway Traffic Safety Administration (NHTSA) and the
European Commission evaluate and certify the safety of
these airbags before they are allowed in the market.

In summary, evaluation, and control of exterior airbags require careful

consideration of their testing, deployment system, sensors, durability, cost,
and regulatory compliance. These factors need to be balanced to ensure the
effectiveness and safety of these airbags.