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Walmart ranks no.1 in the fortune 500 list for the second consecutive year with a revenue of 421,849.0 Million USD and made a profit of 16,389 Million USD during the FY2011. It was founded in the year 1962 by Sam Walton. Product Walmart is a multinational retailer; in short it has every product or a brand which a person could see in his day to day life. The broad range of product categories include movies, crafts, gifts, college essentials, Electronic items, home appliance, jewellery, photo centre, toys, outdoor living, funeral, grocery, video games etc Price Walmart business model doesn’t include manufacturing of any product; it procures products across the globe in large quantities in order to enjoy benefits of economies of scale. This makes price of Walmart to offer products at 15% lower price than other retailers. Walmart uses different pricing concepts to get focus of the customers and compel a purchasing behaviour through discount strategies. Sam Walton coined the term “Always lows prices” and “Everyday low prices”; according to this each product is offered at different discount prices based on the time and demand of the hour. The consumer electronics are offered at a very low price compared to other retailers. Place Walmart has more than 10,020 retail units which is spread across 28 countries and operates under 60 banners. It sells both by brick and mortar (traditional stores) and Brick and click (e-commerce) formats. The average size of each Walmart store is more than a 1, 00,000 (1lac) square feet. Its store operations are categorized into following.
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Walmart discount stores Walmart super centers Walmart neighborhood markets Walmart express stores
Promotions Walmart has its own in-store promotional activities which includes sales promotions through product bundling and its pricing strategies. The online store of Walmart earns major revenues from through customers placing online gifts. The pricing strategies adopted by Walmart like “Everyday low prices”, “value of the day” increases the sales turnover. The online store uses strategies to pull customer by attractive slogans like ‘Grab it before it’s done’ which pushes customer to take a purchase decision immediately before the deals get expired.
orters five force analysis for Tata Nano
March 11, 2012 By Arun Kumar Leave a Comment Threat of New entrants The threat of new entrants is very high for the small car industry. The growing economy and the increasing buying power of the customers has made every automobile player to grab the opportunity in small car segment. There are around five new players coming in to the small car market; H800 from Hyundai priced around 1.6 lack, Maruti Cervo 600 priced 1.6 lacks, BajajNissan’s new electric car etc. Non automobile players also have their focus in this segment like Ajanta Manufacturing limited has launched electric car ‘Orevo’. Barriers for entering would include economies of scale, competition from existing players, customer switching costs and the investment decisions. Result: Threat of new entrants is HIGH, hence Industry attractiveness is LOW Threat of substitutes Substitutes for this Tata ‘Nano’ already existed in the market from players like Maruti 800, Chevy Spark, Alto, Estilo, Wagon R, Reva electric car etc. Most of the car manufacturer has a product in this segment to defend their market share in terms of volume. From a customer perspective, the alternative vehicle for a Nano will be either purchase of a new car in small car segment or going for second-hand vehicle of same Nano’s cost. Other substitutes include LPG/Diesel/Petrol auto rickshaws which can be used for both personal and commercial use. Bajaj introduced TVS King, in auto rickshaw segment which had a good response not only for commercial use, but some preferred for personal use as an alternative to small car with fuel efficiency. The customer rational thinking in this buying process will be based on three costs, i.e.
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Cost of the buying the vehicle Maintenance cost ( spares, Fuel ) Resale value of the vehicle ( Depreciation value should be less )
Result: Threat of substitutes is HIGH, hence Industry attractiveness is LOW Bargaining power of suppliers The suppliers for this industry include the supply of raw materials like steel and a lot of components are involved in the Value chain process. Steel which is a major raw material for this industry is constantly increasing in price due to excess demand and availability. For a player like Tata the bargaining power of suppliers is less as it can get constant supply of steel and ancillary parts from its own units like Tata steel, subsidiary of Tata. For other players the bargaining power of suppliers is moderate. Many ancillary industries are opening up near automobile manufacturers realizing that there are lot of opportunities in automobile industry; hence there are lot of suppliers in this industry.
Result: Bargaining power of suppliers is medium, hence Industry attractiveness is moderate Bargaining power of buyers The bargaining power doesn’t have major influence in current scenario as Nano doesn’t have direct alternative in its 600CC product category. But there is availability of substitutes for buyers in terms of vehicle utility. Hence the bargaining power of buyers is medium. Result: Bargaining power of buyers is medium, hence Industry attractiveness is moderate Industry Rivalry Automobile industry in India is growing very rapidly with all major players having their manufacturing base and sales in India. This is a major threat to existing Indian automobile players. With 100% FDI allowed in Indian automobile sector, it is expected there will be more than 20% increase in export sales market. The industry rivalry is very intense from competitors like Maruti, Hyundai and Chevy having a good dominance in their small car segments. Result: Threat from rivals is high, hence Industry attractiveness is low.
You are here: Home / SWOT / SWOT analysis of Bollywood
SWOT analysis of Bollywood
March 6, 2012 By Arun Kumar 1 Comment Strengths
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Bollywood is no more a ‘Made in India’ brand; Bollywood has become an international brand having its global presence in Asia, Africa, Europe, America and Australia. Bollywood produces more than 1000 films per year and has more than fourteen million viewers who visit theatres daily to watch Bollywood movies all over the world. Bollywood movies compete with Hollywood movies for their slots in theatres The volume of Bollywood movies released worldwide has become twice the number of Hollywood movies Bollywood gives employment to many lacks of people around the world Low budget movies have generated more revenues in box office hit
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When referring to “Value vs. Volume” growth, Bollywood has more volume of movies released every year but very few movies get back their return on investments Many movies fail to make even a little impact to the audience as the movie release per month is very high Repetition of story script and duplication of music tracks seldom makes people to lose interest for movies Bollywood movies spoil the rich Indian values and sentiments and inflict wrong culture in younger generation’s mind by influencing western practises and lifestyle Small producers cant shell out more money for their movie promotions and advertisements
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Viewers for Bollywood movie are increasing every year Slumdog Millionaire success which bagged more than $80 million revenue added new dimensions to Bollywood movies International brands like L’Oreal prefer Indian celebrities to be their brand ambassadors for their global market. Reliance Big entertainment has signed deals with production companies of Brad Pitt, George Clooney, Tom Hanks, Nicholas Cage, and Jim Carrey etc The overall Indian movie market is expected to grow at a rate of 14% YOY. Ficci-KPMG report has mentioned in its report that the revenues from Media and Entertainment (M&E) would reach INR 1.3 Trillion by the year 2015. Marketing in M&E has become very powerful with the help of viral marketing, for instance “Why this Kolaveri” was a straight away success.
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Government and sensor board regulations are becoming high due to the increase of adulthood and violence scenes in movies Pirated CDs and DVDs impose a major threat for this industry Movies are watched and shared across internet Many movies face legal issues and threats from political parties during their releases Negative reviews on websites and social media are major threats
You are here: Home / MARKETING MIX'S / Marketing mix of TVS Motors
Marketing mix of TVS Motors
March 4, 2012 By Arun Kumar Leave a Comment TVS Motors is the third largest automobile manufacturer in India next to Hero Moto Corp and Bajaj auto. TVS motors is belongs to TVS group which is $ 2.2 billion. It is the first company to produce indigenous moped and enter into 100 cc two wheeler markets with collaboration of Suzuki. The 19 year old relation with Suzuki was to engage in technology transfer and design suiting to Indian market. In 2001, they had a strain in relationship in continuing the joint venture which led to a separation. Product TVS motors broad product categories include Domestic range, Three wheelers, International range.TVS motors is the only two wheeler automobile which has its penetration all consumer segments. They have products like Apache ATR which caters to sports segment, TVS super XL to rural, Scooty pep to young and dynamic women, Flame and Star City to working professional. Hence their product category meets the needs from rural to urban life style. They also have their presence in three wheeler segments. Recently they launched TVS Jive which is first clutch free bike. Price TVS motor, a unit of TVS group is which is a 100 year old group is known for its strong values. There pricing strategy varies according to product category and the consumer segment. The pricing is often economical pricing with focus on quality and Indian pricing values and sentiments. Place TVS motors have around 2000 country wide main dealer show rooms and service stations attached to it. Manufacturing plants of TVS are located at Hosur, Mysore, Nalagarh and Karawang in Indonesia. There are also sub dealers who are engaged in selling multiple brands in their show rooms with proper agreements. Promotions The promotional strategies involve placing brand ambassadors for each product specific to geographic division (North India and South India).Virat Kohli , Dhoni for North India, Actor Surya and Trisha for south India. The promotional activities include dirt bike rally, MRF super cross championship rally promotional events in Malls etc.TVS motors majorly concentrates on rural markets.
SWOT of Tata nano and why it failed to deliver
February 11, 2012 By Arun Kumar 1 Comment
NANO which is a brain child of Ratan Tata raised hope for a lot of Middle class families by giving them the status of owning a car. Expectations were increasing amongst the customers regarding the product features and its efficiency. Competitors were eagerly waiting for its arrival to find “what’s inside NANO?”. The only factor the customer knew in advance was its price tag of 1 lac as conveyed by Ratan Tata. But why was it not a big hit and why is it still lagging to grab the market in spite of its good and convincing features? We probed into the health of Tata Nano as a brand and as a product and carried out a SWOT analysis on NANO. Strengths Price itself was a major strength factor for the mini magical vehicle which created a sensation all over the world. Even US president Obama was all praises for the Nano during his Indian visit, an appreciation which soon spread across the world. The five seater car Nano from Tata finally arrived in the market. The strengths of the product included its small size, ease in handling and good mileage efficiency. It directly took on the motorcycle market and tried to attach a status symbol to itself such that customers prefer the Nano above buying a motorcycle. Thus they get a four wheeler instead of a two wheeler. However, sales did not happen as expected and Tata Nano lagged behind. What made the brand weak? – Weakness The launch price came in two variants ranging between 1.2 lacs to 1.5lacs. It was 20 – 50% higher then the proposed rates which was a major setback to customers. Within a few months of initial sales, technical problems were found in the product and there were a few reports of Nano catching fire, which further weakened the trust for the brand ‘Nano’ as a whole. Tata also faced political problems and had to shift the plant location which led to production delays. And now due to inflation, Nano’s prices have further increased due to increase in the prices of raw material such as steel, rubber and others. Threats
After the launch of Nano there were many manufacturers who wanted to take advantage of the hype of the Tata nano, and started working on manufacturing an alternative for Nano. Upcoming cars like H800 from Hyundai priced around 1.6 lac, Maruti Cervo 600cc priced around 1.7 lacs to 2lacs were imposing threats to further growth of Nano’s market share. Vehicles like Alto, Chevy Spark and second hand vehicles were major substitutes for Nano. People were looking for alternatives for the main reason that it cannot be much used for driving in highways or long distances as the engine cc is low. The main threat was from an indirect competitor – Motorcycles. Nano was in between motorcycles and car and it was proving to be unreliable due to technical glitches. Thus some people were going for the cost effective solution of buying motorcycles thereby affecting Nano sales. Opportunities Though Nano is considered to be a boon for middle class people ,it is most often bought by the people who already own one or two cars!! Nano is considered to be a vehicle of convenience to drive in metro traffic. Nano 2012 is a new ray of hope in increasing number of sales and making many satisfied customers. The increase in buying power of the younger generation is a major factor for India’s automobile growth. Tata Nano diesel priced at 3.5lacs has already created a hype among its customers as Tata is known for its diesel products with high mileage efficiency like Indica and Indigo CS Even Rata tata has admitted that they were wrong in the positioning of the Nano and that the initial marketing effort was poor. Instead Nano should have been marketed as a utility car rather than a “cheap car”. Many manufacturers are still striving hard to compete with Nano, even they will have many drawbacks and failures and it should be a better product than Nano. Certainly revolutions aren’t usually neat and tidy to start with; hence Nano too is a revolution in Indian Automobile history.
Top 12 marketing rivals of all time
September 11, 2011 By Hitesh Bhasin 5 Comments There are brands which have been known to be far ahead of any competition in their sector. But at the same time, there are also some brands which have been rivals since years. This article lists out some of these marketing rivals. Be kind enough to notify us of any further marketing rivals which you can think of at the end of this column. 12) Walmart vs Others – There is no other way to term this. There is hardly any one competitor to whom we can restrict walmart. Walmart has been and still is one of the biggest names in retail. However, it has met with its own fair share of competition. Some of the major ones being K mart, ShopKo, Dollar stores, along with the advent of online retailers who themselves too take a bit at its market share. 11) McDonalds vs KFC – KFC mainly concentrates on its non vegetarian arsenal whereas McDonalds concentrates on being predominantly a fast food chain. McDonalds today stands way ahead of KFC. The sole reason being the distribution of Mcdonalds and its wide acceptance. McDonalds does meet with tough competition in other countries mainly from Burger king. But McDonalds too will agree that a lot of its TG prefers KFC over McDonalds (i do too. i love KFC more) 10) Aquafina vs Bisleri – Theres no one who has been able to come between them. Yes there are a couple of water brands which stand apart and are able to sell either as premium, or as alternates or as a cheaper option or because no other option is available. But if you compare brand equities then the water market is dominated by these Aquafina and Bisleri. 9) Maggi vs Other noodles – Sunfeast came out with its own range, Top ramen is still fighting in the market, Chings is going good and strong with its different taste, but none of them could beat the King of the noodles segment – Maggi. With an amazing product and marketing mix, Maggi has till date been the best of the best. Sure it will observe some competition in the urban areas. But go a bit rural and you will find only maggi there. Complan vs Horlicks – The two drinks which today spawned a number of alternates in the health drink segment. However, these were the first two and still are on top. There have even been face offs as recent as last year where complan took on horlicks in a TVC. But i am sure the fight will be never ending. 7) Google vs Facebook – Although quite a recent entrant, Facebook has taken the internet world by storm and has even overtaken google in some key statistics. Google will not be left behind and the long term outlook is definitely favourable to google as compared to Facebook. Nonetheless they remain the most talked of rival in the online space.
6) Apple vs Microsoft vs IBM – If we talk about the online space then what about offline? Microsoft and IBM have been hitting each other since years. Although their niche is different (Microsoft is consumer and IBM is institutional) both have had their ups and downs. But then entered the MOST INNOVATIVE BRAND EVER and it has slowly and steadily been taking away Microsofts customers. Apple has launched really innovative desktop as well as laptopns and although microsoft is essential because of its lovely software, Apple cannot be left far behind because of its lovely hardware 5) Vodafone vs Airtel – The zoozoo’s vs Rural power. The spread of Aitel in India is amazing and it is the leading player till date. However the rivalry cannot be unnoticed. Where the major expense for Vodafone is to stay ahead through marketing, Airtel on the other hand is trying to rebrand itself with a greater focus on higher spread and acquiring new markets. Where will this feud end? Well if it ends, then they wouldnt be mentioned here would they 4) Domino’s vs Pizza hut – Wanna have a pizza? Either order it home or search for a Pizza hut. Pizza hut is scarcely available and does not have as many outlets as dominos. Thats why dominos wins on the distribution part. But if you talk about product quality and depth, than Pizza hut wins hands down. One of the primary reasons pizza hut wins is the sheer variety of products and the ambiance found in its fast food chain. But yes, is it available at large? No. 3) Mercedes vs BMW – These 2 have been rivals from years. However they have been overtaken by the presence of other luxury cars like Audi, Ferrari. Lamborghini and others. Both BMW and Merc come in premium as well as semi premium segments and have an amazing positioning in their consumers mind. Although BMW has a better brand equity and product variety today, Mercedes too is trying hard to get back and bring higher sales volume. 2) HUL vs P & G – They are the David and Goliath of the FMCG market. There is hardly any category where HUL or P&G is not present. And each of these categories sees a war currently going on between them. Whatever P&G does, HUL is not far behind and matches it step to step. The mother brand HUL is in fact beginning to dominate the Indian markets. 1) Pepsi vs coke – The cola wars starts and ends with Pepsi and Coke. The competition in this sector just between 2 players has been so high that no other major brand has been able to enter the same till date. Where pepsi mainly targets youngsters, coke targets values and has a much higher distribution as compared to pepsi. It also has a very high brand equity which pepsi has not been able to match till date. Although Coke is a leader, the fight of these two cola majors has never dimmed and till date they remain the top marketing rivals ever. Can you think of any other Marketing rivals which are attacking each others throat since ages? Kindly comment on the same.
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