A CAR IN TROUBLE

INTRODUCTION
 A KOREAN CO.  CAME INTO BEING IN 1967  DIVERSIFIED ITSELF IN THE FIELDS OF GENERAL TRADING ,CONSTRUCTION, MACHINERY,AUTOMOBILES ETC.

ENTRY IN INDIA
 ENTERED INDIAN MARKET IN 1995 UNDER THE NAME OF DAEWOO MOTORS INDIA LTD.  REGARDED AS A MILESTONE FOR THE INDUSTRY  FIRST CAR WAS 1500cc CIELO LAUNCHED IN JULY1995

WHAT WENT WRONG AT DAEWOO INDIA?

PITFALLS
Lack of Marketing Survey High Import Content High Cost of Spare Parts Technological Incompatibility Poorly trained Staff Recession Leading to Lack of Demand

PITFALLS ( contd….)
Assumptions Promotional Campaign Hefty Price Cuts CIELO after the launch of Matiz Differentiation between CIELO & NEXIA

The Four P’s framework
PRODUCT PLACE PROMOTION PRICE

CIELO VS. ESTEEM

The Four A’s………
AWARENESS ADOPTABILITY ACCESSIBILITY AFFORDABILITY

CONFUSED POSITIONING “DAEWOO is good at making cars, but
rotten at marketing them.”
Analyst, in 2000 -An Automobile Industry

POSITIONING BLUNDER:
FREQUENT CHANGES IN POSITIONING…..  The family car positioning did not match with the premium image Cielo was trying to project in the beginning.  The premium communication began to clash with subsequent value-formoney initiatives that followed.  Cielo began on a technology with

DEVELOPING AND COMMUNICATING A POSITIONING STRATEGY
Identifying positioning platform.  communicate the USP of their product. Since product leadership and operational excellence was tough, focus on customer intimacy and a customer base. Developing a positioning statement and sticking to it.

Segmenting & Targeting
• First Mover Advantage (luxury segment) • Higher

Income

Group

• Corporate • Taxi & Hotel Fleet

Problems with its target customer
Lack of knowledge of Indian market. Most of the prospective buyers

already owned an esteem.
Liquidity

crunch in the economy resulted in demand declining sharply from the individual as well as corporate segments

Problems with its target customer
Most of the prospective buyers

already owned an esteem.
Lack of knowledge of Indian market. Liquidity

crunch in the economy resulted in demand declining sharply from the individual as well as corporate segments

What they could have done
Should have followed “Think Global Act Local

Policy”.
Should have researched the Indian Market Could have reduced the Imports  Should have visibly differentiated CIELO and

NEXIA.

Main aim should have been to create value

and not just sell cars.

Should not have neglected cielo after

matiz.

Should have positioned cielo as a car

which provided enough value to be the 2nd car for a person.

Should have catered to the latent needs of

Indian people and not follow reaction policy.

Should not have come up with ad

campaigns which were contrary to cielo’s positioning Should not have reduce price of cielo as the car lost it’s credibility Should have ensured high quality standards Properly trained and skilled sales staff should have been used. Should have improved dealership &