Description
The new product's, a compact car, marketing strategy.
MARKETING MANAGEMENT
ASSIGNMENT
Model: COMPACTZ
Redefining Elegance
Submitted by groups B2 C1 F1 P1
PRODUCT
Redefining Compact Elegant Exteriors ? ? ? ? Stylish design High mount stop light Curvy Head lamp Sporty tail lamp
Elegant Interiors ? ? ? ? Roomy Interiors 3-seat rear seating Rich Upholstery Elegant Instrument Cluster
Elegant Convenience ? ? ? ? ? ? Electronic power steering Multi trip meter Shopping hook Cup/Can holder Remote fuel lid & Tail gate opener Accessory socket
Elegant Space ? ? ? Spacious boot space Flexible space management Spacious leg space
Elegant Technology ? 32 bit onboard microprocessor
?
Gas filled shock absorber
Elegant Safety ? ? ? Intelligent Computerised Anti-Theft System Best in class Seat belts Rear door child safety locks
Equipment List Exteriors Stylish front bumper High mount stop light Outside rear view mirror Body color bumpers Front Wiper Radial tyres LX * * * * * * VX * * * * * *
Interiors Adjustable front seat head rest Adjustable rear seat head rest Cloth Upholstery Cup Holder Front and rear door packet Moulded roof lining and floor carpet Luggage compartment carpet Front door arm rest Cabin Lamps Reclining and sliding front seat
LX * * * * * * * * * *
VX * * * * * * * * * *
Instrument Panel
LX
VX
Speedometer Electronic Multi Trip Meter Integrated Stereo
* *
* * *
Convenience Air Conditioner with Heater Rotary AC Control Electronic Power Steering Full Flat Front Seat Folding Rear Seat Remote Fuel Lid Opener Central Door Locking Power Windows (Front) Remote Tail gate opener
LX * *
VX * * *
* * *
* * * * *
*
*
Safety Intelligent Computerized Anti-theft System Child-proof rear door lock Halogen Headlamp
LX * * *
VX * * *
PRICING STRATEGY FOR THE COMPACT CAR
The approximate market-prices of other compact cars are considered below before deciding the price: Maruti Suzuki Alto Maruti Suzuki WagonR Hyundai Santro Zing 2.7 L onwards 3.4 L onwards 3.3 L onwards
Maruti Suzuki Swift
3.8L onwards Pricing of the compact car Standard Version Deluxe Version 364999 0.14 313899.14 51099.86 204034.441 109864.699
Sales Price Margin on sales in % Cost Price Profit Manufacturing Cost (65%) Other Costs
299000 0.09 272090 26910 176858.5 95231.5
Additional Manufacturing Cost for deluxe version is 27000/Additional Features’ Cost in Deluxe Version Approx. Market Price Power Steering Stereo Power Windows (Front only) Central Locking Total 9000 4000 40000 6000 2500 27500 18000 9000 Approx. Wholesale 12000 7000
The pricing has been done to keep the value for money in mind. Also psychological pricing is done to attract more customers STP (Segment Targeting Position) Multiple Segments: middle class (low to medium income group), age 20-50 yrs, family people/youngsters, small/medium/large towns and cities Target: urban middle class, age 25-50 yrs, family people Position: Family Car/Value for money
CHANNEL
Normal Selling The channel for distribution/sales for this car will be level1. In this there will be three parties other than the consumer i.e manufacturer, zonal depot and dealer. First the car will go from manufacturing/production to the zonal depot for storage. This zonal depot can be company owned or owned by 3rd party. Here the cars will be held for delivery to various dealers across the states in that particular zone. At this stage also ownership of the car is with the company. After this the car will go to the dealers. At this stage ownership will be transferred to the dealers. The dealers will then sell the cars to customers in the normal way.
Internet selling Customers can visit our website and find out about the nearest dealers and the current prices of the car. They can get information about the specifications of the car. Also they can get information on financing and insurance of a car. A brochure on the same can be e-mailed to people who want it after getting their e-mail id. They can compare features across variants and find out parts of accessories/servicing etc. They can book the car and ask for a test drive if required. Our sales executive will visit the mailing address provided and complete the required formalities. A car used for test drive will be driven to the customer’s place if they have asked for a test drive. Depending on whether the customer asks for financing and insurance, respective options will be provided and taken care of.
For selecting number of dealers we have looked at two factors, which we feel will influence demand the most 1) Population 2) Per capita income
Based on this information we have segregated locations into tier-1, tier-2 and tier-3 Tier-1 consists of cities where population is above 2000000 and where the state’s per capita income is above 30000. Also all metros have been included as well as high income and high spending places like Bangalore, Hyderabad, etc. e.g Mumbai, Kolkata, Hyderabad, Bangalore, Chennai, Pune, Surat, Ahmedabad, etc. Tier-2 consists of consists of cities where population is below 2000000 and above 1000000 and where the state’s per capita income is above 30000. It also consists of consists of cities where population is above 2000000 and where the state’s per capita income is below 30000. e.g Thane, Agra, Baroda, Nasik, Rajkot, Aurangabad, etc.
Tier-3 consists of consists of cities where population is below 2000000 and above 1000000 and where the state’s per capita income is below 30000. In addition it consists of all cities where population is below 1000000. It also includes all rural areas. e.g Madurai, Jodhpur, Kota, Aligarh, Raipur, etc. For tier-1 cities we will have 6-8 dealers per city. For tier-2 the number will be 3-4 while for tier3 it will be 1-2.
PROMOTION
The promotion of the car is to be projected with the major criterion of “value for money” which explains the basic necessity of introducing the car in the market. This promotion includes several of the existing options of targeting to the specific segment of people present. The segment of target includes that of high income based middle class people who can afford a car, the family segment precisely that of nuclear families that the entire family can travel in the car & also the major segment would be of middle class office goers who would use a car for their offices in a daily basis. The main feature to promote would also include the compactness of the vehicle as this can cater to the present day needs of car parking which is turning out to be a huge debacle as people avoid cars fearing the lack of place for parking, the compactness of our
product means we can cater to those people who fear the aspect of parking in metros and other major cities. The promotion also includes the means of capturing the other aspects like decent mileage compared to other segment cars which give significantly lesser mileage. The different mode of promotion would be explained below which we think would suit the needs of major market share as projected in our financial pricing. The first would be that of the launching of the car in a major auto exhibition which would happen in typically winter season in India or the summer season in Europe. As this would create a flutter in the market regarding the introduction of a newer car. This would result in viral marketing which would enhance the hype that is created around the car and the brand. This launch would be followed by putting up advertising hoards at different parts of a city or town and try to capture the extensive mood of the common people with in and out advertising and popularizing the car model. We also would ensure that the car is being endorsed by a celebrity so that the people can relate them easily to the brand or the car. Also develop sponsorship deal with any big event so that the business strategy would be popularized resulting in the increased market share for our model of car. As the 2 different models are planned the advertisement shall be in a comparative mode also involving the different advantages for different models introduced. The print media is the very own means of developing the positive growth for the car, by this also we can dominate in explaining the advantage of our cars compared to other models in the same segment. Also the television media is one more important means through which we can popularize the product all over the nation and improve the sales and market share of our model of car. In the print ads also we can concentrate for a detailed advertisement in a auto review magazine explaining all the features, price, efficient etc. and also render out several colors and other models available in that segment of car. Tryvertising: We can introduce test drive of the car, so that the people get option of feeling the comfort and other features of the car. Also by this test drive we introduce new facilities
like online booking for test drive as well as telephone booking for test drive of the vehicle. We can conduct road shows for this vehicle as this would result in people thronging to witness it and which results in extensive publicity for the model. Also we can give away merchandise containing t-shirts and caps for people participating in road shows with the model name and logo printed on it. The company can offer some competitions like lucky draws and other small competitions to give away prizes to participants and winners of competitions. The dealers for our brand of vehicles could be instructed to roll out pamphlets involving some special offers with limited period to be distributed in that particular locality by giving along with the newspapers, through different store purchases etc. as this would result in increased popularity and indeed could result in increase in sales of the automobile. The metros and other major cities have the advantage of advertising through FM radio as this is one medium of communication where almost all parts of the city is listening to. We can develop some sponsorship with these FM’s as they will result in popularizing the brand and model. The company could also offer some offers like forming deals with major financing banks to reduce the interest or other particulars like waiver of processing fee etc. The company could indulge in sponsoring events at colleges as this will popularize the model among students and other people related to students.
This advertising campaigns and publicizing activities would depend entirely on the pricing strategy and entirely depend on the contribution, profits earned. The marketing budget would be estimated around 25% of the profits. Once the market share for the car is acquired we can reduce the marketing expenditure proportionally. But marketing budget has to be in tunes with the manufacturing expenses also as the turn over should be high in terms of resource utilization.
doc_390892393.docx
The new product's, a compact car, marketing strategy.
MARKETING MANAGEMENT
ASSIGNMENT
Model: COMPACTZ
Redefining Elegance
Submitted by groups B2 C1 F1 P1
PRODUCT
Redefining Compact Elegant Exteriors ? ? ? ? Stylish design High mount stop light Curvy Head lamp Sporty tail lamp
Elegant Interiors ? ? ? ? Roomy Interiors 3-seat rear seating Rich Upholstery Elegant Instrument Cluster
Elegant Convenience ? ? ? ? ? ? Electronic power steering Multi trip meter Shopping hook Cup/Can holder Remote fuel lid & Tail gate opener Accessory socket
Elegant Space ? ? ? Spacious boot space Flexible space management Spacious leg space
Elegant Technology ? 32 bit onboard microprocessor
?
Gas filled shock absorber
Elegant Safety ? ? ? Intelligent Computerised Anti-Theft System Best in class Seat belts Rear door child safety locks
Equipment List Exteriors Stylish front bumper High mount stop light Outside rear view mirror Body color bumpers Front Wiper Radial tyres LX * * * * * * VX * * * * * *
Interiors Adjustable front seat head rest Adjustable rear seat head rest Cloth Upholstery Cup Holder Front and rear door packet Moulded roof lining and floor carpet Luggage compartment carpet Front door arm rest Cabin Lamps Reclining and sliding front seat
LX * * * * * * * * * *
VX * * * * * * * * * *
Instrument Panel
LX
VX
Speedometer Electronic Multi Trip Meter Integrated Stereo
* *
* * *
Convenience Air Conditioner with Heater Rotary AC Control Electronic Power Steering Full Flat Front Seat Folding Rear Seat Remote Fuel Lid Opener Central Door Locking Power Windows (Front) Remote Tail gate opener
LX * *
VX * * *
* * *
* * * * *
*
*
Safety Intelligent Computerized Anti-theft System Child-proof rear door lock Halogen Headlamp
LX * * *
VX * * *
PRICING STRATEGY FOR THE COMPACT CAR
The approximate market-prices of other compact cars are considered below before deciding the price: Maruti Suzuki Alto Maruti Suzuki WagonR Hyundai Santro Zing 2.7 L onwards 3.4 L onwards 3.3 L onwards
Maruti Suzuki Swift
3.8L onwards Pricing of the compact car Standard Version Deluxe Version 364999 0.14 313899.14 51099.86 204034.441 109864.699
Sales Price Margin on sales in % Cost Price Profit Manufacturing Cost (65%) Other Costs
299000 0.09 272090 26910 176858.5 95231.5
Additional Manufacturing Cost for deluxe version is 27000/Additional Features’ Cost in Deluxe Version Approx. Market Price Power Steering Stereo Power Windows (Front only) Central Locking Total 9000 4000 40000 6000 2500 27500 18000 9000 Approx. Wholesale 12000 7000
The pricing has been done to keep the value for money in mind. Also psychological pricing is done to attract more customers STP (Segment Targeting Position) Multiple Segments: middle class (low to medium income group), age 20-50 yrs, family people/youngsters, small/medium/large towns and cities Target: urban middle class, age 25-50 yrs, family people Position: Family Car/Value for money
CHANNEL
Normal Selling The channel for distribution/sales for this car will be level1. In this there will be three parties other than the consumer i.e manufacturer, zonal depot and dealer. First the car will go from manufacturing/production to the zonal depot for storage. This zonal depot can be company owned or owned by 3rd party. Here the cars will be held for delivery to various dealers across the states in that particular zone. At this stage also ownership of the car is with the company. After this the car will go to the dealers. At this stage ownership will be transferred to the dealers. The dealers will then sell the cars to customers in the normal way.
Internet selling Customers can visit our website and find out about the nearest dealers and the current prices of the car. They can get information about the specifications of the car. Also they can get information on financing and insurance of a car. A brochure on the same can be e-mailed to people who want it after getting their e-mail id. They can compare features across variants and find out parts of accessories/servicing etc. They can book the car and ask for a test drive if required. Our sales executive will visit the mailing address provided and complete the required formalities. A car used for test drive will be driven to the customer’s place if they have asked for a test drive. Depending on whether the customer asks for financing and insurance, respective options will be provided and taken care of.
For selecting number of dealers we have looked at two factors, which we feel will influence demand the most 1) Population 2) Per capita income
Based on this information we have segregated locations into tier-1, tier-2 and tier-3 Tier-1 consists of cities where population is above 2000000 and where the state’s per capita income is above 30000. Also all metros have been included as well as high income and high spending places like Bangalore, Hyderabad, etc. e.g Mumbai, Kolkata, Hyderabad, Bangalore, Chennai, Pune, Surat, Ahmedabad, etc. Tier-2 consists of consists of cities where population is below 2000000 and above 1000000 and where the state’s per capita income is above 30000. It also consists of consists of cities where population is above 2000000 and where the state’s per capita income is below 30000. e.g Thane, Agra, Baroda, Nasik, Rajkot, Aurangabad, etc.
Tier-3 consists of consists of cities where population is below 2000000 and above 1000000 and where the state’s per capita income is below 30000. In addition it consists of all cities where population is below 1000000. It also includes all rural areas. e.g Madurai, Jodhpur, Kota, Aligarh, Raipur, etc. For tier-1 cities we will have 6-8 dealers per city. For tier-2 the number will be 3-4 while for tier3 it will be 1-2.
PROMOTION
The promotion of the car is to be projected with the major criterion of “value for money” which explains the basic necessity of introducing the car in the market. This promotion includes several of the existing options of targeting to the specific segment of people present. The segment of target includes that of high income based middle class people who can afford a car, the family segment precisely that of nuclear families that the entire family can travel in the car & also the major segment would be of middle class office goers who would use a car for their offices in a daily basis. The main feature to promote would also include the compactness of the vehicle as this can cater to the present day needs of car parking which is turning out to be a huge debacle as people avoid cars fearing the lack of place for parking, the compactness of our
product means we can cater to those people who fear the aspect of parking in metros and other major cities. The promotion also includes the means of capturing the other aspects like decent mileage compared to other segment cars which give significantly lesser mileage. The different mode of promotion would be explained below which we think would suit the needs of major market share as projected in our financial pricing. The first would be that of the launching of the car in a major auto exhibition which would happen in typically winter season in India or the summer season in Europe. As this would create a flutter in the market regarding the introduction of a newer car. This would result in viral marketing which would enhance the hype that is created around the car and the brand. This launch would be followed by putting up advertising hoards at different parts of a city or town and try to capture the extensive mood of the common people with in and out advertising and popularizing the car model. We also would ensure that the car is being endorsed by a celebrity so that the people can relate them easily to the brand or the car. Also develop sponsorship deal with any big event so that the business strategy would be popularized resulting in the increased market share for our model of car. As the 2 different models are planned the advertisement shall be in a comparative mode also involving the different advantages for different models introduced. The print media is the very own means of developing the positive growth for the car, by this also we can dominate in explaining the advantage of our cars compared to other models in the same segment. Also the television media is one more important means through which we can popularize the product all over the nation and improve the sales and market share of our model of car. In the print ads also we can concentrate for a detailed advertisement in a auto review magazine explaining all the features, price, efficient etc. and also render out several colors and other models available in that segment of car. Tryvertising: We can introduce test drive of the car, so that the people get option of feeling the comfort and other features of the car. Also by this test drive we introduce new facilities
like online booking for test drive as well as telephone booking for test drive of the vehicle. We can conduct road shows for this vehicle as this would result in people thronging to witness it and which results in extensive publicity for the model. Also we can give away merchandise containing t-shirts and caps for people participating in road shows with the model name and logo printed on it. The company can offer some competitions like lucky draws and other small competitions to give away prizes to participants and winners of competitions. The dealers for our brand of vehicles could be instructed to roll out pamphlets involving some special offers with limited period to be distributed in that particular locality by giving along with the newspapers, through different store purchases etc. as this would result in increased popularity and indeed could result in increase in sales of the automobile. The metros and other major cities have the advantage of advertising through FM radio as this is one medium of communication where almost all parts of the city is listening to. We can develop some sponsorship with these FM’s as they will result in popularizing the brand and model. The company could also offer some offers like forming deals with major financing banks to reduce the interest or other particulars like waiver of processing fee etc. The company could indulge in sponsoring events at colleges as this will popularize the model among students and other people related to students.
This advertising campaigns and publicizing activities would depend entirely on the pricing strategy and entirely depend on the contribution, profits earned. The marketing budget would be estimated around 25% of the profits. Once the market share for the car is acquired we can reduce the marketing expenditure proportionally. But marketing budget has to be in tunes with the manufacturing expenses also as the turn over should be high in terms of resource utilization.
doc_390892393.docx