Marketing Management Foundation Assignment

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Marketing Management Foundation ConceptsProject ReportHATCHBACK CARS IN INDIA -BEFORE AND AFTERNISSAN MICRADRIVEN BY:GROUP – 2MBAEX 15/14 – Badgujar Sunil GovindMBAEX 18/14 –Deepak VermaMBAEX 21/14 – Himanshu JainMBAEX 42/14 – Sachin GuptaMBAEX 67/14 – Visweswara Rao KolliMBAEX 50/14 – Shitij KakkarKitna Deti Hai?Tez Bhagti Hai?Kitne Features Hai?Stylish Hai?
ContentsIntroduction ................................................................................................................................................................ 2Consumer Behaviour................................................................................................................................................... 2Segmentation ............................................................................................................................................................. 3Targeting .................................................................................................................................................................... 3Positioning .................................................................................................................................................................. 4Brand Endorsement .................................................................................................................................................... 5Marketing Mix ............................................................................................................................................................ 5
IntroductionAutomobile industry has been playing crucial role in growth of Indian GDP. But off late, the industry hasnot been performing well because of various reasons including Cab services and rise of metro rails acrossvarious cities in the country. At this juncture, it is pertinent for various manufacturers in the industry to re-verify their segmentation and other aspects of marketing like product, promotion, place, and pricing. Theindustry should take advantage of the growing income levels in a one of the fastest growing countries andbiggest economies in the world.In this project, we are analyzing various marketing strategies adopted by the Hatchback car brands beforeand after Nissan Micra. Nissan Micra and other foreign Hatchbacks players entered the market in the year2010-11. At this time, there was a noticeable increase in hatchback cars owing to various reason includinggrowing family incomes, growth in commercial (cab) services, etc. We shall see how marketing activitiesdone by car brands evolved with the change in consumer behavior over the past decade (pre-2010 vs. post2010).Consumer BehaviourEntry of Nissan in the Indian market did not only bring new foreign brands into the hatchback market butalso a huge shift in the buying behaviour and considerations of an Indian consumer.Pre-2010 era, which was primarily, marked by cars such as Maruti 800, Alto, Swift, and Santro, witnessedthat the Indian consumers is not only price sensitive but also looking at the overall value added by thehatchback brands. These value-adds (mostly functional) could be in terms of design, low maintenance,fuel-efficiency, or build quality. Further, hatchbacks were preferred choice for first time buyers, primarilythose buyers who were upgrading from a 2W. Hence, the self-advancement value was still attached to themost basic segment in 4W market.References from family and friends were the major influencers in information search, while spouse andchildren were greatest influencers in decision making as the ‘karta’ of Indian household was purchasing carfor the ‘family’.Post-2010, entry of foreign players, along with the increase in disposable incomes and surge in internetpenetration, gave rise to a new era in the Indian hatchback segment. Entry of players such as Nissan Micra,Volkswagen Polo, Ford, and Chevrolet (including BMW Mini) changed thedefinition of hatchbacks.Hatchbacks evolved from just providing a functional value to providing more value expressive benefits suchcomfort, latest tech. features, and style. It would be wrong to say that conform, features, and styleoverpowered the basic functional consideration, but indeed these benefits created their space in thebuying considerations of a hatchback buyer.Regarding information search, market witnessed a major shift from information search from family,friends, and personal selling agents to internet search. But still, personal selling remained one of the mostinfluential ways of taking customer through the purchase journey.Also,anincreaseinthedisposableincome,worseningtraffic,andproblemsfacedinparkinginmarketplaces have driven existing car owner to buy a second car mostly to fulfil functional needs. Further,new first-time users have emerged who now consider purchasing a hatchback for more aspiration/ valueexpressive benefits. For example, the buyers of hatchbacks such as Vokswagon Polo are more concerned
about the performance of the car and thrill in driving rather than about the functional benefits a car cantypically provide.SegmentationBuying a car will be a middle spectrum decision for a buyer; the purchase decision will be based on howstrongly a car can enhance their self-image and social image. Apart from this, there are many otherdecision variables that are influencing a purchase decision for a buyer. Below is a list of these variables:KEY SEGMENTATION VARIABLESBEFORE MICRAAFTER MICRAReason for PurchaseFunctional benefits; a car for family;social enhancementFunctional plus Value expressivebenefits such as independent,performance, style, etc.Decision RolesFamily had a huge say in finaldecisionNew independent buyers emergedwith independent decision making;family still plays a role for certainbuyersBuyer StatusExisting buyer vs. new buyerExisting buyer vs. new buyerFrequency of usageMore frequency corresponds to wantof lower operational costsNo ChangeBrand loyaltyTypically, brand loyalty came due tolifetime value given by the carNo ChangeUsagePersonal vs. TaxiWith shift in sharing economy, usagefor taxi has increasedAttitude towards a brandTypically, positive attitude towardsbrands such as Maruti and HyundaiAttitude still positive about Indianbrands, but people have startedtrusting foreign brands as wellAestheticsLittle or limited say in decisionprocessSignificant say in buying decisionPerformanceLittle or limited say in decisionprocessSignificant say in buying decisionPrice sensitivityVery highComparatively lowThese variables act as different dimensions on which clusters of consumers are identified. Of these cluster,some specific high profitability segments (low hanging fruits) are selected for the Hatchback segment.After selecting relevant segments, other demographic variables are added to create prominent buyerpersonas. The demographic variables may include:AgeFamily incomeGenderLocationMarital statusTargetingSome of the prominent (target) segments/ personas that could arise after thorough segmentation exerciseOf the Indian Hatchback car market is:
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