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Marketing Management Foundation Assignment

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Added on  2021-03-22

Marketing Management Foundation Assignment

   Added on 2021-03-22

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Marketing Management Foundation Concepts Project Report HATCHBACK CARS IN INDIA -BEFORE AND AFTER NISSAN MICRA DRIVEN BY: GROUP – 2MBAEX 15/14 – Badgujar Sunil Govind MBAEX 18/14 –Deepak Verma MBAEX 21/14 – Himanshu Jain MBAEX 42/14 – Sachin Gupta MBAEX 67/14 – Visweswara Rao Kolli MBAEX 50/14 – Shitij Kakkar Kitna Deti Hai? Tez Bhagti Hai? Kitne Features Hai? Stylish Hai?
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Contents Introduction ................................................................................................................................................................ 2 Consumer Behaviour................................................................................................................................................... 2 Segmentation ............................................................................................................................................................. 3 Targeting .................................................................................................................................................................... 3 Positioning .................................................................................................................................................................. 4 Brand Endorsement .................................................................................................................................................... 5 Marketing Mix ............................................................................................................................................................ 5
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Introduction Automobile industry has been playing crucial role in growth of Indian GDP. But off late, the industry has not been performing well because of various reasons including Cab services and rise of metro rails across various 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. The industry should take advantage of the growing income levels in a one of the fastest growing countries and biggest economies in the world. In this project, we are analyzing various marketing strategies adopted by the Hatchback car brands before and after Nissan Micra. Nissan Micra and other foreign Hatchbacks players entered the market in the year 2010-11. At this time, there was a noticeable increase in hatchback cars owing to various reason including growing family incomes, growth in commercial (cab) services, etc. We shall see how marketing activities done by car brands evolved with the change in consumer behavior over the past decade (pre-2010 vs. post 2010). Consumer Behaviour Entry of Nissan in the Indian market did not only bring new foreign brands into the hatchback market but also 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, witnessed that the Indian consumers is not only price sensitive but also looking at the overall value added by the hatchback 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, primarily those buyers who were upgrading from a 2W. Hence, the self-advancement value was still attached to the most basic segment in 4W market. References from family and friends were the major influencers in information search, while spouse and children were greatest influencers in decision making as the ‘karta’ of Indian household was purchasing car for the ‘family’. Post-2010, entry of foreign players, along with the increase in disposable incomes and surge in internet penetration, 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 the definition of hatchbacks. Hatchbacks evolved from just providing a functional value to providing more value expressive benefits such comfort, latest tech. features, and style. It would be wrong to say that conform, features, and style overpowered the basic functional consideration, but indeed these benefits created their space in the buying 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 most influential ways of taking customer through the purchase journey. Also, an increase in the disposable income, worsening traffic, and problems faced in parking in marketplaces 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/ value expressive benefits. For example, the buyers of hatchbacks such as Vokswagon Polo are more concerned
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about the performance of the car and thrill in driving rather than about the functional benefits a car can typically provide. Segmentation Buying a car will be a middle spectrum decision for a buyer; the purchase decision will be based on how strongly a car can enhance their self-image and social image. Apart from this, there are many other decision variables that are influencing a purchase decision for a buyer. Below is a list of these variables: KEY SEGMENTATION VARIABLES BEFORE MICRA AFTER MICRA Reason for Purchase Functional benefits; a car for family; social enhancement Functional plus Value expressive benefits such as independent, performance, style, etc. Decision Roles Family had a huge say in final decision New independent buyers emerged with independent decision making; family still plays a role for certain buyers Buyer Status Existing buyer vs. new buyer Existing buyer vs. new buyer Frequency of usage More frequency corresponds to want of lower operational costs No Change Brand loyalty Typically, brand loyalty came due to lifetime value given by the car No Change Usage Personal vs. Taxi With shift in sharing economy, usage for taxi has increased Attitude towards a brand Typically, positive attitude towards brands such as Maruti and Hyundai Attitude still positive about Indian brands, but people have started trusting foreign brands as well Aesthetics Little or limited say in decision process Significant say in buying decision Performance Little or limited say in decision process Significant say in buying decision Price sensitivity Very high Comparatively low These 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 buyer personas. The demographic variables may include: Age Family income Gender Location Marital status Targeting Some of the prominent (target) segments/ personas that could arise after thorough segmentation exercise Of the Indian Hatchback car market is:
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