Marketing Plan

For
Mid Sized Sedan

Submitted To: Submitted By:

Dr. S. Khetkar Preety Sharma

Soumyani
Chatterjee Kapil
Dev Aggarwal
Sandeepan Das
Deepshikha Singh
Mayank Varshney
Company Name: Grand Motors Ltd.

Product category: MID- SIZED SEDAN

Product Name: ELFIN

Introductory Colors: Black, Silver, White ,Red ( although option of customization would be
there later on)

Price Range : Rs 6,00,000 – Rs 9,50,000

Product Details:

Technical Specifications:

 All Aluminium four Cylinder 16 valve DOHC common rail diesel engine (turbo charged)
 Capacity=1598 cc
 Max. Power= 102 bhp @ 4000 rpm
 Max. Torque= 240 Nm@ 1800-2900 rpm
 Emission= Bharat Stage 4
 Fuel Tank=55 litres
 L/W/H= 4530/1750/1570mm
 Wheelbase= 2650 mm (longest in class)

Important Features:

 Keyless Entry
 ABS with EBD (Anti-lock Braking System with Electronic Brake Force Distribution)
 Dual Front Airbags
 Side curtain Airbags(4) (segment first)
 Engine Start/Stop button (segment first)
 Alloy wheels
 Automatic A/C
 Inbuilt Touch screen Navigation System(GPS) (segment first)
 Parking Assist (segment first)
 Bang & Olufsen 8 speaker USB & Auxiliary Input compatible Music system (segment
best)
 Bi-xenon headlamps (segment first)
USPs

 All Aluminium diesel engine (Aluminium=light weight, frugal engine)

 Side curtain Airbags(4) (segment first, more safety)
 Engine Start/Stop button (segment first, more comfort)
 Touch screen Navigation System (GPS) (segment first, easier navigation & comfort)
 Parking Assist (segment first, more safety & convenience)
 Bang & Olufsen 8 speaker USB & Auxiliary I/P compatible Music system (segment best)
 Bi-xenon headlamps (segment first, more safety)
 Wheelbase= 2650 mm (longest in class, more interior space)

Car Design:
 EXECUTIVE SUMMARY

The automotive industry has had a tremendous revival after the financial turmoil, which saw
the Detroit Big 3 (Ford, Chrysler, and GM) in dire straits. Sedan models have long been
associated with comfort, luxury and style. Basically, a sedan or saloon car is a passenger car,
which has two rows of seats and ample space for passengers in the rear compartment. The
body style of sedan includes four-door, two-door, and fastback models. With India’s growing
status and thriving economy, the demand for sedan models has increased rapidly.The product
introduced by our company , Grand Motors Ltd. i.e. Elfin caters basically to the need of those
customers whose pocket do not allow them for buying luxury cars but they still want to enjoy
the position of a car owner and that too of stylish and reliable product. There has been a
renewed interest in consumers for cars and demand has revived.

This has led the consumers to be spoilt for choices, but meanwhile has made the competition
for manufacturers tough. Our product is an initiative to undercut the existing manufacturers, by
giving the consumers a plethora of option in terms of features never seen in this segment. Also
the consumer has the free right to customize his car at an additional cost. Customization
previously was an option only if you buy a Lamborghini, a Rolls Royce, or a Mercedes. The
consumer today is willing to spend and spend to get value for each paisa. Keeping that in mind,
the cost factor was a pivotal point to have a control on and it has been taken care off by having
a localization content of above 90%.

Target Customers would be basically the upper middle class people or specifically saying then
working professionals, since last 2-3 years, percentage of working professionals has been on the
rise. The Indian automobile industry attained a new peak during 2009-10, when it sold more
than a million units of passenger cars, to emerge as one of key players in the global automotive
arena. India’s economic growth and motor vehicle growth are directly correlated with each
other .

The sedan segment in India that at present contributes around 25% to total car sales has been
gaining in numbers over the last few years, riding the rising aspirations of people and increasing
purchasing power. And despite the slowdown, the segment has managed a growth of 3%,
which can be considered significant considering the overall big-volume small car market degrew
by 2%.
 CURRENT MARKET SITUATION AND TRENDS

The market for mid size sedans has seen a steady growth year on year. Mid Size sedan segment
grew by 11 % during April-December selling more than 1,90,000 cars.

 Volkswagen exploring synergies it can form, by utilising its stake in Maruti.

 Latest entrant in the mid size segment is Volkswagen Vento.
 The current mid size segment market leader is Honda City.
 Companies currently absent in the mid size segment, are planning a product portfolio in
this segment. Expect a slew of new car roll-out within the next year.
 Many companies have a wide offering within the mid-segment. That though cannibalises
sales of one product, helps in achieving higher sales for the company. Consumers are
willing to pay for additional features
 Features previously not seen in the entry level mid size segment are slowly but steadily
making headway into the segment.(e.g.-Airbags, Automatic Air conditioner, Blue-Me
technology)
 Manufacturers have started providing alternate fuel technology (e.g.-LPG/CNG) as an
option, as demand for CNG/LPG fittings in grey market is increasing.
 Mission & Objectives

Mission:
Grand Motors Ltd. aims at major improvements in value delivered, mostly reductions in cost.
Usually the cost reductions stem from consolidation and rationalization in the channel as better
concepts or bigger players drive out marginal or small players.
Here channel evolution is focused on meeting the needs of specific customer segments.

Objectives:

 To increase the market share of Grand Motors Ltd. by 2% in 2010-11 in the industry
 To achieve the target of sales of 4000 -5000 cars per month in the year 2010-11.
 To increase the profit Margin by 1% every year though in the starting no such high
expectations are there.

Marketing Strategy

Multiple channels and formats will coexist to satisfy different market segments.
We expect much more variations in channels and formats in a physical sense and more distinct
positioning in terms of the purchase and ownership experience they provide, further shifting
the basis of competition from product to services and brand attributes.

The cost of distributing and marketing automobiles will be cut significantly. New formats and
channels will discipline the current system to drive out non-value-adding cost. Much larger
savings are possible, however, by driving out inventory; reducing investment in brick-and-
mortar and real estate investments, and optimizing the delivery of services.

Manufacturers will seek and attain much closer contacts with consumers. Internet technology
enables more effective and efficient direct contact between manufacturers and their ultimate
customers. If, however, manufacturers fail to exploit this and other technologies to establish
meaningful relationships with consumers, more powerful channel intermediaries will gain the
upper hand and end up dictating customer needs to their suppliers -- the manufacturers.

Promotional Strategy: To give a thrust to the introduction of our product in the market as well
as to the sales of ELFIN ,promotions would play a vital role. Through advertising and by making
merchandise available at various malls and showrooms would assist a lot in creating some
image in mind of the customer
 MARKET ANALYSIS

Target Market

Basically the working professionals or initial executive class people are targeted here. Market
has been segmented on the basis of 3 factors here.

Demographics : Income level ( upper middle class segment is considered),Age ( people aging
between 25 yrs – 40 yrs will be more inclined to buy mid sized sedan).

Geography: People living in hilly areas would not be much interested in buying a sedan,so that
segment can be looked upon later.

Behaviour: People may go for buying sedan for their siblings or wife but may be for himself he
will prefer a luxury car which he will not drive himself.

Competitor Assessment

Porter’s 5 forces

Significant Entry Barrier to Overcome

 Industry of Scale: Huge resources had to be devoted to enter.
 Huge Factories, Labor, Automobile Parts
 Resources needed build Transportation/Delivery Network
 Marketing Cost, Sponsor Cost (Events such as Super Bowl), Contract Costs

Buyer Bargaining Power

 Significant bargaining power among buyers, since they can always settle for a
Complement
 Prior to purchase, Buyers usually obtain huge information on the current automobile
industry
 Many substitutes; Various brands with similar specs and price with competitive
marketing
 Huge marketing power among advertisers, and sponsors due to large demand with
monopolistic supply

Supplier Bargaining Power

 Almost no bargaining power among suppliers
 Automobile makers work to maintain aggressive cost strategies, thus suppliers must
compete with one another to obtain contracts with them.
 Automakers retains most of the information of the suppliers
 Substitutes
 Products from other manufacturers
Toyota, Nissan, GM, Ford, Chrysler, BMW etc.
 Public Transportation (Increasing in most metropolitan areas)
 Secondary Transportation (Motorcycles, Segway etc.)

 Rivalry
 Huge Price competition leading to extensive need to differentiate, leading to more
resources devoted to marketing brands
 Rivalries are introducing the newest and best technology.
 All strategies are highly monitored and, in many times, copied among rival
firms.

Forecasting
Main Goals are:

 To maintain costs of goods sold to 60% or less.

 To increase sales within an 18 month period to 37% of the target market.
 To maintain financial records according to GAAP.

2010-11 2011-12 2012-13

Sales 60000 1,00,000 5,00,000
Profit Margin NIL 2% 4%
Market Share 1% 3% 4%
Contributors to Budget/costs

 Purchase and use Machinery and Equipments

 Train employees proper handling to prevent waste Material
 Maintain a weight system for Auto, car etc.
 Check for quality of Machine & raw materials from suppliers
 Maintain storage equipment in proper working condition
 Hire an experienced and qualified accounting firm
 Contract out payroll

Implementation and control

At every stage in the product delivery process, performance objectives and metrics have been
established and used to control the project.

1. The advanced product engineering and design concepts

2. Integrated team working at every stage of the project
3. The introduction of creative quality tools and techniques
4. The selection of a world class supplier base
5. The manufacturing, quality and launch processes

Initiatives new to our product are described below:-

An Advanced Quality Planning Steering Group, chaired by the Programme Manager and
comprising representatives from all the major disciplines, is responsible for overseeing all
quality activities.
Simultaneous Engineering Teams (SET’s), are formed for all major sub-systems. Design of
Experiments (DOE) techniques are employed for many features of the engine
Benchmarking Competitors Vehicles using Touch Zone Analysis. This process is intended to
reflect the impressions that a potential customer would experience when first looking at and
sitting in the vehicle.
A programme of Design and Process FMEAs is being drawn up for critical systems, resulting in
the identification of Significant and Critical Characteristics.These characteristics were monitored
during the prototype build phases of the project - resulting in higher levels of product quality
from these early build vehicles.
Training for the new car Project Team apply to the foundation course for the EQUIP training
(Engineering Quality Improvement Programme).
Total Cost Control. The financial function within the Launch Team is to advise on cost
affordability of the launch.

Contingency Plans

Difficulties and risks

 Slow sales resulting less than projected cash flow.
 Unexpected and excessive cost increase compared to the forecasted sales.
 Overly aggressive and debilitating actions by competitors.
 Significant economic downturns
If company faces any of the above situations then we are ready to tackle it as we do know that
to solve any of the above problems ,we will have to look into all the aspects related to the
product(if it’s not working anyhow):
 Price
 Promotion
 Place
 Product itself
After analysing all these only ,we will take the step further and develop our new plan or
strategy ,though we do have in our mind that we cannot affords to take these plans
lightly as it may result in liquidating company’s assets to cover marketing expenses and
liabilities.