BRAND MANAGEMENT

Under guidance of Prof Vartika Joshi

Submitted by :
ANAND TUTEJA 1B-40
ARUN PUNDIR 1B-43
NANDITA KATIYAR 1B-54
RASWINDER JIT SINGH 1B-31
RUPAL NIMBHORKAR 1B-33
SHRAVAN RASTOGI 1B-59
1. Classification of Car Segments
2. History & Evolution
3. Failure
4. Product Details
5. Dealer Analysis
6. Competitor Analysis
7. Customer Analysis
8. Associative Network Memory Model
9. Consumer Decision Making Process
10. CBBE Pyramid
11. Conclusion & Inferences
 CLASSIFICATION OF CAR SEGMENTS
(according to size)

I) MINI : Maruti – 800

Tata NANO

II) COMPACT : Hyundai SANTRO / i-10 / GETZ

Maruti ZEN / ALTO / WAGON–R
/ SWIFT
Chevrolet SPARK / AVEO–Uva
Tata INDICA
Fiat PALIO
Ford FUSION
Skoda FABIA
III) MID SIZE : Hyundai ACCENT
Maruti ESTEEM / SX4 / VERNA
/ BALENO / SWIFT-DeZire
Ford IKON / FIESTA /
Tata INDIGO / MARINA
HM AMBASSADOR
Honda CITY
Chevrolet AVEO
Mahindra-Renault LOGAN
IV) EXECUTIVE : Skoda OCTAVIA
Toyota COROLLA
Chevrolet OPTRA
Hyundai ELANTRA
Honda CIVIC
Mitsubishi LANCER
V) PREMIUM & LUXURY :
Honda ACCORD
Hyundai SONATA
Ford MONDEO
Toyota CAMRY
Skoda LAURA / SUPERB
Mercedez BENZ C-Class
BMW 3 Series
AUDI
Volkswagen PASSAT
 THE BIRTH
 Hindustan Motors is an Indian automobile
manufacturer founded in 1942.

 Part of the Birla group of industries.

 One of the original 3 car manufacturers in India.

 Largest car manufacturer in India before the rise

of Maruti Udyog (MUL).

 It is the producer of the famous Ambassador car,

widely used as a taxicab and as a government
limousine.
 THE JOURNEY

AMBASSADOR CAR
Manufactured at Uttarpara plant near Kolkata,
West Bengal.

Until the 1980’s, Ambassador and Premier

Automobiles Ltd’s (PAL) Padmini were the only 2
cars available in the Indian market.
 THE JOURNEY CONTINUES …….
In production since 1957.

 Ambassador was the vehicle of choice,

Government of India, and the official car for
almost every Indian Prime Minister after
independence.

 HM derived a major part of its sales from

senior politicians, top civilians, bank
managers and defense personnel.
 AND THE JOURNEY
S T I L L C O N T I N U E S ….
 Ambassador was very popular in the taxi
segments as well, even in 2001 the segment
accounted for almost 65% of ambassadors
sales.
 Till the early 1980s, Ambassador
commanded 70% of the market share.
Premier Padmini claimed the other 30%.
 “ Amby – Hall Of Fame ”
 One of India's best-known cartoonist RK. Laxman, has driven
an Ambassador for years.
 Oscar-winning Indian director Satyajit Ray immortalised the
car in many of his films. .
 Government of India has a fleet of more than 5,000
Ambassadors. whose rounded contours, big bonnet and bulging
headlights have remained virtually unchanged since it first
rolled off the production line in 1957.
 Evolution of Automobile Industry
Initial Years
Manufacturing was licensed
License Raj Mid 90s – Early 2000s
Early to mid 90s
• High Customs duty on • Buyers market
• Seller’s market and long
imports
waiting periods
• Steep excise duties & • Easy Auto finance
• Sales tax
• Decrease in customs &
• Manufactures
excise
• 2 Major players : diversifying into related
Premier Automobiles Ltd activities: finance lease,
• Auto finance boom- more
& Hindustan Motors fleet management,
players
insurance and used car
1980s market
• Foreign banks & non
banking companies, better
• Entry of MUL, better product, • But HM diversified very
schemes.
with government support lately compared to all
other companies
• Seller’s Market

• Long Waiting Periods

 The Dark Clouds
Reasons for failure :
1. Focused only to one segment.
2. Internal Union problems.
3. Drop in marketing strategies.
4. Lack of innovation.
5. Failure of HRM strategies.
6. Incompetence to handle competition.
7. Unaesthetic design.
 THE POISON PILL

HM was focused only to one segment till 1997

and with in that time MUL was able to bring
out brands for each segment with in the
nation. Substitute for the brand was quite
visible in the economy
 PRODUCT DETAILS
(available in 4 variants)
1) 1.8 L Petrol : 1817 cc / 71 bhp
2) 2.0 L Diesel : 1995 cc / 50 bhp
3) 1.5 L Diesel : 1489 cc / 35 bhp
4) 1.8 L CNG : 1817 cc / 54 bhp

54 litre fuel tank

1200 kg weight
Mileage 8-11 kmpl
130 dealers all over India
 • First Model Launch in 1948.
• First Model Launch in 1948.
• • Available
Available in in 5 Models.
5 Models.
• Priced between 4.8 L to 6.3 L.
• Priced between 4.8 L to 6.3 L.
• Choose from 10 Colors.
• On-Demand Left10Hand
• Choose from Drive Option.
Colors.
• Plant in Uttarpara – West Bengal.
• 5+1 Seating Capacity.
• On-Demand Left Hand Drive Option.

• Plant in Uttar Para – West Bengal.

• 5 + 1 Seating Capacity.

• Can be easily bullet proofed.

 TOTAL SALES AMBASSADOR % of total
sales
2005-06 9,09,000 20,800 2.2 %
2006-07 10,71,000 10,200 0.95 %
2007-08 12,24,000 8,500 0.69 %
% OF TOTAL SALES

TOTAL SALES AMBASSADOR

1400000
8500
1200000
10200
1000000 20800

800000
units

600000 1224000
1071000
909000
400000

200000

0
2005-06 2006-07 2007-08
years
J WILLIAM’S AND COMPANY
(Opposite East Street Cafe)
Sales Manager : Mr. John D’Cruz
 Broadly the dealer was asked the following questions :
1. When was there a drop in sales ?
2. When was the dealership stopped ?
3. Why was the dealership stopped ?
4. Approximate sales and profit margin ?
5. How was the brand visibility ?
6. What was the consumer profile ?
7. How many cars were stocked at a time ?
8. How is HM’s attitude towards ambassador ?
9. What could be the reasons for decline ?
10.What did customers look for in a car ?
11. Is HM promoting Lancer to the government ?
 DEALER’s RESPONSES
• Dealership stopped 2-3 months back.
• Sales were only 6-7 cars a month.
• Earlier sales high due to less competition.
• More focus on Mitsubishi cars now.
• However, Ambassador is provided on
individual order basis with 25 day waiting at
an extra cost of Rs 5000 for transport from
Kolhapur.
• Consumer profile is either Defense &
government or taxi drivers / owners.
 DEALER’s RESPONSE ON HM’s ATTITUDE
• Very supportive, though aggressive
marketing not practiced.
• Launched a new model (Ambassador Grand)
to augment the existing range of 4 variants.
• Grand is an improved version positioned as
“Elegance and Economy”, with a mileage of
11-16 kmpl.
• Individual order can be placed in 10
different colors and left hand drive also
available.
• HM is not promoting Lancer to the govt. as
Ambassador is the easiest to bullet proof.
• Reasons for failure – Inadequate Advertising
& lack of innovation.
• Users look for the following in while
purchasing a car :
Price
Mileage
Serviceability
Power
 COMPETITOR ANALYSIS

QUANTITATIVE QUALITATIVE
•Mileage •Looks
•Price •Interiors
•Capacity •Comfort
•Sales •Drive quality
•Power •Value for money
AMBASSADOR COMPETES IN 2 SEGMENTS
1) TAXI MARKET :
Competitors – Tata INDICA
2) GOVT VEHICLES
Competitors – Tata INDIGO
Mitsubishi Lancer
 1. QUANTITATIVE ANALYSIS
AMBAS- INDICA-V2 INDIGO LANCER
SADOR (diesel) (diesel) (diesel)
(diesel)
Mileage 8-11 14 -17 14 -17 13 - 16
(Kmpl)
Power 50 BHP 53.5 BHP 84 BHP 68 BHP

Capacity 1995 cc 1405 cc 1405 cc 1998 cc

Sales 8,500 1,35,000 33,300 2,700

(units)
Market 0.69 11.1 2.7 0.2
Share (%)
Price 4 – 6 lacs 3.6 – 4.2 lacs 6 lacs 8.5 – 9.5
(on road) lacs
 2. QUALITATIVE ANALYSIS
AMBAS- INDICA V2 INDIGO LANCER
(diesel)
SADOR (diesel) (diesel)

Looks
Interiors

Drive
Quality
Comfort
Value for
Money
 STRUCTURE OF SURVEY

Primary research
Sample size 4 (3 users , 1 non user)

Respondent profile
Respondent 1: Sep. C.V. Reddy
Respondent 2: Mr. S.K.Gavde
Respondent 3: Hav. K.K. Pal
Respondent 4: Dr. J.P. Singh
 Warm Up Questions

USER :
• Price conscious.
• Seek information from family, friends & media

NON USER :
• Consider application as the main parameter
• Seek information from family, friends & media
 Product Category Knowledge
USER :
• Consider transport as main purpose of 4 wheeler
• Have a reasonable knowledge of mid sized cars
• Consider post sales service of Ambassador to be sub average
• Do not wish to buy the car for personal use.
• Not satisfied with the car, find it bulky and require high
maintenance.
• Not very technology conscious.

NON USER : (for Lancer)

• Give importance to transport with status and comfort.
• Well aware of mid sized cars.
• Satisfied with the current brand.
• Aware of technology and consider Ambassador as low tech.
 Brand Knowledge
USER :
• Brand conscious, but not main concern.
• Not have purchased the brand for personal use.
• Consider other brands for current purpose.
• Consider mileage, looks, maintenance cost, prestige, power to
be important criteria.

NON USER : (for Lancer)

• Consider brand as the primary consideration.
• Have good awareness of the brands .
• Consider power as an advantage for Ambassador.
• Consider brand, comfort, performance & power as main
criteria.
 Brand Salience
(Brand Recall & Recognition)
USER :
• High recall as a government vehicle (top of mind) and Taxi.
• Aided brand recognition. Could recognize the product but not
the tagline and could not remember any of the Ambassador
ads.
• No knowledge about various models .
• Identify more with Tata vehicles.

NON USER : (for Lancer)

• High recall as a Govt. vehicle (top of mind) and Taxi.
• Aided brand recognition.
 Brand Imagery
USER :
• Consider it a car for the Govt. and Defense officials.
• Suitable for rough terrain.
• Associate with color black as a symbol of power and prestige.
• Associated with Indian-ness, and have fond past memories
related.
• CELEBRITY ASSOCIATION : Atal Behari Vajpayee, Sonia
Gandhi, Sunny Deol.
• Associate with someone who once had power & has lost it
now (eg Retired Govt Official)
NON USER :
• Consider it a car for the Govt. and Defense officials.
• Suitable for rough terrain.
• Associate color white with politicians .
• Associated with ruggedness.
• No fond memories.
• CELEBRITY ASSOCIATION : Dharmendra
 Brand Judgment
USER :
• Mediocre environment friendliness.
• Average value for money.
• Large internal space.
• Robust with mediocre reliability.
• Low on energy efficiency and technology usage.

NON USER : (for Lancer)

• Mediocre environment friendly.
• Good value for money.
• Large internal space.
• Highly robust and reliable.
• Average on energy efficiency and good on technology
usage.
 Brand Feelings
USER :
• Social approval, ownership and pride.
• Low trust worthiness, average aesthetic appeal.
• Associate with fun , adventure and fond memories.
• Mediocre connect with brand .

NON USER : (on Lancer)

• High level of ownership and pride.
• Status symbol vehicle.
• High on aesthetic appeal .
(on Ambassador)
• Low on brand appeal and aesthetics.
• No connect with the brand.
 Brand Resonance

USER :
• First time users but have known the brand for a long time.
• Wish to replace the car when possible.
• Do not wish to recommend it to others (66%).
• Connect with other Ambassador users and discuss it.

NON USER : (for Lancer)

• First time user.
• Do not wish to replace immediately though intend to upgrade
to luxury segment.
• Wish to recommend it to others.
• Connect with other users.
 Brand Evaluation
USER :
• Consider Ambassador as lagging in segment.
• Consider Tata vehicles as leader in mid car segment.
• Low on mileage, style, design, maneuverability, reliability &
post sales service. High on maintenance cost, comfort,
safety.
• Associate with robustness, power and prestige.
• Vehicle for middle aged and older people from middle income
group.
• Do not have high loyalty with the brand and consider that it
needs radical design changes but do not want the car to
discontinue in market.
NON USER :
• Consider Ambassador as lagging in segment .
• Considers Honda City as leader in mid car segment.
• Low on mileage, style, design, maneuverability. High on
maintenance cost, comfort, safety ,reliability and post sales
service.
• Associate with it as a old but safe vehicle.
ASSOCIATIVE NETWORK MEMORY MODEL

Prestige
Indian Comfort

Taxi Old
AMBASSADOR

Bulky Red light

Power Stars
CONSUMER DECISION MAKING PROCESS
ALL BRANDS

KNOWN UNKNOWN
Tata, Chevrolet, Mitsubishi, Volvo, M&M, Fiat
Honda, Ford, Toyota, Maruti,
Hyundai, HM

evoked overlooked
inept inert
Tata, Honda,
Maruti, Chevrolet Toyota HM
Mitsubishi,
Hyundai

purchased
not purchased
Mitsubishi,
Honda, Tata Hyundai, Maruti
CBBE
Pyramid
4. Relationships
What about you and me?
RESONANCE:
No strong Loyalty

3. Response

FEELINGS : What about you?

JUDGEMENT :
Average VFM Pride
Prestige

IMAGERY : Tough
PERFORMANCE : & Safe 2. Meaning
Spacious
Old What are you?
Inadequate Service
Low reliability
Govt Vehicle & Taxi

SALIENCE : High brand recall as govt. vehicle and taxi, aided

1. Identity
brand recognition
Who are you?
Do not wish to recommend this brand
CONCLUSION
INFERENCES
 Negative associations –
 OLD
 LOW TECHNOLOGY
 LOW INNOVATION

 No major problem with brand awareness

 Major lacuna in marketing as high level of
customization available but people not
aware of it.
 With the current level of competition in the
market, Ambassador will have to undergo
serious design , styling & technology
changes
The car that your grandpa drove. The car
that you love because of the old-world
charm it offers. The good 'ol Amby, as it
is lovingly called, offers a lot of space
and amazing comfort. There is nothing
really to talk about beyond this. So,
that's it. A very spacious, comfortable
and rugged car which we would not
recommend.