PROJECT

ON

DISTRIBUTION STRATEGIES OF PASSENGER CAR VENDORS

WITH SPECIAL REFERENCE TO FORD AND MARUTI

MBA-M&S (2ND SEMESTER)

BATCH 2014-2016

SUBMITTED TO:

MS.VANDANA GUPTA

(ASSISTANT PROFESSOR)

SUBMITTED BY:

JASLEEN SABHARWAL – D 07

STUDENT’S UNDERTAKING

I hereby declare that the project report entitled “DISTRIBUTION STRATEGIES

OF PASSENGER CAR VENDORS WITH SPECIAL REFERENCE

TO FORD AND MARUTI” which is being submitted in partial fulfillment of the

requirement of the course and carried out by me under the guidance and supervision of

our mentor MS.VANDANA GUPTA.

I further declared that I or any other person has not previously submitted this project

report to any other institution/university for any other degree/ diploma or any other

person.

COMPILED BY:

JASLEEN SABHARWAL

CERTIFICATE FROM INTERNAL MENTOR

This is to certify that the project report entitled “DISTRIBUTION STRATEGIES

OF PASSENGER CAR VENDORS WITH SPECIAL REFERENCE

TO FORD AND MARUTI” which is being submitted in partial fulfillment of the

requirement of the course and carried out by me under the guidance and supervision of

our mentor MS.VANDANA GUPTA.

I further declared that I or any other person has not previously submitted this project

report to any other institution/university for any other degree/ diploma or any other

person.

MS. VANDANA GUPTA Assistant Professor (Internal Mentor)

CONTENTS ACKNOWLEDGEMENT .............................................................................................................5

EXECUTIVE SUMMARY ............................................................................................................6

INTRODUCTION TO THE TOPIC ................................................................................................9

COMPANY PROFILE ............................................................................................................... 19

LITERATURE REVIEW ............................................................................................................. 22

OBJECTIVES .......................................................................................................................... 29

RESEARCH METHODOLOGY ................................................................................................... 30

LIMITATIONS ........................................................................................................................ 32

INFERENCES AND RECOMMENDATIONS................................................................................. 33

CONCLUSION........................................................................................................................ 35

ANNEXURE ........................................................................................................................... 39

BIBLIOGRAPHY ..................................................................................................................... 41

ACKNOWLEDGEMENT

A lot of effort has gone into this training report. My regard is due to many people with

whom I have been closely associated.

I would like all those who have contributed in completing this project. First of all, I

would like to send my sincere thanks to Ma’am VANDANA GUPTA for her helpful

hand in the completion of my project.

I would like to thank my entire beloved family & friends for providing me monetary as

well as non – monetary support, as and when required, without which this project would

not have completed on time. Their trust and patience is now coming out in form of this

thesis.

- JASLEEN SABHARWAL

EXECUTIVE SUMMARY

Channel strategy

From the consumer perspective, new car distribution is about dealers and dealerships.

For many, the same applies to a used car purchase, at least for younger cars, and for

service and repair, although loyalty to franchised dealerships reduces as the car ages.

However, in most markets, fleet sales and internal sales represent around half the total

new car market, and many of these sales are not routed through dealers, or only do so on

special terms where the dealer role is very different.

The new car sales channels largely dictate the channels for remarketing of used cars, and

for the distribution of parts and provision of service and repair. There is no imperative

that forces this link, and there is in some cases good reasons why the almost-automatic

linkage of channel structure for new car sales, service and spare parts should be

challenged. The greatest challenge in this decade comes about from the impact of the

internet on consumer behavior, and the emergence of new channels to meet demand for

personal mobility, through traditional sale or provision of a service to satisfy the same

need.

ICDP (Automotive Distribution Research, insights, implementation ) have developed a

financial model which allows users to look at channel structures at a number of different

levels (from national sales company to dealer, sub dealer and repairer), reflecting sub-

divisions of the traditional distribution model, but also the new channels that may

complement or replace those in the traditional model. The financial model enables the

user to not only view the current network structure but also test the effect of possible

changes whether it is in terms of tiers, branding, or additional operations and facilities.

They seek to understand the overall channel economics, and the impact of different

strategies and operating standards on performance from the perspective of the different

players in those channels. Although they anticipate disruptive change to the current

distribution model, they do not see the complete replacement of one set of channels with

another, but rather a switch of emphasis and share, and the introduction of new channels

for cars, service and parts, operating in competition with and in collaboration with the

channels of today.

Dealers

Dealers have been a fundamental link in the distribution channel between manufacturer

and customer for a century. Whilst they vary widely in scale, ownership and

performance, their fundamental role in converting consumer interest into ownership and

providing after sales support is universal. The vast majority of dealerships are

independently rather than vehicle manufacturer-owned with a contractual bargain struck

with their manufacturer which balances the manufacturer's brand distribution

requirements with the dealer's rights as an entrepreneur. It is only now – with the

emergence of online channels for other goods and services – that questions are being

asked about the very existence of the dealership in future.

With the contractual relationship between manufacturer and point of sale is created on a

one-to-one basis, irrespective of common ownership of multiple sites or manufacturer-

owned retail sites operating on the same basis as independent franchisees, we do not

generally differentiate between different ownership characteristics. Many themes run

consistently across all dealer types, so any organization which operates a physical site,

dealing with the manufacturer (or their appointed importer) on one side and individual

end users of the vehicles on the other, can be considered as ‘dealers’.

The individual location-based nature of the distribution channel, operating through tens

or hundreds of dealers in any single market, is one of the key complexities that create

barriers to change for the distribution model as a whole. It is therefore an area on which

ICDP expends a significant part of our effort, understanding what factors influence dealer

performance, how the relationship between manufacturer and dealer works, and how it

can be improved, and what the future holds for dealers.

Aftersales

Aftersales is at the very core of the automotive sector; it is where vehicles are serviced,

repaired, and checked for continued compliance with environmental and safety norms; it

is where ongoing customer relationships are built and maintained; and it is where many

players within the more markets of the world, dealers in particular, make their money,

often cross-subsidizing less profitable sales activities with revenues generated in the

workshop.

Aftersales is also core to ICDP’s range of services, and is a major area of interaction with

our clients from across the sector. We have unrivalled knowledge of the aftermarket and

how it is being reshaped by internal and external trends including technology, consumer

driving habits, and regulation. Through our research we have developed a

comprehensive simulation model of future aftermarket volumes and values that is

deployed with clients individually as a key part of their strategy formulation process.

The changing face of the independent repair sector, and how it interacts with the

authorized sector, is another key area of focus, along with the strategies deployed by both

sides in pursuit of aftermarket customer retention. Our consumer research has picked up

a first-hand understanding of the aftersales experience that customers in different markets

are looking for. And, as part of our ‘lean dealer’ toolbox of dealership process and

performance improvement methodologies, we have led workshop change programmes at

dealerships both large and small, and delivered consultancy and training support.

Aftersales used to be a fairly stable and predictable business; under the influence of

market dynamics and technology change, this is no longer the case. ICDP’s unique

position, combined with the grounding of our collaborative research, provides clients

with a vital resource in helping them define a path to future success.

Source: (ICDP)

INTRODUCTION TO THE TOPIC

The Importance of Distribution:

Most producers use intermediaries to bring their products to market. They try to develop

a distribution channel (marketing channel) to do this. A distribution channel is a set

of interdependent organizations that help make a product available for use or

consumption by the consumer or business user.

Channel intermediaries are firms or individuals such as wholesalers, agents, brokers, or

retailers who help move a product from the producer to the consumer or business user. A

company’s channel decisions directly affect every other marketing decision. Place

decisions, for example, affect pricing. Marketers that distribute products through mass

merchandisers such as Wal-Mart will have different pricing objectives and strategies than

will those that sell to specialty stores. Distribution decisions can sometimes give a

product a distinct position in the market. The choice of retailers and other intermediaries

is strongly tied to the product itself. Manufacturers select mass merchandisers to sell mid-

price-range products while they distribute top-of-the-line products through high-end

department and specialty stores. The firm’s sales force and communications decisions

depend on how much persuasion, training, motivation, and support its channel partners

need. Whether a company develops or acquires certain new products may depend on how

well those products fit the capabilities of its channel members. Some companies pay too

little attention to their distribution channels. Others, such as FedEx, Dell Computer, and

Charles Schwab have used imaginative distribution systems to gain a competitive

advantage.

Functions of Distribution Channels

Distribution channels perform a number of functions that make possible the flow of

goods from the producer to the customer. These functions must be handled by someone

in the channel. Though the type of organization that performs the different functions can

vary from channel to channel, the functions themselves cannot be eliminated. Channels

provide time, place, and ownership utility. They make products available when, where,

and in the sizes and quantities that customers want. Distribution channels provide a

number of logistics or physical distribution functions that increase the efficiency of the

flow of goods from producer to customer. Distribution channels create efficiencies by

reducing the number of transactions necessary for goods to flow from many different

manufacturers to large numbers of customers. This occurs in two ways. The first is called

breaking bulk. Wholesalers’ and retailers purchase large quantities of goods from

manufacturers but sell only one or a few at a time to many different customers. Second,

channel intermediaries reduce the number of transactions by creating assortments—

providing a variety of products in one location—so that customers can conveniently buy

many different items from one seller at one time. Channels are efficient. The

transportation and storage of goods is another type of physical distribution function.

Retailers and other channel members move the goods from the production site to other

locations where they are held until they are wanted by customers. Channel intermediaries

also perform a number of facilitating functions, functions that make the purchase process

easier for customers and manufacturers. Intermediaries often provide customer services

such as offering credit to buyers and accepting customer returns. Customer services are

oftentimes more important in B2B markets in which customers purchase larger quantities

of higher-priced products.

Some wholesalers and retailers assist the manufacturer by providing repair and

maintenance service for products they handle. Channel members also perform risk-taking

function. If a retailer buys a product from a manufacturer and it doesn’t sell, it is “stuck”

with the item and will lose money. Last, channel members perform a variety of

communication and transaction functions. Wholesalers buy products to make them

available for retailers and sell products to other channel members. Retailers handle

transactions with final consumers. Channel members can provide two-way

communication for manufacturers. They may supply the sales force, advertising, and

other marketing communications necessary to inform consumers and persuade them to

buy. And the channel members can be invaluable sources of information on consumer

complaints, changing tastes, and new competitors in the market.

Channels

A number of alternate 'channels' of distribution may be available:

• Selling direct, such as via mail order, Internet and telephone sales

• Agent, who typically sells direct on behalf of the producer

• Distributor (also called wholesaler), who sells to retailers

• Retailer (also called dealer or reseller) who sells to end customers

• Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They

may be just as important for moving a service from producer to consumer in

certain sectors, since both d irec t and ind irec t channe ls may be used .

Ho te ls , fo r example , may se ll the ir se rvices (typically rooms) directly

or through travel agents, tour operators, airlines, tourist boards, centralized

reservation systems, etc.

There have also been some innovations in the distribution of services. For example, there

has been an inc rease in franchising and in renta l se rvices - the la t te r

o ffe r ing anything from televis ions through tools. There has also been

some evidence of service integrat ion, with services linking together,

particular ly in the travel and tourism sectors. For example, links now exis t

be tween a ir lines , ho te ls and ca r renta l se rvices . In add it ion, the re

has been a significant increase in retail outlets for the service sector. Outlets such as

estate agencies and building society offices are crowding out traditional grocers from

major shopping areas.

Channel members

Distribution channels can have a number of levels. Kotler defined the

simplest level that of direct contact with no intermediaries involved, as the 'zero-level'

channel. The next level, the 'one- level' channel, features just one intermed ia ry;

in consumer goods a retailer, for industr ia l goods a distributo r. In small

markets (such as small countries) it is practical to reach the whole market using just

one- and zero-level channels. In large markets (such as larger countries) a second

level, a wholesale r for example, is now mainly used to extend distribution to the

large number of small, neighborhood retailers.

Wholesaling: Are all activities involved in selling products to those buying for resale

or business use.

Wholesaling intermediaries: are firms that handle the flow of products from the

manufacturer to the retailer or business user. Wholesaling intermediaries add value by

performing one or more of the following channel functions:

• Selling and Promoting

• Buying and Assortment Building

• Bulk-Breaking

•Warehousing

•Transportation

• Financing

• Risk Bearing

•Market Information

– giving information to suppliers and customers about competitors, new products, and

price developments

Management Services and Advice

– helping retailers train their sales clerks, improving store layouts and displays, and setting up accounting and inventory control systems.

Independent intermediaries do business with many different manufacturers and many

different customers. Because they are not owned or controlled by any manufacturer, they

make it possible for many manufacturers to serve customers throughout the world while

keeping prices low.

Merchant wholesalers are independent intermediaries that buy goods from

manufacturers and sell to retailers and other B2B customers. Because merchant

wholesalers take title to the goods, they assume certain risks and can suffer losses if

products get damaged, become out-of-date or obsolete, are stolen, or just don’t sell. At

the same time, because they own the products, they are free to develop their own

marketing strategies including setting prices. Merchant wholesalers include full-service

merchant wholesalers and limited-service wholesalers. Limited-service wholesalers are

comprised of cash-and-carry wholesalers, truck jobbers, drop shippers, mail-order

wholesalers, and rack jobbers.

Merchandise Agents or Brokers are a second major type of independent intermediary.

Agents and brokers provide services in exchange for commissions. They may or may not

take possession of the product, but they never take title; that is, they do not accept legal

ownership of the product. Agents normally represent buyers or sellers on an ongoing

basis, whereas brokers are employed by clients for a short period of time. Merchandise

agents or brokers include manufacturers’ agents (manufacturers’ reps), selling agents,

commission merchants, and merchandise brokers.

Manufacturer-owned intermediaries are set up by manufacturers in order to have

separate business units that perform all of the functions of independent intermediaries,

while at the same time maintaining complete control over the channel. Manufacturer-

owned intermediaries include sales branches, sales offices, and manufacturers’

showrooms.

Sales branches carry inventory and provide sales and service to customers in a specific

geographic area.

Sales offices do not carry inventory but provide selling functions for the manufacturer in

a specific geographic area. Because they allow members of the sales force to be located

close to customers, they reduce selling costs and provide better customer service.

Manufacturers’ showrooms permanently display products for customers to visit. They

are often located in or near large merchandise marts, such as the furniture market in High

Point, North Carolina. Vertical Marketing Systems

A vertical marketing system (VMS) is a distribution channel structure in which

producers, wholesalers, and retailers act as a unified system. One channel member owns

the others, has contracts with them, or has so much power that they all cooperate.

A Conventional distribution channel consists of one or more independent producers,

wholesalers, and retailers. A vertical marketing system, on the other hand, provides a way

to resolve the channel conflict that can occur in a conventional distribution channel where

channel members are separate businesses seeking to maximize their own profits—even at

the expense sometimes of the system as a whole. The VMS can be dominated by the

producer, wholesaler, or retailer. There are three major types of vertical marketing

systems: corporate, contractual, and administered.

A corporate VMS

Is a vertical marketing system that combines successive stages of production and

distribution under single ownership—channel leadership is established through common

ownership. A little-known Italian eyewear maker, Luxottica, sells its many famous

eyewear brands—including Giorgio, Armani, Yves Saint Laurent, and Ray-Ban—

through the world’s largest optical chain, Lens Crafters, which it also owns.

A contractual VMS

Is a vertical marketing system in which independent firms at different levels of

production and distribution join together through contracts to obtain more economies or

sales impact than they could achieve alone. Coordination and conflict management are

attained through contractual agreements among channel members. The franchise

organization is the most common type of contractual relationship. There are three types

of franchises: manufacturer-sponsored retailer franchise system (Ford Motor Co.),

manufacturer-sponsored wholesaler franchise system (Coca-Cola bottlers), and service-

firm- sponsored retailer franchise system (McDonald’s). The fact that most consumers

cannot tell the difference between contractual and corporate VMSs shows how

successfully the contractual organizations compete with corporate chains.

An administered VMS

Is a vertical marketing system that coordinates successive stages of production and

distribution, not through common ownership or contractual ties, but through the size and

power of one of the parties. Manufacturers of a top brand can obtain strong trade

cooperation and support from resellers (P&G). Large retailers such as Wal-Mart can exert

strong influence on the manufacturers that supply the products they sell.

Developing and Managing a Distribution Strategy

• A distribution strategy defines how you are going to create and satisfy

demand for your products.

• A distribution strategy defines how you are going to move products from

point of creation to points of consumption in an efficient and cost-effective manner.

• A d is tr ibu t io n s tra tegy a lso de fines how you a re go ing to deve lop

and mainta in customer loyalty.

• But first and foremost, a distribution strategy must be in sync with how

customers want to shop and buy.

• Today's customers shop and buy very differently than ever before.

• The ir access to high- qua li t y info rmat io n via the inte rne t , combined

with the ir heightened price sensitivity, has created a customer that is more

sophisticated, better informed and often times, more adversarial than customers of the

past.

• This new breed of customer no longer plays by the rules of traditiona l

distribution channe ls . Desp ite this fac t , manufac t u re rs and

d is tr ibuto rs continue to suppo rt outdated distribution strategies that

actually make it hard for customers to shop for and purchase their products. For

product-focused companies, establishing the most appropriate distribution strategies is a

major key to success, defined as maximizing sales and profits. Unfortunately, many of

these companies o ften fa il to e s tab lish o r ma inta in the most e ffec t ive

d is tr ibut io n s tra tegies . Problems that have been identified include:

• Unwillingness to establish different distribution channels for different products Fear of

utilizing multiple channels, especially including direct or semi-direct sales, due to

concerns about erosion of distributor loyalty or inter-channel cannibalization

• Failure to periodically re-visit and update distribution strategies

• Lack of creativity and resistance to change

• To be fair, there can be sound reasons for these perceived weaknesses. More typically,

however, they are due to failings such as simple inertia, lack of understanding of the

ultimate customers and their preferences, or a failure to acknowledge the importance of a

distribution strategy and invest sufficient resources in understanding it. The Internet is

creating sea-changes in terms of traditional manufacturer-distributor relations. It has seen

significant waves of disintermediation in multiple product lines, and can facilitate cost-

effective broadening of distribution channels. Meanwhile, improvements in supply chain

management technologies must also be factored into choice of distribution partners.

SUPPLY CHAIN MANAGEMENT

Company can improve its distribution strategies by:

• Mapping their products to the end-user

• Determining customers’ channel preferences and comparing these

preferences with actual availability

• Recommending new channels, and examining competitors’ strategies and comparing

them and their effectiveness with their own

Channel Strategy:

Marketers face several strategic decisions in choosing channels and marketing

intermediaries for their products. Selecting a specific channel is the most basic of these

decisions. Marketers must also resolve questions about the level of distribution intensity,

the desirability of vertical marketing systems, and the performance of current

intermediaries. Marketing Channel Selection Marketing channel selection can be

facilitated by analyzing market, product, producer, and competitive factors.

Distribution intensity refers to the number of intermediaries through which a

manufacturer distributes its goods. The decision about distribution intensity should

ensure adequate market coverage for a product. In general, distribution intensity varies

along a continuum with three general categories: intensive distribution, selective

distribution, and exclusive distribution.

Intensive Distribution strategy seeks to distribute a product through all available

channels in an area. Usually, an intensive distribution strategy suits items with wide

appeal across broad groups of consumers, such as convenience goods.

Selective Distribution is distribution of a product through only a limited number of

channels. This arrangement helps to control price cutting. By limiting the number of

retailers, marketers can reduce total marketing costs while establishing strong working

relationships within the channel. Moreover, selected retailers often agree to comply with

the company’s rules for advertising, pricing, and displaying its products. Where service is

important, the manufacturer usually provides training and assistance to dealers it chooses.

Cooperative advertising can also be utilized for mutual benefit. Selective distribution

strategies are suitable for shopping products such as clothing, furniture, household

appliances, computers, and electronic equipment for which consumers are willing to

spend time visiting different retail outlets to compare product alternatives. Producers can

choose only those wholesalers and retailers that have a good credit rating, provide good

market coverage, serve customers well, and cooperate effectively. Wholesalers and

retailers like selective distribution because it results in higher sales and profits than are

possible with intensive distribution where sellers have to compete on price.

Exclusive Distribution is distribution of a product through one wholesaler or retailer in a

specific geographical area. The automobile industry provides a good example of

exclusive distribution. Though marketers may sacrifice some market coverage with

exclusive distribution, they often develop and maintain an image of quality and prestige

for the product. In addition, exclusive distribution limits marketing costs since the firm

deals with a smaller number of accounts. In exclusive distribution, producers and retailers

cooperate closely indecisions concerning advertising and promotion, inventory carried by

the retailers, and prices. Exclusive distribution is typically used with products that are

high priced, that have considerable service requirements, and when there are a limited

number of buyers in any single geographic area. Exclusive distribution allows

wholesalers and retailers to recoup the costs associated with long selling processes for

each customer and, in some cases, extensive after-sale service. Specialty goods are

usually good candidates for this kind of distribution intensity.

The New Distribution Strategies

Amazing changes in the retail marketplace over the last 15 years has created

new, different obstacles to successfully launch a new product. Marketing romantics

muse glowingly about the old days when there were supposedly multiple placement

opportunities in every level of retail. True, there were. But on closer inspection, there are

as many options now, if not more. People and organizations are not usually open to

change. Change is hard, requires a different thought process, imagination, flexibility. In

the 1980’s there was a seemingly endless array of local, regiona l and nationa l store

chains, includ ing department stores, drug, discount, food, hardware and mass

merchandisers. Most are now gone. They did not change. WT Grant, Montgomery Ward,

Venture, A yr-Way, Gold Circle, Hills, Super-X, Bambergers, B. Altman, Bonwit Teller

and Wanna makers are only a tiny sampling of strong store brands tha t no longer

exis t . The new b ig box cha ins tha t have taken the ir p lace fea ture

mass ive purchasing, merchandis ing and logist ic assets. Certainly Wal-Mart,

Home Depot, Macys, Walgreen and Kroger have earned their collective

perches as dominating chains in their categories. The question for small businesses

and entrepreneurs is how to successfully place product in these retail behemoths. And if

they can’t be penetrated what other options are available. The d iffic u l t ie s o f

se lling a sho r t line o r a s ingle item to Wal- Mart a re daunting, but

can be overcome. To successfully sell the big boys, you have to adjust, change your

terms and conditions to fit theirs. The key to the modern big box success is based

on huge sales volumes, lowest price ava ilab le and logis t ic s tha t enab le

eve r - fas te r dep loyme nt o f invento r y and resources . Software for

shipping and receiving is as important as product features and benefits. You

have to have the capacity to participate in these advanced control systems. The inter-net

and electronic media have created whole new sales opportunit ies that did not

exis t a genera t io n ago . I f EBay counted a ll o f the independent

contrac to rs they se rve as employees, they would be the world’s largest

employer. Over 700,000 entities now sell product through this vast,

democratic, web community. Many make full- t ime living fromEbay sales. This

is an inter-net department store with an auction format. And there are dozens of other

targeted web-based sites seeking inventory to sell as well.

Home Shopping Network, ANC, Shop at Home and QVC are simply

electronic department s to res and each has a huge appe tite fo r new

p roduc ts . Every yea r these cab le te levis io n retailers search locally and

through on-air solicitations for fresh, creative, new products that can be demonstrated in

this powerful sales venue. A product that sells successfully on HSN will soon be in

demand on traditional retail shelves. Years ago la te night infome rc ia ls were

the frequent butt o f comic sk its . Today majo r companies such as

Proctor & Gamble, General Motors and Estee Lauder utilize this sales venue.

Hundreds of products are launched in short format infomercials each year, and many

succeed. These spots can be produced at amazingly affordable prices and test

media buys mitiga te financ ia l risk. Most big box stores feature an area

featuring the “As Seen on TV” logo. It is much easier to penetrate the

bureaucratic maze of a nationa l chain with a bit of proven success in hand. Much

as TV infomerc ia ls have revolut ionized product marketing, an even less

expensive strategy can be undertaken utilizing print media. Main stream

newspapers, magazines and print supplements increasingly sell print

Advertoria ls. An Advertorial is an article that reads and appears to be non-

commercial, but contains a specific product message. These have been extremely

powerful guerilla marketing tools, inexpensive, easy to monitor and strong revenue

generators. There a re many o the r po tentia l avenues to pursue in o rde r

to c rea te sa les t rac t ion fo r a p r o d uc t . P ub lic i t y c a mp a ign s ( ha ve

t he a d va n t a ge o f b e ing f r e e ) ; s p e c ia l t y c a t a lo gs , remittance

envelopes, commission sales coverage, and a customized web-site with an online pay-

per-click program are just a few. The o ld days and s to res a re gone . We only

have the new days and a who le ra ft o f new opportunit ies to utilize.

Maybe Lowe’s is not the place to launch your product. Successful pursuit of

a guerilla option will enable a product to develop a sales base, sales, traction

and growth. This will level the negotiating field when the big box presentation is made.

Source: (Tuli)

COMPANY PROFILE

HARPREET FORD MOTORS:

COMPANY PROFILE

Welcome to Harpreet Ford. We are "Quality Care" accredited, authorized dealership of Ford India Ltd. Harpreet Ford was incorporated in year 1996 with one showroom in West

Delhi at Moti Nagar. Under the able leadership & management of our president Mr.

Ashok Sachdev, we have spread across Delhi & NCR region with four state of the art

showrooms and five service outlets. We at Harpreet Ford are a highly skilled and dedicated team of professionals, committed to giving you the most comfortable and scintillating motoring experience and a host of Quality Services extending to spheres of

sales, finance, genuine Ford Accessories, servicing and repairs & body shop repairs with high quality care and attention. We believe in the motto of making customers for life time

and with our dedicated team we have more than 30,000 satisfied ford customers in Delhi & NCR region. All our sales & service locations are "Quality care" accredited. Our association with Ford India is so strong and long that Harpreet Ford has become

synonymous with Ford Operations in Delhi & NCR region.

We have won Super Star Awards for Figo Car club - 2011. Best performance award in ESB & Insurance for year 2011.

Quality Care sales outstanding outlet 2011.

We provide you wide range of Ford product with Finance, Exchange, Insurance, Accessories under one roof.

We are always committed to provide you the best in sales and services to fulfill your

expectation with our strong infrastructure and resources. We always uphold Ford Standards in our day to day work.

We have dedicated team of Corporate Sales to fulfill the requirements of fleet & bulk purchases.

We have dedicated division for hassle free finance. We have exclusive tie-ups with all the leading banks where customer gets exclusive and customized services.

We have dedicated division for attractive used car sales under Ford Assured. The exchange facility provided by Harpreet Ford allows customers to realize their dreams of

owning a Ford car in a hassle free way.

VISION & MISSION

Vision Statement:

"Realize your dreams at TSG."

Mission Statement:

"Enhancing lifestyle by delivering the world's most Trusted Brands and Services."

Values of TSG:

1) Respect 2) Empathy 3) Continuous Improvement

4) Visionary 5) Unity 6) Resilience

Source: (ford)

T.R.SAWHNEY MOTORS PVT.LTD.

Authorized Maruti Suzuki Car Dealer in New Delhi

T. R. Sawhney Motors Pvt. Ltd. - Fastest growing dealer of Maruti Suzuki in India.

We made a modest beginning in 1987 in Automobile Business and started as Maruti Authorized Service Station in 1993. Since then, the C.E.O. of the company Mr. Rajiv

Kumar Sawhney has been dreaming to be a Maruti Authorized Dealer by the beginning of new millennium. The technical director of the company Mr. Sanjiv Sawhney has also similar dream to provide service, which will be beyond customers’ imagination. With the

continuous encouragement and inspiration of the visionary chairman Mr.T.R.Sawhney, those dreams have come to a reality.

Today the company breathes Maruti, thinks Maruti and it is there in the blood of every employee with a passion for total customer care and satisfaction and is thriving to give a

new dimension to relationship with the customer. The company strongly believes that the life long relationship with the customer is the key of success. The company strongly

believes that the life long relationship with the customer is the key to the success. The company will be focusing on one to one marketing and personalized targeting. Service will be marketed as a product any time anywhere. We also believe building the

competence around our people and process to meet the customer expectations by adding value continuously so as to build a lifelong relationship and beyond.

Management

Founder Chairman - Late Mr. T. R. Sawhney

CEO / Director - Mr. Rajiv Kumar Sawhney

Managing Director - Mr. Sanjiv Sawhney

Director - Mr. Rahul Sawhney joined business in 2006 as Director after completing B.

Tech., (electronic communication) and MBA, Was awarded the All India Best Young

Entrepreneur in 2007–08.

Director - Mr. Vishal Sawhney has now joined in 2008 as Director after B. Tech., Was

awarded the All India Best Young Entrepreneur Award in 2008-09.

Executive Director - Ms. Malvika Sawhney joined in 2008 as Executive Director after

completing B. Tech.

Executive Director - Ms. Shradha Sawhney joined in 2010 as Executive Director after

completing Post - Graduation.

Source: (t.r.sawhney)

LITERATURE REVIEW

Ford Online – New Distribution Channels

Ford has become the first car manufacturer to sell their cars directly to the customer

online: encompassing the ‘Place’ element of the ‘Marketing Mix’. Although one would

expect this to have happened first in Japan – given their high-tech reputation and hugely

successful car manufacturing industry – through Ford Online British customers can

request a car, have it delivered to a wholly owned dealership and sign-and-drive away the

car. It seems simple enough; almost anything can be purchased online now-a-days

anyway. So why it is that Ford has altered their Marketing Mix when their competitors

have focused on traditional channels of distribution?

There are unfortunately several reasons why none of the car firms, even the Japanese

ones, have tried online selling, which may be an indication that it will not be successful.

Albeit customers can still try before they buy, there will no longer be sales-people to try

to up-sell the customer – extended warranties, limited edition paint and electronic gizmos

have high-margins, yet, as luxuries, customers particularly during a recession will need

convincing that they really do add value. Moreover, there is less customer interaction

with the product. Yes, the chosen car may be perfectly fine during the test drive; but

choosing the car to test becomes a whole lot harder when using their website, especially

given high cost of the product. Speaking of ‘Price’, another element of the ‘Marketing

Mix’, there are no price discounts online nor are there sales-people to haggle with, an

important issue given cars are income elastic.

But, of course, Ford is not a bunch of idiots – they have interviewed their customers to

come to this change in distribution – and the change could actually present a number of

benefits. In addition to a straight forward PR competitive advantage, it is more cost-

efficient to hold cars centrally – as there is more potential for less intermediaries and

more JIT stock control - and allows greater consumer customization of the car. Likewise,

by distributing to only 12 regional delivery centres, as well as promoting exclusivity,

there is no simultaneous need to promote a ‘Channel Value Proposition’ to the various

intermediaries, which means that sales-people will not be too aggressive, as they are

monitored under quality-control programs. There is also a greater scope for online

advertising, where already many consumers look online before visiting a dealership to

select a car.

So will the new distribution channel work? Well, that depends on what their current

marketing strategy wants to achieve. Ford knows that they are not going to revolutionize

(again) the way people buy their cars nor gain huge volumes of sales that would boost

their market share. But, as a more realistic aim, Ford can boast innovation over

competitors – a minor accomplishment, but psychologically it will benefit management

knowing they are one step ahead of the competition, even if no one else wants to follow

suit.

Ford Focus – Global Marketing Strategy

In the 20th Century multinational corporations (MNCs) have a choice to make: do we

apply a standardized marketing strategy or a differentiated approach to each geographic

region? Ford has boldly chosen the former in their marketing direction of the 2012 Ford

Focus – their flagship car. This will mean that the one car will be sold and promoted

generically across the globe, rather than adapting the product and promotional material to

suit local tastes. It is very unusual for a global firm to come out and state they are going

to take a standardized approach. Other MNCs, such as Starbucks and McDonald’s, have

been criticized for selling a generic product across the globe; this is a highly controversial

decision.

The marketing mix decision to use the same promotional material worldwide has been

made – from a functional point of view – as highly rational. Namely, the company has

adopted a global corporate strategy named ‘One Ford’ that has been adopted to make the

company more efficient and benefit from cost-reducing economies of scale. And this is

no surprise; given Ford’s last year financial results reported a $14 billion loss. The

marketing department’s strategy, therefore, clearly supports the company’s wider goals.

Hence, the logic is simple enough: by producing just one standard product to satisfy all of

their customers’ needs – as ambitious as it sounds – there are substantial cost savings to

be made. For instance, Ford currently spends $4 billion annual on promotion.

But there are more benefits that merely saving costs. As Jim Farley, Ford’s group vice

president of global marketing, insists, there are is a degree of marketing momentum that

can be generated; economies of scale are not just about reducing operating costs. No – it

is more than that. Marketing economies of scale are the benefits of having a large,

simultaneous marketing strategy across the globe. For instance, it enables a more

coherent message to be conveyed to consumers. And, in the case of the new Ford Focus,

the benefit being sold to consumers is technology.

Hence, the global division has created 50 short advertisements that each regional division

will choose to promote in their geographic area. This may be seen as Ford trying to

pursue a transnational strategy – thinking globally, acting locally. Thus, there is a world-

wide emphasis on innovation and cutting-edge design; there will be no risk of

decentralized marketing trying to sell conflicting benefits.

However, as I previously mentioned, this is a highly controversial approach. Since the

development of consumerism, firms have developed poor corporate reputations for trying

to sell homogenous products and cite them as the ugly side of globalization. Other truly

transnational companies, like HSBC, have developed a strong brand image around their

differentiated offerings. Moreover, differentiation is one of Michael Porter’s three

competitive strategies for success (Cost-leadership, differentiation and focus). Perhaps

Ford risks destroying its brand equity by become generic – and thus indistinctive.

Moreover, if we focus at the product itself, it is obvious that different consumers will

seek different benefits from the car. For instance, consumers in the USA may place style

and look as important product attributes; consumers in Europe could favor functional

design; consumers in Japan seek high-tech innovation. Can one product really satisfy all

of these consumer wants? Even if it can to an extent, the consumer may be better off

seeking a differentiated product that is highly tailored to the market segment they belong

to.

It should be clear by now that this strategy will either go down like as a huge success or a

failure. Although 99% of the time I prefer marketing that focuses on a niche – or at least

differentiates its products – I actually like Ford’s global approach. Not only does it make

practical sense, every company claims to differentiate their offerings – regardless of

whether or not they actually appeal to a specific market segment. I like Ford’s optimism.

In a way it says ‘this car is good enough for anyone, anywhere wanting to do anything’.

Source: (Josh Blatchford)

DISTRIBUTION STRATEGIES

Distribution strategies are (Kurtz, 2010, p46) to ensure that consumers find their products

in the proper quantities at the right times and places.

Marketing Channel Distribution

For the marketing channel selection, Ford Motor Company uses this channel as follow:

Producer Dealers Consumers

Vehicles that are manufactured at Ford factories are distributed to dealers through road or

train transportation. Consumers can buy the cars directly at the dealer’s show room.

Intensity of Market Coverage

There are 3 types of intensity of market coverage, which are intensive distribution,

selective distribution and exclusive distribution.

Pride and Ferrell (2010, p400) state that intensive distribution uses all available outlets

for distributing a product.

Selective distribution uses only some available outlets in an area to distribute a product.

Ford use exclusive distribution which is use only one outlet in a relatively large

geographic.

Exclusive distribution is suitable for products purchased infrequently, consumed over a

long period of time, or required service or information to fit them to buyers’ needs. Ford

Fiesta is a luxury automobile and only available in a select dealers’ show room.

Supply Chain Management

Supply chain management (Pride & Ferrell, 2010, p388) is a set of approaches used to

integrate the functions of operations management, logistics management, supply

management and marketing channel management so products are produced and

distributed, in the right quantities to the right locations and at the right time. Ford Motor

Company has its own manufacturer to produce vehicle parts and combine it into a car.

The Ford car will be sent through road transportation and train transportation to the

dealer.

Channel Management Issues

Now Ford can sell the product through online. However, consumer cannot do the test

drive through website. So, it is a weakness of online selling the car.

Source: (Dr.M.A.Lokhande, Vol. 1, No.2, FEBRUARY 2013)

MARUTI SUZUKI- DISTRIBUTION NETWORK

Distribution is an important marketing mix. In earlier days the consumers used to book

for a car and wait for more than a year to actually buy it. Also the concept of Show rooms

was non-existent. Even worse thing was the state of the after sales service. With an

objective to change this scenario & to offer better service to customers, Maruti took

initiative. To gain competitive advantage, Maruti Suzuki developed a unique distribution

network. Presently the company has a sales network of 802 centres in 555 towns and

cities, and provides service support to customers at 2740 workshops in over 1335 towns

and cities.

The basic objective behind establishing the vast distribution network was to reach the

customers even in remote areas and deliver the products of the company. The company

has formed the Dealer territories and the concept of competition amongst these dealers

has been brought about. Periodically corporate image campaigns in all dealership are

carried out. In 2003, to increase the competition the company implemented a strategy for

its dealers to increase their profitability levels. Special awards were sometimes given by

company for sales of special categories. Maruti Suzuki had given an opportunity to

dealers to make more profits from various avenues like used car finance and insurance

services. In 2001, Maruti started an initiative known as ‗Non Stop Maruti Express

Highway‘. As a part of this initiative Maruti developed 255 customer service outlets

along with 21 highway routes by 2001-02. Also with an intention to provide fast service

in less time Maruti had offered Express Service Facility. In the year 2008, Maruti had

near about 2,500 rural dealer sales executives, among the total 15,000 dealer sales

executives.

Source: (Dr.M.A.Lokhande, Vol. 1, No.2, FEBRUARY 2013)

An article printed in Times of India on April 16, 2013 revealed certain facts about

Maruti.

In a new slowdown strategy for its distribution network, car market leader Maruti Suzuki

has been advising dealers to focus on service to ride out the slump in new car sales. With

the service business expected to grow 20% over the next three years — in sharp contrast

to the new car sales industry which is in de-growth mode — the company is looking to

bank more on service rather than sales to keep its channel partners solvent and profitable

through the downturn.

In fiscal 2012-13, Maruti Suzuki's service network serviced over 17 million cars,

including accidental repairs. This was an increase of 5% over the previous year. The

service business is expected to increase by 8% this fiscal and almost 20% over the next

three years, with Maruti's service load expected to hit 20 million vehicles by 2015-16.

"It would not be an exaggeration to say that car service in a way is recession-proof and

for car manufacturers, with robust after sales service network, it is the biggest weaponry

to combat slowdown conditions," said a senior analyst with a Delhi-based MNC

consultancy.

Top executives say while the company's network is fighting tooth and nail for every new

car sale, it is the service network that is slowly taking center stage in keeping the channel

profitable despite the slide in demand.

In a recent meeting with dealers, Maruti Suzuki COO (marketing and sales) Mayank

Pareek referred to new car sales as "income from the stock market" while service income

was like "fixed deposit in a bank". Car sales may go up or down as the economy yo-yos,

but "income from car service is assured", he had said.

With over 3,000 workshops in more than 1,400 cities, Maruti has the largest sales and

service network in the country's car industry. Maruti's dealerships and workshops service

50,000 cars every day and around 17 million vehicles a year. Maruti service employs

around 90,000 people. But most importantly, this 'constant income' has been on the

growth path — unlike new car sales.

Maruti's focus on service is understandable given the size of its car pool in the market.

"While customers may postpone new car sales, they may not forego car service," said

Pareek. "Increase in service business enhances profitability of the dealer partner."

Source: (india)

An article printed in Economic Times on June 11, 2010 revealed certain facts about

Maruti.

India's top car-maker, Maruti Suzuki, is expanding its distribution network and plans to

add 200 more dealerships, as demand has picked up in the auto sector.

The company's Chief General Manager (Marketing), Shashank Srivastava said Maruti currently has 800-plus outlets covering more than 500 cities. "Our intention is to take up

the number of outlets to 1,000 this fiscal," he said.

The company is also betting big on the rural market. "Last year, we did very good sales in rural areas, where the growth was very, very good. Nearly 17 per cent of our sales were in the rural segment against nine per cent in the previous year (2008-09)," Srivastava told

PTI.

"We have gained good ground in the rural market and we will continue on that," he said.

He said the company was also focusing on the corporate sector, as it sees demand going up in this space

Source: (economic times)

OBJECTIVES

The present study revolves around the following objectives:

1. What are the roles and functions of channel partners.

2. Various types of channel levels.

3. What are considerations in channel design decisions

4. Use of Dealers, Stockist, Distributors etc…

5. How does the product becomes available to customer

6. Analysing customer’s Desired Service output levels

RESEARCH METHODOLOGY

A Research Methodology defines the purpose of the research, how it proceeds, how to

measure progress and what constitute success with respect to the objectives determined

for carrying out the research study. The appropriate research design

formulated is detailed below. Exploratory research: this kind of research has the primary

objective of development of insights into the problem. It studies the main area where the

problem lies and also tries to evaluate some appropriate courses of action. The

research methodology for the present study has been adopted to reflect these realties

and help reach the logical conclusion in an objective and scientific manner. The present

study contemplated an exploratory research.

Research Design

The research design is the basic framework, which provides guidelines for the rest of the

research process. The present research can be said to be exploratory. The research

des ign de te rmines the d irec t ion o f the s tudy througho ut and the

p rocedures to be followed. It determines the data collection method, sampling

method, the fieldwork and so on.

Nature of Data

Primary Data:

Primary data is basically fresh data collected directly from the target

respondents; it could be collected through Questionnaire Surveys, Interviews, Focus Group

Discussions Etc.

Secondary Data:

Secondary data that is already available and published. It could be internal and external

source of data. Internal source: which o r igina tes from the spec ific fie ld o r

a rea where re sea rch is carried out e.g. publish broachers, official reports etc.

External Source:

This originates outside the field of study like books, periodicals, journals,

newspapers and the Internet.

DATA COLLECTION

Primary data: Primary data was selected from the sample by a self-administrated

questionnaire in presence of the interviewer.

SAMPLE SIZE: Sample size: Dealers (1), Sample area: New Delhi, Sample Unit: staff

members

SECONDARY DATA:

Secondary data was collected through

•Articles,

•Reports,

•Journals,

•Magazines,

• Newspapers and

•Internet

Sampling Technique: Random sampling technique is generally employed to extract the

fruitful results. This includes the overall design, the sampling procedure, the data

collection methods, the field methods and the analysis procedures

Sampling Procedure Actually Employed: The process employed to select the sample was simple random sampling. Simple random sampling refers to that

sampling technique in which each and every unit of the population has an equal and same opportunity of being on the sample. In simple random sampling, which item gets selected is just a matter of chance.

Analytical Tools: Simple statistical tools have been used in the present study to analyze

and interpret the data collected from the field. The study has used percentiles method and the data are presented in the form of tables and diagrams.

LIMITATIONS

1. The survey was confined to New Delhi only and that to a particular brand

2. The data could be biased on dealer’s part.

3. MARUTI: Company produces the car which is suitable for average income

and lower income people.

4. FORD: The Ford product is expensive and only available for higher income

people. The design of car is not beautiful compare to other competitor car.

INFERENCES AND RECOMMENDATIONS

FORD DISTRIBUTION STRATEGIES

Distribution strategies are (Kurtz, 2010, p46) to ensure that consumers find their products

in the proper quantities at the right times and places.

Marketing Channel Distribution

For the marketing channel selection, Ford Motor Company uses this channel as follow:

Producer Dealers Consumers

Vehicles that are manufactured at Ford factories are distributed to dealers through road or

train transportation. Consumers can buy the cars directly at the dealer’s show room.

Intensity of Market Coverage

There are 3 types of intensity of market coverage, which are intensive distribution,

selective distribution and exclusive distribution.

Pride and Ferrell (2010, p400) state that intensive distribution uses all available outlets

for distributing a product.

Selective distribution uses only some available outlets in an area to distribute a product.

Ford use exclusive distribution which is use only one outlet in a relatively large

geographic.

Exclusive distribution is suitable for products purchased infrequently, consumed over a

long period of time, or required service or information to fit them to buyers’ needs. Ford

Fiesta is a luxury automobile and only available in a select dealers’ show room.

Supply Chain Management

Supply chain management (Pride & Ferrell, 2010, p388) is a set of approaches used to

integrate the functions of operations management, logistics management, supply

management and marketing channel management so products are produced and

distributed, in the right quantities to the right locations and at the right time. Ford Motor

Company has its own manufacturer to produce vehicle parts and combine it into a car.

The Ford car will be sent through road transportation and train transportation to the

dealer.

Channel Management Issues

Now Ford can sell the product through online. However, consumer cannot do the test

drive through website. So, it is a weakness of online selling the car.

MARUTI COMPANY STRATEGY

The company’s strategy is to capture rural market and to hire the women who are

belonging to the local community through which their product can reach the local

consumers. This also helps to create awareness among confined consumers.

Technology is becoming more and more advanced every day. The country's largest

carmaker Maruti Suzuki India relaunched WagonR also known as "The Blue-Eyed Boy".

In line with Maruti's strategy the new WagonR is powered by a K-Series engine (k10B),

the same unit which powers the A-Star and generates 68PS. The new WagonR will have

Bharat Stage IV emission norms and will be produced from the company's Gurgaon

facility.

"This new launch of WagonR is important to Maruti Suzuki for many reasons. It

demonstrates the growing research and development capability of the company.

The company claims a fuel efficiency of 18.9 kmpl. In addition, the car also sports a new

suspension and transmission. Maruti also claims that it’s all new Heating Ventillation and

Air Conditioning (HVAC) unit provides a temperature reduction of four degrees than the

existing model.

Overall looks have been tweaked to give the car a more modern and a curvier look. Based

on a new platform the overall length has increased and the wheelbase has been

lengthened by 40mm to 2,400mm, thereby allowing for increased space and better space

management within the car. The safety enhancements have been implemented in the form

of ABS, airbags and fog lamps; these are limited only to the top variant.

The WagonR was first introduced in India in 2001 and took some time to find favor

among buyers due to its non-conventional design for that time. The car was at time

powered by a 1061cc engine producing 64bhp. In 2006, Maruti gave the car a facelift

including a new nose job. In the same year Maruti also launched the Wagon R Duo which

could run on LPG apart from petrol.

CONCLUSION

FORD…

One tool marketers use to assess an organization’s strengths weaknesses, opportunities,

and threats. Strengths

Strengths define as the competitive advantages or core competencies that given the

organization an advantage in meeting the needs of its target markets. Ford automobile

company is the one of the best known brand name in the world. Then, the brand is well-

known in automobile industry and global markets due to huge marketing and advertising.

Ford admits greater amount of customer loyalty and all its individual brands have been

enjoying the benefits of the good reputation that they have through the quality makes and

services. Ford is providing the consumer more variety of car and commercial vehicle.

Some more, quality to ensure of Ford needs to be more complete and must be

consistently monitored with permit standard to make certain no future faults and thereby

to achieve customer satisfaction. Ford automobile company will maintain good relation

with the employees by offering better work environment and competitive wages that are

assert to recruits a qualified and skilled employee in all its functions. Otherwise, Ford is

more concerned about the working environment and safety aspects of the employees.

Furthermore, Ford always develops cars on standardized procedure and invested heavily

in alternate fuel source. This manufacturing facilities operating its business more than

thirty countries and enhances its manufacturing process at around ninety plants and

facilities worldwide that is because operations and distribution efficiency of the Ford

automobile company is the wealth.

Weaknesses

Weaknesses mean any limitations that a company faces in developing or implementing a

marketing strategy. Ford’s automobile company brand image was harmed and the

company has a lot of suffered due to products recalls. For example the Ford Focus recalls

the car which has some problem. This has made a large cost to the company as well as

harm the brand image and make a bad impact to Ford’s sales. Furthermore, Ford

automobile company lack of design phase and innovative design structures on their new

paddle of cars. This is because the technology not as well as other it will influence Ford

to cause the low productivity. Thus Ford can overcome their weakness to achieve greatest

of strengths. Apart of that, management is missing focus on some lines performance

because Ford automobile company expands more business operations in diversified

geographical areas. Next, Ford does not have an effective cost management system and

have not taken considerable efforts to overcome. Ford has a small market share therefore

the sale will decline the sales and also due to global recession in the world finance

market. That is the reason for decline of sales. Another reason is Ford will manufacture

the standard cars which are not able to cope up with current market automobile.

Opportunities

Opportunities know as a favorable condition in the environment that could produce

rewards for the organization if acted upon properly. Ford has to expand more option in

designing the cars and commercial vehicles are expected to switch toward hybrid electric

engines due to the petroleum. Hence, Ford can build the car that run on electricity that

form of energy outside the petrol and diesel and to promote pass through to the future

opportunities that will be increasing. Ford has a chance to become more environment

friendly company with cleaner engine emissions because hybrid engines are more fuel

efficient less pollute than conventional gasoline and diesel engines. Ford has a great

opportunity to produce fuel efficient cars and commercial vehicles. On the other way,

Ford has one more option in designing the cars and commercial vehicle based on electric

engine. The Ford automobile industry is having one more fuel efficient types whereas

cars can run on renewable energies like solar power and bio fuels. This can help the

company to become pioneers in the industry. The Ford’s car is providing the facilities

based on the travel habits of the whole family. By the other way, the Ford car also is

medium cost car which can be giving affordable by the medium class people.

Threats

Threats are the meaning for a conditions or barriers that may prevent the organization

from reaching its objectives. The cost of petroleum is rising day by day and remains to be

in the state of uncertainly so that electric drive vehicle that is the reason will be in high

demand. On the other hand, the Ford growth and development may effect by high-speed

growth in amount of competitors in this automobile industry. The main competitors of

Ford are Nissan, Honda, Toyota, and so on. They have also threatened Ford’s market

share. Besides this, Ford’s capital spending is indeed lower than the competitor. The

reason is this capital spending has included the research development expenditure which

could influence the company from going ahead. If other automobile manufacturers have

new ideas, program and new technology appear, that is also one of the threats to Ford

Company. Therefore the economy depression also will influence the consumer ability of

buying. Thus, the amount of sales will decline.

MARUTI...

Strengths:

It has a bigger name in the market

Established distribution and after sales network

Understanding of the Indian market

Ability to design products with different features

It has a Brand Image

It has a experience of the latest technology

It has a trust of people

It is a market leader for more than a decade

It has a great leadership chain in the market

It has a better after sales effect

The cars have a low maintenance cost.

Weaknesses:

It has a lack of experience in the foreign market.

It is comparatively new to diesel cars.

People resistant to upper segment models

Heavy import tariff on fully built imported models

The exports of the company are not good

There are less diesel models in the market as compared to others

The global image is not big

Opportunities:

Increased purchasing power of middle class family

Government subsidies

Tax benefits

Prospective buyers form two-wheeler segments

Great opportunities to be global

Introduction of more diesel vehicles

Opportunity to grow bigger by entering into bigger car markets

Great opportunity to be the king in the marketing every stage of industry

Threats:

Foreign companies entering the market, so a bigger threat for multi-national companies

Competition from second hand cars

Threats from Chinese manufacturers

To the market share, as big players are coming in the industry

Very few diesel cars in the market

ANNEXURE

1. Which automobile company distribution do you handle?

Toyota.

Ford.

Honda.

Maruti.

Any other :

2. What is your name:

3. What is your Designation:

4. Which segment automobile is the latest launch of your company this year?

Sedan

Sport Utility Vehicle

Hatch-Back.

Compressed SUV.

5. What is your distribution Strategy?

Visibility of strategy.

Conducting dealers meets.

Road shows &Exhibitions.

6. How Much time do you take to deliver if a customer asks for a model on

demand?

1 month.

3 month.

6 months

More

7. Do you get vehicle Stock by the company on credit?

Yes

No

Sometimes.

8. What is the most sold out Model of the car in your showroom?

9. Do you share cost of Promotion with the company at local level?

Yes

No

10. How is the sales performance of new launches?

Very Good.

Good

Average

11. Does the Customer’s inclination towards old models affect sales of new launches?

Yes

No

12. Does the company supply vehicles without order also?

Yes

No

13. What is your satisfaction level regarding profit margins you get?

Highly Satisfied

Satisfied

Dissatisfied

14. Does your brand provide enough spatial convenience to your customer?

Yes

No

15. Give ratings to the following parameters which affect the distribution:

Particulars Highly Important Moderately

Important

Less Important

Population of City /Town.

Sales Force

Location of the store

Dealers Network

Service Infrastructure

Technical Knowledge of

Product

Experience of the trade

BIBLIOGRAPHY

Bibliography Dr.M.A.Lokhande, V. S. (Vol. 1, No.2, FEBRUARY 2013). Marketing Strategies of Indian

Automobile Companies: A Case Study of Maruti Suzuki India Limited .

economic times. (n.d.). Retrieved from http://articles.economictimes.indiatimes.com/2010-06-

11/news/27586702_1_maruti-suzuki-rural-market-distribution-network

ford, h. (n.d.). harpreet ford. Retrieved from http://www.harpreetford.com/about_us.php

ICDP. (n.d.). ICDP. Retrieved from https://www.icdp.net/

india, t. o. (n.d.). Retrieved from http://timesofindia.indiatimes.com/business/india-

business/For-Maruti-service-will-beat-slowdown/articleshow/19572336.cms

Josh Blatchford, F. a. (n.d.).

t.r.sawhney. (n.d.). t.r.sawhney. Retrieved from http://www.trsawhneymotors.com/

Tuli, B. a. Retail Management.