Presented by:

Anshumeek Upreti

Neeraj Kumar Phookan

Palak Anand

SUV market in India is growing and comprises of 10% of the total car market because of the following reasons-

Changing preferences of the customers.

Compact SUV’s entering the Indian market.

Easy on Indian roads.

Lesser fuel consumption.

Renault S.A. is a French multinational vehicle

manufacturer started in 1899.

Headquartered in Boulogne-Billancourt.

Formed of a number of subsidiaries.

Renault came to India in 2005 through a 51:49

joint venture with Mahindra & Mahindra.

Logan was the first product launched in 2007.

Renault India Private Limited was established in

October 2010 is a wholly owned subsidiary of

Renault S.A. of France.

640 acre production facility located in

Oragadam, near Chennai, Tamil Nadu.

Renault Logan initially was considered to be a success

in the Indian market.

It had dated looks.

High pricing was a big factor.

Competitors like Maruti Suzuki Swift, Tata Indigo and the Toyota Etios.

Renault planned to leave the Indian market after this failure.

Renault re-entered Indian market in 2010.

Its next offerings were the Fluence, Koleos and Pulse

which were not a big hit.

Renault launched the Duster on 4th July 2012 in India,

with various modifications for the Indian market.

Duster finally proved as the turning point for Renault

in the Indian market with its success.

POLITICAL:

Relaxation in Foreign Exchange, tarrif rates etc.

Emission regulations.

Specifications of vehicles viz. body size, engine, capacity

etc.

ECONOMIC:

Rise in GDP and the increase in disposable income.

Contributes to 7% of total GDP.

Gives employment to 7-8% of the total population.

SOCIAL-

Changing lifestyle has led to increase in buying of vehicles.

Growth in urbanization and increased average household income has led to increase in buying of vehicles.

The average Indian customer is always on the look for value for money.

TECHNOLOGICAL:

Innovations in terms of fuel economy and performance.

Increased safety regulations has led to a rise innovation in the same.

Use of internet has changed the way of placing orders according to needs and demands.

The Indian Automotive industry consists of

these three segments:

Hatchbacks (55%)

Sedans (18%)

SUVs (9%)

MUVs (18%)

Hatchback Sedan SUV

Sales volume:

23,366,246 in 2015 from 21,500,165 in 2014, a growth of

8%.

Domestic sales(passenger vehicles):

PVs grew by 3.90% in of which passenger cars had a grew

by 4.99% and Utility Vehicles by 5.30%.

Market Size:

During Apr-Jan 2016 the auto industry produced a total

19.84 million compared to 19.64 million in the previous FY.

The Indian market is affected by the following

New car launch in market and its comparison to existing cars in the same segment.

Cars that are in the market for 1-2 years.

Cars that are in the market for more than 4 years.

Purchase of second hand car.

In India, buying a car is the 2nd most important and expensive decision.

Change in lifestyle.

Increasing standards.

Hatchback

Major share in the market.

First car for an individual or small family(e.g. Maruti

800, Tata Nano)

Rising incomes has lead to opting for premium

hatchbacks (e.g Maruti Swift, Hyundai Elite i20)

Sedan

A family with a hatchback, upgrades to Sedan.

Symbol of status

Found in different ranges that are affordable

SUVs

Compact SUVs in demand

Advantageous over Sedans in the hilly regions.

Made for Indian roads

Affordable with elegant looks and light engines.

Mahindra XUV 500 Target Market

Age group of customers in their late 20s and early 30s

“ Live Young, Live Free”.

Portrayed for the global market.

Postioning

Design was inspired by a cheetah.

6 inch touch screen with GPS.

Dual zone climate control.

DVD and I-pod functionality.

Differentiation

monocoque chassis.

transversely mounted engine in an SUV.

Marketing Mix

Product:

Promoted as a global premium product.

Innovations such as monocoque chassis and transversely mounted engine.

Variations.

Price:

Flexible as well as premium pricing strategy.

Promotion:

Mahindra chose secrecy as a marketing strategy.

“Guess the Name”, “Unveil the XUV campaign”, “Guess the price” were

part of the online promotional strategies.

Place:

A wide range of showrooms and strong after sales service across India.

Ford EcoSport

Targeting Market

It was projected towards the younger generation

Marketed as an “Urban SUV” which was able to conquer bad Indian roads.

Positioning

200mm ground clearance.

Ability to park anywhere in the city

like a normal hatchback.

Hill Launch Assist.

Climate Control, ABS with EBD,

Traction Control etc.

Differentiation

Sub 4 metre SUV, thus reducing the excise duty on raw materials.

Marketing Mix

Product

Shorter wheelbase resulted in good maneuverability in city traffic.

The innovations used were new in its segment like the use of Hill Launch

Assist.

Price

Sub 4 metre design resulted in reduction in excise duties which thus

reducing the price of the car.

Promotion

Urban Discoveries in 12 major cities in India and also on social media.

Place

One Ford Plan unified the service networks and dealerships to provide

high quality after sales service.

Ideal for a country like India with bad road conditions.

Bookings reached to almost the 10,000 mark on the first week on

launch.

Grabbed 23% market share in 2012 with production increasing

from 7 to 20 cars per hour.

86 per cent of Renault India's production, 81 per cent of its sales

and 100 per cent of its exports.

41 modifications to adapt with the Indian flavour.

As a French Automobile Company Entering India.

Premium market offering.

Frugal Engineering in terms of India without compromising

quality.

Ability to adapt with changing market conditions.

60% localization when sourcing raw materials.

The Market Research adopted for the Duster:

Took a sample of 200 people from different age groups.

Parameters like level of income, expectations from a

compact SUV, aesthetics were taken into account.

30 families were selected .

41 changes that were done on

the European model.

Voting for the most liked car.

Role of Promotion

Promotions on social networking sites.

Facebook game “Big, Bold and Beautiful”.

Renault invited car reviewers, journalists from auto publications,

bloggers to review about their new vehicle.

Renault initiated the “Gang of Dusters” programme.

In 2015 when 1 lakh, Duster Explore was launched at a price of

Rs. 9.99 lakhs.

Sales figures:

The company sold a total of around 5924 units in December

2012.

Duster alone had a sales figure of 4485 units.

Market Shares: