1

Study of Promotional

Strategies for Cars in

India

2

Table of Contents

1. Objective

2. Scope of Work

3. Rationale

4. Theoretical Framework and Review of Literature

i. Promotional Strategy

ii. Promotional Mix

iii. Message and Media Strategy

iv. Communication Model- AIDA

5. Promotion Process For Cars

i. Selecting the target market

ii. Product and Brand Positioning

iii. Promotional Decisions

iv. Advertising

v. Direct Marketing

vi. Interactive/Interactive Marketing

vii. Sales Promotion

viii. Publicity/Public Relation

ix. Personal Selling

6. Ford Fiesta and its Promotions

i. Target Market

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ii. Adopting offer to suit target segment

iii. Market Competition

iv. Strategic Promotion of Ford

7. Questionnaire

8. Analyzed Survey Report of the Questionnaire

9. SWOT Analysis

10. SWOT Analysis of Ford Fiesta

11. Conclusion

12. Bibliography

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Chapter 1

Introduction

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Objective

To study and analyze the elements of Promotional Strategies.

Study and analysis of promotional strategies of Ford India for its product Ford

Fiesta.

Study the customer response regarding the promotions of cars in India.

Scope of the Project

Study the basic aspects of Promotional Strategies such as Sales Promotion,

Personal Selling, Advertising and Publicity.

Studying the customer response regarding promotions of cars in India through

a questionnaire.

Study the promotional strategies of Ford Fiesta with all the tools of promotion.

Analyze and interpret the responses by SWOT analysis.

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Data Collection and Analysis

Secondary data collection from the various car information websites,

newspapers, magazines, etc.

Primary data collected from a questionnaire designed to target the customer

regarding the promotions of cars in India.

Analysis of promotional strategies by SWOT analysis by evaluating the

Strengths, Weaknesses, Opportunities and Threats of Ford Fiesta by analyzing

the responses through the questionnaire.

Rationale

One of the fastest growing industries in the world is automobile industry. This

automobile industry even has its influence on the Indian market. There is an

emergence of global automobile players in India, such as Ford, for the past decade

and each player have their different promotional strategies to interact customers. This

project is an effort to understand these promotional strategies adopted by different

automobile companies in India. This project concerns with the study of choosing the

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most appropriate mix of advertising, sales promotion, personal selling and publicity

for cars in India with a detailed study of promotional strategy of Ford Fiesta. This

project also targets the customers in India regarding the promotions of cars in India

by reviewing and interpreting a questionnaire.

Chapter 2

Literature Survey

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Theoretical Framework and Review of Literature

Promotional Strategy

A successful product or service means nothing unless the benefit of such a service can

be communicated clearly to the target market. An organizations promotional strategy

can consist of:

Advertising: Is any non personal paid form of communication using any form of mass

media.

Public relations: Involves developing positive relationships with the organization

media public. The art of good public relations is not only to obtain favorable publicity

within the media, but it is also involves being able to handle successfully negative

attention.

Sales promotion: Commonly used to obtain an increase in sales short term. It could

involve using money off coupons or special offers.

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Personal selling: Selling a product service one to one.

Direct Mail: Is the sending of publicity material to a named person within an

organization. There has been a massive growth in direct mail campaigns over the last

5 years. Spending on direct mail now amounts to £18 bn a year representing 11.8% of

advertising expenditure (Source: Royal Mail 2000). Organizations can pay thousands

of pounds for databases, which contain names and addresses of potential customers.

Direct mail allows an organization to use their resources more effectively by allowing

them to send publicity material to a named person within their target segment. By

personalizing advertising, response rates increase thus increasing the chance of

improving sales. Listed below are links to organization whose business involves direct

mail.

Promotional Mix

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Message and Media Strategy

An effective communication campaign should comprise of a well thought out message

strategy. What message are you trying to put across to your target audience? How will

you deliver that message? Will it be through the appropriate use of branding? Logos

or slogan design? The message should reinforce the benefit of the product and should

also help the company in developing the positioning strategy of the product.

Companies with effective message strategies include:

Nike: Just do it.

Honda City: The race lies within.

Media strategy refers to how the organization is going to deliver their message. What

aspects of the promotional mix will the company use to deliver their message strategy.

Where will they promote? Clearly the company must take into account the readership

and general behavior of their target audience before they select their media strategy.

What newspapers does their target market read? What TV programmes do they

watch? Effective targeting of their media campaign could save the company on

valuable financial resources.

Communication Model- AIDA

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AIDA is a communication model which can be used by firms to aid them in selling

their product or services. AIDA is an Acronym for Attention, Interest, Desire, and

Action. When a product is launched the first goal is to grab attention. Think, how can

an organization use it skills to do this? Use well-known personalities to sell products?

Once you grab attention how can you hold Interest, through promoting features,

clearly stating the benefit the product has to offer? The third stage is desire, how can

you make the product desirable to the consumer? By demonstrating it? The final stage

is the purchase action; if the company has been successful with its strategy then the

target customer should purchase the product.

Internet Promotion

The development of the World Wide Web has changed the business environment

forever. Dot com fever has taken the industry and stock markets by storm. The e-

commerce revolution promises to deliver a more efficient way of conducting business.

Shoppers can now purchase from the comfort of their home 24 hours a day 7 days a

week.

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Owning a website is a now a crucial ingredient to the marketing mix strategy of an

organization. Consumers can now obtain instant information on products or services

to aid them in their crucial purchase decision. Sony Japan took pre-orders of their

popular Play Station 2 console over the net, which topped a 1 million after a few

days, European football stars are now issuing press releases over the web with the sites

registered under their own names. Hit rates are phenomenal.

Advertisers have now moved their money over to the internet as customers are on

average spending more time online then watching TV. Popular ways to advertise seem

to be with banners and pop ups.

Promotion Process for Cars

Selecting the Target Market

To say that target market selection is a part of promotional/marketing strategy

development is just stating the obvious. Marketing targeting simply means choosing

one‟s target market. It needs to be clarified at the outset that market targeting is not

synonymous with market segmentation. Segmentation is actually tee prelude to target

market selection. One has to carry out several tasks besides segmentation before

choosing the target market. Through segmentation, a firm divides the market into

many segments. But all these segments need not form its target market. Target market

signifies only those segments that it wants to adopt as its market. A selection is thus

involved in it.

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Marketing segmentation is a process that throws up not one but several market

segments. There may be segments that are sizeable and the ones that are not so

sizeable. There may be segments assuring immediate profits and the ones that call for

heavy investments in market development. There may also be segments that show

great potential, but display tough barriers to entry. As such, the question, which

segment/segments, the firm should select as its target market, assumes crucial

importance.

Markets can be segmented using several relevant bases. For example, demographic

characteristics of consumers, such as age, sex, income/purchasing capacity, education

level etc, form one base for segmentation. Geographic characteristics constitute

another; and buying behavior of the consumers forms yet another base. The various

types of segmentations are Geographic segmentation, Demographic segmentation,

Psychographic segmentation, etc.

Product Positioning and Brand Positioning

It is essential to understand the relationship between products positioning and brand

positioning. Though in discussions, the two terms are synonymously and

interchangeable used, technically they are different.

Product positioning denotes the specific product category/product class in which the

given product is opting to compete. And brand positioning denotes the positioning of

the brand viz-a viz the competing brands in the chosen product category.

It is evident that for any product, before entering the market it has to sequentially

carry out the two exercises, product positioning and brand positioning. In the first

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step, the product category where the new entrant should enter and compete, i.e.

against what all products it has to compete, has to be decided. In this step, it is the

broad function that the product is trying to serve that matters. This choice of product

category will decide the nature of the competition the product is going to face. Once

product category positioning is decided, the position for the new entrant against

competing brands in the chosen product category has to be analyzed and fixed.

Issues in Brand Positioning

In deciding the brand positioning, the issues are:

Which are the competing brands in the chosen product category?

What are the unique claims/strengths of the various brands?

What position do they enjoy in consumer‟s evaluation and perception?

What is the most favored position…? And yet vacant?

Can the new brand claim the needed distinction and take the position and

satisfy the need?

Promotional Decisions

Promotion has been defined as the coordination of all seller initiated efforts to set up

channels of information and persuasion in order to sell goods and services or promote

an idea. While implicit communication occurs through the various elements of the

marketing mix, most of an organization‟s communications with the market. The basic

tools used to accomplish an organization‟s communication objectives are often

referred to as the promotional mix.

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Advertising

Advertising is defined as any paid form of non personal communication about an

organization, product, service, or idea by an identified sponsor. The paid aspect of this

definition reflects the fact that the space or time for an advertising message generally

must be bought. An occasional exception to this is the public service announcement,

whose advertising space or time is donated by the media.

Advertising is the best-known and most widely discussed form of promotion, probably

because of its pervasiveness. It is also very important promotional tool, particularly for

companies, whose products and services are targeted at mass consumer markets. It is a

very cost-effective method for communicating with large audiences. It can be used to

create brand images and symbolic appeals for a company or brand.

Direct Marketing

One of the fastest-growing sectors of the U.S. economy is direct marketing, in which

organizations communicate directly with target customers to generate a response and

a transaction. It has become such an integral part of the IMC program of many

organizations and often involves separate objectives, budgets, and strategies; we view

direct marketing as a component of the promotional mix.

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Direct Marketing is much more than direct mail and mail order catalogs. It involves a

variety of activities, including database management, direct selling, telemarketing and

direct response ads through direct mail, the Internet, and various broadcast and print

media.

One of the major tools of direct marketing is direct response advertising, whereby a

product is promoted through an ad that encourages the consumer to purchase directly

from the manufacturer.

Interactive/Internet Marketing

Interactive media allow for the back-and-forth flow of information whereby users can

participate in and modify the form and content of the information they receive in real

time. Unlike traditional forms of marketing communications such as advertising,

which are one-way in nature, the new media allow users to perform a variety of

functions such as receive and alter information and images, make inquiries, respond

to questions and of course make purchases. In addition to the Internet, other forms of

interactive media include CDROMs, Kiosks, and interactive television.

Sales Promotion

The next variable in the promotional mix is sales promotion, which is generally

defined as those marketing activities that provide extra value or incentives to the sales

force, the distributors, or the ultimate consumer and can stimulate immediate sales,

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sales promotion is generally broken into Consumer-oriented and Trade-oriented

activities.

Consumer-oriented sales promotion is targeted to the ultimate user of a product or

service and includes couponing, sampling, premiums, rebates, contests, sweepstakes,

and various point-of-purchase materials.

Trade-oriented sales promotions are targeted towards marketing intermediaries such

as wholesalers, distributors and retailers.

Effective Sales Promotion

Sales promotion consists of diverse collection of incentive tools mostly short term,

designed to stimulate quicker and greater purchase of particular products of services

by the consumer. Sales promotion is the only method that makes use of incentives to

complete the push-pull promotional strategy of motivating the sale force, the dealer

and the consumer in transacting a sale.

Price-Off Offers

Price-off offers refers to offering the product at lower than the normal price. This

encourages immediate sales, attracts non-users, induces product trail and counters

competition.

Premium

Premium refers to the offer of an article of merchandise as an incentive in or to sell

the product.

Coupons

In order to encourage product trail, stimulate re-purchase rate and build loyalty

through news papers.

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Dealer stock display context

It is a type of point of purchase advertising which uses the show windows of the dealer

for providing exposure to the sponsor‟s products. Dealer participating enthusiastically

and creatively are awarded.

Publicity/ Public Relations

Publicity refers to non personal communications regarding an organization, product,

service, or idea not directly paid for or run under identified sponsorship. It usually

comes in the form of a news story, editorial or announcement about an organization

and its products and services. Like advertising, publicity is not directly paid for by the

company.

An advantage of publicity over other forms of promotion is its credibility. Another

advantage of publicity is its low cost, since the company is not paying its time or space

in a mass medium such as TV, radio or newspapers.

Public relations are defined as “the management function which evaluates public

attitudes, identifies the policies and procedures of an individual or organization with

the public interests and executes a program of action to earn public understanding

and acceptance”. Public relations generally have a broader objective than publicity, as

its purpose is to establish and maintain a positive image of the company among its

various publics.

Personal Selling

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It is a form of person-to-person communication in which a seller attempts to assist and

persuade prospective buyers to purchase the company‟s product or service or to act on

an idea. Unlike advertising, personal selling involves direct contact between buyer and

seller, either face-to-face or through some form of telecommunications such as

telephone sales. Personal selling involves more immediate and precise feedback

because the impact of the sales presentation can generally be assessed from the

customer‟s reactions.

FORD FIESTA

About Ford

The modern Ford India began production in 1998, although the roots trace back to

1907 when the Model A was launched. Its manufacturing facilities are in Maraimalai

Nagar near Chennai. Ford India began production in 1926, but was shut down in

1954. Production began again with the joint venture Mahindra Ford India, Limited

(MIFL) in 1995, a 50-50 venture with Mahindra & Mahindra Limited. Ford increased

its interest to 72% in 1998 and renamed the company Ford India Limited.

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The first model was the Ford Escort, which was later replaced by locally produced

Ford Ikon in 2001. It has since added Fusion, Fiesta, Mondeo, Endeavour and

Endeavour Thunder+ to its product line.

Key Products

Ford Ikon

Ford Fiesta

Ford Fusion

Ford Endeavour

Ford Fiesta

While Fiesta continued to impress people all over the globe, Ford had different plans

for the Indian market. Ford engineers in Melbourne, Australia, designed a car from

scratch specifically for the Indian market and badged it as Fiesta (2005).

This sedan was sold with two engine options, 1.4 Diesel (TDCI) and 1.4/1.6 Petrol.

The 1.6 Petrol version was marketed for its acceleration and performance to keep it

competitive with other car makers. The Diesel version saw much success as its main

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selling point was the fuel efficiency. Ford test delivered a whopping 30+Km/L Since

cost of fuel was rising this was the right time for Ford to showcase its turbocharged

direct-injection diesel technology. Ford claims to have sold more diesel variants than

its petrol ones.

Recently Ford gave some minor facial uplift to the well sold Fiesta and also reworked

on safety features. Dual Airbag was included because the competitors the Suzuki SX4

and Hyundai Verna had this and other safety features.

Ford Fiesta is engineered specifically to adapt the demanding Indian road conditions.

It is a mid-sized car having a perfect combination of style and solidity. The car has

high stability and exceptional driving comfort. Structurally engineered, Ford Fiesta

withstands severe collisions. It is loaded with state-of-the art safety features.

Model Variants

Fiesta 1.6 Duratec ZXI

Fiesta Duratec 1.6 SXI

Fiesta 1.6 S

Fiesta 1.4 Duratorq Exi

Fiesta Duratec 1.6 EXI (Pace Petrol and Diet Diesel)

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Fiesta Duratorq 1.4 Zxi

Fiesta Duratorq 1.4 SXI

Color Variants

Flare

Jewel Violet

Panther Black

Diamond White

Paprika Red

Vitro

Moondust Silver

Platinum

Promotions of FORD FIESTA

Catch Phrase

Go Fida!

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Quote Unquote

"Premium aspirational car in the mid-size segment..."

- Arvind Mathew, Managing Director, Ford India

Price Tag

The prices are to the close approximation ex-showroom as in Delhi. Please check the

latest prices and variant specifications with your dealer.

Target Market

On the basis of Demographic

Age: Young, Middle and Elderly

Gender: Male and Female

Fiesta Duratec EXI Rs.5.75 Lakhs

Fiesta 1.6 Duratec ZXI Rs.6.41 Lakhs

Fiesta Duratec 1.6 SXI Rs.7.01 Lakhs

Fiesta 1.4 TDCi ZXI Rs.7.25 Lakhs

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Profession: Businessmen, Servicemen, Industrialists, Bureaucrats, Politicians,

Students, Doctors, any successful professional.

Income: Upper Middle Income Group, High Income Group

On the basis of Psychographic

Lifestyle: Exciting, Trendy, Outdoor Oriented

Social Class: Upper Middle

On the basis of Geographic

Region: Northern, Southern, Eastern, Western region of India

Area: Metro cities, Semi-Urban and other Urban areas

Adopting Offer to suit Target Segment

Ford modifies its models for Indian target segments as shown below:

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Higher ground clearance to make the car more compatible to the rougher road

surface in India.

Stiffer rear springs to enable negotiating the ubiquitous potholes on Indian

roads.

Changes in cooling requirement, with greater airflow to the rear.

Higher resistance to dust.

Compatibility of engine with the quality of fuel available in India.

Location of horn buttons on the steering vehicles. (As the India motorist uses

the horn more frequently, for cars sold in India, the horn buttons are kept on

the steering wheel and not on a lever on the side as in the models sold in

Europe.)

Market Competition

Ford Fiesta comes in “C” segment „Sedan‟ and is available in both Diesel and Petrol

variants in Indian Market. Along with Fiesta, other cars in this segment are Hyundai

Verna, Maruti Suzuki SX4, Chevrolet Aveo and Tata Indigo Manza.

Strategic Promotions by Ford

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Ford follows the promotions at two levels, they a

1) Promotions of product directly by the manufacturer.

2) Promotions at dealer level.

In the first step the products of vehicles manufactured by the Ford Automotives are

directly promoted by the manufacturer by himself. He follows many promotional

strategies like

1. Advertising through television and newspaper.

2. Internet or interactive marketing.

3. Direct marketing.

In the second step the dealer of the vehicles promotes the vehicles.

The various promotional strategies followed by the dealers are

1. Advertising though news papers, radios, palm plates. In this all the features of

the product and its prices are given in detail to the customer.

2. By Hoardings, the promotion about the product and its features.

Hoardings

A heavy picture of the product which comprises of its attributes and special features

are displayed on the roadsides in the form of hoardings. It is a bit expensive strategy

but attracts many people who pass by that roadside.

This type of advertisement is prepared for those segments of people who cannot afford

their time in reading newspapers and watching televisions. While travelling from their

home to office, moving on their business activities they may watch these hoardings.

These hoarding are especially setup at the road signal stops.

Maintaining Data Bank

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In this the dealer collects personal/bio-data (address and contact number) of many

people from various organizations and different sector who are ready to buy the

vehicles and who change the vehicles regularly.

These people are met-in person or contacted through their contact number. The

various new features and new offers regarding the vehicles are advocated to them and

are given discounts on group purchase of vehicles, i.e. if 5 or more friends in the

group purchase the cars at a time then they are given special discounts on the

vehicles.

Free Insurance The dealers of Ford may give a special offer of free insurance on the purchase of each

vehicle to its new customers.

Relationship Marketing

Fortune Ford pays a special attention towards its old customers. To retain the old and

existing customers it conducts a corporate meet at a luxurious hotel. The event aims at

knowing the problems of the customers regarding the vehicles and also service

feedback.

In this way it maintains an effective relationship with the customers and gains the

reputation and goodwill in the minds of the customers.

Sales Promotion

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The sales promotion is done by ford at three levels:

1) Showroom Sales: In this the customers walk in to the showrooms to know

about the details of the product. Specially trained sales executives who are

present in the showrooms give a detailed explanation about the product to the

customers. Sales executives give a detailed note on the products features,

various offers given by the manufacturer and also by the dealer to the customer

and enhance the sales of the vehicles.

2) Corporate sales: A special team of sales executives are sent to some big

corporate sectors and there they personally meet the heads of the organizations

like C.E.O‟s, Managers, etc., and explain about the vehicles and the offers and

special schemes provided by the dealer to them on bulk purchase of the

vehicles and try to promote the sales of the vehicles.

3) Field sales: The sales executives conduct some events with the corporate

working people and try to demonstrate the product features and its benefits and

try to promote the product and increase its sales.

Conducting Customer Delight Program

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This is a unique program conducted by the dealers of Ford. This is a program

conducted to retain the old customers of the Ford. The old customers of Ford are

meeting personally and they are requested to give their feedback by filling in the

questionnaire which is specially prepared for them. In this questionnaire their

problems regarding the vehicle and also their post sale service experience are taken. If

there exists any problem, then the Fortune Ford service men try to resolve the

problems of their customers as soon as possible and makes the customer satisfied. This

is a technique to attract the new customers by satisfying the old customers and gaining

goodwill in the market.

Extended Warranty

The dealers of Ford Fiesta give an extended warranty to its customers where there will

be extended time duration in the warranty.

What is Extended Warranty?

Factory Warranty covers only for a specific period of time/mileage.

After the factory warranty expires, customer is exposed to the risk of parts

failures.

This is applicable for any machine/equipment/vehicle.

Extended Warranty:

Is an extension of Factory Warranty

Offers almost similar coverage as Factory Warranty

Comes with a time-bound (eg. 1yr/2yrs but unlimited mileage cap)

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Covers all Mechanical and Electrical Failures

Covers labor

Why is extended warranty needed?

Offers peace of mind motoring

Protects against unexpected and non-budgeted expenses

Can be transferred, hence increases the resale value.

What does it NOT cover?

Does not cover wear and tear of parts

Does not cover scheduled service items

Does not cover accident repairs

Benefits to customer

Protection from manufacturing and material defects

Car can be repaired at any Ford out let across the country

Unlimited number of claims

No excess to pay

One up-front payment only

Inflation protection from rising costs of parts and labor

All repairs carried out by qualified Ford technicians

Warranty can be transferred when vehicle is sold – better resale value

Total peace of mind

TOTAL MAINTENANCE PLAN

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What is Total Maintenance Plan?

Cost of ownership is the key factor while considering vehicle purchases

As part of regular maintenance, customers spend on

a) Maintenance parts that are to be replace at specific intervals

b) Replacement of worn out parts

c) Labor charge for the above

A comprehensive maintenance plan by Ford will serve as a good tool to

improve the service experience and minimize concerns on cost of ownership of

the vehicle

Total Maintenance Plan (TMP) is a complete service solution provided to the

customer. This enables the customer to have total peace of mind in the form of

a “Maintenance Holiday”

What does it cover?

Scheduled servicing like Engine Oil change, Fuel filter, Oil filter, Spark plugs

etc.

Non-scheduled maintenance like Brake Pads/Shoes, Brake Discs, Clutch

Plates, Lower Suspension Arms, Shock Absorbers etc.

Mechanical/Electrical repairs

Labor for all the above

What does it NOT cover?

Accident repairs

Tyres

Fuel

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Benefits to the customer

Total peace of mind

Fixed price for next 2 to 3 years

Increased residual value of the car

Only Ford genuine parts are used

Can avail this service across the country at all Ford authorized outlets

Transferable

Incase of total loss, can be cancelled

Ford factory backed programme

Diagnosis/repairs as per recommended standards and practices

Vehicles serviced by Ford trained and certified technicians

Advertising

Advertising is a direct tool of promotion as any non personal paid form of

communication using any form of mass media such as TV, radio or newspapers. The

television advertisement of Ford Fiesta emphasize on the powerful engine and

mileage. The advertising of Fiesta relates with the word “fida”, and its catch phrase is

“go fida”.

Advertisement of Fiesta is through TV commercials, Print Media (Mainline

newspapers, magazines- auto and general and lifestyle), placing hoardings and on-

line advertisement.

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It is also done by sponsored Links on popular social networking websites and through

banners, etc.

The other indirect tools of promotions are through sponsorship and words of mouth.

Ford sponsors various environment and sports events. Ford‟s cars are very much

appreciated for their superb performance and stylish aerodynamic looks. Among

motorsport lovers the ford cars are promoted in Rally Racing Championships.

Now, to understand the customers view regarding the promotion of cars in India and

its effect on customers is done through a questionnaire. The basic method adopted in

conducting the study is a structured questionnaire. Questionnaire is administered on

the sample respondents. However, there are certain cases where personal interactive

method is followed with customers to find the satisfaction level.

The questionnaire study the impact of various promotion techniques and tool used for

promoting cars on the customers in India.

Sales figures ( www.carwale.com):

Ford Fiesta: 2213 units (in Sep „09), 1478 units (in Sep „08)

Honda City: 4281 units (in Sep „09), 2566 units (in Sep „08)

Maruti Suzuki SX4: 2134 units (in Sep „09)

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QUESTIONNAIRE:

Name:

E-mail address:

1) Which of the following company‟s car do you own?

a) Maruti Suzuki

b) Hyundai

c) Honda

d) Ford

e) Chevrolet

f) Other

(Respondent can opt for more than one choice)

2) What do you like most about a car?

a) Style/design

b) Comfort

c) Brand

d) Service

3) What do you feel great about your car when compared to other cars in the

market?

a) Fuel Efficiency

b) Durability

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c) Low Maintenance

d) Sound Quality

e) Brand Name

4) How do you come to know about your car before purchasing?

a) From friends, relatives

b) Advertisements

c) Car Experts

d) Sale‟s Persons visit

e) Auto Magazines or shows

5) To which media do you get expose regularly?

a) Television

b) Magazine

c) News Papers

d) Radio

6) What kind of TV channels do you watch regularly?

a) National News Channel

b) Regional News Channel

c) Sports Channel

d) Entertainment Channels

7) What kinds of offers do you like or expect from the dealer?

a) Free insurance

b) Special discounts on sales of cars

c) Extending the service period

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d) Finance availability with 0% interest

8) How do you feel when an unknown sales person approaches you by knowing

your full details to demonstrate about any product?

a) I will respond

b) Lost my privacy

c) Interested in knowing (if I feel a need of it)

9) What‟s your opinion on Brand Ambassador of a car?

a) Very necessary

b) Not necessary

c) Waste of money for the company

10) What‟s your opinion about the previous brand ambassador Abhishek

Bachchan endorsing Ford Fiesta?

a) Fulfilled the purpose

b) Unable to attract customers

c) They were not apt for it

11) Who do you suggest as the right person for promoting the car?

a) Sports Person

b) Film Star

c) Car Expert

d) Any celebrity

12) Do you think the expensive hoardings of cars catch your eyes at the roadside?

a) Absolutely

b) Don‟t bother

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c) Not at all

13) Which company‟s product do you think are reliable?

a) Maruti Suzuki

b) Honda

c) Hyundai

d) Ford

e) Others

14) Which brand do you seriously consider before making a car purchase?

a) Maruti Suzuki

b) Hyundai

c) Honda

d) Ford

e) Other

15) What is your profession?

a) Student

b) Businessman

c) Service

d) Other Professional

Thanks for taking the time to fill out this questionnaire and for providing valuable

information which will be used for my project work, and reports. We do not share or

sell your name, e mail address or any other data with anyone.

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Chapter 3

Analysis

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Analyzed Survey Report of the Questionnaire

1) Which of the following company‟s car do you own?

g) Maruti Suzuki

h) Hyundai

i) Honda

j) Ford

k) Chevrolet

l) Other

(Respondent can opt for more than one choice)

Data Analysis

Name of the Company % of Respondents

Maruti Suzuki 45

Hyundai 30

Honda 13

Ford 7

Chevrolet 2

Other 3

Interpretation

This question is meant for taking the information regarding the most preferred car

company in India. From the above graph it is found that most preferred car company

is Maruti Suzuki.

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2) What do you like most about a car?

e) Style/design

f) Comfort

g) Brand

h) Service

Data Analysis

Customer Preference No of Respondents

Style/Design 27

Comfort 69

Brand 39

Service 15

Interpretation

This question is meant to know the Respondents preferences and likes towards the

cars. From the data we can position our product to the comfort seeking group of

people.

3) What do you feel great about your car when compared to other cars in the

market?

f) Fuel Efficiency

g) Durability

h) Low Maintenance

i) Sound Quality

j) Brand Name

41

Data Analysis

Customers Perspective No. of Respondents

Fuel Efficiency 6

Durability 21

Low Maintenance 27

Sound Quality 36

Brand Name 60

Interpretation

From this question we can position the cars according to the Respondents

perspectives. Many of the Respondents are buying the cars by seeing its Brand Name

only. The no. of customers satisfied with the fuel efficiency are very low.

4) How do you come to know about your car before purchasing?

f) From friends, relatives

g) Advertisements

h) Car Experts

i) Sale‟s Persons visit

j) Auto Magazines or shows

Data Analysis

Source of Awareness No. of Respondents

From friends, relatives 27

Advertisements 75

42

Car Experts 9

Sale‟s Persons Visit 24

Auto Magazines 15

Interpretation

Most of the Respondents came to know about their vehicle through advertisements

only. The major media that attracted the customers is television.

5) To which media do you get expose regularly?

e) Television

f) Magazine

g) News Papers

h) Radio

Data Analysis

Media No. of Respondents

Television 78

Magazine 21

News Papers 48

Radio 3

Interpretation

From this analysis we come to know that most of the Respondents are interested in

watching televisions, which is a good media for communicating with people and

delivering our intentions about product.

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6) What kind of TV channels do you watch regularly?

e) National News Channel

f) Regional News Channel

g) Sports Channel

h) Entertainment Channels

Data Analysis

TV Channel No. of Respondents

National News Channel 30

Regional News Channel 48

Sports Channel 12

Entertainment Channels 60

Interpretation

This question is meant to know the interests and preferences of Respondents towards

T.V. channels. More than quarter of the sample size showed interest only on the

entertainment channels and next preference goes to the regional news channels.

7) What kinds of offers do you like or expect from the dealer?

e) Free insurance

f) Special discounts on sales of cars

g) Extending the service period

44

h) Finance availability with 0% interest

Data Analysis

Offers No. of Respondents

Free Insurance 27

Special Discounts 9

Extending the service period 81

0% Finance 33

Interpretation

By the result of this question we come to know about the various promotional

techniques/offers which attract the customers. From the above analysis many

customers are expecting the extension in the service period from the various offers

given to them.

8) How do you feel when an unknown sales person approaches you by knowing

your full details to demonstrate about any product?

d) I will respond

e) Lost my privacy

f) Interested in knowing (if I feel a need of it)

Data Analysis

Customer Opinion No. of Respondents

I will respond 33

Lost my privacy 15

45

Interested in knowing 102

Interpretation

This question is prepared indirectly to know about the customer‟s opinion about the

Data Bank maintenance by the company/dealers. In reply majority of the customers

gave a positive reply by showing interest in knowing about the cars when a sales

person gives a detailed description about the cars.

9) What‟s your opinion on Brand Ambassador of a car?

d) Very necessary

e) Not necessary

f) Waste of money for the company

Data Analysis

Customer Opinion on Ambassador No. of Respondents

Very Necessary 129

Not Necessary 21

Waste of money 0

Interpretation

This question is meant to know about the importance of Brand Ambassador for a car

in the customer‟s point of view. Most of the respondents think that a Brand

Ambassador is very necessary for promoting a car.

46

10) What‟s your opinion about the previous ambassador Abhishek Bachchan

endorsing Ford Fiesta?

d) Fulfilled the purpose

e) Unable to attract customers

f) They were not apt for it

Data Analysis

Customer Opinion No. of Respondents

Fulfill the purpose 114

Unable to attract customers 30

They were not apt for it 6

Interpretation

Most of the respondents think that the Brand Ambassadors full filled the purpose and

were able to increase the sales of the cars.

11) Who do you suggest as the right person for promoting the car?

e) Sports Person

f) Film Star

g) Car Expert

h) Any celebrity

Data Analysis

Customer Suggestion No. of Respondents

Sports person 54

47

Film Star 63

Car Expert 21

Any Celebrity 12

Interpretation

Most of the respondents suggest a film star as the best ambassador. Because many of

them get attracted only to their favorite film stars other than other brand ambassadors.

12) Do you think the expensive hoardings of cars catch your eyes at the roadside?

d) Absolutely

e) Don‟t bother

f) Not at all

Data Analysis

Customer Opinion No. of Respondents

Absolutely 90

Don‟t bother 48

Not at all 12

Interpretation

Most of the respondents think that hoardings are a good option for catching the eyes

of a customer.

13) Which company‟s product do you think are reliable?

a) Maruti Suzuki

48

b) Honda

c) Hyundai

d) Ford

e) Other

Data Analysis

Company No. of Respondents

Maruti Suzuki 45

Honda 32

Hyundai 36

Ford 34

Other 2

Interpretation

The response shows that Maruti Suzuki, Honda, Hyundai, and Ford have good

reputation of reliable products.

14) Which brand do you seriously consider before making a car purchase?

f) Maruti Suzuki

g) Hyundai

h) Honda

i) Ford

j) Other

Data Analysis

Car Brand No. of Respondents

49

Maruti Suzuki 87

Hyundai 27

Honda 21

Ford 3

Others 12

Interpretation

The response shows that most of the people think of Maruti Suzuki product before

making a decision.

15) What is your profession?

e) Student

f) Businessman

g) Service

h) Other Professional

Data Analysis

Profession No.of respondents

Students 69

Businessman 24

Service 45

Other Professional 12

Interpretation

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Most of the respondents were students but more than half of the respondents were

working.

According to the questionnaire, the facts gathered about the promotional strategies of

cars In India is as follows:

1. The customers prefer Comfort in a car, more than style or design, so in

promotional strategies more emphasis should be on comfort level a car

provides.

2. The companies should catch in for their brand name while designing the

promotional strategies.

3. Advertisements of the cars are the best source of awareness for the customers.

4. Television is the most important media that most of the people communicate

with, and entertainment channels should more be targeted than news channel

or sports channel.

5. More people look for extended service period while buying a car, rather than

special discounts and other offers.

6. There is a strong requirement of a Brand Ambassador for promoting a car,

and most respondents feel that a film star is the most appropriate choice.

7. Expensive hoardings at the roadside can prove to be an important medium for

spreading awareness about the product.

8. Approximately, half of the respondents were students and rests were working

professionals.

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SWOT Analysis

SWOT Analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business venture.

It involves specifying the objective of the business venture or project and identifying

the internal and external factors that are favorable and unfavorable to achieving that

objective.

Strengths: attributes of the person or company those are helpful to

achieving the objective.

Weaknesses: attributes of the person or company those are harmful to

achieving the objective.

Opportunities: external conditions those are helpful to achieving the

objective.

Threats: external conditions which could do damage to the objective.

Matching and converting

Another way of utilizing SWOT is matching and converting.

Matching is used to find competitive advantages by matching the strengths to

opportunities.

52

Converting is to apply conversion strategies to convert threats or weaknesses

into strengths or opportunities

A firm should not necessarily pursue the more lucrative opportunities. Rather, it may

have a better chance at developing a competitive advantage by identifying a fit between

the firm's strengths and upcoming opportunities. In some cases, the firm can

overcome a weakness in order to prepare itself to pursue a compelling opportunity.

In SWOT analysis, Strength and Weakness are internal factors while Opportunities

and Threats are external factors.

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SWOT Analysis of Ford (Fiesta)

Internal Factors

Strength

Good experience of Indian market of about 15 years. Have tested the potential

of Indian market.

Reputation of reliable and performance oriented products.

Settled and has branches in North, South, East and West of India. Location is

strength for their business.

Reputation of one of the largest car manufacturers in the world.

Weakness

Weaker brand image in India. Despite of strong hold in larger markets of the

world, has weaker brand image in one of Asia‟s largest car market.

Lack of aggressive marketing.

No brand ambassador. After previous brand ambassador, Abhishek Bachchan

for Ford Fiesta, no brand endorsements are done with any celebrity.

Very low market share. Companies such as Hyundai and Honda, has more

market share despite entering the Indian market after Ford. (media.ford.com)

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Opportunities

Can capitalize on existing brand.

Moving into new segment that offers improved profits.

Cost reduction through research and development.

Increasing purchase power of Indian middle class.

Threats

Rising prices of Oil and raw material all over the world. Rising prices in the

global economy could pose a threat. The price of steel and aluminum is

increasing putting pressure on the costs of production.

Maruti Suzuki, Honda, Hyundai are all in the segment of tuff competition.

Every company has a strong hold on one segment.

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Chapter 4

Conclusion

56

Conclusion

1. Advertising, Publicity, Personal Selling, Sales Promotion and Internet

Marketing are the most important medium of promotion for cars.

2. Television is the most important medium of advertising and promoting

followed by magazines, newspaper, hoardings and radio.

3. Choosing a brand ambassador is beneficial for the promotion of a car.

4. Customers look for various offers while buying a car, for example, free

insurance, special discounts on sale, extending service period, finance

availability at 0 %, etc.

5. SWOT analysis of Ford (Fiesta) is done with its Strength, Weakness,

Opportunity and Threats.

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Bibliography

1. Marketing Management, Twelfth Edition, Philip Kotler, Kevin Lane Keller,

Abraham Koshy, Mithileshwar Jha, Pearson Education.

2. http://www.india.ford.com/servlet/ContentServer?pagename=DFY/IN

3. http://www.carwale.com/blog/category/sales-figures/

4. http://media.ford.com/

5. http://tutor2u.net/business/marketing/promotion_mix.asp

6. http://learnmarketing.net/promotion.htm

7. http://en.wikipedia.org/wiki/SWOT_analysis