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On
New product develop
With reference to course, marketing management
Submitted to:
Submitted by:
Department of R1902B44
LPU. Group- 2
DECLARATION
I, Jagpal singh, student of Lovely Professional
University have completed the Project on
Marketing Plan
On
RELION LUXURY
CAR
Jagpal singh
ACKNOWLEDGEMENT
Many people have influenced the shape and content of this project, and
many supported me through it. I express my sincere gratitude to Lect.
Ms. Grish Taneja for assigning me a project on Marketing Plan,
which is an interesting and exhaustive subject.
He has been an inspiration and role model for this topic. His guidance
and active support has made it possible to complete the assignment.
I would also like to thank my friends who have helped and encouraged
me throughout the working of this project.
Last but not the least I would like to thank the Almighty for always
helping me.
JAGPAL SINGH
PREFACE
Company Profile
Marketing mix
Situation analysis
Marketing strategies
Marketing mix (4 P’s),
Marketing Strategies
Marketing Environment
Public Relation
Positioning
Product Development
Consumer behavior
Conclusion.
REILON LUXURY CAR
INTRODUCTION
The steering system of the LUXURY CAR is an amazing invention. Every
beginning goes through a frustrating period when they learn how to
stay upright and steer. Every cyclist who has passed this learning
period can simply jump on a LUXURY CAR and ride it without giving the
matter much thought. This is because the steering system is designed
to provide input which helps to keep the rider upright. It is a simple,
elegant system which has been around since the days of the high-
wheeler. Although a LUXURY CAR rider certainly doesn't have to know
how it works in order to appreciate it, it also provides an interesting
puzzle in mechanics. There is quite a bit of depth to the problem, with
books, articles, and graduate theses about the subject, and ongoing
debates with both clueful and clueless participants. There are still
aspects which seem to confuse everybody who has anything to say
about them. This article aims to present some of the basics. The
LUXURY CAR that I’ve introduced in the market is called “REILON”.
COMPANY PROFILE
In the 2008s, for example, SIGMA MOTOR COMPANY became the first
company in India to prove that it was possible to drive a vehicle without
polluting the roads. The company introduced new generation 4 whalers that
set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it
- Shut it - Forget it' CAMPAIGN captured the imagination of commuters
across India, and SIGMA MOTOR COMPANY sold millions of bikes purely
on the commitment of increased mileage.
SIGMA MOTOR COMPANY was also one of India 's first automotive
companies to get close to the customer. As Brijmohan Lall Munjal, the
Chairman, SIGMA MOTOR COMPANY Motors succinctly puts it, "We
pioneered India's automobiles industry, and it's our responsibility
now to take the industry to the next level. We'll do all it takes to reach
there.''
Key Highlights
• SIGMA MOTOR COMPANY enjoys a significant brand premium. Its
aggressive pricing strategy to take on the competition has helped it in
volume growth.
• Variant launches in each of Splendor and Passion has helped in
stemming the loss in market share in the face of the competition. SIGMA
MOTOR COMPANY now plans to launch two new models.
• The company has started logging good volume growth after the launch
of RELION i10 and RELION Verma as well as the RELION Accent,
which has also rejuvenated its product range. Volumes should improve
further, due to the base effect and improved rural sentiment on the back
of higher farm incomes.
• Aggressive cost controls and significant economies of scale are
expected to aid SIGMA MOTOR COMPANY in retaining margins.
• SIGMA MOTOR COMPANY will continue to be an attractive dividend
yield play as the company continues to generate significant free cash
flows as its capital requirements are limited.
KEY POLICIES
At SIGMA MOTOR COMPANY, their goal is not only to sell us a bike, but
also to help us every step of the way in making our world a better place to
live in. Besides its will to provide a high-quality service to all of its
customers, SIGMA MOTOR COMPANY takes a stand as a socially
responsible enterprise respectful of its environment and respectful of the
important issues.
Environment Policy
Quality Policy
Excellence in quality is the core value of SIGMA MOTOR COMPANY's
philosophy.
They are committed at all levels to achieve high quality in whatever we do,
particularly in their products and services which will meet and exceed
customer's growing aspirations through:
Safety Policy
Executive Summary
SIGMA MOTOR COMPANY Motors (India) Ltd. is the World's biggest
manufacturer of automobiles (by quantity). It set up a develop a new
technology, set up in 2008 in INDIA at Mumbai, to manufacture and sell
automobiles in India. SIGMA Motor Company brought in the technological
know-how, and Hero the India presence, and the local manufacturing
ability.
SIGMA MOTOR COMPANY Motors captured the market for motorcycles in
India, by offering an affordable Car, Luxury Car automobiles that was
extremely fuel efficient. They also established dealerships al over the
country even urban areas. The strategy of SIGMA MOTOR COMPANY
Motors was to capture the market by offering a superior product at an
affordable price, with excellent customer service(Right cost) . The
strategy has beensuccessful to date and SIGMA MOTOR COMPANY
Motors (India) Ltd is the dominant market leader with over 50% of market
share, ahead of closest competitors HONDA Motor and TATA Motor.
Recently new challenges have come up: November in , Honda Motors has
set up a 100% owned subsidiary, which produces 4 wheeler, and
represents a direct competitive threat. New entrants have entered the
market, offering cheap motorcycles from China. The market is showing
signs of maturing, with a reduction in business growth.
Situational Analysis
Customer
The Company's success has been driven by customer centric policies and
teamwork to achieve progress and productivity. The philosophy of SIGMA
MOTOR COMPANY emphasizes the "Pursuit of Excellence" in designing
and manufacturing technologically and qualitatively superior products and
in creating economic value for its stakeholders. It takes care of its
customers through value based competitive pricing and good after sales
service.
Competitors
Even the drop in market share in the past year or so has not prompted
SIGMA MOTOR COMPANY to turn aggressive on model introductions.
Except for Ambition, there has been no major product launch since
RELION Accent November in 2001. This could probably be explained by
the huge dependence on SIGMA Motor Company for technological support.
Returns- It provides, or sells, the most important reason people buy from
you?
Price
List price- The list price of the LUXURY CAR is Rs3000. It is less
expensive, or more expensive than the competitors? Some people will not
buy the cheapest, assuming that cheap means inferior.
Payment period- Its payment period varies from 1-3 years depending
upon the liking of the customer.
Promotion
Advertising- Advertising is done by using various methods like media
advertising, news paper advertising, magazines, etc.
Place
Locations- REILON provides a service, or product, that people have to
have now - or at short notice. Show rooms of REILON are situated at main
locations of the cities.
Inventory- REILON has a level of stock which means they can have it
whenever they want it.
Coverage- REILON covers all local area very effectively. This is the most
important factor, and then takes action; make sure they can reach us on
time.
Channels
● Manufacturer to consumer (most direct)
1. Economic environment.
2. Technological environment.
In the short run, the marketing manager doesn’t control the variables of the
marketing environment. That’s why it’s sometimes useful to think of them
as uncontrollable variables. On the other hand, the marketing manager can
and should carefully consider the environmental variables when making
decisions that can be controlled. For example, a manager may not be able
to do anything to offset the strengths of a specific competitor, but the
manager can select strategies that lead the firm into product-markets
where that firm does not compete, or where competition in general is not as
strong. We’ll see how they shape opportunities limiting some possibilities
and making others more attractive. A company must decide where it’s
going, or it may fall into the trap expressed so well by the quotation:
“Having lost sight of our objective, we redoubled our efforts.” Company
objectives should shape the direction and operation of the whole business.
It is difficult to set objectives that really guide the present and future
development of a company. The marketing manager should be heard when
the company is setting objectives. But setting whole-company objectives
within resource limits is ultimately the responsibility of top management. In
this sense, whole-company objectives are usually outside the marketing
manager’s “control.”It would be convenient if a company could set one
objective such as making a profit and let that serve as the guide. Actually,
however, setting objectives is much more complicated, which helps explain
why it’s often done poorly or not done at all. The following three objectives
provide a useful starting point for setting a firm’s objectives. They should be
sought together because in the long run a failure in even one of the three
areas can lead to total failure of the business. A business should:-
The first objective says that the company should do something useful for
society. This isn’t just a “do-gooder” objective. Businesses can’t exist
without the approval of consumers. If a firm’s activities appear to be
contrary to the consumer “good.
MARKETING STRATERGY
Let me first define "Marketing". Majority of people understand "marketing"
as "the activity done for PUSHING the product down the customer gullet."
Such a definition would mainly include the Sales and Advertisement
strategies and in trying to create a hype in the market about the product.
Let me give you an example to explain:- Imagine you are sent to Zambia
to manage the production and sales of a LUXURY CAR business. What are
the problems that you could possibly face there..?? Being an Indian you
would first face language problem. The market characteristics of that
country would be totally alien to you. Imagine how difficult it would be to
interact with the workers and distributors. So what do you do..?? Simple,
hire some local management talent. Let them run the business while you
give the orders. Well, the only problem is that if your orders are wrong then
everything below you is bound to go wrong.
It would take some time for them to understand Indians and the vast Indian
market. And while planning LUXURY CAR, they obviously did not
understand the Indian market. This document marks a major milestone in
the development of a Strategic Marketing Plan for the LUXURY CAR office
productivity.
The Plan looks at the current market for office productivity suites, at the
major players in the field, and seeks to identify trends which will influence
the market over the next five years. It looks at LUXURY CAR organization's
place within the market now, and where it should aim to be by 2010.
The analysis looks at the strengths and weaknesses of the LUXURY CAR
suite and of the Community, and how these should help influence the
Community's response to opportunities and threats in the marketplace.
It also looks in detail at the features of LUXURY CAR and the benefits
these deliver to customers. From this analysis, the Plan identifies a number
of target markets whose needs are most closely matched by the benefits
provided by “REILON”.
Finally, the Plan sets targets for penetration by LUXURY CAR into these
target markets, and lists the main strategies which the Marketing Project
will use to achieve these goals.
PUBLIC RELATIONS:-
● International comparison
Policy Measures
The list of concrete policy measures will be worked out after this skeleton
draft is agreed and drafting of chapters has begun. This is because
directions of output, sales and exports are determined basically by market
forces and no special policy measures are needed As for positive
upgrading of industrial strength and necessary conditions for sound growth
(solving urbanization, accidents, environment, and industrial- property
violation), concrete measures are needed. Since most measures cover
responsibilities of many ministries and agencies, they must be discussed
among releLuxury Cart organizations. How to draft such inter-ministerial
and inter-issue measures in this master plan remains to be decided.
POSITIONING
The author is an experienced brand consultant, who has many years’
experience in brand planning, marketing strategies and integration of
communication planning and implementation.
Different “positioning”
Positioning is to express the process. Any country, company, organization,
individual, product and service could use this method to “occupy” a position
in the minds of consumers.
The principle of positioning created a new era. With this concept widely
known and accepted by the people, marketing experts also tried to connect
this principle with the existing marketing theory systems. Thus we have the
classic "S-T-P" steps, S stands for segmentation; T stands for targeting and
P stands for positioning which is something that occupies a certain place in
the minds of the consumers with its unique design in supplies. Please note
that "positioning" here has surpassed its original meaning, it is not just a
means of communication, but also holds meaning of “unique design in
supply." In other words, the meaning of "positioning" is how to design the
products, how to price them and what special services should be provided.
Obviously, providing uniqueness in supply has actually become the key
work of marketing! Therefore, "positioning" changed from a means of
communication to the core point of marketing. Marketing experts have
completely accepted the term "positioning", admitted the positive influence
of\adding "positioning" to Marketing Theories and have since enriched its
meaning. Frankly speaking, from the perspective of marketing experts,
"positioning" is not just matter of "what we should say"; it has become
"what we should sell". When marketing experts promote the, "S-T-P"
method, “strategic positioning", starts to become the focus of discussion.
PRODUCT DEVELOPMENT
In planning of LUXURY CAR, I must need to five product level. Each level
adds more customer value, and the five constitutes a customer-value
hierarchy.
1. The fundamental level is the core benefit: the service or benefits the
customer is really buying.
2. At the second level, we must turn the core benefit into a basic
product.
5. At the fifth level stands the potential product, which encompasses all
the possible augmentations and transformations the product or
offering might undergo in future.
Instead of it, for new product development we need specific skills and
knowledge workers or employee. Some large companies often establish a
new- product development headed by a manager who has substantial
authority and access to top management. While I launch LUXURY CAR, I
will have to establish a new product department. During product
development process we have to pass through various stages. That is:-
1. Idea generation.
2. Idea screening.
3. Concept developments and testing.
4. Marketing strategy development.
5. Business analysis.
IDEA GENERATION: -
The new product development process starts with the search for ideas.
New product ideas can come from interacting with various groups and
using creativity-generation techniques. Employees throughout the company
can be a source of ideas for improving production, products and services.
Suppose I have searched my product LUXURY CAR now my next step will
to search that, Is my decision is wrong or right ?how can I develop it?
Technology is also important while developing a product. Good techniques
help to easily achieve our goals. Techniques should not be very costly. We
can know about our idea by interacting with others. We should take the
opinion of the people. Many firms are increasingly going outside the
company to tap external sources of new ideas. Customers needs and
wants are the logical place to start the search. This strategy has helped
create new products and companies.
IDEA SCREENING: -
In screening ideas, the company must avoid two types of errors. A DROP-
error occurs when the company dismisses a good idea. A GO- error occurs
when the company permits a poor idea to move into development and
commercialization. An absolute product failure loses money: it sales cover
all its variable costs and some of its fixed costs.
The second part outlines the planned price, distribution strategy, and
marketing budget for the next five years. The third part of the marketing
strategy plan describes the long-run sales and profit goals and marketing-
mix strategy over time.
BUSINESS ANALYSIS:-
After develops the product concept and strategies, we can evaluate the
proposal’s business attractiveness. We need to prepare sales, cost, and
profit projection to determine whether they satisfy company objectives. In
this stage we have to estimate total sales. Total estimated sales are the
sum of estimated first-time sales, replacement sales, and repeat sales.
Sales-estimation they depends on whether the LUXURY CAR is purchased
once, infrequently, or often. Then we have to estimated costs and profits
also. For example- we expects to sell Rs. 5 lack in the first year. Behind
this projection is a set of assumptions about the rate of market growth, our
market share and the realized price.
DEVELOPMENT TO COMMERCIALIZATION:-
The next step represents a jump in investment that dwarfs the costs
Incurred so far. We will determine whether the product idea can translate
into a technically and commercially feasible product. If not, the
accumulated project cost will be lost, except for any useful information
gained in the process.
BRANDING,LABELLING,AND PACKAGING
Packaging
Requirements of good packaging:-
● Be environmentally responsible.
● Be cost effective.
● Appropriately designed for target market.
Forms of Packaging:-
Branding
Brand
A brand is a name, term, design, symbol, or other feature that distinguishes
products and services from competitive offerings. A brand represents the
consumers' experience with an organization, product, or service.
Trademarks
Significance of a trademark:
CONSUMER BEHAVIOUR
Decision processes and acts of final household’s consumer associated with
evaluating consuming and discarding products for personal consumption.
The aim of marketing is to meet and satisfy target customers needs and
wants better than competitors. Marketers are looking for emerging trends
that suggest new marketing opportunities. Consumer Behaviour is the
study of how individuals, groups and organisations select, buy, use,
dispose of goods, services, ideas or experiences to satisfy their needs and
wants. Marketers must fully understand both theory and reality of consumer
behaviour. Consumer’s buying behaviour is influenced by cultural, social
and personal factors. Purchase of ‘RELION Luxury Car’ is also influenced
by certain factors given as below:-
PROBLEM RECOGNITION
The buying process of “RELION Luxury Car” starts when the buyer
recognizes a problem or need is identified by internal or external stimuli on
the basis of need or urgency person tries to fulfil its need. Moreover,
marketers need to identify the circumstances that trigger a particular need
by gathering information from a number of consumers. A consumer would
want a “RELION Luxury Car” as he or she might not be well.
INFORMATION SEARCH
Consumers often search for limited amounts of information. For 4 Wheeler
auto, consumers often look at automobile showroom.
INFORMATION SOURCES
Consumer can get information about 4 wheeler motor van from various
sources:-
2. Brand name
3. Colour
4. Model
5. Price
Luxury Car is used in almost each and every people goes anywhere.
Since different brands are available in the market consumer should know
which 4 wheeler auto will give him maximum satisfaction.
►HYUNDAI
►HONDA
►TATA MOTORS
CUSTOMER SEGMENTATION
DEMOGRAPHIC segmentation
• Age – CAR are mostly for driving, so there main target is youth age
people. Many new brands are introduced with special attractive
salient feature to attract young consumers SIGMA MOTOR
COMPANY. Launched different model and different colour to attract
more customers.
• Gender- Men and women have different model. They like different
model and colour, so the van are made accordingly
PSYCHOGRAPHIC SEGMENTATION
Psychographics is the science of using psychology and demographics to
better understand consumers. Buyers are divided into different groups on
the basis of personality traits like lifestyle and values.
EVALUATION OF ALTERNATIVES
Marketers provide several processes and the most current models that is
used by consumers in forming judgements is largely on a conscious and
rational basis. This is the critical stage in the process of buying. The
various steps that are involved in evaluation of alternatives are:--
FOR EXAMPLE:--
• Quality
• Long lasting
• Comfort
PURCHASE DECISION
Outcome of the evaluation develops likes and dislikes about alternative
products or brands in consumer .In this step, consumer has an intention to
buy the most preferred brand .Even if consumers form brand evaluations,
and two general factors can intervene between the purchase decision and
purchase intention.
(1.) The intensity of the other person’s negative attitude towards our
preferred alternatives
The consumer considers many factors before buying the LUXURY CAR.
Consumers may perceive many types of risks in buying and consuming a
product. The consumer will buy LUXURY CAR that satisfies his demand.
● Consumer communications
Satisfaction
After the sale the buyer will likely fill either satisfied or dissatisfied .if the
buyer believes that he believes that he received more in exchange then
what paid he might fill satisfied. If he believes that he received than what
was paid, then he might dissatisfied buyer are not likely to return as
customer and are not likely to send friends, relatives, and acquaintances.
They are also more likely to be unhappy or even abusive when the product
requires post – sale servicing, as when an Automobile needs warranty
maintenance.
CONCLUSION
To launch any new product like RELION Luxury Car in the market it is very
important to make marketing plan of that product. To know the current
position of the companies that is producing the same products and what
consumers demand from them. To maximize their profit and capturing more
market share proper analysis of each and every stage involved in
marketing plan is very important. If the company not making marketing plan
before launching any new product then there are maximum chances of
getting loss. A marketing plan may be part of an overall business plan.
Solid marketing strategy is the foundation of a well-written marketing plan.
While a marketing plan contains a list of actions, a marketing plan without a
sound strategic foundation is of little use. Behind the corporate objectives,
which in themselves offer the main context for the marketing plan, will lay
the 'corporate mission'; which in turn provides the context for these
corporate objectives. At the last we can conclude that marketing plan is
essential to made before launching any new product in the market.
REFERENCES
Kotler Philip, Marketing management, 2008, New Delhi:
Oxford University Press.
http://www.business.headlinesindia.com/industries/LUXURY
CAR.html
http://www.apfed.net/ki/database/doc/RISPO_GP142.pdf?
PHPSESSID=c5650c2e35044ad029035cfbdef5eeaf
http://www.marketresearch.com/product/display.asp?
productid=1558449&g=1
http://reports.manta.com/datamonitor/summary/0289-
7468_ITM