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Sinhgad technical education

societys
Sinhgad Business School
Report For Industry Analysis and Desk
Research (215)
On
Chocolate Industry
&
Automobile Industry
Submitted to
Sinhgad Business School, Erandwane, pune
In partial fulfilment of Industry Analysis and Desk
Research
Submitted by students:
Kunal supe
Nitin suryavanshi
Monica Batra
Kanchan Khandesi
Ketan Mandlik
Mangesh Pote
M. Arshad
M. Shoaib
Mohnish Dudhe
Mahesh Sonawane
STUDENT DECLARATION

We hereby declare that the project report entitled

AUTOMOBILE INDUSTRY
&
CHOCOLATE INDUSTRY
Submitted in partial fulfilment of the requirement for the
award of degree of

MASTERS IN BUSINESS
ADMINISTRATION

To university of pune, India , is my Ordinal work.

Place : Pune

Date :

Signature
EXAMINERS
CERTIFICATE
The project report of :

Kunal supe
Nitin suryavanshi
Monica Batra
Kanchan Khandesi
Ketan Mandlik
Mangesh Pote
M. Arshad
M. Shoaib
Mohnish Dudhe
Mahesh Sonawane

(Automobile industry
&
Chocolate industry)

Is approved and acceptable in quality and


form.

External Examinar
Internal Examiner
Signature
Signature
INDEX
(Chocolate Industry)
Sr. Page
No. no.
1 About chocolate industry
2 Chocolate industry history
3 Indian Market
4 Top 3 Players in Indian Market
5 Bottom 3 Players in Indian Market
6 Corporate social responsibility
7 Prospecting career in chocolate
industry
8
INDEX
(Automobile Industry)
Sr. Pag
No. e
no.
About chocolate industry:
1) Chocolates :
Chocolate invented 3,100 years ago by the Aztecs -
but they were trying to make beer. Scientists have
discovered that chocolate was invented at least
3,100 years ago in Central America.
Chocolate has become one of the most popular food
types and flavour's in the world.
Indias chocolate industry is valued at INR 58bn in
FY2014, and is expected to grow at a CAGR of 16% to
reach INR 122bn by 2019.
2) Chocolates Industry history :
The Indian chocolate industry has come a long way
since long years. Ever since 1947 the Cadbury is in
india, Cadbury chocolates have ruled the hearts of
Indian with their fabulous taste. Indian chocolate
industrys Cadbury company today employs nearly
2000 people across India.
The chocolate industry in India as it stands today is dominated by
two companies, both multinationals. The market leader is
Cadbury with a lion's share of 70 percent. The company's brands
(Five Star, Gems, Eclairs, Perk, Dairy Milk) are leaders their
segments. Till the early 90s, Cadbury had a market share of over 80
percent, but its party was spoiled when Nestle appeared on the
scene. The latter has introduced its international brands in the
country (Kit Kat, Lions), and now commands approximately 15
percent market share. The Gujarat Co-operative Milk Marketing
Federation (GCMMF) and Central Arecanut and Cocoa
Manufactures and Processors Co-operative (CAMPCO) are the
other companies operating in this segment. Competition in the
segment will get keener as overseas chocolate giants Hershey's and
Mars consolidate to grab a bite of the Indian chocolate pie.
Companies will have to keep themselves abreast with the
developments in other parts of the world. PRICING is the key for
companies to make their product reach consumers pockets. Right
pricing will make or break the product SUCCESS. Economical
distribution of the products will also be equally important.
Indian chocolate market

Market Share Indian Choclate Market

5%
25% Cadbury
Nestle
Others
70%

It is expected that Indian chocolate industry will be


growing at the CAGR 23% by volume between the
years 2008-2018 and reach 3,41,609 tons.
As per recent published report, indias chocolate market
is expected to reach $.2 billion by 2018 due to
increasing gifting culture in the country and increase in
the income bracket.
Top 3 players in Indian market
1. Cadbury India Ltd.
2. Nestle
3. Ferrero Rocher

Cadbury india ltd.

Cadbury, formerly Cadbury's, is a British multinational confectionery company


wholly owned by Mondelez International (originally Kraft Foods) since 2010. It is the
second-largest confectionery brand in the world after Wrigley's. Cadbury is
internationally headquartered in Uxbridge, west London, and operates in more than
fifty countries worldwide. It is famous for its Dairy Milk chocolate, the Creme
Egg and Roses selection box, and many other confectionery products. One of the
best-known British brands, in 2013 The Daily Telegraph named Cadbury among
Britain's most successful exports.

In 1948, Cadbury India began its operations in India by importing chocolates. On 19


July 1948, Cadbury was incorporated in India. It now has manufacturing facilities
in Thane, Induri (Pune) and Malanpur (Gwalior), Hyderabad, Bangalore and Baddi
(Himachal Pradesh) and sales offices in New Delhi, Mumbai, Kolkata and Chennai.
The corporate head office is in Mumbai. The head office is presently situated
at Pedder Road, Mumbai, under the name of "Cadbury House". This monumental
structure at Pedder Road has been a landmark for the citizens of Mumbai since its
creation. Since 1965 Cadbury has also pioneered the development of cocoa
cultivation in India. For over two decades, Cadbury has worked with the Kerala
Agricultural University to undertake cocoa research

Cadbury

Founded 19 July 1948


Headquarters Mumbai, India

Key people Anand Kripalu, Managing Director[80]

Products Cadbury Dairy Milk, 5-star, Perk, Gems,


Eclairs, Oreo and Bournvita

Number of 2000
employees

Website www.cadbury.co.uk

Currently, Cadbury India operates in five categories Chocolate confectionery,


Beverages, Biscuits, Gum and Candy. Some of the key brands are Cadbury Dairy
Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, clairs,
Bubbaloo, Tang and Oreo. Its products include Cadbury Dairy Milk, Dairy Milk
Silk, Bournville, 5-Star, Temptations,Perk, Gems (a version
of M&M's), Eclairs, Bournvita, Celebrations, Bilkul Cadbury Dairy Milk Shots,
Toblerone, Halls, Tang and Oreo.

It is the market leader in the chocolate confectionery business with a market share of
over 70%.

On 21 April 2014, Cadbury India changed its name to Mondelez India Foods Limited.

Products in the Marketing mix of Cadbury Cadbury has a power house


lineup of products. In fact, several of our readers will be surprised when they
read the different varieties and markets where Cadbury is present. A company
might have 1 or 2 cash cows, but Cadbury has several with the lions share of
the market. Some in the chocolate business are Dairy milk, Bournville, Five
star, Perk, Cadbury eclairs. In the biscuits segment is the premium Oreo. In
beverages there is bournvita which again is one of the leaders in milk
addittives. Halls as a mouth freshener as well as a remedy during cold is used
across India. Thus, with such a strong line of products, cadbury is bound to
lead the chocolates industry. Due to its products, Cadbury is the leading name
of chocolates across the world and has presence in all 7 continents. A list of
cadbury products can be found here
Price in the Marketing mix of Cadbury With quality comes price. As the
quality of the products is high, and the beverages and Oreo requires constant
marketing to be on top, the price of Cadbury products is also high in some
cases, whereas in others it is very much reasonable. Products like perk, five
star and eclairs give the taste of Cadbury even at lower price. Dairy milk is
considered to be a premium brand of chocolates due to this positioning, but
because of lower priced chocolates, it is also accepted across various target
segments. Cadbury has many varieties of products in the chocolate segment
and the pricing of each chocolate is different based on the type of customer
who is going to buy it. However, in all these, the Dairy milk brand is the clear
winner. Priced in high as well as low variants, the cadbury dairy milk has a
position of gifting and hence is selling high volumes even at higher prices. The
cadbury celebrations pack in fact, sells in millions on any festival or on
celebrations.

Place or Distribution in the Marketing mix of Cadbury The distribution of


Cadbury is fantastic and widespread. It is present strongly in all urban areas
as well as A,B and C category towns. The rural marketing of Cadbury is
known to be weak but that is because demand there is also weak. Cadbury
follows the same mantra of FMCG marketing which is breaking the bulk. The
cadbury chocolate is manufactured in Bournville, England. Recently there was
an advertisement which promoted that Cadbury buys only the best cocoa
beans from Ghana for its chocolates. These chocolates are then distributed
across the world. Cadbury is present in 200 or more countries. Once the
chocolate reaches in bulk, it is broken down as follows.

Company >> C&F agent >> Distributors >> Retailers >> Consumers

As you can see, due to the channel, the distribution costs of Cadbury are high.
But based on the demand in the market, the costs were going to be high
anyways. That is something which has to be taken into consideration during
the distribution of products. In the end, Cadbury has a very srtong presence in
the market, and you can be rest assured, that if you want to have a cadbury, it
will be within 2 minutes reach from you in any of the local retail shops.
Promotions in the Marketing mix of Cadbury Indians love sweets. From
Bengalis to Punjabis to South Indians, each of us want sweets. Youngsters
love sweet, and old people want a nibble from time to time. Thus it is no
surprise, that a smart marketer like Cadbury has a tag line Kuch meetha ho
jaye which means that lets have something sweet. It is no surprise that
people always have some cadburys stocked at home. Or they gift a Cadbury
dairy milk or celebrations to their loved ones.

The promotions of Cadbury for each of its products is different. For Bournville,
Cadbury has kept the position that you dont buy a bournville, you earn it. So
basically, it is not on the consumer to buy the bournville, Someone has to gift
him the same. For Cadbury celebrations, the positioning is of gifting. Cadbury
celebrations has a major commercial customer base, where the chocolate is
brought in bulk and given to employees, clients or vendors. Eclairs has a low
cost position, Bournvita has a strong health positioning, Perk has a youngster
position, so on and so forth. Cadbury uses a combination of ATL as well as
BTL marketing. The BTL marketing of Cadbury is very strong with its
hoardings, and standies as well as flex banners on shops, corners, hotels etc.
Thus, due to these activities, the brand recall is very high and people will
always remember a Cadbury whenever they are buying a chocolate.

Overall, there are many many positives which make Cadbury the great
company that it is. We hope that Cadbury keeps manufacturing such great
products. So what do you say? Kuch meetha ho jaye
2.Nestle

Swiss transnational food and drink company headquartered in Vevey, Vaud,


Switzerland. It has been the largest food company in the world, measured by
revenues and other metrics, for 2014, 2015, and 2016. It ranked No. 72 on the
Fortune Global 500 in 2014 and No. 33 on the 2016 edition of the Forbes Global
2000 list of largest public companies.

Swiss transnational food and drink company


Founded in 1866( 151 years ago)
Founders Henri Nestle
Headquarter vevey,Switzerland
Number of employees 335000
Revenue $ 89.46 billion

NESTL India is a subsidiary of NESTL S.A. of Switzerland. With eight


factories and a large number of co-packers, Nestl India is a vibrant Company
that provides consumers in India with products of global standards and is
committed to long-term sustainable and shareholder satisfaction.
The Company insists on honesty, integrity and fairness in all aspects of its
business and expects the same in its relationships. This has earned it the
trust and respect of every strata of society that it comes in contact with and is
acknowledged amongst India's 'Most Respected Companies' and amongst the
'Top Wealth Creators of India'.

Nestl India Head Office, Gurgaon, Haryana

Marketing Strategies :
BCG Matrix : FMCG goods

Pricing strategies :

competitive pricing

You will find that nestle will be similar priced to many of


Cadburys Products in the chocolate segment.

Distribution strategies:

Manufacturing >> C & F agent >> Distributors >>


Retailers >> Consumers

Promotional strategies:

Nestle focuses on its strength which is Maggi,


Nescafe and Kitkat which are the most promoted brands
in the market on ground level.
3.Ferrero Rocher
The Ferrero Rocher was introduced in 1982 in Europe. Shortly after release
production was halted due to a problem with label printing Michele Ferrero, the
credited inventor, named the chocolate after a grotto in the Roman Catholic shrine
of Lourdes. Rocher comes from the French and means rock or boulder; the main
grotto at the Lourdes shrine is in the rock of Massabielle.

Ferrero Rocher

Type Chocolate

Place of origin Italy

Created by Ferrero SpA

Main Milk chocolate, hazelnut, sugar, palm


ingredients
oil, wheat flour
Food energy
76.6 kcal (321 kJ)
(per serving)

Marketing Mix:

Product

Ferrero Rocher is a praline-filled hazelnut and chocolate shell, wrapped in


golden foil packaging that has instant consumer recognition. Today the
product comes in number of specifically targeted pack formats, including a
seasonal cube and Christmas tree shaped box, an Easter egg format and
various sizes to meet consumer needs all around the year. A new diamond
format in also introduced to further enhance the premium value of the brand.

Price

Ferrero Rocher is available in packs of containing numbers ranging of 3 to 24.


The prices of the pack of Ferrero Rocher is Rs.75 to 900. As these chocolates
are highly priced they are not affordable to the common man.

Promotion
Ferrero Rocher is responsible for one of the all time classics
commercials-Ambassadors Reception. The famous ambassador advert
made its return to the screen in 2003, but this time with a humorous and
contemporary twist, as the ambassador was female. In 2004 the creative
moved on further with Share the Magic with the aim to expand the role of
Ferrero Rocher beyond that of just a formal gift to one that is also relevant to
broader social occasions, while maintaining all of the aspiration and glamour
synonymous to the brand. The objectives of the updated execution were to
drive modernity and relevance in a salient way and engage a younger
consumer target. This was achieved with results showing ad was highly
successful, with penetration of the brand increasing by two percent.

As one of the top advertising spenders in the chocolate confectionery market.

Place

Ferrero Rocher is not an easily available chocolates. It is available in big


stores, supermarkets, malls. It is done by distributors of Ferrero Rocher.
Ferrero Rocher does not have any office in India but is planning to enter in
India
Bottom 3 players in chocolate industry
1. Amul
2. Mars
3. Camp co

1. Amul

Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.

Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-


operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by
3.6 million milk producers in Gujarat.

The white revolution was spearheaded by Tribhuvandas Patel under the guidance of
Sardar Patel. As a result, Kaira District Milk Union Limited was born in 1946.
Tribhuvandas became the founding chairman of the organization which he led till his
last day of his life. He hired Dr. Kurien three years after the white revolution. He
convinced Dr.Kurien to stay and help with the mission rest was history in the dairying
industry.

Amul spurred India's White Revolution, which made the country the world's largest
producer of milk and milk products.In the process Amul became the largest food
brand in India and has ventured into markets overseas.
Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973
2006), is credited with the success of Amul

Amul

Type Cooperative

Industry Dairy/FMCG

Founded 1946

Headquarters Anand, India

Key people Tribhuvandas Patel, Chairman, Gujarat


Co-operative Milk Marketing Federation
Ltd. (GCMMF)

Products See complete products listing

Revenue US$3.4 billion (201415)

Number of 750 employees of Marketing Arm & 3.6


employees million milk producer members[1]

Parent GCMMF [1]

Website www.amul.com
2.Mars

Mars is an American global manufacturer of confectionery, pet food, and other


food products, and a provider of animal care services, with US$33 billion in annual
sales in 2015, and is ranked as the 6th largest privately held company in the
United States by Forbes. Headquartered in McLean, unincorporated Fairfax
County, Virginia, US, the company is entirely owned by the Mars family. Mars
operates in six business segments around the world: Chocolate (Hackettstown,
New Jersey), Petcare (Brussels, Belgium, Poncitln and Jalisco, Mexico), Wm.
Wrigley Jr. Company (Chicago, Illinois), Food (Rancho Dominguez, California),
Drinks (West Chester, Pennsylvania), and Symbioscience (Germantown,
Maryland), the company's life sciences division.

Mars, Incorporated

Type Private

Industry Food processing

Founded 1911; 106 years ago


Tacoma, Washington, U.S.

Founder Franklin Clarence Mars


Headquarters 6885 Elm Street
McLean, Virginia, U.S.

Area served Worldwide

Key people Victoria B. Mars


(Chairman)
Grant F. Reid
(President and CEO)

Products Confectionery: Chocolate bars; gum; candy; mints; beverages; foodstuffs; pet
food
Major brands in alphabetical order include: 3 Musketeers 5 Big
Red Bounty Doublemint Dove/Galaxy Eclipse Extra Freedent Hubba
Bubba Juicy Fruit Life Savers M&M's Mars Milky
Way Orbit Pedigree Skittles Snickers Starburst Spearmint Twix Uncle
Ben's Rice Whiskas Winterfresh food animal products

Services Animal care

Revenue US$33 billion (2014)[1]

Owner Mars family

Number of 75,000+ (2014)[1]


employees

Subsidiaries Wrigley Company

Website www.mars.com
3.Camp co

The Campco Ltd., is a success story of the people, by the people


and for the people. It is a fruit of successful implementation of the
vision and values of the all foundersand the farmers of this region.
In early 1970's, a glut in the market caused the price of arecanut
fall down sharply and consequently the growers were put into
misery and hardship. The solution for this crisis was found in the
form of 'CAMPCO', CAMPCO as a saviour of growers, was formed
on 11th July 1973 a multi state co-operative - a joint venture of
the states of Karnataka and Kerala. CAMPCO has developed a
brand which people trust through their own experiences.

The Central Arecanut and Cocoa Marketing and Processing Co-operative


Limited or CAMPCO was found on 11 July 1973 at Mangalore. The organisation
working on principles of co-operative was found to mitigate the sufferings
of arecanut and cocoa growers in Indian states of Karnataka and Kerala. CAMPCO
has now extended its services to other states of India like Gujarat,Maharashtra,Utter
Pradesh,Madhya Pradesh,New Delhi,Bihar,Tamilnadu,Odisha,Assam and Goa also.
The CAMPCO has now become multi state co-operative under relevant Indian laws.
The organisation is mainly into procurement, marketing, selling and processing of
arecanut and cocoa.The company has now entered in Rubber and Black pepper
market. The company also provides guidance for farmers for growing arecanut and
cocoa.

The company set up a chocolate manufacturing plant in 1986 at Puttur of Dakshina


Kannada district of Karnataka. The plant produces chocolates and other products of
cocoa both under its own brand and also for Nestle.[1] In 2016 total production was
18,000 tonnes per annum, with a planned expansion to increase the output to 23,000
tonnes.[2] A similar expansion had also been planned in 2011

Regulatory trade bodies:


Food safety and standard Authority of
India

Food Safety and Standards Authority of India (FSSAI) is an autonomous body


established under the Ministry of Health & Family Welfare, Government of
India. ...FSSAI is responsible for protecting and promoting public health through
the regulation and supervision of food safety.

Prospecting career in chocolate Industries


Chocolate industries has opened up a gamut of
opportunities across the spectrum of skills. The
career paths have evolved around three areas:
Creative i.e. product look & feel, customer
experience, marketing, branding etc.
Operations i.e. category management, supply
chain, logistics, warehouse & inventory etc.
Auxiliary areas i.e. finance, payments, legal, HR
etc.

Corporate Social Responsibility :

Cadbury india
Project Shubh Aarambh was launched in November 2014 as Mondelez India Foods
Pvt. Ltds umbrella CSR and community programme in the country. Shubh Aarambh
means an auspicious beginning and as the name suggests it is a new beginning for
change as the program focusses on the integrated development of children to foster
nutrition/health education, promote education and address social issues impacting
young people, gender equality and support young people to become better citizens.
Shubh Aarambh is activated around the companys manufacturing sites operations in
Tamil Nadu and Kerala. The programme is expected to impact close to 200,000
beneficiaries across 7 states over the next few years.

Shubh Aaramb has a multi-pronged approach and our focus is on three key areas:
health and nutrition as part of the childs holistic development, encouraging healthy
life and encouraging kitchen gardens. Keeping the childs need at the centre of our
activity, we will work with parents, educators and community health workers to
provide health and nutrition support in the early years; education, sports/physical and
social development in later years and equip young people to make them more
employable. We also have programmes in certain areas to support skills and
livelihoods and water conservation and greening.

Disaster rehabilitation has always been part of our agenda and we continue to
support this.Volunteering is a very important aspect of our program and we are
ensuring our colleagues are given regular/relevant opportunities to participate in
various initiativesproviding their time, commitment and support to engage with the
communities.

Shubh Aarambhs NGO Partners - Shubh Aarambh aims to create a long


term grassroots sustainable model which will build communities of healthy, educated
and productive young people. We are working towards this vision in partnership with
three large NGOs like Save the Children, Magic Bus and AFPRO.
Each of Shubh Aarambhs partners focuses on a critical approach towards our
vision, with Save the children being nutritional experts, Magic
Bus emphasizing on sports for development and AFPRO specializing in
environmental wellness

Nestle
Corporate Social Responsibility (CSR) Policy Nestl India Limited
(the Company) is a leading Nutrition, Health and Wellness
Company. As a responsible Company, it has since its inception,
participated in business activities which help in improving the
quality of life for the communities where it operates. This also
includes creating better livelihood opportunities. In consultation
with stakeholders, the Company has decided to focus its
activities on the following areas, where it is in a position to
create maximum value.

These focus areas are: Nutrition: A large part of our


population is impacted by the double burden of malnutrition.
Improving nutrition awareness of communities is a focus area.
Water and Sanitation: India is among the worlds most water
stressed regions. Additionally, safe drinking water is a concern
in many parts of the country. The Company would focus on
helping farmers reduce water usage in agriculture, raising
awareness on water conservation and providing access to water
and sanitation.

Rural Development: Supporting the sustainable development


of farmers will be the third focus area.

Livelihood: Unemployment is a major issue impacting


development and health outcomes. The Company would focus
on livelihood enhancement through trainings.

Education: The Company would focus on supporting


education, with a special focus on education for the girl child.
The Company will continue to engage with stakeholders

Ferro rocher
Financial support was provided to a day care center in Mumbai run by the French
NGO Un Toit Bombay in 2010. The objective of the project was to provide
educational assistance to about 60 deprived young girls of the Malad East slum,
hosting them after school until their parents come back home.
The support provided by FSE-India could support about 30 children for one year.

Financial support was provided to a Shelter in Wadala West, Mumbai which hosted
about 75 vulnerable rootless and roofless street young boys, between 5 and 18
years. The Shelter Center offered a variety of services (educational and skill training
activities; drug de-addiction and rehabilitation programs; HIV/AIDS awareness and
prevention programs, etc.) aimed at empowering the street children and assisting
them in integrating into society.
References:
Wikipedia and slide share presentation
www.marketing 91.com
www.google.com
business.mapofindia.com

About Automobile Industry:


1) Automobile Industry:

The automotive industry is a wide range of companies and


organizations involved in the design, development, manufacturing, marketing, and
selling of motor vehicles, some of them are called automakers. It is one of the
world's most important economic sectors by revenue.

The automotive industry is a wide range of companies and


organizations involved in the design, development, manufacturing, marketing,
and selling of motor vehicles, some of them are called automakers. It is one of the
world's most important economic sectors by revenue. The automotive industry does
not include industries dedicated to the maintenance of automobiles following delivery
to the end-user, such as automobile repair shops and motor fuel filling stations.
The automotive industry in India is one of the largest in the world with
an annual production of 23.96 million vehicles in FY (fiscal year) 201516, following
a growth of 2.57 per cent over the last year. The automobile industry accounts for 7.1
per cent of the country's gross domestic product (GDP). The Two Wheelers
segment, with 81 per cent market share, is the leader of the Indian Automobile
market, owing to a growing middle class and a young population. Moreover, the
growing interest of companies in exploring the rural markets further aided the growth
of the sector. The overall Passenger Vehicle (PV) segment has 13 per cent market
share.

India is also a prominent auto exporter and has strong export growth
expectations for the near future. In FY 201415, automobile exports grew by 15 per
cent over the last year. In addition, several initiatives by the Government of India and
the major automobile players in the Indian market are expected to make India a
leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by
2020.

2) Automobile industry history:


An embryonic automotive industry emerged in India in the 1940s. Hindustan
Motors was launched in 1942, long-time competitor Premier in 1944,
building Chrysler, Dodge, and Fiat products respectively. Mahindra &
Mahindra was established by two brothers in 1945, and began assembly
of Jeep CJ-3A utility vehicles. Following independence in 1947, the
Government of India and the private sector launched efforts to create an
automotive-component manufacturing industry to supply to the automobile
industry. In 1953, an import substitution programme was launched, and the
import of fully built-up cars began to be restricted .
The Hindustan Ambassador dominated India's automotive market from
the 1960s until the mid-1980s and was manufactured till 2014.

A pre-Independence car showroom in Secunderabad

Indian market of automobile industry


Indias automotive industry is one of the most competitive in the world. It does not
cover 100 per cent of technology or components required to make a car but it is
giving a good 97 per cent, as highlighted by Mr Vicent Cobee, Corporate Vice-
President, Nissan Motors Datsun.

The Indian automotive aftermarket is estimated to grow at around 10-15 per cent
to reach US$ 16.5 billion by 2021 from around US$ 7 billion in 2016. It has the
potential to generate up to US$ 300 billion in annual revenue by 2026, create 65
million additional jobs and contribute over 12 per cent to Indias Gross Domestic
Product.
Market Size :
The Indian auto industry is one of the largest in the world.
The industry accounts for 7.1 per cent of the country's Gross Domestic Product
(GDP). The Two Wheelers segment with 81 per cent market share is the leader
of the Indian Automobile market owing to a growing middle class and a young
population.

Investment :
The automobile industry is one of Indias major sectors, accounting for 22% of the
countrys manufacturing GDP. The Indian auto industry, comprising passenger
cars, two-wheelers, three-wheelers and commercial vehicles, is the seventh-
largest in the world with an annual production of 17.5 million vehicles, of which
2.3 million are exported. Two-wheelers dominate the Indian market; more than
75% of the vehicles sold are two wheelers.

Government Initiatives:
The Government of India encourages foreign investment in the automobile sector
and allows 100 per cent FDI under the automatic route.
Some of the major initiatives taken by the Government of India are:

The Government of India aims to make automobile manufacturing the main


driver of "Make in India" initiative, as it expects the passenger vehicles market to
triple to 9.4 million units by 2026, as highlighted in the Auto Mission Plan (AMP)
2016-26.
In the Union budget of 2015-16, the Government has announced plans to
provide credit of Rs 850,000 crore (US$127.5 billion) to farmers, which is
expected to boost sales in the tractors segment.

The government plans to promote eco-friendly cars in the countryi.e. CNG-


based vehicles, hybrid vehicles, and electric vehiclesand also to make
mandatory 5 per cent ethanol blending in petrol.

The government has formulated a Scheme for Faster Adoption and


Manufacturing of Electric and Hybrid Vehicles in India, under the National Electric
Mobility Mission 2020, to encourage the progressive introduction of reliable,
affordable, and efficient electric and hybrid vehicles into the country.

The Automobile Mission Plan (AMP) for the period 20062016, designed by
the government is aimed at accelerating and sustaining growth in this sector.
Also, the well-established Regulatory Framework under the Ministry of Shipping,
Road Transport and Highways, plays a part in providing a boost to this sector

Isuzu's newly inaugurated manufacturing plant in 2016 at Sri


City, Andhra Pradesh, India.

Top 3 players in Indian market :


1) Maruti Suzuki
2) Tata Motors
3) Hyundai

Maruti Suzuki:
Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an
automobile manufacturer in India.It is a 54.2%-owned subsidiary of Japanese
automobile and motorcycle manufacturer Suzuki Motor Corporation. As of January
2017, it had a market share of 51% of the Indian passenger car market, Maruti
Suzuki manufactures and sells popular cars such as
the Ciaz, Ertiga, Alto, Swift, Celerio, Swift Dzire and Omni. The company is
headquartered at New Delhi. In February 2012, the company sold its ten millionth
(ten million = one crore) vehicle in India.

Marketing Mix of Maruti Suzuki:


Product in the Marketing mix of Maruti Suzuki

Maruti Suzuki occupies 37% share in the Indian market of passenger cars. It
manufactures various types of cars and sells them in the market. Its various
cars are-

Alto

A-Star

Ritz

Swift

Celerio

WagonR

DZire

Zen

Sx4

Kizashi
Omni

Eeco

Ertiga

Grand Vitara

Place in the Marketing mix of Maruti Suzuki

In the earlier stages, the company Maruti imported all its cars. This caused
dissatisfaction in the minds of local manufacturers. In the year 1983 Maruti
800 was released in the Indian market and local production started henceforth
from the month of December in 1983. The plant in Gurgaon managed to
extend its capacity to forty thousand units. In 1987, Maruti exported its first
batch of nearly five hundred cars to Hungary. In the year, 1995 Maruti opened
its second manufacturing plant with a capacity of manufacturing 200,000 units
per year.

Price in the Marketing mix of Maruti Suzuki

We can call the pricing strategy of Maruti as both penetrative and competitive.
Maruti Suzuki has a pricing policy that is based on many factors. It makes a
proper evaluation of the market by studying the most important fact that how
much is a customer able to pay for a car and what are his needs. The
research team of the company makes an analysis of the current market
trends, the competition, the cost of raw materials, the economic factors
governing the market, the distribution charges, cost of advertisement, the
dealers profit and the profit of the company.

Promotions in the Marketing mix of Maruti Suzuki

One of the first things which Maruti does to promote its product is to use all
types of media when launching a new product or a new variant.
The brand and the service promise of the company does the rest. The brand
has been built over a period of decades and people now know that a Maruti
Suzuki product will be a reliable one. The most prominent way to advertise is
the ATL and mainly television, after which newspaper, outdoor and print takes
preference.
2. Tata Motors
Maruti Suzuki India Limited
Tata Motors
Limited (formerly TELCO, short
for Tata Engineering and
Locomotive Company) is an
Indian multination alautomotive man
ufacturing company
headquartered Type Public in Mumbai, India,
and a member of the Tata Group.
Its products include
passenger cars, Traded as BSE: 532500 trucks, vans,
coaches, buses, NSE: MARUTI sports cars,
construction equipment and
BSE SENSEX Constituent
military vehicles

Industry Automotive
Tata Motors has auto
manufacturing and assembly
plants Predecessor Maruti Udyog Limited
in Jamshedpur, P antnagar, Luckno
w, Sanand, Dhar wad, and Pune in
India, as well as Founded 1800 in Argentina,
South Africa, Great Britain and
Thailand. It has research and
development Headquarters New Delhi, India[1][2] centres in Pune,
Jamshedpur, Lucknow, and
Dharwad, India and in South
Key people R. C. Bhargava[3] (Chairman)
Korea, Great Britain and Spain.
Tata Motors' principal
Kenichi Ayukawa [3](Managing Director &
subsidiaries purchased the
English premium CEO) car maker Jaguar
Land Rover (the maker of Jaguar
and Land Rover Products Automobiles cars) and the
South Korean Production output 1,429,248 units (2016) [4] commercial
vehicle manufacturer Tata
Daewoo. Tata 58,612 crore (US$8.7 billion) (2016)[5] Motors has a bus-
Revenue
manufacturing joint venture
with Marcopolo Net income 4,630.90 crore (US$690 million) (2016) S.A. (Tata
Marcopolo), a [5]
construction-
equipment manufacturing
joint venture Number of 12,900 (2015)[6] with Hitachi (Tata
Hitachi employees Construction
Machinery), and a joint venture
with Fiat Parent Suzuki Motor Corporation (54.2%)[7] Chrysler which
manufactures automotive
components and Website www.marutisuzuki.com Fiat Chrysler and
Tata branded vehicles.
TATA Tiago, a compact hatchback, is the successor of TATA Indica

Founded in 1945 as a manufacturer of locomotives, the company manufactured its


first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which
ended in 1969. Tata Motors entered the passenger vehicle market in 1991 with the
launch of the Tata Sierra, becoming the first Indian manufacturer to achieve the
capability of developing a competitive indigenous automobile. [4] In 1998, Tata
launched the first fully indigenous Indian passenger car, the Indica, and in 2008
launched the Tata Nano, the world's cheapest car. Tata Motors acquired the South
Korean truck manufacturer Daewoo Commercial Vehicles Company in 2004 and
purchased Jaguar Land Rover from Ford in 2008.

The Tata Motors Group registered a growth of 5.0% in gross turnover


to Rs. 280,097 crores in Fiscal 2016 as compared to Rs. 266,708 crores in
Fiscal 2015.

Marketing Mix of tata motors :


1. Product in the marketing mix of Tata Motors Tata has a very wide range
of products it has passenger cars, utility vehicles, Trucks, Commercial
passenger Carriers And Defence Vehicles

Passenger cars UtilityVehicles Trucks Commercial Passenger

Carriers

Indica vista Safari Dicor Tata Novas Buses

Indigo XL Sumo Grande TL 44 Winger

Nano Sumo Magic


Fiat cars Xenon XT

2. Price in the marketing mix of Tata Motors The prices of Tata motors are
generally affordable acceptable by the general public at large. Tata always
have something for the lower class people with Nano being their trump card.
Giving discount every month and special promotion for certain type of vehicle
also one of the strong strategy use by Tata Motors. Discount can be made
from Companys profit or from dealers profit at certain range.

3. Place in the marketing mix of Tata Motors Tata Motors has an


extensive dealer network covering Indian and International markets. Wherever
you are, there is a Tata Motors Sales and Service dealership close to you. The
channel of distribution, physical location, and dealership method of distribution
and sales is generally adopted. The distribution of vehicle must be in a very
systematic way, from the plant to dealership and to end user. This is not only
in India itself but also to the world-wide dealership.

4. Promotion in the marketing mix of Tata Motors Tata motors promote


their products via Advetising and after sales services
Tata Motors Limited

Type Public

Traded as BSE: 500570 (BSE SENSEX Constituent)


NSE: TATAMOTORS
NYSE: TTM

Industry Automotive

Founded 1945

Headquarters Mumbai, India[1]

Area served Worldwide


Key people Natarajan Chandrasekaran (Chairman)
Chandrasekaran Ramakrishnan (President
and Group CFO)
Guenter Butschek (CEO)

Products Automobiles
Sport Cars
Commercial vehicles
Coaches
Buses
Construction equipment
Military vehicles
Automotive parts

Services Automotive design, engineering and


outsourcing services
Vehicle leasing
Vehicle service

Revenue 2.697 trillion (US$40 billion) (2016)[2]

Operating income 216.5 billion (US$3.2 billion) (2016)[2]

Profit 95.88 billion (US$1.4 billion) (2016)[2]

Total assets 2.619 trillion (US$39 billion) (2016)[2]

Total equity 763.5 billion (US$11 billion) (2016)[2]

Number of 60,000 (2016)[2]


employees

Parent Tata Group

Divisions Tata Motors Cars

Subsidiaries Jaguar Land Rover


Tata Daewoo
Tata Hispano
Website www.tatamotors.com

2. HYUNDAI MOTORS

Hyundai Motor India Ltd is a wholly owned subsidiary of the Hyundai Motor
Company in India. It is the second largest automobile manufacturer in India .

Hyundai Santro Xing/Atos Prime (Discontinued-2014)was made only by Hyundai Motor India Limited.
Hyundai Motor India Limited was formed on 6 May 1996 by the Hyundai Motor
Company of South Korea. When Hyundai Motor Company entered the Indian
Automobile Market in 1996 the Hyundai brand was almost unknown throughout
India. During the entry of Hyundai in 1996, there were only five major automobile
manufacturers in India,
i.e. Maruti, Hindustan, Premier, Tata and Mahindra. Daewoo had entered the Indian
automobile market with Cielo just three years back while Ford, Opel and Honda had
entered less than a year back.

For more than a decade till Hyundai arrived, Maruti Suzuki had a
near monopoly over the passenger cars segment because Tata
Motors and Mahindra & Mahindra were solely utility and commercial vehicle
manufacturers, while Hindustan and Premier both built outdated and uncompetitive
products.

Marketing Mix of Hyundai Motors

Place in the Marketing mix of Hyundai motors

Hyundai is fourth-largest manufacturer of vehicles in global market in 2016


and has largest manufacturing facility for integrated automobile in world. It is
located in Ulsan, in South Korea and has 1.6 million units of production
capacity on annual basis. Hyundai believes in its own qualitative products and
services and hence has opened various manufacturing plants in different
regions. Its European plant is located in Nosovice and has a capacity of
manufacturing 300,000 vehicles annually. Company has also opened R&D
facilities in places like Hyderabad which employs nearly 450 engineers to
provide engineering and technical support in development of vehicles.

Price in the Marketing mix of Hyundai motors

Hyundai is a global brand that has been tapping the emerging markets
successfully. Its pricing policies have helped it to maintain its position as one
of the best automakers in industry. In order to cater to different sections of
society it has manufactured numerous vehicles and kept varied pricing
policies for them. Some of its cars belong to competitive pricing category,
whereas others like luxury car Genesis belongs to premium pricing category.

In order to make its penetration policy successful it has managed to keep its
prices affordable for consumers. Hyundai has been known for supplying
value-based products and its prices have been set at a competitive rate when
compared to competitors. It can also be said to be value based pricing,
because as the value provided in each model changes, the price of the car
rises. It gives several trade benefits as well to its dealers to promote the
products from time to time.

Promotions in the Marketing mix of Hyundai motors

Hyundai recognises the potential of promotional activities and hence has


always gone for different and varied marketing strategies to create
positive brand awareness. In year 2012, company started a brand campaign
globally that emphasised on its Modern Premium thinking process.

Hyundai wanted each and every customer to relate his/her vehicle with
moments of happiness and good memories. Company has been associated
with different sports to create its brand visibility. It has entered motorsport in
year 1998 and 1999, competing in world Rally Championships. It has various
sponsorship deals in sports like FIFA, A-League, Korea Football Association,
Brisbane Lions and Hyundai Hockey Helpers.

In year 2015 Santa Fe became Pope-mobile officially for Pope Francis.


Hyundai has made various ads and commercials that are telecast on
television, radio, print media like magazines, newspapers, hoardings. It has
also started utilising online facilities for promoting its products as it realizes its
true potential. Superstar Shahrukh Khan has been associated with Hyundai as
its brand ambassador.

Product in the Marketing mix of Hyundai Motors

First model of Hyundai Motor Group was Cortina in year 1968 and it was co-
produced with Ford Motor Company. In year 1975, company launched its first
solo-effort car Pony and started its export to different countries like Ecuador
and later to Canada. In 1986, Hyundai launched its vehicles in United States
and its car Excel was declared one of the best ten products. Currently
Hyundais product folio includes engines, commercial vehicles and
automobiles and some of the most popular ones are as follows-

Sedans, sports car and hatchbacks like Aslan, Accent, Genesis, Eon,
Elantra, i20, I10, Marcia, Santa Fe, Xcent and Hyundai Sonata

Vans and SUVs include Tucson, Terracan, Santa Fe Sport and Porter 2

Commercial vehicles include Hyundai 1620 urban bus, Aero City,


Chorus, e-Mighty, HD160, Mega Truck, Mighty II, Super Truck and
Universe

Concept car include Vision G, Clix, Excel Electric-vehicle, Sonata


Electric-vehicle, TB Concept Car and i-oniq

Note that within the above product lines, there are various product depths and
product length as well. So an I20 will also have an I20 asta, I20 Magna and
other variants. The low value, medium value and high value variants are
present in most cars of Hyundai.

Hyundai Motor India Ltd

new thinking new possibilities

Type Subsidiary
Industry Automotive

Founded May 6, 1996

Headquarters Chennai, Tamil Nadu, India

Key people Mr. Y. K. Koo (CEO)

Products Automobiles

Parent Hyundai Motor Company

Website www.hyundai.co.in

Bottom players in Indian market :


1. Chevrolet
2. Nissan
3. Fiat

1.Chevrolet :
Chevrolet came to India in 2003. An office was set up in Bombay with an assembly
plant constructed in Sewree. General Motors was the first automobile company to
open an assembly plant in India. Vehicle Production started in 1928 with the National
Series AB Touring. In 1952-53 the socialist Indian Government forced General
Motors India to shut shop, along with other foreign car companies. However, in
2003 Chevrolet Sales India was established and the Chevrolet brand was re-
launched in India. It replaced Opel as the only brand offering by General Motors
India Private Limited.

Chevrolet

"Find New Roads"

Type Division

Industry Automotive

Founded 3 November 1911; 105 years ago

Founder Louis Chevrolet


William C. Durant

Headquarters Detroit, Michigan, U.S.

Area served Worldwide (except Oceania)


Key people Alan Batey, Senior Vice President[1]

Products Automobiles
Commercial Vehicles
Trucks

Services
Vehicle financing

Vehicle insurance

Vehicle repairs

Vehicle sales

Oil changes

Owner General Motors Company

Website chevrolet.com

3.Nissan
Nissan Motor India Pvt Ltd (NMIPL) is a wholly owned subsidiary of Nissan Motor
Co. Ltd Japan. The company was incorporated in 2005 and offers innovative and
exciting products across hatchback, MUV, SUV and sedan segments in India. Nissan
in India has a portfolio of two brands, Nissan and Datsun.

In February 2008, Nissan, together with its global alliance partner Renault signed a
MoU with Government of Tamil Nadu to set up a manufacturing plant at Oragadam,
near Chennai with an investment of INR 45 billion over a period of 7 years. On 17
March 2010, the Renault-Nissan alliance plant was inaugurated in a record time of
21 months since its ground breaking ceremony in June 2008.

Nissan Motor India Pvt Ltd

Innovation that excites

Type Subsidiary

Industry Automotive

Founded 2005

Headquarters Chennai, Tamil Nadu, India[1][2]

Key people Mr. Takeyuki Ishida


(MD), Mr. Sandip Neogi
(MD), Mr. Arun Malhotra
(MD)

Products Automobiles

Parent Nissan Motor Company of Japan

Website www.nissan.in
3.Fiat
FCA India Automobiles Private Limited (FCAIPL) formerly known as Fiat Group Automobiles
India Private Limited was formed in the year 2012 as a fully owned direct subsidiary of FCA Spa
Italy.

FCA India Automobiles Private Limited

Type Subsidiary

Industry Automotive

Founded 2 January 1997

Headquarters Pune, Maharashtra, India

Key people Sergio Marchionne, CEO

Products
Automobiles

Engines

Transmissions

Parent Fiat Chrysler Automobiles

Website www.fiat-india.co
Automobile regulatory authority of
india :
The automotive regulations in India are governed by the Ministry of Road Transport
and Highways (MoRT&H) which is the nodal ministry for regulation of the automotive
sector in India.

In India the Rules and Regulations related to driving license, registration of motor
vehicles, control of traffic, construction & maintenance of motor vehicles etc. are
governed by the Motor Vehicles Act, 1988 (MVA) and the Central Motor Vehicles
rules 1989 (CMVR).

Job opportunities:
The automotive industry is projected to reach a value of $5.1 trillion by 2015 and
employs millions worldwide in roles ranging from manufacturing to sales. To get a
closer look at how MBAs fit into the automotive industry, BusinessBecause
assembled a virtual panel of three MBAs with substantial experience in the industry.

Future scope :
For MBAs, there are lot of opportunities in sales and marketing, supply chain and finance
arenas. MBA graduates can work in sales teams to help companies increase market share;
marketing teams to help develop and implement branding strategy; supply chain teams to
help optimize the supply chain efficiency and control costs; or in finance to help augment
sales through sales aid financing, to raise capital for expansion and new projects and
support building investor relations and implementing mergers and acquisitions strategy.

Corporate communication Manager - Corporate communicators


research, write, plan, edit, design, and implement everything from strategic
communications plans, to employee newsletters.

Finance/Insurance Manager - More of a money person?Finance and


insurance department of a car dealership are a good opportunity.

Sales Associate/Manager - If you enjoy communicating with people,


becoming a Sales Associate or a Sales Manager may be the perfect career
for you.
Government policies :
The policies adopted by the Indian government for the growth and
development of the automobile sector, has led to a large number of foreign
investments. It has also given rise to an increased sales rate for two wheelers
and other automobiles. India is also becoming the ultimate outsourcing
destination for global automobile companies like Ford, Mitsubishi, Toyota,
Hyundai etc.

The Indian Automobile Industry plays a major role in the economic scenario of
the country. The automobile sector in India, record sales of more than one
million passenger cars per year. The percentage of automobile exports has
risen significantly during the last few years. The government policies on Indian
automobile industry have been framed in order to aid in the expansion of the
automobiles sector in India.

Corporate social responsibility


Maruti Suzuki
Leadership has its own responsibilities. We are
committed to making Indias roads safer. It's just
something that we feel is important for the nation,
that made us Indias favourite car company.
India has among the highest accident rates in the world. While the
infrastructural and societal reasons are abound, the principal cause of
concern are the poorly trained drivers and improper road etiquette. We
knew that if we wanted to make a difference, in a meaningful way, it
had to start with educating drivers. And so, we took them back to
school.
Under the aegis of the National Road Safety Mission, we started 2
institutes to impart driving training to new as well as existing drivers in
Maruti Suzuki cars.
Maruti Driving Schools (MDS)
Opened in association with our dealer network, MDS is where we
provide world-class driving training to those who want to drive with
confidence. Inculcating global best practices, learning at MDS includes
Classroom and Attitudinal Training. Advanced simulators create on-road
driving situations so that the learners get a first-hand feel of the road
before they actually drive. Special initiatives include lady instructors for
women learners. Today, there are over 376 schools setup nationwide,
and we have already helped more than 6.5 lakh drivers get more
confident and better.
Institute of Driving Training and Research (IDTR)
IDTR was set up with Government collaboration as a private-public
partnership. For the first time, driving was taught using scientifically-
designed test tracks and driving simulators. Films were created to
make learners aware of the behavioral aspects of driving, imparted
through classes that catered to both light and heavy vehicle drivers.
After the success of the first IDTR, many state governments came
forward with a proposal for an IDTR in their state. Today, IDTR-certified
commercial drivers are sought after and easily employable.
Through MDS and IDTR, we have already trained over 17 lakh drivers,
of which 1.55 lakh are from economically weaker sections. And this is
just the beginning.

Tata Motors
We focus on four areas: Health, Education, Employability and
Environment. Moreover, in line with the Group's Affirmative Action
framework, we work to help people from Scheduled Castes (SCs)
and Scheduled Tribes (STs) get access to better opportunities for
education and livelihoods.

For this, we have forged synergetic partnerships with community


members, civil society organisations and concerned government
departments to undertake large-scale projects, which have helped
create a positive impact on the lives of people.

Health: Tackling malnutrition

Our initiatives in Health focus on preventing and treating


malnutrition. We work with young children (up to six years old),
adolescent girls, pregnant women and lactating mothers on their
overall well-being, nutritional supplements and dietary
requirements. Health camps and awareness sessions are also held
for community members to drive preventive and curative
measures.
Access to safe drinking water is another concern that our
initiative, Amruthdhara, aims to address. Amruthdhara has made a
difference to 16,000 people while 178,200 have benefitted from
our health programme.

Education: Focus on secondary school students

Education is yet another important area for us. We aim to improve


the academic performance of secondary school students by
disbursing financial aid and conducting special coaching classes for
them. We also aspire to enhance their retention capabilities
through the use of interesting audio-visual media. Encouraging
students to participate in co-curricular activities ensures their
holistic growth. Our education programme has helped 51,000
students.

Hyundai Motors
HMIF was formed in the year 2006 with the purpose of 'giving back' to society and to
initiate Corporate Social Responsibility (CSR) activities in the areas of Community
Development, Health Care, Educational and Vocational Training, Environment, Road
Safety, Art, Science, Technology, etc.

Safe Move:

Hyundai Motor India Ltd, the country's leading premium car manufacturer and the
largest passenger car exporter launched its CSR initiative 'Safe Move-Traffic Safety
Campaign' in association with Ministry of Road Transport and Highways.

Happy Move:
Hyundai Motor India Ltd, the countrys second largest car manufacturer and the
largest passenger car exporter launched global CSR campaign- Happy Move in
India. Hyundai Motor India in association with Archaeological Survey of India (ASI)
will spread awareness on the Indian heritage monuments.

Hyundai Motor India has clocked its highest-ever financial year domestic sales of
484,324 units in the just-ended 2015-16. Growth is up 15.1% over FY2014-15 when
it had sold a total of 420,668 units. In March 2016, the carmaker registered domestic
sales of 41,201 units and exports of 10,251 units with cumulative sales
of 51,452 units.

References:

Wikipedia and slide share presentation


ASA & associates LLP review on automobile sector 2016
Slide share report on Maruti Suzuki and tata motors.
www.marketing91.com
www.google.com

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