Segmentation of

Indian Car Market

By Group I (Gauhati University, D.B.A.) MBA II Sem

Kumari Neelam (01) Mithusmita Kalita (13)

Himashree Dutta (14) Hemangi Patgiri (26)
Debapriya Saha (27) Priyanka Mahanta (33)
OBJECTIVES

• To study the growth factors of the company

• To study the different operators of the market
• The marketing mix of the product
• To study the suitable segment to launch the car.
• To revive and launch an old brand (Ambassador) as a
new product.
Introduction

• Emerging as one of the world’s fastest growing

passenger car markets.
• Constitutes around 80% automobiles sales.
• Rising per capita income and changing demographic
distribution are conducive for growth.
• Constitutes almost 70% of potential buyers.
• Very competitive with almost every global
manufacturer being present in the country.
CLASSIFICATION OF CAR SEGMENTS
(according to size)
I) MINI : Maruti –800,Tata NANO

II) COMPACT : Hyundai SANTRO / i-10 / GETZ

III) MID SIZE : Hyundai ACCENT , Maruti ESTEEM

IV) EXECUTIVE : Skoda OCTAVIA, Toyota COROLLA

V) PREMIUM & LUXURY : Mercedes BENZ C-Class, BMW 3 Series.

Key Players in the Indian Auto Industry
Market Share in the Current Scenario

According to
SIAM, the Society
of Indian
Automobile
Manufacturers of
India, the market
share of major
passenger vehicle
manufacturers
are:
Criteria for Market Segmentation
Contd.
Targeting
DEMOGRAPHIC :
• Income Group : > Rs 15,00,000 /-pa
• Age Group : > 30 yrs
• Older Married with / without children

GEOGRAPHIC :
• Metros & Tier I Cities

BEHAVIORAL :
• Primary Benefit : Quality
• Attitude towards product : Enthusiastic

PSYCHOGRAPHIC :
• Inclination towards COMFORT, STYLE, POWER
• Urban A1 & A2
• Westernized Lifestyle
• Ambitious Personality
Product

Service

People / Personnel

Channel

Image
Main focus on QUALITY & LUXURY

Highly CUSTOMIZED

Engine Variants (cc, bhp)

Engine Type (Petrol, Diesel, CNG)

Interiors & Finish

Colors & Exteriors

Accessories & Gadgets

Seating

Combination of COMFORT & STYLE

AT HOME SERVICE

•Home Pick-Up & Delivery After Service

•Service Stations in 15 cities (Metros & Tier I)

•Continued Customization

•Spare parts at a phone call !

Company Owned SHOWROOMS in 15 Targeted Cities.

PROMOTIONAL CALLS to the targeted customers.

DIAL FOR DETAILS ( Customer can call / email Ambassador

to send a salesperson for Details & Customization Demo)
Qualities to be inculcated in Personnel at all levels:

•Courtesy
•Reliability
•Responsiveness
•Communication
•Competence
•Credibility
Planned Differentiation by

• EXCLUSIVITY

• QUALITY

• LUXURY

• AUTHORITY

• AFFLUENCE
 PRESTIGE COMFORT
EXCLUSIVE
CUSTOMISATIO
N

AMBASSADOR
QUALITY CR

AFFLUENCE

LUXURY STYLE
AUTHORITY
1.Mercedes-Benz S-Class (81 Lacs)

2.Audi A-8 (73-87 Lacs)

3.BMW 6 & 7 Series (73-85 Lacs)

 PRICE – QUALITY
HIGH PRICE – LOW HIGH PRICE - HIGH
QUALITY QUALITY

MERCEDES BENZ
S-CLASS
AUDI A-8
BMW 6 & 7 SERIES
AMBASSADOR CR
LOW PRICE – LOW LOW PRICE - HIGH
QUALITY QUALITY
CUSTOMIZATION – PRICE
HIGH CUSTOMISATION – HIGH CUSTOMISATION –
LOW PRICE HIGH PRICE
MERCEDES BENZ
S-CLASS
AUDI A-8
BMW 6 & 7 SERIES
AMBASSADOR CR
LOW CUSTOMISATION – LOW CUSTOMISATION -
LOW PRICE HIGH PRICE
 Product Scope : Long-Term

 Product attributes :Sophisticated, Customized to customer use,

Stylish, High Price, Excellent after-sales service.

 Quality : High

 Uses : To make a statement / a status symbol, a comfortable,

luxurious mode of transportation.

 Users :Elite, Power Hungry, Status conscious segment

 Country of origin :India

 Product Variety –Customized Cars

 Quality –Superior performance and conformance quality

 Features – Gadgets like GPS device, night vision will be

provided

 Brand Name –Ambassador CR

 Services – HM already have service centres across the

country
 List Price –Start from Rs 75 lacs.

 Payment Period –

• Custom made finance schemes & payment periods according to

customer requirements.

 Credit Terms –

• Credit will be given to government authorities on bulk order.

 Sales Promotion –Incentive to Sales executives.

 Advertising –In auto shows and in auto magazines.

 Direct Marketing

 Public Relation- Sponsoring and organizing corporate events.

• Direct Marketing.

• Inventory –Made on order. Hence no inventory.

• Locations –In India as well as exported.

 Conclusion

Since the company is entering into an already

existing car market, the company would go for
the revival of Ambassador, an established brand
as the strategy. The company is entering into the
luxury market, which has the maximum growth
potential in the Indian car market.