PROJECT REPORT

ON
“Analysis of Marketing Strategies Adopted
at Bajaj Auto Limited”

SUBMITTED IN PARTIAL FULFILLMENT FOR

THE AWARD OF THE DEGREE OF
BACHELOR OF BUSINESS MANAGEMENT

Under The Guidance of: - SUBMITTED BY:-

Miss. Shagun Mishra BHAVTOSH SARDAR
(BBA 5th SEM)
ROLL NO. :- 211335250027
 TO WHOMEVER IT MAY CONCERN
October 01,2023

This is to certify that BHAVTOSH SARDAR has worked as a Project Trainee with our
department of Marketing and SALES , from October 18, 2023 to November 20, 2023 (1
month).

During the period, he has worked on Analysis of Marketing Strategies Adopted

He has completed this project under the guidance and supervision of his marketing manager –
Mr. DEEPAK SONKER

He has been sincere in his work during his stint in BAJAJ and his performance
was VeryGood

DEEPAK SONKER
MARKETING MANAGER
 CERTIFICATE
(Form faculty guide)

I have a pleasure in certifying that BHAVTOSH SARDAR, is a bonafide student of 5th

semester of the Bachelor of Business Administration of DROAN COLLEGE OF

EDUCATION AND TECHNOLOGY under university roll no. 211335250027. He

has completed his project entitled ANALYSIS OF MARKETING STARTEGIES

ADOPTED AT BAJAJ AUTO LTD.PVT

Under my guidance, In the year 2023-2024, in the final fulfillment

of BACHELOR OF BUSINESS ADMINISTRATION

Signature of Project Guide

(Miss. Shagun Mishra)

 STUDENT’S DECLARATION

I hereby, declare that the project report titled, “ANANLYSIS OF MARKETING

STARATEGIE S ADOPTED AT BAJAJ AUTO LIMITED”

“ANANLYSIS OF MARKETING STARATEGIES ADOPTED AT BAJAJ

AUTO LIMITED” is my original work and has not been
published or submitted for any degree, diploma or other similar titles
elsewhere. This has been undertaken for the purpose of partial fulfillment of

BACHELOR OF BUSINESS ADMINISTRATION in DROAN COLLEGE

OF EDUCATION AND TECHNOLOGY.

Date:- BHAVTOSH SARDAR

(BCH 5th SEM)
ROLL NO. :- 211335250027
 ACKNOWLEDGEMENT

The satisfaction and joy that accompanies the successful completion of a task is

incomplete without mentioning the name of the person who extended his help and

support in making it a success.

I am indebted to my Company Guide and Faculty Guide for devoting their

valuable time and efforts towards my project. I thank them for being a constant

source of knowledge, inspiration and help during this period of making project. I

regret any inadvertent omissions.

 SYNOPSIS

Today‟s society is warm with urbanization and demonstration effect. With a view

towards it, there are drastic changes coming up in all sectors even in the automobile industries.

The following information gives an insight about it. In the present context the companies operate

on the principle of natural selection – “Survival Of The Fittest”. Only those companies will

succeed which at best match to the current environmental imperatives – those who can deliver

what people are ready to buy. But real marketing does not involve the art of selling what the

manufacturers make. Organizations gain market leadership by understanding consumer needs

and finding solutions that delight consumers. If customer value and satisfaction are absent, no

amount of promotion or selling can be compensated. Hence the aim of marketing is to build and

manage profitable customer relationship . This is a part of the strategic marketing done by every

company to achieve its objectives and goals. To maximize the profits and long term plans every

organization has to follow a strategic planning.

TITLE: “Analysis of marketing strategy adopted at LR Auto”

OBJECTIVE: To understand the growing relevance of marketing strategies in the potential

automobile sector in order to derive different ways of enhancing the market share of the cars dealt

in by the company.

PROBLEM: To search about the causes of fall in sales of cars recently and find out

solutions for the same in the light of reviving marketing strategies.

SCOPE OF THE STUDY: It covers a wide area under research such as consumer

perception towards a particular car brand, reasons behind declining trend in automobile
sectors, impact of various marketing strategies adopted and future needs and goals of the organization.

ABSTRACT: The rationale behind the selection of the topic is based on the growing
impact of marketing strategies in the modern era which help the dealers in generating high

leads for the company products. The study places its focus on getting an insight about the

challenges faced by the dealers in the downtrend scenario of the automotive sector by

carefully checking the loopholes in various activities of the organization. The objective is to

determine possible solutions in order to revive the lost interest among the customers and other

left out groups towards the purchase of four wheelers.

The project was implemented at various steps according to the methodologies stated above. The

flow of authority and responsibility among the employees, distribution of work, implementation

of various plans and corresponding work culture in the organization were among different

crucial things observed during the course of the study. It was found that the organization needs

to integrate different activities that take place in the work area for generating leads and revenue.

If any of these activities are expelled by mistake then the company may be in crisis. Small

commissions and margins in various services help in providing sufficient returns to meet the

expenses of the organization.

In short, we can come to the conclusion that the dealership companies are by far and large

adopting significant means of marketing the product. They are under the influence of the

macro elements that play a pivotal role in affecting the growth story of the organization. These

elements comprise of the inflation trend in the Indian economy, the international disputes,

customer‟s changing preferences and growing competitors. Hence, even after adopting a

flexible approach in the working style, the company faces numerous difficulties for maintain a

consolidated customer base for a smooth flow of revenue in the organization.

METHODOLOGY ADOPTED: Personal interaction with the employees, filling of

questionnaires, gathering information through internet surfing, observing the activities, etc.

were some of the primary methods adopted for research study.

CONTRIBUTION: The research would help the company in refurbishing the loopholes
present in its marketing strategies as well as entire operations through strict surveillance and

understand the tactics to deal with the challenges posed by the competitors for making the process

of delivering a quality value to the customer effective and profitable.

 CONTENTS
1) INTRODUCTION TO THE TOPIC

2) OBJECTIVE OF THE STUDY

3) INTRODUCTION TO THE AUTOMOBILE INDUSTRY

4) ARRIVAL OF FIAT

5) MARKETING STRATEGIES AND ANALYSIS

6) MARKETING STRATEGIES AT LR AUTO

7) QUESTIONNAIRE

8) CONCLUSION

9) SUGGESTION AND RECOMMENDATION

 INTRODUCTION TO THE TOPIC

“Analysis of marketing strategies in a four wheeler dealership company” encompasses several

aspects of marketing function in an organization as well as the in depth study of an automobile

sector. Marketing is much more than just an isolated business function – it is a philosophy that

guides the entire organization towards sensing, serving and satisfying consumer needs. The

marketing department cannot accomplish the company‟s customer relationshipbuilding goals by

itself. It must partner closely with other departments in the company and with other organization

throughout its entire value – delivery network to provide superior customer value and satisfaction.

Thus marketing calls upon everyone in the organization to “think customer” and to do all they

can to help build and manage profitable customer relationship. Marketing is all around us, and

we need to know that it is not only used by manufacturing companies, wholesaler and retailers,

but also by all kinds of individuals and organizations. There are four major, powerful themes

that go to the heart of modern marketing theory and practice, they are:

1. Building and Managing Profitable Customer Relationships.

2. Building and Managing Strong Brands.

3. Harnessing New Marketing Technologies in This Digital Age.

4. Marketing in a Socially Responsible Way around the Globe.

“What marketing is what it does and what it offers.”

“Marketing is a social and managerial process whereby individual and groups obtain what they need

and want through creating and exchanging products and value with others”. “Marketing management

is the process of planning and executing the conception, pricing, promotion and distribution of ideas,

goods and services to create exchanges that satisfy individual and organizational goals.” “Marketing

offers some combination of products, services, information, or experiences offered to a market to

satisfy a need or want”. Marketing is an orderly and insightful process for thinking about
and planning for markets. The process starts with researching the market place to understand its

dynamics.

The marketer uses research methodologies to identify opportunities, that is, to find individuals and

groups of people with unmet needs or latent interest in some products or service.

The marketing process consists of the following:

1. Analyzing marketing opportunities i.e. analyze market, competition and customers.

2. Developing marketing strategies.

3. Planning marketing programs i.e. research distribution

4. Managing the marketing efforts.

5. Financial Analysis

6. Review and Revise

Before taking any decision and achieving the goals, it has to make analysis of What to do, how

to do, when to do, where to do and who is to do it. This is nothing but strategic planning. Goals

indicate what a business unit wants to achieve whereas strategy is how to get there. Marketing

strategies in simple terms are the complete and unbeatable plans designed specifically for

attaining the marketing objectives of the firm. Marketing can be called as a game plan for

achieving its goals. Strategy choice will depend on whether the firm or the marketer plays the

following roles:

► Market leader

► A challenger

► A follower

► A nicher

The identification of objectives, both in quantitative and qualitative terms, is an essential backdrop to

strategy formulation. Goals have a quality and time frame attached to them.

These are typically spelt out in terms of financial return, market share, market presence, etc.

Thus, the concept of market oriented strategic planning arises with the link between the products

the link between the products the manufacturer is dealing in and the market conditions. In this

direction, our study deals only with the marketing strategies

i.e. promotional strategies of the automotives.

 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE

To know the influence of various marketing strategies, promotional activities, over the customers

of four wheelers.

SECONDARY OBJECTIVES

● To know the effective factors for preferring 4 wheelers

● To know the factor for awareness of the cars

● To know whether the customers are satisfied with the offers given by the dealer

● To know which kind of offers can attract the new customers

● To study and analyze the promotional strategies of the company

● To find the area to be improved

● To find out the satisfaction of the customers

● To find the reasons for the dissatisfaction

● To study the channel levels involved in the promotion of the cars

● To study and analyze the customer's perception regarding the usefulness/utility of cars sold

by the company

● To study and analyze the distributors perception regarding the promotional and distributional

strategies of LR Auto

INTRODUCTION TO AUTOMOBILE INDUSTRY

Automotive industry is the key driver of any growing economy. It plays a pivotal role in

country's rapid economic and industrial development. It caters to the requirement of equipment

for basic industries like steel, non-ferrous metals, fertilizers, refineries, petrochemicals, shipping,

textiles, plastics, glass, rubber, capital equipments, logistics, paper, cement, sugar, etc. It facilitates

the improvement in various infrastructure facilities like power, rail and road transport. Due to its
deep forward and backward linkages with almost every segment of the economy, the industry has

a strong and positive multiplier effect and thus propels progress of a nation. The automotive

industry comprises of the automobile and the auto component sectors. It includes passenger cars;

light, medium and heavy commercial vehicles; multi- utility vehicles such as jeeps, scooters,

motor-cycles, three wheelers, tractors, etc; and auto components like engine parts, drive and

transmission parts, suspension and braking parts, electrical body and chassis parts; etc.

The Role of Automobile Industry in India GDP has been phenomenon. The Automobile

Industry is one of the fastest growing sectors in India. Probably automobile industries occupy

a large market share in the worlds market as well as in the Indian market. Nearly 18% of the

total national income is being incurred from the automobile industry. From this we can

estimate the importance of an automobile industry in the improvement of GDP of a country.

In India automobile industry has a growth rate is at the average of 10-12%. India has become

one of the international players in the automobile market. It is expected that the

Automobile Industry in India would be the 7th largest automobile market within the year 2016.

INDIAN AUTOMOBILE INDUSTRY SINCE 1947:

It is a fascinating drive through history, which begins as a story of isolation and missed

opportunities to one of huge potential and phenomenal growth. India‟s fixation with socialism

and planned economies had a crippling impact on the automotive industry in its formative years.

The goal at that time for independent India was self-sufficiency. Issues like quality and

efficiency were simply not considered. Dependence of foreign technology was banned and

manufacturers were forced to localize their products; import substitution became the order of

the day. Though we learnt to localize, the cars we made were all outdated designs with little or
not improvements for decades. The automotive industry stagnated under the government‟s

stifling restrictions and the Indian car buyer was saddled with cars of appalling quality and even

then there was a waiting list that at one point stretched to eight years! This attempt at self-

reliance failed miserably because of the industry‟s isolation from the best technology. The

Japanese and later Korean auto industries were also highly protected in their formative years

but they never shut the door on technology. Instead, they relentlessly tapped the best talent pools

in the world to absorb the know-how to produce good cars. One of the most important chapters

in the Indian automotive industry‟s history was written by Maruti. It marked the Indian

government getting into the far business in the early1980‟s, a radical shift in thinking after

decades of treating cars with disdain. The Maruti 800 went on to become the staple car of India

and put a nation on wheels. This little car set a benchmark for price, size and quality and

structured India as small car market. It wasn‟t till 1993 that things really started to change for

the Indian car buyer. With the liberalization of the economy, a host of international carmakers

rushed in. But most of them were in for a shock as Indian customers rejected their product.

Indian customers refused to allow the glitter of prestigious brands blind them to the outdated

and overpriced products they were offered. The Indian consumer wanted super value, and

rewarded the brands that delivered it, handsomely. Hyundai and Maruti delivered, and profited.

The period also saw the emergence of the Indian players like Tata Motors and

Mahindra & Mahindra. They rose to the challenge of the MNC‟s and responded brilliantly with
the Indica and the Scorpio. This was ironically due to the license raj that forced Indian
carmakers to be innovative and develop products frugally. India‟s frugal engineering skill has
now caught the world‟s imagination, and an increasing number of carmakers are preparing to
setup major capacities here. India‟s changing, and changing fast. It‟s moving forward. India‟s
largest-selling car is not its cheapest car, the 800. It is the Alto. People‟s aspirations are rising
and so are their mistakes, have got their finger on the pulse of the market. Get the right product
and the rewards are handsome. The Indian auto industry is today bubbling with promise and
confidence. It‟s been a long journey but to see where the Indian car industry is going. We have
to see where it has been.
AUTOMOBILE INDUSTRY IN PRE-INDEPENDENCE:

The first motorcar on the streets of India was seen in 1898, Bombay had it first taxicabs by the

turn of the century. In 1903, an American company began a public taxiservice

with afleet of 50 cars. For about 50 years after car arrived in India, cars wer e directly imported.

Before World War I, around 40,000 motor vehicles were imported. During the years between

the wars, a small start for an automobile industry was made when assembly plant were

established in Bombay, Calcutta and Madras. The import/assembly of vehicles grew

consistently after the 1920s, crossing 30,000units by 1930. It was during the end of the war that

the importance of establishing an indigenous automobile in India was realized. Premier Motors,

Hindustan Motors and Mahindra & Mahindra set up factories in the 1940s for progressive

manufacture rather than assembly from imported components. The cars they chose to make

were the latest in the world when they were introduced in India in the formative years of the

industry.

POST- INDEPENDENCE:

The government clamped down on imports and foreign investments. Companies like GM and

Fiat packed their bags and left. India‟s clock, thereafter, stood still while the world raced on

ahead. It would take nearly 50 years before the Indian auto industry could catch up with the rest

of the world again.

Building India‟s first auto factory

Seth Walchand Hirachand has first started the trails to establish an Indian car manufacturing

plant in Indian for which he went to U.S.A. where three largest car manufacturing companies

are located. He wants Indian company to be completely independent, with Indian management

capital and employees, paying royalty or technology transfer payment to western countries.

After approaching

General Motors, they insisted on part ownership. Seth Walchand then moved to second largest

automaker Fiat; Henry agreed, but delegated the project to Fiat of Canada, which refused.

Finally the third largest automaker Chrysler agreed and signed in an agreement in Bombay in

1940.
SCENARIO OF INDIAN AUTOMOBILE INDUSTRY
In India, automotive is one of the largest industries showing impressive growth over the years

and has been significantly making increasing contribution to overall industrial development in

the country. Presently, India is the world's second largest manufacturer of two wheelers, fifth

largest manufacturer of commercial vehicles as well as largest manufacturer of tractors. It is the

fourth largest passenger car market in Asia as well as a home to the largest motor cycle

manufacturer. The installed capacity of the automobile sector has been 9,540,000 vehicles,

comprising 1,590,000 four wheelers (including passenger cars) and 7,950,000 two and three

wheelers. The sector has shown great advances in terms of development, spread, absorption of

newer technologies and flexibility in the wake of changing business scenario.

The Indian automotive industry has made rapid strides since de-licensing and opening up of the

sector in 1991. It has witnessed the entry of several new manufacturers with the state-of- art

technology, thus replacing the monopoly of few manufacturers. At present, there are 15

manufacturers of passenger cars and multi-utility vehicles, 9 manufacturers of commercial

vehicles, 16 of two/ three wheelers and 14 of tractor, besides 5 manufacturers of engines. The

norms for foreign investment and import of technology have also been liberalized over the years

for manufacture of vehicles. At present, 100% foreign direct investment (FDI) is permissible

under the automatic route in this sector, including passenger car segment. The import of

technology for technology up gradation on royalty payment of 5% without any duration limit

and lump sum payment of USD 2 million is also allowed under automatic route in this sector.

The Indian automotive industry has already attained a turnover of Rs. 1,65,000 crore (34 billion

USD) and has provided direct and indirect employment to 1.31 crore people in the country.

The growth of Indian middle class with increasing purchasing power, along with strong

macroeconomic fundamentals has attracted the major auto manufacturers to Indian market. The

market linked exchange rate, well established financial market, stable policy governance work

and availability of trained manpower have also shifted new capacities and flow of capital to the

auto industry of India. All these have not only enhanced competition in auto companies and
resulted in multiple choices for Indian consumers at competitive costs, but have also ensured a

remarkable improvement in the industry's productivity, which is one of the highest in Indian

manufacturing sector.

The Department of Heavy Industry, under the Ministry of Heavy Industries and Public

Enterprises, is the main agency in India for promoting the growth and development of the

automotive industry. The department assists the industry in achievement of its expansion plans

through policy initiatives, suitable interventions for restructuring of tariffs and trade, promotion

of technological collaboration and up-gradation as well as research and development. The

department is also concerned with the development of the heavy

engineering industry, machine tools industry, heavy electrical industry, industrial machinery, etc.

The automobile sector recorded growth of 13.56% in 2006-07. During the year 2007-08

(AprilDecember), the industry decelerated at 3.49%. The automobile exports crossed the US$

1 billion mark in 2003-04 and increased to US$ 2.76 billion in 2006-07. The industry exported

15% of its passenger car production in 2006-07, 10% of commercial vehicles production, 26%

three wheelers and 7% two wheelers. Similarly, during the year 2006-07, the auto component

industry continued its high growth path and emerged as one of the fastest growing sector in

Indian engineering industry by clocking 21% growth in output during the year. This industry

crossed a total turnover of over US $ 15 billion (Rs. 64,500 crore), with exports of US $ 2.9

billion (Rs. 12,643 crore) during the year. Investment in the industry also grew by over Rs. 4500

crore during the year as the industry continued to invest in capacity enhancements and new

greenfield sites to cope with the increasing demand. The auto component industry‟s export

growth was 15% in 2006-07. While, the total imports was US $ billion (Rs. 14,644 crore). On

the quality and productivity front, auto component industry maintained its leadership with more

than 95% companies being certified as per the ISO 9000 system standards and more than 70%

of the companies are certified as per the ISO/TS 16949 standards. It has also the distinction of

having the maximum number of 11 Deming award winning companies.

In order to further accelerate and sustain advancements in the auto sector, the department has

undertaken several policy measures and incentives. The most important being the

announcement of the 'Auto Policy' of 2002, which aims to establish a globally competitive

automotive industry in India and double its contribution to the economy by 2010. The policy

seeks to set out the direction of growth for the sector and promote R&D therein so as to ensure

continuous technology up-gradation as well as building up of better designing capacities. It

emphasizes on low emission fuel auto technologies and availability of appropriate auto fuels in

order to take auto manufacturing to a self-sustaining level. Broadly, the objectives of the auto

policy are to:-

● Exalt the sector as a lever of industrial growth and employment and to achieve a high

degree of value addition in the country

● Emerge as a global source for auto components

● Establish an international hub for manufacturing small, affiatable passenger cars and a

key center for manufacturing tractors and two-wheelers in the world

● Ensure a balanced transition to open trade at a minimal risk to the Indian economy and

local industry

● Conduce incessant modernization of the industry and facilitate indigenous design,

research and development

● Steer India's software industry into automotive technology

● Assist development of vehicles propelled by alternate energy sources

● Development of domestic safety and environmental standards at par with international

standards.
 A FORGETTABLE YEAR

● It is said that one cannot predict the future by looking into the past. This adage holds

true for the automotive sector in India. According to data available with the Society of

Indian Automobile Manufacturers (SIAM), domestic passenger car sales stood at 1,

38,521 units in October 2011 compared to the 1, 81,704 units sold in the same month

last year (October 2010). Even the festive cheer did nothing to help the cause this season.

The year 2011 has been gloomy for the industry as it has shown the steepest decline in

sales since 2000.

● The carmakers have cited increased fuel prices and bank interest rates as the key reasons

for the collapse. Fuel prices have been revised more than 11 times in the past one year

and Reserve Bank of India (RBI) has increased lending rates by 13 times since March

2010 to cool inflation. This has made the shoppers think twice before buying a car.

Moreover, a car is the second biggest investment for many households, with the first

being purchasing a home, and people are not taking car loans as they already have home

loans to repay.

● Despite the dismal performance this year the Indian automotive companies are not

hitting the panic button as many expected the slowdown and have made plans to counter

the same.

● Many automotive companies

converted the adversity into

an opportunity by coming up

with new launches which

have an option of diesel

engines. With the hike in the

petrol prices, the differential

price between petrol and diesel is currently more than 40 percent, which lead to an

increase in demand for vehicles with a diesel engine.

 ● Analysts expect 2012 to be a bright year for the industry as statistics show that the Auto

Expo 2011 has all its stalls booked which reflects the many customer friendly deals

companies have to offer. Companies have realized that trimming down the cost

of vehicles and providing vehicles to customers at a relatively low price is the key to increase

their sales.

● Several large companies have geared up to this new reality and are in the process of

investing down south to set up manufacturing units, R&D facilities and design

capabilities.

ON A BRIGHTER NOTE

● Considering the challenges that the industry has been facing since the past one year and

the way it has countered most of the threats that it faced, one can be sure that the future

of auto industry is promising. This is proved by the recent announcement made by

SIAM, that the car sales are projected to increase up to 5 million vehicles by 2015 and

more than 9 million by 2020. By 2050, India is expected to top the world in car volumes

with approximately 611 million vehicles on the nation‟s roads.

THE ARRIVAL OF FIAT:

Fiat S.p.A. (Fabbrica Italiana Automobili Torino) is the parent company of the Fiat Group and,

since July 2011, also the majority shareholder in Chrysler. On 29 January 2014, it was

announced that Fiat S.p.A. will be merged into a new Netherlands-based holding company Fiat

Chrysler Automobiles NV (FCA) with the now wholly owned Chrysler Group and that the

merger is expected to take place before the end of 2014. Fiat Chrysler

Automobiles will become the owner of Fiat Group.

In 1951, PAL singed up with Fiat to assemble the Fiat 500 in India. In 1952, the tariff commission

spelled out future for the auto industry – indigenize or get out. Companies like
Fiat and GM, which had assembly operations in India, packed their bags and went home.
But fiat decided to stick it out and committed itself full-fledged manufacture of the Millicento

in 1954. In September 1964, PAL and FIAT launched the Fiat 1100 DELITE in India. The

biggest customers for PAL‟s were Bombay’s taxi drivers . The Padminies were easy for

maintenance in terms of spares and labour cost, low on running cost, easy to drive and

reasonably tough. It was everything that a taxi driver wants.

FIAT CARS IN INDIA

Way back, in the year 1899, a group of investors from Italy, including the famous entrepreneur

Giovanni Agnelli, founded an automobile manufacturing company called as the Fabbrica

Italiana Automobili Torino (F.I.A.T.) societa per azioni (S.p.a.), in other words, the
Italian Automobile Factory of Turin. The company was renamed later in 1906, its acronymous

name getting replaced by the upper- and lower-case 'Fiat', which represents the company across

the world till date. Over its long lifespan, which extends longer than a century, Fiat has acquired
several other companies and entered into a number of partnerships, making its presence felt on

a global level. While its acquisition list features brands like Lancia (1968), Ferrari (1969), Alfa

Romeo (1986), Maserati (1993) and Chrysler (2011), the major partnerships that Fiat has been

involved in can be traced to countries like Serbia, France, Turkey, India and China.

In India, Fiat began its operations in 1997, when Fiat India Automobiles Limited (FIAL) got

established at Ranjangaon in the Pune district of Maharashtra on January 2. Beginning its

journey in the Indian Peninsula by selling the 1100, the 124 and the Uno models, which were

manufactured back then by the iconic auto-clan of Premier Automobiles Limited, Fiat formed

a joint venture with the illustrious Tata camp on October 19, 2007. Today, this Italian automaker

ranks at the ninth position amidst the largest car manufacturers by sales in India. Having sold

23,551 vehicles in 2009, an impressive growth of 241% was recorded by Fiat in India in

comparison to its sales count of 6,897 recorded over the year before that.

To make sure that these plans work out exactly the way they are expected to, Fiat India is

working round the clock on getting as many as dealerships set up across the country by the end

of 2013. As of May, 2013, the dealership base of the company comprises of 54 outlets. Having

ended its distribution agreement with Tata on April 1, 2013, the Italian automaker is working

very proactively on expanding its sales and services network in India. However, it is not just the

dealerships that lie within the area of focus of Fiat. Its manufacturing base, comprising of a

single plant at Ranjangaon, Maharashtra, with a current annual production capacity of 100,000

cars and 200,000 engines, is being worked on so that its production capacity could be doubled

over the next few years.

FIAT MODELS IN INDIA

Although Fiat has been a part of the Indian automobile industry for over a decade and a half,

not many models have been launched from its camp in the Indian car-bazaar. The most popular

entrants belonging to this clan have been the Fiat Linea sedan and the Fiat Grande Punto

hatchback, both of which are locally produced at the Ranjangaon facility owned by the

company. Although over the days to come, several new models are expected to make their way

into the Fiat clan, expanding its portfolio and adding more charm to it, at present, only 3 models

are featured on its lineup - Fiat Punto, Fiat Linea Classic and Fiat Linea.

FIAT LOWEST PRICE CARS

Ever since Fiat first started manufacturing and selling cars in India, its offerings have been

known and applauded for the creativity, versatility and practicality that their maker incorporates

in them. Simple yet attractive looks, decent comforts, sufficient room and brilliantly-designed

engines - such are the traits that have always been the defining factors of every Fiat car. Despite
being packed with all these qualities, Fiat cars have always managed to put forward a very

affordable deal for their buyers, which only adds to their list of pros. Currently, the most

affordable model that this Italian car-major has on sale in the Indian car- market is Fiat Grande

Punto, having been tagged with a price of Rs 4,92,799.

FIAT HIGHEST PRICE CARS

Over the past decade and a half that Fiat has spent manufacturing and selling cars in India, the

price tag of each of its offerings has been very smartly branded. Pricing being a major deciding

factor for the fate of every car in the Indian auto-market, Fiat India has always paid attention to

keeping its cars in competitive price brackets. Be it hatchbacks or sedans, Fiat cars have always

had that touch of practicality that arises from an aggressive price. That's the reason why even

the most heavily priced member of the Fiat family, Fiat Linea, comes bearing a price tag of just

Rs 7,00,454.

MOST FUEL-EFFICIENT FIAT CARS

Fiat has spent over 15 years on Indian soil, serving as one of the most renowned automakers in

the country. But, more than the car-manufacturer has been known for the cars that it has built

over all these years, it has been applauded for the spectacular power mills that it has designed

and manufactured at its Ranjangaon plant. Be it the immensely successful 1.3-litre multi jet

diesel engine or the 1.2-litre and 1.4-litre Fire gasoline mills, Fiat engines have

powered, and are still driving, many cars that dash across the Indian roads today, including those

belonging to the famous camp of Maruti Suzuki. What makes these power mills so sought-after

amongst auto-clans is their high-performance, exceptional refinement and impressive fuel-

economy returns. Thanks to these very smart engines, extremely fuel- efficient models are

offered by Fiat in India, the most fuel-efficient of which is Fiat Grande Punto, which is available

for a sum of Rs 4,92,799 in the market. Fiat has provided all the bells and whistles in a very
economical way. Even the base variant of T-Jet now comes with features such as Anti-lock

Braking System (ABS), Electronic Brake force Distribution (EBD), and four disc brakes to

name a few.

FIAT UPCOMING MODELS

Having once recorded a towering growth figure of 241%, Fiat India has been quite some troubles

recently. With its sales figures having dropped down significantly and its market share reduced

to less than 1%, the company is now set and ready to throw in a real fight. Aiming to raise its

sales count to a staggering 130,000 by the end of 2014 and establishing its claim over 5% of the

market, Fiat is gearing up to add some very alluring models to its fleet over the days to come.

Included in this upcoming lineup is Fiat Avventura.

Fiat has 3 car models available in India. The available models are Fiat Punto, Fiat Linea Classic,

Fiat Linea,. The minimum priced model of Fiat is Fiat Punto priced at Rs 4,92,799 and the

maximum priced model of Fiat is Fiat Linea priced at Rs 9,74,111. To find out about Fiat

Dealers in India click here. Click here to learn more about Fiat History in India.

It is well known that in the medium-to-long-term, India is likely to be among the top five auto

markets in the world. In the short-term, though, there are issues with car sales slowing down.

The Society of Indian Automobile Manufacturers (SIAM) has reported figures with eight

quarters being down and even year-on-year, car sales are down.

There are several things like macro factors and lack of demand due to changes in excise duty, overall

situation with the pre-election year etc.

In the words of Fiat CEO Rajeev Kapoor, “At Fiat, we are here to stay and have started out with

a three-pillar strategy based on product, brand and network. On the product side, we have a

product offensive with nine, new or significantly refreshed products to come. We are very

product-focused and a lot of the product initiatives as we go forward along with

customerconnect initiatives are what will help.

We are expanding our exclusive dealer network where we are going it alone. On the brand side,

Fiat is a brand that has been around a long time but I think part of the story that we are trying

to bring out is that the brand itself has grown over the last 20-30 years and Fiat- Chrysler is

today the world‟s seventh largest auto maker. We are cautiously optimistic. We look at India

as a growing and a strategic market”.

Granted there are some headwinds right now but our products, our technology and innovation

combined with the exclusive dealer network will probably get us out of this.

Fiat Group Motors, now a 100 per cent subsidiary of the Italian SPA post its transition

announcement from Tata Motors, has launched a new integrated brand reassurance marketing

campaign, designed as a communication tool to tell its consumer database about its new

initiatives, dealerships, post sales service and more importantly, deliver the brand experience

that was missing with the joint venture with Tata Motors.

This is also an initiative by the brand to make up for lost brand equity and sales due to the split and

re-establish itself in the Indian market.

MARKETING STRATEGY AND ANALYSIS

A marketing strategy is a process that can allow an organization to concentrate its limited

resources on the greatest opportunities to increase sales and achieve a sustainable competitive

advantage. Any organization that wants to exchange its products or services in the market place

successfully should have a Strategic Marketing plan to guide the allocation of its resources. A

strategic marketing plan usually evolves from an organization‟s overall corporate strategy and

serves as a guide for specific marketing programs and policies. Marketing strategy is based

on a situation analysis- a detailed assessment of the current marketing conditions facing the

company, its product lines, or its individual brands. From this situation analysis, a firm develops

an understanding of the market and the various opportunities it offers, the competition and the

market segments or target markets the company wishes to pursue. Marketing strategy is the

complete and unbeatable plan, designed specifically for attaining the marketing objectives of

the firm/business unit. The marketing objectives indicate what the firm wants to achieve; the

marketing strategy provides the design for achieving them .For example, if the marketing

objectives of a business unit stipulate that next year, it should achieve a sales revenue of Rs.

1,000 crore and a net profit of 15 percent of sales revenue, it is the job of marketing strategy to

indicate how and wherefrom this sale and profit will come, which product lines/products/brands

will accomplish this task and how. Marketing strategy forms an integral part of marketing

planning. A marketing strategy is most effective when it is an integral component of corporate

strategy, defining how the organization will successfully engage customers, prospects, and

competitors in the market arena. It is partially derived from broader corporate strategies,
corporate missions, and corporate goals. As the customer constitutes the source of a company's

revenue, marketing strategy is closely linked with sales. A key component of marketing strategy

is often to keep

marketing in line with a company's overarching mission statement.

MARKETING AND PROMOTIONS PROCESS MODEL :

Development of marketing program requires an in-depth analysis of the market.

This analysis may make extensive use of market research as an input into the

planning process. This input, in turn, provides the basis for the

development of marketing strategies in regard to product, pricing, distribution and

promotion decisions. Each of these steps requires a detailed analysis, since this

plan serves as the road map to follow in achieving marketing goals. Once the

detailed market analysis has been completed and marketing objectives have been

established, each element in the market mix must contribute to a

comprehensiveintegrated marketing program. Of course, the promotional progra

m element must be combined with all other program elements in such a way as to

achieve maximum impact.

FORMULATING THE MARKETING STRATEGY

Basically, formulation of marketing strategy consists of three main tasks:

1. Selecting the target market,

2. Positioning the offer,

3. Assembling the marketing mix.

This implies that the essence of the marketing strategy of a firm for a given product or brand

can be grasped from the target market chosen, the way it is positioned and how the marketing

mix is organized. The target market shows to whom the unit intends to sell the products;

positioning and marketing mix together show how and using what uniqueness or distinction, the

unit intends to sell. The three together constitute the marketing strategy platform of the given

product.

SELECTING THE TARGET MARKET:

To say that target market selection is a part of marketing strategy development is just stating the

obvious. It does not fully bring out the import of the inseparable linkage between the two. When

the selection of the target market is over, an important part of the marketing strategy of the

product is determined, defined and expressed. 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.

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.

STRATEGIC MARKET SEGMENTATION:

Market Segmentation is “dividing up a market into distinct groups that

(1) Have common needs and

(2) Will respond similarly to a marketing action”,

which was said by Eric N.Berkowitz, Roger A.Kerin, and William Redulius

The Segmentation process involves five distinct steps:

➢ Finding ways, to group consumers according to their needs

➢ Finding ways to group the marketing actions – usually the products offered – available to the

organization.

➢ Developing a market-product grid to relate the market segments to the firm‟s products or actions.

➢ Selecting the target segments towards which the firm directs its marketing actions.

➢ Taking marketing actions to reach target segments

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 consumer forms yet another base. The various types of

segmentations are :

a) Geographic segmentation.

b) Demographic segmentation

c) Psychographic segmentation

d) Buyer behavior

e) Benefits segmentation

f) Volume of purchase segmentati on

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

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 PRODUCT POSITIONING:

➢ Where is the new offer going to compete? As what?

➢ Which product function/customer need is it trying to meet?

➢ What other product categories serve this need?

➢ In other words, what are the substitute products that serve the same need?

➢ Where is the real gap, where is such a new offer most welcome and wanted by the market?

➢ What are company‟s competencies to fight here?

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 favoured position…? And

yet vacant? Can the new brand claim the needed distinction and take the position and satisfy the

need? The major dimension of marketing strategy relates to positioning of the offer. The firm has

already selected the target market and decided its basic offer. Now, what is the conjunction

between these two entities? How do they get connected? What is the interface? In other words,

what is the locus the firm seeks among the customers in the chosen target market with its offering?

How would the firm want the consumer to view and receive the offer? These are the issues the

firm has to grapple with in positioning. And, while formulating the marketing mix too, the firm

will agitate over these issues. The Product Differentiation and Positioning discusses the

multifarious issues involved in the subject.

PRODUCT REPOSITIONING : Products do undergo „repositioning‟ as they go along their

life cycle. In some cases, even products that are fairing well are repositioned. This is done

mainly to enlarge the reach of the product offer and to increase the sale of the product by

appealing to a wider target market. The product is provided with some new features or it is

associated with some new target segments.

PROMOTIONAL DECISIONS:

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

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.

THE PROMOTIONAL MIX

➢ Advertising

➢ Direct marketing

➢ Interactive/ internet

➢ Sales promotion

➢ Publicity/Public relations

➢ Personal selling

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.

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 CD- ROMs,

Kiosks, and interactive television.

SALES PROMOTION:
The next variable in the promotional mix is sales promotion, which is generallydefined 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, sales promotion is

generally broken into two major categories: 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, sweep stakes ,and various point-

of-purchase materials. Trade-oriented sales promotions are targeted towards marketing

intermediaries such as wholesalers, distributors and retailers.

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:

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.

ASSEMBLING THE MARKETING MIX:

Assembling the marketing mix means assembling the four Ps of marketing in the best

possible combination. Involved in this process are the choice of the appropriate marketing

activities and the allocation of the appropriate marketing effort/resources to each one of them.

The firm has to find out how it can generate the targeted sales and profit. It
considers different marketing mixes with varying levels of expenditure on each marketing

activity and tries to figure out the effectiveness of different combinations in terms of the possible
sales and profits. It then chooses the combination/mix of products, price, place and promotion

that is best according to its judgment. Since marketing is essentially an interaction between the

marketing mix and environmental variable, and since the latter and non- controllable, marketing

becomes synonymous with assembling and managing the marketing mix. Of course, while

assembling the marketing mix, the marketing manager will take due note of the environmental

variables.

Not only will he take due not of them, he will ensure that his marketing mix suits the environmental

variables. And, it is this factor that renders the task much more complex.

MARKEGING MIX: THE SOLE VEHICLE FOR CREATING AND

DELIVERING CONSUMER VALUE

The four elements mentioned above- product, distribution, promotion and pricing constitute the

marketing mix of the firm. The marketing mix is the sole vehicle for creating and delivering

customer value. It can be easily seen that all activities and programmes, which a marketer

designs and carries out in his effort at winning customers, relate to one or the other of the above

four elements- product, place, promotion and pricing. It can also be seen that in each of these

elements, there are several sub-elements. For example, packaging is one of the sub-elements of

product and warehousing is one of the sub-elements of distribution.

THE FOUR PS OF MARKETING:

It was James Culliton, a noted marketing expert, who coined the expression marketing mix and
described the marketing manager as a mixer of ingredients. To quote him, `The marketing man
is a decider and an artist – a mixer of ingredients, who sometimes follows a recipe developed
by others and sometimes prepare his own recipe. And ,sometimes he adapts his recipe to the
ingredients that are readily available and sometimes invents some new ingredients, or,
experiments with ingredients as no one else has tried before. Subsequently , Niel H.Borden,
another noted marketing expert, popularized the concept of marketing mix. It was Jerome
McCarthy, the well-known American professor of marketing, who first described the marketing
mix in terms of the four Ps. He classified the marketing mix variables under four heads, each
beginning with the alphabet “P”.

I. Product

II. Place

III. Price

IV. Promotion

McCarthy has provided an easy-to-remember description of the marketing mix variables. Over

the years, the terms – Marketing mix and Four Ps of marketing have come to be used

synonymously. Assembling and managing the marketing mix is the crux of the marketing task.

And, it is through the marketing mix that the marketing manager achieves the marketing

objectives.
MARKETING STRATEGIES FALL UNDER TWO CATEGORIES:

We have seen that target market selection, positioning and marketing mix formulation together

constitute marketing strategy. We have also seen that a firm can assemble the marketing mix

elements in many different ways, depending on the relative weight age it assigns to the

different elements.

The scope to carve out different combinations is, in fact immense. As a result, business firms

are able to employ an abundance of strategies and strategy stances in their relentless race to stay

ahead of competition.

However, a close scrutiny will reveal that all these strategies can be fitted into two broad categories:

1. PRICE ORIENTED MARKETING STRATEGY

2. DIFFERENTIATION ORIENTED MARKETING STRATEGY

In other words, there are only two broad routes available for forging marketing strategies: any

strategy has to be ultimately either a price-oriented strategy or a differentiation-oriented

strategy.

PRICE ORIENTED MARKETING STRATEGY:

Firms taking to the price route in marketing strategy compete on the strength of

pricing. They use price as their competitive lever. They juggle the price of their product to suit

the prevailing competitive reality. They can affiat to offer lower prices and still make the

targeted profits. They elbow out competition with the cushion they enjoy in the matter of

pricing. Price route requires cost leadership, evidently, a firm opting for the price route will

have to have a substantial cost advantage in their operations. It should be enjoying an overall

cost leadership in the given industry and its lower cost should enable it to secure above average

returns, inspite of strong competition. The cost advantage can emanate from different factors

like, scale economies, early entry, a large market share built over a period of time, locational

advantage, or synergy among the different businesses. The firms whole strategy, in fact will

revolve around building such cost advantage. To successfully practice a price-led strategy, a

firm should have consciously taken to the idea sufficiently early in its evolutionary process and

prepared itself for adopting such a strategy.

DIFFERENTIATION ORIENTED MARKETING STRATEGY:

The differentiation route of strategy revolves around aspects other than price. It works on the

principle that a firm can make its offer distinctive from all competing offers and win through

the distinctiveness. And, a firm adopting such route can price its product on the perceived value

of the attributes of the offer and not necessarily on competition-parity basis. Maximum scope
for exploiting differentiation remains with the product. While all the 4Ps of marketing are

important elements from the point of view of strategy, the other Ps normally go as elaborations

of the offer, while the product forms its core. Product differentiation is of vital importance in

product management and has great potential in forgoing successful marketing strategies. The

product can be differentiated along two major planks:

1. Tangible product attributes and functions,

2. Intangible characteristics and emotional associations.

The tangible product attributes and functions are Differentiation based on ingredients, Differentiation
based on functional value,

Differentiation based on additional features, Packaging contributing to differentiation, Differentiation

based on Quality, Operational Efficiency, Technology, Service.

DIGITAL MARKETING:

Digital Marketing is the practice of promoting products and services using digital distribution

channels to reach consumers in a timely, relevant, personal and cost-effective manner. Whilst

digital marketing does include many of the techniques and practices contained within the

category of Internet Marketing, it extends beyond this by including other channels with which

to reach people that do not require the use of The Internet. As a result of this non-reliance on

the Internet, the field of digital marketing includes a whole host of elements such as mobile

phones, sms/mms, display / banner ads and digital outdoor.

BUZZ MARKETING (WORD OF MOUTH):

Word of mouth, is a reference to the passing of information by verbal means, especially

recommendations, but also general information, in an informal, person-to-person manner. Word

of mouth is typically considered a face-to-face spoken communication, although phone

conversations, text messages sent via SMS and web dialogue, such as online profile pages, blog

posts, message board threads, instant messages and emails are often now included in the
definition of word of mouth. There is some overlap in meaning between word of mouth and the

following: rumor, gossip, innuendo, and hearsay; however word of mouth is more commonly

used to describe positive information being spread rather than negative, although this is not

always the case.

Word-of-mouth promotion, also known as buzz marketing and viral advertising, is highly valued

by advertisers. It is believed that this form of communication has valuable source credibility.

Research points to individuals being more inclined to believe WOMM than more formal forms

of promotion methods; the receiver of word-of-mouth referral stands to believe that the

communicator is speaking honestly and is unlikely to have an ulterior motive (i.e. they are not

receiving an incentive for their referrals). In order to promote and manage word- ofmouth

communications, marketers use publicity techniques as well as viral marketing methods to

achieve desired behavioral response. Influencer marketing is increasingly used to seed WOMM

by targeting key individuals that have authority and a high number of personal connections.

EVANGELISM MARKETING:

It is an advanced form of word of mouth marketing (WOMM) in which companies develop

customers who believe so strongly in a particular product or service that they freely try to

convince others to buy and use it. The customers become voluntary advocates, actively

spreading the word on behalf of the company. Evangelism literally comes from the three words

of 'bringing good news' and the marketing term justly draws from the religious sense, as

consumers are literally driven by their beliefs in a product or service, which they preach in an

attempt to convert others.

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-Offs Offer:
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.

Dealer stock display contests:

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.

DEFENDING MARKET SHARE:

While trying to expand total market size, the dominant firm must continuously defend it current

business against rival attacks. This step is very much essential for the market leader firm because

the challenger firms are constantly to exploit the weaknesses of the leader firms.
EXPANDING MARKET SHARE:

Market leaders can improve their profitability by increasing their market share. But for few

market leaders whose share in the total market is insignificantly high, the expansion of market

share n the total market may be proved both as expensive and risky. Therefore it is better for

such leader firms in spending their time in building up the market size rather than expanding

the market share. The reason for this action may be attributed to two factors:

1. The market leader firms might attract the provisions of various anti-trust legislations. The

rival competitors will try to force the Government to bring legislations against the

“MONOPOLIZATION”

2. The second reason being the economic factors. The cost of making further gains in the

market share after a large share has been achieved may rise fast and reduce the profit margin.

INNOVATION STRATEGY:

The market leader may innovate several strategies in respect of new product ideas, customer

services, means of distribution, cost cutting discovery. In addition to these, a leader may

discourage its competition particularly challenge firm.

FORTIFICATION STRATEGY:
In order to protect its market share, the market leader may try to keep it product prices

reasonable in relation to the perceived valued of the offer and competitors offer. The leader

produces it brand in a variety of sizes and firms.

CONFRONTATION STRATEGY:
If leader firm faces an extremely aggressive challenger, whose actions demand a quick and

direct response. In such a situation, the market leader will engage any promotional war,

engaging in a massive promotional expenditure that the aggressive challenger cannot match.

The leader firm may engage in the price war whenever a new challenger is considering to

entering its market. This strategy will frighten the potential competitions and make then to

withdraw from entering the market.

MARKETING STRATEGIES OF FIAT:

Product differentiation based on operational efficiency:

FIAT EXCELLING THROUGH SERVICE:

Fiat tries to differentiate its offer on the plank of service. It has gone in for a new norm in

customer service: “ fix it right -the first time-on time”. Fiat is also supplying videotapes showing

how repairs have to be done.

 Adopting Offer to Suit Target Segment:
FIAT MODIFIES ITS MODELS FOR INDIA:
• Higher ground clearance to make the car more compatible to the rougher road surface

in India.

• Stiffer rear springs to enable negotiating the ubiquitous pot holes 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.)

Strategic Segmentation Of Cars:

The Fiat in India has launched the car only for few segments of people. The segmentation of car

buyers based on price preferences is:

• Family car segment:

These cars form a reasonably sizeable segment of the market (around 15 percent). Preferred price

range is from 5 lakh to 6.5 lakhs. “FIAT GRANDE PUNTO DYNAMIC” and “FIAT

GRANDE PUNTO ACTIVE” come under this type of segment. These are its hatchback models.
 • Premium car segment:

This segment represents buyers who need a real world-class car and are willing to pay the due price.

Preferred price range starts from 8 lakh to 12 lakh. “FIAT GRANDE LINEA T- JET”

and “FIAT GRANDE PUNTO SPORTS” come under this segment of cars. These are hatchback

models.

• SEDAN segment:
The buyers of this segment like to have big vehicles. Their body is designed similar to off road

vehicles, which can withstand to Indian roads. These cars provide adequate seating space at the

rear side having a fixed full - height roof. “FIAT LINEA 1.3 MULTIJET EMOTION” and

“FIAT LINEA CLASSIC PLUS MULTIJET” which features a price of around 10 lakhs,

occupies this segment.

STRATEGIC PROMOTIONS BY FIAT:

Fiat follows the promotions at two levels, they are:

1) Promotions of product directly by the manufacturer.

2) Promotions at dealer level.

In the first step the products of vehicles manufactured by the Fiat Automotives are directly
promoted by the manufacturer 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 Fiat dealers are:

1. The dealers provide credit facility to their customers and act as mediator between the bank and the

customer in order to ease the purchasing process for them. The customer provides relevant
documents to the dealers who in turn acquire the sanction letter from the bank after making proper

scrutiny about their CIBIL scores and other grades.

2. Direct Mail Advertising: It includes circulation of catalogues, price list, brochures,

calendars, sending emails, sms, etc to the prospects and the customers of the company.

3. Press Advertising- This involves use of newspapers, magazines, and trade journals for

advertising the features and benefits of the car model.

4. Organizing Customer‟s Meet- Here, a small party is thrown for the prospects and

customers of the car at the showroom, where attractive displays are made depicting the quality

and features of the car. It establishes goodwill of the brand in the market and is considered as

one of the modern and innovative method of promoting the sales.

5. Field visit and Demo Activity: Various road shows at the potential customer markets

leads to branding of the car as well as help in lead generation.

6. Mall Displays: Here, the car is kept for display in a particular shopping mall which

evidences the highest footfalls. Thus, the car becomes a centre of attraction for every person stepping

into the mall.

7. Audio advertising: The famous radio channels are used to advertise the car features and

values which makes the common masses aware about its presence in the market.
8. Mesmerizing Delivery Process: This generates a feeling of satisfaction and loyalty

among the customers as the phenomenal ceremony renders joy in everyone‟s heart when the keys
of the car is finally handled to the customer.

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 affiat 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:

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 Fiat gives a special offer of free insurance on the purchase of each vehicle to its new customers.

STRATEGIC SALES STANDARDS:

Fiat maintains strategic sales standards in the following manner. The Sales faculty is clean, tidy

and inviting, making customers comfortable while purchasing products and availing services.

Customers are courteously acknowledged within two minutes of their arrival and are advised

that a Sales Consultant will be available upon request. The Sales Consultant‟s appearance and

dress will be of the highest standards. An advisory relationship is established between the

customer and the Sales Consultant who listens to the customer, identifies their needs and ensures

that they are met. A pleasant, non-pressured purchase experience will be provided during which

a thorough demonstration of the vehicle features and benefits will be made. A test drive will be

offered to all customers. Using a check list, the Sales Consultant delivers the vehicle in perfect
condition when promised. Customers will be contacted within one week after delivery to ensure

total satisfaction.

MAINTAINING SERVICE STANDARDS:

An efficient service facility allows a customer to avail all the service provided by Fortune Fiat,

in a clean and welcoming environment. An appointment is available within 5 working days of

the customer‟s request. Customers are courteously acknowledged within two minutes of their

arrival and the write-up will begin with five minutes.

Service needs are courteously identified, accurately recorded on the repair order and verified

with the customer. The vehicle is serviced right on the first visit. The vehicle

is ready on the agreed upon time. A through explanation of work done,

warranty coverage and charges is given to the customer. All service repair work will be followed

up within five working days. Each vehicle will be washed before being returned to the customer.

EXTENDED WARRANTY :

Fiat gives an extended warranty to its customers for another two years or 1,50,000 Kms from the

date of sale of the vehicle, where there will be an 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 (example, 1yr/2yrs but unlimited mileage cap)
♦ Covers all Mechanical and Electrical Failures
♦ Covers labour

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

Benefits to customer
♦ Protection from manufacturing and material defects
♦ Car can be repaired at any Fiat 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 labour
♦ All repairs carried out by qualified Fiat technicians
♦ Warranty can be transferred when vehicle is sold – better resale value
♦ Total peace of mind
 RESEARCH METHODOLOGIES AND LIMITATIONS: MARKETING
RESEARCH:

Definition of marketing research as approved as by the board of directors of the association of

American marketing association is:

“Marketing research is the function which links the customer and public to the
marketer through information – information used to identity and define marketing opportunities

and problems generate define and understanding of marketing as process”. Simply, marketing

research is the systematic design collection analysis and reporting of data finding relevant to a

specific marketing situation facing the company. Carefully planning through all stages of the

research is a necessity. Objectivity in research is all-important. The heart of scientific method

is the objective gathering of the information. The function as marketing research within the

company as to provide the information and analytical necessary for effective.

➢ Planning of the future marketing activity.

➢ Control of the marketing operation in the
present.
➢ Evaluation of marketing results.

A research may undertake any of the three types of research investigation depending upon the
problem. These type of research include: 1. Basic research. 2. Applied research.
3. Designated Fact Gathering.
BASIC RESEARCH:

It is also known as the pure fundamental research, which refers to those studies, sole purpose of

which is the discovery of new information. It is conducted to extend the horizons on given area

of knowledge with no immediate application to existing problems.

APPLIED RESEARCH:
It is attempt to apply the various marketing technique, which have been developed as research,

first and later on they become applied research techniques. It is on attempt to apply the basic

principles and existing knowledge for the purpose of solving operational problems.

DESIGNATED FACT GATHERING:

It refers to a research where the investigation attempts to gather some pre-determined data.

STEPS IN MARKETING RESEARCH:

Marketing research process can be out through following steps:

➢ Define the problems and research objectives

➢ Develops the research plan

➢ Collect the information

➢ Analysis and interpretation

➢ Present the finding.

RESEARCH METHOD:
It must be classified on the basis of the major purpose of the investigation. In this problem
description studies have been undertaken, as the objective of the project is to conduct the market
shares study to determine the share of market received by the company to the competitor.

DATA COLLECTION
The information needed to further proceed had been collected through primary and secondary data.

PRIMARY DATA:
It consists of information collected for the specific purpose, survey research was used and he all

the details of Fiat and their competitors were contacted. Survey research is the approached

gathering description and information.

CONTACTED METHOD:
The information was solicited by administering structured questionnaire to the customer and dealers,

thus getting to know directly from the dealers their sales before and after sal

SECONDARY DATA COLLECTION:

The secondary data consists of information that already existing somewhere having been

collected for another purpose. Any researcher begins the research work by first going through

secondary data. Secondary data includes the information available with company. It may be

the findings of research previously done in the field. Secondary data can also be collected from the

magazines, news papers, internet other service conducted by researchers.

METHODS OF DATA COLLECTION:
The basic method adopted in conducting the study is a structured questionnaire. Questionnaire

is administered on the sample respondents. How ever there are certain cases where personal

interaction and observation method is followed with the employees to find the required

information.
 QUESTIONNAIRE

1. Which of the following Fiat car you own?

a) Fiat Linea
b) Fiat Grande Punto

Data Analysis:

Name of the % of customers

car
Fiat Li nea 30
Fiat Grande 55
Punto

Interpretation : This question was meant for taking the information

regarding the most preferred cars among Fiat cars. People prefer Punto over
Linea.

2. What do you like most about your Fiat car?

a) Style/design
b) Comfort
c) Fiat brand
d) Service

Customer’s preference Number of customers

Style/ design 25
Comfort 37
Brand 18
Service 20

Interpretation : This question is meant to know the customer’s preferences

and likes towards the car. From the data we can position our product on the
comfort seeking group ofpeople.

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

a) Fuel efficiency
b) Durability
c) Low maintenance
d) Sound quality
e) Brand name Data Analysis:

Customer’s perspective No. of customers

Fuel efficiency 12
Durability 8
Low maintenance 5
Sound quality 20
Brand name 30

Interpretation : By this question, we can find that generally people purchase

the car by seeing the brand name only. Sound quality is also one of the
criteria.

4. How did you come to know about this car before purchasing?

a) From friends, relatives (buzz)

b) Advertisements
c) Car experts
d) Sale’s persons visit
e) Auto magazines Data Analysis:

Source of awareness No. of customers

Buzz 15
Advertisements 20
Car experts 5
Salesperson’s visit 8
Auto magazines 9

Interpretation : The major media that attracted the customers is television.

5. Can you share your experience with after sale service support?

a) Very much satisfied

b) Satisfied
c) Ok
d) Not satisfied Data Analysis:

Post service experience No. of customers

Very much satisfied 6
Satisfied 15
Ok 25
Not satisfied 4
Interpretation : This question is meant to know the service levels of the
authorized dealers. Mostly, the customers are at indfiefrent attitude with the
service.

6. Where do you get your car serviced regularly?

a)At authorized service centre

b)At a local workshop near my home Data
Analysis:

Place of service No. of customers

Service centres 41
Local workshop 9

Interpr etation: Most of the customers get their car service only at the
authorized service centres. From this we come to know the importance of
these places.
7. Which bank do you prefer in getting financial help while purchasing a
car?

a) ICICI
b) Mahindra and Mahindra
c) SBI
d) Other Data Analysis:

Name of the Bank No. of customers

ICICI 15
Mahindra and Mahindra 8
SBI 20
Others 6

Interpretation : Most of the customers rely on SBI and ICICI bank for
getting financial help for purchasing the car.

8. To which media do you get expose regularly?

a) Televisions
b) Magazines
c) News papers
d) F.M/Radio

Data Analysis:

Media No. of customers

Televisions 30
Magazines 8
Newspapers 18
FM radio 4

Interpretation : It shows that television is playinga significant role in spreading

awareness about the product among the people.

Which kind of T.V. channels do you watch regularly?

a) National news channels

b) Regional news channels
c) Sports channels

d) Entertainment channels Data Analysis:

TV channels No. of customers

National channel 10
Sports channel 16
Regional news channel 4
Entertainment channel 20

Interpretation : This question is meant for knowing interest and preferences

of the customers towards TV channels.

9. What’s your opinion on the price list of Fiat cars?

a) Affordable by common man

b) Affordable only for rich man
c) Can’t say Data Analysis:

Customer opinion No. of customers

Affordable 10
Not affordable 45
Can’t say 4

Interpretation : It shows that cars are too expensive for an economic man of the
society.

10. What kinds of offers do you like or expect from the dealer?
a) Free insurance
b) Special discount on sale of cars
c) Extending the service period
d) Finance availability with 0% interest Data Analysis:

offers No. of customers

Free insurance 12
Special discount 5
Extensions 18
Soft loans 25
Interpretation : Here we come to know about the various promotional
techniques that attract the customers. The customers are expectin
sg
oft loans
and extensions in service period from the dealers.

11. How do you feel when an unknown sales person approaches you by knowing
your full details to demonstrate about any product?

a) I will not respond

b) Lost my privacy
c) Interested in knowing (if I feel a need of it) Data Analysis:

Customer’s opinion No. of customers

No response 11
Lost privacy 5
Interested in knowing 34

Interpretation : This question is prepared indirectly to know the customer’s

opinion about the Data bank maintenance by Fiat car dealers. Majority of them
gave a positive reply showing an interest in knowing about the cars.

12. What’s your opinion on a Brand Ambassador for the cars?

a) Very necessary
b) Not needed
c) Waste of money for manufacturer Data Analysis:

Customer’s opinion No. of customers

Very necessary 40
Not needed 7
Waste of money 2

Interpretation : The question is meant to know the importance of brand

ambassador for cars. People believe in its necessity.
13. What is your opinion about the current Ambassador Sushmita Sen for the
car Fiat Linea T-jet?

a) Fulfilled the purpose

b) Unable to attract customers
c) She is not apt for it.
Data Analysis:

Customer’s opinion No. of customers

Fulfilled the purpose 38
Failed 10
Not apt 2

Interpretation : People are satisfied with the current brand ambassador who
fulfilled the purpose of promoting the cars.

14. What other brand(s) did you seriously consider before making this car
purchase?

a) Toyota
b) Skoda
c) Maruti
d) Honda
Data Analysis:

Customer’s choice No. of customers

Toyota 19
Skoda 9
Maruti 12
Honda 8

Interpretation : This question gives an idea about the competitors of Fiat cars
thriving in the market .

Thanks for taking the time to fill out this questionnaire and for providing valuable
information. It will be used for my project work, market research studies and
reports. We do not share or sell your name, address or any other data with any
outside company for any purpose.
 VALUABLE SUGGESTIONS GIVENBY FIAT CUSTOMERS:

➢ P l e a s e t r y t o i n c r e a s e t h e n u m b e r o f Se r v i c e c e n t e r s.

➢ Keep Service Stations at main locations of the city where many customers feel it easy to
go to service centers..

➢ Please recruit efficient service men in the service centers. The service men in the service
centers are unable to understand the problems told by us, and they are not resolving the

cars problems.

➢ P r o v i d e i n f o r m a t i on o n s e r v i c e a n d m i l e a ge r e gu l a r l y .

➢ Please provide information about new cars along with their price lists at least once in 6
months.

➢ Advertisements through televisions can influence many categories of people. So try to

concentrate on this segment. We don‟t see or find much of the Fiat car advertisements in

T.V except Linea.

➢ T r y to p r o v i d e f i n a n c i a l f a c i l i t y at 0% i n t e r e s t .

➢ Customer should be educated about the maintenance of the vehicle. i.e. maintenance tips
should be provided.

➢ The quality of the sun proof coating used is of very low quality, vehicle colour is getting
shaded very quickly.

➢ Please send the specially appointed feedback taking staff on Sunday evenings only.

➢ The sales people present in the showroom respond to us properly when we come to purchase
a new car, but they do not respond when we come to tell our problems regarding the cars.
 CONCLUSION

The brand Fiat has been working for quite a long time in the Indian economy. It has produced

various affordable models for the people. The marketing strategies adopted by the brand as well

as its dealers is rightly justified. According to the results derived from the customer feedback,

one can come to the conclusion that still a lot more is left to be done. Recently, Fiat has merged

itself with Chrysler and became a complete subordinate to it. Hence, efficiency in the work is

expected after a change in the organizational set up.

There are certain loopholes lying in the internal working conditions of the automobile dealership

company. these are needed to be addressed as soon as possible to promote the demand for the

Fiat cars in the market. Also, new marketing strategies should be innovated by the dealers at

their own level which can prove as an advantage over the competitors and support the growth

of market share. Currently, the market share of almost each car brand is 1%. Hence, a stiff

competition is faced by all.

As the cars offered by the dealers belong to the taste of high class customers and affluent people,

the dealers must try to link their contacts with such prospects for generating leads. An advantage

of having a customer base of High Net Worth individuals is that such prospects do not make

much time on decision making and provide a ready check without serious negotiations. Hence,

a first impression made would help the dealers in grabbing the lasting association and true

loyalty from its customers. Organizing customer‟s meet is one of the innovative and welcome

step in this area.

.
ROAD AHEAD
Fiat Linea had been doing really good on the Indian roads and this prompted Fiat India into

launching the more powerful version of the Fiat Linea- the Turbo Charged Linea. The car has

been christened the Linea T Jet. This car is an improvement over the earlier model of the Linea

and comes with a stronger engine and better features as well. The car costs Rs 8,99,059
on the Indian roads. So, the future of four wheelers in India is promising. Indian Automobile has a

lot of scope for four wheelers due to development in infrastructure of the country. The

Indian auto market is still untapped the majority of the people in country don‟t own a four

wheeler and all the major auto companies are trying to increase their sales by several moves.

Easy availability of finance and rising income levels are encouraging the middle class

population to choose from the vast range of passenger vehicles. India is 16th in the world in

terms of nominal factory output. The service sector is growing rapidly in the past few years. By

analyzing the current trend of Indian Economy and Automobile Industry we can say that being

a developing economy there is lot of scope for growth and this industry still have to cross many

levels so there is huge opportunities to invest in and this is proving as more and more foreign

Companies setting up there ventures in India. The Government of India allows 100 per cent FDI

in the automotive industry through automatic route. The growth rate of Indian

Automobile is so fast that by 2016 Indian Industry will be among world‟s 7 largest manufacturer in

all sections.
 SUGGESTIONS AND RECOMMENDATIONS

• There is huge opportunity of growth for the automobile sector in the coming year, so the

dealers must patiently follow the guidelines of the parent company and maintain the

standard in the market.

• The company can hire the services of Curata which is a global agency in creating useful

database for maintaining the demands of the customers.

 ANNEXURE

ABOUT LR AUTO

Car Enterprises Pvt Ltd. is a local dealership company for Fiat car models in the capital city of

Raipur, Chhattisgarh. It was established in the year 2009 and commenced its operations from

6th march, 2013 for Fiat cars. The company also deals in luxurious Mitsubishi car brand “Pajero

sport‟ as its diversified business. The shareholding of the company is among the family

members of the head of the organization, Mr. Amit Agrawal. The company has its branch in

Bilaspur city and owns a dealership in the city of Korba too.

It deals in all the models of Fiat cars launched by the company. Apart from this, the company

also provides exchange facility for second hand cars to its customers at reasonable prices, thus,

converting the customers of other brands to the consumers of Fiat. It works in collaboration

with various financial institutions like HDF, PNB, SBI, Tata Capital, MFSN, Mahindra and

Mahindra.

LR Auto promotes the theme of “More features more benefits” for its Fiat cars. The company

has a well defined HR policy for all its employees which is a rare feature for an automobile

dealership company. The employees follow the principle of “frugality” for maintain efficiency

in the organization. There is proper dress code assigned to every section of

employees. The staff group consists of 105 people in the organization. Every person is recruited

for their specialized skills. Each person has its own well defines authority and responsibility.

The company follows the model of line and staff for supporting the work culture of the

organization. The approach is flexible with an adequate blend of formal and informal type of

work system. The company has a vertical hierarchy which helps in maintaining a quick reporting

system in the concern. Thus, tasks are completed on time and employees are consequently

appraised. The following figure depicts the organization structure.

Today, automobile sector in India is one of the key sectors of the economy in terms of the

employment. Directly and indirectly it employs more than 10 million people and if we add the

number of people employed in the auto-component and auto ancillary industry then the number

goes even higher. Over a period of more than two decades the Indian Automobile industry has

been driving its own growth through phases. With comparatively higher rate of economic

growth rate index against that of great global powers, India has become a hub of domestic and

exports business. The automobile sector has been contributing its share to the shining economic

performance of India in the recent years.

BIBLIOGRAPHY
Research methodology book by CR Kothari

www.google.com

www.scribd.com

Economic Times

LR Auto brochure

Indian Statistical Organization reports

Indian Statistical Organization reports