Indian Automobile Market
Essay Preview: Indian Automobile Market
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Project Background : BMW is having a luxury and royal brand reputation in Indian automobile market. They have a very good customer satisfaction level. BMW has been leading luxury well car manufacturer in Indian car industry. In the very beginning BMW had a very small market but with the time they have a very good hold in the market with a very good customer faith. Apart from that Mercedes – Benz, Audi, Volkswagen, and jaguar are also giant in the auto mobile market in India. It could be said that they are the main rivals of BMW in Indian market (www.autombileindia.com). BMW started their first service in 2006 in Gurgaon (an Indian metro). They worked with a great potential and as a result BMW has 20 car dealers in various Indian cities. In Indian auto market BMW has quite popular variants such as BMW X series, BMW 5 series, and 525 D etc. The most important and noticeable thing about these brands are their comfortably and luxury look. BMW is quite concerned about the safety and other attractive features such as design interiors etc ( Mohan, 2005). According to the data and survey it is very clear that the Indian automobile sector and a very crucial role in the global and Indian economy. This is the fact that the Indian auto mobile industry provides an employment to more than 6 lakhs persons directly or indirectly in India. It plays an important role to the Indias tax revenue and Indias GDP. In early 1980s Indian auto market had quite few players and they were suffering from low volume production because of lack of technology and other factors. But within 1993 opening of FDI (FOREIGN DIRECT INVESTMENT) programme this sector had a rapid growth because of entering global giants in the market. The research will concentrate on new product launched by BMW for the middle class consumer in the Indian market. BMW is quite expensive in Indian auto mobile company. After proposal company will think about how Indian market would understand the product and will accept it among people.
Literature Review : literature review is a process which comes across the aims and the several aspects of the product such as demand and the target market also the supply f the product. It also highlights the scope of the research carried by the researcher.
According to the Brown and Eisenhardt (1995) covers empirical studies from management discipline. They divide New Product development (NPD) into three streams. Each stream emphasize of different kinds of outcomes. The rational plan stream determines and the focuses on how the financial performance of the product is determined by the choice of an attractive market. Planning about the product development should be unique or well defined and the main focus of the stream is the execution of the plan that should be done by the well coordinate team and the senior management support. The communication web stream is based on how the communication among project team members and outsider influences product performance. And the stream they labelled disciplined problem solving focuses on the effects of the products development team it supplier and the leaders on the product-development process. Basically these streams defined by how the development process is organized, how the work is organized and how and to what extent the participants communicate. (Green, 2007). The new product should clearly define:-
The timing of the marketing launch.
Marketing objectives and goals.
Geographical strategies (whether the launch the new product in local, regional, national, or international).
The target market segments.
The marketing mix. (Havalder, 2010).
It is very essential for the company to be successful to analyse the wider environment carefully in order to look forward to changes and be proactive. The concept of PESTLE will be employed to analyse the different but overlapping and interrelated areas (Vuskane, 2010). Because PESTLE analysis is one of the most useful tool to that helps to understand the picture of Political, Economical, Socio-culture, Technological, Legal and Environmental aspects. PESTLE analysis is concerned with environmental influences on a business.
The Porters five forces is systematic tool for assessing the competitive environment. It enables to organization to determine the attractiveness or profit potential of a particular industry by examining the interaction of five competitive forces. The five forces are (1) Threats of new entrants, (2) Bargaining powers of buyers, (3) bargaining powers of suppliers, (4) threats of substitute products or services,