Sales Promotion in

Automobile Industry

   Sales Promotion in

Automobile Industry

GROUP 6

     Automobile Industry An Introduction

Current low car penetration

Rising prosperity and the increasing affordability 

Cars still a symbol of affluence in India

Focus on mileage, brand and after-sales

Advantage for those who  Forge judicious alliances and resource-sharing agreements Understand importance of green technologies 

   Auto Industry in India

   Factors Considered

   

Financing Options

Exchange offers/InsuranceMaruti Honda Hyundai VW Toyota Tata Mahindra Ford•Alto  800:Rs 10K exchange, •K10:Rs 15K exchange

•Brio: Free Insurance+Rs 10K Loyalty

•Eon: Free insurance+Rs.10Kexchange•Santo:Insurance+10K Loyalty

•Polo:Free Insurance+Rs 10K exchange bonus

•Altis: Insurance+•Rs.15K accessories

•Nano:•Rs.15K exchange bonus

•Xylo, Scorpio:Free Insurance

•Figo:Free Insurance

Maruti Honda VW Toyota Ford•WagonR: HDFC 9.99%•Maximum Loan Amount - 2,50,000 on Alto

•Punjab National Bank : up to 90% of “on road cost”, up to 7 years

•Vento:50% payment & EMI after 11 months

•Liva:6.66% or EMI 7777•Etios:7.49% or EMI 9555

•HDFC Bank - 100% Finance on Ford Figo

Types of Sales Promotions

   

ContestsMaruti Honda Hyundai Tata Mahindra Others

•Test drive Ritz for free home makeover

•Write your i10 story-TVC script

'Spot The New' Contest.spot the new features of all new Hyundai iGen i20

•Guess the feature of the day. win the Vista Quadrajet90 variant. 

•Off-road championship trophy. Mahindra Thar 4×4 AC 

•Nissan:One Winner to be Selected Every Week to be Given 100% Off on New Car Delivery

Types of Sales Promotions

   

Special Gifts/Introductory Offers

Value Addition/Benefits

Maruti VW Toyota Mahindra Ford•Sx4 Celebration Model - 50K + Exchange•Maruti Wagon R Vxi - Sony LCD + Rs. 3K Cash

•VW Vento Highline - Navigation Camera + Bluetooth

•Toyota Liva, Etios - Panasonic Gift Voucher

•E20: Get Subsidy and Exemption benefits of Zero VAT, 15% Subsidy on Basic Price, Upto 50% Waiver on RTO Fees

•Get Assured Coupon Gift:-« LG Fridge« LG Semi Automatic Washing Machine« Sony Mobile Handset

Maruti Honda Hyundai Tata Chevrolet• Alto K10 Lxi, Vxi - Music System + 17K Cash•Wagon R:11 Fully Loaded Accessories worth Rs. 30K:-

•Civic:Package worth 1.5Lac•Accord:Benefits upto 2.6Lac•City: Sunroof Model additional Rs. 5000

•i20:Package worth Rs 25K

•Nano:Rs.25K worth Alloy, Music system , Glove box etc

•Chevy Sail:3 yr  Car, 5 Yr Engine warranty

Types of Sales Promotions

   

Maruti Honda Toyota Tata Mahindra Ford

Diwali:WagonR: Upto 45000 off

•Alto Petrol,CNG:Rs.20000 off

Diwali: 32 Inch LED TV on Brio S Option

• City  - Free Insurance + 4 yrs Complete Warranty + Road Side Assistance + 100% Processing Fees Cash Back 

Navratri:  15Kworth Accessories and Maintenance Smile Pack on Toyota Altis

Christmas: Aria : 1Lac discountNavratri : Manza - 50K Off + Exchange

Diwali : Benefits of upto Rs 54,000 Xylo E series , Rs 39,000 Mahindra Xylo D series 

•Mahindra Scorpio EX EMI of only Rs 9,999 and Mahindra Verito free insurance of up to Rs 20,000.

Year End Offers:

•Ford Figo Petrol - Free Insurance + (Extended Warranty as Loyalty Bonus)

•Ford Classic - Free Insurance + (Extended Warranty as Loyalty Bonus)

Festive Offers

Types of Sales Promotions

   International Promotion

College Grad Program

Buy a new Nissan for less than Dealer cost, PLUS you keep the rebates!

Space Adventures

General motors launched a countrywide promotion in May 2005 , giving away a suborbital flight simulation experience

Other Promotions - International

V-dubs Rock promotion anyone who purchases a 2007 Volkswagen model or select 2006 models will get a custom First Act Garage Master electric guitar 

'Pods Unite' promotion

People who purchases a Volkswagen sedan car get’s a complimentary Apple iPod.

   

Alto 800• Rs. 20,000 Cash Discount, Rs. 10,000 Exchange Bonus•2 Night, 3 Days Holiday Package •Up to 100% Ex-showroom Funding

Swift and Swift DzireNo Discounts or offers

Introduction

Growth

Maturity

Decline

Wagon RDiscounts varying from 15K to 25K

Omni•Limited Edition-minor revisions to the exterior•Some interior frills such as new seat covers

PLC and Sales Promotion

   Trade Promotion

Factory Rebates• Move specific cars.(Spiffs)•To new dealers •To pick up extra inventory

Increasing Dealer’s margin• Done by Maruti Suzuki for petrol cars•To counter the increasing rent of commercial spaces

Discounts for Retailers and Employee•Exercised by Maruti Suzuki and Hyundai India

Special Gifts / merchandizes

   

• Choosing the right target segment• Targeting the product based on their need• Show short term and long term benefits of the promotion• Case of Tata Nano

– Promoted as a poor people’s car– Substitute for a two wheeler– Lack of poor finance 

Month/year Sales Expected Target

July-2010 9000 5500

Nov-2010 509 18000

Challenges

   Success Factors

• Perception of immediate profit making– Exchange offers on Two wheelers for ladies– “Ultimate December Offer”

• Social status upgradation– Corporate discounts and accounts– Offers for executives spouses

• Promoted Nano as a second car for the house

Month/Year Units Sold Last Fiscal

July-2011 3260 50419

July-2012 5485 (+68%) 74527 (+44%)

   Ultimate December Offer

       Month                    Total Sales

Nov-12 62,278

Dec-11 59,981            Offer month 71,700

   Competition

HONDA GENERAL MOTORS

TATA MOTORS HYUNDAI MARUTI

Summer Sale added to competition

“3 and Easy”- Interest free finance package

“Ultimate December Offer”

Zero interest for a fixed period upto 7 years

Rebates and free accessories

Limited period buy to win attractive  and assured gifts

   Study on Rural Markets-Namakkal. Tamil Nadu

   

•Strong and sound rural marketing strategy

• ‘Ghar Ghar Mein Maruti’ and ‘Mera Sapna Meri Maruti’ campaigns

• 3,000 local villagers nominated as Resident dealer sales executives 

•Supported by over 186 extension counters

•Influence the opinion leaders of the village (like Sarpanch) by taking them for factory visits

•Deployed promotions varying from easy finance to gold coins

•The film depicting the need of car in a village•Villagers are not allowed to leave without a brand recall mechanism.•Various financing option and explained in an interactive TV commercial •Banking facilities are more accessible to villagers with on the spot booking 

Rural Focus-Maruti

Methodology

Video on Wheels Campaign

   

•Orange farmers in Nagpur•Turmeric growers in Tiruchengode, Tamil Nadu•Granite polishers in Hyderabad•Blue pottery makers in Jaipur•Madhubani painters in Madhubani, Bihar•Potato growers in West Bengal•Apple and fruit growers in Himachal Pradesh•Fishermen in Howrah•Alphonso mango growers in Ratnagiri

 •The rural market share of Maruti increased from 3.5 percent of total sales five years ago to 26 percent in 2012.

• Alto clinched 36 percent of rural sales in 2011, Omni hit 13.6 percent and the Wagon R accounted for 12 percent rural sales

Rural Focus-Maruti

These are not farmers struggling to make a livelihood. These are well settled villagers who have the 

purchasing power to buy a car for their daily needs

Targeting

Results

   Survey Results

Model Preference

   

Media

Survey Results

   Survey Results

   

• Customers under the age of 40 yrs• Car and racing enthusiast • Change brand perceptions • Increase favourable opinion • Increase demand for the vehicle• More trials and enquiry

Suggested Sales Promotion

Online rally

Focus

• Engaging prospect in a online rally game • They will be rewarded will merchandizes and finally a new car

E.g. Ford Ecosport

   

Thank YOU