Pawan Chabra finds out what the auto giants are really up to
“Hopefully, this season will prove a lot better, as there was hardly anything to celebrate about in the last festive season. At least for us, business was very dull,” says Sumit Desai, an auto-dealer in the capital. This thought signifies the common sentiment that is currently floating around in the country, for festive seasons are times when you anticipate and expect better tidings. In fact, on the back of the collapse of Lehman Brothers and the stranglehold on financial schemes by all national banks, almost all the auto companies have experienced a fall in sales figures during the year gone by, a time frame most dealers would want to wipe out from their memories. However, this festive season, the automotive companies are leaving no stone unturned to ensure a healthy growth rate. Interestingly, they have gone a step beyond, offering cash discounts, maintenance packages and even gold to the consumers and have rather become more innovative in their marketing efforts. In fact, some companies are waiving off taxes up to 40% for the consumers, if their booking date falls on or before September 30, 2009. While in one particular print ad, it is clearly mentioned that Toyota Kirloskar Motors has decided to ‘raise’ prices beyond September 30, 2009, in another one by GM (for the Chevrolet brand), it is announced that the end date of the Navratra Gold Utsav is September 30, 2009. Of course, the reality is that the festival season has just started, but automakers are scuttling to garner as much as they can from the market, in an attempt to exploit all forms of above-the-line marketing vehicles to the hilt.
And the efforts are evidently paying rich returns. In Gujarat, the demand for two-wheelers and four-wheelers has surpassed the supply levels. Similar is the story in other parts of the country. Going forward, the dealers are expecting further growth in the sales units. Notwithstanding that, this time, ‘festive discounts’ have actually not been used as the prime attraction to lure the target audience. There have been a slew of launches in both the two-wheeler (Yamaha’s V-Max & Limited Fazer, Hero Honda’s Karizma ZMR, Bajaj Discover 100cc, et al) and passenger car manufacturers (like Ford’s new Endeavour, Mercedes’ E-Class Sports, Maruti’s Estilo, et al). Then there are some marketers who opt for alternate means to attract minds, instead of the humdrum ‘lowered prices’ bait; one such is the use of aggressive marketing campaigns. To bring one such case to notice, BMW has organised a BMW Expo in its exclusive dealer outlets, for its prospective consumers, wherein all current BMW models have been made available for a test drive. A spokesperson from BMW explains the logic behind such an initiative: “It’s better to offer the consumer a test drive than offer a cash discount. More importantly, in the segment that we are operating in, cash discounts hardly help attract more consumers,” explains BMW’s spokesperson.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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“Hopefully, this season will prove a lot better, as there was hardly anything to celebrate about in the last festive season. At least for us, business was very dull,” says Sumit Desai, an auto-dealer in the capital. This thought signifies the common sentiment that is currently floating around in the country, for festive seasons are times when you anticipate and expect better tidings. In fact, on the back of the collapse of Lehman Brothers and the stranglehold on financial schemes by all national banks, almost all the auto companies have experienced a fall in sales figures during the year gone by, a time frame most dealers would want to wipe out from their memories. However, this festive season, the automotive companies are leaving no stone unturned to ensure a healthy growth rate. Interestingly, they have gone a step beyond, offering cash discounts, maintenance packages and even gold to the consumers and have rather become more innovative in their marketing efforts. In fact, some companies are waiving off taxes up to 40% for the consumers, if their booking date falls on or before September 30, 2009. While in one particular print ad, it is clearly mentioned that Toyota Kirloskar Motors has decided to ‘raise’ prices beyond September 30, 2009, in another one by GM (for the Chevrolet brand), it is announced that the end date of the Navratra Gold Utsav is September 30, 2009. Of course, the reality is that the festival season has just started, but automakers are scuttling to garner as much as they can from the market, in an attempt to exploit all forms of above-the-line marketing vehicles to the hilt.
And the efforts are evidently paying rich returns. In Gujarat, the demand for two-wheelers and four-wheelers has surpassed the supply levels. Similar is the story in other parts of the country. Going forward, the dealers are expecting further growth in the sales units. Notwithstanding that, this time, ‘festive discounts’ have actually not been used as the prime attraction to lure the target audience. There have been a slew of launches in both the two-wheeler (Yamaha’s V-Max & Limited Fazer, Hero Honda’s Karizma ZMR, Bajaj Discover 100cc, et al) and passenger car manufacturers (like Ford’s new Endeavour, Mercedes’ E-Class Sports, Maruti’s Estilo, et al). Then there are some marketers who opt for alternate means to attract minds, instead of the humdrum ‘lowered prices’ bait; one such is the use of aggressive marketing campaigns. To bring one such case to notice, BMW has organised a BMW Expo in its exclusive dealer outlets, for its prospective consumers, wherein all current BMW models have been made available for a test drive. A spokesperson from BMW explains the logic behind such an initiative: “It’s better to offer the consumer a test drive than offer a cash discount. More importantly, in the segment that we are operating in, cash discounts hardly help attract more consumers,” explains BMW’s spokesperson.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
“We will change your outlook” - The Sunday Indian on B-SCHOOL RANKING SCAMSTERS EXPOSED! A must read...For Exclusive Footage by Sunday Indian Click Here
Business Standard Exposes the Outlook Magazine Money Editor
Don't trust the Indian Media!
IIPM ISBE Programmes
Follow Arindam Chaudhuri on Twitter
IIPM B School on Twitter
Management guru Arindam Chaudhuri’s latest blockbuster book, Discover The Diamond In You
IIPM - Admission Procedure
IIPM, GURGAON
IIPM 3-year full-time Integrated (MBA BBA) Programme
IIPM 2-year full time Programme (leading to the award of the MBA degree from IMI)
B-schools expect higher rate of campus placements this year
IIPM B School : King Khan, Bollywood Badshah and Quiz Wiz — that’s Shah Rukh Khan for you
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