final 4 wheeler 1

A

← PROJECT REPORT

← ON

← “MARKETING

RESEARCH FOR IGNITE CAR”.

←

← SUBMITTED TO: Mrs.

Shailaja Manocha

←

←

←

← 2008-2010

←

←

←

←

←

←

←

← SUBMITTED

← BY

←← Abhishek Raj(1B)

←← Amandeep Kaur(3B)

←← Amber Saxena(4B)

←← Chirag chopra(14B)

←← Kumar Abhishek(24B)

←← Naveen Kumar(28B)

←← Subhashish Dutta(45B)

←← Sanjib Mahapatra(6A-

RBA)

←←

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QuickTime™ and a decompressorare needed to see this picture.

STUDENT DECLARATION

We here by declare that the project report entitled “MARKETING RESEARCH

FOR RIPPLE CAR”. Submitted in partial fulfillment of the requirements for the

Post Graduate Program Business Mangement is our original work and not

submitted for the award of any degree, diploma, fellowship, or any other

similar title or prizes.

PLACE: NEW DELHI

DATE:

2

ACKNOWLEDGEMENT

We are sincerely thankful to Mrs. Shailaja Manocha (Faculty of Marketing Management) for guiding us throughout the project. This Research work that she gave, helped us to understand how things are done in real world and we have learnt a lot from this fieldwork.

We would also like to thank all the people who filled the questionnaires through which we got essential data, which helped us .

Last but not the least we would like to thank each and everybody who supported us and gave us his or her valuable suggestion for the completion of this project.

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Table of contents

Serial no Title Page No

1. Executive summary 5

2. Introduction 6

3. Objective of survey 11

4. Research methodology 12

5. Analysis 14

6. Finding 28

7. Conclusion 29

8. Questionnaire 30

9. Excel sheet 32

10. Bibliography 33

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EXECUTIVE SUMMARY

Pebble is launching a new low-cost car, the Ripple, in Indian markets. We will compete with existing companies by offering a vehicle with better amenities while keeping the price affordable. We are targeting the rapidly growing middle class customers who desire a slightly better low-cost car as well as businesses who desire to add low-cost cars to their current fleets.

Our main objective is to capture between 6-7% of the Indian market share with first year sales of 100,000 cars. Our financial objective is to achieve $700 million in revenue the first year and to keep losses at less than $150 million. We foresee breaking even midway through our second year of production.

PEBBLE is a pioneer automobile company in India, which has already introduced many 4 wheelers and now it is introducing a new car, which does not require any conventional energy source, which is a great innovation in technological world. Pebble got this name from the vision that a small pebble can generate big waves in the world of technology and innovation similar to a pebble thrown in a sea or any source of water.

The car name is ripple because this is the first wave of technological innovation generated by pebble.

PEBBLE will launch its first car in India as a pilot car after that it will expand its business in all over world.

Keys to Success

Precisely good technological automobiles.

Follow through on all commitments, both to vendors and customers.

Strict financial controls.

Mission

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It is Pebble’s mission to create the finest quality automobiles in the market. It will emphasize good quality, comfort and a realistic safety margin for all of our products.

SITUATIONAL ANALYSIS

Pebble was founded 1 year ago by five business partners with automotive

industry experience. They are about to enter the exciting low-cost car market

in India, where competition is starting to heat up.

The size and buying power of the Indian middle class is rapidly increasing,

but price still remains the main driver when purchasing a vehicle.

Approximately 1.5 million new small cars are sold in India each year and Tata,

India’s leading vehicle maker, is looking to capture a sizable chunk of that

market with their recent introduction of the Tata Nano . . . a sub-compact car

costing only $2,500.

To position ourselves successfully in this market, Pebble is targeting

customers who may want a low-cost car that is a notch above the Tata Nano.

We also plan to offer optional features that are highly valued by potential

customers.

MARKET SUMMARY

Pebble market consists of customers who are looking for a low-cost car but

want something a little better than what the price leader offers. It also

consists of customers looking for options that allow them to customize their

vehicle to some degree. In addition, we will be marketing to businesses

looking to add low-cost cars to their fleets and concentrating on filling all

orders in a timely manner.

Low-cost car customers currently have very little to choose from as far as

options go. We will offer our customers the standard options for low-cost cars

(color, A/C, etc.), but intend to differentiate ourselves by offering options

above and beyond the norm options such as sunroofs, air bags and MP3

players.

6

TARGET SEGMENT CUSTOMER NEED BENEFIT

Middle

Class

family

Safety

Space

economic

Airbags, tubeless

tires

Seating for 5,

large trunk space

Bachelors To be in style

High milage

Economic

Spoiler, sunroof,

multiple color

schemes

MP3 player

Business Safety

Desirable Rental

Car

Fuel Efficient

Airbags, tubeless

tires

Spoiler, sunroof

High kpl, LPG,

CNG options

SWOT ANALYSIS

STRENGTHS

1.Multiple options

2.Innovative design

3.Extensive customer support

WEAKNESSES

1.Lack of brand awareness

2.Lack of foreign market

OPPORTUNITIES

1.Increasing demand for low-cost cars

2.Economy and the price of oil

THREATS

1.Increased competition

2.Chinese manufacturers

COMPETITION

Even though gas prices have dropped lately, the fact is the world is looking for

alternative fuels and the market is wanting to find more efficient ways to travel.

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Getting a smaller car is one option, because smaller cars are more efficient

than big ones. In fact, the future of the automobile may be the small car.

Main competitors are:

TATA NANO

MARUTI

HYUNDAI SANTRO

PRODUCT OFFERINGS

Pebble offers following standard features in Ripple:

Child safety rear door lock

system

Power locks

Overhead lamp

Front and rear speakers

Ashtray

A/C

Heater

Power steering

Power windows

Remote fuel door opener

Remote trunk opener

Rear double folding seat

Front air bags

Choice of standard paint

schemes

Cell phone charger

Tubeless tires

Seating for 5 people

Large trunk space

Options include:

Sun roof

Sport paint scheme

MP3 player

Satellite Radio

Spoiler

Premium wheel

Premium speakers

LPG/CNG kits

OBJECTIVE:

Our main objective is to capture between 6 and 7% of the Indian market share

with first year sales of 100,000 cars. Our financial objective is to achieve

$700 million in revenue the first year and to keep losses at less than $150

million. We foresee breaking even midway through our second year of

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production.

In our second or third year, our objective will then be to enter the Foreign

markets if we succeed. With current safety, fuel efficiency and emissions

standards, we would try to upgrades with additional air-bags, side-impact

beams, catalytic convertors and better fuel efficiency which would add $1000

to the cost of the vehicle.

Our main marketing objective is to focus on the customers' wants and needs

and, at the same time, offer a variety of options that some customers may

want. This will allow us to effectively influence and persuade the customer to

purchase from us. The reason we decided to launch a low-cost car is the fact

that entire families, sometimes four people, would ride on a bike together.

The Indian market is rapidly changing to where people can afford a car and

spend time together. It virtually frees them from a world of overcrowded

trains, precarious rickshaws, taxis they can’t afford and packed buses.

We want to provide a “Car 4 All”, which is affordable and meet safety

requirements, emission norms and fuel efficiency standards. Every person

who has a desire for a vehicle will look to Ripple to fulfill this need.

TARGET MARKETS:

The low-cost car is clearly intended for the masses. It is huge market for the

first-time car buyer in India despite the increasing number of cars in the urban

and semi-urban areas.

Primary Consumer Market: Our primary target market is the 4-person family

who cannot afford a car today. We foresee a large rural demand for this car –

i.e. a whole new market will be opened and a productivity and lifestyle

improvement will be created that will benefit the Indian economy and

ultimately the global economy.

Secondary Consumer Market: Our secondary target market is consumer who

may have already purchased their first car and is looking for a similar low-cost

car that they can add more features in order to make it the car of their choice.

Primary Business Market: Our primary business market consists of the many

rental car companies in India. It has various standard safety options along

with its attractive styling, which make it appealing as a rental car.

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← SEGMENTATION ←← 1.BACHELORS

←← Geographic Segmentation← Region: - India← Density: - Urban, Semi-urban← Demographic segmentation← Age: - 22yrs+← Income: - Rs25000+←← Psychographic Segmentation← Life style-outdoor oriented←← Behavioral Segmentation

← Occasions-Regular← Benefit: - milage, stylish,Economic←← 2.FAMILY← Geographic Segmentation← Region: - India← Density: - Urban, Semi-urban← Demographic segmentation← Income: - middle, upper middle← Family: Full nest1,2,3

SEC-A1, A2, B1,B2,C← Psychographic Segmentation← Life style-outdoor oriented←← Behavioral SegmentationOccasions-Regular← Benefit: - Quality,safety,spacious and economic←← 3.BUSINESS

← Geographic Segmentation← Region: - India← Density: - Urban, Semi-urban← Demographic segmentation← Income: - middle← Psychographic Segmentation← SEC-A1,A2,B1,B2,c←← Behavioral Segmentation

← Benefit: - Economic ,Fuel- efficient

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POSITIONING:

When you hear about the RIPPLE, the obvious temptation is to assume

something like “Cheap Thrill”, but we would like to position it as a “Car 4 All”.

So, this car can be the fulfillment of a dream of all great Indian classes.

Though it is cheap, it is no less than a Ferrari for the people who will buy it,

because it gives them membership to a exclusive club.

The Ripple seems as smart, hi-tech and intelligent.

It isn’t just about a car, but about a way of life i.e. a greater friendliness with

the environment around us, less emissions, more space, clean, simple

design .So it is environment friendly car.It has benefit positioning.

PRODUCT LEVELS:

Core benefit: TransportationBasic product: a small car Expected product: a car with good quality ,service, stylish, milage and economicAugmented product: hybrid car with double coil dynamo.

CUSTOMER PERCEIVED VALUE

Total customer benefit- Total customer cost-Product benefit-H Monetary cost-LService benefit-M Time cost-MPersonnel benefit-H Energy cost-MImage benefit-M Psychological cost-M

CPV>1

STRATEGIES:

4 P’s

PRODUCT

The Ripple will be sold with a 160,000 km warranty. We will introduce

additional models in our third year of operation after we have raised

awareness of our brand and streamlined the manufacturing process.

PRICING

The Ripple will be priced at an average of Rs.2.5 Lacs per car. We intend

to make the Ripple our cheapest model so that when we expand our line of

cars.We feel that this price will be best to afford for such good features.We

use value pricing.

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DISTRIBUTION:

We plan to set up private dealerships throughout the market (at least one in

each district area). These dealerships would be given a 4-5% commission on

sales and be responsible for all maintenance service.

We also plan to set up an extensive web site where customers can design

their own Ripple and give an order so that they can take in to the nearest

dealership.

1-level channel

MARKETING COMMUNICATIONS:

We will use various methods of communication to differentiate our product

from our competitors. We plan to use billboards and a word-of-mouth

campaign before we begin production to generate buzz. Also pre-production,

we will host a contest on our website to see who can build the best Ripple.

We plan on using the media partner advertising agency to help us in

designing magazine and internet ads that convey the value and uniqueness

of the Ripple.

ACTION PROGRAMS:

The Ripple will be launched in July of 2010. Our first six months of action

programs in 2010 follows:

April – We will launch a billboard campaign that will signal the arrival of a new

vehicle without giving any of the details away. We will also launch a word-of-

mouth campaign on several highly used automotive blogs. These strategies

will help create buzz before we begin production.

May – We will attend auto trade shows and unveil the Ripple at the largest

venue possible.

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CUSTOMERCUSTOMER

DEALERDEALER

MANUFACTURERMANUFACTURER

June – We will begin our advertising campaign on newspapers, magazines

and online. We will host a “Lets Build The Best Ripple” contest on our

website. We will also distribute displays and signage to our dealerships.

July: We will roll out Ripple to our dealerships for retail sale. We will distribute

customer satisfaction surveys after every sale.

August – We will set up booths and sponsor contests all over India that will

encourage tto compete for the most sales.

August – We will work with the media agency to develop new advertisements

that will refresh our advertising campaign. We will analyze results from the

customer satisfaction surveys and make necessary adjustment.

MARKET RESEARCH:

RESEARCH METHODOLOGY

To carry out this research study the following methodologies have been adopted:

The study is based on both primary research and secondary research considering the type and nature of data required for the study.

PRIMARY RESEARCH

To carry out a Primary research (manual research) the following have been carried out.

QUANTATIVE RESEARCH

To collect the primary data from various targets segment, a set of questionnaire have been developed.

Before carrying out a comprehensive quantitative research, a pilot survey for testing of all type of questionnaire have been carried out.

After successful of pilot survey, a comprehensive manual survey has been carried out in all desired location. A set of all type of questionnaire is enclosed as Annexure.

SELECTION OF SAMPLE

To select the right respondent in each category, a purposive stratified random sampling method have been used.

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←SECONDARY RESEARCH←← To carry out secondary research, a number of website related to automobile has been included. The main website are←← World Tourism Organization← World Travel and Tourism Council← Incredible India.com ←← SAMPLE SIZE←← The total number of sample size is 30 based on random stratified sampling.←←← ← FINANCIAL PROJECTIONS:←← We are projecting an average price of $7,000 per car with a sales volume of 100,000 cars resulting in first year revenues of $700 million. Projected variable cost per unit is $5,000 and we are anticipating a first year loss of less than $150 million.← With $300 million in first year fixed costs, our analysis indicates that we will break even midway through our second year of production when we achieve 150,000 in sales volume.←← $300,000,000← ------------------- = 150,000 units← $7,000 - $5,000←← CONTROLS AND IMPLEMENTATION←← We have developed routine audits that will monitor product quality at our production facilities as well as surveys to measure customer satisfaction. We have also put together a reporting system that will be placed at maintenance facilities that will track maintenance issues with our vehicles. In addition to these monitoring tools, we will closely track monthly sales and expenses, being mindful of any deviation from the plan and taking appropriate corrective action.←←←←←←←←←

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ANALYSIS

Q1. Do you want to buy a car?

(1) Yes (2) No

100%

0%0%

20%

40%

60%

80%

100%

120%

Yes No

Finding: 100% respondents said they want to buy a car.

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Q2. What is the price range for your new car? (In lakh) (1) 1.5-2.0 (2) 2.0-3.0 (3) 3.0-4.0 (4) 4.0-5.0 (5) Any other

6.67%

40.00%

36.67%

16.67%

0%0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

Finding: Most of people said 2-3 lakhs is the price range of new car.

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Q3. Rate the factors you consider before buying a car according to their importance.

Price of the car

(1) Extremely unimportant(2) Not important(3) Average(4) Important(5) Extremely important

13.33%

20.00% 20.00% 20.00%

23.33%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Extremely unimportant

No important

AverageImportant

Extremply important

Finding: Most of people said before buying a car Price of the car is extremely important

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Q4. Rate the factors you consider before buying a car according to their importance

Brand value of company

(1) Extremely unimportant(2) Not important(3) Average(3) Important(4) Extremely important

0.00% 0.00%

10.00%

36.67%

53.33%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%


No important

AverageImportant

Extremply important

Findings: Most of people said before buying a car brand value of companyis extremely important

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Styling and design (1) Extremely unimportant (2) Not important (3) Average

(4) Important (5) Extremely important

6.67%

23.33%

20.00%

26.67%

23.33%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%


No important

AverageImportant

Extremply important

Findings: Most of people said before buying a car Styling and designis important not extremely important.

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Q6. Rate the factors you consider before buying a car according to their importance.

Family needs (1) Extremely unimportant (2) Not important (3) Average


6.67%10.00% 10.00%

46.67%

26.67%

0.00%

5.00%

10.00%15.00%

20.00%

25.00%

30.00%35.00%40.00%

45.00%

50.00%


No important

AverageImportant

Extremply important

Findings: Most of people said before buying a car family needis important. It means before buying a car they consider also family.

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Functional specification (1) Extremely unimportant (2) Not important (3) Average


6.67%

23.33%

20.00%

26.67%

23.33%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%


No important

AverageImportant

Extremply important

Findings: Most of people said before buying a car function of caris important .

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Fuel efficiency (1) Extremely unimportant (2) Not important (3) Average (4) Important (5) Extremely important

0.00% 0.00%

10.00%

30.00%

60.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%


No important

AverageImportant

Extremply important

Findings: Most of people said before buying a car Fuel efficiencyis extremely important .

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After sales services

(1) Extremely unimportant (2) Not important (3) Average (4) Important (5) Extremely important

13.33%

20.00%23.33%

30.00%

13.33%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%


No important

AverageImportant

Extremply important

Findings: Most of people said before buying a car after sales servicesis important .

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Availability of spare parts

(1) Extremely unimportant (2) Not important (3) Average (4) Important (5) Extremely important

3.33%

10.00%

23.33%

53.33%

10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%


No important

AverageImportant

Extremply important

Findings: Most of people said before buying a car availability of spare partsis important.

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Resale value (1) Extremely unimportant (2) Not important (3) Average (4) Important (5) Extremely important

100%

0%0%

20%

40%

60%

80%

100%

120%

Yes No

Findings: Most of people said before buying a car resale valueis important.

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Q13. Would you like to buy a new car that can run without fuel? (1) Yes (2) No

100%

0%0%

20%

40%

60%

80%

100%

120%

Yes No

Finding: 100% respondents agree to buy a new car that can run without fuel.

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Q14. To what extent do you think this car is more competitive than other car? (1) Low competitive (2) Highly competitive

0%

100.00%

0%

20%

40%

60%

80%

100%

120%

Low competitive High competitive

Finding: 100% respondents said this car is more competitive than other car.

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FINDING

Price of the car is very important.

Brand value is what people look before buying a car.

Family need is very important for people who are going to buy lower

segment car.

Fuel efficiency is utmost important for people in current economy scenario.

Availability of spare parts and after sale service is also important.

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CONCLUSION

People are more interested in buying cars which give the mileage fulfill their family needs has a good service network and is both fuel and cost efficient at the same time thus fulfilling the needs of a family of middle tier.

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Questionnaire

Questionnaire (TG: General Public)

INTRODUCTION: Good Morning/Afternoon/Evening. I am a Student of EMPI Business School. As a part of my course curriculum. I am carrying out a research project. The topic that I have chosen for research "Marketing research for Ripple car”. Your response will help me carry out the research project successfully. I would like to mention that your responses would be used together with responses from several other people like you. Can I speak to you for 10 minutes?

Name of the respondent

Contact No:

Email id

1. Do you want to buy a car?

(1) Yes (2) No

2. What is the price range for your new car? (in lakh) (1) 1.5-2.0 (2) 2.0-3.0 (3) 3.0-4.0 (4) 4.0-5.0 (5) Any other

Rate the factors you consider before buying a car according to their importance.Extremely unimportant

Not important

Not important

Not important

Extremely important

3. Price of the car4. Brand value of company5. Styling and

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design6. Family needs7.Functional specification8. Fuel efficiency9. After sales services10.Availability of spare parts11. Resale value 12. Any other factor that you consider important:

13. Would you like to buy a new car that can run without fuel? (1)Yes (2) No

14. To what extent do you think this car is more competitive then other car? Low competitive 1 2 3 4 5 Highly competitive

15. How useful do you think this car will be? _____________________________________________________________

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EXCEL SHEET

S.NO. Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q13 Q141 1 2 4 5 4 4 1 2 1 1 4 1 22 1 3 5 5 5 4 4 3 4 5 5 1 23 1 2 4 5 2 3 4 2 4 3 5 1 24 1 2 4 5 2 3 4 2 4 4 5 1 25 1 2 2 5 4 3 5 2 5 5 5 1 26 1 2 2 5 4 4 5 1 4 4 2 1 27 1 3 2 4 4 5 5 1 5 4 5 1 28 1 4 2 5 5 5 5 1 4 4 4 1 29 1 3 2 4 3 5 5 1 3 4 3 1 210 1 3 1 5 5 4 5 1 3 4 3 1 211 1 4 1 5 5 1 5 2 2 2 4 1 212 1 3 2 4 2 2 4 2 2 3 3 1 213 1 4 1 5 2 5 5 1 2 2 4 1 214 1 2 4 4 4 5 5 3 3 3 5 1 215 1 2 5 4 4 4 4 3 4 4 4 1 2

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BIBLIOGRAPHY

www.google.com automobile sites

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http://www.google.com/