Market segmentation & Positioning - effect on company performance
- 1. EFFECT OF MARKET SEGMENTATION & POSITIONING ON COMPANY PERFORMANCE
- 2. Objective To understand the practical process of segmentation Positioning of product & brand Effect of segmentation & positioning on company performance.
- 3. Brief Definitions Market : A set up where two or more parties engage in exchange of goods, services and information is called a market Segmentation: Segmentation refers to a process of bifurcating or dividing a large unit into various small units which have more or less similar or related characteristics. Positioning :The process of creating an image of a product in the minds of the consumers is called as positioning.
- 4. Methodology Understand the need Identify the target audience Identify market expectation Prepare marketing strategy Define the segment SWOT analysis Channelize Marketing Mix Positioning plan Evaluation
- 5. Background 49099 73772 103458 101919 66755 50813 79554 179392 13427 19435 29669 24910 19108 13357 26230 59358 27.3% 26.3% 28.7% 24.4% 28.6% 26.3% 33.0% 33.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 0 20000 40000 60000 80000 100000 120000 140000 160000 180000 200000 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 MAV Market Overview TIV AL MS%
- 6. Background 61% 61% 62% 63% 59% 63% 64% 18% 11% 14% 17% 17% 17% 16% 20% 23% 28% 25% 21% 20% 24% 22% 16% 59% 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 4×2 Tractors MAV • Implementation of Hub-Spoke model of distribution has led to increase in demand of higher capacity rigid trucks (MAV). • Higher scope of volume gain.
- 7. Business Challenges Higher Operating cost Increasing Diesel Prices Stagnant freight rates Increasing interest rates Progressive increase in vehicle acquisition cost Diesel adulteration Non availability of skilled drivers
- 8. Ownership Experience Lower Cost of Ownership Higher Reliability Higher Durability Better Ride Comfort Fuel economy Better Tyre Life Better NVH Characteristics Higher Engine and Driveline aggregates Life No Premature failures Service and spares Key Buying Factors
- 9. Segmentation in Truck Industry Tractor Unit Axle configuration 4X2Tractor 6X4 Tractor Axle Configurations 4X2 Rigid 6X2 Rigid 8X2 Rigid 6X4 Tipper 8X4 Tipper Gross Vehicle weight LCV ICV M&HCV End Use Truck Bus
- 10. 5% 60% 5% 30% Market Load Rated load - Return empty Rated load - Both sides Over load- Return empty Over load - Both sides 80% 20% Tanker Rated load - Return empty Rated load - Both sides Over load- Return empty Over load - Both sides 60% 25% 15% Payload characteristics 22 T 22-30 T 30-36 T 80% 15% 5% Road condition Road condition Good road Bad road Off road - Average speed of the vehicle is 45-50 kmph - Average running kms/day - 300-400 Application analysis
- 11. Configuration designing Existing 8X2 rigid truck configuration Proposed 10X2 Configuration
- 12. SWOT Analysis Strength: 70 years of experience in domestic market 2nd largest commercial vehicle manufacturer in India. Known for technological superiority & ruggedness. Own R&D center Strong manufacturing capabilities Weakness: Solely dependent on domestic market as more than 85% revenue generate from domestic market Insufficient network No global tie up for technology sharing
- 13. SWOT Analysis Opportunity: Increasing demand in high capacity vehicles Govt. regulation for rated load operation Growing needs of automobile industry Make in Indian initiative increases opportunity for export business Threats: Increasing competition day by day Volatile economic condition of the country Fast changing pollution & safety norms by govt.
- 14. Target Customer Big fleet owners Bulk material transporter who operates in long haul Existing Tractor-Trailer customers Union leaders & influencers.
- 15. Cement Market Load Tanker Construction Ores & Minerals Target Application
- 16. Deciding Marketing Mix Product : 37T rigid 5 axle truck with balanced lift axle to become more resilient Fitted with Proven “H” series engine with 180 HP, known for higher durability & best-in-class performance 9S ZF gear box. ZF is known for its reliability & performance. Best in class engine power to weight ratio Loading span of 29.5ft which is suitable for Indian road condition & major targeted application.
- 17. Deciding Marketing Mix Price : MPR kept at par with main rival Tata Motors. As introductory offer, vehicle offered at 75K lower than the operating price of Tata Motors. Place : Focused on new network & channel partners Rapid network expansion from 1114 nos during FY14 to 2678 nos at FY17. Concept like “Workshop On Wheels” introduced. Improvement on overall branding of network & promotional material done.
- 18. Deciding Marketing Mix Place: Glimpses of updated network & WOW : YOY network expansion pan India : 1114 1289 1462 267825 26.9 31 33 0 5 10 15 20 25 30 35 0 500 1000 1500 2000 2500 3000 FY14 FY15 FY16 FY17 Network MS
- 19. Deciding Marketing Mix Promotion : “Mahendra Singh Dhoni” as a brand ambassador has been appointed - https://youtu.be/MYypcqdPDhM TVC, print media, spot advertisement to improve visibility & public relation Both ATL & BTL level activities has been adopted for awareness Social media like Facebook, Tweeter, You tube has been utilized for promotion of brand by sharing updated news & related videos. Glimpses of BTL activities:
- 20. Positioning Brand : Changed brand slogan from “ Engineering Your Tomorrows” to “ Aapki Jeet. Hamari Jeet.” Used Hindi phrase to relate it to most of the stake holders Changed brand perception from “product oriented” to “customer oriented”. TV commercial “Lassi” featured by Mahendra Singh Dhoni, deliberately showcased the importance of all stake holders related to transport industry & acknowledged their contribution. It helped organization to reposition them from “South Indian” company to an “Indian Company”
- 21. Positioning Product : Positioned 3718 as “India’s only 5 Axle truck with balanced lift axle” Best-in-class payload capacity of 25 ton; more load at a trip will earn Best-in-Industry warranty package of 3 years/ 3 lakhs KM. Loading Span of 29.5ft & 27.5 ft best fit for Indian road condition & easy to weigh at major weigh bridges.
- 22. USPs Compact 27.5’ & 29.5’ Loading span for Better Maneuverability Ashok Leyland 3718 10x2 Configuration – Lesser frictional losses - Kmpl advantage Balanced Lift axle for better stability & tyre life Inline FIP – Service friendly 180 HP – Better Fuel efficiency
- 23. Best in class Payload upto 25 Ton. Reduced cost per TON KM (Payload x Kms). Increased TON KMPL Maintenance & tyre cost at par with 31T. Value to customers
- 24. Digital after-market solution A telematics product to track location, performance & health of vehicle. Connects customer with Leyland- Trained local mechanics Diagnostics device to find error code of vehicle First-of-its-kind in commercial vehicle industry Offer round the clock availability of genuine spares at door steps.
- 25. Conclusion 23621 28561 47398 48037 55128 7449 10038 25585 24974 31067 1323 2392 5319 6177 7931 18% 24% 21% 25% 26% 32% 35% 54% 52% 56% 0% 10% 20% 30% 40% 50% 60% 0 10000 20000 30000 40000 50000 60000 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 Total TIV MAV TIV AL MAV AL MAV MS MAV growth Performance of A Zone : • During last 5 years higher capacity vehicle share has increased to 56% of total Industry volume from 32%. • Ashok Leyland’s MAV MS grow from 18% to 26% after introduction of 37T truck.
- 26. Conclusion 610 6450 389120 1003 200 20% 16% 51% 0% 20% 40% 60% 0 2000 4000 6000 8000 6X2 8X2 10X2 FY13-14 TIV AL MS 702 8733 603190 1900 302 27% 22% 50% 0% 20% 40% 60% 0 5000 10000 6X2 8X2 10X2 FY14-15 TIV AL MS Segment growth: 1023 21491 3071 210 3809 1300 21% 18% 42% 0% 10% 20% 30% 40% 50% 0 5000 10000 15000 20000 25000 6X2 8X2 10X2 FY15-16 TIV AL MS 499 21228 3247 150 4700 1327 30% 22% 41% 0% 10% 20% 30% 40% 50% 0 5000 10000 15000 20000 25000 6X2 8X2 10X2 FY16-17 TIV AL MS
- 27. Conclusion 777 21436 8854 231 3700 4000 30% 17% 45% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0 5000 10000 15000 20000 25000 6X2 8X2 10X2 FY17-18 TIV AL MS • During last 5 years 37T volume has grown significantly • It has added to companies total volume • It contributes to the major revenue generation for the organization. • Has been dominant player in 10X2 segment with 45% Segment MS. • Ashok Leyland has sold total 100,000 vehicles during FY17- 18 where major contribution was 10X2 segment. • Total revenue generated Rs.2419904.00 in FY17-18.
- 28. Awards & Recognition During FY 16-17, 3718 has won “Best HCV RIGID TRUCK of the year” by Apollo CV awards. In FY 17-18, 3718 has been awarded “TRUCK OF THE YEAR” by Flywheel.