When any new product is shaped, the presence of a sound marketing strategy becomes as

vital as the product itself. The state of affairs becomes even more crucial when the brand
has been around for almost 50 years and is considered an icon of the Indian Automotive
Industry.

The product in consideration is Hindustan Motors AMBASSADOR.

The Legacy of Ambassador:

Ambassador was the first Indian car. It has a British legacy as it owes its design and
technology to a British car model - Morris Oxford. Hindustan Motors launched the Indian
version of Morris Oxford as Ambassador in 1958.

From its launch, up to the 1980’s, Ambassador had retained the position of numero uno. In
fact, in those years, the auto industry was dominated by only two cars - Premier Padmini
and Ambassador.

The decline of the Ambassador’s golden period started when Maruti launched the Maruti
800 in the early 1980’s. Gradually, it lost its leadership position to Maruti 800 especially in
the private car buyers segment.
It still had a substantial market share to engage with. The Ambassador had some
advantages which made it desirable to certain segments of the society.

 For a long period, it was the only Indian car attainable to the common man, with
the option of Diesel
 It offered unparalleled space, comfort and sturdiness
The brand hence found a fan following not only amongst big families but also amongst the
Taxi and Tour operators who preferred huge inside-space to carry more people at a time
economically.
The Ambassador was perceived as a sturdy car, ideal for Indian roads and was less
expensive to maintain as well, in short, the best in its genre.

Another significant market for the Ambassador was the Government.

Owing to its robust character, Ambassador was the first choice for most top level
bureaucrats and politicians. It was the Prime Minister’s official vehicle till 2002.

Despite the changing market, Ambassador did not consider modifying the design and
features of the car, due to its popularity and success. The “look and feel” of the
Ambassador as well as its build quality, remained the same over the years.

Looking at the potential of the Indian auto market coupled with the rapid economic
growth, India was viewed as a lucrative destination by several national and global auto
players.

This period witnessed huge investments from both Indian and multinational companies
like TATA, Mahindra, Ford, General Motors, etc. in India. At a relatively rapid pace, they
started introducing a number of new models in the market. Multiple variants in different
segments such as hatch back, sedan, MUV, SUV were launched, having a new look, design,
latest technology and were also backed by heavy marketing expenditure. Ambassador did
not adapt to the dynamics of this rapidly changing market.

Due to this, competitors started gaining a relatively larger market share as compared to
the Ambassador. Private, government and taxi sectors, which were earlier dominated by
the Ambassador, were now being largely taken over by the new entrants.
Realizing this, Hindustan Motors introduced a new Ambassador variant called Avigo in
2004 in order to increase their market share. Although the styling of the new car was
radical and appealing, the customer response was lukewarm and anticipated results were
not achieved.
HM Brand at a decline stage:
The Indian consumer today is spoilt for choice. Companies are designing new age cars in
accordance with the demands of the customer and launching them at regular intervals.
The competition is colossal and the quality of cars has also shot up. Consumers now have a
new set of purchase considerations like quality, brand, drivability, luxury, cost of
maintenance, after sales service, etc.
In this context, with respect to the sales of the Ambassador, the supremacy that the
brand once had is lost.
Today Ambassador with its four variants i.e. Petrol, Diesel, CNG and LPG in the price range
set between ` 3.5-6.5 Lakhs (depending on AC or Non AC) has a relatively low market
share.
Strengths: Ambassador offers some features which form its USP even today. It is one of
the very few products with a very strong nostalgic value. The car with its unique design
offers unmatched space, comfort, safety & sturdiness, which no other new age car of this
segment offers. It is still a car that lives through generations and can be repaired at any
road-side shop.

Weaknesses: In the current circumstances, the Ambassador is finding it difficult to

compete with the gamut of options available to the consumer, due to lethargic adaption of
technology, fit & finishes issues and competitive service amongst others.

The Challenge For You

Hindustan Motors is planning to launch a new car with upgraded technology and
indispensable quality improvements on the consumer interface front, while retaining that
‘nostalgic’ value in the design of the Ambassador that made the product so successful for
so many years.
Along with the current profile of the buyer who purchases an Ambassador, be it as a family
tradition or status object or for the sheer love of it, the company is planning to target new
potential buyers who discover value in ‘Being Different’. The key is to identify the correct
segment which need not necessarily adhere to conventional segmentation norms. This
new segment of buyers may perceive Ambassador as a ‘Retro’ or a ‘Classic Indian’ product
which helps them stand out through ease of customization of the base variant while
keeping the legacy of safety, space and comfort at the DNA of the new version of the car.

The Aim is to design a Complete ‘LAUNCH STRATEGY’ for the All New Ambassador in the
Indian Market which is due for launch by mid-2011.

The following Aspects must be covered:

 Suggest the ‘right segment(s)’ to be targeted
 Suggest the appropriate launch strategy including media-mix
 ‘Messaging’ Design/Appropriate Positioning for the brand which needs to be
designed keeping in mind the target segment

When designing the comprehensive strategy for the targeted segment(s), the competitive
advantage of Hindustan Motors and the core USP of the Ambassador need to be kept in
mind.

The entry would be judged based on the following criteria:

 Selection of target segment with appropriate reasoning
 Appropriate positioning
 Innovative ideas for the ‘Launch strategy’
 Ease of implementation – Efficacy in the view of tight budgetary constraint

This is your Chance to Revive the Iconic Brand, the Car which was once the “King of
Indian Roads”, the Ultimate Favorite of the Classes and the Masses.
Rules:
1. All team members must register at http://prerana.nitie.org
2. Each team can have a maximum of three members
3. A student cannot be a member of more than one team
4. All members of the team must be from the same institute
5. There is no restriction on the number of teams from a college
6. The entry must be sent to brandits@prerana2010.com
7. The length of the case solution must not exceed 3000 words
8. Solution format: Font Size – 12, Font Type – Times New Roman, 1.5 line spacing and the file
should be a Microsoft Word Document/PDF
9. All terms and abbreviations used should be mentioned clearly under ‘Glossary’ on a
separate sheet of paper
10. The solution file must be named as brandits _teamname
11. The solution file must contain the Prerana Registration IDs of all the team members in the
header section on all pages. The file must NOT include any other candidate details/ logo
of institute
12. All candidate details - team name, team members, Prerana Registration IDs, contact details
and institute name should be mailed as a separate attachment.
13. The candidate details file should be named as Teamname_details
14. The format for candidate details file is same as that of the solution file
15. The email subject line must be brandits _teamname_institute name
16. Please read the case study carefully for detailed instructions and deliverables
17. Short listed students will be intimated by email and on Prerana Website
18. The finalists would present the solution to the top management of Hindustan Motors Ltd.
at the company premises.
19. The decision of the organizers of the contest and the panel of judges will be final and
binding on all contestants
Deadlines:
Entries must reach us by 30th October 2010, 11:59 PM.
Prizes:
1. 1st Prize – Worth `35,000
2. 2nd Prize – Worth `25,000
Contacts:

1. Latika Bhujle – 09820280308

2. Shobhana Raja – 09769651899