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VROOM AWAY
Group 4
Ashish Bhasin (8), Ashish Dubey (9), Benz Thomas (11), Pratik Sharma (32), Vivek Sharma (47)
I KNOW A LOT ABOUT CARS. I CAN LOOK AT ANY CARS HEADLIGHTS AND TELL YOU EXACTLY WHICH WAY ITS COMING. Mitch Hedberg
CONTENTS
Indian four wheeler market Attributes being promoted Sales figures Verna and SX4 Demand Curve Verna and SX4 Price Elasticity Price sensitivity analysis Conclusion
Installed capacity in millions 3.88 Passenger Vehicles - 15.07% Major players Mahindra, Hyundai,
Maruti, Tata, Ford, Renault, Honda, Nissan, etc. Models Alto, WagonR, Dsire, Bolero, Swift, i10, Indica + vista, Innova, Verna, SX4, etc.
Total Sales
TOTAL SALES Jan-Sept 2012
Source: www.motorbeam.com
City 18%
Verna 32%
Vento 14%
SX4 6% Fiesta 8%
1000 2000.000
800 1500.000
thousand units India GDP*
600
1000.000 400
500.000 200
0.000 2006
2007
2008
2009
2010
0 2011
Online
Friends/relatives
First consultation
Magazines
Auto TV programs 0 5 10 15 20
SX4
Gentleman among cars Amazing driving experience Commanding exterior Plush interiors Big on mileage Loaded with entertainment Spacious and comfortable Safety Power
Source: www.motorbeam.com
4000
3000 2000 SX4 Verna
1000
0 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12
Jul-12
Aug-12
1150000
1100000
Series1 1050000
1000000
Avg Verna price assumed at INR 913403.5
950000 0 2 4 6 8 10 12 14
2
0
400000
200000 0 0 5 10 15 20
12
10 8 6 4 2 0 SX4
At a 10% price increase the elasticity is 6.5 i.e >1 more than unit elastic At a 20% price increase the elasticity is 1.25 i.e >1 more than unit elastic At a 30% price increase the elasticity is 0.33 i.e <1 less than unit elastic
At a 10% price increase the elasticity is 1.5 it is more than unit elastic At a 20% price increase the elasticity is 8 it is highly elastic At a 30% price increase the elasticity is 0.166 <1
Price sensitivity
Y Rightward shift
Price of Verna
Conclusions
Verna dominates due to Innovation Design (fluidic) Brand is considered more luxurious
Elasticity
People will shift less from Verna than from SX4
Edge
Verna has an edge over SX4 and other competitors
Market
Monopolistic competition due to small number players occupying a major market share
All images in the presentation have been sourced from various contributors on www.sxc.hu
Thank you