This document provides information about a group project on cooperative and rural markets done by students of Ghanshyamdas Saraf College. It includes an acknowledgement, introduction, and sections on the company profile of SANZO cars manufactured by Global Motors, reasons for launching an inexpensive car, types and prices of SANZO cars, benefits from the government, the company's schemes, marketing concepts and strategies, the marketing environment, production and manufacturing processes, a rural consumer profile, sales force management, positioning, and market targeting. The document analyzes Global Motors' SANZO car and how it is targeting rural consumers in Maharashtra through various marketing strategies.
2. GHANSHYMDAS SARAF COLLEGE
COLLEGE OF ARTS AND
COMMERCE
SUBJECT:-CO-OPERATIVE AND
RURAL MARKET
STD:- SYBMS „B‟
3. Group Members
NAME ROLL NO.
SANJOLY BHAGARIA 15
KUSUM PARMAR 65
MADHUSHREE RANGREJ 77
THRAPTI SHETTY 91
JINAL SOLANKI 98
KAJAL YADAV 110
4. Acknowledgment
We have taken efforts in this project. However, it would not have been possible
without the kind support and help of PROF.Binita.B. We would like to extend our
sincere thanks to her.
We highly indebted to her, for her guidance and constant supervision as well as for
providing necessary information regarding the project & also for the support in
completing the project.
We would like to express our gratitude towards our parents & member of for their
kind co-operation and encouragement which help in completion of this project.
Our thanks and appreciations also go to my colleague in developing the project and
people who have willingly helped us out with their abilities.
5. INTRODUCTION
1. Company profile(SANZO):-
Manufacturer:- Global motors also called.
Production:- 2010- present.
Assembly :- Navi Mumbai(Nerul).
Class:- City and rural car.
Body style:- 4-door.
Layout:- RR layout
Engine:- 2 cylinder SOHC diesel multipoint fuel injection all
aluminium 624cc and battery for eco friendly car.
Transmission :- 4 speed synchromesh with overdrive
Wheelbase:- 2230 mm
Length:- 3099mm
Width:- 1495mm
Kerb weight:- 600kg(1300 lb)
635kg(1400 lb)
Designer:- Daniel Schutz
2. About Global Motors:-
The following case study is about SANZO car, a car by Global
motors.
SANZO is the most inexpensive car which is launched by global motors.
Global motors is a newly established firm aiming to gain profits in
automobile sector. It has only launched automobile line of passenger
vehicles.
Global motors has launched a segment of car because of the rising demand
of vehicles in India, as india is 2nd biggest car buyer in the world.
In order to attract rural consumers Global motors hve slogan for SANZO
car which goes as “SANZO KA SATH AAM AADMI KE HATH” and
6. inorder to attract consumers attention of urban consumers there is another
slogan which is “NEW SANZO VITO POWER”
3. Reason To Launch An Inexpensive car:-
Looking at the rapidly increasing demand of automobile i.e. car
segments Global motors decided to launch a SANZO car. Global motors is
mainly targeting the middle class consumers in urban as well as rural
market.
4. Types Of SANZO Car And Price:-
SANZO Eco-friendly car
- Rs. 2.80 lakh.
SANZO diesel car
- Rs. 2.50 lakh.
5. About SANZO Car:-
SANZO car comes with great looks and a superior feel, yet with the
economy easiness of the SANZO(hatchback)
SANZO with its varients targets the middle class consumers with car prices
between rs. 2.50 lakh -2.80 lakh.
6. Benefits TO Global Motors From Governement:-
The stimulus packages from government led to the growth of the global
motors.
As the project of the Global motors is also to the benefit for the
environment and looking at the report and case study loan of RS. Without
interest rate which would help us to grow in automobile market easily.
7. Company‟s Schemes:-
7. As Global motors is a newly launched company it is mainly targeting
middle class consumers in Maharashtra.
In order to afford the pockets of rural market consumers it has kept the
pricing accordingly.
Global motors is also giving schemes to the rural market consumers. They
are
a. Rural market consumers can buy car on installments that to at a low
interest rate i.e. 11% interest rate.
b. It is priced very low and is affordable to middle class consumers and also
the living life style of consumers in rural market in increasing and
develpoping.
8. Marketing Concept and Strategy:-
It is fundamental idea of marketing that organizations survive and prosper
through meeting the needs and wants of customers. This important perspective
is commonly known as the marketing concept.
SANZO is one such product which is been manufactured while keeping in
mind the needs and wants of the target consumers.
To understand the marketing concept of SANZO, we need to understand the
strategy that the management at GLOBAL Motors has employed. GLOBAL
Motors have conceptualized their strategy around the BOP theory given by CK
Prahalad in the year. Lower Middle Class at the bottom of the pyramid (BOP)-
represents a very attractive market opportunity.
India being a developing economy has a large portion of population of low and
medium earning class of people. Due to increase in population and the developing
nature of the economy more people are getting added to the BOP, who have desires
and wants to have cars. Even today in India, Lower-Medium earning class families
travel on two wheeler and three wheeler, just because they cannot afford to buy a
car.
Consumer demand is a want for a specific product supported by an ability
and willingness to pay for it. GLOBAL Motors has fulfilled this desire of people,
to have their own car by launching its product.
9. MARKETING ENVIRONMENT :-
The Marketing Concept is about matching a company's capabilities with
customer wants. This matching process takes place in what is called as the
8. MARKETING ENVIRONMENT. Marketing Environment consists of following
factors they are:-
(1)The Company.
(2)Suppliers.
(3)Marketing Intermediaries.
(4)Competitors.
(5)Customers.
(6)Public.
(1) THE COMPANY:- Entire project, SANZO CAR was an innovation by
GLOBAL Motors and it continued till the car being delivered to the customer. The
company made its suppliers think innovatively for the production of parts which
they got from them i.e. the suppliers were asked to perform the research on the
products which reduces the company's R&D costs. The light weight bumpers, three
bolted wheels are the strengths of the SANZO CAR which actually increases the
mileage of the car.
(2) SUPPLIERS:- The suppliers are:-
(a)Boron carbide:-Triveni Interchem Pvt. Ltd. ( Group Of Triveni Chemicals)
Vapi.
(b)Glass Fibre Discs (GFDS):- Industrial Glass Company Vashi, Thane.
(c)Conductive Plastic Compounds:- Blend Colours Pvt. Ltd., Hyderabad.
(d)Steel Shots:- Elite Traders, New Delhi.
(e)Marble Polishing Abrasive Cake:- Sharad Enterprises, Jodhpur.
(f)Abrasive Rolls:- Poornarth Solutions, Delhi.
(g)Abrassive Cut-Off Machine for Metallography for Quality Control Lab:-
Narang Metallurgical, New Delhi.
(h)Garnet Sand:- Prime Laboratories, Hyderabad.
(i)Abrasive Filament Brushes:- Ganesh Brush Manufacturers, Pune.
(j)Electroplated Diamond & CBN Pins:- Jain Precision Tools, Aurangabad.
(k)Steel Scrubber:- Matrix Exports, Bengaluru.
(l)Abrasive Epoxy System:- Roto Polymers And Chemicals, Chennai.
(m)Boron Carbide Powder Paste:- Varun Udyog Diamond Tools, Navi Mumbai.
(n)Jointless Asbestos Cloth(54" to 84"):- Shree Fire Pack Insulator Private
Limited, Ahmedabad.
(o)Shot And Grit-blasting Comparators:- Bombay Tools Center, Bombay.
(p)Grinding Wheel:- Gauri Shankar Trading Corporation, Noida.
(q)Segment:- Royal Arc Electrodes Limited, Mumbai.
(r)Abrasive Belts:- MSK Products Private Limited, Hosur.
(s)Folder Gluer Belts:- Sanket Belting, Surat.
9. (t)Coated Drusy:- Sizzling Silver, Jaipur.
(3) MARKETING INTERMEDIARIES:-
The Marketing Intermediaries support a lot in Marketing and sales of
SANZO. It has an extensive dealer network throughout the country and support,
financially also by having tie ups with leading banks.
(4) COMPETITORS:-
SANZO has competitors like TATA NANO. Renault and Cherry
Corporation are trying to launch a car in the small segment. Maruti 800 can be
considered as a close competitor.
(5) CUSTOMERS:-
The customers of SANZO can be people in all classes but it is especially
made for lower middle class people. People who only dreamed about cars can
really buy this car as it priced inorder to afford people. The upper class family can
also be attracted as it has got an extraordinary style and attractive colorful looks.
So people who have craze for cars will surely buy it.
(6) PUBLIC:-
As far as SANZO is concerned, it has a lot of response and support from the
public. Lot of communities and blogs were created in which people themselves
joined and were keen to know about the features of SANZO.
10. Production and manufacturing process:-
a. Manufacturing strategy:-
the assembly company is in navi mumbai nerul
because it is easier to target the south maharashtra nd the transportation costs
will be also less as well as urban city mumbai will also be easily accessible
to the company so it will be able to target both rural and urban markets.
10. RURAL CONSUMER PROFILE
The Rural Consumer Profile shows some distinctive characteristics, which
make them different from urban customers. They differ from urban consumers in
the following ways:-
Educational Profile:-
Most of the rural consumers in South of Maharashtra ( Pune, Nashik,
Ahmednagar, Solapur,etc) who used to be illiterate now the literacy rate is
increasing in such rural areas. The quality level of education in the pat 10 years has
shown an increasing growth. Visual displays and phonetics are more preffered for
promoting the products in rural areas. Consumers in rural market prefers messages
of the product should be thorough and descriptive. Demonstration and suggestions
leads to a greater impact on the rural consumer.
Low Income Profile:-
Average income of a rural consumer in South of Maharashtra is much less
than the urban counterpart. Inspite of the fact that rural incomes have grown
manifolds in the last decade, a large part of rural consumer's income is spent o the
basic necessities, thus leaving lesser amount of disposable income on other
products. Hence, a rural consumer is much more price sensitive than an urban
consumer. Most of the demand is for low priced products. Keeping all this factors
in mind GLOBAL Motors has managed to keep the price of SANZO which is
affordable to middle class rural consumers who are price sensitive.
Occupation:-
11. The principle occupation of rural consumers in Pune, Nashik, Ahmednagar,
Solapur is agriculture. However, the basis of differentiation is size and ownership
of land. There are big farmers,small farmers and farm workers. Whereas big
farmers have reasonable high incomes to spend on luxury items. A large proportion
of rural customers also work in factories like sugar factory as well as tourism and
hotels is also one of the important occupation in South of Maharashtra. Pune is also
famous for an IT sector. As the overall standard of living of consumers is
increasing GLOBAL Motors is mainly targetting rural consumers on a small scale
inorder to gain profits as well as full fill the wishes of consumers of having cars.
Opinion Leaders:-
Opinion leader in rural areas can be defined as a person who is considered
to be knowledgeable and is consulted by others and his advice is normally
followed. The typical opinion leader in a rural market are primary health workers,
doctors, teachers, politicians, panchayat members and other leading brand
ambassadors spreads the good word about the product technicalities. GLOBAL
Motors has hired retailers in villages in South Maharashtra so as to influence the
purchase decision of a rural consumer.
Media Habits:-
Television and radio are important mass media in a village. Rural consumers
of today are more aware of the surroundings with the help of mass media. Radio
programmes reach 15% of the Indian population and reach of Television
programmes is now as high as 85%. As a result GLOBAL Motors is promoting its
Car more and more through Television ads and internet.
Brand Conscious Consumer:-
The rural consumers in South of Maharashtra are becoming more and more
aware of brands because of the increase in standard of living of people as well as
due to mass media. Many national and regional brands are today building a strong
rural base without much advertising support with catchy slogans which attracts the
consumers. Keeping this fact in mind GLOBAL Motors is keeping focused on
rural market as India is also the second largest consumer in the world.
Value For Money:-
Rural consumers are shoppers for products with high value for money.
They do not but cheap products, but buy products and brands which promise to
deliver higher value. In order to full fill the desires of Middle Class rural
12. consumers of owing a car GLOBAL Motors has launched SANZO Car which is
inexpensive with schemes which suits the pockets of consumers.
SALES FORCE MANAGEMENT:-
The Sales Manager of GLOBAL Motors has led down schemes for rural
market so that there is increase in sales of SANZO Car.
Rural consumers can now buy SANZO Car on installments which is one of the
strategy of sales manager so as to increase the sales. The edition of eco-friendly car
has also led to the increase in sales because of an affordable prices given by
GLOBAL Motors.
Sales manager is targetting mainly and especially rural markets because of the
increasing standard of living of people as well as keeping their wants in mind he
has planned various strategies like promoting brand through television, banners,
mouth to mouth publicity which will indirectly help in increasing the sales which is
the prime motto of sales manager.
13. POSITIONING
Positioning is the act of finding a place in the minds of consumers and
locating the brand therein.companies have to plan positions that give
their products the necessary advantage in the target market.
1. Identify Differnces :- The first preference given by us will be
consumers motive that is when he purchases a product.several
approaches in positioning our product will be taken in order to
enhance the product.
a. PRODUCT DIFFERENTIATION :-product will be
differentiated in terms of shape,size,colour,quality.
Size:- capable od carrying 4-5 people.
Color:- black,grey.
Quality :- product quality will be of premium and efficient.
b. Service differentiation:-services will be differentiated in the
form of delivery,after sales services and maintenance.
c. People :- people or personalities(films and celebrities )who are
widely respected and admired by consumers especially in the
rural areas as we can say the areas which weare targeting,bring
a differentiation to the image of product and its services.
14. d. Image: image of a brand or a company may win the customer
even though the product is very much similar to the
competitor‟s one. Image is built by advertisements, symbols,
signs.
2.Selecting The Right Differences :- the best alternatives will be
selected since there are various parameters for product positioning. Some critical
factors that will be considered whilen positioning a brand will be attractiveness,
distinctive, pre-emptive, affordable, communicable.
3.Communicating :- effective communication will clarify the target market,
will state the value preposition and will identifies the supporting product
differentiated.
15. TARGETING
Segmentation is the process of establishing and establishing alternative market
segments.targeting involves evaluating various segments and selecting how many
and which ones to target.
1. EVALUATION OF SEGMENTS :-
PROFITABILITY :- profitability is something that everyone wants
with efficient production,manufacturing and marketing process.
Attractiveness:- attractiveness is important in every product and a car
can b made attractive accordingly.
Company objectives:- Better efficiency, profitability, expansion of
sales and marketing.
Limitations:- society, government are some aspects that can criticise
against a particular company.
1. COVERAGE OF SEGMENTS :-
16. RURAL MARKETING
SEGMENTATION
Market segmentation is the process of dividing or categorizing market into
different groups based on one or more variables.
The division or categorization is based on the premise that different people
have different preferences.
BASIS OF SEGMENTATION
1) Geographic segmentation
2) Demographic segmentation
3) Psychographic segmentation
4) Behavioural segmentation
Every organisation have to approach market segmentation.so according to
the basis,segmentation will be done.
MARKET SEGMENTATION
The areas we targeted are outskirts of Maharashtra including mainly
Pune,Solapur,Ahmednagar,Nashik.
17. 1. GEOGRAPHIC :- As the area targeted is around Maharashtra the
geographic area will not be different
Zone:- west
State :- Maharashtra
Climate :- has a tropical wet and dry climate.
Culture :- symbolises Marathi culture.
2. DEMOGRAPHIC :-
AREA GENDER M FAMILY EDUCATION RELIGION
F SIZE
PUNE 4-5 81% Hindu
AHMEDNAGAR 53% 47% 4-5 72%
SOLAPUR 51% 49% 4-5 77%
NASHIK 54% 46% 4-5 74%
3.PSYCHOGRAPHIC :-
SOCIAL CLASS :- lower-middle , upper-middle and upper-lower.
Lifestyle :- standard of living is quiet improvised,as these states and villages
are developing.
4. BEHAVIOURAL :-
PURCHASING OCCASION :- Buyers can be segmented on the basis of the
occasions on which they buy.
USER STATUS :- as the product will b introduced,it will a first time user by
a customer.