A

Project Report
On

Identifying and Interpreting the Marketing Strategy Adopted by an Eicher

Motors Ltd.

In partial fulfilment for the requirements of Marketing Management Core subject for PGDM
Programme,

IMI KOLKATA

Submitted By,
Name Registration ID.
Aditya Sahu 22PGDM153
Aishwarya Agrawal 22PGDM154
Jainish Shah 22PGDM170
Onkar Patel 22PGDM184
Ritwik Raj 22PGDM192
Sanskriti Singh 22PGDM200
Younoosh Khan 22PGDM224

Submitted To:
Prof. Anees Ahmad
(Assistant Professor- Marketing)
Group 2

Section C

Batch: 2022-24

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 PREFACE

As a part of the course curriculum the second semester PGDM students are required to
prepare a Marketing Strategy report. The objective behind preparing this project report
is to relate the management subject taught in the classroom to their practical application.

The preparation of this project report is based on Marketing Strategy for a public limited
company by doing Marketing Environment analysis, STP Analysis, Marketing Mix,
Sustainable Business Practices.

The scope of the project report is limited to the study of Market Position of the company on
the basis of the published data available.

This is our initial experience for preparing project report. We cannot claim that our report is
100% free of errors but at the same time it is our college’s assurance that we have tried our
level best effort to justify work allocated to us.

It’s indeed a golden opportunity for us to present the report and indeed a matter of esteem
honour itself.

Our work in this project is, therefore a humble attempt towards this end.

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 ACKNOWLEDGEMENT

To make a project of this magnitude is impossible without a dedicated effort and perfect
guidance.

We would like to express our deep feeling of gratitude to the under mentioned officials for
their assistant, guidance and inspiration before and throughout the project.

We would like to thank Prof. Anees Ahmad (Assistant Professor- Marketing) our project
faculty, for showing us a proper way to walk on, for providing help and guidance throughout
the project; he has always been the source of encouragement. He has ceaselessly guided us all
in all the aspects of the project, with his abundance amount of experience and finer ideas.

Working on the project needs hard work and concentration. What made it possible is the
support we received from those around us. We thank to all the faculties of our college for
giving us guidance, encouragement and right path to work on. We thank everybody who has
directly or indirectly helped us in the project to make it successful.

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 Table of Content
INDEX

Sr.no Particulars

1 Chapter: 1- INTRODUCTION TO THE INDUSTRY

2 Chapter: 2- INTRODUCTION TO THE CCOMPANY

3 Chapter: 3- S T P ANALYSIS OF THE COMPANY

4 Chapter: 4- MARKETING MIX OF THE COMPANY

5 Chapter: 5- SUSTAINABLE BUSINESS PRACTICES

6 Chapter:6 – RECOMMENDATIONS

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 Ch: 1
1. INTRODUCTION TO THE INDUSTRY

The Indian automobile industry has historically been a good indicator of how well the
economy is doing, as the automobile sector plays a key role in both macroeconomic
expansion and technological advancement. The two wheelers segment dominates the market
in terms of volume, owing to a growing middle class and a huge percentage of India’s
population being young. Moreover, the growing interest of companies in exploring the rural
markets further aided the growth of the sector. The rising logistics and passenger
transportation industries are driving up demand for commercial vehicles. Future market
growth is anticipated to be fueled by new trends including the electrification of vehicles,
particularly three-wheelers and small passenger automobiles.

India enjoys a strong position in the global heavy vehicles market as it is the largest tractor
producer, second-largest bus manufacturer, and third-largest heavy trucks manufacturer in the
world. India’s annual production of automobiles in FY22 was 22.93 million vehicles.

India is also a prominent auto exporter and has strong export growth expectations for the near
future. In addition, several initiatives by the Government of India such as the Automotive

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Mission Plan 2026, scrappage policy and production-linked incentive scheme in the Indian
market are expected to make India one of the global leaders in the two-wheeler and four-
wheeler market by 2022.

The India passenger car market was valued at US$ 32.70 billion in 2021, and it is expected to
reach a value of US$ 54.84 billion by 2027, while registering a CAGR of over 9% between
2022-27.

The electric vehicle (EV) market is estimated to reach Rs. 50,000 crores (US$ 7.09 billion) in
India by 2025. A study by CEEW Centre for Energy Finance recognised a US$ 206 billion
opportunity for electric vehicles in India by 2030. This will necessitate a US$ 180 billion
investment in vehicle manufacturing and charging infrastructure.

According to NITI Aayog and the Rocky Mountain Institute (RMI), India's EV finance
industry is likely to reach Rs. 3.7 lakh crore (US$ 50 billion) by 2030. A report by the India
Energy Storage Alliance estimated that the EV market in India is likely to increase at a
CAGR of 36% until 2026. In addition, projection for the EV battery market is expected to
expand at a CAGR of 30% during the same period.

Indian automotive industry is targeting to increase export of vehicles by five times during
2016-26. In FY22, total automobile exports from India stood at 5,617,246.

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 1.2 GROWTH OF THE INDUSTRY
INVESTMENTS

To keep up with the growing demand, several auto makers have started investing heavily in
various segments of the industry during the last few months. The industry attracted Foreign
Direct Investment equity inflow (FDI) worth US$ 33.53 billion between April 2000-June
2022, accounting for 5.54% of the total equity FDI during the period.

The Indian automobile industry is setting out on a journey with hopes for a sustained growth
momentum in 2023 and further embracing clean technology

The Indian automobile industry is setting out on a journey with hopes for a sustained growth
momentum in 2023 and further embracing clean technology amid the lurking speed breakers
of rising interest rates and cost increases due to new emission and safety norms, having
witnessed a strong comeback from the COVID-led downturn this year.

While the passenger vehicles (PV) segment is set for record sales in 2022 despite the
lingering effects of supply chain constraints and semiconductor shortages, the two-wheeler
space is yet to see sustained sales buoyancy after having suffered for most of the year.

According to industry estimates, PV sales can reach around 38 lakh units this year.

The three-wheelers and commercial vehicles segments have also witnessed good growth in
2022 compared to 2021, albeit on a low base of last year, which was affected by the second
wave of COVID-19 and manufacturers will be keen to carry forward the momentum to the
new year.

As per industry observers, 2023 will also see acceleration in adoption of electric vehicles,
which has already started taking root in 2022, especially in the two-wheelers segment.

For potential passenger vehicle buyers, 2023 may not ring in the best news as vehicle prices
are set to increase next year as companies prepare to conform to stricter emission norms
which kick in from April 1, 2023.

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 1.4 PESTLE ANALYSIS:

In this PESTLE Analysis, we’ll look at the,

§ POLITICAL
§ ECONOMIC
§ SOCIOCULTURAL
§ TECHNOLOGICAL
§ LEGAL
§ ENVIRONMENTAL

These factors affecting the automotive industry, in the hopes of gaining some insight
into the future of this space :

A. Political :

Here are the Political factors affecting the automotive industry:

o Safety Regulations
Driving motor vehicles can be extremely dangerous. Although we like to think of
airplanes as being unsafe, the truth is that you’re significantly more likely to have a car or
motorcycle accident than to be involved in a plane crash. As a result of this, governments
across the world enforce strict safety regulations around the automotive industry. Not only
do these regulations govern the manufacturing of motor vehicles — providing specific
build requirements, such as seatbelts, to ensure passenger safety — but they also affect
those behind the wheel. This makes it more difficult to launch a new business in the
automotive space, helping existing brands to maintain their place in the market.
o Emissions Policies
Aside from controlling the safety aspect of the automotive industry, politicians also take
great interest in the environmental consequences of motor vehicles. Almost all cars,
motorcycles, and buses are powered by fossil fuels such as petroleum and diesel, which
produce a number of environmental pollutants when burnt. A major concern with motor
vehicles is that of carbon emissions, i.e. the amount of carbon dioxide produced by

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driving a vehicle. As such, governments also have a great interest in the emissions
statistics of new and existing vehicles.
This, along with other environmental concerns, is yet another regulatory hoop for
automotive manufacturers to jump through.

B. Economic :

Here are the Economic factors affecting the automotive industry:

o Growing Disposable Incomes

As a general trend, individuals around the world are earning more and more money every
year. This means they have more money to spend on luxury items such as electronics and,
of course, automobiles! It comes as no surprise, then, that demand for motor vehicles is
slowly but surely growing. This is especially true in developing regions — such as some
African states — where recent economic developments have only now made it possible
for poorer households to afford their own car. Ultimately, this growing demand for motor
vehicles means that more cars will be sold, and the automotive industry will become even
more profitable for its participants.

C. Sociocultural:

Here are the Sociocultural affecting the automotive industry:

o Popularity of Driving

There’s no doubt that, from a Sociocultural perspective, the popularity of driving is

growing. It’s becoming commonplace for families around the world to own one or more
motor vehicles; in fact, owning one or more motor vehicles is already the norm in
developed countries such as the United States, Canada, and much of the European Union.
Part of this is a cultural phenomenon: it’s not like many of us can’t get away with bicycles
and buses, but instead we choose to drive motor vehicles simply because that’s what is
expected of us.

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 C. Technological:
Here are the Technological factors affecting the automotive industry :

o Self-Driving Cars

Without a doubt, the biggest Technological shift impacting the automotive industry is the
advance of self-driving technology. With some automotive brands such as Tesla already
offering nearly completely autonomous motor vehicles, there is a huge change to the way
we commute on the horizon. This isn’t necessarily a good or bad thing for the automotive
industry, but it may mean that manufacturers of conventional cars have to change their
business strategy to stay relevant.

o Improved Safety
Aside from the advent of self-driving cars, another big Technological advancement in the
automotive industry is, generally speaking, the safety of motor vehicles. It was only in the
1980s that wearing seat belts became a requirement; similarly, it took lower-end
automotive brands until the early 2000s to begin rolling out airbags across their models.
Not only are standards improving across the industry, but so is the underlying technology.

E. Legal:

Here are the Legal factors affecting the automotive industry:

o Copyright Issues
Interestingly, the issue of copyright also affects the automotive industry. Certain features
of a car — from its branding to even its shape — can be protected by copyright,
trademark, or patent laws. It’s uncommon to hear about legal showdowns in the
automotive space, but they do happen. In recent decades, a rising issue has been that of
Chinese automobile manufacturers blatantly stealing the designs of Western counterparts.
For example, Chinese brand Geely has created some oddly similar copies of the Rolls
Royce Phantom, resulting in some conflict. It’s unclear what net effect this copying has on
the industry, but it’s definitely present.

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 F. Environmental:
Here are the Environmental factors affecting the automotive industry:

o Carbon Emissions
As touched upon earlier, carbon dioxide is one of the most serious Environmental
pollutants generated by the automotive industry. It plays a large role in global climate
change, by means of the greenhouse effect. Over the last few years, the issue of carbon
emissions has gained global attention. We continue to drive motor vehicles on a daily
basis, but it’s unclear whether governments will be forced to take greater action to stop
global warming — and that might involve a complete ban on production or usage of
motor vehicles, or at least a switch towards electric vehicles.

o Final Thoughts
The motor vehicle has become a part of everyday life for many of us. Not only can we
afford to buy and fuel our cars more than ever before, but we’re also implicitly expected
to use automobiles. However, the Environmental consequences of driving are serious, and
it looks like we might have to think about making the switch to electric vehicles to save
our planet.

1.5 PORTER’S FIVE FORCES MODEL

A change in any of the forces normally, requires a business unit to re-assess the marketplace
given the overall change in industry information.

Three forces from ‘horizontal’ competition

* Threat of new entrants or barriers to entry

* Threat of substitute products or substitutes

* Threat of established rivals or competitive rivalry

Two forces from ‘vertical’ competition

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 * The bargaining power of buyers

* The bargaining power of suppliers

Force 1: Barriers to entry

Barriers to entry measure how easy or difficult it is for new entrants to enter into the industry.
This can involve for example:

 Cost advantages (economies of scale, economies of scope)

 Access to production inputs and financing,
 Government policies and taxation
 Production cycle and learning curve
 Capital requirements
 Access to distribution channels
 Patents, branding, and image also fall into this category.

Force 2: Threat of substitutes

Every top decision maker has to ask: How easy can our product or service be substituted?
The following needs to be analysed:

 How much does it cost the customer to switch to competing products or services?
 How likely are customers to switch?
 What is the price-performance trade-off of substitutes?
If a product can be easily substituted, then it is a threat to the company because it can
compete with price only.

Force 3: Competitive Rivalry

In this, we have to analyse the level of competition between existing players in the industry.

 Is one player very dominant or all equal in strength/size?

 Are there exit barriers?

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  How fast does the industry grow?
 Does the industry operate at surplus or shortage?
 How is the industry concentrated?
 How do customers identify themselves with your brand?
 Is the product differentiated?
 How well are rivals diversified?

Force 4: Bargaining power of buyers

Now the question is how strong the position of buyers is. For example, can customers work
together to order large volumes to squeeze your profit margins? The following is a list of
other examples:

 Buyer volume and concentration

 What information buyers have
 Competitive price
 How loyal are customers to your brand?
 Price sensitivity
 Threat of backward integration
 How well differentiated your product is?
 Availability of substitutes
Having a customer that has the leverage to dictate your prices is not a good position.

Force 5: Bargaining power of suppliers

This relates to what your suppliers can do in relationship with you.

 How strong is the position of sellers?

 Are there many or only few potential suppliers?
 Is there a monopoly?
 Do you take inputs from a single supplier or from a group? (concentration)
 How much do you take from each of your suppliers?
 Can you easily switch from one supplier to another one? (switching costs)

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  If you switch to another supplier, will it affect the cost and differentiation of your
product?
 Are there other suppliers with the same inputs available? (substitute inputs)

CH: 2
2. INTRODUCTION TO THE COMPANY

2.1 COMPANY OVERVIEW

Eicher Motors Ltd. is an India-based company engaged in the business of automobile
products and related components. The company’s product range includes commercial
vehicles (Eicher and Volvo trucks), motorcycles and components including gears and
engineering solution. The company operates in the leisure cruiser segment with engine
capacity of 350cc and above. During the year ended Dec 31, 2009 the company sold 51,955
motorcycles. In 2009, the company introduced classic bikes in the two categories of 350cc
and 500cc. The classic bikes are powered by single cylinder 500cc unit’s construction engine
(UCE) supported by electronic fuel injection (EFI). The UCE has an integrated assembly for
the engine, gearbox and clutch to reduce friction. Eicher Motors subsidiaries include VE
Commercial Vehicles Ltd., Eicher Engineering solution, INC., Hoff Automotive Design
Company and Hoff Technology Service Company. Eicher Motors operates in three segments:
Commercial Vehicles, Two-Wheeler and Component of engineering product as well as in the
publication of city map and travel guides. Its commercial vehicle plant is located at Dhar,
M.P. The company manufactures motor cycle at a plant at Thiruvottiyur, T.N., promoted
under the brand Royal Enfield. The company’s engineering component plants – located at
Gurgaon, Haryana and Dewas, M.P. manufacture gears and gearboxes and other components.
It has a joint venture agreement with Volvo AB. The company has a strong network of 142
dealers distributed across India. Eicher Motors is present in over 40 countries across the
world. Most of the exports are to South Asia, West Asia and African countries.

Eicher Motors Ltd.

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Eicher Motors Ltd. (EML) was incorporated in1982 and introduced its first product, The
Canter, a 6-ton GVW truck manufacture at its state-of-the-art plant at 3 Pithampur, Indore in
collaboration with Mitsubishi Motors Corporation, Japan, in 1986. The maiden offering soon
created a strong customer base for itself. From a single 6-ton GVW truck in 1986, our range
today extends from 5 ton to 16 ton GVW trucks and the skyline and voila range of buses. All
our products can be offered in BS II compatible option. We also have arguably the best CNG
technology in the world in our CNG buses. Pioneering the concept of Built Up vehicles in the
country, we make products that consistently deliver high value to our customers and are
increasingly becoming the preferred option for all CV users, not only in India but overseas
too. Eicher CVs today have significant presence in more than 20 countries across the world.
In India, Eicher Motors has consistently outperformed the industry in terms of growth and
currently holds over 30% market share in the 6T-11T GVW segments. In the 9T GVW
segment, Eicher Motors continues to be the leader with more than 50% market share. Our
well- equipped workshops result in faster turnaround of service. A network of more than
4500 Eicher trained private mechanics, over 133 authorized sales and service centres, and
easy availability of genuine parts across more than 300 authorized spares outlets means less
downtime and increased opportunities for our customers to earn. Eicher Motors is now poised
to further consolidate its position in the CV industry by entering into the Medium & Heavy
Commercial Vehicle segments. Strategic plans are in place to ensure necessary investments
in technology and training to constantly sharpen our development and manufacturing edge.
EML is totally committed to fulfilling the vision of being one of the top 3 CV manufacturers
in the country by giving customers what they want: vehicles that are safe, fuel efficient, easy
to maintain, enhance driver comfort and in turn productivity. Vehicles that deliver value by
providing low cost of ownership and increased profitability to our customers. Eicher has over
5000 employees located in 10 manufacturing facilities and 24 marketing offices all around
the country. The Group has around 950 vendors supplying components and sub- assemblies
which testify to the strength of the vendor base. The Group's products are brought to the
customer through its 4 networks of around 800 dealers distributed across the length and
breadth of the country.

2.2 HISTORY

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Eicher Motors is a commercial vehicle manufacturer in India. The company's origins date
back to 1948, when Goodearth Company was established for the distribution and service of
imported tractors. In 1959 the Eicher Tractor Corporation of India Private Ltd was
established, jointly with the Eicher tractor company, a German tractor manufacturer. Since
1965 Eicher in India has been completely owned by Indian shareholders. The German Eicher
tractor was partly owned by Massey-Ferguson from 1970, when they bought 30%. Massey-
Ferguson bought out the German company in 1973. In 2005 Eicher Motors Ltd sold their
tractors and engines business to TAFE Tractors (Tractors and Farm Equipment Ltd) of
Chennai, the Indian licensee of Massey Ferguson tractors. In October 1982 a collaboration
agreement with Mitsubishi for the manufacture of Light Commercial Vehicles was signed in
Tokyo and in the same period the incorporation of Eicher Motors Limited also took place. In
February 1990, Eicher Goodearth bought 26% stake in Enfield India Ltd and by 1993 Eicher
acquired a majority stake (60% equity shareholding) in Royal Enfield India. In July 2008,
EML and Volvo Group's 50:50 joint venture VE Commercial Vehicles (VECV) designs,
manufactures and markets commercial vehicles, engineering components and provides
engineering design. The Eicher Group has diversified business interests in manufacturing &
marketing of Tractors, Commercial Vehicles, Automotive Gears, Motorcycles, and exports of
vehicles, aggregates and components. Eicher has also invested in the potential growth areas
of Management Consultancy Services. After jointly venturing with Swiss Volvo Group
and Eicher Motors Ltd, VE Commercial Vehicles Limited was established. Some of the
heavy-duty trucks from the VE series were born in 2010. After launching the Thunderbird
350 and 500 models in 2012, people got more attentive. There was a tremendous buzz about
buying the bike around the country. After this, we haven’t got much to see but the
exceptional activity from Royal Enfield has kept Eicher Motors Ltd on the news. 2014, Royal
Enfield opens its first concept store in Saket, New Delhi and launches its first exclusive store
in London, UK. 2019, the company transitions to BS VI emission norms for its current
motorcycle portfolio and grew its retail network by opening studio stores- a unique, compact
format that will house the entire range of Royal Enfield motorcycles.

Founder

Eicher Motors Limited founded by Vikram Lal. He is an Indian industrialist and born on 1942. He did
Mechanical Engineering from Technical University of Darmstadt. Lal has been member of the board

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of directors of The Doon School. He joined Eicher company in 1966 established by his father. The
company started manufacture of first tractor in 1960 and then manufacture light commercial
vehicles in 1989 and then heavy vehicles. The journey of Eicher is incredible. He is married and
blessed with three children a daughter and two sons. His son Siddhartha Lal is current CEO of the
company.

Networth

Eicher Motors Limited is an Indian automobile industry. In 2020, the company revenue is
Rs.9,696.83crore (US$1.4billion). The company is one of the leading companies in India. Eicher
Motors also providing job opportunities in India and helped in growth of the economy. If you want
to know anything else about the Eicher Motors Limited. Please comment below we will try to
provide information.

2.3 GROUP STRUCTURE

The Eicher Group has diversified business interests in design and development,
manufacturing, and local and international marketing of trucks, buses, motorcycles,
automotive gears, and components. Eicher has invested in the potential growth areas of
management consultancy services, customized engineering, and maps and travel guides.

VE Commercial Vehicles (VECV) Limited is a 50:50 joint venture between the Volvo
Group (Volvo) and Eicher Motors Limited (EML).VECV is divided into five business units.

• Eicher Trucks and Buses - The E Series

• Volvo Trucks India - The VE Series
• Eicher Engineering Components
• E Powertrain
• Eicher Goodearth
• Eicher Publications

Royal Enfield Motors, the motorcycle

manufacturing subsidiary, is a part of the
Eicher Motors.

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 2.4 COMPANY PRODUCT PROFILE

Motors
Motors It manufactures several kinds of commercial vehicles. Its 50–50 joint venture with the
Volvo group, VE Commercial Vehicles Limited, designs, manufactures and markets reliable,
fuel– efficient commercial vehicles of high quality and modern technology, engineering
components and provides engineering design solutions. It has technical and financial
collaboration with Mitsubishi Motors Corporation of Japan which led to manufacturing of
CANTER range of vehicles. It manufactures around 20000 vehicles per annum.

Motorcycles

It manufactures bullet motorcycles Royal Enfield. It manufactures six different models

ranging from 300cc to 600cc. The manufacturing plant has installed capacity of 39,000
motorcycles per annum.

Engineering Components

The company manufactures complete range of automotive gears. The range of gears includes
Spiral bevels (Crown wheel and pinions), Straight bevels and Transmission gears.

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 2.5 SWOT ANALYSIS
 Strengths of Eicher Motors,

Strengths are the firm's capabilities and resources that it can use to design, develop, and
sustain competitive advantage in the marketplace –

Success of new product mix - Eicher Motors provides exhaustive product mix options to its
customers. It helps the company in catering to various customers segments in the Auto &
Truck Manufacturers industry.

High margins- Compare to Auto & Truck Manufacturers industry's competitors - Even
though Eicher Motors is facing downward pressure on profitability, compare to competitors it
is still racking in higher profit margins.

Wide geographic presence- Eicher Motors has extensive dealer network and associates’
network that not only help in delivering efficient services to the customers but also help in
managing competitive challenges in Auto & Truck Manufacturers industry.

Market Leadership Position- Eicher Motors has a strong market leadership position in the
Auto & Truck Manufacturers industry. It has helped the company to rapidly scale new
products successes.

Talent management- at Eicher Motors and skill development of the employees - Human
resources are integral to the success of Eicher Motors in Auto & Truck Manufacturers
industry. Diverse Revenue models - Over the years Eicher Motors has ventured into various
businesses outside the Consumer Cyclical sector. This has enabled the company do develop a

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diversified revenue stream beyond Consumer Cyclical sector and Auto & Truck
Manufacturers segment.

 Weaknesses of Eicher Motors,

Can either be absence of strengths or resources of capabilities that are required but at present
the organization doesn't have. Managers have to be certain if the weakness is present because
of lack of strategic planning or as a result of strategic choice.

Niche markets and local monopolies- That companies such as Eicher Motors able to exploit
are fast disappearing. The customer network that Eicher Motors has promoted is proving less
and less effective.

Declining market share- Eicher Motors with increasing revenues - the Auto & Truck
Manufacturers industry is growing faster than the company. In such a scenario Eicher Motors
has to carefully analyse the various trends within the Consumer Cyclical sector and figure out
what it needs to do to drive future growth.

Low investments into Eicher Motors's customer-oriented services- This can lead to
competitors gaining advantage in near future. Eicher Motors needs to increase investment
into research and development especially in customer services-oriented applications.

Extra cost of building new supply chain and logistics network- Internet and Artificial
Intelligence has significantly altered the business model in the Consumer Cyclical industry
and given the decreasing significance of the dealer network Eicher Motors has to build a new
robust supply chain network. That can be extremely expensive.

Business Model of Eicher Motors- can be easily imitated by the competitors in the Auto &
Truck Manufacturers industry. To overcome these challenges company name needs to build a
platform model that can integrate suppliers, vendors and end users.

 Opportunities of Eicher Motors

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Are potential areas where the firm chain identify potential for - growth, profits, and market share.
Increasing customer base in lower segments- As customers have to migrate from unorganized
operators in the Consumer Cyclical industry to licensed players. It will provide Eicher Motors an
opportunity to penetrate entry level market with a no-frill offering.

Local Collaboration- Tie-up with local players can also provide opportunities of growth for the
Eicher Motors in international markets. The local players have local expertise while Eicher Motors
can bring global processes and execution expertise on table.

Customer preferences are fast changing- Driven by rising disposable incomes, easy access to
information, and fast adoption of technological products, customers today are more willing to
experiment / try new products in the market. Eicher Motors has to carefully monitor not only
wider trends within the Auto & Truck Manufacturers industry but also in the wider Consumer
Cyclical sector.

Opportunities in Online Space - Increasing adoption of online services by customers will

also enable Eicher Motors to provide new offerings to the customers in Auto & Truck
Manufacturers industry.

Increasing government regulations- Making it difficult for un-organized players to operate

in the Auto & Truck Manufacturers industry. This can provide Eicher Motors an opportunity
to increase the customer base.

 Threats of Eicher Motors

Are factors that can be potential dangers to the firm's business models because of changes in
macro-economic factors and changing consumer perceptions. Threats can be managed but not
controlled.

Changing political environment- with US and China trade war, Brexit impacting European
Union, and overall instability in the middle east can impact Eicher Motors business both in
local market and in international market.

Distrust of institutions- Increasing threat of legal actions for Eicher Motors - As the WTO
regulations and laws are difficult to enforce in various markets. Legal procedures have

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become expensive and long drawn process. It can lead to less investment into emerging
markets by Eicher Motors thus resulting in slower growth.

Trade Relation between US and China- Can affect Eicher Motors growth plans - This can
lead to full scale trade war which can hamper the potential of Eicher Motors to expand
operations in China.

Changing demographics - As the baby boomers are retiring and new generation finding
hard to replace their purchasing power. This can lead to higher profits in the short run for
Eicher Motors but reducing margins over the long run as young people are less brand loyal
and more open to experimentation.

CH: 3
3.1 STP Analysis of Eicher Motors

 Segmentation

 Geographic Segmentation

Geographic segmentation is dividing the overall market based on different geographic units
such as – countries, continents, zip codes, states, trading blocks, cities, and neighbourhoods.
Geographic segmentation is highly efficient for Eicher Motors in the international markets
because the prospective customers have different culture, preferences, and administrative
systems. Secondly, if the cost of transportation is critical cost in the value proposition
delivery then it is prudent to do geographic segmentation as the costs of serving customers in
different locations will be completely different.

 Demographic Segmentation

Demographic segmentation is dividing the mass market into smaller segments and groups

based on gender, income, occupation, age, life cycle stage, ethnicity, religion, and
generation. As the products of Eicher Motors provide a superior value proposition, it should

segment the customers based on two main demographic criteria – income of the prospective

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customer and life cycle stage. One of the most widely used demographic segmentation

frameworks in United States by various marketers is – PRIZM.

 Psychographic Segmentation

In the marketing world, lifestyle-oriented interests, activities, and opinion, are categorized

under psychographic variables. Eicher Motors can use psychographic segmentation to divide
the potential buyers into different segments based on – personality characteristics, buying

patterns, consumption opinion, opinion on social issues, leisure activities, hobbies, and many
other dimensions. Psychographic segmentations are effective because people in the same

demography can have different psychographic characteristics based on individual life

experiences and growing up environment.

 Behavioural Segmentation

Behavioural segmentation divides buyers into groups based on their - attitudes, product
knowledge, product uses, and other responses to a product. Many marketing experts

believe that behaviour variables are a good starting point to build consumer segments.
For example, for any service – Freemium model is a far more effective segmentation

strategy than geographic, demographic, or psychographic. The behavior segmentation

can help the organization to focus on key features, and provide the consumers with

features that they are more likely to use. Continuous engagement leads higher customer
satisfaction rates and high net promoter score.

 Targeting
 After identification of various consumer segments within the marketplace, Eicher
Motors needs to target a specific market. The choice of target market is dependent on
ten critical factors,

 Organizational technical capabilities to cater to a specific consumer segment in the

Auto & Truck Manufacturers industry

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 Organization’s mission, vision, and the consumer segment fit – Is the targeting
consistent with the vision, mission, ethos, values and strategic fit of the Eicher
Motors.

 Segment structural attractiveness - Presence of core infrastructure to market

successfully to the target market.

 Organization’s comparative strengths and weaknesses to market successfully to the

target market.

 Product Life Cycle stage – It is highly relevant in the international scenario where the
product life cycle is at different stages based on social, economic, regulatory, and
political reasons. Eicher Motors needs to find out at what stage of the product life
cycle the target segment is.

 Competition in the target segment – What is the level of competition in the target
segment. If the competition is fierce then there is less likelihood of sustainable
margins in long term.

 Regulatory and other entry barriers - Are there any regulatory and technological
barriers that Eicher Motors will face if it decides to enter the market.

 Positioning
 Brand positioning and value proposition positioning are critical to marketplace
success in today’s competitive marketplace. Eicher Motors needs to position its
product in such a way that it creates a – distinct image, provides a specific identity /
reference point of the product and services in the customer’s mind. Brand positioning
and product differentiation have become increasingly critical because of the driving
down of production costs in the Auto & Truck Manufacturers industry and the direct
access to consumers using e-commerce and other online retailing strategies.

Factors determining the Positioning choices of Eicher Motors are –

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 Current product portfolio – Eicher Motors needs to assess whether the new product is
filling a vacant gap in the product mix or creating a new product line.

 Margins in the Auto & Truck Manufacturers industry – If the positioning strategy is
aimed at a segment that can’t deliver desired financial returns in long run then Eicher
Motors should avoid positioning the products for features.

 Strategic fit of Eicher Motors – As Eicher Motors already have numerous products
and services, the new products and services need to fit into the strategic fit of the
already prevalent value chain delivery model.

 Competition ability to imitate & replicate – If the competitors can replicate / imitate
the products and services easily then Eicher Motors will face strong challenges to
defend its marketing positioning.

 Ability to defend a differentiation and positioning – Can Eicher Motors defends the
differentiation it seeks to project. If Eicher Motors can’t defend the new product /
services positioning then it will be left to fend off competitive threats from new
entrants.

 Marketing resources with the firm – Does the firm have enough marketing capabilities
and financial resources to position the product in the desired segment.

 Consumer ecosystem – If the positioning of the product is not consistent with the
consumer ecosystem then consumers won’t accept the product or service.

 Relevance of positioning to the customers – Is the positioning relevant to the

customers. For example, Blackberry tried to position itself as a provider of high-end
corporate security. Most consumers didn’t buy into that positioning because most
were not using their phones for corporate purposes.

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 Ch: 4
4.1 Marketing Mix of Eicher Motors
The marketing mix framework used by Eicher's marketing strategy to analyse the brand
includes the 4Ps (Product, Price, Place, Promotion). There are numerous marketing tactics,
such as pricing strategy, promotion planning, and product innovation. These commercial
tactics, which are based on the Eicher marketing mix, aid in the brand's success. In order to
position itself competitively in the market and accomplish its business goals and objectives,
the brand/company uses the Eicher marketing strategy.

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 The product strategy and mix in the marketing strategy of Eicher can be
explained as follows:

One of the biggest automakers in India is Eicher Motors. According to the company's
subsidiaries, Eicher Motors' goods can be split into three categories:

a. VE Commercial Vehicles. Eicher trucks and buses, Volvo vehicles, and technical
components are just a few of the products offered under this division. EICHER PRO
1059, EICHER TERRA 16, Eicher Ambulance, Water Tanker, Volvo FMX Power-
train Components, etc. are a few examples of the items.
b. Royal Enfield: This segment's offerings include the CAFE RACER (Continental GT
bike), the Thunderbird cruiser bike (available in 350 and 500cc versions), and the
Retro Street cycle (Classic Squadron. Classic chrome, Classic 350 and 500). Bullet
350 and 500 standard street motorcycles, as well as Royal Enfield Himalayan
c. Eicher Polaris: This partnership between two businesses produces personal vehicles
appropriate for use by families and businesses. The brand name "Multix" is used to
market the vehicles. Multix AX+ and Multix MX are the vehicles that are available in
this sector. This section addresses Eicher's product strategy within its marketing mix.

Eicher Price/Price Strategy: The pricing plan in the Eicher marketing plan is
shown below,

Due to the large range of products offered by Eicher Motors Ltd, each category's pricing
strategy is often unique. The Royal Enfield brand is priced premium by the Eicher Motors
corporation. Due of the comfort and style the Royal Enfield bikes offer, they are expensive
and marketed to metropolitan populations. Bajaj, Honda, and other brands are some of its
rivals, but Royal Enfield charges more because of its durability and stylish appeal. Tata
Motors, Ashok Leyland, and other companies compete with Eicher Motors in the commercial
vehicle market. They employ a competitive pricing strategy to increase their market share,
and a truck typically costs between 12 and 15 lakhs. Due to the comfort and style the product
gives, the Volvo are significantly more expensive. Due to the advantages the product offers

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for both domestic and commercial use, Eicher Motors charges a premium price for its
personalized vehicles.

PLACE AND DISTRIBUTION STRATEGY

Following is the distribution strategy in the Eicher marketing mix: The distribution plan for
the Eicher marketing mix is as follows: The Indian corporation Eicher Motors Ltd. has a
presence all over the world. In its marketing mix, Eicher Motors has a comprehensive
distribution plan. In addition to being sold in India, Royal Enfield, a well-known brand of
Eicher Motors, is also exported to more than 50 other nations, including the United States,
Japan, the Middle East, the United Kingdom, various European, and south Asian nations. The
company has a strong distribution network in India, where it operates 12 storefronts and
works with more than 380 dealers in all major cities. The business has a separate website
where you may place orders for products and obtain brochures for price information. In order
to give its clients, the greatest after-sale service, Eicher Motors also keeps a strong support
crew. Additionally, the business provides franchises to potential customers.

PROMOTIONAL AND ADVERTISING STRATEGY

The following describes the promotional and advertising strategy used by Eicher: Customers
of Eicher have a strong sense of brand loyalty thanks to the company's effective marketing
strategy. The Royal Enfield brand is renowned for putting on a variety of bike-related events,
such as Rider Mania, an annual gathering of Enfield riders from all across India, One Ride,
which encourages people to ride their bikes on a specific day, and organising trips to foreign
nations like Nepal and Bhutan. In order to promote Eicher Tractors, Eicher Motors also hired
Sushil Kumar as a brand ambassador. The company shares vacation accounts from its
subscribers on social networking platforms like Facebook and YouTube. In addition, Eicher
Motors has launched a number of community projects, such as the GOODEARTH
EDUCATION FOUNDATION, to raise educational standards in public schools and educate
students, particularly girls. Eicher Schools and donations to DR SHROFF CHARITABLE
EYE HOSPITAL for the treatment of blindness and deafness are two other social endeavours.
This includes the Eicher marketing mix as a result.

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 Ch: 5
5.1 Sustainable Business Practices
A) Sustainable Village Upliftment Programme (SVUP):
As a part of the Sustainable Village Upliftment Programme, we carried out various
interventions based on the needs identified in the villages.
 They have donated wheelchairs to the elderly and differently abled persons to
improve their mobility.

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  They installed Community RO units of 500 LPH at Vattampakkam, Vadakkupattu
and Valayakaranai.
 They introduced a 'Spoken English Course' in a government Hr. Sec. school at Mathur
Panchayat.
 They distributed school bags to all the students studying at Little Flower Higher
Secondary School and Government Primary school in Vallam GP of Sriperambathur
 They distributed bicycles to girl children studying in Grade 8 and 9 in Little Flower
Higher Secondary School, Vallam, Sriperumbathur simplifying their daily commute
from remote villages to their schools.

B) Spoken English Course:

In December 2019, we launched a Spoken English Course in schools for the children of Std.
6 to 9 at GHSS, Mathur to prepare the rural students with English communication skills in a
holistic manner: Reading, Writing, Listening & Speaking. Proficiency in the English
language helps students gain self-confidence and land good job opportunities.

Various activities have been planned to improve English reading and speaking skills for
school children. By collaborating with English Learning Foundation (ELF) Learning
Solutions, we provide ELF English Content Package and training workshops for tutors and
school teachers. The programme also includes monthly reviews and reports to track their
progress.
As a part of this programme, we conduct assessments three times a year to measure students'
progress to evaluate the outcomes achieved from the project. A baseline assessment was
carried out in January 2020 for 160 students, who will be a part of this 1-year programme.

C) Water and Effluent:

Various studies suggest an increasing trend in water demand for the industrial sector in
India which is projected to account for 8.5 and 10.1% of the total freshwater abstraction
in 2025 and 2050 respectively.

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The automotive industry is a major consumer of water for various processes such as paint
spray,
coating, washing and cooling, in addition to domestic use. We understand that water is a
shared
resource and that our manufacturing facilities are present in areas of water stress (as per the
WRI Aqueduct tool). Therefore, we understand our responsibility in the conservation of
water & replenishment of shared aquifers & surface water bodies.

They conventionally use surface water, groundwater and third-party water resources to fulfil
domestic as well as industrial water demand. Our manufacturing units are all zero liquid
discharge units. We have adopted closed loop recycling systems for the effluent generated;
sewage water is treated and the resulting Tertiary Treated Reverse Osmosis (TTRO) water is
used as makeup water in the Air Handling Units (AHUs) and for gardening. These water
management practices have resulted in reduction in freshwater withdrawal at our
manufacturing facilities. In addition, to reduce our dependency on freshwater, we have set up
rainwater harvesting systems for groundwater recharge.
At EML, we follow a high standard of water management and accounting practices. Based on
a third-party water balance assessment, the Oragadam & Vallam plants were verified as water
positive.

The assessment covered

FY 18-19 data and was
carried out in September 2019.

D) Energy Intensity

Despite all the actions done to reduce the energy intensity, we observed a slightly rising trend
this year, which is primarily because of two reasons. The first was due to significant usage of
diesel generators (DG) for operations, caused by an unprecedented breakdown in the power
utility substation (TNEB) which affected the grid power supply for a period of two months.
The second reason for higher energy consumption was due to the power consumed during the
commissioning and proving of Paint Shop 2 at the Vallam Vadagal Plant, which started

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operations only by end of FY 2019. In addition, the contraction in total units of output over
the last year has also contributed to the increase in energy intensity in FY 19-20.

Energy This financial year marks an important milestone in our renewable energy journey
with the commissioning of our 999 KWp onsite renewable energy plant at the Oragadam
manufacturing facility. Going forward with the implementation of additional onsite and
offsite capacity, we will have a higher proportion of renewable energy in our energy mix. The
energy consumption chart includes our 3 manufacturing facilities & the HQ in Chennai.

Ch: 6
6.1 Recommendation
Recommendation:

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Eicher Motors cannot satisfy every customer in the Auto & Truck Manufacturers industry,
hence the strategic selection of target consumers is essential. Based on its resources and
talents, Eicher Motors must decide which clients it can best serve.
Eicher Motors can use the following four steps to build a Customer Value Driven Marketing
strategy in Consumer Cyclical industry – Market Segmentation, Targeting, Differentiation,
Positioning.

Market Segmentation: The requirements, wants, and demands of consumers in the auto &
truck manufacturers industry vary, as do their resources, locations, access to technology,
cultural preferences, attitudes toward purchases, and how they intend to use the goods and
services. The technique through which Eicher Motors chooses to divide the general market
into smaller segments and groups with comparable characteristics, purchasing patterns,
socioeconomic background, etc. is known as market segmentation. This is done to more
effectively and efficiently connect with the target audience of consumers. Some of the most
popular ways of consumer and market segmentation are –
 Geographic Segmentation - The term "geographical segmentation" refers to the
process of breaking down the total market into different geographic units, such as
regions, states, trading blocks, cities, and neighbourhoods. Due of the diverse
cultures, preferences, and administrative systems of the prospective clients,
geographic segmentation is quite effective for Eicher Motors in the foreign markets.
 Demographic Segmentation – Based on factors such as gender, income, occupation,
age, life cycle stage, ethnicity, religion, and generation, demographic segmentation
divides the mass market into smaller segments and groupings. Given that Eicher
Motors' products offer a superior value proposition, the company should divide its
customer base based on two primary demographic factors: prospective consumers'
income levels and life cycle stages.
 Psychographic Segmentation – Lifestyle-focused hobbies, pursuits, and viewpoints
are classified as psychographic variables in the marketing industry. In order to
categorise potential customers into distinct groups based on personality traits,
purchasing habits, consumption preferences, opinions on social issues, leisure
pursuits, hobbies, and a variety of other factors, Eicher Motors can employ
psychographic segmentation.

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  Behavioural Segmentation - Buyers are divided into groups according to their
attitudes, product knowledge, uses, and other responses to a product through
behavioural segmentation. A lot of marketing professionals think that behaviour
factors are a smart place to start when creating consumer segments. For instance, a
freemium model is a considerably more effective segmentation approach for any
service than a geographic, demographic, or psychographic one.

Positioning: In today's cutthroat market, brand positioning and value proposition positioning
are essential for commercial success. It is important for Eicher Motors to position its products
in a way that gives customers a clear idea of what the company's goods and services look like
and serve as a point of reference. Because production costs in the auto and truck
manufacturers sector are being driven down and because of direct customer access provided
by e-commerce and other online retailing tactics, brand positioning and product
differentiation are becoming more and more important.

4Ps of Marketing Mix- Eicher Motors needs to put the customer at the centre of the
decision-making process and then base decisions on the customer's needs and wants, firm's
financial and technical capabilities to manufacture products at specific pricing. This is
necessary for a successful customer value driven marketing mix. Finally, in order to reach
those clients successfully and efficiently, it must select both distribution and promotion
methods.

THANK YOU

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