Hyundai, Tata, Chevrolet and Maruti Suzuki brands in Solapur city. The data collected from this study will be helpful for the company and dealers to know the.
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Comparative brand positioning of selected brands of hatchback cars Suhas S. Ambekar Asst. Professor, SKN Sinhgad Business School, Korti, Pandharpur, Dist. Solapur, 413304
Abstract: As consumers’ lives become more complicated, rushed and time starved, the ability of a brand to simplify decision making and reduce risk is invaluable. This study is carried to know brand positioning of selected brands of hatchback (small car segment) cars. It will be interesting to see the brand image in the mind of consumers. The survey is related to small car segment in Solapur city. It has been carried out to know the brand positioning of Hyundai, Tata, Chevrolet and Maruti Suzuki brands in Solapur city. The data collected from this study will be helpful for the company and dealers to know the brand positioning of their respective brands and design suitable marketing strategies. Keywords: brand positioning, hatchback cars, brand association. Introduction: Brand positioning is at the heart of marketing strategy. It is the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s mind. The goal is to locate the brand name in the minds of the consumers to maximize the potential benefit to the firm. A good brand positioning helps guide marketing strategy by clarifying the brand’s essence, what goals it helps the consumer achieve, and how it does so in a unique way. Brand positioning refers to “target consumer’s” reason to buy your brand in preference to others. It is ensures that all brand activity has a common aim; is guided, directed and delivered by the brand’s benefits/reasons to buy; and it focuses at all points of contact with the consumer. At lowest level marketers can position their brands on product attributes; it can be better positioned by associating with a desirable benefit. The strongest brands go beyond attribute or benefit positioning. They are positioned on strong beliefs and values (Kotler and Armstrong 2009). Positioning requires that similarities and differences between brands be defined and communicated. Specifically, deciding on a positioning requires determining a frame of reference by identifying the target market and the competition and identifying the ideal points-of-parity and points-of-differences and brand association (Kotler et. al. 2009). Furthermore as brands expand, marketers want to define a set of brand associations to capture important dimensions of brand meaning. Core brand associations are those abstract associations (attributes and benefits) that characterize the 5 to 10 most important aspects or dimensions of a brand. The can serve as the basis of brand positioning in term of how they create points of parity and points of difference (Keller 2008). Positioning of brands globally needs an understanding of local markets and competition (Lopez and Boluda 2006). Brand positioning is nothing but creating identity in market by analyzing various brand dimensions (Mohanty 2012). The Indian car market is one of Asia’s largest and most competitive. As per statistics launched by Society of Indian Automobile Manufacturers (SIAM), there has been a growth of 1
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32.28% in the domestic car sales, justified from the January 2010 sales 145,905 units’ passenger cars, multi and sports utility vehicles against the 2009 sales of 110,300 units. (Source: Society for Indian Automobile Manufacturers – SIAM). With changing business scenario and globalised markets, the importance of brand positioning in Indian car industry is even fascinating. Objectives of the study: 1. To compare the core elements and associated features of the selected brands viz. Hyundai, Tata, Chevrolet and Maruti Suzuki. 2. To study and compare the attributes considered by the customers while selecting their respective brands. 3. To measure the Brand loyalty of the customers towards their respective brands. 4. To prepare comparative brand positioning statement for selected four brands from hatchback car segment. Research Methodology Type of Research used Research Approach Research Instrument Sample Design • Sample Size • Sample Segment • Sample Unit •
Descriptive Research Survey Questionnaire 120 Solapur city. Respondents who are the owners of the Hatchback cars (Small car) of Maruti Suzuki, Hyundai, Tata and Chevrolet Brand. Purposive Quota Sampling Method (30 respondents of each brand.)
Sampling Method
Analysis and findings: The data collected from 120 respondents who are small car owners of selected brands is analysed here. The findings are based on the opinions given by the respondents. Table no. 1 Ranks given to factors that forced respondents to buy a car. Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9.
Factors
Hyundai
Tata
Chevrolet
Business Need Status Regular Long Journey Family Force Large Family Size Professional Requirement Reward of achievement Friend circle Health Problem
1 2 4 3 6 5 7 8 9
1 3 4 2 5 6 8 9 7
4 2 3 6 7 1 5 8 9
Maruti Suzuki 1 6 3 2 5 4 7 8 9
Total 1 2 3 4 5 6 7 8 9 2
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Table no. 1 represents ranking for the factors that forced the respondents to buy a car. In general, mostly the factors like business need, status and regular long journey have more significance in buying a car where as the factors like health problem and friend circle were insignificant. But if we consider individual brand, for the owners of Hyundai and Tata, factors like business need, status and family force have more significance in buying a car rather than the other factors while for the owners of Chevrolet mostly the factors like professional requirement and status had forced them more. Whereas for the owners of Maruti Suzuki, status is not so important but the factors such as business need, family force and regular long journey forced them much. Table No. 2 Opinion of respondents towards the words closely associated with brands Hyundai
Tata
Chevrolet
Maruti Suzuki
Factors
No. of R*
%
No. of R*
%
No. of R*
%
No. of R*
%
Value for money
48
40%
48
40%
29
24.17%
82
68.33%
Superior Quality
86
71.67%
28
23.33%
63
52.5%
25
20.83%
Economy
13
10.83%
85
70.83%
6
5%
100
83.33%
Safety
45
37.5%
68
56.67%
17
14.16%
43
35.83%
Status
88
73.33%
28
23.33%
72
60%
13
10.83%
Luxury
96
80%
20
16.67%
78
65%
9
7.5%
Trust
39
32.5%
77
64.17%
11
9.67%
69
57.5%
Better service
28
23.33%
62
51.67%
13
10.83%
93
77.5%
Suitable for Indian roads
8
6.67%
95
79.17%
6
5%
96
81.67%
R= Number of Respondents, *Out of 120 The above table depicts opinions of car owners about the words that are closely associated with different brands. Hyundai - Luxury, Status and Superior Quality. Tata - Suitable for Indian roads, Economy and Trust. Chevrolet - Luxury and Status. Maruti Suzuki - Economy, Suitable for Indian roads, Better service & Value for money.
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Table no. 3 Mean ratings for the attributes those are important for respondents while selecting their brand (5-very important, 1-Unimportant) Hyundai
Tata
Chevrolet
Maruti Suzuki
Brand name
4.7
4.167
4.197
4.5
Price
3.07
4.09
4.07
4.33
Mileage
3.84
4.707
4.8
4.83
Availability
2.14
3.2
2.67
2.57
Convenience of Service Station
3.433
4.8
3.864
4.53
Resale Value
1.96
3.36
3.197
3.893
Variants
2.63
2.667
2.137
2.43
Design / style
4.83
4.73
4.94
4.63
Safety
4.57
4.77
4.46
4.73
Interior / Comfort
4.96
4.86
4.94
4.5
Maintenance
4.327
5
4.86
4.9
Durability
2.3
2.96
2.33
3.033
2.23
3.39
3.43
3.307
1.2
1.74
1.87
1.8
1.47
2.1
2.67
2.76
Factors
Family/Friends /Relatives’ opinion Recommendation by dealer/salesperson Advertisement
Table no.3 shows the attributes that are important for respondents while selecting their brand. For the respondents of Hyundai brand, Interior/Comfort (4.94), Design/Style (4.83) and brand name have more significance in selecting Hyundai Brand car where as the attributes like recommendation by dealer/salesperson, advertisement and resale value were insignificant. In case of Tata brand mostly the attributes like maintenance (5), Interior/Comfort (4.86) and Convenience of Service Station (4.8) have more significance in selecting Tata Brand car
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where as the attributes like recommendation by dealer/salesperson and advertisements were insignificant. The attributes that are important for respondents while selecting Chevrolet brand are attributes like Interior/Comfort (4.94) and Design/Style (4.94) where as the attributes like recommendation by dealer/salesperson, variants, and durability were insignificant. Respondents selecting Maruti Suzuki brand mostly prefer the attributes like maintenance (4.9) and mileage (4.83) where as the attributes like recommendation by dealer/salesperson, variants and availability were insignificant. Table No. 4 Preference of Respondents to the brand they want to switch
Brand Hyundai Tata Chevrolet Maruti Suzuki Total
% Respondents of Hyundai
% Respondents of Tata
% Respondents of Chevrolet
% Respondents of Maruti Suzuki
Total
11.11% 33.33%
36.84% 31.58%
40% 30% -
43.48% 34.78% 21.74%
35.21% 21.13% 19.72%
55.56%
31.58%
30%
-
23.94%
100%
100%
100%
100%
100%
Hyundai tends to be most preferred brand for switching whereas Hyundai customers prefer Maruti Suzuki brand for switching. The brand switching behaviour is not because of dissatisfaction from current brand but it may be for trying a new brand. Table No. 5 The table representing the brand, seriously considered by respondents for
purchasing.
Responses Hyundai Tata Chevrolet Maruti Suzuki Total
% Respondents of Hyundai
% Respondents of Tata
% Respondents of Chevrolet
% Respondents of Maruti Suzuki
Total
23.08% 3.85%
42.10% 10.53%
33.33% 26.67% -
47.83% 43.48% 8.69%
29.59% 24.49% 5.10%
73.07%
47.37%
40%
-
40.82%
100%
100%
100%
100%
100%
The decision regarding selecting a particular brand was not easier for the respondents. They have seriously considered other brands before finalizing the current brands. The analysis shows that Maruti Suzuki brand was seriously considered by most of the respondents before choosing their current brand. Thus before finalizing a particular car brand the buyer seriously go through Maruti Suzuki brand as it is well known and most trusted brand.
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Conclusion: Maruti Suzuki and Tata brands are positioned higher on Economy brand as compared to other brands. Maruti Suzuki brand gives ultimate performance as it gives importance to modern technology and performance. People prefer this brand because it gives more mileage and more economy and provides value for money and better service. Tata brand gives classic prestige and sophisticated driving experience. People consider Tata as more trusted and safe brand and it is also suitable for Indian road. Hyundai and Chevrolet brands are positioned high as Luxury brand compared to Maruti Suzuki and Tata. People prefer Hyundai brand because it gives superior quality, status and ownership experience. Chevrolet brand gives sporty and stylish driving experience. People prefer this brand because of its innovative design and style. Hyundai
Ownership Brand representation experience Brand association
Tata
Sophisticated driving experience Superior Trust, Safety, Quality, Luxury, Suitable for Status Indian Roads
Chevrolet
Sporty and stylish driving experience Design & Style, Luxury, Status
Maruti Suzuki
Technology and performance Mileage, Economy, Value for Money, Better Service
The study concludes that Maruti Suzuki is one of the most trusted brand and customers are emotionally attached with Maruti Suzuki Brand. This is quite evident that Maruti Suzuki is leading in its variety of ‘Hatchback’ cars. These for all this while they were targeting the group of people who are middle income, but Maruti Suzuki has slowly entered and is steadily growing into the category of ‘Sedan’ Vehicles. Though Maruti has launched luxury cars as well it is still considered as middle man’s brand. Maruti Suzuki is giving very tough competition to its competitors like Tata Motor, Hyundai Motor etc.
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8. Mohanty Sangeeta 2012, ‘Indian shampoo brand positioning: multidimensional scaling approach’, International Journal of Computing and corporate research, vol.2, no.5, pp accessed online on 25-11-2012. Webliography: 1. 2. 3. 4. 5. 6.
www.marutisuzukiindia.com www.hyundai.co.in www.tatamotors.com www.chevrolet.co.in www.autocarindia.com www.siamindia.com
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