Master–Thesis presentation
Transcript: 5.4 Finding of hypothesis 4 3. Perception of customers to LCC and premium cars 6.1 Recommendations Master Thesis Colloquium Standardisation Customisation Final result: Overall, the interviewees consider India as a production hub for low-end products within the automotive industry compare to other emerging markets . 56% "completely agree" or "agree" no differences differences 5.3 Finding of hypothesis 3 Results: The interviewees who show a "very high" or "high" likelihood to buy one of these car models. Results: On the basis of nine different car features the study analyzed the differences of LCC buyers and premium car buyers. Thank you for your attention! The two models: "Old technology" and "De-featured premiums" Old technology: Transfer of matured technology and machinery of industrialized countries into developing markets. De-featured premiums: "...Taking products designed for affluent Western consumers, stripping them of nonessential features, and then selling them at somewhat lower price to consumers in emerging markets." (Radjou & Prabhu & Ahuja, 2012, p. 113) 28% 16% 60% 5.5 Finding of hypothesis 5 Analysis of Indian perception towards German brands, in respect to the differences in the premium and low-end market, within the automotive industry. low petrol consumption roomy interior Perception to LCCs 5.1 Finding of hypothesis 1 1. Porter's Diamond model Results: The interviewees who considered the strategy as "very successful" or "successful". old model de-featured premiums own LCC brand acquisition of LCC maker 26% 18% 62% 44% 7. Limitations Hypothesis 2: Indian buyers of low-cost cars have different basic requirements compare to Indian buyers of premium cars. Hypothesis 5: The best market entry strategies for German automobile companies would be to develop a customised low-cost car or to acquire a low-cost carmaker. Premium stands for reward or price State-of-the-art innovations Fulfilling all customer expectations A myth around the brand Design has a high significance and therefore a high recognition value old model de-featured premiums frugal innovation high speed radio & navigation easy-for-self-repairing back doors air-conditioning loud horn low price 1b. Result: The interviewees who consider that India, as production hub for low-end car parts, has a leading role compare to other emerging countries. 44% "completely agree" or "agree" Once "in-a-life-time" investment Size and utility value In-cabin-room size and five doors extreme robustness and reliability Does Customisation to the low-end market offer an opportunity for German companies? 1. Porter's Diamond model 2. Standardisation versus Customisation 3. Perception of customers to LCCs and premium cars 4. The Indian automotive market 5. Findings of the hypotheses 6. Recommendations 7. Limitations On the basis of six factor conditions the model defines if a country, compare to other countries, has a comparative advantage in a specific industry: 1a. Result: The interviewees who consider that India, as production hub for low-cost cars, has a leading role compare to other emerging countries (Brazil, Russia and China). 60% "completely agree" or "agree" 74% 90% 86% 10% 40% 1. Factor conditions 2. Demand conditions 3. Related and supporting industries 4. Firm strategy, structure and rivalry 5. Government 6. Chance 5.2 Finding of hypothesis 2 Results: The interviewees who considered the automotive brands as "fully premium" or "premium". Standardisation strategies Customisation strategies The Indian car market is divided in four different categories of vehicles: Passenger cars, commercial cars, three wheelers and two wheelers 78 percent of the total Indian car market is represented by LCC models In 2014, 28 different LCC models were available Three biggest carmakers: Maruti/Suzuki; Tata Motors and Hyundai Bosch Continental Knorr Bremse Mahle Definition: "Perception is defined as the process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world. It can be described as 'how we see the world around us' " (Schiffman & Knauk, 2004). The sample does not present the total Indian population. The questionnaire was not "randomly distributed" Difficult topic and long questionnaire. No German carmaker has enter the LCC segment so far. VW is already developing an own LCC, but will the other three German premium carmakers (Audi, BMW, Mercedes-Benz) follow? Conflict: Chance to be a premium brand and a low-cost brand at the same time; for example: Airlines (Premium airline and low-cost airline; Lufthansa, Air France) Perception to premium cars 2.1 Standardisation versus Customisation 6.2 Recommendations 2.3 Standardisation vs. Customisation Overall, the interviewees prefer strategies of Customisation "own LCC brand and "acquisition of LCC maker". Audi BMW Mercedes-Benz Opel Volkswagen India is already a mayor hub for LCC's worlwide. In emerging as well as in developed markets the demand for LCC's is
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