International problems to go into the Indian market

After financial liberalization in India, the Indian motor vehicle industry has development drastically and cause increased competitiveness in car market. India's fast economic growth resulted in the introduction of its domestic car market which fascinated many multinational car manufacturers to set up in India with local companies collaboration, both technical and financial. As a result, twelve-monthly sales of traveler autos in India exceeded 1. 5 million items.

Malaysian nationwide carmaker, Proton could move forward their business to Indian motor vehicle market to be able to develop its international market. At the start level, Proton can market the Savvy, the Saga and the Persona in India. This three Proton models can be selected to ensure potential expansion of the business in Indian motor vehicle market. Savvy is a super-mini car are being sourced from Renault which targeting on the marketplace where the potential clients are those seeking for a compact car and also high efficiency energy ingestion. Furthermore, Saga is focusing on the family that seeking for an financial family car. And in addition Persona is focusing on on higher income customers which it offers better handling performance.

Proton can looks for for cooperation with local manufactures to penetrate Indian automotive marketplaces and develop attractive models to compete with growing competition from international gigantic carmakers in its domestic market. Moreover, collaboration with local makes can help proton to get over the troubles such as social forces, political/legal forces, competitive causes, economics pushes and also India's geography & infrastructure.

Any company is confronted marketing difficulties when enter to a overseas market. The same thing will happen to Proton when going into Indian motor vehicle market. International concern which will be faced by proton such as

Competitive Forces - The Indian automotive industry is one of the speediest growing manufacturing industries. Many international carmakers, either by cooperation with Indian companies, have setup in India since last ten years. The major breakthrough is the "Nano" by Tata Motors which they have received worldwide attention which turned out that India can produce a global standards automobile and also at a much lower cost through their progressive design. Therefore, it is very important for Proton to gain operation excellence to be able to growth and face the high competition in Indian motor vehicle industry.

Cultural Causes - Another major task is the lack of skilled man electric power for Indian motor vehicle industry. In India, automobile industry is facing severe shortage of both skilled technical and managerial manpower. This task comes from the poor training infrastructure and the public belief. Though India has a huge pool of talented and skilled man electric power, the country needs to give support to treasure their recruiting to excel in the establishments. Therefore, Proton will be encountered scarcity of skilled manpower to be creativity, impressive ideas, and experience in different areas as well as servicing and maintenance.

Economics Forces - The price tag on crude olive oil is increasing at high rate. The high crude essential oil price will affect the economic progress of almost all of the earth as well as India. Therefore, this will be affected India from becoming economical superpower. As a result, the climb in curd oil prices will also impact the development of Indian motor vehicle industry. This necessarily means that to conquer the challenge, Proton should be placed more effort on R&D to generate more vehicles that use substitute fuels and also vehicles which have high fuel utilization efficiency.

Geography and Infrastructures - The poor condition of the highways in India is another major problems encountered by Indian automotive industry. The road infrastructure in India is poorly developed and the highways are in poor condition. A lot of the roads are one lane roads that have built almost 50 years ago. A lot of the highways condition cannot match with the swift developing in the automobile industry. Furthermore, they are usually used by bullock carts and two wheelers. Once the advantages of bigger and increasing number of vehicles in India, this might worsen the health of the roads. This issue cannot be resolved with only privatization of the street infrastructure but it still need the proper Street Development Program which its improvement make a difference the expansion of Indian motor vehicle industry.

Analysis on the needs for culture version by Proton

History, geography and demography aren't the only factors that have formed the culture of India, but also by its historic heritages. The traditional heritages were made during the Indus Valley Civilization, the Vedic years and the Indian freedom movement. There are a great number of dissimilarities in India's dialects, religions, dance, music, architecture and traditions between one spot to another. However, it still possess a commonality amount the cultures. The culture of India can be an amalgamation of these diverse sub-cultures which includes spread all over the country for many millennia old.

In the Indian culture, family performs an important role where the joint family systems are still prevailing. It really is a system where the members of the family are live mutually. Normally, the top in the joint Indian family system will be the eldest male organ. He makes all significant decisions and rules for the family, and other members of the family must abide to the decisions and guidelines which have been made. Therefore, Proton can uses this to focus on for the eldest male organ in a family group for their customers where they are able to influence the decision making process specially when buying highly engaged products such as a traveler car.

On the other hands, the most frequent mode of transportation in India is two-wheeler and three-wheeler. The two-wheeler is the major market share in Indian automotive industry accompanied by the three-wheeler. Today, two-wheeler and three-wheeler is the most profitable portion in Indian motor vehicle industry. However, the traveler cars are expected to growth at high rates as increasing numbers of people go up from poverty in India. A lot of the human population of India lives in rural and semi-urban areas, and almost all of these people use two-wheeler and three-wheeler as a setting of transport and they wish to have a better transfer when their home income has increased. So when income levels upsurge in those areas, the better vehicle purchased by them would be the small and economics individuals car. Additionally, with increasing incomes, the amount of passenger autos being purchased will increase dramatically. Easy option of financing and new inventions in creation of passenger automobiles will keep up with the strong progress in this segment. Hence, Proton should grab this fantastic opportunities by introduce small and high gasoline efficiency passenger autos to Indian motor vehicle market.

In order to successful development in Indian automotive industry, Proton must appropriate adjust to India culture. To take care of the dissimilarities in ideals and attitudes in India culture, Proton can looks for for collaboration with local produces to penetrate Indian automotive markets. In addition, Proton can also appoint an intensive experience people in the Indian automotive market which can assist in handle the many ethnicities issues and also assist in expand Proton business in India.

Market Segmentation

In today modern business community, for a business to endure in the high competitive business environment, the business must be highly impressive. To get a business to success, the most simple way to choose the right market segmentation where a business can identify the type of customers with different needs exist. Therefore, it is essential for Proton to choose the right market segmentation, so that it cans successful development in Indian automotive industry.

In India, the automotive market has been segmented into three segments: the tiny car portion, the mid-sized portion and the blissful luxury sedan portion. However, Proton should concentrate on the small car section and the mid-sized segment in Indian motor vehicle market which these two segment have development steadily scheduled to it price and also high gasoline efficiency.

Small car section: This section includes the mini section, which is domain by the Maruti and the Omni. Today, more consumers desire a vehicle mostly because of the changes in their lifestyles and also increase in disposable earnings especially in urban markets. That's where the "super-mini segment comes into play. Savvy is a super-mini car are being sourced from Renault which the potential clients are those seeking for a compact car and also high efficiency fuel consumption. Furthermore, Saga may be used to aim for on the family that seeking for an monetary family car. However, Proton will be confronted competition in this segment from Maruti, Omni, Zen, MUL, Hyundai and Daewoo which should have been cheered by the development in Indian automotive industry.

Mid-sized section: The emergence of the mid-sized is because of the consumer's lifestyle up gradation where they would like for mid-priced vehicles that provide more safe practices features and better handling shows. Earlier, this segment was dominated by MUL's Esteem which permit it to take pleasure from the fruits of price, but everything that is going to change. Today, this portion has high competitions due to new offerings within the portion from Fiat, Hyundai, GM, Peugeot, Honda and Toyota. Therefore, Proton must be ready for the high competition from all these large carmakers. Proton must choose appropriate costing strategy in this section due to this is the most important factor for Proton to success in Indian Automotive Industry.

Target Markets

Target marketing is an activity when a seller identifies market segments and then chooses and produces products and services which can gratify their possible client needs and wants. The procedure of targeting is different from segmentation due to it only will involve the analyzing of sections which an enterprise chooses to handle. In Proton, it was possible for the group to identify its marketplace, when Proton plans a good job in surveying the market that can help those to segregate their potential prospects.

Proton can be targeted for three different market segments to sell the three models; Savvy, Saga And Persona. Savvy is a super-mini car are being sourced from Renault which concentrating on on the market where the prospects are those searching for a concise car and also high efficiency energy consumption from the low income groupings. Furthermore, Saga can be utilized in concentrating on the family that seeking for an monetary family car. And also Persona should be targeted on higher income customers where the Persona can provide more basic safety features and better handling performance. All of the potential customers will be living in cities in which a car is most likely to be looked at as essential. These potential consumers who are in this group 25-55 years, applied, education level are fairly high and also have good buying electric power.

Market Positioning

Proton will position itself as a high-quality and progressive carmaker in Indian Automotive Industry. Beneath the management of Dato' Haji Syed Zainal Abidin Syed Mohamed Tahir Proton will determine its market position by producing high quality car to satisfy their customer's needs at a price that is much lower as compare to their rivals. Proton has two main characteristics; the procedure efficiency and high quality car. Proton can be competed in Indian Automotive market through it ambitious marketing and emphasis on functional efficiencies which permit it maintaining a rise in revenue by selling vehicles at lower price than its opponents. The improvement in performance at this point will bring about the development of product collection, cost management and building up of the motor vehicle ecosystem. To really have the competitiveness, Proton must be rationalized the business's dealer and distribution network. In addition, quality improvements must continue being emphasized in order to make Proton has better market position.

Foreign market entry

Even though India's federal is not restricting overseas companies from establishing wholly owned or operated subsidiaries, but it is best for Proton to create in India with local collaboration, both specialized and financial. Through joint endeavors, Proton can be better understanding of local markets tendency, government laws and the competition which enable Proton to lessen initial risks. Moreover, joint ventures with local companies can offer proton with the chance to gain new capacity and experience and also enable Proton to go into new geographic market segments and access to greater human resources. The most important is joint ventures allow Proton posting of risks with an area venture partner. Therefore, joint ventures with a local company such as Maruti Udyog Small (MUL), Premier Cars Small (PAL) and Hindustan Motors (HM) will provides an easy method for Proton to enter Indian Automotive Industry.

Barriers of international marketing

During last two decade, a great deal of initiatives have been made by India's government to fine-tune condition policy perspective in a manner that allows automotive industry to expansion. Since abolition of licensing in 1991, the automotive industry has shown great improvements. In September 2001, public policy dispensation, minimum opportunities in processing facilities, neutralization of forex was withdrawn by India's authorities as a major initiative to bring policy construction which favorable the motor vehicle industry. India's Authorities also removed the quantitative restrictions on imports on 1st Apr 2001. Thus, it has freed the industry from restrictive environment which will help in the overall development of the motor vehicle industry in the country.

However, there are a variety of non- tariff obstacles that requires attention from Proton. Some of the entries barriers will be experienced by Proton in Indian motor vehicle industry will be the product modifications required for relatively poor road conditions and high degrees of heat and dust. The poor condition of the highways in India is another major problems experienced by Indian motor vehicle industry. The road infrastructure in India is inadequately developed and the highways are in poor condition. Most of the roads are solo lane roads that have built almost 50 years back. A lot of the roads condition cannot match with the speedy developing in the auto industry. Thus, in order for Proton to success in Indian automotive market, its must modify the three model automobiles (Savvy, Saga and Persona) to match the poor conditions of India's infrastructures.


After economic liberalization in India, the Indian motor vehicle industry has development swiftly. The Indian automotive Industry is now employed in an open up market. Many overseas carmakers have been setup in India through jv with local carmakers. It has made the Indian motor vehicle industry to become highly competitive. Thus, when Proton wishes to type in Indian motor vehicle industry, it must be prepared to have competitive advantages such lower prices, better quality and high petrol efficiency than competition. Furthermore, Proton must also focus on the marketing problems, marketing barriers and Indian civilizations that might have certain effect on the introduction of the Proton business in Indian motor vehicle industry. In order to successful growth in Indian motor vehicle industry, Proton can looks for for collaboration with local manufactures to penetrate Indian automotive marketplaces which helped Proton to be better understanding of local markets tendency, government laws and the opponents.

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