Marketing Strategies Of Reva Marketing Essay

The positioning assertion will change appropriately. The prospective market is first identified by doing segmentation. Then not only in one or two cities but a gamut of locations across the total of India are targeted. This is done by collaborating with the sellers across cities. The partnership with Mahindra Automotive Group comes into play handy at this juncture, not only by leveraging the founded trusted dealership network of Mahindra Automotive group, but also by using fresh infusion of funds in this cash strapped business. Appropriate positioning the merchandise across these towns can potentially improve sales. In this marketing strategy, we will also take into account the customer inertia that the automobile will face, not only because it is the first of its kind but also since it would be difficult to get people to change their style of travelling from petrol automobiles to electric cars.

In the current national scenario anybody who's buying a car has two things in their mind, fuel prices and manoeuvrability. On the bigger sense carbon feet print they leave behind is also a problem. That's where REVA fits in. At 40 paisa/km it is way cheaper than any gasoline vehicle and they leave no carbon ft. print. Electric and hybrid automobiles are the automobiles of the future. In a growing market like India where purchasing electricity of people increases and knowing of going green is increasing an automobile like REVA as huge market. REVA does very well in UK and other Europe but its market performance is below expectation in India. This is due to the fact of incorrect segmentation, setting and the prevailing image of car among general public. It is one of minimal advertised vehicle in India. In current light of REVA being bought out by Mahindra & Mahindra, we expect you will see a huge switch in the proper positioning and making the brand REVA. This is where our brand choice becomes relevant.

In this task we want to come with a proper STP research and a market plan to make REVA a mass brand in India. This is the same path which India's biggest commercial house M&M is also working. M&M vision is to make REVA a mass brand and position it as an inexpensive vehicle. The explanation behind choosing REVA could it be is very much industry relevant and it is pretty much a live project.

The REVA Electric Car Company (RECC) was integrated in 1995 as a joint venture between the Bangalore founded Maini Group and AEVT Inc. of Irvindale, California, to manufacture eco-friendly, cost-effective electric vehicles for city freedom. The RECC is located at the Bommasandra Industrial Area, Bangalore. The business comes with an installed capacity of 5000 models and employees over 180 people. A sophisticated flexible assembly lines creation technology ensures high output at lower breakeven volumes. The Research and Development device has DSRI recognition for even more indigenization and development of next era electric vehicles. With Mahindra Group taking controlling stake in the company, the completion of new flower and fresh finance infusion would speed up the development pace of world class electric vehicles.

Customer

The insufficient print and TV advertisements have gone the business rely on early adopter reviews and word of mouth marketing. The news in multimedia is also another form of exposure which the company relies after in achieving to the clients. The dismal sales of REVA show that the client is not well informed to be coerced in to the buying decision. The gender account of the clients implies that 49% of current customers are women in urban centres. The demographic profiling provides no specific bias of any particular generation customers. The elderly has adopted the car due to the ease of driving a vehicle to a large extent. The clients look at it as a second car rather than a major car.

Collaborator

The managing stake keeping by Mahindra Group has given a fresh direction to the vision of RECC. The program for small batch development schedules in cooperation with suppliers will have a cascading result in the fortunes of company. The main factor in the tie-up will be the showrooms and dealerships of Mahindra which may be reached by REVA. This is instrumental in getting the relevant visibility in the lack of significant advertising campaigns. The inner R&D activities will receive a increase with the establishment of an joint-venture by Mahindra and Nissan.

Competition

Currently there are no immediate rivals for REVA in the electric vehicle section. Players like Bajaj, Renault, and Toyota are preparing to rollout electric vehicles in India. Comparing with other energy based mostly vehicles, Tata Nano and Maruti Alto can be considered as competitors in price bands.

The prospective opponents, both domestic and foreign receive below.

Domestic players

AJANTA GROUP

The Morbi-based celebrated clock-maker Ajanta group is the new entrant in the small car sector. The company is planning to manufacture a power car at its Samkhiyali unit in Kutch district and market it at a cost less than Rs 1-lakh Nano. The business is already into manufacturing electric scooters and bikes under the name 'Oreva'. The technology is nearly similar and a significant % of its parts can be produced in-house, that may give them an edge above the vehicle's prices.

TATA

Tata Company's chairman, Ratan Tata, has, on two situations talked about his company's ideas to develop an electric car. At the business's annual meeting last year, he said that these were developing a power car. In June 2009, at the Cornell Global Forum on Sustainable Global Business, Tata advised that his company's electric car would maintain the market by land of 2009. Tata's circulation network would give its electric car an immediate benefits. Mahindra & Mahindra is planning for a four-seater electric car in 2010 2010. Tara Tiny, a power Vehicle from India's Tara International and China's Aucma, designs to retail at Rs. 99, 000 -which is lower than even Tata Nano.

Foreign players

VOLKSWAGEN

Europe's greatest car maker Volkswagen, is ready to launch the electric version of Volkswagen Polo. The Volkswagen Polo is the most successful hatchback car in European countries and Volkswagen lately launched its "Indian Version". Volkswagen is all set to capture the market segment by starting not only Electric Polo, but a complete new selection of electric autos. The German car machine is carrying out a planned and meticulous strategy in India. They'll be releasing E-Golf sometime in 2013, that will then be followed by the launch of E-Jetta. Volkswagen also released that the company has ideas of launching an electric vehicle which is affordable for users from various sections. The key to a competent electric car is a solid Lithium-ion battery, for which VW has collaborated with Japanese companies such as Toshiba & Sanyo. VW is also planning an LPG release of its Polo that will have a 1. 4 Litre engine motor and will operate on both petrol and LPG. Currently the Polo petrol version costs around Rs. 5 lakh to 7 lakhs. However we can expect the electric autos from Volkswagen to cost competitively.

RENAULT

Renault already comes with an impressive lineup of existing Electric Vehicles, EVs retailing in many countries, These EVs include - Kangoo (goods moving vehicle), Zoe (mid-sized sedan) and Twizy (two-seater principle car) which was also viewed at the Vehicle Expo 2010 at Delhi, India in January 2010. French automobile major Renault is also considering starting zero-emission electric vehicles in India by the center of the decade. The business also plans to make up to 500, 000 items of electric vehicles (EV) globally by 2014. The company will first bring autos to India. These will be completely built systems (CBU) but may take a look at local set up of developing later. The business plans to bring in the car in the European market post 2012. Each one of these Renault models will use lithium ion batteries. While Twizy has an individual demand mileage of 100 kilometres, Fluence and Kangoo will run up to 140-160 kilometres in one charge. They can be in conversations with the Delhi state government to finalize all details regarding special incentives for EVs, like taxes benefits. The business is looking for tie-ups with local electricity authorities in India.

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