PINING FOR PINT-SIZED WHEELS!

IIPM set to beat economic slowdown

Yeah... this too is about the US financial metldown and its after effects; but there’s more to the Indian consumer’s yearning for compacts than just less money in their back pockets...

After years of oohing and aahing over luxurious sedans, high-nosed SUVs and adrenalin-pumping sports machines, compacts are once again the flavour of the season. If the hype around the imminent launch of Tata’s Nano is anything to go by, there is more at stake here than meets the eye. Even as naysayers were talking about the demise of the Indian small car market, the year 2009 began with the launch of Hyundai’s premium compact i20 and estimates suggest that of the 50 car launches this year, a majority would be in the compact category. Some 563,398 (SIAM) compacts were sold during April-Nov. 2008 alone and every car maker wanting a bigger slice of the Indian market has a plan for the compact segment. Toyota Kirloskar is setting up vast networks throughout the country in line with launching a Yaris derived compact in India in response to archrival Honda Siel’s plans with the Jazz. Both Honda and Toyota are investing massive capital for the same. Last year, with its new plant, South Korean car maker Hyundai also romped up production from the erstwhile 300,000 units to a whopping 600,000 units for its small car designs. When asked about the company’s plans for compacts last year, Heung Soo Lheem, CEO, Hyundai Motor India told 4Ps B&M, “As soon as our new plant comes up, we will bring in a sibling to the Santro.” He followed up his promise with the new i10 and there could be several new compacts in the offing. General Motors India–despite its plight globally–is also basking in the success of its Spark compact in India. Not to be left behind, premium player Skoda has unleashed the Fabia–positioned as a high end mid segment product.

However, according to Indian small car parameters, a car is justifiable as a small car only if it is within proscribed length limits. But the new generation launches will hardly meet these specifications, given that they are substantially larger. Most car makers have to be content with B+ positioning for their products–a segment that’s out side the purchasing purlieu of most buyers upgrading from a two-wheeler. But market dynamics are gradually changing. A mere look at compact sales figures show that the ‘A’ segment is on a gradual decline, while there’s a steady shift toward large compacts. It all began with the Suzuki Swift (in the B+ segment), which intoxicated the nation with its looks and competitive pricing, just as its sibling did in 1982 (in the A segment). Now, first time buyers are becoming more carefree about cost differentials and are rather driven by brag value. A look at the fast rising sales charts is enough to motivate car makers to bring in substantially larger, new generation compacts (almost like a saloon), proving government rules obsolete. After the launch of the Fiat Palio, Indians got a taste of large roomy perceived small cars that were affordable, comfortable and surprisingly easy to drive in congested cities.

Sure, the financial meltdown and liquidity crunch are the key persuaders for consumers opting for compacts instead of copious four-wheelers; but as the market stabilizes, chimeras like the Mercedes-Benz A-class and that lovely Volkswagen Golf GTi (premium compacts) are just as capable of giving a new flavour to the power of small.

Karan Mehrishi

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Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
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FROM CHANDNI CHOWK TO CHINA, HE IS EVERYWHERE

1500-plus IIPM students placed across the country with 44 bagging international offers

FROM KHATRON KA KHILADI TO SINGH IS KINNG, BRAND AKSHAY KUMAR IS RULING BOLLYWOOD, THE IDIOT BOX AND THE AD WORLD!

His is a classic tale of beginning from scratch and making it big on the silver screen! After all, it’s tough for a man with no filmi background to make it so big in the cat-eat-cat world of Bollywood! But Akshay Kumar (or Akki, if you please) with his impeccable charm and effervescence has made it happen. With his no compromises attitude, this Dillii lad has established himself as a brand to reckon with over the last two years.

“Akshay has been in his true element since last 3-4 years. But the major reason for him being a brand is his great looks and modesty, as he represents the great Indian dream, equalised in true sense without any godfathers,” agrees Atul Kasbekar, Chairman & MD, Bling! Entertainment Solutions. True, but the one thing that has worked wonders for Akki is his single minded Khiladi positioning over the years – certainly an evolutionary brand rather than a revolutionary one. No doubt the former grows slowly but stays in action for a longer time. Moreover, Akshay has not just been a top-rung actor in films, but is also among the top grossers as far as endorsements go, with brands like Thums Up, Grasim, Microsoft Xbox and Levi’s already under his belt. But marketers are demanding more. Avers Jagdeep Kapoor, CMD, Samsika Marketing, “Akshay is one brand that has many more years to go. He is definitely incomparable when it comes to core values.” From selling food at a stall in Bangkok to selling pedigree brands, Akki has indeed come a long way. Agrees Kashmira Chadha, Director Marketing,

Coca-Cola India, “As a brand icon, Akshay Kumar has all throughout demonstrated his adventurous skills and has truly brought out the attitude of an Indian male. Action, attitude & adventure are qualities which one closely identifies with Akshay Kumar.” Akshay Kumar has been the brain behind building his own brand and has re-written the rules of the Indian movie business. He embodies the values of originality, sexiness and rugged masculinity that christened him as the global ambassador of Levi’s. “Akshay has lived his life unbuttoned... on his own terms, not dictated by box office norms, industry godfathers or stereotypes. He has challenged conventions throughout – just when the industry gave him the title of ‘action hero’, he demonstrated his forte in romance and comedy. And now when he is being appreciated for his comic roles in his recent blockbusters, he is going back to action movies,” avers Rajesh Gangwani, Sr. VP, JWT.

Even film critic, Taran Adarsh gushes, “Chandni Chowk to China looks promising as Akshay is on a roll these days with successive hits. Hopefully the year 2009 would also have something in store for him.” Now that’s what we call a simple story of a ‘King’ who pays homage to the classic formula of Bollywood movie ‘masala’ magic and that too from Chandni Chowk to Bollywood!

Neha Saraiya

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM set to beat economic slowdown
IIPM Admission Detail
IIPM Programme :- SUPERIOR COURSE CONTENTS
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
Why Study Abroad When IIPM Gives You 3 global Advantages!