IBS KOLKATA BATCH 2010-2012(PGPM)
PROJECT ON : BRAND LIFE CYCLE
BY NEHA SHIV KUMAR ENROLLEMENT NO : 10BSP0592 DATE OF SUBMISSION - 9 TH AUGUST 2010
Brand Life Cycle
What is a Brand?
A name term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products. What is Brand Name?
That part of the brand that can be spoken. What is Brand mark?
The element of the brand that cannot be spoken, such as symbols. What is Trade name?
Commercial and legal name under which a company does business. Benefits of Branding Identification: The brand allows the product to be differentiated from others and serves as an
indicator of quality to consumers. Encourages repeat sales Facilitates New Product Introduction: Because a familiar brand is more quickly accepted by
consumers. What is brand life cycle?
The three phases through which brands pass as they are introduced, grow, and then decline. The three stages of the brand life cycle are the introductory period, during which the brand is developed and is introduced to the market; the growth period, when the brand faces competition from other products of a similar nature; and, finally, the maturity period, in which the brand either extends to other products or its image is constantly updated. Without careful brand management, the maturity period can lead to decline and result in the brand being withdrawn. The life cycle of each and every brand is different, and different advertising strategies should be adopted at different stages to suit the marketing targets and market environment in order to achieve the best marketing results.
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Criteria for evolution of the article on basis of brand life cycle
Below are the listed criteria on which I will be evaluating the brand life cycle of the chosen articles. 1. Brand name creation 2. Brand positioning 3. Corporate and brand logo creation 4. Name stylization 5. Brand launch and implementation planning 6. Brand & product strategies 7. Brand building programs 8. Brand Maturity 9. Revolution 10.Mitigating 10. Mitigating the crisis 11.Conclusion 11. Conclusion and inference
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Article 1 McDonald's Alexandra Noailles' son doesn't want just toys. Julien covets merchandise from the animated film "Cars" and Nintendo's Wii video game system. When it comes to yogurt, he opts for Dannon's Danimals. And when he wants fast food, more often than not it's McDonald's that he asks for. Barely five years-old, Julien has developed some pretty specific brand preferences. "I figure he just picks it up in commercials," Noailles, of Peekskill, N.Y., said. For years, understanding brands and logos was thought to be the province of older children, but a recent study has found that the preschool set also has the ability to identify and distinguish among different corporate products. "Young children are ready learners and are learning about their brand environment just about everywhere," said T. Bettina Cornwell, a professor of marketing and sports management at the University of Michigan. Cornwell and Anna R. McAlister, a lecturer at the University of Wisconsin, published their study "Children's Brand Symbolism Understanding" in the journal Psychology and Marketing last month. The study, which involved 38 Australian preschool children ages 3 to nearly 5 years old, found that while the children were not yet able to read, they often knew exactly which logo corresponded with which brand. Certain logos -- including those for fast food chains (McDonald's), entertainment companies (Disney, the parent company of ABC News, and Warner Brothers) and cars ( Toyota) -proved especially recognizable. Others, including those for clothing (Nike) and personal care (Kleenex), fared considerably worse. (No children in the study recognized the Kleenex logo. Kleenex spokesman Joey Mooring said he was unfamiliar with the study but added that Kleenex's "primary consumer demographic" is "moms.") The researchers were especially surprised to find children identifying brands whose marketing doesn't appear to target kids, including Toyota, which was recognized by 80 percent of the study's participants, and Shell, which was recognized by nearly 53 percent. McAlister had a couple of theories to explain why brands like Shell and Toyota get kids' attention. For the former, children might associate trips to the gas station with stops for treats at a gas station convenience store, she said. For the latter, children may recognize car brands because they've learned to distinguish between their parents' cars and those of others. "My feeling is that a lot of this has to do with positive emotions -- children recognize things that are self-serving and enjoyable," McAlister said. McDonald's was the most recognized brand, with nearly 93 percent of children correctly identifying the restaurant chain by its golden arches.
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But here's a detail that may come as a surprise to parents and proponents of the recent " Retire Ronald McDonald" campaign: During the study, children were never shown pictures of Ronald McDonald, the McDonald's clown mascot who critics say encourages unhealthy eating habits among kids. It turns out they didn't need Ronald to clue them in to the allure of Mickey D's. When children were asked to assess how popular certain brands were among their friends, they gave answers like "McDonald's has a playground so you can play there and everyone likes you." (To the clown's credit, McAlister said she's since showed children pictures of Ronald McDonald's red boots and striped socks -- omitting the rest of his body -- and found that some could identify the mascot by just his legs and feet alone.)
Study:
Summary: The above article talks about the preference of brands among the children of age around 5-7 years. It talks about how the brand has affected the children and what all are the reasons for it. It also talked about what all are the major factors for the brand recognition. In the article it says the survey shows McDonalds was most preferred brand. It says that it’s not necessary that the brands that are used by children are only famous among them but there are other brands which are also famous like Toyota and Shell.
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Brand Life Cycle:
Let take the case of McDonalds in this article which is one of the world's largest chain of hamburger fast food restaurants, serving nearly 47 million customers daily. It was started in 1940. Brand name creation
The name McDonald was taken from the surname of the brothers (Richard and Maurice McDonald) who started this fast food restaurant. Corporate and brand logo creation
McDonald's first filed for a U.S. trademark on the name McDonald's on May 4, 1961, with the description "Drive-In Restaurant Services," which continues to be renewed through the end of December 2009. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedee ." Speedee was eventually replaced with Ronald McDonald by 1967 when the company first filed a U.S. trademark on a clown shaped man having a puffed out costume legs. Name stylization
On September 13, 1961, the company filed a logo trademark on an overlapping, double arched "M" symbol. The overlapping double arched "M" symbol logo was temporarily disfavored by September 6, 1962, when a trademark was filed for a single arch, shaped over many of the early McDonald's restaurants in the early years. The modern double arched "M" symbol that continues to be in use today at McDonald's restaurants did not appear until November 18, 1968, when the company filed a U.S. trademark on the now famous symbol that continues to be in use through the end of the year 2009. Brand launch and implementation planning
The first McDonald's restaurants opened in the United States, Canada, Costa Rica, Panama, Japan, the Netherlands, Germany, Australia, France, El Salvador and Sweden, in order of openings. The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois, on April 15, 1955[8] , the ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion, and the company became listed on the public stock markets in 1965. Brand & product strategies
Most standalone McDonald's restaurants offer both counter service and drive-through service, with indoor and sometimes outdoor seating. Drive-Thru, Auto-Mac, Pay and Drive, or "McDrive" as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the latter two steps are frequently combined; it was first introduced in Arizona in 1975, following the lead of other fast-food chains. In some countries, "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city 6
neighborhoods often omit drive-through service. There are also a few locations, located mostly in downtown districts that offer Walk-Thru service in place of Drive-Thru. To accommodate the current trend for high quality coffee and the popularity of coffee shops in general, McDonald's introduced McCafé, a café-style accompaniment to McDonald's restaurants in the style of Starbucks. McCafé is a concept created by McDonald's Australia, starting with Melbourne in 1993. McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare. Portugal is the only country with McDonald's restaurants serving soup. Brand building programs
McDonald's has for decades maintained an extensive advertising campaign. In addition to the usual media (television, radio, and newspaper), the company makes significant use of billboards and signage, sponsors sporting events ranging from Little League to the Olympic Games, and makes coolers of orange drink with their logo available for local events of all kinds. Nonetheless, television has always played a central role in the company's advertising strategy. To date, McDonald's has used 23 different slogans in United States advertising, as well as a few other slogans for select countries and regions. At times, it has run into trouble with its campaigns. Some McDonald's in suburban areas and certain cities feature large indoor or outdoor playgrounds. The first PlayPlace with the familiar crawl-tube design with ball pits and slides was introduced in 1987 in the USA, with many more being constructed soon after. Some PlayPlace playgrounds have been renovated into "R Gym" areas. Brand Maturity
McDonald's has become emblematic of globalization, sometimes referred to as the "McDonaldization" of society. The Economist magazine uses the "Big Mac Index": the comparison of a Big Mac's cost in various world currencies can be used to informally judge these currencies' purchasing power parity. Scandinavian countries lead the Big Mac Index with four of the five most expensive Big Mac's. Norway has the most expensive Big Mac in the world as of July 2008, whilst the cheapest country is Malaysia. McDonald's has increased shareholder dividends for 25 consecutive years, making it one of the S&P 500 Dividend Aristocrats. McDonald's restaurants are found in 119 countries and territories around the world and serve nearly 47 million customers each day. McDonald's operates over 31,000 restaurants worldwide, employing more than 1.5 million people. The company also operates other restaurant brands, such as Piles Café.
Revolution:
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By revolution I mean to say the crisis that has happened in the organization that led to change in its both internal and external structure. The McLibel Trial, also known as McDonald's Restaurants v Morris & Steel, is an example of this criticism. In 1990, activists from a small group known as London Greenpeace (no connection to the international group Greenpeace) distributed leaflets entitled What's wrong with McDonald's? , criticizing its environmental, health, and labor record. McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, shakes, and desserts. Morgan Spurlock's 2004 documentary film Super Size Me said that McDonald's food was contributing to the epidemic of obesity in society, and that the company was failing to provide nutritional information about its food for its customers. In response to obesity trends in Western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include alternatives considered healthier such as salads, wraps and fruit. Mitigating Crisis
McDonald wrote to the London Greenpeace activists demanding they desist and apologize, and, when two of the activists refused to back down, sued them for libel in one of the longest cases in British civil law. A documentary film of the McLibel Trial has been shown in several countries. Six weeks after the film Super Size Me premiered, McDonald's announced that it was eliminating the super size option, and was creating the adult happy meal. In response to obesity trends in Western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include alternatives considered healthier such as salads, wraps and fruit. McDonald also used advertizing to project itself that it cares for the people and is good corporate citizen. In a bid to tap into growing consumer interest in the provenance of food, the fast-food chain recently switched its supplier of both coffee beans and milk. In April 2008, McDonald's announced that 11 of its Sheffield restaurants have been using a biomass trial that had cut its waste and carbon footprint by half in the area. McDonald's has been using a corn-based bio-plastic to produce containers for some of their products.
Conclusion and Inference: In the light of McDonalds the article which shows how a kid has favored McDonalds of which some of them have not even seen its advertisement. From my study of the article the two major factors because of which the kids recognized the brand and remember them was there Symbol and the something which is very interesting to them. Here in case of McDonalds it its logo ‘M’, Ronald McDonalds and playgrounds which offer good fast food along fun facilities for the kids. Since kids are quick learner and they have photographic memory which they can easily recollect. So it’s for a company which is trying to build brand needs to have a logo and symbol 8
along with its great services which will help it in making the company a Brand. It doesn’t matter much how big the company is but what they are offering and their services are which will help them become a brand. Also the brand is not necessary created only by its services but also by varieties of services it offers. One more thing that people recognize the brand by the king of advertisement is does for itself ( in our article its Toyota and Shell). References: http://www.aboutmcdonalds.com http://wiki.answers.com http://en.wikipedia.org/wiki/McDonald's
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Article 2
Chrysler brand Alisa Priddle / The Detroit News
chyrysler Group LLC shook up its brands, the executives overseeing them and ended longtime ad agency contracts -- and now a Frenchman from Italian partner Fiat SpA is charting a new marketing direction implementing strategies honed in Turin. Olivier Francois, who already was the marketing chief for Fiat and head of that automaker's Lancia brand in Europe, now, finds himself in charge of the Chrysler brand and as the company's marketing chief in Auburn Hills. But his early days on the job here have been marked by controversy as he strives to better define each brand with new ad agencies, dropping longtime partners; and forgoing a press conference during media days at next week's Detroit auto show in Chrysler's backyard. Today, ad work is being done by a slew of new agencies, and their commercials have raised concerns among dealers that they don't focus enough on the vehicles. One Chrysler ad has been particularly criticized because it was a reworked Lancia brand ad.
Auburn Hills
All the change has led to skepticism by some about what the new marketing guy is doing. A perplexed Francois has an answer: duplicate what he did for Fiat, but on a shoestring budget that requires combining resources where possible and trying to come up with something that stands out in a crowded marketplace. Francois said in an interview with The Detroit News that he needs to better understand the American mood and culture as he redefines Chrysler's message to consumers and quell some misconceptions about his strategy. But with the kind of unbridled energy that makes it difficult to stay seated for a full hour, Francois exudes confidence in applying the Fiat model at Chrysler. One agency not enough
In Italy, Francois works with four ad agencies, one for each Fiat brand. The practice was adopted at Chrysler, which also now has four brands with the separation of Dodge into Ram truck and Dodge car; Chrysler and jeep Changing ad agencies was not about the competence of past companies, he said. "It is not about the quality of what's been done. The idea is simple: You need more agencies for more brands. It can't be done by one agency." The first ads have not all been well-received. They center on brand image and have been criticized by dealers like Fred Frederick for not focusing on product and price.
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Frederick, who owns Chrysler dealerships in Laurel and Easton, Md, said he has complained to Chrysler executives that ads must stick to featuring the vehicles "to get the consumer interested in your product." Francois expressed surprise at the criticism, saying early brand spots were just the first step and product ads are coming. " 'My name is Ram' is not a product ad. It's a 'new brand is born' ad," Francois said. "It was a statement and it's done. It was not supposed to sell anything." Likewise, early Jeep ads were to evoke images of freedom. "All ads going forward are totally product oriented," and in the "appropriate tone of voice for each brand," Francois said of about 15 recently shot commercials to air in upcoming months. Optimism over ads cautious
Grabbing his computer, Francois played commercials with Ram pickups hard at work, kid-friendly features in minivans, and the luxury interior of the Chrysler 300. Upcoming dodge car ads have a dry humor to them. Frederick, the dealer, however, is skeptical. In 40 years selling Chrysler cars and trucks, he said he has heard it before. But he is willing to give Francois the benefit of the doubt. Frederick's instincts are right, said Mike Bernacchi, marketing professor at the University of Detroit Mercy. "We are in a product intensive time," Bernacchi said. "I can't remember a time when there was so much talk about products, technology and gizmos in them." Ever since the events that resulted in the bankruptcies of Chrysler and General Motors Corp., brand and emotional advertising have taken a backseat, he said. What are needed are no-nonsense ads to tell consumers what they can buy and drive. That would disqualify new Chrysler ads, for example, that call for the release of Burmese Nobel Peace prize laureate Aung San Suu Kyi. The ad, created for Lancia, was reworked for Chrysler. It was never meant to be a traditional ad, Francois said. Fiat was a sponsor of an event for Nobel Peace laureates and provided Lancia and Chrysler vehicles for attendees including former Soviet Union and Polish Presidents Mikhail Gorbachev and Lech Walesa. The Lancia ad agency and talent donated their time, Francois said. "It is a good cause and costs nothing and is good for the world and for Chrysler. I know what I spent: nothing. For billions you couldn't buy four presidents." Francois defends the new Chrysler ads, too, and is planning to capitalize again July 18 during an international day of recognition for Nelson Mandela, former South African president. Mandela will be given Chrysler and Lancia cars that day to drive and, once again, cameras will roll. 11
"I don't know what will do with it yet," Francois said. "Maybe a film like we did for Nobel, but for sure we are going to use it, likely for both brands in the U.S. and Europe." It is the kind of move that will help Chrysler "stand out in a crowded marketplace to compensate for the fact we are investing less than others." In a further bid to stretch each dollar, future vehicles will be developed that both the Chrysler and Lancia brands can use. Dealer Frederick is cautious in his optimism, saying new Fiat products for Chrysler will "only be helpful if they launch and market them properly." Analysis The Brand Chrysler Brand name creation
The company was founded by Walter Chrysler (1875–1940) on June 6, 1925, when the Maxwell Motor Company (est. 1904) was re-organized into the Chrysler Corporation. It got its name from the founder Walter Chrysler. Corporate and brand logo creation
The original Chrysler logo, which vanished after 1954 from all but 1955-1956 Windsors, C300s, and 300Bs with manual transmissions*, and reappeared in 1994, is a rendition of a wax seal with ribbon affixed at the lower right. The thunderbolts above and below the name are actually "Z"s, a tribute to the prototype built before Chrysler took over Maxwell, which took the name "Zeder" from chief engineer Fred Zeder. (At the time, Chrysler was trying to keep development of the new car and his involvement in it a secret, possibly still upset about the loss of the car that was supposed to be the first Chrysler. This car design was sold to Billy Durant as a liquidated asset in the WillysOverland bankruptcy; Durant eventually built this car under the Flint name.) The Chrysler logo has undergone several changes throughout the history. All the brand logo depicts their vehicle specialty. They have multi logo branding logo strategy. Their present logo is a star inside a pentagon.
Name stylization
Name stylization for Chrysler is something unique same like its logo. It keeps on changing from time to time to revitalize it and give an aesthetic look.
Brand launch and implementation planning
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The Chrysler Corporation was founded on June 6th, 1925 by Walter P. Chrysler. The company originates from the Maxwell Motor Company, which Walter P. Chrysler had joined in the early 1920s. In January 1924, Walter Chrysler launched the well-received Chrysler automobile.
In 1928, Chrysler Corporation expanded with the purchase of Dodge and the creation of the DeSoto and Plymouth divisions. Chrysler acquired the American Motors Corporation and its Jeep brand in 1987. The Maxwell (the old company which was re-organized into the Chrysler Corporation) was dropped after its 1925 model year run, although in truth the new line of lower-priced 4-cylinder Chryslers which were then introduced for the 1926 model year were basically Maxwells which had been re-engineered and rebranded.
Brand & product strategies
Below are the products of Chrysler and its earlier companies from which it was born.
Current vehicle brands
Chrysler — Passenger cars, minivan
Dodge — Passenger cars, minivan, crossover, and SUV
Ram — Trucks and commercial vehicles
Jeep — SUVs and crossovers
Global Electric Motorcars (GEMCAR) — Battery electric low-speed vehicles
Discontinued brands
DeSoto (1928–1961)
Valiant (1960–1966)
Singer (1905–1970)
Fargo (1920–1972)
Humber (1898–1975)
Hillman (1907–1976)
Sunbeam (1901–1976)
Karrier (1908–1977)
Simca (1934–1977)
Barreiros (1959–1978)
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Commer (1905–1979)
Imperial (1955–1975, 1981–1983)
AMC (1954–1988)
Eagle (1988–1998)
Plymouth (1928–2001)
It follows the strategy by introducing new models and merger and acquisition to grow. The only clear strategy at Chrysler these days is the “Grab Life By The Horns’ at the Dodge brand. The slogan and most of the ads actually match the nature and personality of products like Ram, Magnum, Caliber and the forthcoming Challenger. But the new strategy behind Chrysler, with slogan “Engineered Beautifully,” is another lame, weak attempt at giving Chrysler a brand image people can latch on to. Marketing Strategy: In 2007, Chrysler began to offer vehicle lifetime powerain warranty for the first registered owner or retail lessee. The deal covered owner or lessee in U.S., Puerto Rico and the Virgin islands, for 2009 model year vehicles, and 2006, 2007 and 2008 model year vehicles purchased on or after July 26, 2007. Covered vehicles excluded SRT models, Diesel vehicles, Sprinter models, Ram Chassis Cab, Hybrid System components (including transmission), and certain fleet vehicles. The warranty is non-transferable. However, after Chrysler's restructuring, the warranty program was replaced by five-year/100,000 mile transferrable warranty for 2010 or later vehicles.[44] As of October 5, 2009, Dodge's car and truck line are now split into two, "Dodge" for cars, minivans and crossovers and "Ram" for light and medium duty trucks and other commercial-use vehicles. Chryslers Timelines: 1928: Chrysler buys larger automaker Dodge Bros. and introduces the Plymouth and DeSoto lines. Walter Chrysler is named Time's Man of the Year. 1934: The Company introduces the Airflow, the first aerodynamically designed production automobile. Despite praise for its bold design, it is a commercial flop. 1938-41: Chrysler enjoys four straight years as the world's No. 2 automaker, behind General Motors. 1940: Walter Chrysler dies. 1942-45: With auto production shut down for World War II, Chrysler plants produce Sherman tanks and other military vehicles. 1950s: Chrysler introduces a host of new features to its cars, including the "hemi"-head V-8 engine, transistor radios, fuel injection and power steering. 1960s: New Chrysler models include the Plymouth Valiant, Dodge Dart, Plymouth Barracuda and Dodge Charger. DeSoto production ends. 14
1973: The first OPEC oil embargo drives up gas prices, devastating big car sales. 1978: Lee Iacocca, just fired by Ford, is hired as chief executive of Chrysler. 1979: Chrysler is rescued from bankruptcy by Congress and President Carter. 1980: Carter signs the Chrysler Loan Guarantee Act, providing $1.5 billion in loan guarantees. 1983: Sales improve dramatically with the debut of the well-received K-car platform and the introduction of the Dodge Caravan and Plymouth Voyager, the first modern minivans. Chrysler pays off government loans seven years early. 1987: Chrysler buys American Motors Corp., netting the Jeep brand. 1993: Iacocca retires. 1998: Daimler-Benz buys Chrysler for $36 billion. 2001: DaimlerChrysler says it will cut 26,000 jobs at financially troubled Chrysler and idle six plants. 2007: Cerberus Capital Management buys Chrysler for $5 billion. Dec. 19, 2008: With the company nearing financial collapse, President Bush agrees to lend Chrysler $4 billion. April 30, 2009: Chrysler files for Chapter 11 bankruptcy protection. May 1, 2009: Chrysler appears in Bankruptcy Court in New York to begin what the Obama administration hopes is a 30- to 60-day restructuring.
Brand Maturity
In the 1960s, Chrysler was the first of the Big Three (other two being GM and Ford) to introduce unibody, a construction technique offering improved rigidity, handling, and crash safety that is now standard on most passenger vehicles. At this point it was peak of its maturity. Chrysler officially ranks as the world's thirteenth largest vehicle manufacturer as measured by OICA in 2008. Total vehicle production was about 1.89 million.
Revolution and mitigating crisis
Chrysler has passed many revolutionary i.e. crisis stage. Some of them are The 1970s proved a difficult time for Chrysler. The 1973 oil crisis and new government emissions standards presented a major challenge for American manufacturers with their large, powerful, and gasguzzling vehicles. In need of smaller, more efficient vehicles, Chrysler acquired a 15% stake in Mitsubishi Motors in 1971 and began selling rebadged Mitsubishi models in the United States soon after. Nonetheless, high manufacturing costs due to dated factories and an uninspiring model lineup brought the company in financial trouble. In 1979, the Chrysler Corporation petitioned the U.S. government for $1.5 billion in loan guarantees to avoid bankruptcy.
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With new CEO Lee Iacocca in charge, the manufacturing facilities were modernized and new models based on the K-car platform were well-received. Thanks to this new-found profitability, the loans could be repaid by the early ‘80s. Innovative vehicles like the modern Minivan helped the company thrive throughout the 1990s. After the merger with Daimler-Benz in 1998, the company came into trouble again. After a costcutting program under new CEO Dieter Zetsche, Chrysler eventually returned to profitability for a short time. In 2007, the DaimlerChrysler sold an 80.1 % stake of the Chrysler Group to the American private equity firm Cerberus for $7.4 billion. On April 30, 2009, Chrysler LLC filed for Chapter 11 reorganization and announced a plan for a partnership with Italian automaker Fiat. On June 10, 2009, the sale of most of Chrysler assets to "New Chrysler", formally known as Chrysler Group LLC was completed. The federal government financed the deal with US$6.6 billion in financing, paid to the "Old Chrysler", formally called Old Carco LLC, which remained in Chapter 11 bankruptcy. This company has seen all the stages of brand life cycle. Conclusion and inference
In the light of the article, the Chrysler is failing and the main reason for it being it is not able to innovate and bring in more number of vehicles both in lower segment and higher segment. They have 4 different ad agencies for their four vehicles and the CEO is very optimistic that add will help in increasing the sell which is in a way false and negative thinking. Until and unless they bring in more number of new vehicles the situation is not going to change at Chrysler. Also the launch of their new product in alliance with Fiat will only be helpful if they are launched and marketed appropriately. Ad can increase the sell but to certain extent not to that enough that it turn the future of the company. Depending on ad for building a brand may not always be good strategy and if Chrysler does not change its strategy then we should not be surprised to see another big corporation falling.
References:
http://nybw.businessweek.com/the_thread/brandnewday/archives/2007/05/chryslers _new_owner_has_serious_marketing_work_to_do.html http://www.jbcarpages.com/chrysler/history/ http://articles.latimes.com/2009/may/02/business/fi-chryslerchrono2 http://en.wikipedia.org/wiki/Chrysler
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Article 3
Google Wave Decision Shows Strong Innovation Management Some tech pundits were surprised that Google decided to shut down Wave yesterday just a year after its launch and chastised the company for its decision. But I'm not surprised and I applaud the company's decision to pull the plug after it was clear the market wasn't interested in Wave. From my vantage point as someone who studies innovation, Google's decision was exactly the right move and provides some very important lessons for managing innovation in both small and large organizations. The first lesson, of course, is that uncertainty haunts all innovation attempts. Charles Kettering, inventor and VP of R&D and Board Member of GM (1920-1947) famously noted that when it comes to innovation: "You don't know when you are going to get the thing, whether its going to work or not and whether its going to have any value whatsoever." In essence Kettering implied that any innovation attempt faces a combination of temporal, technical and market uncertainty. Even a company like Google, recognized for its wealth of intellectual talent in its employees, was not able to figure out before hand if there would be a market for Wave. Some types of uncertainties are simply not resolvable before the fact, and the only true way to find out is to make the investment and launch an innovative product in the market place. Google should be applauded and rewarded for pioneering a risky project and publicly launching it so that it can learn from the market. Google's decision to launch Wave also provided an important signal to both its existing and potential employees that it values innovation and the efforts of its staff to imagine new revolutionary possibilities about the future. In a global war for talent, the best scientists, engineers, marketers and managers are going to affiliate with organizations that will allow them to fully express and exercise their creativity. Supporting the inception and development of such creative projects to attract and retain top flight talent is thus another important part of managing innovation. Failure of course is always a possibility with any attempt at innovation. Indeed the bedrock of innovation is failure. Unpacking the history of most innovative products and services will reveal a long track record of failure where innovators attempted many different (failed) ideas and approaches on their way to create high-value solutions. These failures are a necessary on the path of innovation and executives and managers need to build an organizational culture that has a high tolerance for failure so that that their staff don't second guess big risky ideas and instead propose incremental bets. Certainly the business world is rife with examples of other firms that keep investing more resources and staff in failing projects in the hopes of a miraculous recovery or simply to avoid the public embarrassment of failure. However, admitting failure and moving on is another key lesson in managing innovation. With Wave, Google simply did not get the user traction it needed to justify its existence. Innovation managers need to develop clear metrics about performance criteria and be ruthless about shutting down projects that do not meet the bar. The ability to (quickly) shut down failing projects and reallocate intellectual and financial resources to other more promising endeavors is critical to innovation success as
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it releases individuals and budgets to take on the next big challenge. It also indicates to the internal organization that performance metrics are important and projects that do not meet the criteria will not be allowed to languish. Of course the lessons from the failure should be embraced and rapidly applied to other projects. In the case of Wave, Google has already started to bring some of the communication and collaboration features into their more successful products like GMail and Docs. Google should be commended for both launching and shuttering Wave as it shows that their managers both embrace creativity and innovation and are also cognizant of allowing failure and dealing with it rapidly and efficiently if the creative efforts do not bear fruit. More of us should be following in their footsteps.
Brand name creation
The word Google is play on the word “googol”, a mathematical term for the number one followed by hundred zeros. It reflects the company’s mission to reorganize the immense, seemingly infinite amount of information available on the web. Brand positioning
Google is created with the mission to reorganize the immense, seemingly infinite amount of information available on the web. This clear mission helps them devout their resources in achieving this mission. Google has 72% of current market share in search domain. It has more some billions articles, documents, pdfs etc. It has indexed more than 100 million URL’s.
Corporate and brand logo creation
Google logo is its name ‘Google’ which keeps on changing from time to time on from occasions to occasion like on some festival or birth anniversary of same great personalities. Name stylization
The style for its name changes very frequently like on world environment day it will have google written with trees, leaves. It keeps on changing to give the aesthetic view and so that company like frequent changes and is very innovative. Brand launch and implementation planning
Google began in March 1996 as a research project by Larry Page and Sergey Brin, Ph.D. students at Stanford working on the Stanford Digital Library Project (SDLP). Originally the search engine used the Stanford website with the domain google.stanford.edu. The domain google.com was registered on September 15, 1997. They formally incorporated their company, Google Inc., on September 4, 1998 at a friend's garage in Menlo Park, California. In March 1999, the company moved into offices at 165 University Avenue in Palo Alto, home to several other noted Silicon Valley technology startups. 18
All the innovative brands of Google are launched with fun fare and usually create mass followings. The Google search engine attracted a loyal following among the growing number of Internet users, who liked its simple design. In 2000, Google began selling advertisements associated with search keywords. This is major source of there revenue. Brand & product strategies
The present brands of Google are Google Web Google Images Google Maps Google News Orkut Gmail Google Book Google translator Google Scholar Google Blog You tube Calendar Google photos Google docs Android And many more The strategy of Google is to innovate and bring as many as new products possible into the market, and because of this strategy it has been able to bring in 100+ new products into the market for web users in the span of just 24 years. They aggressively spend money into R&D and bringing in new technologies into the market. For this they recruit best of the technical brains across the globe and give them free hand and all the resources which will enable them to think and develop new products. Brand building programs
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Over the years and within very short span of time Google has become one of the most admirable and innovative company of the world. It has got domain name in almost all the countries. It was awarded Brand of the year by many institutions many a times. When company went public with IPO in August 2004 its share rose 800% in less than 3 years. Brand Maturity
Brand Google is not yet in mature state completely but we can say it is in transition between growth and maturity state. The company is still growing and its launch of new products almost every month is proof for that. It is growing by acquiring and forming partnerships with many other technological companies. They have entered into clean energy technology by investment in a renewable-energy project, putting up $38.8 million into two wind farms in North Dakota. Its revenue growth has always been in double digits after dot com bubble. Google as brand is yet to mature. Revolution and mitigating the crisis
Google being an innovative launches many products and not all of them become successful. For them crisis is when there’s product could do well in market and they have to be very active and invest all these resources in developing other products. Some of their product which could not capture what they wanted are Google Wave, Android (smart phone) etc. They mitigate the crisis by either moving all their resources into other developmental processes or recall back their product and re-launch it after modifications, which they are doing in case of Wave. Conclusion and inference
In the light of article, looking at the implications of Google withdrawing Wave from market was a very strategic decision as people did not accept this in this form. Google was quick to react and withdraw it from market even when there was protest form some sections of people both for its launch and withdrawal. The withdrawal did not have much negative impact on the company as people understandingly took it as wise move and they appreciated it. It is not always true that the company who is very innovative will always be successful but it is true that people start believing in its ability to become a major brand. Google decision to withdraw proves the same. Google decision should also appreciated in a light of fact that they after withdrawing the wave from market didn’t stop dreaming to develop new product along with the fact that they would have become much more cautious after this. They should also focus on enhancing their much established brands like GMAIL and Google docs. Google being a brand needs to keep innovating to remain in the fastest changing technological world and invest more and more on R&D.
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Article4
Apple's Mac Sales Are Surging Three months after the debut of the most-hyped technology product in history, the jury is in on Apple's iPhone: While it's a "beautiful and breakthrough" product, as Wall Street Journal columnist Walt Mossberg wrote in his influential review of the touch-screened smart phone, it simply isn't worth its initial $599 price tag—a fact that Apple CEO Steve Jobs all but admitted earlier this month. "This is life in the technology lane," Jobs said of his decision to slash the iPhone's price by $200. You might have thought such capitulation would send shivers down Apple investors' spines. Indeed, after it had surged to a record high of $146 a share in July, rumors that the iPhone wasn't selling like hotcakes sent the stock down by nearly 10 percent after Apple's price-cut announcement. (It was off by twice as much during the stock market's mid-August swoon.) New outlook for earnings. Yet for smart investors, it appears the recent sell-offs were, in fact, buying opportunities. Thanks in part to a raft of analyst upgrades over the past few days, the stock hit a new a ll-time high of $153 on Tuesday as news arrived that the company's core products—its Macintosh computers—are selling far better than the iPhone. "Despite an overhyped phone, in our opinion, we believe Apple's business continues to accelerate and is firing on all cylinders," W.R. Hambrecht analyst Matthew Kather wrote last week of his decision to up his e arnings estimates for the company. Citing "stronger than expected iMac momentum," as well as falling costs for the memory chips needed to make them, Citigroup analyst R ichard Gardner followed on Monday, not only upping his estimate but also his 1 2-month price target for the stock, to $180 a share, a 20 percent premium over its current price. In fact, many believe Apple is finally succeeding at doing what it has long failed at: convincing the bulk of personal computer users to shell out as much as twice the price of a comparable Windows-based machine for the elegant functionality—and the pure "bling"—of owning a Mac. Indeed, although the Mac has long enjoyed a cult-like following, its overall market share has only recently vaulted toward the double digits, more than tripling the paltry share it had three years ago. Running Windows on the Mac. While there's certainly been a "halo effect" from Apple's wildly popular iPod and, to a lesser extent, from the iPhone, the growth in Mac sales is thanks mostly to Apple's decision a few years back to switch to industry-standard Intel microprocessors. With the help of special software, they allow PC users to run all their software applications on the Mac. For many converts, it's been a revelation: no viruses to deal with, no crapware to uninstall...in fact, some technologists have argued that Windows actually runs better on the Mac—faster and with fewer crashes—than it does on Windows machines. Despite fears that last fall's release of Microsoft's Vista operating system would dampen Mac sales, the unimpressive, memory-hogging Vista has only given longtime PC users more reason to make the switch. And with Apple's new "Leopard" operating system due out in
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October, many believe Mac sales are finally on the verge of the sort of breakthrough that the iPhone promised but has yet to deliver. Meanwhile, Apple continues to roll out new products, from a touch-screen version of the iPod to a much-rumored sub-laptop-size Mac, which is expected to be released in time for Christmas. The takeaway: While Apple's sky-high stock price doesn't leave much room for mistakes as the critical holiday season approaches, the company's long-term profit outlook is as good as it has ever been, giving investors plenty of reason to buy the next time the stock pulls back.
Analysis of Apple Computers Inc. Brand name creation
There are differing versions of how the company came to be known as Apple. The best-known version of the story is that Jobs used to work summers at a California apple farm and was fond of the crisp, round fruit. He also admired the Beatles' record label, Apple, which the Fab Four formed in the late 1960s. According to this version of the story, Wozniak and Jobs settled on Apple after they could not think of a better name.
Brand positioning
Apple was established to sell the Apple I personal computer kit. They were hand-built by Wozniak and first shown to the public at the Homebrew Computer Club.[19] The Apple I was sold as a motherboard (with CPU, RAM, and basic textual-video chips)—less than what is today considered a complete personal computer.[20] The Apple I went on sale in July 1976 and was market-priced at $666.66 ($2.55 thousand in 2010 dollars, adjusted for inflation). It was positioned in the USA for selling the computers initially. Later they globalized and moved across the world and have presence in more than 50 countries.
Corporate and brand logo creation
Settling on a logo for the new company took a little longer, however. An early design of the Apple logo featured Sir Isaac Newton under an apple tree, while a banner read "Apple Computer." Jobs, however, thought this logo too busy and wanted a simpler one that consumers would instantly recognize and associate with the company. The next logo bore a close resemblance to the current one in use, displaying an apple, only without the single bite taken out of it. Jobs and Wozniak unveiled the next attempt at a logo---the one still used by the company---in 1977. The logo features an apple with a leaf and a single bite taken out of it. The bite taken out of the apple recalls the "byte," a unit of measurement in the computer industry. Apple's first slogan, "Byte into an Apple", was coined in the late 1970s. From 1997–2002, Apple used the slogan Think Different in advertising campaigns. Apple also has slogans for specific product lines — for example, "iThink, therefore iMac" was used in 1998 to promote the iMac, and "Say hello to iPhone" has been used in iPhone 22
advertisements. "Hello" was also used to introduce the original Macintosh, Newton, iMac ("hello (again)"), and iPod.
Name stylization
The brand apple is so big that it is recognized by just the logo. The product though has name on it like ipod, mac, ipad etc. Brand launch and implementation planning April 1, 1976 their first computer Apple I was launched. The Apple II was introduced on April 16, 1977 at the first West Coast Computer Faire. It differed from its major rivals, the TRS-80 and Commodore PET, because it came with color graphics and an open architecture. Apple III was launched in May 1980 in an attempt to compete with IBM and Microsoft in the business and
corporate computing market. Lisa, 1983, became the first personal computer sold to the public with a GUI, but was a commercial failure due to its high price tag and limited software titles. In 1984, Apple next launched the Macintosh. Its debut was announced by the now famous $1.5 million television commercial "1984". On August 15, 1998, Apple introduced a new all-in-one computer reminiscent of the Macintosh 128K: the iMac. On May 19, 2001, Apple opened the first official Apple Retail Stores in Virginia and California. later on July 9 they bought Spruce Technologies , a DVD authoring company. Some of the Apple’s prominent products are ipad, ipod, iphone, Apple TV, and apple software’s. Expect for the initial few products Apple has launched all its product keeping the technological growth and user preference in mind. They have created the niche for them and build the brands over the period of time. There product shows true bandwagon effect where people are planning to buy as its symbol of p ride and status.
Brand & product strategies
Apple's sustained growth during the early 1980s was in great part due to its leadership in the education sector, attributed to an implementation of the LOGO Programming Language by Logo Computer Systems Inc., (LCSI), for the Apple II platform On November 10, 1997, Apple introduced the Apple Store, tied to a new build-to-order manufacturing strategy. Apple returned to profits in 1998 after loss for almost 5 years. It tried to reinvent itself by launching new products, aliening with companies like IBM and Motorola to create new computing platform. 23
Apple is known for its marketing strategies. It has used advertisement for gaining popularity in best possible ways. For Apple biggest strength is its CEO Steve Jobs and he has been company face since 1997. Some of the most profitable products of Apple has been iMac, Mac mini, Mac Book, iPod, iPhone, iPad, Apple TV, Software’s and many variants of all these products and other computer accessories. They have strategy to create small, light weighed electronics goods. They make sure the look features of the products needs to be very high. The company was known as Apple Computer Inc. until 2006, when it changed its name to Apple Inc. to reflect its expansion from computers into home electronic devices. By this time, Apple's iPod digital music device had made the company the leader in digital music players. With the introduction of the iPhone, Apple entered the mobile phone market as well. For e.g. Apple Store openings can draw crowds of thousands, with some waiting in line as much as a day before the opening or flying in from other countries for the event. The New York City Fifth Avenue "Cube" store had a line as long as half a mile; a few Mac fans took the opportunity of the setting to propose marriage. The Ginza opening in Tokyo was estimated in the thousands with a line exceeding eight city blocks. Brand building programs
Steve Jobs plans launch of new product very strategically and it is done with huge advertisement and publicity. It has sold millions of ipod and iphone within few years of its launch. They have increased their brand by acquiring the companies and merging with few of them. According to surveys by J. D. Power , Apple has the highest brand and repurchases loyalty of any computer manufacturer. While this brand loyalty is considered unusual for any product, Apple appears not to have gone out of its way to create it. For brand building its uses Advertisements, slogans, commercials etc. Brand Maturity
Apple 1st reached its peak during late 1980’s due to higher sell of its Apple II and some of the apple accessories and software’s. When Apple went public in 1980, it generated more capital than any IPO since Ford Motor Company in 1956 and instantly created more millionaires (about 300) than any company in history. 1980 has been year of growth for the Apple but early 1990’s was when Apple started going down thus triggering the decline phase of the brands. Revolution
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1990’s has been year of crisis for the Apple. The major reason for it was high price of its software as compared to MS. Machintos was bulky and could not be sold in great numbers. There were very less innovation going on in the company. The company has to fire many of the employees to remain in business. Steve Jobs had resigned from the company due to infighting in the leadership team. They tried many things but couldn’t bring the company to profitability till 1998. Mitigating the crisis
Steve Jobs was called back to Apple as CEO in 1997 and his returning back has made Apple what it is today. Many new iconic products were launched. Apple stared allowing windows to be compatible aith its computers which increased the sale of Apple Mac computers. It opened many Apple Stores in US. It collaborated with many companies bought many to increase its presence. It launched innovative products like iPod, iPhone, iPad and their new variants which made the Market capitalization of Apple more the MicroSoft for the first time after 1989 in 2010. Lot of investments were made towards R&D and innovation became the talk of the company. Conclusion and inference
In the light of the article some of the decisions which made the Apple prices to jump after the lull periods in 1990’s is it’s launching of Mac with new features, new innovative products like iPod, iPhone, and its decision to allow Windows operating to run on its machine along with building the Mac with integration of Intel chips on its mother board. It continues to drive innovation with huge investments in R&D. Though Apple is not very famous for giving dividends to its share holder but people still sticks to it seeing the bright future of the company. They are sitting on huge cash thanks to its profit over the years and looking for the opportunities to invest. The stock price of Apple is at its upper level and investors should wait for the price to fall so that they can invest in it as it has very sound and healthy future. This is the effect of the brand which can make people to buy even on when it is values at its maximum price.
References: www.apple.com http://www.ehow.com/how-does_4927023_did-apple-computers-its-name.html http://en.wikipedia.org/wiki/Apple_Inc.
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Article 5
Maruti Story It is ironic that the first ever narration of the Maruti story should be released on a day when the iconic M800 is being phased out from some Indian cities. The Maruti Story - How a Public Sector Company Put India on Wheels deals largely with the M 800, India’s first “modern” car which went on to change not just our automobile industry but also the way an entire nation commuted. Written by Maruti chairman R C Bhargava with senior journalist Seetha, the book details the journey of a successful enterprise despite having limitations associated with a public sector undertaking. And what a success Maruti has been - it began with a production target of just 192 cars over three months in 1983 and has already reached the one million unit production mark this fiscal. Speaking at the launch, Bhargava said though he has been associated with Maruti since its inception, he never kept a diary, nor any record of all the events that shaped India’s largest car maker. No wonder then that compiling the book took three years and painstaking research. Bhargava recalled that he was perhaps the only person involved in the policy framework when Maruti was being set up and is still around in the company as its chairman. Maruti was born of a dream of late Sanjay Gandhi, who had apprenticed with Rolls-Royce Motors before coming back to India to manufacture a ‘people’s car’. The company was created at a time when there were just three companies making passenger cars in India —Hindustan Motors in Kolkata, Premier Automobiles in Mumbai and Standard Motor Products India in Chennai. The demand for cars would far outstrip supply and in 1968, waiting list of cars was a huge 82,000 units or more than two years. Releasing the book, finance minister Pranab Mukherjee — who was FM in late eighties too when the Maruti project was being conceptualised — recalled the excitement and wonder at the launch of this car company and its subsequent journey to its number one position today. “Maruti has reached a new landmark - production of one million units…. I am also happy to know that the company is listed and a large number of our citizens are sharing in its growth story...India has shown that it can become a small car manufacturing hub and there is no reason why we cannot compete in any other manufactured product on a global scale.”
Analysis Maruti:
Brand name creation
Maruti means Lord Hanuman in sanskrit. Since people in India are sentimental and emotional towards God’s this was the primary reason for naming of the company. Maruti Udyog Limited (MUL) (Now Maruti Suzuki India Limited) was established in
February 1981, though the actual production commenced in 1983 with the Maruti 800, 26
based on the Suzuki Alto kei car which at the time was the only modern car available in India, its only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Brand positioning
It was targeted for Indian people in the beginning but later the Maruti car’s were exported outside the country. It was initially targeted at the urban sector of India but slowly it became very popular in tire II and tier III cities. After the launch it soon capture the imagination of people and became market leader leaving behind Hindustan Motors and Premier Automobiles. Corporate and brand logo creation
Its logo had ‘M’ written with cuts on side and Maruti written at the bottom of it. After Suzuki acquired the controlling stakes in the company Suzuki was added below Maruti. But when Suzuki motors acquired the majority of the stocks the ‘M’ was replaced with ‘S’ of Suzuki. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The Indian government held an initial public offering of 25% of the company in June 2003. As of 10 May 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog. Name stylization
The name Maruti is simply written below its logo without much style to make it look like car for common man. Brand launch and implementation planning
In 1982 Maruti Udyog signed a license and joint venture agreement with the Suzuki Motor Corporation of Japan. In 1983 the company launched the Maruti 800, a rebadged version of the first generation Suzuki Alto. Gypsy was launched in 1985 and this replaced the old Mahindra Jeeps that were given to police force in India. The Zen, a 993 cc hatchback car, was produced in 1993. In 1995 an upgraded version of the Maruti 1000, called the Esteem, was introduced, originally with either 1.3 liter petrol or a 1.5 liter diesel engine. The three cylinders, 796 cc petrol powered, Alto model was introduced in 2000. It had a top speed of 130 kph (81 mph). WagonR was launched in 2005. Swift(2005), Estilo(2009), SX4(2007), Swift DZire(2008), A-Star(2008), Ritz(2009) and Eeco(2010) was launched subsequently. Grand Vitara(2007) was only vehicle that was imported by Suzuki and sold in India. Maruti Suzuki has two state-of-the-art manufacturing facilities in India on at Gurgaon and 27
another on at Manesar. Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades. Brand & product strategies
Maruti is the biggest brand of India in automobile sector with market share of almost 40%. Suzuki strategies mainly targeted at smaller car segments and it is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Maruti Suzuki has been the leader of the Indian car market for over two decades. More than half the cars sold in India are Maruti Suzuki cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is owned by the public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India. Suzuki’s technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient. It keeps phasing out the older models to pave the way for newer model as one of its major strategies. It has formed joint venture to gain technologically experience of other big automobile companies.
Discontinued car models 1000 (1990–1994), Zen (1993–2006), Esteem (1994–2008), Baleno (1999–2007), Zen Estilo (2006-2009), Versa (2001–2010), Grand Vitara XL7 (2003–2007). To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002. Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan.[18] Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic partners in car finance. Again the company entered into a strategic partnership with SBI in March 2003[19] Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available in 166 cities across India. Brand building programs
As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving 28
School in Delhi. Later the services were extended to other cities of India as well. Maruti Suzuki is one of the companies in India which has unparalleled sales and service network. As of June 2010 it currently has 800-plus dealerships across more than 500 cities in India. It plans to expand total number of dealerships to 1,000. Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited. This service started as a benefit or value addition to customers and was able to ramp up easily. By December 2005 they were able to sell more than two million insurance policies since its inception. Maruti True service offered by Maruti Suzuki to its customers. It is a market place for used Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help of this service in India. As of 2009 there are 315 Maruti True Value outlets. Brand Maturity
The Maruti Suzuki India Ltd is growing phase though it has lost some market share in recent years. It has huge potential to tap the Indian and other markets with its state of art facilities. Though it is market leader in lower or smaller car segment it has long way to go in upper or higher market segments. It Need to explore all the areas of growth to make it remain in maturity phase for longer periods.
Revolutions & mitigating the crisis
Relationship between the Government of India, under the United Front (India) coalition and Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian media till Suzuki Motor Corporation gained the controlling stake. This highly profitable joint venture that had a near monopolistic trade in the Indian automobile market and the nature of the partnership built up till then was the underlying reason for most issues. The success of the joint venture led Suzuki to increase its equity from 26% to 40% in 1987 and further to 50% in 1992. In 1982 both the venture partners had entered into an agreement to nominate their candidate for the post of Managing Director and every Managing Director will have tenure of five years. Pressure started mounting on Indira and Sanjay Gandhi to share the details of the progress on the Maruti Project. Since country's resources were made available by mother to her son's pet project. A delegation of Indian technocrats was assigned to hunt a collaborator for the project. Initial rounds of discussion were held with the giants of the automobile industry in Japan including Toyota, Nissan and Honda. Suzuki Motor Corporation was at that time a small player in the four wheeler automobile sector and had major share in the two wheeler segment. Suzuki's bid was considered negligible.
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Conclusion and inference
In the light of the article which talks about the building of peoples car i.e. Maruti 800 which became the nation car and broke all the records for sale of car in India. It gained 70% of market share in no time leaving its competitor far-far behind. The Maruti was product which helped in creating the Brand Maruti and made it most reliable car for the masses. It won all the automobile awards in late eighties and early nineties. Till date is most sold car in Asia. It was very emotional decision for the SMIL to stop production of Maruti 800 w.e.e from 12th Feb 2010. It was truly people car and at one time the biggest brand of our time. Though it didn’t reach it true decline phase but had to be withdrawn to pave the way for new cars.
References
http://www.vector-logos.com/logo-en-43061.html http://en.wikipedia.org/wiki/Maruti_Suzuki http://www.marutisuzuki.com
http://www.carhistory4u.com/the-last-100-years/car-manufacturers-bycountry/india/maruti-udyog
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