1.

Automobile Industry

With the changing economy of India, Automobile Industry in India also has taken a steep

curve of growth. Today automobile industry in India acts as the primary segment for

employment leading to economical stability. From the first car running in Mumbai’s street,

today Indian Automobile Industry has come a long way. Today Indian automobile industry is

coined as one of the world’s largest industry and at the same time fast growing. The

automobile industry serves a wide range of vehicles, like mass transportation to cars and

trucks etc.

Buses in Automobile Industry

Buses form a major section in automobile industry. With the advanced technology bus

industry has come a long way. Today bus is just not the means of transportation; it targets our

comfort level and status. With the economy reforms of India as the basis and also the increase

in commuter base foreign companies have started to invest in Indian bus industry. Volvo has

already set its mark in luxury bus sector of India. And the recent player in market is very well

known Mercedes with its high class buses.

For our study on market mix, we have considered the Volvo B7R and Mercedes Benz Citaro
make.

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 2. Need & Want Analysis
The rapidly growing middle class in India has changed the transportation trend. Basic need of

transportation is defined in terms of reliability, comfort, safety and luxury. An ordinary city

bus has been replaced by a more comfortable, luxurious and safer bus. A reliable and robust

mass transit system is imminent in India. As the cities are developed in a way which requires

the corporate employees to travel a good deal of distance for their work, the need of these

high class buses is become a prime need.

The passengers are looking forward for the next level of luxury in terms of more advanced

technology and also safety. Few of them are a special women only buses, new wireless

interior facilities, an automated indication system for required bus stops, an automated system

for helping the passenger to take daily (or short term) bus passes. The last that we would like

to state is a better ambience, which all of us look forward to.

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 3. Volvo
The Volvo Group is a publicly held company headquartered in Gothenburg, Sweden. In 1999

Volvo divested of its car division to Ford Motor Company. Using some of the proceeds of the

sale, in 2001 Volvo acquired Mack and Renault Trucks becoming the largest producer of

heavy duty diesel engines in the world. The Group now holds leading positions in each of our

business areas which include heavy trucks, buses, construction equipment, marine and

industrial drive systems and aerospace engine services.

Volvo buses have already made a mark as the world’s largest manufacturer of busses and bus

chassis. Volvo Buses comprises city buses, intercity buses and tourist coaches. In India

Bangalore was the first to introduce Volvo city buses, which in fact was a great success.

Volvo B7R Marketing Mix

Product

Volvo B7R is promoted as a rear engine lightweight coach. Its good design, look and better

road presence has supported Volvo in its market share. It has a low floor access. The other

characteristics are cushioned seats, disc breaks that ensure passengers are not jerked forward,

electronic systems that provide vehicle data to the drivers, fully air-conditioned, complaint

with Euro – III environment norms, kneeling mechanism for the aged and physically

challenged, and wide pneumatically operated doors. The seating capacity is 40.

The riding comfort is provided by full air suspensions, which effectively compensates for

irregularities in the road surface and offers a high degree of ride comfort. Stabilizers are fitted

as standard on both the front and rear, minimizing the tendency to roll over. 

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Price

Volvo B7R has entered the Indian Market with a price of 40 lakhs. This huge price when

compared to already existing models like, Ashok Leyland, in the segment is justified

considering the operating cost distribution. Keeping in mind the fuel efficiency of B7R the

fuel cost comes to 30 percent of the total operating cost while in other buses it comes around

40 – 45 percent.

Place

Volvo B7R is targeted for the cities of India. The first city to introduce B7R was the IT hub

Bangalore. Now B7R is covering a large area with all major cities in its list. In s very short

period Volvo has made its image in Indian bus segment.

Initially Volvo B7R chassis are built by AZAD. After Volvo has started its own body plant in

India, Volvo is the only company whose complete manufacturing is done in India. The idea it

is to increase flexibility with regard to production capacity and to further improve quality.

Also Volvo is planning for its expansion in India.

Below listed are the dealers in India:

 Bangalore – Lathangi Automobiles (P) Ltd.

 Hydrabad – Sri Harsha Automotive Services (P) Ltd.

 Nagpur – Fieldspares Sales & Services (P) Ltd.

 Udaipur – Drillcon (Raj) Pvt. Ltd.

 Cohin – Vista Driveline Motors (P) Ltd.

 Dhanbad – Infra equipment (P) Ltd.

 Goa – Paulo Auto Body Builders and Servicing Pvt. Ltd.

 Panchkula – Kranacx Pvt. Ltd

 Delhi – BNT Motors

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Promotion

As promotional activities Volvo organizes seminars quite frequently. One such seminar is the

Sustainable Mobility Indo – Swedish perspective which was held at Bangalore and Delhi.

Another example is Auto Expo 2008 organized in New Delhi. Volvo had a stall where it

showcased its city buses, trucks etc.

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 4. Mercedes Benz
Mercedes Benz is a German based company, very well known for its automobile

manufacturing. Mercedes Benz has positioned itself with its key measures of durability and

reliability. Mercedes has been manufacturing vehicles with advanced technology. Mercedes

Benz is the pioneer of featuring its vehicles with the Safety airbags, anti-lock brakes and the

traction control system, in the world. Mercedes Benz has entered Indian market with its

luxury bus recently. The body is built by Sutlej Motors, Jalandhar, however the coach is built

on the versatile O 500 R / RF chassis from Mercedes-Benz.

Mercedes Benz Citaro marketing mix

Product

The intercity bus has low floor for easy access. It has one passenger door with pneumatic

type. Passengers are given other facilities like the seat rear have magazine net, grab handle

and a bottle holder. It also provides speakers, AC control and lights for every passenger. It is

also highly customizable. The seating capacity is between 34 – 40.

Also the Mercedes Benz Citaro has two models targeting for urban model and Suburban model.

Operators have the options of choosing between two different front stylings: the standard design

features an angled destination display and is primarily marketed for urban buses, while a version with

a one-piece windscreen covering the destination display also is available and is primarily intended for

interurban use. However, all models are available with either version.

Other customizations include the number and type of doors as well as the internal layout. Two

types of seats are offered as part of the standard range, again with a basic model for urban use

and an enhanced version for longer-distance routes, although both also are available on all

models. Aside from the usual diesel engines, the Citaro is also available with a powerful

Euro IV natural gas engine. All of the Mercedes-Benz Citaro engines deliver impressive

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pulling power, even at low engine speeds and when the bus is full, which is vital for pulling

away quickly in urban traffic.

Price

The Citaro is likely to be a little expensive for Indian market with a cost of 80 lakhs. The high

cost is again due to buses built against specific orders.

Place

The first customers of Mercedes Benz intercity buses in India are Sharma Transports from

Bangalore, Neeta Tours and Travels from Mumbai and Konduskar Travels from Kolhapur.

Mercedes Benz is focusing on cities like Mumbai, Pune, Ahmedabad, Goa, Bangalore,

Hyderabad and Chennai.

The dealer network of Mercedes Benz buses in India:

 Mumbai – Auto Hanger,

 Bangalore – Advaith Motors

 Ahmedaba – sealand Infrastructure

 Hydrabad – Mahaveer Commercial Auto

 Jaipur – sealand infrastructure

 Pune -BUB

Promotion

Mercedes-Benz has been associated with India for more than 50 years. Presently, Mercedes-Benz

India’s engagement in India covers several domains starting from cars to buses and trucks. With the

present brand image of Mercedes Benz, the intercity bus Citaro is launched into the Indian bus

segment. Also Mercedes Benz is involved in some oriented programs across India, such as Bio fuel

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from Jatropha, Road safety project for children, automotive education etc. Mercedes Benz quotes

travelling in Mercedes Benz buses would be “travelling with star”.

5. Comparison b/w the marketing mix of Volvo B7R &

Mercedes Citaro

Both Volvo B7R and the Mercedes Benz Citaro are at par for their features, facilities

available. Hence the comparison between them is narrowed down to only price and

promotion basis. Also as Mercedes Benz is in its budding stage in Indian Bus segment the

area coverage is less when compared to Volvo B7R. We have listed down few of the

differences below.

1. Place: Volvo has an extensive network of its sales and service centres.

2. Price: The Volvo B7R has a lower price, of 40 lakhs, when compared to the 80 lakhs price

quoted for Mercedes Benz Citaro.

3. Product:

a. Mercedes Benz Citaro leads in the advanced technology facilities against Volvo B7R.

b. The seats arranged in Mercedes Benz are more flexible than Volvo B7R.

c. Mercedes Benz Citaro is hybrid, in its engine made for the usual diesel fuel and also

natural gas.

4. Promotion:

Volvo B7R reaches its customer in India with the help of its promotional activities like

conducting seminars. However Mercedes Benz Citaro has used present market image of

Mercedes Benz to introduce itself into the market.

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 6. Recommendations

From my analysis on marketing mix of both Volvo B7R and Mercedes Benz Citaro, it’s seen

that Mercedes Benz is new to Indian Bus segment. Where in Volvo has taken the advantage of

being the first player in the market and captured a good image in the market. This gives

Mercedes Benz a tough competition. For this purpose Mercedes Benz should look into

increasing their sales and service centres throughout India. Easy access to information and

other services would encourage the customers.

The other side of marketing is Promotional activities. Mercedes Benz in its initial stage in bus

segment in India should uplift its promotional activities. This would help in attracting

customers from not only few Governmental and travel agencies of major cities, but also a

bigger coverage of travel agencies.

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7. Bibliography

 http://business.mapsofindia.com/india-industry/bus.html/2010-12-04.

 http://www.businessworld.in/bw/2010_01_06_MercedesBenz_Luxury_Bus.html/2010

-12-07.

 http://autonews.indiacar.com/news/n2409.htm/2010-12-07

 http://www.thefreelibrary.com/Volvo+Inaugurates+New+Bus+Plant+in+India.-

a0174051536/2010-12-06

 http://www.motorindiaonline.com/2010/02/mercedes-benz-offers-next-

generation.html/2010-12-07

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