Chapter 1 Introduction

1.1 India after Liberalization (After 1991) In the year1991, the new economic policy was announced by the Government of India. The economic reforms of 1991 abolished Industrial Licensing. This was done to remove the bottlenecks in the Industrial production. In case of steel and cement there was a rise in production in the post reform period. The reforms allowed foreign direct investment and encouraged free market economy. The LPG (Liberalization, Privatization and Globalization) policy has given a wider scope for enhancement of the secondary and tertiary sector. After the year 1991 gradually the areas which were reserved for the public sector unit, opened to foreign investment. Also foreign direct investments were allowed in certain priority sectors. LPG model of economic development emphasizes a larger role for the private sector than the public sector units. The policies were formulated to make India a favored destination for foreign investment. The policies were such to make India more of an export economy. Also the policies superseded an agrarian economy to move towards an Industrial and service sector economy.

There was a shift from a saving economy to a spending economy. The needs of the customers also changed. At the same time there was a rise in the Information Technology

sector and Automobile sector. The reforms led to a higher growth rate. The GDP growth rate was 5.2% between 1980-81 and 1990-91. It was 5.6% in 1990-91 to 2000-01. The GDP increased to 7.6% between the years 2000-01 to 2006-07.

Growing Automobile sector

The potential Passenger Car market (Four wheelers) in India is the second largest in the world and likely to grow at a fast rate. If the car ownership in the western world is compared with that of India, in the USA the ratio is 842 per 1000 as of 2007 while in India it is only 12 per 1000 as of 2007. In the year 2007 in developing countries the ratio of car ownership is as follows in table 1.1.

Table 1.1 Sr. Name of the No of No Country vehicles per 1000 people 1 Brazil 156

2 Russia 213

3 India 12

4 China 128

5 Morocco 53

6 Honduras 11

7 Sri Lanka 25

8 Egypt 30

9 Pakistan 08

10 Peru 44

(Source: www.nation master.com)

The majority of established car makers globally have already set up base (MarutiSuzuki, Hyundai General Motors, Mercedes Benz, Fiat, Volkswagen and Nissan), to take advantage of the opportunities of the world‟s largest four wheeler market.

The engineering of the TATA Nano as the world‟s cheapest car hitherto considered impossible has opened up a new segment in the year 1999.

Before 1985 there were only two or three brands in India viz; Ambassador,Premier Padmini and the Standard. In the post liberalization period a number of foreign players entered in the market via the Joint venture route.

In 1998 after the launch of the TATA Indica an Indian car manufacturer, the market really picked up steam. Since 1998 the Indian consumer has become more sensitive to what the competition has to offer and because of the increased purchasing power has a wide range of products to choose from. Also there is increased awareness regarding the Quality features and the price of the product.

More Demand in Metropolitan Cities

The consumer preferences in rural and urban India are different as the preferences, income level and infrastructure are different. With the growth in the IT Sector and disposable income the aspirations of the urban young to own a four wheeler have also increased. Due to poor and uncomfortable public transport systems, customers with high disposable income prefer to use own four wheeler. Along with this in the Metropolitan cities, there was a growth in the service sector. E.g. Mumbai is a hub for the

financial sector or Bangalore is an IT hub. People were drawn to these cities for better opportunities and better income. Due to longer distances in the Metropolitan cities, owning a car is a prime necessity. It is also considered as a status symbol.

Fig 1 India Map PUNE CITY

Maharashtra Map Fig 2

Pune District Map Fig 3

Fig 4 Pune City Map

Pune District

Pune (District) is situated in the state of Maharashtra. Pune city is the district headquarters. In the most recent census on 2011, the total population of the district was 9,426,959, making it the fourth most populous district in India. Urban population comprises 58.08% of the total population. The current population of Pune urban agglomerate is over 5 million.

Pune City in the State of Maharashtra; Becoming an Auto Hub

Pune is situated in the Western part of the state of Maharashtra. Pune is the ninth most populous city in India and the second largest in the state of Maharashtra after the state capital city of Mumbai. Pune is also the 101st largest city in the world, by population.

It is situated 560 metres (1,837 feet) above sea level on the Deccan Plateau, on the right bank of the Mutha river. Pune city is the administrative headquarters of the Pune district and was once the centre of power of the Maratha Empire established by Shivaji Maharaj.

Pune is considered the cultural capital of Maharashtra. Since the 1950s and 1960s, Pune has a traditional old- economic base. Most of the old industries continue to grow. The city is also known for its manufacturing and automobiles industries, as well as for research institutes of information technology(IT), education, management and training, which attract migrants, students, and professionals from India, South East Asia, the Middle East, and Africa. Pune is also one of the fastest growing cities in the Asia Pacific region. The „Mercer 2015 Quality of Living rankings‟ evaluated local living conditions in more than 440 cities around the world where Pune ranked at 145, second in India after Hyderabad (138) It also highlights Pune among evolving business centers and emerging 9 cities around the world with citation "Hosts IT and automotive companies".

The Kirloskar group was the first to bring industry to Pune by setting up Kirloskar Oil Engines Ltd. in 1945 at Kirkee in Pune. The Group was originally set up in Kirloskarwadi, Kirloskar Brother‟s Ltd (India's largest manufacturer and exporter of pumps and the largest infrastructure pumping project contractor in Asia), Kirloskar Oil Engines (India's largest diesel engine company), Kirloskar Pneumatics Co. Ltd., and other Kirloskar companies are based in Pune. This

was followed by Hindustan Antibiotics and Tata Motors Ltd in the 1960‟s and 1970‟s.

”Pune has metamorphosed into a cosmopolitan city. It is known as the Oxford and Detroit of the East. Pune is the cultural capital of Maharashtra and education hub and at the same time is at par with any modern city in India, with westernized influence. Pune has a varied mix of industries and one of the major automobile as well as IT hub in India. Pune has the highest number of software companies in India 212 followed by Banglore 208 and Hyderabad 97. Hence it is called as the “Silicon Valley of Maharashtra. Pune is the only city in India where there are seven Universities. Savitribai Phule Pune University is the epitome of knowledge and hence Pune city has inherited the name Oxford of the East.

Pune also is a center of government offices and bodies of national and international stature. Viz. NCL, DRDO, NDA, NCCS, CIRT, NIV, IAUCCA, ARDE.and also home to major defense installations. Hence the consumers in Pune have high cultural values, they are knowledgeable and matured. They are well informed consumers.

People from different parts of India are migrating to Pune for better job prospects. Pune has only 28% local people(i.e. Marathi). Hence a true cosmopolitan city with around 15% North Indians, 10% Tamilians, 12% Telguites, 10% Keralite, 8% Foreigners (Koregoan Park), 12% Bengalis and 5% a mixture of all. Now Pune has grown into a major Industrial hub.

Therefore the study intends to investigate consumers in Pune Industrial belt, as it would represent the fairly modern, urban Indian society.

Definitions and Meanings

Passenger Cars :A passenger car is a road motor vehicle, other than a motor cycle, intended for the carriage of passengers and designed to seat no more than nine passengers. The term "passenger car" therefore covers micro cars (need no permit to be driven), taxis and hired passenger cars, provided that they have fewer than ten seats. This category may also include pick-ups.

Classification: Cars may be classified by a number of different criteria and objectives. However, comprehensive classification is elusive, because a vehicle may fit into multiple categories, or not completely satisfy the requirements for any. This article details the commonly used classifications and definitions. There are numerous ways of categorizing passenger vehicles. Where applicable, the equivalent Euro NCAP classifications are also used. Numerous jurisdictions establish vehicle classification systems for tax purposes according to their construction, engine, weight, type of fuel and emissions, as well as the purpose for which they are used. Microcars : Straddling the boundary between car and motorbike, these vehicles have engines under 1.0 liter, typically seat only two passengers, and are sometimes unorthodox in construction. Some micro cars are three-

wheelers, while the majority have four wheels. Micro cars were popular in post-war Europe, where their appearance led them to be called Bubble Cars”. More recent micro cars are often electric powered.

Ultra compact car: In the year 2012, Japan Transport and Tourism Ministry allowed local government to use ultra- compact cars as transport for residents and tourists in their limiting areas. The size of ultra-compact car will be less than minicars, but has engine greater than 50cc displacement and capable for one or two person(s). Ultra compact car cannot use minicars standard, because of strict safety standards for minicars. The regulation about running capacity and safety performance of ultra compact car will be published in early autumn. Today, there are cars smaller than ultra compact cars and called as category-1 motorized vehicles which it has 50cc displacement or less and only one seat for the driver.

City Car: -A city car is a small automobile intended for use in urban areas. Unlike micro cars, a city car's greater speed, capacity and (in perception at least) occupant protection are safer in mixed traffic environments and weather conditions. While city cars can reach highway speeds, that is not their intended use. In Japan, city cars are called Kei cars. Kei cars have to meet strict size and engine requirements. Engines have a maximum displacement of 660 cc and the car's length must be less than 3400 mm.

Family Car: - Small family/compact cars refer to the hatchbacks and shortest saloons and estate cars with similar size. They are approximately 4250 mm long in case of

hatchbacks and 4500 mm in the case of saloons and estate cars. Compact cars have room for five adults and usually have engines between 1.4 and 2.2 liters, but some have engines of up to 2.5 liters. These are the most popular vehicles in most of the developed countries.

Hot hatch: - A hot hatch is a high-performance hatchback, based on standard super minis or small family cars with improved performance, handling and styling. Hot hatches are very popular in Europe, and originated from the Volkswagen Golf GTI in North America, sports compacts are usually sold as saloons or coupés rather than hatchbacks. Examples of hot hatches/sport compacts:1) Citroen Saxo VTR 2) Honda Civic Type R 3) Volkswagen Golf GTI

Saloons/ Sedans/Large family / mid-size:-A class described as "large family" in Europe and "mid-size" in the USA, these cars have room for five adults and a large trunk (boot). Engines are more powerful than small family/compact cars and six-cylinder engines are more common than in smaller cars. Car sizes vary from region to region; in Europe, large family cars are rarely over 4700 mm long, while in North America, Middle East and Australia they may be well over 4800 mm.

Compact executive: -These are luxurious equivalents to mid-size and compact cars. Rear seat room and trunk space are smaller than executive cars simply because of their smaller overall size. Examples- compact premium cars/entry-level luxury cars.

Full Size/Large: -This term is used mostly in North America, Middle East and Australia where it refers to the largest affordable sedans on the market. Full-size cars may be well over 4900 mm long. e.g. full –size cars like DodgeCharger, Chevrolet Impala, Holden Commodore

Executive/Mid Luxury: -These are luxurious equivalents to full-size cars. This also refers to the largest hatchbacks within the similar length in this class, such as the Porsche Panacea. Examples of executive cars/mid-luxury cars are: Chrysler 300, Jaguar XF, Mercedes Benz E class

Full-size luxury / Grand saloon: -Also known as full-size luxury cars, grand saloons, or premium large cars, while "Oberklasse" is used in Germany,typically a four-door saloon (sedan). These are the most powerful saloons, with six, eight and twelve-cylinder engines and have more equipment than smaller models.Examples of grand saloons are Audi A8, Cadillac XTS, Mercedes Benz S Class

Sports Utility Vehicles: - Sports utility vehicles are Off- Roaders, with four-wheel drive and true off-road capability. The common feature is high ground clearance and an upright, boxy body design. Sport Utilities are typically defined by a body on frame construction which offers more off-road capability but reduced on-road ride comfort and handling compared to a cross-over or car based utility vehicle.

Crossover SUV: Crossover SUVs are derived from an Automobile Platform with light off-road capability and lower ground clearance than SUVs. They may be styled

similar to conventional "off-roaders", or may be look similar to an estate car or station wagon..Examples of crossover SUVs are Tata Aria, BMW X5 and Chevrolet Equinox

Market Segment: -Market segmentation is defined as the identification of subsets of buyers within a market who share similar needs and who have similar buying processes. A market segment consists of a group of customers who share a similar set of needs and wants. In the car segment one can distinguish customers by their wants e.g. people wanting low cost transportation, those seeking driving comfort and those seeking driving skills and performance. The marketer does not create the segments. It is the marketer‟s task to identify the segments. The marketers can then identify the segment based on following factors a) Demographic:-In demographic segmentation the marketer studies the population characteristics like age, gender, house hold composition. b) Socio- Economic: - It is an individual‟s perception about his own class that determines his buying behavior. e.g. Occupation, Income, tax bracket in which the individual falls. c) Psychological basis for segmentation: These are the unique personality traits or factors that distinguish one person from other. The lifestyles of different persons may differ although they may be in the same age group. Attitudes which are more difficult to identify. Values which sociologists have distinguished as a higher level of individual distinctiveness, Values are goals, standards,

norms, rules ideals. Benefits sought: The same product may have different uses to different people. e.g. a watch may have a basic function of timekeeping for one person while for others it may have a esteem value d) Geographical: Here the segmentation is done on the basis of geography which would have a typical climate e) Geo-demographic :- This combines a geographical segment along with other factors like social, economic and demographic f) Situational basis for segmentation:- A further group of segmentation is situational and in the form of 1) Stage in the buying process 2) Occasion of use and 3) Frequency of buying

Buyer:-A buyer is the decision making unit who is at the center of the marketers study. A buyer is a single unit of the market as a whole. It is the buyer who falls into a particular segment. The buyer makes the decision to buy a product based on his preferences, his needs and wants and how he is influenced by the marketer in terms of advertising, promotions. It is the buyer based on his own psychology and value system may get affected by peer pressure to buy a product.

Behavior: Buyer behavior is the study of the decision maker who is buying the product. It has different dimensions and factors that have an effect on the buyer.e.g. The factors motivating an individual to seek out a purchase. The sources of information, the buyer refers to while buying a product. What is the relative importance attached by decision makers to each of the elements of the product

offer. Who is involved in the buying decision, how can the marketer influence the subsequent buyer behavior and so on. Consumer preference depends on many varied characteristics and conditions. They could be Socio economic, Techno commercial, Socio cultural, Socio Psychological and based on political geographical conditions. The consumer behavior also depends on the Social Upbringing of the person. The consumer behavior can vary with time based on the socio economic condition of the person. Consumer behavior may vary as the age advances, or when there is an improvement in the economic condition of a person. Consumer behavior can also differ based on geographical zones. Consumer behavior at times is influenced by the nationality of the consume visa vis the "Country of origin" of the car manufacturer.

Perception: -Perception is the way one receives information about product, process or service and the way the information is evaluated. A buyer may fail to perceive the information because it fails to attract our attention. A buyer may perceive the information but may distort its contents. The buyer may perceive the information and then forget it. In this case it is known as selective retention. There is evidence that the buyer who is a receptor requires some minimum level of energy (absolute threshold) to excite it, the perception is organized. As well as the absolute threshold, there is a differential the threshold which is the smallest amount by which the two stimuli must be different in order to be perceived different. The thresholds could be different as they are influenced by

education, upbringing, the influence of reference groups, motivation, personality and attitudes affect the perception. Even if the buyer pays complete attention, understands it and remembers it, comprehension may still be different from the message which the communicator wants to communicate. The perception distortion can be caused because of the communication noise, poor encoding of the message. This also may happen due to a poor communication strategy.

Product Feature:- A product feature is something which exists to satisfy a need. At the core level consider the item and identify the key benefit the ownership of the product will offer to the customer or owner of the product. In other words, whether the product satisfies the basic need of the customer at the core level. At the secondary level the product possesses physical features like color, design, texture, function, shape, size and packaging. At the augmented level the product differentiates itself from its competitor in terms of function, aesthetics. Also there could be intangible features like credit facilities, guarantees, brand name etc. Quality is an important feature of the product and consumers or buyers always compare the price to quality ratio. Quality is a difficult concept to define. Primary definition is confirming to specification. While as per “Juran” it is fit for function. However again it is based on customer evaluation of the product. A company may think it has the best in class quality but customer perception may differ.

A feature may also include a functional feature like life of the product and reliability which may differentiate it from other products. In the modern context with more emphasis on green products the product may be judged by the consumers in terms of its re-cyclibility and eco friendliness

Pricing:- Pricing of a product is a key element in achieving high sales volumes or profitability in the market. Pricing decision depends on the market conditions and also the nature and type of competition. i.e. Whether the firm is operating in a condition of oligopoly or monopoly or monopolistic competition. Also it depends on the type of competitor products and market sentiment. Pricing decision of a firm also depends on the supply demand condition. What customers are prepared to pay represents the upper limit to a company‟s pricing possibilities. Different customers put different price ceilings on the price, which they are prepared to pay to buy the product. Hence successful demand oriented pricing depends on effective segmentation of markets and discrimination which achieves the maximum price from each segment. Sometimes price discrimination can be achieved between different groups of buyers by offering the same product at different price points based on some services. However to be sustainable the price discrimination should be offered with slight changes in the product offer. Price discrimination by point of sale: - Some companies charge different prices in different places. The reason for this change can be a combination of cost factors. Price

discrimination for services is more effective than that for goods Price discrimination for type of use: - A similar product can be brought by different people to satisfy or fulfill different needs. .e.g. hotels offer special lunch time menus for business people at a cheaper price which are different from the menus offered in the evening for social meals at a higher. Normally when a company has developed a distinctive product it becomes a price maker than a price taker. The pricing behavior will be influenced by its organizational objectives. Pricing strategy contributes to a firm‟s competitive advantage. However pricing must be closely associated to a firm‟s product policy.

Services: The modern definitions of services focuses on the fact that a service in itself produces no tangible output although it may be instrumental in a process leading to the production of some tangible output Service can also be defined as any activity or benefit exchanged between individuals or organizations which is essentially manageable and does not result in the ownership of anything. A service may exist in its own right or may form part of a tangible product. Intangibility is a key word which describes a service. Pure services have a number of distinctive characteristics that differentiate them from regular products. These are Intangibility, Inseparability, Variability, Perishability, and the impossibility of being owned.

Most of the products we buy are a combination of goods and services. e.g. the cars today are traditionally been seen as goods but today they are sold with considerable service benefits like an annual maintenance contract, extended service warranty or a financing facility. The idea of a manufacturer selling a tangible item and then not having any dealings with the customer until he is ready to replace it in a rapidly disappearing approach to the marketing of cars.

Brand: A brand is a distinguishing name and/or symbol (such as logo, trademark, or package design) intended to identify the goods or services of either one seller or a group of sellers, and to differentiate those goods or services from those of competitors. A brand is the amalgam of the physical product and the notional images that go with the brand. A brand especially in case of the automobile market depicts loyalty for a consumer in terms of the car he or she uses. So a brand actually is a pictorial image of the attributes associated with a product in terms of functionality or what the manufacturer wants to communicate.

Brand Image: Brand identity is a unique set of brand associations implying a promise to customers and includes a core and extended identity. Core identity is the central, timeless essence of the Brand identity. Core identity is the central, timeless essence of the brand. To be effective a brand identity needs to resonate with the customers in differentiating the brands from competitors and emphasize on what the products or the company stands for. A brand

image should be well thought off, groomed and fiercely guarded against opposition. A brand is a distinctive identity that differentiates a relevant, enduring, and credible promise of value associated with a product, service, or organization.

Niche Market: A Niche is nothing but a small market consisting of an individual or a small group of customers having similar needs. As per the definition provided by "Staton" Niche is a method to meet customer needs through tailoring goods and services for small markets. It is assumed that segmentation is a starting point of niche marketing. It is a highly specialized market in terms of product features, functionality etc. at a high cost where in the market volumes are less but the unit price is normally high.

A niche is usually characterized by following three ways.

a) A niche is usually smaller in size compared with the size of a segment.

b) A niche focuses on individuals – in a segment we focus on a so-called homogeneous group.

c) A niche fulfills a specific need in contrast to a segment where the emphasis is on being a manageable part of the market.

Kotler suggests that the key idea in Niche is specialization and characterized by following ways.

 End user specialization;  Vertical-level specialization;

 Customer-size specialization;  Geographic specialization;  Product or product-line specialization;  Product-feature specialization;  Job-shop specialization;  Quality/price specialization;  Service specialization;  Channel specialization.

Financial Aspect:- From the consumer‟s point of view finance or money power is important. Although the consumer may have a specific preference while buying a specific product it will also depend on his financial resources and also the relative price point at which the product is offered.

In today‟s world of consumerism, the decision will also depend on the easy availability of finances. Also the terms and conditions of loans, interest rate, equated monthly installments etc. Hence finance is an important factor while making a buying decision.

Engine Features:The engine is an unknown entity as far as customer is concerned. An abstract entity covered by the hood of the vehicle The Customers are not be well versed with the actual construction of the engine but by the output of an engine in terms of acceleration, Power, Top speed , Fuel efficiency, Type of fuel used which translates into the operating cost of a vehicle.

Aesthetic Features:

One can define aesthetic features as the features associated with appearance and looks of a vehicle. These features include the color of the vehicle, glossiness, texture of the seats, color combination of the seats cockpit etc. Whether the material used for seats is leather, the texture and appearance of the cockpit, style and shape of the vehicle which makes the passenger car attractive in terms of style.

Demography: Demography is the composition of a particular population in terms of religion, ethnicity caste, creed etc. Also the type of income groups making up the population of a particular region, city, state or country.

Culture: The culture of a particular country also decides the consumer behavior in that country. For example in some countries the culture is more traditional and people are more spend thrift. This may result in consumers preferring cheap vehicles and may not go for vehicles with high esteem value which may be more expensive.

The culture of a particular region, nationalistic attitudes which may drive sales of products manufactured from the same country. On the other hand foreign manufacturers may be at a disadvantage. Also the companies may have to alter or change their products to suit the culture in a particular country. This is normally seen in case of food brands.

Advertising: Advertising is a communication tool used as a medium to make the consumer aware of the product and plays an important role in making the consumer aware of the product. The medium used could be in print in the

form of newspapers, magazines, technical reviews, hoardings. Normally, radio or audiovisual, where the Television is a powerful tool. The widespread use of internet E advertising on the World Wide Web and social media sites have become an important medium to advertise especially for the young consumers who are more techno- savvy than their predecessors.

Promotions: Promotional strategies are used by marketers to lure the consumers in buying the product. Promotional strategies include giving freebees to customers and force them to make a decision in buying their brand of product. For e.g. case of cars giving Zero interest loans or a 5 year warranty policy, one year insurance free or giving accessories free with the vehicle are some of the examples of promotion. These are normally followed in a sluggish market or in a fiercely competitive market to win market share. Promotional tools include personal selling, advertising, public relationship, sales promotion, sponsorship etc.

Green environment friendly: -The technologies used in vehicles which are environment friendly, reduce emissions harmful to the environment and all living organisms. Catalytic converters to reduce emissions or hybrid cars which are a mix of an internal combustion engine and battery power or electric vehicles are examples of Green technologies. These technologies are expensive. However with the growing awareness of Greenhouse gases resulting in global warming and also the awareness amongst the young population to embrace these technologies, car

marketers are promoting and advertising their products by incorporating these technologies in their products.

The changing consumer behavior and psychology:-

Today the Indian consumer is bombarded by the latest news about products and the features which are offered. Also the Indian consumer has now embraced the philosophy of consumerism and extravagant spending. Gone are the days of the conservative consumer who is more inclined to weigh his choices by means of the price of the product. The Indian middle class is ready to spend more money to satisfy his needs.

Changing economic environment at the micro level:-

At the micro level the Indian middle class has considerable disposable income, coupled with easy availability of finance which has resulted in a rise in consumerism which is moving away from an attitude of saving the money in a conservative manner.

Players in the Indian Car market:-

Before 1991 that is pre-liberalization period there were only three car manufacturers in India. Premier automobiles, Government owned Hindustan motors and the number of models was also less restricted to one per company. The third one was Maruti Udyog Ltd who partnered Japanese automobile maker Suzuki to launch the Maruti 800.

Hence between 1984 to 1991 the Indian consumers had only three choices HM, Ambassador, Premier automobiles – Premier Padmini and MUL – Maruti Udyog. There were

hardly any launches of vehicles with HM launching the Contessa and Premier automobiles the Fiat 118 NE.

Post liberalization saw the entry of Ford, Toyota, Daewoo, Volkswagen to setup manufacturing base in India. The following table 2 shows there is a vast scope for car manufacturers in India.

Current Countrywise data for Number of cars owned per 1000 persons

Table 1.1

No. of cars per 1000 Sr. No Name of the Country persons 1 Brazil 259 2 Russia 271 3 India 18 4 China 85 5 Morocco 70 6 Honduras 97 7 Sri Lanka 47 8 Egypt 43 9 Pakistan 13 10 Peru 68

(Source-www.Lubrita.com).

The above table shows the Country-wise number of cars per 1000 persons in the year2014.The table reveals that the figure for India is far less as compared to the BRICS country. Hence there is a large untapped market potential

In view of the fierce competition in the Indian car market, the marketers will have to implement novel promotional schemes, designers will have to design new innovative products keeping in mind the price point at which the car will be sold. Also new trends in the socio-economic and regulatory conditions will have to be forecast and the strategies will have to be planned and executed accordingly.