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Acknowledgement Project Report On Sales organization of BENTLEY in India SSUUBBMIITTTTEEDTT OO:-- SSUUBBMIITTTTEEDBB YY::-- PPrrof. NNausshad Maliik Abhhiseek Swaain Faculty of Sales & Distribution Mgmt. Adarsh Tyagi IIIILLM ((GGSSM)), GGRREEAATTEER NNOOIIDDAA RRaakkeessh KKhhaattrrii Sachin Popli Sandeep Yadav Shubham Sharma ACKNOWLEDGEMENT We take this opportrtunitity to convey our sisincere thanks andd gratitude to all those who have directly or indirectly helped and contributed towards the completion of this project. FiFirst and foremost, I would lilikke tto tthank DDr Naushad Mallikik Professor, IILM-GSM, Greater Noida for his constant guidance and support throughout this project. During the project, we realized that the degree of relevance of the sales and distribution being imparted in the industry is very high. The sales and distribution management study enabled us to get a better understanding of the nitty-gritty of the company. We would also like to thank my batch mates for the discussions that we had with them. All these have resulted in the enrichment of our knowledge and their inputs have helped us to incorporate relevant issues into our project. INDEX Indian automobile industry Porter’s model for Bentley Motors Luxury Car Market life cycle Vision and Mission Bentley Motors Sales and production Market Potential for Ultra-Luxury Car Why India…??? Sales Organization Buyer expectation Recommendation Recruitment & people Conclusion Logistics Graduate training program Bentley Dealer Apprenticeship Bibliography Introduction Indian Automobile Industry Overview:: Since the first car rolled out on the streets of Mumbai (then Bombay) in1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the then Government and the policies were also not favorable. Automobile sector is one of the most dynamic sectors in India. Since, the introduction of liberalization policy and various tax relieves by the Govt. of India in recent years, it has had a remarkable boom represented by the entry of many foreign players, massive investments with the most up-to-date technologies in the Automobile Industry. Indian automobile industry is currently growing at the pace of around18 % per annum. Many foreign companies have been entering in the Indian Automobile Market in various ways such as technology transfers, joint ventures, strategic alliances, exports, and financial collaborations. The auto market in India can boast of attractive finance schemes, increasing purchasing power, and launch of the latest products. A well-developed transportation system plays a key role in the development of an economy, and India is no exception to it. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian economy. The modern automobile market in India has been considering key issues in the process of growth: •• Customer care, and not just 'service' •• Domestic as well as multinational investments •• Searing through cut-throat competition •• Road safety •• Anti-pollution norms •• Coordination with the government to enable advancement •• Used vehicle trade Facts & Figures about Indian Automobile Industry: •• Production Trends: Table 1.1: Sales of Vehicles in India (in No. Of vehicles) 22000022--0033 22000033--0044 22000044--0055 22000055--0066 22000066--0077 22000077--0088 22000088--0099 Category Passenger 770077,,119988 990022,,009966 11,,006611,,557722 11,,114433,,007766 11,,337799,,997799 11,,554499,,888822 11,,555511,,888800 Vehicles Commercial 119900,,668822 226600,,111144 331188,,443300 335511,,004411 446677,,776655 449900,,449944 338844,,112222 Vehicles Three 223311,,552299 228844,,007788 330077,,886622 335599,,992200 440033,,991100 336644,,778811 334499,,771199 wheelers Two 44,,881122,,112266 55,,336644,,224499 66,,220099,,776655 77,,005522,,339911 77,,887722,,333344 77,,224499,,227788 77,,443377,,667700 wheelers GGrraannd ttoottaal 55,,994411,,553355 66,,881100,,553377 77,,889977,,662299 88,,990066,,442288 1100,,112233,,998888 99,,665544,,443355 99,,772233,,339911 In Year 2007-08: India has overtaken car-producing nations such as the United Kingdom and Italy and is now the tenth and ninth largest producer of motor vehicles and passenger cars respectively in the world. Indian auto manufacturers produced 1.71 m cars and 2.31 m motor vehicles in 2007¹. Domestic passenger car sales increased by 11.8 % to 1.20 m in 2007-08 (year ended March 2008) whereas two-wheeler (motorcycles, scooters and mopeds) sales decreased slightly to 7.25 m. India is the largest manufacturer of three-wheelers (0.43 m in 2006-07) and the eighth largest commercial vehicle (0.49 m in 2007-08). India is also the largest tractor manufacturing country having produced around 310,000 units in the year ended March 2007. Indian Four Wheeler Industry The Four-r-Wheeeeleler InInduduststry in InIndidia hahas nonot ququitite matctched up to ththe peperfrforormancnce of ititss counterparts in other parts of the world. The primary reason for this has been the all-pervasive regulatory atmosphere prevailing till the opening up of the industry in the mid-1990s. The various layers of legislative Acts sheltered the industry from external competition for a long time. Moreover, the industry was considered low-priority as cars were thought of as unaffordable luxury". Post Liberalization, the car market in India have been in a burgeoning stage with all types of cars flooding the market in order to meet the demands of Indian customers who are increasingly exposed to state of the world automobiles and want the best when it comes to purchasing a car. It is expected that by 2030, the Indian car market will be the 3rd largest car market across the globe. The main encouraging factors for the success story of the car market in India are the increase in the opportunity for new investments, the rise in the GDP rate, the growing per capita income, massive population, and high ownership capacity. The liberalization policies followed by the Indian government had been inviting foreign players to participate in the car market in India. The recent trend within the new generation to get work in the software based sector has led to the rise in the income level and change in the lifestyle significantly, which has further led toto the increase in the demand for luxurious cars among them. The car Market in India is crowded with all varieties of car models like the small cars, mid-size cars, luxury cars, super luxury cars, and sports utility vehicles. Initially the most popular car model dominating the Car Market in India was the Ambassador, which however today gave way to numerous new models like Hyundai, Honda, Mercedes-Benz, BMW, Bentley and many others. Moreover, there are many other models of cars in the pipeline, to be launched in the car market in India. Some of the leading brands dominating the car market in India at present are Hindustan Motors, Reva Electric Car Co., Fiat India Private Ltd., Daimler Chrysler India Private Ltd, Ford India Ltd., Honda Siel Cars India Ltd., General Motors India, Hyundai Motors India Ltd., Skoda Auto India Private Ltd., and Toyota Kirloskar Motor Ltd. Since the demand for foreign cars are increasing with time, big brands lilike Mercedes Benz, Volkswagen, Astonon Martin, Ferrari, and Rolls-Royce have long since made a foray into the Indian car market. Facts about Indian Car Market: •• Low Penetration, but Rising Share of World Production: Although the Indian automobile industry has come a long way since the deregulation in 1993, India does not rank well among its global peers in many respects, viz., the contribution of the sector to industrial output, number of cars per person, employment by the sector as a percentage of industrial employment, number of months' income required to purchase a car, and penetration of cars. Figure 1.2: Passenger vehicle stock per 100 people India is far behind from other countries with just 6.9 cars per 100 persons, while Unites States has 76.9 cars on per 100 persons. Among developing countries, Russia also stands ahead than India and China with 16.3 cars per 100 persons. Two things that stunted growth of the Indian automobile industry in the past have been low demand and lack of vision on the part of the original equipment manufacturers (OEMs).. However, the demand has picked up after the liberalization of the regulatory environment, and global OEMs who enjoy scale economies both in terms of manufacturing and research and development (R&D) entered the Indian market. This has resulted in a significant shift in the way business is conducted by suppliers, assemblers and marketers. •• Low Penetration Level: Although India’s 4W sales have increased in recent years, penetration levels are low at around 0.9%. Till the last decode, the industry was considered low priority as cars were thought of as 'unaffordable luxury', and treated as such through Government policies. Although reduction in excise duties, favorable Government policies, and lower prices have resulted in significantt increase in penetration, India's passenger car penetration is low by global standards-1.3% in Chino, 59% in EU, and 81% in the US. Estimates from Notional Sample Survey 58th Round (2002) indicates that ownership of four-wheelers (car or jeep) is restricted to about 4.4% of urban households, and 0.6% of rural households. During 2002-03, ownership of cars/js/jeeps was restricted to around 0.9 million households in rural areas, and 2.57 million households in urban areas. Car penetration is high in Chandigarh, New Delhi, Goa and Kerala. However, penetration is extremely low in the eastern states of Bihar, West Bengal, Orissa; and central states such as Madhya Pradesh and Chattisgarh. Indian Luxury Market Luxury is all set for an unprecedented flourish here as the Indian consumer has overcome the guilt pangs associated for ages with indulgence. The size of the luxury market in India is estimated at around $ 3.5 billion, and what’s best, given the right momentum, it could easily Leap frog to $ 30 billion by 2015.
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