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A STUDY ON ELECTRONIC MARKETING IN INDIAN AUTOMOBILE

INDUSTRIES : SPECIAL REFEFERENCE


TO SMALL CAR BUYERS.
A. JANANI SELVABALA,
PH.D SCHOLOR,
VHNSN COLLEGE- (AUTONOMOUS)

Abstract:
The major purpose of this study is to find out the importance of Electronic Marketing in Indian
Automobile Industries, in the view of small car buyers in India. These days, Automobile buyers have
face many challenges in marketing survival, specially India has gradually increase in potential of
buying large number of car buyers, especially small cars. This paper deals with statistical study
enlisting information about the furious promotional activities on digital media by different automobile
manufacturer. India is a marketing center for launching International products, so it is as well as it is a
place of Global Marketing. People need sophisticated and compact car for their regular traveling,
for that they prefer the small cars, in India the most popular automobile manufacturers are entered and
joined in the open competition like German manufacturer Volkswagen, South Korean manufacturer
Hyundai and French manufacturer Renault. Though meet out these heavy race, the Indian Automobile
Industries turn their focus towards the DIGITAL / ELECTRONIC Marketing to cover and attract
the customers towards their Brands by published their Product promo on Social medias to visit their
sites behalf of their Product Promotions like FACE BOOK, TWITTER, GOOGLE +, Create own
web sites and promote new innovative ideas to impress the Small car buyers towards their
Automobiles.

1.1 Electronic Market Introduction


Electronic marketing is a form of product promotion and customer relations conducted with the use of
electronic media. With the development of the telegraph, a new era in marketing was created.
Marketers have been quick to jump on subsequent technological developments from radio to the
Internet. Companies may market exclusively via electronic media or use a mixture of marketing media

in order to reach a broad target audience. Marketing has a number of goals, including familiarizing
people with companies and products, encouraging consumers to adopt specific products, and promoting
a positive public opinion of a company, product, or service. Electronic marketing is highly flexible and
allows companies to create targeted campaigns with broad reach. This form of marketing can also be
very cost effective, making it possible for companies to reach lots of consumers at a fraction of the cost
for other types of advertising.
In addition to media like television, radio, and the Internet, electronic marketers can use media such as
phones for conveying advertisements. Talking ads mounted on bus stations and other public
installations are another example. Electronic kiosks in locations like malls can be used for marketing
purposes. Marketers can create video brochures, insert ads in front of feature films, and find a number
of other ways to reach an audience via electronic means.

1.1.1. Varies methods of electronic marketing for your Online business. The following table shows
you an overview of the types of areas of market on your online business.

Various Media of Electronic Sub Medias of Electronic Markets


Marketing
E-Mail Marketing

Measure, Deploy, Lists, Design/


Develop.

Social Media

Blogging, Shared Content, Social

Marketing

Networks.

Online

Ad Networks, Blogs, Affiliates.

Advertising
Public

White Paper, Press Release, Articles.

Relations
Industry performance in 2014-15
Production
The industry produced a total of 23,366,246 vehicles including passenger vehicles, commercial
vehicles, three wheeler and two wheeler in April-March 2015 as against 21,500,165 in April-March
2014, registering a growth of 8.68 percent over the same period last year.
Domestic Sales

The sales of Passenger Vehicles grew by 3.90 percent in April-March 2015 over the same period last
year. Within the Passenger Vehicles segment, Passenger Cars and Utility Vehicles grew by 4.99 percent
and 5.30 percent respectively, while Vans declined by (-) 10.19 percent in April-March 2015 over the
same period last year.
Automobile Industry in India
With a scintillating 2.3 million units produced in 2008 the Indian automobile industry bagged the
position of being the ninth largest in the world. Following economic liberalization, Indian domestic
automobile companies like Tata Motors Maruti Suzuki and Mahindra and Mahindra expanded their
production and export operations in and across the country and since then the industry has only shown
signs of growth. The automobile industry comprises of heavy vehicles (trucks, buses, tempos, tractors),
passenger cars, and two-wheeler.
Trends in Electronic Marketing in the Indian Automotive Industry
The YouDrive Mercedes advert of 2013 is one example of digital marketing creativity in the
automobile industry. This campaign utilized the Twitter feature of hashtags to engage TV audiences in
a way that hadnt been seen before, claiming, according to the Mercedes website, an industry and
social media first. In the campaign, the company encouraged TV viewers of their advert to use Twitter
to affect the outcome of the adverts story the result of which was then shown on television at a later
date.
Key automobile manufactures in India
Maruti Udyog, General Motors, Ford India Limited, Eicher Motors, Bajaj Auto, Daewoo Motors india,
Hero Motors, Hindustan Motors , Hyundai Motors India Limited, Royal Enfield Motors, Telco, TVS
Motors, DC Designs , Swaraj Mazda Limited
The result? The Mercedes team reported 3.8million views of their YouTube channel in the 3 weeks
following the campaign. However, we were unable to find data to show the result on car sales. But
while this stands as an example of automotive creativity, it is in stark contrast to the 2012 social media
faux pas of car firm Volkswagen, who hit the press after removing unfavorable comments from their
Facebook wall, resulting in a huge PR backlash led by Greenpeace. In this example, the car firm failed
spectacularly in their understanding of social media best practice impacting on their digital marketing
strategy for weeks/months afterwards. S what is holding the automotive industry back? Some critics,
including David Parkinson, general manager of social media and engagement at Nissan, have suggested

it is a reticence to fully adopt new channels in favour of traditional, still-successful methods such as
television advertising.
Manufacturing facilities
The majority of India's car manufacturing industry is evenly divided into three "clusters". Around
Chennai is the southernmost and largest, with a 35% revenue share, accounting for 60% of the
country's automotive exports, and home of the India operations of Ford, Hyundai, Renault, Mitsubishi,
Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, and Datsun.
Near Mumbai, Maharashtra, along the Chakan corridor near Pune, is the western cluster, with a 33%
share of the market. Audi, Volkswagen, and Skoda are located in Aurangabad. Mahindra and Mahindra
has an SUV and engine assembly plant at Nashik. General Motors, Tata Motors, Mercedes Benz, Land
Rover, Jaguar Cars, Fiat, and Force Motors have assembly plants in the area.
The northern cluster is around the National Capital Region, and contributes 32%. Gurgaon and
Manesar, in Haryana, are where the country's largest car manufacturer, Maruti Suzuki, is based.
An emerging cluster is the state of Gujarat, with a manufacturing facility of General Motors in Halol,
and a facility for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki, and Peugeot-Citroen plants
are also planned for Gujarat.
Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota are other
automotive manufacturing regions around the country.

Electronic marketing is the new normal for car manufacturers


Car brands are increasingly identifying electronic marketing as a core pillar of their strategy, says
Googles Global Head of Automotive. Even in a traditional industry, like the automotive industry, the
prevalence of electronic marketing is increasing rapidly. Many vehicle manufacturers are working to
try to understand the impact a generational shift is having on their marketing, and user experience as
well. With regard to automotive marketing, theres an important shift from monologue to dialogue.
Consumers no longer want to be told, for instance, about what car to buy and why; rather, they want to
experience it on their own, and to have a say in that experience. This is something that has been tougher
for OEMs to come round to. OEMs were, in fact, among the first to realize the importance of a digital
presence, setting up websites and online tools to configure cars.
When it comes to marketing, vehicle manufacturers have historically focused all of their attention,
money, investments and resources on the retail experience, with the online experience remaining more

of an afterthought. Now, however, there is a growing realization that the online experience needs to be
the primary thought. This is primarily because consumers increasingly dont want to experience
dealerships the way OEMs tell them to, in order to buy a car. One company that has been making
significant advances in this area is Google. According to the company, technology and digital
advancement are having a transformative effect on the vehicle shopping and purchase experience. This
has resulted in a highly informed and empowered buyer.
Technology
Technology has well and truly started driving changes within the digital space, where vehicles are
concerned. For instance, future generations are likely to never ask for, or even write down directions.
Technology is making a mark on how automotive marketers can solve problems for consumers, and
also start to integrate technology into what consumers are asking for.
Purchasing process
There is also a change with regard to the purchasing process. The abundance of information within the
digital space is showing consumers a different way to shop for vehicles. This paradigm shift, says
Google, this is being driven by three areas industry, media and consumer.
The first of these is the quality parity in the automotive industry. Earlier, there was a much larger
quality gap within different models and brands. As a result, it was easier for buyers to say they would
buy a particular brand, as they feel it would deliver much better quality than others. However, the
quality paradigm is diminishing.
Secondly, there is unlimited access to information, empowering potential buyers. This access to
information allows consumers to carry out all of their research online, whenever it is required. There is
another factor with regard to the media factor, and that is social interactions the online word of
mouth.
The consumer is therefore more open-minded, and this brings us to the third key area driving this new
paradigm shift. For the most part, consumers are no longer loyal to a brand. Google says it has begun to
see a major shift in recent years; according to the companys figures, three in four consumers say they
are likely to switch to a new brand, while less than one in two purchased the brand that they initially
considered.
Thus, the traditional sales funnel no longer applies in the era of digital marketing. As a result, vehicle
manufacturers need to be more nimble, both from a technology standpoint, and within their marketing
campaigns.

Opportunities
According to the 2013 Net pop Global Auto Study, 81% of potential buyers use online sources to learn
about cars. Of this, 50% use their smart phones at various stages of the process. For instance, 68% use
their smart phones to decide on the make or brand of a car; 68% use smart phones for purchase
decisions on the type or model; 46% use this for features; 60% for price and financing; and 53% to
decide on the dealer/seller.
The smart phone, therefore, is turning into an important component in the car purchasing process. As a
result, when an OEM or dealer is thinking of providing potential buyers a seamless experience, the
smart phone needs to be top of mind. While this brings new opportunity, it also brings a wealth of new
challenges and new thinking for the OEMs.
A lot of people think that if their website is good, then its good; but really, all of these different areas
are taking place on the smart phone the make, the brand, the type, the model, the features, even
financing and pricing and obviously dealer and seller. They are trying to find all and any info on their
smart-phones, Guerriero says.
OEMs online
To illustrate friction less customer experiences and the blurring of offline and online boundaries,
Guerriero mentioned the example of Audi Cam, a service which enables customers to see and hear
about necessary repair work, and to authorize it through a mobile phone or personal computer. A
handhold camera produces narrated film clips that are embedded in a customer-specific, PIN-protected
web page that is emailed to the customer. This page includes video and audio commentary, VATinclusive pricing for each job, personal technician and service team profiles and action buttons for
automatic authorization of work.
Toyota, meanwhile, has been innovating with the shopping experience. Its Collaborator, which the
company launched late last year, is a social car shopping platform geared to bringing in participation
and conversation. This is an example of an OEM working to understand the generational shift, and
using it for its digital marketing initiative.
Digital(Electronics) platforms to lead new car sales leads
Analysis published by Frost & Sullivan early in 2014 suggested that global passenger car companies
are desperate to innovate and adopt a new retail model to the next generation of car buyers. This shift

has been further driven by high real-estate costs, expensive resources, and the need for innovation to
stay afloat.
According to the study, such factors have resulted in many automotive dealerships resorting to
shrinking their store spaces by around 20%, and instead opting for digitization as a mode of interacting
with prospective customers. While European OEMs are pushing for standalone digital formats, North
American OEMs appear to prefer digitization within existing franchise models. By 2020, 60-70% of
new car sales leads will be generated by a digital platform, says Frost & Sullivan, be it via websites,
mobile sites, social media or apps.
Indian Automobile Export market
India is a very favorable market for small cars be it production, sales or export. Since the Indian
automobile industry is the largest manufacturer of small cars companies like Hyundai and Nissan
Motors export about 2,40,000 and 2,50,000 annually. India emerged as Asia's fourth largest exporter
of automobiles, behind Japan, South Korea and Thailand. The Indian automobile exports registered
a 22.30 percent growth in the year 2009. The growth trend was as follows: Two Wheeler- 32.31
percent, Commercial Vehicle - 19.10 percent and Passenger Cars grew by - 19.10 percent.
South Korea looking for Indian partner to set up small car project
The South Korean companies are looking to form joint venture projects with Indian automotive
components, IT and various other related sectors in India
NEW DELHI: South Korean automotive industry said that it is eyeing the possibilities of selecting a
partner for the setting up of a small car project. The South Korean companies are looking to form joint
venture projects with Indian automotive components, IT and various other related sectors in India.
"We have already received business inquiries from more than two hundred investors who were keen on
setting up of joint venture projects with the Korean companies in India, said Kwangheon Lee, Director
of

Jeonbuk

Technopark

(JBTP)

Korea.

He said the Korean Government has taken this initiative to help the small and medium sector
entrepreneurs in their own country to bring them out from the grip of 'monopolistic'hold.
Lee informed that these joint ventures were primarily of three types. One where the Korean partner will
bring the investment and technologies rest will be provided by the Indian counter parts; second where
the Korean companies will bring in technologies and distribution and the Indian counter parts will have
to bring the investments along with marketing and distribution of the products; and under the third

category, the Korean companies will bring in the technologies and part investment and distribution and
the

rest

to

be

provided

by

the

Indian

partners.

"This year's exposition we are representing a cluster of thirteen Korean companies ranging from small,
medium and large sector so that they could match the Indian partners accordingly," Lee said
Impact Of Electronic Marketing On Automobile Industry
1. Introduction Automobile industry is well known for being forward of turn in almost every
field This sector is acknowledged for its newness, for using science to motivate technology,
for examining unique concept to shape things in a better way Still when it comes to digital
marketing, automotive industry needs to work more to continue or increase their market share in
2015
2. Importance Of Electronics Marketing in Automobile Industry
In the country like UK where there is ample majority of automobile industry digital
marketing gives chance to reach a huge audiences Especially with the product like car
where big investment is involved customers start enquiring much before they actually
reach showroom Probable customers are familiar with what they will get usually from
the time when they have thought of purchasing it They notice cars driven by their mate
and companion and have knowledge of brands from its publicity
3. Although it is per-showroom stage of customer automobile journey, that many company
oversight Despite TV advertising helps to raise the brand and product alertness ,existing
and probable are discussing through social media and review sites but the companies are
not there to respond them On contrary automobile companies are supporting customers
to conclude without putting in efforts As the UK market has recovered from recession
and customers are showing interest in market ,the automobile must join the conversation
of making digital marketing an essential part of the automotive marketing mix
4. Who Has Impressive Proposal For This Field? The automobile industry does not realize
the urgency to shift,this is noticeable through some of the actions we visualize today
Audi introduced Audi City virtual showroom in London and Beijing in 2012, presenting
customers the advantage vision life-size portrayal on wall size screen Also company

shared the idea that by 2020 they are planning to raise 20 virtual showroom which gives
an idea of diversion from traditional showroom Another hint is Nissans Brand Centre
at the O2 planted as demo centre, this step attracted customers to look, analyse and talk
to expert staffs about the cars in more calm surrounding
5. Here the target is not to make customer assume that the they are selling product rather
emphasis is given on providing information For time being these companies are saying
that they cannot depend on traditional market, perfect digital explorer is yet to come up
Rather than vast and costly campaign at this level the industry needs to concentrate on
keys to present good quality content and providing it to areas where customers are online
at present It is regarding answering customer queries,remarking customer stories and
presenting brand through digital marketing
6. Electronic Marketing Elements For Automobile Industry Right now automobile
industry might be doing lot of correction to raise digital marketing Here are some hints
for automobile industry profit:- Recognize your audience:- Important part of
successful digital marketing Should put in time identifying their customers See the
instance of Vauxhalls Corsa advert to see the how car adverts are now a days emphasizing
behaviour of car
7. By investing time to inquire about the audience, automobile industry will better know
about online performance and their lifestyle preference This will facilitate marketers to
resolve which digital marketing method and social platform is to be practiced Generate
impressive content:- Although the companies are communicating about the technical
advantage of digital marketing, there are minute points to attract customers prior to their
requirement of car
8. For instance, if we search on Google save money on petrol we will get numerous site
related to petrol stations and money saving This give automobile industry to reply
through blogs how hybrid vehicles give advantage to conserve petrol and also tips to better
driving style to save fuel If we Google buying a new car we get more information
about insurance companies, newspaper and comparison sites rather than car
manufacturers

9. While the automobile industry are bidding for the term through Paid Search (PPC) but
they are unable to do it in a required form For high rank companies need to generate
rich content-blog post having information on how to drive, tips for drivers to decrease
consumption of fuel, graphics to show working of fuel, etc Great content is a big break
for automobile industry moreover proper knowledge of SEO helps to improve the ranking
Be there on significant social media:- There are various click areas for automobile
throughout social media For instance Facebook is a focal point of various discussion,
here people talk about their preference they make, and what they will consider before big
buy Twitter is a hub to talk about advantages and disadvantages of most vehicles
Pinterest is well known as an inspirational brand, here we put the images of desired things
which could not be overlooked throughout customer journey
Also LinkedIn, in general is recognized as business network, is important as people look
for business car and commercial vehicle opinion The automobile industry should come
above in social media Not only presence but also involving customers is very important
These tips will have great influence on automobile industry digital marketing.
There is lack of presence of automobile industry on sites and social media Digital marketing
plays a very important role in attracting those who are willing to buy vehicle now or in near
future Digital marketing helps knowing your audience, through great content and by being
present on important social media.

CONCLUSION
The data showed quite impressive results and it can be
concluded that Electronic Marketing is a very vital tool for the
promotions. Although the number of people checking official
websites of the companies for the product detail was found to
be quite less, hence it makes companies to practice more and
more promotion strategies through Internet Advertisements and
use of Social Media Pages. The brands promoting through

different social sites keeps the interest of the followers intact


through various activities performed through real time updates. Regular updates is a must practice
required by the companies
for collecting the feedback and ideas of the people which will
thereby help them to manufacture their product better.
Moreover to deliver the information to the masses outside social
media, online advertisement plays a crucial role with over 154
million and growing Internet users in India. Hence it is another
tool that the Automobile companies are required to invest their
money for better promotions and better reach to the masses.
Volkswagen India has performed quite better in a short span of
time to impress the Indian market, while Hyundai India also
performs quite better having customers from almost past two
decades. On the other hand, Renault India has successfully
impressed through its most popular small car, Duster. Renault and
Volkswagen look forward to compete the well established
Hyundai in India by bringing up their products in the entry level segments where Hyundai India
performs quite impressively in
the market. Hence promotions through Internet Marketing are
very much essential by these companies to collect tastes and
preferences of the customers for giving better competition to the
other manufacturers. It can be concluded that Internet
Marketing is the best practice to have in this modern era for the
promotions of new advancements and activities.