SECTOR INFORMATION

INTRODUCTION
The automotive industry comprises a wide range of companies and organizations involved in the design,
development, manufacturing, marketing, and selling of motor vehicles. It is one of the world's largest economic
sectors by revenue. The automotive industry does not include industries dedicated to the maintenance of
automobiles following delivery to the end-user, such as automobile repair shops and motor fuel filling stations.
Around the world, there were about 806 million cars and light trucks on the road in 2007, consuming over 980
billion liters (980,000,000 m3) of gasoline and diesel fuel yearly. The automobile is a primary mode of
transportation for many developed economies.

MARKET SEGMENTATION

passenger commercial
vehicles vehicles

two three
wheelers wheelers
Automobile
Industry size/contribution to GDP

 The Indian auto industry became the 4th largest in the world with sales increasing 9.5 per cent year-on-
year 4.02 million units (excluding two wheelers) in 2017. It was the 7th largest manufacturer of
commercial vehicles in 2017.
 The two wheelers segment dominates the market in terms of volume owing to a growing middle class
and a young population. Moreover, the growing interest of the companies in exploring the rural markets
further aided the growth of the sector.
 According to the world association of car manufacturers “OICA” in 2017, 73.4 million
 cars and 23.84 million trucks were produced in the world.
 India is also prominent auto exporter and has strong export growth expectations for the near future.
Overall automobile exports from India grew at 6.86 per cent CAGR between FY13-18.
 In addition, several initiatives by the GoI and the major automobile players in the Indian market are
expected to make India a leader in the two-wheeler and four-wheeler market in the world by 2020.

MARKET OVERVIEW

Chart Title
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2010-11 2011-12 2012-13 2013-14 2014-15

passenger vehicles commercial vehicles three wheelers two wheelers

 30.92 million automobiles produced in India in FY19.

 26.27 million automobiles sold in India in FY19.
 Domestic automobile production increased at 6.96% CAGR between FY13-19.
 Domestic automobile sales increased at 6.71% CAGR between FY13-19.
 In FY19, year-on-year growth in domestic sales among all the categories was recorded in
commercial vehicles at 17.55% followed by 10.27% in three-wheelers.
 Sales of electric two-wheelers are estimated to have crossed 55,000 vehicles in 2017-19.
 PRODUCTION

two wheelers passenger vehicles commercial vehicles three wheelers

GROWING OF AUTOMOBILE SECTOR IN INDIA

growing rise in the income of middle class people

young population result in strong growth
demand
opportunities for electric and autonomous
opportunities vehicles.
india is expected to become a leader in shared
mobility by 2030.

rising FDI inflow in the automobile sector stood at

US$ 20.85 billion between April 2000 and
December 2018.
investment
government aims to develop India as a global
policy support manufacturing center.
reforms like GST helps in boosting the growth in
the sector.
PORTER’S FIVE FORCE MODEL

AVAILABILITY OF ENOUGH SUBSTITUTES LIKE PUBLIC ENTRY OF MANY FOREIGN

SUPPLIERS AND CHEAP TRANSPORT, RAILWAYS & PLAYERS IN THE INDIAN
IMPORTS . AIRLINES . MARKET WITH LATEST
TECHNOLOGY.

THREAT OF
BARGAINING POWER OF COMPETITIVE RIVALRY :
SUBSTITUTE :
SUPPLIER : LOW HIGH
MODERATE

IN INDIAN MARKET THERE AUTOMOBILE INDUSTRY IS

ARE VARITIES OF PRODUCTS CAPITAL & TECHNOLOGY
AVAILABLE BY DIFFERENT INTENSIVE.
MANUFACTURERS. A FIRM REQUIRES A WIDE
DISTRIBUTION NETWORK
TO BE IN THE
COMPETITION.

BARGAINING POWER OF THREAT OF NEW

BUYER :HIGH ENTRANT : LOW

COMPANY INFORMATION
Company snapshot
 Jeep is a 78-year-old American automaker, headquartered at Toledo, Ohio, U.S.A.
 It deals in the production and sale of premium SUVs. Its vehicles are either compact sport utility
vehicles, medium-sized sport utility vehicles or semi-luxury sport utility vehicles.
  Jeep vehicles were primarily used in the armed forces for transportation of goods and personnel, and
later got involved in the commercial vehicle market.
 Jeep has been a part of Chrysler since 1987, when Chrysler acquired the Jeep brand, along with
remaining assets, from its previous owner American Motors Corporation (AMC).

PARENT COMPANY CHYRLSER

CATEGORY SUV
SECTOR AUTOMOBILE
TAGLINE/SLOGAN FUN & FREEDOME SINCE 1941
USP MANY JEEP VARIANTS SERVE MILITARY AND
CIVILIAN PURPOSES
COMPETITORS TOYOTA RAV4
SUZUKI GYPSY
MINI PAJERO

FOUNDING COMPANY –

Fiat Chrysler Automobiles N.V., regularly shortened as FCA, is an Italian-American global enterprise and is the
world's eighth biggest auto maker. The gathering was built up in October 2014 by blending Fiat and Chrysler
into another holding organization. Fiat Chrysler Automobiles' corporate base camp is domiciled in Amsterdam,
and the money related central command are in London, both for charge purposes. The holding organization is
recorded on the New York Stock Exchange and Milan's Borsa Italiana. Exor N.V., an Italian venture bunch
constrained by the Agnelli family, possesses 29.19% of FCA and controls 44.31% through a devotion casting a
ballot mechanism.
FCA's mass-advertise brands work through two fundamental backups: FCA Italy (already Fiat Group
Automobiles SpA) headquartered in Turin; and FCA US (beforehand Chrysler Group LLC) headquartered in
Auburn Hills, Michigan (some portion of Metro Detroit). The organization's portfolio incorporates car brands
Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, Maserati, and Ram Trucks. Ferrari
was spun off from the gathering in 2016. Today FCA works in four worldwide markets (NAFTA, LATAM,
APAC, EMEA).
On 31 October 2019, FCA declared purpose to converge with Groupe PSA (proprietor of the Peugeot and
Citroën brands among others). The merger would be on a 50-50 all stock basis.
FCA likewise possesses mechanical backups Comau and Teksid.

PORDUCT’S AND SERVICES OFFERED

WRANGLER UNLIMITED
COMPASS
PRODUCTS
GRAND CHEROKEE
GRAND CHEROKEE SRT

VEHICLE MAINTENANCE
RSA & INSURANCE PROGRAMS
SERVICES WIDE RANGE OF ACCESSORIES
STANDARD & EXTENDED WARRANTY
MAINTENANCE PACKAGES
COMPETITOR’S ANALYSIS –

Jeep essentially produces rough terrain vehicles or SUVs and every significant maker have 1 or 2 SUVs in their
model lineup. In this way, all significant makers like GM, Toyota, Honda, Ford, VW gathering, BMW,
Hyundai, Nissan, Land Rover and so on is a contender to Jeep. The Jeep is additionally hoping to enter the little
hybrid SUV advertise with the new Jeepster that will confront intense challenge in the developing markets
where numerous little hybrids SUVs are now present. New Jeepster's potential rivals could be Kia Soul, Mini
Countryman, and Nissan Juke.
The littler Jeep Cherokee additionally has intense challenge in Honda CR-V, Ford Escape, and Toyota RAV4
and so on. Cherokee contenders are littler in size and inside space, legroom is not as much as Cherokee.
Additionally, the traveler volume and payload volume are bounty on Jeep Cherokee. Towing limit of the Jeep is
likewise path higher than the contenders.

We can see the correlation outline beneath: –

Honda Toyota
Jeep Ford Escape
CR-V RAV4
Cherokee
Legroom, F/R 41.1 / 40.3 41.3 / 38.3 43.1 / 36.8 42.6 / 37.2

Passenger
103.5 104.1 98.0 101.9
volume
 Cargo volume
49.5 37.2 34.3 38.4
(seat up)

Total volume 153.0 141.3 132.3 140.3

Base engine
184/171 185/163 168/170 176/172
hp/torque
178/184
Optional engines 271/239 None None
240/270
Automatic
9 5 6 6
forward speeds
Highway
45 44 47 44
mileage (Can.)
Towing capacity
4,500 lb. 1,500 lb. 3,500 lb. 1,500 lb.
(max)

Standard airbags 10 6 7 8

City/highway
mpg
22 / 31 23/31 22/31 24/31
4×2, base
engine, EPA

Opt. Engine mpg 19 / 27 23/32, 22/30

Base weight 3,775 3,305 3,502 3,435

 Jeep Cherokee Off-roading comparison with competitors: –

Cherokee
Trailhawk 4×4 I 4×4 II Escape RAV4 CR-V
Approach
angle 29.9° 18.9° 21° 21° 29° 28°
Breakover
angle 22.9°  19.5° 21.7° 17.6° 16°
Departure
angle 32.2° 25.0° 27.3° 27.7° 22° 21°
Running
clearance 8.7” 7.7” 8.7” 7.9” 6.3” 6.7”

As should be obvious in the above table the rough terrain capacities of Cherokee is far superior to its rivals. The
methodology point, break over edge, takeoff edge and running freedom are for the most part higher than that of
its rivals. In this way, Cherokee can take you anyplace with no complain. Along these lines, the greatest selling
purpose of the considerable number of Jeeps is its going 4x4 romping capacities. It has the edge in this setting
as against its rivals. Be that as it may, Jeep needs to enhance its inside so as to get up to speed with the
contenders. Jeep likewise has numerous local rivals in various nations. Jeep needs to consider territorial
contenders while propelling their vehicles in various nations.

LATEST NEWS –

1. Jeep is India's most trusted automobile brand: Brand Trust Report 2019 –

Jeep India has been named as India's most believed car brand in TRA's Brand Trust Report 2019. The
SUV pro automaker has been additionally positioned as the second most believed brand crosswise over
classes covering 1000 mainstream marks in India.

This could be considered as a noteworthy accomplishment with the American vehicle maker winning
trust of Indian clients after only 3 years of activities here. Additionally, the organization's no. 2
positioning is a major jump from its last year positioning of 533.

Talking about this most recent positioning, Kevin Flynn, President and Managing Director, FCA India
has stated, "The venture and exertion put into our image in India is satisfying. The Brand Trust Report
positioning is approval of our system to connect Jeep and its legacy to opportunity, experience,
credibility and enthusiasm."

He likewise included, "The dedication and enthusiasm with which we have supported client and
business connections have helped produce remarkable bonds between the brand and the vehicle
proprietors."
Jeep India as of now has a vendor and aftersales administration system of 82 sellers crosswise over 70
nations, which is a half climb since August 2017. The extending system supplements the automaker's
developing deals volumes in India.

Jeep at present sells three unique models in India that are Grand Cherokee, Wrangler and Compass. Jeep
Compass is the most reasonable and most famous model among the brand's contributions in India. Aside
from these, the automaker is likewise intending to dispatch Jeep Renegade in India.

2. Fiat-Renault proposed merger: Muted impact on India operations –

Italian-US vehicle producer Fiat Chrysler Automobiles (FCA), which claims worldwide brands, for
example, Jeep and Maserati, on Monday conveyed a nonbinding letter to the leading body of France's
Groupe Renault proposing a blend of their separate organizations as a 50:50 merger.

In the event that the organizations figure out how to agree, the consolidated substance is ready to turn
into the world's third-biggest automaker, with yearly offers of 8.7 million vehicles, FCA said in a
discharge. The effect of the union in India, be that as it may, could be quieted, specialists said.

FCA has a 0.5% traveler vehicles piece of the overall industry in India with its Jeep image, while
Renault charges better at 2.4%. "The market here for these brands is extremely unimportant in the
worldwide point of view," said Avik Chattopadhyay, fellow benefactor of brand procedure firm
Expereal.
 The focal point of the collusion is set the Europe and the US advertises all together first, trailed by other
progressively significant markets like China, Russia and Brazil, he said. With regards to India, the
collusion can exploit from the justification of assembling resources and sharing of new advances, as per
VG Ramakrishnan, overseeing chief at Avanteum Advisors LLP.

MARKETING STRATEGIES
SWOT ANALYSIS OF JEEP
STRENGTH WEAKNESSES
High price compared to competition.
Strong image and brand reputation. Low penetrations globally among the
Iconic designs which is synonymous relevant people.
with its name. Perspective of having dated designs
Name stands for adventure which with no major improvements over a
easily communicates its utility. long period of time.
Strong off roads capabilities.

OPPURTUNITIES
They can look for technology partners
THREATS
who can help in advance their
technologies. Increasing fuel price.
They should enter growing market with Electric vehicles which can provide
lower costs model where they can get similar type of adventure with lower
larger volumes. cost of running.
They can further leverage their brand
name and legacy across the globe.
PRODUCT LIFE CYCLE OF JEEP WRANGLER

BCG MATRIX OF JEEP

STP OF JEEP
SEGMENT Young and adventure-oriented people

TARGET GROUP Urban upper middle-class individuals

POSITIONING Strong vehicle with anywhere going
capabilities

1. SEGMENTATION -

Lifestyle
Psychographic
Personality

Income

Education
Demographics
Family Size

Social Status

Ocassion
Behavioral
User Status

Geographics Urban
2. TARGETING –

It ought to be referenced that Jeep achievement depends on the subjective examination of the
intended interest group. Looks into show that Jeep advertising supervisors routinely distinguish
the intended interest group and decide whom the promotion needs to address. Obviously, Jeep
has truly focused on individuals who love outside and experiences. Besides, for Jeep the focused
on advertise, or a lot of purchasers, who share regular qualities or necessities that the
organization chooses to serve, is military assistance families and ladies, and existing or potential
new Patriotic clients. Two principle messages that Jeep proprietors invest wholeheartedly for are
close to home owning of an American made vehicle and backing of the U.S. military powers
simultaneously.

With no questions, Jeep has deliberately sectioned the American and worldwide market and
chose its very own focused on crowd. Accordingly, the outstanding highlights of Jeep vehicles
are solid body plan and amazing motors. The solid body configuration allows the Jeep to drive in
brutal regions without creating any harm on the vehicle's body. The amazing motor permits
driving the vehicle in abnormal driving conditions, for example, mountain territories and
wildernesses. Along these lines, Jeep is focusing on for the most part male drivers that typically
drive in provincial regions because of their leisure activities or occupation necessity, and
appreciate experience.

In addition, Jeep additionally targets guardians with families or youthful organizations that
appreciate open air exercises, for example, drifting and chasing. Accordingly, Jeep gives enough
space to suit the gigantic organization, or all relatives, and the solid body manufacture gives
wellbeing to all travelers. The other part of Jeep focal points is that families that appreciate
undertakings and open-air exercises can utilize Jeep vehicles to pass through horrible streets, or
even in the rough terrain conditions, and connect a vessel. The Jeep can be utilized for minor
homestead works and furrowing. The way that Jeep costs are higher than numerous different
SUVs in the U.S. advertise implies that Jeep is focusing on people and families with high salaries
and stable occupations. Additionally, Jeep is likewise growing its focused-on sections of
potential purchasers to youthful clients by presenting the subjectively new Wrangler model. As
per the factual explores, Jeep is focusing on about all people and families from various ages with
high pay with present day models and different enhancements in structure.

3. POSITIONING –

As brand, Jeep characterizes its guarantee as "Vehicles empowering life's remarkable voyages."
It discloses its objective to "Give vehicles that help a way of life of unfathomable opportunity,
dependable experience and are solid, protected, fun and naturally benevolent."

Jeep is an experiential brand that most particularly takes its proprietors outside, instead of to the
market or shopping center.

In that the VALS types have unmistakably various ways to deal with outside encounters.
Masterminds, for instance, are bound to go outside on the grounds that nature gives them a spot
to restore and recharge. Achievers go outside in light of the fact that it is a spot to take part in
exercises with their kids.
 Pioneers frequently go to the outside to appreciate or investigate nature or to take part in an
assortment of specifically testing exercises. What's more, Experiencers, as their name infers, go
outside to take part in a physically-testing encounters.

COMPARISON OF SALES

Sales
111000

110000

109000

108000

107000

106000

105000

104000

103000
2017 2018 2019

MARKETING AND PROMOTIONAL STRATEGY

PRODUCT
Jeep started its journey at the time of World War II by providing heroic and robust models for military purpose.
This was the time when Jeep gained its recognition. 1950s and 1960s was the era of introducing new Jeep
models which serve the purpose of work, play, recreation and luxury. Jeep’s Wrangler variant, Wrangler
Unlimited provided ample storage space, comfort, convenience and technological advancements all at the same
time with robust looks and created a new milestone in the market. the models which are being offered by Jeep:
• Compass
• Grand Cherokee
• Wrangler unlimited
• Grand Cherokee SRT
PRICE
Jeep products cater to the need of the people who are looking for a luxurious as well as sturdy SUV. There are
many players in this area giving a tough competition to Jeep like Hyundai Creta, Mahindra XUV 500 and
Mahindra TUV 300 etc., to keep the pricing of the models at par with the competitors. Jeep has adopted the
strategy of competitive pricing. This strategy is generally used when there are multiple players in the market
offering almost similar products.

PLACE
Jeep started from United States and now has spread globally. Jeep models are present in Asia Pacific, Middle
East, Europe, Africa, America and Caribbean, which shows its strong distribution strategy in it marketing mix.
Along with the spread in the selling market, Jeep focused on localizing the production plants as well. Fiat
invested US $280 million to support local production of Jeep in India the official Jeep website also gives the
interested customers an option to locate the dealer.
PROMOTION
Jeep believes in aggressive marketing and provided best advertisements depicting the roughness and adventure
philosophy that Jeep believes in. Jeep has used the channels of mass promotions like Television, print media
and magazines. In 2016, on completion of 75 years, jeep launched a campaign “My Jeep Story” and encouraged
its customers to share their favorite Jeep moments on Twitter, Instagram and Facebook using the hashtag
#myjeepstory.