Pitstop - Principles of Marketing

Management Foundation II Mentor: Prof. Deval Kartik Presented by: Kunal Dewalwar, Vineet Sharma, Arvind Sethia

Service: Instant Car Service on the Go Brand: PITSTOP Car Service

Introduction about the Service

Service Development Life Cycle

The Plan Phase - Observations - Secondary research - Primary Research - Getting the consumer insight - Analyzing The Defining Stage - Defining the Service - Making the USP points.

- Defining Target customers and Competitors.

- Defining the marketing strategy.

- Pricing Strategy.

- Defining the Demographics, psychographics & geographic.

- Consumer personas

The Enable Phase - The brand identity.

- - - -

Logo Colour scheme Essence The overall look of the facility

- Location The Measure Phase - Customer feedback - Policy redefining - Standardizing the process further - Future Growth

Observations / Inspiration

Common problem faced by car users

• The Indian automobile industry has received positive response in the current market scenario. The car sales in the domestic market have grown 32.28% touching 145,905 units in the month of January 2010 as against 110,300 units in the corresponding month last year. The competition is getting tougher for all the small and big players.

• Maruti Service Centers in India Maruti Suzuki has been able to build a larger consumer base on account of its world-class car models and sales services.

The company has also opened numerous automobile service stations in India across its various regions to provide complete customer satisfaction.

Research

• Hyundai Motor Service Centers in India Hyundai Motor India Ltd stands on the second position in the list of biggest car manufactures in India in terms of sales record. The can manufacturing company has posted a growth of 46.1% in the market against previous year. To keep the momentum of its growth and to ensure highest customer satisfaction, the company has opened various automobile service centers in India.

• General Motors Service Centers in India General Motors, the sales figures of the company surged to 11,111 vehicles from 4,921 in the month of January 2010. To keep up with this pace and to satisfy the needs of its ever growing customer base, the car giant has opened a number of automobile service stations in India across its diverse regions.(Source: http:// automobiles.mapsofindia.com/automobile-service-stations-in-india/)

Research

• PUNE: The city's vehicular population is likely to hit the 20 lakh mark by Dec 2012. In the last nine months alone, there has been an addition of over one lakh vehicles, which comes to around 370 vehicles a day on average.

• Over the last 10 years, since 2001, Pune district has surpassed even Mumbai (Mumbai central and Mumbai suburban districts) when it comes to the number of households using cars or similar vehicles like jeeps or vans for commuting. These facts are revealed in the Housing Census Data released recently by the Directorate of Census Operations of Maharashtra.

• MUMBAI: The number of vehicles on Mumbai's roads, which has already reached the 18.77-lakh mark, is expected to increase this year.

• The state finance department has projected an increase in the sale of motorbikes, cars and heavy motor vehicles in 2011-12 by 12%.

• Source DNA

Research

• Over 12,000 vehicles use the Mumbai – Pune Express way everyday. Of these, over 9000 are cars. While over 800 buses travel on the Express way everyday, the number of trucks on the route is over 1300.

• There is only one service station on this Express way, near Khalapur Toll plaza.

• 57% of the customers take their cars to LSC (Local Service Stations) after their free services are over, whereas only 39% of customers continue their servicing with ASC (Authorized Serviced Centers) (Source: Passenger Vehicle Service Pattern in India Report)

Research

Reasons for customers dis-satisfaction with a service / repair 6% 6%

Price was too high

8%

35%

19%

Did not fix problem properly Took longer time to complete Car was not clean when picked up Sold me unnecessary parts Treated poorly by staff

26%

Research

• Due to a busy lifestyle, everyone wants to rush. In a metropolitan city like Mumbai, this problem increases manifolds.

• Bumpers and pits on road, rains, heat etc. takes a toll on vehicle.

• Dusty roads, Dusty Vehicles • Safety is our prime motto.

• Meeting in Pune at 2 sharp.

• Roads are dirty, I don’t want to get down.

• Express pizza delivered in 30 mins or free.

• I wish all service centers were like F1 Pitstop

Consumer Insight

• PitStop Car Service provide vehicle maintenance, repairs and diagnostics for all makes of vehicles.

They guarantee a first class service at an affordable price.

• The PitStop Car Service idea was basically born out of the F1 Pit stop and Pit crew. Everyone likes to be served and that is the essence we would like to give to our customers.

• ‘YOU WILL BE TREATED NOT LESS THAN MICHAEL SCHUMACHER IN FERRARI’

What is PitStop ?

USP • F1 Pit Stop Experience • Lightning Fast Service Target Audience – Four Wheeler Users

USP & Target Audience

• Direct: Bosch Service, Carwale.com (Online / Onsite repair system), Local Auto-Service Centers, Company owned Service Centers.

• Indirect: Non-recognized Puncture shops, Petrol Pumps with special facility like free check up of tyre and windshields, Do it your self kits.

• Market flux: Public Transport, Hitch-hiking

Who are our Competitors?

• Service Based Pricing • Price Cues • Cost Based • Optional Pricing

What is our pricing strategy ?

• PitStop 1 will be stationed at Mumbai • PitStop 2 at Pune • It is located just before the Express highway starts from both cities.

We are here !

Proposed location

And here !

• F1 Pitstop style facility • Can service two car at a time • Internal space is big enough to accommodate a car for bigger problems like puncture repair, oil change, etc.

Proposed look of our facility

Customer enters PitStop He/She is briefed about the service and price

Customer pays and leaves

Customer gets comments from mechanic

Customer enters the allotted service station and service clock starts i.e 10 min

Service Walkthrough

• • • • • • •

Hoardings / Billboards Stickers on Rear windshield of Cars Radio Jingles News Paper ads Auto magazines Free service camps in City Merchandises like Car hanging, Key chains, etc.

Promotion

• Age: 18 and above • Spending –Rs. 1500 and above per service on maintenance of their car.

• Social class: Middle and higher middle class.

• Lifestyle: travellers, explorers, professionals, independent, practical, value for money, punctual, value for time, caring, thinkers, appreciative.

• Buying behavior: Price conscious, Impulsive, look for a reliable service, are not brand loyal.

Demographic, Psychographic

• Thinkers. These consumers are the high-resource group of those who are motivated by ideals. They are mature, responsible, well-educated professionals.

• Believers. These consumers are the low-resource group of those who are motivated by ideals. They are conservative and predictable consumers who favor American products and established brands. Their lives are centered on family, community, and the nation. They have modest incomes.

• Strivers. These consumers are the low-resource group of those who are motivated by achievements. They have values very similar to achievers but have fewer economic, social, and psychological resources. Style is extremely important to them as they strive to emulate people they admire.

Psychographic division of Our customers can be:

• Experiencers. These consumers are the high-resource group of those who are motivated by self-expression. They are the youngest of all the segments, with a median age of 25. They are avid consumers, spending heavily on clothing, fast-foods, music, and other youthful favorites, with particular emphasis on new products and services..

• Believers. These consumers are the low-resource group of those who are motivated by ideals. They are conservative and predictable consumers who favor American products and established brands. Their lives are centered on family, community, and the nation. They have modest incomes.

• Strivers. These consumers are the low-resource group of those who are motivated by achievements. They have values very similar to achievers but have fewer economic, social, and psychological resources. Style is extremely important to them as they strive to emulate people they admire.

Psychographic division of Our initial customers can be :

Name- Tanmay Avasthi Age – 24 years Occupation – NID Student Vehicle owned- TATA NANO Average sending on his car / month- 4000 rupees approx.

Where does he/she gets car serviced- TATA service station His likes and dislikes- He loves to make short distance trips by his nano.

Buying behavior- Tanmay loves to spend on clothes, he is a big food lover, specially street food. Tanmay enjoys making short distance trips with his friends which helps him to share petrol expenses.

Customer’s Persona

Name- Siddhi Malve Age – 26 years Occupation – Architect Vehicle owned- Maruti Esteem Average sending on his car / month- 8000 rupees aprox.

Where does he/she gets car serviced- Local service station His likes and dislikes- he loves to see new places and travels most of the time with his family.

He does not like having a flat tire while travelling, so he makes sure to get his car checked before leaving for a long distance trip.

Spending behavior- Siddhi likes to spend money on his gadgets . As an architect he has to travel often to mumbai and within pune.

Consumer’s Persona

Name- Mr. & Mrs. Maniar Age – 38 years & 33 Years Occupation – I.T. Professional Vehicle owned- Mahindra Scorpio Average spending on his car / month- 10000 rupees aprox.

Where does he/she gets car serviced- Local service station His/Her likes and dislikes- Mr. Maniar loves to read books in his free time. Mrs. Maniar is a housewife and loves to spend time with her kids. They go outing on weekends.

Spending behavior- Major spending goes on the installments of his house and education of children's.

Consumer’s Persona

Name- Mr. Deepak Nire Age – 48 years Occupation – I.T. Professional Vehicle owned- Maruti Swift Average sending on his car / month- 12000 rupees aprox.

Where does he gets car serviced- Maruti service station His/Her likes and dislikes- Mr. Deepak likes to spend his time with family.

Spending behavior- Mr. Deepak mostly spend money on his family members.

Consumer’s Persona

Brand Identity

• Brand Name: PITSTOP CAR SERVICE • Color: Increased enthusiasm and interest More energy Action and confidence to go after your dreams Protection from fears and anxieties To emphasize your willingness to comply A Neutral, non-invasieve feeling

Brand Identity

• Logo – PitStop logo clearly signifies speed, trust and reliability in the service its provide. The sharp and closely spaced fonts give rise to the round form which incorporates the car (which we primarily cater to) and the thumbs-up symbol. All these elements combined together tell the story of PitStop’s experience to its customers.

• Brand Essence / Attribute – Speed & Trust

Brand Identity

• Space Expansion – Adding up more workspace within the setup • Geographic Expansion – Next target highway Bangalore – Chennai • Co-Branding – Tie-up with fast food franchise like McDonalds, CCD, etc.

Future Growth

Thank you Mentor: Prof. Deval Kartik Presented by: Kunal Dewalwar, Vineet Sharma, Arvind Sethia