Answer to Question #230041 in Marketing for Peter Masih

Question

Bharat Motors has been selling the “Konard” brand of passenger cars in India for the last

60 years. Their car has been the leading car market share wise for the last 50 years. But,for the last 5 years the scenario has changed. Many multinational car companies have

entered the country and introduced highly fuel efficient, user friendly, & high performance

models in the country. The buyers have thus seen the market change from sellers to

buyers’ market. Spectacular product characteristics have become the rule of the day.

Resultantly Konard has rapidly and constantly lost the market share. Realizing that the

company has no other alternative, they have tied up with a leading car company of Korea

and are now ready to launch an absolutely new and drastically improved version of the old

faithful Konard.

a. Is the company’s strategy of tie up with Korea car manufacturer and the readiness to

launch a completely newer version of Konard a wise decision? Justify your answer.

Answer 1

The Konard’s strategy to merge with the Korean car manufacturer is a wise decision since it will increase its market base for the products. At the same time, the marketing and promotion teams will be utilizing the resources and approaches of both companies to reach out to the customers. This way, Konard will increase its sales and successfully rejuvenate and improve the loyalty of customers