Freemium pricing at dropbox case study Example | Topics and Well Written Essays - 500 words

Freemium pricing at dropbox - Case Study Example That is the reason the company had to use the freemium pricing strategy. The company also coupled the strategy with referral activities, where individuals got the upgrade of storage when they referred their friends to the company (Teixeira and Elizabeth, 196). The result for this strategy was that Dropbox hold a large portion of client cloud storage market. The company also outpaced the internet giants like Amazon and Google in the market. This made the company to start targeting the corporate customers directly. Additionally, the Dropbox consumer version started at $120 increased to $800 for five years (Teixeira and Elizabeth, 195). Consequently, the company’s business product allowed the employers to manage the document of their employees. The product also incorporated single-sign-on option that can be installed to the computer system across the business. The strategy has no significant failure or a negative result. The only disadvantage of the strategy is that unless one is a master, the company cannot attain the customer acquisition objective. This is applied to startup companies. For corporate customers and business clients, Dropbox marketed his new brands to businesses. He carried out an endless decision cycles and made use of gatekeepers. The company opted to target the individual users. The idea behind the strategy was to get employees using the service within the company. The objective of the strategy was getting individuals to use and then like which they would get the employers to register as well. To achieve this, the company gave people ways of trying the service. To achieve this he used a freemium pricing strategy (Teixeira and Elizabeth, 197). Additionally, the company incentivized satisfied client to recommend them to their family and friends. Alternatively, Dropbox could choose Search Engine Marketing. This marketing is critical because it will give Dropbox chance to compete with other titan of the internet by being visible on the search

Zimbabwes economy in the past years and now Essay - 1

Zimbabwes economy in the past years and now - Essay Example This research will begin with the statement that during the past few decades Zimbabwe has faced major political and economic problems that have contributed to an almost dual figure negative growth in her economy. These factors have also contributed to an enormous rise in inflation, disregard of the rule of law and market breakdown. The country’s GDP has been a victim of decline since 1990. According to the macro economic figures researched by IMF in 2008, Zimbabwe’s GDP dropped from 7 % in 1990 to negative 6 % in 2007. This negative growth can be attributed to adverse weather conditions which led to the worst decline of negative 10 % GDP growth in 2003 which was a contribution of a major drought that was witnessed in 2003. These figures have however shown an encouraging growth since 2003. Currently, three major problems face Zimbabwe’s economy notably; scarcity of food, less fuel delivery, and power load-shedding as a result investors shy away. It is worth noting that the major cause of these problems dates back to the era where the country’s commercial farms were nationalized. Nationalization of commercial farms has seen its effect on a reduced export earnings and low food production. This means the country has to cater for expenses on an importation of food and consequently reduced earning in foreign currencies. In addition, foreign banks’ and donors’ withdrawal of financial aid, as well as credits, has worsened the state of the economy in Zimbabwe.

Sociology - The Comparative Method Essay Example for Free

Sociology The Comparative Method Essay Sociologists have embraced what is known as the comparative method as the most efficient way to expose taken-for-granted truths or laws that people have adopted. But what is this comparative method and how does it work? Are there any advantages/disadvantages to exposing these false truths. What forms or variations of the comparative method exist? In the pages to follow I will attempt to give you some insight and understanding of what the comparative method is, and how it works. The comparative method, simply put, is the process of comparing two things (in our case societies, or the people that make up society) and seeing if the result of the comparison shows a difference between the two. The comparative method attempts to dereify (the process of exposing misinterpreted norms. Norms that society consider natural and inevitable characteristics of human existence) reified (the human created norms or truths) beliefs. Obviously there are various ways in which a nomi (a labeled, sometime constructed, norm or truth) can be exposed. Which form of the comparative method should one use however? The answer, whichever one applies to the truth in question. For example, you certainly would not do a cross-gender form of comparison if you wished to expose whether or not homosexuality has always been feared and looked down upon by most people throughout history. No, rather you would perform a historical comparison of two or more different societies to see if these beliefs always existed, or, whether or not this is a newly constructed belief. Lets look at little more closely at the above mentioned historical comparison and see how the comparative method works with a specific example. There is no question that in todays western society there is a lot of fear and trepidation towards people who are labeled homosexual. The question we will attempt to answer however is whether or not it has always been like this and is this a universal truth. In ancient Greek societies people had a very different opinion of men that slept with men. For example, it was considered quite an honor for a family with a young boy under the age of 10, to be given the privilege on an older man of high society taking their son into his house. The young boy would go and live with this older man. The older man would have sex with the young boy on a regular basis until the boy developed facial hair. It was not until then that the boy was considered a man. Society thought that an older mans, of great reputation, semen would help the boy develop into a fine young man. Once the boy developed the facial hair, the sex between the two would stop. The older mans job was finished. Obviously this would be considered an atrocious and disgusting act these days. The older man in this case would certainly go to jail for the crimes that he had committed. However, in Ancient Greece this was not only considered perfectly normal, but as I already stated, it was an honor and a gift that not every boy was lucky enough to be given. Therefore, we can conclude from this comparison that homophobia, as we know it, is not a natural truth, nor is it a universal belief. Rather it is a socially constructed belief that many people have taken for granted as an inevitable part of human existence. It is important at this point to clarify something however. It is said that the role of the sociologist is a descriptive one as opposed to a prescriptive one. That is to say that the sociologist should describe the various practices, customs and structures that exist in various societies rather than suggest to people which one is actually the correct belief or the real truth. Cross-gender comparisons is another commonly used comparison used to reveal socially constructed truths. In Carol Gilligans book In a different voice we find a fine example of a cross-g ender comparison. She states that most people believe that the majority of people, both men and women, view morale issues in the same way. However, through empirical data collection, Carol Gilligan concludes that this is not most often the case. Rather, she states that men tend to approach moral issues quite differently than women. Where as men view morale issues with a dont interfere with my rights view, women focus more on the responsibility end of the morale involved. Thus we can conclude, thanks to the comparative method, that the constructed truth that all people view morale issues the same is not a correct one. Another quick example of a cross-gender comparison would be that of the house-wife. Still today most men view the role of the married woman as one that involves being a house-wife, in the traditional sense of the term. However, women today certainly would not view themselves in the same manner. The data collected from a comparison such as this could help to dereify this socially constructed truth. Cross-class comparisons is also a comparison commonly used when attempting to expose constructed truths between two classes. i.e. lower-class, upper-class, middle-class. For an example I refer to my lecture notes. Our professor gave us a fine example of a cross-class comparison involving his own life. He was from a middle-class family and attended a public school where he got involved with various kids from the middle and lower class. He grew up in this type of environment and accepted it as the his life as the way society was. To him, there was not another lifestyle. This was life. Several events occurred and because of these events our professor was moved, by his parents, to a private school. This private school and the new society that accompanied it resulted in a form of culture shock for him. All of a sudden he was placed in a new world, a world that he never even knew existed. As you can see, our professor socially constructed the view that society was like the one that he lived in when he went to his public school, hung around with middle and lower-class friends, and did what middle and lower-class kids did. When he was afforded the chance to compare that type of lifestyle to one of the upper-class he dereified his constructed view and his eyes opened to a new reality and a new view of the way society was. Another major comparative form is that of the cross-generational. This one is fairly straight forward. The name basically says it all. In fact, its much like the historical comparison method but on a much smaller scale. I believe that in order for it to be termed cross-generational, the generations that are being analyzed have to be living at the same time. Otherwise it becomes a historical comparison. Karen Anderson gives an example of a cross-generational comparison in her book Sociology : A Critical Introduction (1996, pg. 12). Canadians pride themselves on their tolerance and lack of prejudice. But we do not need to look very far into our history to find examples of taken-for-granted understandings that have led to discriminatory and prejudicial treatment. Some segments of the population have been classified as undesirable and thus as unwanted or undeserving outsiders Anderson is pointing out that the constructed view in Canada is that we pride ourselves on the fact that we have very little prejudice in Canada. She goes on to point out that this is not at all the case. She gives the example of Canadas history of immigration. She discusses the fact that a lot of Chinese people were allowed to immigrate to Canada, much to the dismay of current residents and already established European immigrants, during the time when the transcontinental railroad was being built. Sir John A. Macdonald was the Prime Minister at this time and defended his reputation by telling the people of Canada, who were very disturbed by his actions, that the Chinese immigrants would live in Western Canada just temporarily. To reassure the people further Macdonald said no fear of a permanent degradation of the country by a mongrel race. This would be considered horrific these days. Most Canadians would not even realize that their country was very closed to the idea of the immigra tion of certain types of people. The social idea that Canada is, and always have been, a very tolerant country is exposed as a false, constructed truth through this cross-generational comparison. Finally we come to the last major comparative form. That of the cross-cultural. Cross-cultural comparison consists of comparing two societies or cultures in an attempt to reveal and expose some socially constructed truths in order to prove that they are not universal but rather they are relative to each society. There are literally thousands of differences between almost every culture that people would be surely shocked to learn of. For the next example I will show how the cross-cultural comparative method dereifies some of the constructed so-called universal-truths that people in our society may have. India differs in its customs considerably from that of Canada or Northern America. For example, in Western Civilization families sit together when they attend church, in India this is not acceptable at all. Men and women must sit on opposite sides of the church. Men and women in India for the most part will not eat together, whereas in Western civilization it is a common practice and is actually looked upon as a good time for a little family bonding. In India it is considered rude to eat with both hands at the table. The right had is solely used for eating and the left for drinking. Obviously we have a completely different practice in Western society. Another shock that a Westerner might face if he/she were to travel to India would be the fact that it is still considered a major social impropriety for a man to even touch a woman in public. In North America public displays of affection can been seen everywhere. . (Stott, John. Down To Earth. 1980. Pg. 12-15) These are all prime examples of Western universal truths that are exposed when compared to another culture. One of the major benefits for exposing these truths through the comparative method is the fact that dereifying accepted truths leads to a decrease in ethnocentrism. Ethnocentrism is the act of interpreting all societies through ones own cultural lenses and believing that there idea of truths are the only correct ones. This could lead to the imposing of ones own beliefs onto other societies. In other words, comparing, exposing, and dereifying helps educate and eliminate ignorance when it comes to social truths. However, there is a danger to exposing social constructs. It could lead to one taking on the perceptive of a radical relativist (all truths are correct) or a nihilistic view (the belief that all truths are relative and therefore there are no truths). Obviously this is a very negative, and possibly a destructive, way of thinking. As you can see, the comparative method is an essential part of a sociologists practice. Without it there would be a lot of confusion and misunderstanding between people and societies. Hopefully I have shown by example the various forms of the comparative method and how each of them applies to society and how they attempt to expose falsities.

Impact of Direct Tax on Consumer Equilibrium

Impact of Direct Tax on Consumer Equilibrium OBJECTIVE This term paper is being done in order to check and determine the effect of various factors of the direct tax that have an impact on the consumer equilibrium. The main objective of this term paper is as under: To determine what is direct tax and consumer equilibrium Analysis of articles Impact of direct tax and other factors on consumer equilibrium. INTRODUCTION In introduction , we will start with the basic like- what is direct tax and what is consumer equilibrium. We will discuss these two in a elaborated manner. DIRECT TAX CONSUMER EQUILIBRIUM DIRECT TAX The term direct tax generally means a tax paid directly to the government by the persons on whom it is imposed.In the general sense, a direct tax is one paid directly to the government by the persons. on whom it is imposed (often accompanied by a tax return filed by the taxpayer). Examples include some income taxes, some corporate taxes, and transfer taxes such as estate (inheritance) tax and gift tax. In this sense, a direct tax is contrasted with an indirect tax or collected tax (such as sales tax or value added tax (VAT)); a collected tax is one which is collected by intermediaries who turn over the proceeds to the government and file the related tax return. Some commentators have argued that a direct tax is one that cannot be shifted by the taxpayer to someone else, whereas an indirect tax can be. The direct tax definition is not complete until we do not define or throw some light on indirect tax, thus- INDIRECT TAX A tax that is not assessed on and collected from those who are intended to bear it. Unlike a direct tax , it cannot take individual circumstances into account. Although levied on Producers , the burden of an indirect tax may be shift to consumers. Ex: value added tax, sales tax, payroll tax and excise duties CONSUMER EQUILIBRIUM When consumers make choices about the quantity of goods and services to consume, it is presumed that their objective is toÂÂ  maximize total utility.ÂÂ  In maximizing total utility, the consumer faces a number ofÂÂ  constraints, the most important of which are the consumersÂÂ  incomeÂÂ  and theÂÂ  pricesÂÂ  of the goods and services that the consumer wishes to consume. The consumers effort to maximize total utility, subject to these constraints, is referred to as theÂÂ  consumers problem.ÂÂ  The solution to the consumers problem, which entails decisions about how much the consumer will consume of a number of goods and services, is referred to asÂÂ  consumer equilibrium. Determination of consumer equilibrium.ÂÂ  Consider the simple case of a consumer who cares about consuming only two goods: good 1 and good 2. This consumer knows the prices of goods 1 and 2 and has a fixed income or budget that can be used to purchase quantities of goods 1 and 2. The consumer will purchase quantities of goods 1 and 2 so as to completely exhaust the budget for such purchases. The actual quantities purchased of each good are determined by the condition for consumer equilibrium, which isÂÂ   This condition states that the marginal utility per dollar spent on good 1 must equal the marginal utility per dollar spent on good 2. If, for example, the marginal utility per dollar spent on good 1 were higher than the marginal utility per dollar spent on good 2, then it would make sense for the consumer to purchase more of good 1 rather than purchasing any more of good 2. After purchasing more and more of good 1, the marginal utility of good 1 will eventually fall due to the law of diminishing marginal utility, so that the marginal utility per dollar spent on good 1 will eventually equal that of good 2. Of course, the amount purchased of goods 1 and 2 cannot be limitless and will depend not only on the marginal utilities per dollar spent, but also on the consumers budget. LITERATURE REVIEW Hegde, Prakash and Barve, Nachiket, June 27,2010, Impact of direct tax code on individual, BUISNESS LINE says that Though most of the existing provisions of the income-tax law are finding place in the DTC, many provisions are new or modified that will affect the individuals significantly.The prominent ones are like DTC proposed significant reduction in individual income-tax by increasing tax slabs 30 per cent tax rate at an income level of Rs 25 lakh (present Rs 8 lakh).If proposed tax slabs and rates are implemented, then taxpayers take-home pay may see a substantial jump. However, in view of relaxation or rollbacks of other tax proposals, one has to wait and watch whether Government still intends to offer the proposed tax slabs and rates. EEE preferred over EET, EET results in higher tax at retirement in contrast to ability to pay. Recognising the fact of absence of a well developed social security system and other challenges (technical / administrative) Government thought it fit to retain EEE and partial EET. One of the strange provisions in DTC, which had not caught public attention but can affect a common man travelling abroad, is furnishing an undertaking to the tax officer to the effect that he has made satisfactory arrangement for discharging his tax liability in India before he leaves India. The tax officer has to issue a no-objection certificate for his travel. If travel is made without a no-objection certificate from the tax office, the owner or charterer of the aircraft will be held responsible to pay the taxes due, if any.This process would have been more of a hurdle than a smooth ride. Gillingham, Robert and Greenlees, John S, 4 August 1987, The Impact of Direct Taxes on the Cost of Living says in the article that, a cost-of-living index including direct taxes. They show its relationship to the traditional index and demonstrate how non consumption costs are properly treated. They then define a fixed-weight approximation, a tax and price index (TPI). Using federal, state, local, and social security tax rates for 1967- 85, the authors construct annual TPI series based on household data. They find that inclusion of direct taxes has sizable impacts on the estimated rate of inflation. Partitioning their household sample, they find that recognition of taxes significantly alters inflation rate differentials estimated using consumption prices alone. Subramani, V.K, 29, August 2010, Expectation from code revision, according to the author, There is a huge expectation that the revised Code would address the concerns of the taxpayers at large, by retaining the existing tax concessions and providing smooth transition, with minimal scope for confusion or litigation. There is Positives, negatives traits of the code. There are some positives in the first draft of the DTC, such as: (i) minimum rate of personal tax at 10 per cent for incomes up to Rs 10 lakh;(ii) deduction in respect of savings (similar to Section 80C) up to Rs 3 lakh;(iii) presumptive taxation of income for turnover up to Rs 100 lakh;(iv) short-term capital loss under the present law, called as terminal allowance in the DTC, eligible for deduction while computing business income; and(v) making reference to financial year instead of the currently used terms such as previous year and assessment year.The negatives of the DTC, prima facie, include: (i) clubbing of spouse inc ome with the income of spouse, whoever has higher income;(ii) restricting the exemption in respect of accumulated balance in provident fund account up to March 31, 2011;(iii) denying carry forward of business loss to any year, if the return is filed beyond the due date both in the year of incurring loss and any subsequent year in which it is carried forward with or without set off ;(iv) denying deduction in respect of medical treatment expenses (present Section 80 DDB) to HUF;(v) reduction in time limit for passing order of rectification to two years;(vi) advancing the date for filing the return of tax base and imposing penalty for failure to file tax base return before the due date as against the present time limit of March 31 of the assessment year; and(vii) giving precedence to the DTC in the event of conflict between DTAA and DTC. Parthasarathy, Suresh, 20,June 2010, How the revised tax code impact us, BUISNESS LINE, says that without social security the proposed EET (Exempt-Exempt-Taxed) structure was harsh on individuals, the revised code has proposed to bring some relief to long-term savings investment such as PF, PPF, New Pension Scheme, approved pure life insurance, annuity schemes and GPF. These will now be subject to the Exempt-Exempt-Exempt (EEE) method of taxation rather the EET model proposed last year. . The revised DTC proposes to follow the existing method of tax deduction on home loan at least for the interest paid. In case of the house being self-occupied, the individual will be eligible for deduction of interest on capital borrowed for acquisition or construction of the house, subject to a ceiling of Rs 1.5 lakh, from the gross total income. This revised proposal is a change from the earlier stand of disallowing tax exemptions on the interest and principal paid on house property. The New Pensio n Scheme, was struggling to find patronage owing to uncertainties relating to its tax structure. In a attempt to make this scheme more attractive and to introduce some flexibility in making withdrawals in lump sum without being subject to taxation, the revised code proposes to extend the EEE method of taxation to the pension scheme administered by the Pension Fund Regulatory and Development Authority, apart from PF, GPF and recognised Provident Funds. Under the revised code, capital gains arising on account of transfer of equity shares or units of an equity oriented fund held for more than one year will be computed after allowing a deduction at a specific percentage of capital gains without any indexation. Buch, Drupadh, 30 July 2010How Revised Direct Taxes Code Will Impact Senior Citizens, EZINE ARTICLES, according to the author of the article, it states that how direct tax has impact on senior citizen there has not made any changes in the Income Tax Rates and Income Tax Slabs that were proposed in the original draft. That means there is no change in the basic exemption limit for the Senior Citizens (resident individual of 65 years or above), which is 240,000 per year. In the revised DTC, there is no change in the limit of deductions from taxable income for savings in specified investments. In the original draft, the limit has been proposed to be revised to 300,000 from the present limit of 100,000. However, it should not make much difference to the Senior Citizens, as the tax incentives for savings are basically meant for the youngsters. , the retirement benefits such as gratuity, commuted pension, voluntary retirement compensation and leave encashment will be exempt from tax subject to specified limits. Original Draft DTC had proposed a scheme of deferment of tax on retirement benefits, that is, the retirement benefits would not be taxed if it were invested in a Special Retirement Benefit Account, which would be subsequently taxed in the year of withdrawal. In the New DTC, be it in the original draft or in the revised discussion paper, there is nothing very much special for the senior citizens except the higher income tax slabs and the corresponding reduced tax rates. If the basic exemption limit of 240,000 for senior citizens were revised substantially, it would have definitely been a great boon to the Senior Citizens. Latest IRI Research Finds a New Consumer Equilibrium Emerging as Economy Continues to Transform It is no secret that the ongoing economic turmoil is dramatically affecting consumers shopping and purchase behaviors. Consumers are eating out less, reducing the number of doctor visits and foregoing vacations to stretch their limited dollars. But, which consumer groups are driving these cost-saving strategies? The latest research from Information Resources (1) The data and information assets of an organization, department or unit. See data administration. (2) Another name for the Information Systems (IS) or Information Technology (IT) department. See IT. , Inc. (IRI), Competing in a Transforming Economy 4.0: The New Equilibrium leverages post-inaugural survey results to identify key consumer segments that are leading the change and helps retailers and manufacturers connect with their most important consumers. Since the beginning of 2009, a new consumer equilibrium has emerged in which behaviors initially implemented to weather the storm have the potential to last well beyond an economic recovery. In this phase of our research, we went beyond studying the common spending, self-reliance and self-health strategies that are becoming common place in todays environment and examined how economic pressures have driven different types of consumersby income level, household composition and even varying consumer mindsetsto change their strategies. Gidwan, Sunil and Desai, Jignesh, October, 2010, New Direct Tax Code: Impact on Banking sector, THE ANALYST. According to the author, The DTC is a good step taken by the Government of India to reduce litigations and simplify the tax provisions followed for nearly five decades. The banking sector plays a vital role in the economic development of any country. In India, the financial service sector is now acknowledged as the next growth engine. It is therefore crucial that fiscal policies recognize this role and through various measures support and strengthen the sector. Despite the representation made on behalf of the financial service sector after the first draft of the Direct Tax Code (DTC), the new DTC does not seem to address some of the issues faced by the banking sector. India has a better banking system in place, as compared to the other developing countries, but there are several issues that need to be addressed in order to ensure that these issues do not remain as hurdles in t he sustained economic development of the country. . A number of stringent proposals were brought in the draft Direct Taxes Code, 2009. There were several areas of concern. Most of them, such as asset-based Minimum Alternate Tax (MAT) and treaty override, were addressed by the Finance Minister through the release of a Revised Discussion paper earlier in June this year SOURCE OF DATA: The source of data that I have used is SECONDARY SOURCE DATA. Secondary data is elected in form of information which has already been collected by someone. Along with this some information on direct tax, their features are collected from internet. For more information regarding research methodology , books from library have been referred. ANALYSIS OF THE TOPIC The direct tax and the consumer equilibrium has a direct relationship with each other. The direct tax code slabs affect the consumer in many ways and its not just only direct tax that has an impact on the consumer equilibrium there are many other things that effect consumer equilibrium. When the direct tax which are implemented on the individual are low, i.e., the rate of tax that a consumer has to pay is minimum, it provides him the larger window to earn more money as less money will be deducted from his earnings. Due to this the budget line of the consumer will show the deviation, it will move towards right side INDIFFERENCE CURVE EQUILIBRIUM POINT BUDGET LINE QTY OF A QTY OF B Fig a:High direct tax Figb: Low direct tax As we can see the above figure depicts if the direct tax that the individual has to pay are decreased than there will be the upwards shiftment of the budget line which will allow the consumer to buy more products by increasing his budgets. Indifference curve in the figure plays an important role , indifference curve should be tangential to the budget line because its the most optimum level at which the consumer could use his budget to get maximum satisfaction. The following conditions should be kept in mind for consumer equilibrium: Consumer spends all the income in buying two commodities ;hence point of equilibrium will lie on budget line. The point of equilibrium will always be on the highest possible indifference curve that consumer can reach. Slope of indifference curve should be equal to the slope of budget line. In other words: MUm/MUn = Pm/Pn There are also some major factors that has effect on consumer equilibrium, which are as under: Price effect Income effect Substitution effect Price Effect: Change in the price of the any of the goods he consumes will also lead to change the equilibrium point. Price effect shows the reaction of consumer to the change in the price of a commodity, other things remaining the same. It measures the change in amount (quantity) demanded of a commodity with change in its price when price of the other commodity with which it is being combined remains the same. When there is increase in the price of a commodity, obviously he consumes it less (and becomes worse off). And when the price of the commodity decreases or falls, he consumes the commodity more (and becomes better off). Remaining the consumption of a commodity in the combination same, it is clear that when the price of commodity (another in combination) increases, consumer shifts to the lower indifference curve, and when price falls, consumer goes to higher indifference curve. When the price of a commodity in X-axis increases (remaining the price of commodity on Y axis same, consumer will certainly reduce the consumption of commodity in X axis. Budget line shifts downward. After increase in the price of good in X axis, his budget line moves down wards. He gets the new equilibrium point at which it is lower. This is in case of rise in price of a commodity. Price Consumption Curve may be upward sloping, downward sloping (or backward sloping). Nature of slope of PCC shows the types of goods and their cross elasticity of two goods. Slope PCC is dependent on the nature of goods whether they are inferior, superior, luxurious or whether the combination is complements or substitutes. Income effect: When there is change in income of consumer, there is change in equilibrium point due to change in quantity demanded; when there is change in income, there is shift in budget line. Generally income and quantity demanded relationship is positive. But it depends on the nature of goods whether it is inferior or normal. If good is griffin paradox or inferior, income demand relationship is negative. A line joining equilibrium points which are set due to change in income is income consumption curve. When there is increase in income , quantity demanded of both commodities increases. PL is the original budget line or price line. When income of consumer decreases from PL to PL1, consumer consumes both the commodities less and Equilibrium E1 is set on new budget line P1L1 and in lower Indifference Curve IC1. But when there is increase in income of consumer, his budget line shifts upward to the right from the origin (P2L2). During increase in income, consumer consumes both the commodities more and equilibrium is set at point E2 on higher IC on budget line P2L2. Both commodities in X and Y axis are normal goods so ICC is sloping upward. E2 E1 P2L2 PL P1L1 PL1 Substitution Effect: Substitution effect is also one of the responsible factor to cause change in consumers equilibrium. Substitution effect is the result of consumers inherent tendency to substitute cheaper goods for the relatively expensive ones. Substitution effect means the change in the purchase of a commodity as a consequence of change in relative price alone, real income remaining the constant.When price of a good changes, the real income (or purchasing power) of the consumer is also changed. To keep real income of the consumer constant so that the effect due to change in relative price may be known, price change is compensated by simultaneous change in income. For example when the price of good X falls, real of consumer increases. To find the substitution effect (i.e change in demand of X due to change in its relative price), we reduce the money income of consumer (to cancel the increase in real income due to fall in price of X). For further study of substitution, two slightly different theories have been developed. Theory developed by Hicks and Allen is called Hicks Substitution Effect and theory developed by E.Slutsky is known as Slutsky Substitution Effect MERITS/DEMERITS OF DIRECT TAX MERITS OF DIRECT TAXES Direct taxes are the main income sources of government. These taxes are easy to calculate on income and wealth of individuals and businesses. Direct taxes finance government affairs to run smoothly. These taxes help government to start and continue public welfare operations DEMERITS OF DIRECT TAX The implementation or direct tax is a tough job as people are resistant and show wrong assessment of their income and avoid tax payment. Direct tax has the negative impact of individual income and decrease the amount of disposable income. The collection is difficult as compare to indirect tax where consumer do not feel a direct burden of tax. Cost of collection of direct tax is greater than indirect tax. Change in the rate and pattern is also difficult for direct taxes as compare to indirect taxes

Health Care and Insurance Coverage Essay -- system, insurance, coverage

Everyone knows that in order to be a functional human being, your health must be in order. Bacteria and diseases can be devious forces if someone's system is not equipped to fight them off. In order to prevent said things from attacking our immune systems, we go to the doctor for guidance in the areas of taking care of ourselves, but going to these doctors has a price. Most people living comfortably would tell you that their insurance covers ever bump and bruise that appears on them, but what about those who cannot afford health insurance? Luckily for them a document, The Patient Protection and Affordable Care Act, was signed into law by President Barack Obama so that they may have the same opportunities for coverage concerning their health. It is necessary for everyone to have health insurance to prevent the spreading of diseases, end the depletion of the population due to illness, and to keep the core of America's workforce healthy. There have been several epidemics and outbreaks in our nation and in other areas of this world due to weak immune systems and no form of preparation to counterattack bacteria cells entering the bloodstreams of the population. As time progressed and technology advanced, those in the medical field discovered ways to stop certain reactions before they happened or cure them once they have already began to damage an individual internally. But if there is a large sum of the population unable to afford the things necessary to receive the aid that will boost their health, then diseases will only continue to circulate and morph into even more dangerous compositions that will eventually overpower our medicines. And if we are unable to tame the new viruses, the human race may cease to exist. Hundreds of thou... ... â€Å"Non-Grandfathered† plans are required to change before December 15, 2013, to ensure no lapse in coverage because existing plans will terminate the end of this year. Basically, no one will be denied health services, benefits, or prescription drugs and monthly premiums will be calculated based on age, region, and use of tobacco products. It is in the best interest of the public to have health care afforded to all. I myself am preparing for a future in medicine and my main concern is to help all of those in need, not just a select few. Evidently there are many negative effects that come along with individuals not being covered health wise and it can eventually be a detriment to society if the problem is not fixed. With the Patient Protection and Affordable Care Act that problem has a solution and can ultimately have a positive impact on many aspects of this country.

An Intellectual and Emotional Response to Oedipus the King :: Oedipus the King Oedipus Rex

An Intellectual and Emotional Response to Oedipus the King    While reading the play Oedipus the King, my response to the work became more and more clear as the play continued. When I finished the play, my reaction to the work and to two particular characters was startling and very different from my response while I was still reading. My initial response was to the text, and it was mostly an intellectual one. I felt cheated by the play because the challenge of solving the mystery of the plot was spoiled for me by the obvious clues laid out in the work. My second response was not as intellectual; instead, it came more from a feeling that the play evoked in me. I felt a strong disappointment in the drastic actions that Oedipus and Jocasta took at the end of the play. My two different responses to Oedipus the King, one intellectual and one not, now seem to feed off and to amplify each other as if they were one collective response. The play's plot, in a nutshell, develops like this. After solving the riddle of the Sphynx, who had kept Thebes under a curse of some kind, Oedipus is invited to become king of the city. He marries Jocasta, the widow of the previous king, and they have two children. When the play begins, Thebes is again under some sort of curse, and Oedipus tries to find out its cause so that he can rescue the city. He is told that the cause of the curse is that the murderer of the previous king is still in the city and has gone unpunished. In the process of searching for the murderer, Oedipus discovers that it is he, himself, who is responsible and that he is actually the son of Jocasta and her previous husband. Horrified by his sins of incest and murder, Oedipus claws out his eyes. Jocasta commits suicide because she is so disgraced. My disappointment in the lack of mystery in the plot of the play was evoked by the continual clues appearing throughout the play. For example, in Oedipus's first speech to the people of Thebes, he condemns the murderer of the previous king, stating that "he will suffer no unbearable punishment, nothing worse than exile" (261-62). This is the first of a multitude of clues about the outcome of the play.

Two-Wheeler Automobile Industry in India

TWO-WHEELER AUTOMOBILE INDUSTRY IN INDIA By group IX, MBA ‘Sec A’ Submitted to : Submitted by : Mrs. Smitha Nayak Anooj Balachandra Chandrakanti Shatrudra Saurabh ACKNOWLEDGEMENTThe satisfaction and joy that accompanies the successful completion of a task is incomplete without mentioning the name of the person who extended her help and support in making it a success. We are greatly indebted to Mrs. Smitha Nayak , our Project Guide and Mentor for devoting her valuable time and efforts towards our project. We thank her for being a constant source of knowledge, inspiration and help during this period of making project.GROUP IX Anooj Balachandra Chandrakanti Shatrudra Saurabh TABLE OF CONTENT * Objective of the project * Introduction to Indian automobile industry * BCG matrix representation of automobile sector among various sectors * Overview of two-wheeler sector Fleet composition of all vehicles * Two-wheeler fleet composition in India * Structure of two-wheeler indus try * Usage pattern of two-wheeler in India * Key players in two wheeler industry * Introduction & Product mix Hero Honda & Bajaj (competitor) * 4 P’s of marketing of Hero Honda * Market segmentation, Targeting and Positioning of Hero Honda. * Porters five force model for Hero Honda * SWOT analysis of Hero Honda (Karizma) * SWOT analysis of Bajaj (Pulsar) * Comparison of advertising strategy of Hero Honda and Bajaj * Future challenges ,Plans and SuggestionsOBJECTIVE OF THE PROJECT:- The main objectives of the Project study are: * Detailed analysis of Automobile industry which is gearing towards international standards. * To conduct market research with regard to two-wheeler automobile industry and understand its marketing strategies. * Analyze the impact of qualitative factors on industry’s and company’s prospects * Comparative analysis of major tough competitor. * To understand the current trends in two-wheeler automobile industry. INTRODUCTION TO INDIAN AUTOMO BILE INDUSTRY Automobile is one of the largest industries in global market.Being the leader in product and process technologies in the manufacturing sector, it has been recognized as one of the drivers of economic growth. During the last decade, well directed efforts have been made to provide a new look to the automobile policy for realizing the sector's full potential for the economy. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group. A Nations economy is well known from its transport system.For instant and rapid growth in economy, a well-developed and well-networked transportation system is essential. As India's transport network is developing at a fast pace, Indian Automobile Industry is growing too. Also, the Automobile industry has strong backward and forward linkages and hence provides employment to a large section of the population. Thus the role of Au tomobile Industry is very essential in Indian economy. Various types of vehicles are manufactured by the Automobile Industry. Indian Automobile Industry includes the manufacturing of trucks, buses, passenger cars, defence vehicles, two-wheelers.The two-wheeler manufacturing is dominated by companies like TVS, Honda Motorcycle & Scooter India (Pvt. ) Ltd. , Hero Honda, Yamaha, Bajaj, etc. The automobile industry in the country is one of the key sectors of the economy in terms of the employment opportunities that it offers. The industry directly employs close to around 0. 2 million people and indirectly employs around 10 million people. The prospects of the industry also has a bearing on the auto-component industry which is also a major sector in the Indian economy directly employing 0. 25 million people.BCG Matrix Representation of Automobile Sector among various Sectors:- In an economy, different industries are present and different industries have different growth rate as compared to the growth of the economy. In an economy, there are a number of major industries and they all occupy different positions in the BCG matrix according to their growth and contribution towards the economy. In the Indian economy, some of the major sectors are FMCG, automobiles, banking and insurance, steel, telecom, software, pharmacology and retail sectors and these can be placed in the different positions in the matrix as shown below:INDUSTRY BCG MATRIX AUTOMOBILES Market Growth Rate High Banking & Insurance Software STARS | QUESTION MARKS Retail Telecom | CASH COWS Low FMCG | DOGS | High Low Relative market share BCG matrix is used to determine the relative position of the companies of an industry or different SBU’s of any institution, in terms of the market growth rate and the market share of the company in the industry. In the Indian automobile sector, the major players are Maruti Suzuki Limited, General motors, Mahindra and Mahindra, Tata Motors, Hero Honda and Bajaj aut o.In the BCG matrix, the companies are placed in one of the following four categories: Star, Cash Cows, Dogs and Question marks. In the Stars we place the companies with high market growth and high market share, cash cows are the companies who have low market growth rate and high relative market share, the category of the question marks include the companies with low relative market share and high market growth rate and dogs include the companies who have low relative market share and low market growth rate. OVERVIEW OF TWO WHEELER SECTOR Two Wheeler IndustryIndian two -wheeler contributes the largest volumes amongst all the segments in automobile industry. This segment can be broadly categorized into 3 sub-segments viz. ; scooters, motorcycles and mopeds. In the last four to five years, the two-wheeler market has witnessed a marked shift towards motorcycles at the expense of scooters. In the rural areas, consumers have come to prefer sturdier bikes to withstand the bad road conditi ons. In the process the share of motorcycle segment has grown from 48% to 58%, the share of scooters declined drastically from 33% to 25%, while that of mopeds declined by 2% from 19% to 17% during the year 2008-09.The Euro emission norms effective from April 2000 led to the existing players in the two- stroke segment to install catalytic converters. All the new models are now being replaced by 4-stroke motorcycles. Excise duty on motorcycles has been reduced from 32% to 24%, resulting in price reduction, which has aided in propelling the demand for motorcycles. Within the two-wheeler industry, motorcycle segment grew at a phenomenally high rate of 35% as against a deceleration of 3% for scooters and 27% for mopeds. In fact, motorcycle has been taking away the share of scooters and mopeds in a 4. million two-wheeler market and surging ahead with its market share of 68%. The increasing demand from semi-urban and rural segments may have caused this positive shift towards motorcycles. Also, easy credit coupled with low interest rate regime, constrained personal transport, increasing income levels in middle class and higher aspirations of young people all seem to be the factors responsible for such high growth in two-wheelers. The growth in two-wheelers has been robust enough to counter the slowdown and other factors constraining the overall business activity in the country.Also, rationalization of excise duty in the Union Budget 2002-03 had a positive impact on the demand for motorcycles. We also expect the motorcycles to continue to lead the two-wheeler segment like in all other Asian countries. Available forecasts suggest that this trend would continue for another couple of years and the industry would record nearly double-digit average annual growth up to 2006. During the year, there have been important developments in two-wheeler industry. The competition has strengthened though there are hardly any new entrants into the industry.There is an increasing emphas is on price and this has led to cost cutting efforts all across the industry, thereby, making the customer an ultimate beneficiary. The trend also saw introduction of new motorcycles with capacity ranging from 100 to 180cc bikes. We anticipate that many more new models will be launched during the year and provide customers plenty of choice at competitive prices. Businesses cannot consistently grow at 25-30 per cent. Each business has a tendency to taper and plateau after attaining a particular size. An annual growth rate of 10-12 per cent over a period of time is extremely healthy.The TCS study rankings are conducted at the motorcycle segment-level to provide comparisons among similar groups of motorcycles. Motorcycles ranking highest in their respective segments for TCS are: Hero Honda CD100 SS (best standard motorcycle segment); Hero Honda Splendor (best executive motorcycle segment); Bajaj Pulsar (best premium motorcycle segment); and Royal Enfield Bullet Electra (best cruiser mo torcycle segment). The feeling of freedom and being one with the Nature comes only from riding a two wheeler. Indians prefer the two wheelers because of their small manageable size, low maintenance, and pricing and easy loan repayments.Indian streets are full of people of all age groups riding a two wheeler. Motorized two wheelers are seen as a symbol of status by the populace. Two wheelers in India are the second largest producer and manufacturer of two-wheelers in the world. It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. Indian two-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a small beginning in the early 50's. The Automobile Products of India (API) started manufacturing scooters in the country.Bikes are a major segment of Indian two wheeler industry, the other two being scooters and mopeds. Indian companies are among the largest two-wheeler manufacturers in the world. In the initial stages, the scooter segment was dominated by API; it was later overtaken by Bajaj Auto. Although various government and private enterprises entered the fray for scooters, the only new player that has lasted till today is LML. The motorcycle segment was initially dominated by Enfield 350cc bikes and Escorts 175cc bike. The two-wheeler market was opened to foreign competition in the mid-80s.And the then market leaders – Escorts and Enfield – were caught unaware by the onslaught of the 100cc bikes of the four Indo-Japanese joint ventures. With the availability of fuel efficient low power bikes, demand swelled, resulting in Hero Honda – then the only producer of four stroke bikes (100cc category), gaining a top slot. The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively. These two players initially started with assem bly of CKD kits, and later on progressed to indigenous manufacturing.In the 90s the major growth for motorcycle segment was brought in by Japanese motorcycles, which grew at a rate of nearly 25% CAGR in the last five years. The industry had a smooth ride in the 50s, 60s and 70s when the Government prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden growth in the 80s. The industry witnessed a steady growth of 14% leading to a peak volume of 1. 9mn vehicles in 1990. In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0. mn vehicles. Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94. Hero Honda showed a marginal decline in 1992. The reasons for recession in the sector were the incessant rise in fuel prices, high input costs and reduced purchasing power due to significant rise in general price level and credit crunch in consumer financing. Factors like increased production in 1992, due to new entrants coupled with the recession in the industry resulted in company either reporting losses or a fall in profits. Two wheeler fleet composition in India:- STRUCTURE OF TWO WHEELER INDUSTRY Mopeds:- Over the last 15 years, moped’s contribution in overall 2-wheelers has declined significantly and now it remains a marginal category with just one manufacturer for the product. Its contribution in the 2-wheelers industry now stands at 5% and we expect that this segment will continue to be marginalised. The only player in this segment is TVS Motor. * Scooters:- Advent of fuel efficient motorcycles in the Indian 2-wheelers industry led to decline of Scooters. However, over the last five years, it has made a recovery and is emerging as a niche segment targeted towards women commuters.One of the reasons for this is the increasing need of mobility for the women commuters especially in the urba n areas is due to higher number of college going girls and greater participation of women in urban work force. The product itself has gone for a complete revamp and now this category mainly consists of gearless products. This segment is now dominated by Japanese manufacturers with HMSI having the leadership. HH, which is a late entrant in this segment, has also cornered a sizeable market share in the scooter segment. Another development in this segment is the launch of battery operated scooters.However, given the high replacement cost for the batteries, this has remained a marginal segment. * Motor cycles and bikes:- * Executive Segment Executive segment is the largest motorcycle segment and this is the stronghold of market leader HH. Competitors have tried to challenge HH in this segment, however all such challenges have fizzled out over time. With higher growth in economy segment, the contribution of this segment had come below 50% in FY06. However over the last three years, it ha s made a strong come back and now accounts for almost 60% of the motorcycle share. * Premium SegmentThis segment was creation of HH with ‘CBZ' And ‘KARIZMA’; however major boost to the segment was given by BAJAJ through ‘Pulsar' which has dominated the segment. HH has remained a marginal player in this segment and one of the reasons for this is presence of HMSI in this segment. This segment remains a small segment in the Indian market with contribution of around 23% to the motorcycle industry. This is the performance segment and customers pay a premium for the novelty. Hence constant upgradation in the product is a requisite for success in this segment. Usage Pattern of two-wheelers in IndiaIs quite different from other countries * Initial cost and fuel economy are highest priority. * Low maintenance costs are desired. * Small entrepreneurs and farmers conduct their business carrying loads. * Very limited usage for sports bike. * Indians prefer the two wheel ers because of their small manageable size, low maintenance, and pricing and easy loan repayments. Key players in the Two-wheeler industry: * Hero Honda motors ltd. * Bajaj auto ltd. * TVS motors company ltd. * Yamaha motors India * Honda motorcycle and scooters India Motorcycles in India: Bikes comprise a major segment of Indian two wheeler industry.Companies : Hero Honda Motors Ltd (HHML ) Hero Honda Motors Limited was established in 1984, as a joint venture between India's Hero Group (world's largest bicycle manufacturers) and Japan's Honda Motor Company. And created the world's single largest two wheeler company and also one of the most successful joint ventures worldwide. During the 80s, Hero Honda became the first company in India. Over 19 million Hero Honda two wheelers running on Indian roads today. * Hero Honda CD Dawn * Hero Honda CD Deluxe * Hero Honda Glamour * Hero Honda Glamour-Fi * Hero Honda Karizma * Hero Honda Passion Plus Hero Honda Pleasure * Hero Honda Super Spl endor * Hero Honda Splendor NXG * Hero Honda CBZ X-Treme Bajaj Auto Ltd Company : Bajaj is the first Indian two wheeler automobile company in the market since 1945 with the name M/s Bacharj trading corporation private limited. In 1959 M/s Bacharj trading corporation private limited change its name as Bajaj Auto Ltd. Bajaj Auto obtains license from the Government of India to manufacture two- and three-wheelers vehicles in 1959. * Bajaj Avenger * Bajaj CT 100 * Bajaj Platina * Bajaj Discover DTSi * Bajaj Pulsar DTSi * Bajaj Wave * Bajaj Wind 125 * Sonic DTSiTVS Motor Company : TVS Motors is the third largest company in the two-wheeler industry with a market share of 16%. Infect, it is the only Indian company without a foreign collaboration in the two-wheeler industry. When the company opted out of the collaboration with Suzuki in 2002, many believed that TVS was headed towards extinction. But the company proved the doomsayers wrong and came out with a very successful `TVS Victor'. TVS Motors Ltd. originally incorporated in 1982 to manufacture two-wheelers in collaboration with Suzuki Motors of Japan, TVS was one of the leaders in two-wheeler industry. TVS Apache * TVS Centra * TVS Fiero * TVS Star * TVS Victor Yamaha Motor India: Yamaha Motor Corporation is the auto mobile company of Japan (1953) which works in India since 1955 and providing latest technology in India from last two decades. Yamaha Motor India was incorporated in august 2001 as a 100% subsidiary of Yamaha motor corporation, Japan * Yamaha CruxS * Yamaha G5 * Yamaha Gladiator * Yamaha FZ 16 * Yamaha R15 * Yamaha Fazer Honda motor: Honda motors of Japan is not a new name in the two wheeler scenario in the country, they were in a tie up with the Firodias owned Kinetic group.However in the late 90s they parted ways after problems arose over issues like introduction of new models, advertising expenditure, marketing strategies and other related issues. In the mid 80 Honda motors of Japan joined hands w ith the largest bicycle maker of India the Hero cycles to create Hero Honda which in a couple of decades or so have gone on to become the single largest motorcycle company in the world. Though Honda has come on its own on the Indian market yet it will be providing technological support to Hero Honda for the next ten years.Thus presenting a unique situation in which the company will be in direct competition with the company which it has been associated for nearly two decades. Honda Motorcycles and Scooters India limited, a 100% subsidiary of Honda motor company Japan eventually entered the Indian market with Honda Unicorn in 2004. * Honda Unicorn * Honda activa Now further the marketing strategies of HERO HONDA and its competitor BAJAJ will be analyzed. HERO HONDA * The Company was Incorporated on 19th January,1984 at New Delhi as a joint venture. Today Hero Honda is the largest two-wheeler manufacturer in the world producing more than 3 million units of two-wheeler per year. * The c ompany's most popular model is the Hero Honda Splendour, which is the world's largest-selling motorcycle. * Over 19 million Hero Honda two wheelers are on Indian roads today. * Hero Honda CD-100 is the first four stroke motorcycle to be introduced in India in 100cc range. * During the fiscal year 2008-09, the company has sold 3. 28 million bikes. PRODUCT MIX SCOOTER| BIKE 100CC| 125CC| 150CC| 220CC| PLEASURE| CD 100SPLENDORSPLENDOR+PASSIONPASSION+| AMBITIONGLAMOR| CBZCBZ XTREME| KARIZMA|BAJAJ (COMPETITOR) * Established in 1945. * Started production of scooters in 1961 and became first two wheeler manufacturing company of India. * Bajaj Auto, is ranked as the world's fourth largest two and three- wheeler manufacturer. * Bajaj Auto is India’s largest exporter of two wheelers. * During 2008-09, the company exported 772,519 two and three-wheelers recording a growth of 25 percent over 2007-08. * Exports now constitute 37 per cent in volume terms and 35 per cent IN value of net sal es. PRODUCT MIX 100CC| 125CC| 135CC| 150CC| 180CC| 200CC| 220CC| BAJAJ CT 100, BAJAJ PLTINIA, BAJAJ WAVE DISCOVER,BAJAJ WIND,BAJAJ XCD| PULSAR-135| PULSAR-150| PULSAR-180,AVENGER| PULSAR-200| PULSAR-220| 4 P’s OF MARKETING OF HERO HONDA :- PRODUCT Hero Honda, which has a technology tie-up with Japan's Honda Motors, was currently discussing the feasibility of manufacturing scooters for the Indian market, Mr. Munjal said. However, the company has a binding clause with Honda's scooter manufacturing Indian subsidiary, preventing it from making scooters till 2004. Hero Honda Motors, India's largest motorcycle company, has launched the premium segment 223cc motorcycle Karizma priced at Rs 79,000 (ex-showroom, Delhi).Many of the products which the company has started with have been phased off. Now the existing products are Karizma, Ambition, CBZ, Splendor, Splendor+, Passion, Passion Plus, CD 100 SS, CD 100 and CD Dawn. The TCS study examines customer evaluations at three distinct o wnership periods: 1 to 6 months, 7 to 18 months, and 25 to 36 months. This helps in understanding the differences in satisfaction during initial ownership, in-warranty and post-warranty ownership periods. Satisfaction ratings decline as the length of vehicle ownership increases.However, Hero Honda Splendor is among the few models to maintain consistency across the three ownership periods. PRICING Pricing is a important component of marketing mix of the firm. Determining the prices of different products of a firm is very difficult task of the marketing manager. Price denotes money value of a product. If represent the amount of money for which a product can be exchange. In other words, prices represents the money which the buyer pays to the seller for a product price represent the exchange value of goods and services in terms of money. Price is all around.Price factor has very well been touched by the manufacturers. The pricing strategy of the company is very set. They price their pro duct according to the cost of production and also by keeping an eye on the price of the competitors of that segment and demand of the product in the market. A pricing strategy that ensured an average manufacturer margin that game dealer an adequate return and created a reputation with consumers like â€Å"a company selling a good quality product at a reasonable price. Industry focus themselves the low cost producer with good quality and aimed to maintain the price advantage in every market of two wheelers.Hero Honda group ensures an easily affordable pricing through excellent transportation to common man. It fixes customer centric pricing that provide customer total satisfaction. Hero Honda’s pricing objectives are: List price, Discount, Financing schemes, Credit terms, and Maximize profits Hero Honda group ensures an easily affordable pricing through excellent transportation to common man. It fixes customer centric pricing that provides the customer with total satisfaction. PLACE CHANNELS OF DISTRIBUTION: As a company, dealers play a major role in serving customers, while growing and sustaining markets.Hero Honda has a network of more than 3500 strong and dedicated Authorized dealers. A network that has helped Hero Honda’s name and its promise of reliable quality to every part of the country. The power of this highly efficient and motivated network goes a long way to create goodwill for Hero Honda brand among countless consumers besides creating availability and after sales services. The channel of distribution is a direct dealer network. A direct dealer is a dealer who is authorized to purchase the product directly from the company and sell. PHYSICAL DISTRIBUTION: Hero Honda has more than 3500 showrooms in India.Some of the Authorized dealers of Hero Honda Karizma, in and around Bombay, are: †¢ Max Motors (Bombay) †¢ F. P. Motors (Bombay) †¢ Axis Motors (Thane) †¢ Ranjeet Motors (Thane) †¢ Ahir Motors (Kalyan) †¢ Spectra Motors (New Bombay) †¢ H. M. Motors (Panvel) PROMOTION Promotional tools 1. ADVERTISING: It is defined as a paid non-personal communication with a target (usually mass) market. It is cost effective and can reach a large number of people. It can also be used for long term or short term objectives. There are various forms or mediums through which can advertise. A. Broadcast Media: * Television * Radio * Cinema B. Print media: Newspapers * Magazines * Leaflets C. Outdoor media: * Posters and billboards. 2. PUBLIC RELATIONS AN PUBLICITY: Public relations are an umbrella term and refer to the totality of the organization’s behavior with respect to the society in which it operates. The maybe regarded as good or bad and is reflected in the company’s reputation and image. 3. SPONSORSHIP: Sponsorship can be seen as a part of public relations and it is certainly the case that some sponsorship goes on to generate positive publicity for the organization. The company h as not left any stone untamed in sponsoring the major events both globally and domestically.The biggest of all is the sponsorship of the â€Å"WORLD CUP† for which Hero Honda has the credit of being the only two-wheeler company in the world to do so. Recently they are sponsoring the Hockey World cup. Besides this, the company has also sponsored events like â€Å"Master Golf†, television academy awards, etc, Thus the company has gained a lot of reputation by doing so. 4. DISCOUNTS/OFFERS: The company has started giving discounts and other offers to the customers on the purchase of a new bike, for instance, with the World Cup offer, in which the consumer was to get a 1 gm gold coin with every purchase.But after all these schemes and benefits may be because of cut-throat competition in the segment with heavyweight competition such as Bajaj, kinetic, Yamaha, and TVS the company (HERO HONDA) officially says: â€Å"Our aim is to proactively and consistently deliver value to the customer. We are giving back to the customer after becoming successful. Most companies give discounts only when their products are not doing well in the market. There is lost of competition in the segment, especially from Bajaj.But the reason for Hero Honda’s success it that we are consumer-focused while other companies such as Bajaj tends to be more competitor-focused. 5. Test ride and Road show PROMOTION POLICY: * Company gives advertisement in different media vehicles time to time. Like in TV. Magazines, newspaper, etc. * Hero Honda also organizes free service camps every year. * Hero Honda also takes art in trade fair. * Hero Honda with the help of ICICI Bank provides loan to the customers & also provide easy monthly installment scheme to customers. * Hero Honda gives huge commission to their dealers.Advertisement, local events sponsorship and promotions and inviting a prominent personality for the inaugural or first like delivery function would contribute effectivel y in generating a wider local interest and attention. Hero Honda’s latest DKD –2 commercial its two brand starring its Ambassador and India’s heart throbs, Hritik Roshan and Sourav Ganguly, truly reflects the multi fact roles that today’s new generation plays. The commercial reflecting the charisma and vibrancy of these two stars, takes Desh Ki Dhadkan to dazzling new heights. It is young, colorful and vibrant and represents the icons of contemporary times.And it will go a long way in strengthening the leadership status of the product by the mile. The new commercial is powerful film repeat with an impressive storyline. The effort to pack the story, drama and impact in just 60 seconds was phenomenal challenge itself. The idea was born itself. The idea was born out of the very essence of â€Å"Hero and Stars†. Keeping in mind would cause on the drama and impact it would cause on the audience. It is a commercial packed with action where today’s heart throbs, Hritik and saurav, are seen tackling new roles.The story being in a field adjoining a hill with two cool men, Hritik and Sourav on Hero Honda bikes and Passion respectively. Both Sameer and Aditya win lifetime opportunity act with Hritik and Sourav, the two star heartthrobs of millions in India and all four will be seen in action in the new commercial DKD-2. These are some of the Slogan for every product (Bike) and these are following:- CD-100:Fill it, shut it, Forget it. CD100SS:Tough and Rugged. Splendor :Designed to Excel. Street Smart:License to enjoy. Passion:When style matters, Bike born in studio not in factory.CBZ:Motorcycling Unplugged. MARKET SEGMENTATION OF HERO HONDA * Demographic Segmentation * Income: HERO HONDA products are offered to the public taking into consideration all the income groups in the society. * Age: The main segmented group for the motorcycle are 18 years and above. * Occupation: All kinds of people are taken into account. Students, prof essionals, Govt. Servants, etc. * Geographic Segmentation: The potential customers are basically from every regions of India. * Psychographic segmentation:People purchasing bikes are very economical, quality, brand conscious and loyality. Behavioral segmentation:This segmentation is done considering user status, benefit wise. TARGETING AND POSITIONING OF HERO HONDA TARGETING The proposed targeting people in the age group of 18 years and above with a average monthly income of approximately Rs. 10,000 and above, who are brand loyal and who are either students or retired individuals or may be employed as professionals, government servants or having their own business, but mostly male i. e on the different stratas of the population. POSITIONING The image that Hero Honda creates in the mind of the customers is the faith. The add shown by it says â€Å"Desh ki Dhadkan†.That means it’s a member of the Indian family. It represents the Indian culture and society. The objectives can be achieved through the implementation of suitable marketing strategy by the organisation. It is the marketing logic that is formulated keeping in mind the needs of the consumers and also strategies of the competitors. Porters five force model for Hero Honda:- Bargaining Power of suppliers: Suppliers of auto components are fragmented and are extremely critical for this industry since most of the component work is outsourced. Proper supply chain management is a costly yet critical need. Bargaining Power of Buyer:Buyers in automobile market have more choice to choose from and the increasing competition is driving the bargaining power of customers uphill. With more models to choose from in almost all categories, the market forces have empowered the buyers to a large extent. Competitive rivalry: The industry rivalry is extremely high with any product being matched in a few months by competitor. This instinct of the industry is primarily driven by the technical capabilities acquired over years of gestation under the technical collaboration with international players. Threat of substitute Products: There is no perfect substitute to this industry.Also, if there is any substitute to a two-wheeler, Bajaj has presence in it. Cars, which again are a mode of transport, do never directly compete or come in consideration while selecting a two-wheeler, cycles do never even compete with the low entry level moped for even this choice comes at a comparatively higher economic potential. Threat of new entrantsHere the threat of new depends on the economies of scale of the cost of production, and customer switching costs, access to industry distribution channels. | | S. W. O. T. ANALYSIS OF HERO HONDA (KARIZMA):- STRENGTH: †¢ It has a good speed and sporty look Karizma is the First bike in India launched under Sports Bike Segment. †¢ Loyal Customer Base: In the past four years, Karizma has been successful in building up a good and loyal base among its customers. â⠂¬ ¢ After Sales Service: Till today, customers are satisfied with the after sales service provided by Hero Honda for this particular product. †¢ Refinement, comfort, great handling and that much-sought-after big bike feel are all available on the Karizma. †¢ Brand Recall: the name Karizma itself is a metaphor to its success. The brand Karizma has given a good platform to this product in the Sports Bike Segment. WEAKNESS: High Maintenance: The maintenance of Karizma is high as compared to its biggest competitor Bajaj Pulsar 200cc and 220cc. †¢ Fuel Efficiency: The pulsar 200cc offers an impressive mileage of 38. 3kpl in city and 42. 4kpl in highway against the Karizma offers only 30kpl in city and a decent figure of 45kpl in highway. †¢ Less Promotion: the promotions and ads of Karizma are very less as compared to its competitors. OPPORTUNITIES: †¢ If Hero Honda comes up with the idea of changing some features of Karizma, like self cancelling indicators, sof t touch handle bar and digital speedometer, it will help them to boost up the sales of Karizma. If they are able to improvise the fuel efficiency of Karizma, it will be a golden opportunity to take over the market. THREATS: †¢ The major threat faced by Hero Honda Karizma is from Bajaj Pulsar, who has always been the market leader in the 150 plus segment with 60% market share. †¢ Karizma’s strong competitors Bajaj and TVS, in 150 cc plus segment, already posses certain features like self-controlling indicators, soft touch handle bar which Karizma lacks. †¢ The competitor Pulsar 200cc has already come up with oil cooled engine which delivers maximum power.This is again a major threat to Karizma. S. W. O. T. ANALYSIS OF BAJAJ (PULSAR 220cc) STRENGTHS: †¢ Pulsar 220cc features India’s First Oil Cooled Engine which delivers maximum power making it most powerful engine offered by Bajaj. †¢ New Pulsar also provides Digital Speedometer, Self Canceling Indicators which is for the First time in this segment in India. †¢ Fuel efficiency: Pulsar 220cc delivers an impressive mileage of 38. 2 kmpl in city as compared to Karizma which delivers 30 kmpl in city. †¢ Customer Base: In past decade Bajaj has established a strong base amongst its customers.WEAKNESS: †¢ Style and Design: PULSAR 200cc and 220cc derives their styling from there previous version Pulsar 150 Dts-i and 180 Dts-i. †¢ Pricing; Bajaj 220cc (Rs 82449 basic price) is costlier than karizma(Rs 78000 basic price) OPPORTUNITIES: †¢ If they derive new styling, shape, design for pulsar 200cc and 220cc then they can attract more customers. †¢ Taking into consideration the reviews of the customers regarding the â€Å"fairing† of 220cc and making the needful changes will be an opportunity to capture an even larger share of the 200cc+ segment THREATS: The biggest threat is faced from the goodwill of Karizma in this segment who is the â€Å"Four -Stroke Two Wheeler Ruler† of the Indian bike market. †¢ Certain technical faults in the bike design which are potentially dangerous to the rider’s safety can be disastrous to the image of the bike. COMPARISION OF ADVERTISING STRATEY OF HERO HONDA AND BAJAJ ADVERTISING STRATEGY OF HERO HONDA:- Currently the number one company in terms of sales and has been dominant in the two-wheeler segment since the past decade. Since the inception of hero Honda, the company has been using television as a major role for its publicity.Though hero Honda was dominant in sales it lacked the skills of creating a spectacular ad till now. Though it had a vast range of mobiles, its advertising strategy was not up to the mark. For its publicity hero Honda has been using many famous celebrities like Saurav Ganguly, the captain of Indian cricket team, Hritik Roshan and other famous personalities as their brand ambassadors. Thus, hero Honda has been spending huge amounts on its publicity. Th e biggest of all is the sponsorship of the â€Å"WORLD CUP† for which Hero Honda has the credit of being the only two-wheeler company in the world to do so.Presently they have tried to gain publicity by sponsoring the hockey world cup event which is the national game of India. There by creating a sense oneness and Nationalism through providing publicity and encouragement to the game by various ad’s. | By sponsoring the hockey wprld cup event ,which is a national game of india| | | ADVERTISING STRATEGY OF BAJAJ:- Bajaj is always known for its outstanding ads over the period of time. Since its inception, Bajaj has come out with variety of ads and were always successful in their advertisements. Scooters were well known by the brand name of Bajaj.Be it any scooter, one used to recognize it by the brand name Bajaj. This was the identity a decade ago which the Bajaj has still maintained. Bajaj is always known for its ads without well-known brand ambassadors which is again a plus point to its cart as it saves a huge cost in terms of brand ambassadors unlike Hero Honda and TVS. Prior, Bajaj used to convey the feeling of ‘Indianness’ in its ads. With a punch line ‘Hamara Bajaj’ Bajaj drove into everybody’s hearts and the title song of ‘Naye Bharat Ki Naye Tasveer’ added a great value to its mobikes and scooters.A couple of years back, Bajaj had introduced an advertisement which promoted all the different ranges it had, wherein they had shown each product they had with a feeling of Indianness. Example: Eliminator passes-by a rangoli and drives slowly sideways without disturbing it. People on boxer pass-by a temple and bend their head to give a little offering. Such ads had revealing Indian culture had a great effect on Indians and Bajaj was successful in most of its ads. But recently, Bajaj had changed its brand logo along with its punch line i. e. ‘Hamara Bajaj’ got converted to ‘Inspiring C onfidence’.The reason for this change as told by the company officials was to keep pace with the new technologies in the fast moving world. Even though it had changed its punch line, it didn’t have much effect on its brand image. A year back, Bajaj introduced DTSi technology upgrading its always successful PULSAR 150cc and 180cc. Though Bajaj had changed its identity it still dominates for its creativity in ads. Future Challenges and Plans:- * Sustaining the growth rate. * Need for innovation – low cost/ hybrid vehicles. * Upgrading Indian two-wheeler products. * Taking the products to the global market. * Capturing Indian as well as global market.Suggestions:- * Encourage exports. * Provide various two-wheeler financing schemes among manufacturers. * Open R&D centers. * Pressurize government to reduce taxes and duties. * Collaborate with global players. Conclusion :- The outlook for India’s automotive sector is highly promising. In view of current growth trends and prospect of continuous economic growth of over 6 per cent, all segments of the auto industry are likely to see continued growth. Large infrastructure development projects underway in India combined with favourable government policies will also drive automotive growth in the next few years.