THE FALL OF INDIAN ICONIC CAR; 'THE AMBASSADOR': A CASE OF MARKETING MYOPIA

摘要

Few years ago, Eastman Kodak, with over hundred years of history behind them which brought photography to the masses closed down. Something similar happened with once India car giant three years before. On 25th May, 2014, Hindustan Motors announced that they will be suspending the production of Ambassador Cars (the first indigenous car of India) in India. Despite the fact that it had over 70% market shares at one point of time, sold only 2200 cars in its last financial year against industry sales of more than 1.8 millions. What made the country's most iconic car of its time to close down the business? The answer lies in company's inability to understand the market and changing business environment. It's a classic case of marketing myopia where company failed to understand that customer are not loyal to your product rather they are loyal to their need satisfied by your product; as long as your product is satisfying their need they will buy it else they will switch the moment they get a better alternative. The case of Ambassador Car is learning for all; about how ignoring the marketing customer and competition may put you in trouble.