In 1942, C.K.Birla incorporated Birla technical services. Hindustan Motors LTD also one of the flagship branch of Birla group. First it was started with operations at Uttapara in Westbengal in 1957 and in 1958 it was introduced "The King of Indian Roads", Ambassador. Actually it was a copy of Morris Oxford,which was built by Morris Motor Co of British. But Ambassador was a Indian version of Morris Oxford..
It was the market leader till 1980s, because of its Unique features and Closed economy. It has the features like, more spacious, diesel, low maintain cost and ideal for Indian roads. Before there were only two cars were there in the market- Ambassador and Premier Padmini.In 1970s Ambassador had 70% of market share and remaining was share of Padmini.
In 1983 it had a huge competition from Maruti Udyog's Maruti 800. It was competed in Lot of features like, It was a diesel car, new Technology, low maintain cost and looking. In 1990 Maruti became the market leader.
Actually Ambassador had lot of problem when it was a market leader like Sturdy look, rattling sound and high maintain cost, customers perception was opposite. And one more important thing is, among their sales 16% was from Govt. higher officials and managers of banks.
It lost the market because of the entry of new players into the market with unique features and new technology. It was not changed their technology till mid 1990s, but damage was done there by the time the adopted it.
Actually it is a best example for marketing myopia, because they came up with different model of II III & IV. But there was no much different in the product and there were no much value added features to the product.
One more thing is, Price of the Product which was approximately 5 lakhs. A car which is having same features and new technology cars, like 800, are less costly than Ambassador. They didn't consider customer changing behavior towards their product. They were more concentrated on the product than their customers. even though they concentrated on the product they didn't came up with innovation. This are the main reasons for failure of Ambassador.
But Still they came up with Avigo, it's not completely new model in fact it's a modified version of Ambassador.
HM management itself killed the Ambassador by not came up new technology usage and R&D department.
Ambassador soul rest in peace.
It was the market leader till 1980s, because of its Unique features and Closed economy. It has the features like, more spacious, diesel, low maintain cost and ideal for Indian roads. Before there were only two cars were there in the market- Ambassador and Premier Padmini.In 1970s Ambassador had 70% of market share and remaining was share of Padmini.
In 1983 it had a huge competition from Maruti Udyog's Maruti 800. It was competed in Lot of features like, It was a diesel car, new Technology, low maintain cost and looking. In 1990 Maruti became the market leader.
Actually Ambassador had lot of problem when it was a market leader like Sturdy look, rattling sound and high maintain cost, customers perception was opposite. And one more important thing is, among their sales 16% was from Govt. higher officials and managers of banks.
It lost the market because of the entry of new players into the market with unique features and new technology. It was not changed their technology till mid 1990s, but damage was done there by the time the adopted it.
Actually it is a best example for marketing myopia, because they came up with different model of II III & IV. But there was no much different in the product and there were no much value added features to the product.
One more thing is, Price of the Product which was approximately 5 lakhs. A car which is having same features and new technology cars, like 800, are less costly than Ambassador. They didn't consider customer changing behavior towards their product. They were more concentrated on the product than their customers. even though they concentrated on the product they didn't came up with innovation. This are the main reasons for failure of Ambassador.
But Still they came up with Avigo, it's not completely new model in fact it's a modified version of Ambassador.
HM management itself killed the Ambassador by not came up new technology usage and R&D department.
Ambassador soul rest in peace.
very good post... useful one.. way to go bharat
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