AID18768: 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.
b. Suggest promotional tools which the company can use to help it develop a completely new image for its product.