Abstract

The caselet provides detailed description of the entry strategy followed by Daewoo in Indian automobile market. It examines the factors behind the failure of Cielo, the company’s flagship model, since its launch in the late 1990’s. It also analyzes the corrective steps that the company has taken to revive Daewoo’s sales and image.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Pricing decisions and price cuts
• Positioning of a product
• Managing product portfolio
• and Importance of product quality.

Keywords

Daewoo Motors India Ltd. (Daewoo), Maruti Esteem, Cielo, Indigenisation, DCM-Toyota, Quality Defects, Fuel Efficiency, Market Survey, Sales Staff, Indian Middle Class, Corporate Segments, Promotional Scheme, Brand Equity, Status-Conscious Buyers, Monopolies & Restrictive Trade Practices, Positioning, Value-for-Money, Mid-size Car, 'Valyou' Campaign, Price Reduction