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Case Title:

Dilip Chhabria's Focus on a Niche Market - Can it Sustain?

Publication Year : 2010

Authors: B Gopal and A Syed

Industry: Automobiles

Region:India

Case Code: MKS0127IRC

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
India's acclaimed car designer, Dilip Chabbria established Dilip Chabbria Design in 1993. Initially known as the country's best supplier of car accessories, it went on to be one of the best custom-design companies in the Indian passenger car market. A niche segment, its customers were ready to spend over 50 lakh rupees. The company soon bagged orders from foreign moviemakers, celebrities and Hollywood. Meanwhile, the Indian passenger car market witnessed tremendous growth in the small car segment. But Dilip was reluctant to enter this market like other major players. Several luxury passenger car makers like Porsche, Audi and Lamborghini, were also testing the Indian market. It was expected that these players would grab a major share in the segment because of their sheer brand strength and huge budget. Dilip was also diversifying his design abilities to other categories like furniture, durables and training. It was felt that this would dilute the brand strength. Several industry experts were also apprehensive about the safety norms being followed in Dilip's unique cars. With these challenges, is it sensible for Dilip to focus on a niche market?

Pedagogical Objectives:

  • To understand the growth of the Dilip Chabbria Design.
  • To analyse the challenges for the company.
  • To explain the prudence of the company to diversify and remain focused on a niche market.
  • To analyse how the company needs to prepare for growth in the luxury passenger car market.

Keywords :  Dilip Chabbria, DCD (Dilip Chhabria Design), Luxury car, Passenger car, Niche category, Tata Nano, Anderoid, DC:S, Custom-built, Rolls Royce, Audi, Ferrari, Car accessories, Celebrities, Safety

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