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Abstract
Meri Car is the leader, having developed the concept of Meri Car in the city of Jaipur. Currently, they are enjoying majority market share in the Meri Car business in Jaipur. Since the time of inception, there has been a steady growth in sales which has been a lot due to the shift in the consumer preference for the Meri Cars as compared to the unorganized players which include privately owned cabs as well as the three wheelers. Yet, the steady increase in gross profits has been much lesser than the growth in sales. In other words, margins are shrinking due to increase in input cost. The two new entrants in the market have come earlier than expected; backed by ample resources giving rise to stiff competition. There is an urgency to review their strategy to ensure long term profitability andsustainability.
1 . Introduction
Unorganized economy contributes significantly to the overall Indian economy. With advancements in technology, presence of multinationals, changing psychographic profiles and many such drivers of the economy, the share of the organized sector in various industry segments is slowly but steadily increasing. Learning from developed economies are being translated to feasible business models in the Indian circumstances. One such idea was brought back home by Manish Kumawat from his experiences at Dubai. Some of the world's best Meri Car services are in Singapore, Dubai and Malaysia. He thought of starting the Meri Car service in his home city of Jaipur which is the capital of the state of Rajasthan. This was the beginning of the conceptualization of "Meri Car" with Manish Media Agency agreeing to promote the plan and Neelkanth Cabs Pvt. Ltd. took birth.
The brand name 'Meri Car' was decided as it communicated a personalized feeling amongst all target segments. Today, Meri Car is one of the main Meri Car cabs in Jaipur with more than 50% shareof the Meri Car market. They initiated their operations on 22nd of August 2009 with the launch at Amar Jawan Jyoti, Jaipur. First car was flagged off by Ms Kiran Bedi - first lady IPS officer; a well known personality and Mr. ? ? Tiwari - retired Director General of Police, Rajasthan. There were print advertisements in the selected newspapers,...