2. History
In 1955, the Indian government needed
sturdy and reliable motorcycles for its
Army and police to patrol the rugged
border highways. The first batch of 350cc
Bullet from the Royal Enfield Company of
UK were received and assembled at
Chennai.
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3. Overview
India, is the second largest producer of two-
wheelers in the world. In the last few years, the
Indian two-wheeler industry has seen spectacular
growth. The country stands next to China and
Japan in terms of production and sales
respectively.
Majority of Indians, especially the youngsters
prefer motorbikes rather than cars. Capturing a
large share in the two-wheeler industry, bikes
and scooters cover a major segment. Bikes are
considered to be the favorite among the youth
generation, as they help in easy commutation.
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4. Market Size
The two-wheeler market in India is the biggest contributor to
the automobile industry with a size of Rs.100,000 million. The
two-wheeler market in India comprises of 4types of vehicles,
namely motorcycles, scooters, scooterettes and mopeds.
Two-wheeler vehicle segment is expected to show slow growth
of 10 percent CAGR over the period of 2012-2016, as per the
report.
The motorcycle market share is about 81.5% of the total two
wheeler market in India. Three-fourths of the total exports in
the two wheeler automobile industry are made in the
motorcycle segment. Exports are made mainly to South East
Asian and SAARC nations.
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5. SCOOTERETTES
MOPEDS
2
WHEELERS
SCOOTERS MOTORCYCLE
S
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6. Shifting Demand From Scooters To Motorcycles!!!
By 1990s ,the change in customers' preference towards
fuel-efficient and aesthetically appealing models, which
scooter manufacturers failed to provide.
However, over the last five years, it has made a recovery
and is emerging as a niche segment targeted towards women
commuters.
This segment is now dominated by Japanese manufacturers
with HMSI having the leadership.
HH, which is a late entrant in this segment, has also
cornered a sizeable market share in the scooter segment.
High replacement cost for the batteries, this has remained
in a marginal segment.
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8. Features that deserve attention in respect of
the Indian two wheeler segment are as
mentioned:
The Indian two-wheeler (2W) industry recorded sales volumes of
3.4 million units in 2011-12, and a growth of 11.0%.
According to report a volume CAGR of 10-12% over the medium
term to reach a size of 21-23 million units (domestic + exports) by
2015-16.
Totalinvestment for new capacity generation in two-wheeler
segment is likely to be more than $2.2 billion (INR10, 000 crore).
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9. Number of players
Bajaj Auto
Hero
TVS Motors
Yamaha Motors
Suzuki Motors
Honda Motors
Royal Enfield
Mahindra Two Wheelers
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14. But why are all “desi” motorcycles segmented as
commuters here?
Motorcycles in developed markets are therefore segmented for the
purpose that they are designed for eg: Super Sports for track/road
racing, Cruiser for riding in a relaxed manner on open highways.
The main purpose for buying/riding a motorcycle in India is to
commute.
Bikes like the Karizma ZMR, Pulsar 220 and R15 may have an
element of fun but at the end of the day they are just basicallly
glorified commuters.
I mean how many neighbors/friends/relatives do you know
in India who prefer to commute in a 4 wheeler/car and rides a
motorcycle occasionally just for fun?
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15. Entry Level Commuter
Entry Level Commuter
Segment defining models: Bajaj Platina, Hero Honda CD Dawn/Deluxe
Rational expectations: Basic model available with the least amount of money. Good
fuel efficiency (around 65-70 kmpl)
Emotional expectations : The consumers of this segment don’t get affected by
emotional aspects. In a way they don’t mind being seen riding entry level models.
Models in this segment: Bajaj Platina, Bajaj Boxer BM150, Hero Honda CD
Dawn/Deluxe, TVS Sport, Yamaha Crux
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16. Deluxe Commuter
Segment defining models: Hero Honda Splendor, Bajaj Discover 100/125/150, Honda
Shine
Rational expectations: Good fuel efficiency (around 60-65 kmpl). Simple sober styling
which “both father and son can ride”
Emotional expectations : The consumers of this segment don’t like to be seen buying
into the least price (entry) models. These “deluxe” models has more snob/prestige value
than entry level models
Models in this segment: Hero Honda Splendor, Hero Honda Super Splendor, Bajaj
Discover 100/125/150, TVS Star City, Honda Shine, Yamaha YBR 110, Suzuki Slingshot
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17. Stylish Commuter
Segment defining models: Hero Honda Passion Pro, Bajaj Pulsar 135, Honda CB
Twister, Honda CBF Stunner
Rational expectations: Good fuel efficiency (around 50-60 kmpl). Basically commuter
ambitions but with stylish aspirations
Emotional expectations : The consumers of this segment want to be seen riding stylish
models compared to plain/sober deluxe commuter models. Therefore these models
mimic the styling of bikes above its segment
Models in this segment: Hero Honda Passion, Hero Honda Glamour, Bajaj Pulsar 135,
TVS Flame, Honda CB Twister, Honda CBF Stunner, Yamaha YBR 125/SS125
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18. Sporty Commuter
Segment defining models: Bajaj Pulsar Pulsar 150/180, Hero Honda CBZ Xtreme,
TVS Apache RTR 160/180, Yamaha FZ-16/S
Rational expectations: Combination of decent fuel efficiency (around 40-50 kmpl)
with decent pick up and a top speed around the (100-110) kmph mark
Emotional expectations : For the first time power and pickup takes equal importance
along with fuel efficiency. Bikes in this segment are also expected to be styled in a
muscular manner to go along with the engine performance
Models in this segment: Bajaj Pulsar Pulsar 150/180, Hero Honda CBZ Xtreme,
Hero Honda Hunk, Honda CB Unicorn, Honda CB Unicorn Dazzler, TVS Apache RTR
160/180, Yamaha FZ-16/S, Hero Impulse, Suzuki GS150R 18
19. Premium Commuter
Segment defining models: Bajaj Pulsar 220, Hero Honda Karizma, Yamaha YZF R15
Rational expectations: Acceptable fuel efficiency (around 30-40 kmpl) with more
emphasis on power and pickup and standing slightly apart from the crowd
Emotional expectations : Apart from good power and pickup consumers of this
segment expect to stand apart from the crowd, hence styling elements like Half Fairing,
Full Fairing, Differentiated Styling (Cruiser/Classic)
Models in this segment: Bajaj Pulsar 220, Hero Honda Karizma, Yamaha YZF R15,
Yamaha Fazer, Bajaj Avenger 220, Royal Enfield Classic 350/500/350 Standard/350
Electra, Royal Enfield Thunderbird, Honda CBR250R, KTM 200 Duke 19
20. Hero Motors Ltd is one of the leading companies in the two-
wheeler industry.
At present, it is the market leader in the motorcycle segment with
around 41% of the market share.
The company has emerged as one of the most successful players,
much ahead of its competitors an account of its superior and
reliable product quality complemented with excellent marketing
techniques.
The company has been consistently addressing the growing
demand for motorcycles and has a cumulative customer base of
over 5 million customers, which is expected to reach 6mn mark
with the rural and semi-urban segment being the new class of
consumers.
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21. Company Profile
"Hero", the brand name symbolizing the steely
ambition of the Munjal brothers, came into being
in the year 1956. From a modest manufacturer of
bicycle components in the early 1940's to the
world's largest bicycle manufacturer today.
Joint Venture between Hero Group and the Honda
Motor Company of Japan, has today become the
World's single largest two wheeler Company.
Started with the initial investment of Rs.55
crores, Hero Honda Motors Limited came into
existence on January 19, 1984.
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22. Hero Honda offers the following
products
CD 100 Karizma
CD 100 SS Ambition
Splendor Ambition 135
Passion Splendor +
CBZ Passion Plus
CD Dawn CBZ Star
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23. Advertising Strategy
HHML is an organization, which is known for its
innovative & Aggressive Marketing. The
advertising budjet is of Rs.120 crores. All the
mediums are used extensively, be it print or mass
media like T.V & hoardings.
HHML also promotes sports in the country. It is
also the sponsor of the ICC world Cup 2003 and
half of the Indian team represents Hero Honda.
Also, advertising is done at a local level by dealers,
in which HHML also contributes to help dealer
promote the dealership in the local area.
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24. Some of the Events Sponsored
During the Years
1993
Hero Cup – Five Nation Cricket Tournament.
1999
Masters Golf Championship.
7th Cricket World Cup in England.
2000
NKP Salve Challenger Trophy.
Stardust Hero Honda Millennium Honors Award.
Masters Golf Championship.
20th Cinema Express Award.
2002
India-England Women's Cricket Series.
Masters Golf Championship.
Second Indian Television Academy Award.
21st Cinema Express Award.
India-England Test Series.
First Indian Television Academy Award.
2003
8 Cricket World Cup in South Africa.
th
2004
ICC Champions Trophy in England.
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25. Brand Ambassadors
Indian Cricket team Players: Virender
Sehwag, Mohammad Kaif, Yuvraj Singh,
Harbhajan Singh, Zaheer Khan and
Sourav Ganguly.
Superstar Hrithik Roshan is also a Brand
Ambassador who helps to promote
company’s "We Care" campaign
comprising safety riding, environment
and friendliness
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26. Some of the famous ads…
‘Fill it - Shut it - Forget it’ (Splendor).
‘We Care’ campaign.
‘Hero Honda Dhak Dhak Go’ (Music Video)
‘Jet Set Go’ (Karizma)
A fighter plane is on a regular sortie when the pilot
notices a moving object. Zooming his camera, he captures a
bike cruising at high speed. Informing the control tower, the
pilot dives in for a closer look.
The bike gathers speed and enters a tunnel to beat the
fighter aircraft. Reaching the air-base, the rider meshes with
the staff as they examine the images... ... of the motorcycle,
unaware that its owner is amidst them.
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27. Established in 1945, it was incorporated as a
trading company. From 1948 till 1959, it
imported scooters and three wheelers from Italy
and sold them in India. It then obtained a
production license in 1959 and struck a technical
collaboration with Piaggio of Italy in 1960 and
continued with the same for the next two decades.
Its collaboration with Piaggio expired in 1971
and since then the Company's scooters and three
wheelers are sold under the "Bajaj" brand name.
And then entered in Motorcycle market.
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28. Bajaj Auto offers the following
products
CT 100 Avenger
Platina Discover
Caliber 115 Eliminator
Wind 125 Kawasaki Ninja
Pulsar 150 KS
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29. Advertising Strategy
Bajaj Auto is an aggressive advertiser. The
advertising Budget of Bajaj Auto is more than
Rs.100 Crore. Bajaj has a distinct style of
promoting its products, for every product
launched there’s a new and fresh advertising
strategy, developing the firm-positioning
platform.
Brand Ambassador :
Cine Star of Asia, Jackie Chan.
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30. Some of the famous ads…
The very first TV Commercial of the Bajaj
Discover DTSi (125 cc at that time) in 2004
featured the Cine Star of Asia, Jackie Chan..!!
New Bajaj Pulsar DTS-Fi 220, the sountrack
in the video plays ‘Hamara Bajaj’ in its
latest avatar..!!
Pulsar mania – bike stunts of different range.
‘The Fastest Indian’ – New Pulsar 135
Robber robs the bank and disappear within
few minutes on bike before cops arrives.
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31. Some of the famous ads contd…
Chatting merrily, three girls One's dupatta skims over the
bikes and then gets stuck...
walk by a line of motorbikes.
...making her turn in ... The logo, "Pulsar“.
consternation. She pulls it away
’Definitely Male’
slowly to reveal...
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32. TVS Motor Company Limited, part of the TVS Group, is one of
India's leading two-wheeler manufacturers. With a turnover of
over Rs.2800 crores, the Company manufactures a wide range of
motorcycles, scooters, mopeds and scooterettes. Little wonder, it
boasts of more than 9.5 million happy customers.
The year was 1980, was a year to remember for the Indian two-
wheeler industry. For it was this year that saw India's first two-
seater moped, TVS 50, rolling out on the Indian roads. For some
it was freedom to move.
With the joint venture with Suzuki Motor Corporation in 1983,
TVS-Suzuki became the first Indian company to introduce 100
cc Indo-Japanese motorcycles in September 1984. Through an
amicable agreement the two companies parted ways in
September 2001.
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33. TVS Motors offers the following
products
Star City Victor GLX
Star Sport Fiero F2/FX
Jive Apache
Centra Flame
Victor GL
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34. Advertising Strategy
Theaggressive marketing strategy along with the changed
approach to advertisement campaign boosted the demand for
the TVS models.
Agency created the campaign designs which included print
ads, banners, handbills, road show kits, truck floats etc.
‘Musical Nite’ for those who booked / purchased bikes during
the period was organized by the agency.
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35. Advertising Strategy contd…
‘Meet Sachin Tendulkar’ Campaign: Lucky draw winners
were invited to meet Sachin. Bikes autographed by Sachin
were handed over to the winners and they got a chance to
interact with the winners.
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36. Brand Ambassadors
Sachin Tendulkar
MS Dhoni
Recent Ads
Racing Bar unleashed (TVS Apache RTR)
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37. Future of Two Wheeler Industry
Opportunity, Challenges and Plan
Opportunities
Rising rural demand.
Market penetration of only 37 percent.
Collaboration with global firm.
Investment in R&D by government.
Excise duty cut.
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38. Challenges
Sustaining the growth rate.
Need for innovation – low cost/ hybrid
vehicles.
Upgrading Indian two-wheeler products.
Taking the products to the global market.
Capturing Indian as well as global
market.
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39. Plans
Encourage exports.
Provide various two-wheeler
financing schemes among
manufacturers.
Open R&D centers.
Pressurize government to reduce
taxes and duties.
Collaborate with global players.
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