Motorcycle market analysis presentation submitted as part of group assignment on Marketing Basics by our SMP09 group. Presentation submitted to Prof. Ramanuj Majumdar, IIMC Kolkata.

1. Product Market Analysis
Motorcycles in India

2. The Players
IIMC SMP09 – Motorcycle Team 2

3. The Motorcycle Market
• South East Asia has a huge motorcycle market
– demographics favor further growth
IIMC SMP09 – Motorcycle Team 3
• Global Market eyeing India
– Piaggio plans to increase production in India
– KTM plans to set up plant in India
• Indian brands need to increase R&D
– to compete with global brands in local market

4. The Motorcycle Market ..contd.
• 2W sales growth drop in 2012, matter of concern
IIMC SMP09 – Motorcycle Team 4
• Rise in raw material costs
• Global demand for
electric 2W is
projected

5. Market trends
Before competition act:
• 1955-69: Collaboration
• 1970-80: Manufacturing Increased
– Growth in demand
– fuel price increase
– FERA caused technological stagnation
• 1981-90: Foreign collaboration
– up to 100cc motor cycles license capacity was increased
• 1991-99: Liberalization of economy
– more brands
– increased sales
IIMC SMP09 – Motorcycle Team 5

6. Market trends ..contd.
Post competition act(2002):
• 2000-2010:
– Rapid growth in urban areas.
– Parking space, traffic chaos made 2W preferred option
– demand of gearless scooters
• women working population increase
• 2010-2020:
– Overcapacity – Potential speed bump in urban areas
– Rural market needs to tapped to continue growth rate
– Need to tie up with local (service) centers in rural areas
• to display brand presence across every corner in the country
• have an edge over others in providing service
– Need for rollover of success trend
• from urban Tier I cities to Tier II and III cities
IIMC SMP09 – Motorcycle Team 6

7. Product Segments
IIMC SMP09 – Motorcycle Team 7
• Standard
– Rational:
• Basic cost effective model available.
• Good fuel efficiency (around 65-70 kmpl)
– Emotional:
• Doesn’t get affected by emotional aspects.
• Doesn’t mind being seen riding entry level models.
– Models :
• Bajaj Platina, Hero Honda CD Dawn/Deluxe, TVS Star City, Yamaha Crux
• Deluxe
– Rational:
• Good fuel efficiency (around 50-65 kmpl).
• Simple sober styling, in some cases matching the looks of upper segments.
– Emotional:
• Doesn’t like to be seen buying into the least price (entry) models.
• Models in this segment has more prestige value than standard models
– Models:
• Hero Splendor, Hero Passion, Hero Glamour, Bajaj Discover, TVS Star City, Honda
Shine, Yamaha YBR, Suzuki Slingshot, TVS Flame, Honda CB Twister

8. Product Segments ..contd.
• Sports
– Rational:
• Combination of decent fuel efficiency (around 40-50 kmpl) with decent pick up
• Top speed around the (150-20) kmph mark
– Emotional:
• Power and pickup takes equal importance.
• Bikes in this segment are also expected to be styled in a muscular manner
• Good engine performance
– Models:
• Bajaj Pulsar, Hero CBZ Xtreme, Honda CB Unicorn, Honda CB Unicorn Dazzler, TVS Apache RTR,
Suzuki GS150R, Hero Karizma, Yamaha Fazer, Honda CBR250R, KTM 200 Duke
• Cruiser
– Rational:
• Standing apart from the crowd
• Typical fuel efficiency (around 30-40 kmpl)
• More emphasis on power and pickup
– Emotional:
• Stand apart from the crowd
• Styling elements like Half Fairing, Full Fairing, Differentiated Styling
– Models:
• Bajaj Avenger, Royal Enfield Thunderbird, Harley Davidson FLST, Ducati Strada, Hyosung Aquila
IIMC SMP09 – Motorcycle Team 8

9. Price Segments
• 30K-60K :
– Hero Dawn, Suzuki Hayate, Hero Moto Deluxe, TVS Star Sport, TVS Star
City, Yamaha Crux, Hero Moto Corp Splendor, Bajaj Discover, Yamaha YBR,
Suzuki Slingshot, Honda CB Twister, Hero Moto Corp Passion, TVS Jive, TVS
Flame, Hero Moto Corp Glamour, Yamaha Gladiator, Hero Moto Corp
Achiever, Honda CBFStunner
• 60K-1L:
– Bajaj Pulsar, Hero Moto Corp Hunk, Honda CB Unicorn Dazzler, Yamaha
FZ,TVS Apache RTR, Yamaha Fazer, Bajaj Avenger,Hero Moto Corp Karizma,
Royal Enfield Bullet 350
• 1L-5L :
– Royal Enfield Bullet Electra, Yamaha YZF, Royal Enfield Classic, Honda
CBR150R,KTM Duke, Honda CBR250R, Hyosung GT250R, Kawasaki Ninja,
Hyosung GT650N, Hyosung GT650R, Hyosung GV650
• >5L :
– Harley Davidson XL883, Hyosung ST7, Harley Davidson XL1200, Ducati
Monster, Suzuki Bandit, Suzuki Intruder, Yamaha FZ1, Honda CB1000R,
Harley Davidson FXD, Ducati HyperMotorad, Ducati Superbike, Suzuki
Hayabusa, BMW 1200, Ducati Diavel, Ducati Multistrada, Yamaha VMAX
IIMC SMP09 – Motorcycle Team 9

10. Customer Segments
IIMC SMP09 – Motorcycle Team 10
Deprived (< 90K) Aspirers (90K-2L) Middle Class (2-10L) Rich (> 10L)
Standard Public transportation
not available. Business
needs. Rural areas.
Needed for regular
commuting. Can
commute in public
transport but feels
good in own vehicle.
Maybe for alternate
transport option
NA
Deluxe NA Proud to own a deluxe
motorcycle.
Alternate transport option NA
Sports NA Very passionate about
riding sports
motorcycles
Medium range sports
category for young siblings
High end sports
category for young
siblings
Cruiser NA NA Very passionate about
riding two wheelers
Passionate about
riding two wheelers

11. Consumer Behaviour
• Standard
– Typical consumer class:
• Rural middle class
• Urban Lower and Lower-Middle class
– Behavioral characteristics:
• Fuel efficiency
• Low maintenance
• Low cost
– Used for
• Business commute - newspaper, milk, daily use vendor distributor
• Lack of public transportation, especially in rural areas
• Convenience for small family commute
• Deluxe
– Typical consumer class:
• Rural middle class
• Urban Lower-Middle and Middle class
– Behavioral characteristics:
• Motorcycle looks not too sporty but decently styled
• Doesn’t want to own an entry level bike, social status is important
• Doesn’t mind paying more, but demands value for money
• Should be a good mix of fuel efficiency, maintenance, safety, style and cost
– Used for
• Daily office commute
• Lack of public transportation, especially in rural areas
• Convenience for small family commute
IIMC SMP09 – Motorcycle Team 11

12. Consumer Behaviour ..contd.
• Sports
– Typical consumer class:
• Urban Middle class
• Young professionals
• College students
– Behavioral characteristics:
• Fast and furious
• Young and impatient
• Weakness to imitate powerful stars
• Style statement takes precedence over mileage or cost
– Used for
• Commuting to college, office
• Casual and official racing
• Cruiser
– Typical consumer class:
• Rich on the road movers
– Behavioral characteristics:
• Passionate about motorcycles
• Typically like to be independent and travel alone or in small groups
• Loves to be close to nature
– Used for
• Casual long distance tours
• Adventure travel
IIMC SMP09 – Motorcycle Team 12

13. Positioning
• Hero MotoCorp
– New Brand identity, post split with Honda
– Connect with people on all product segments
• Bajaj
– Product segments targeted : Deluxe, Sports
– Brave strategy : targeting premium performance segment
• TVS
– Product segments targeted : Standard, Deluxe
– Launch new products in the standard and deluxe segment
• Honda
– Product segments targeted : Standard, Sports
– Targeting Indian common man in standard
– Targeting Indian racing enthusiasts in sports
• Mahindra
– Product segments targeted : Deluxe
– Create new market segment within 110 cc
• Harley Davidson
– Product segments targeted : Cruiser
– Planning affordable machines for Indian market
IIMC SMP09 – Motorcycle Team 13

14. Positioning –Comparison
IIMC SMP09 – Motorcycle Team 14
Standard Segment
Brand Name Bajaj Platina Yamaha Crux
Tagline/ Slogan Dumdaar sawari Aapke irade sa mazboot; Yes Yamaha
USP Durable stylish and good performance Bike which has good mileage
Segment Middle-class people who want a bike that is stylish and
gives a good mileage
Middle-class people who want a bike that is stylish and
gives a good mileage
Target Group Middle class youth from the age bracket of 25-36 Middle class youth from the age bracket of 25-35
Positioning For bikes who want to experience a powerful ride A strong bike which encourages a strong life
Strength  Strong brand name and huge market
 Excellent distribution through franchisees
 Most reliable as it requires low maintenance
 Good mileage
 Huge market
 Excellent distribution through franchisees
 Good mileage
Weakness  Simplistic Design
 Focuses on just mileage
 Limited market share as compared to other
leading brands
Opportunity  Expansion in rural and tier-2 cities
 Innovations in technology
 Expansion in rural and tier-2 cities
 Innovations in technology
 More brand visibility
Threats  New entrants
 Competitors
 Low cost bikes
 New entrants
 Competitors
 Low cost bikes
Competitors Victor
Apache
Passion
Yamaha Crux
Victor
Apache
Discover
Bajaj Platina

15. Positioning – Comparison ..contd.
IIMC SMP09 – Motorcycle Team 15
Deluxe Segment
Brand Name Hero Honda(Hero MotoCorp) Splendor Bajaj Pulsar
Tagline/ Slogan Yaari ki Gaadi; Desh ki dhadkan Definitely Male, The Fastest Indian
USP A bike with low maintenance and good mileage Powerful engine and good pickup
Segment Middle-class people who want a bike that is stylish and gives
a good mileage
Young boys looking for fast sporty bikes for Indian
roads
Target Group Middle class youth from the age bracket of 25-35 Young boys in the age 18-30 middle class
Positioning A motorcycle for making friends in life The No.1 Sports bike in India
Strength  Strong brand name and huge market
 Excellent distribution through franchisees
 Most reliable as it requires low maintenance
 Good mileage
 Excellent brand name
 High product quality
 High performance, speed and pickup
Weakness Focuses on just mileage and no power  Mileage on a lower side due to focus on
Power
 High cost in various variants
Opportunity  Expansion in rural and tier-2 cities
 Innovations in technology
 Expansion in rural and tier-2 cities
 Cost management thus reducing the price of
the bike
 Developmental changes thus reducing bike's
weight
Threats New entrants
Competitors
Low cost bikes
New entrants
Competitors
Low cost bikes
Competitors Passion
Discover
Pulsar
Passion
Discover
Splendor

16. Positioning – Comparison ..contd.
IIMC SMP09 – Motorcycle Team 16
Sports Segment
Brand Name Hero Honda CBZ Yamaha FZ
Tagline/ Slogan Live off the edge; Desh ki dhadkan Lord of the street
USP Fast and Sport looking bike Powerful engine and good pickup
Segment Young boys looking for fast sporty bikes for Indian roads Young boys looking for fast sporty bikes for Indian
roads
Target Group Young boys in the age 18-30 middle class Young boys in the age 18-30 middle class
Positioning For bikers who want to live life in the extreme For sports bike lovers who like to rule the streets
Strength  Excellent brand name
 High product quality
 Excellent brand name
 High product quality
 High performance, speed and pickup
Weakness  Lower on mileage
 High cost
 Very low mileage
 High cost and thus limited target segment
Opportunity  Expansion in rural and tier-2 cities
 Cost management thus reducing the price of the bike
 Developmental changes thus reducing bike's weight
 Expansion in rural and tier-2 cities
 Cost management thus reducing the price of
the bike
 Developmental changes thus reducing bike's
weight
Threats  New entrants
 Competitors
 Low cost bikes
 New entrants
 Competitors
 Low cost bikes
Competitors Karizma
Yamaha FZ
CBZ
Karizma

17. Positioning – Comparison ..contd.
IIMC SMP09 – Motorcycle Team 17
Cruiser Segment
Brand Name Royal Enfield Classic Bajaj Avenger
Tagline/ Slogan Handcrafted in Chennai Feel like God
USP Indian cruiser bike Indian cruiser bike
Segment Boys who want to go for bike cruises Boys who want to go for bike cruises
Target Group Middle class boy of the age group 18-31 Middle class boy of the age group 18-30
Positioning Handmade classic powerful bike for Indian roads For people who want to take control on the road
Strength  Oldest motorcycle brand in the world
 Excellent branding and positioning
 High performance and comfort
 Used on a large scale for military purposes because of
its sturdiness
 Strong brand name
 Excellent distribution
 Good performance
 Comfortable, safe, stylish
Weakness  Weight of the motor cycle can be an issue for few
customers.
 Mileage of high cc bikes is an issue
 Comparatively smaller market for cruiser
bikes
 High price
Opportunity  Tap the urban market
 More brand visibility
 Expansion in rural and tier-2 cities
 Cost management thus reducing the price of
the bike
 Developmental changes thus reducing bike's
weight
Threats Threat from other competitors  New entrants
 Competitors
 Low cost bikes
Competitors Avenger
Harley Davidson
Royal Enfield
Harley Davidson

18. Positioning – Comparison ..contd.
IIMC SMP09 – Motorcycle Team 18
• Competitor strength grid of major players
Description Hero Bajaj Honda Yamaha Suzuki
Brand Recognition
Price
Distribution Channel STRONG
Availability of service centres ABOVE AVERAGE
Sporty Look AVERAGE
Warranty LESS THAN AVERAGE
Re-sale Value WEAK
India market Sales

19. Advertising and Promotion
• Royal Enfield
– power and royalty
– unique thump sound
– Flagship product :Bullet
– promotes cult culture through social
networking over net
– organizes leisure and adventure trips
IIMC SMP09 – Motorcycle Team 19

20. Advertising and Promotion ..contd.
• Bajaj
– Switch from Scooter to Motorcycle
– Definitely Male campaign - Pulsar
– Feel like God : Cruiser segment
– Mileage campaign
– Easy financing options
– “Humara Bajaj” -> “Inspiring Confidence”
-> ”Distinctly Ahead”
IIMC SMP09 – Motorcycle Team 20

21. Advertising and Promotion ..contd.
• Hero
– Flagship product : Splendor
– New modern logo
– Communicate R&D focus
– Stylish in upcoming products
– “Desh ki dhadkan” to “Hum mein hai
Hero”
IIMC SMP09 – Motorcycle Team 21

22. Advertising and Promotion ..contd.
• Mahindra
– Entering motorcycle market
– Communicating focus on
R&D
– Create sub-segments
• targeting specific customer
experiences
IIMC SMP09 – Motorcycle Team 22

23. Advertising and Promotion ..contd.
• Honda
– marketing itself as an Indian
company
– “Sach kar denge sapne”
Indian translation of “The
power of dreams”
– targeting mass section
– strengthening network and
dealership outlets
– Sports segment
• racing enthusiasts
• “Taste First Blood” campaign
• CBR club
IIMC SMP09 – Motorcycle Team 23

24. Advertising and Promotion ..contd.
• Harley Davidson
– Currently targeting customers wanting Intl. products
– Promoting typical US cruiser attitude
• Don’t care attitude (Screw it, lets ride)
– Planning custom products by 2014 for Indian market
IIMC SMP09 – Motorcycle Team 24

25. Marketing Strategies
• Bajaj:
– Brave steps taken to move from Scooter to Motorcycle
market
– Switch customers from standard to deluxe segments
– credibility through integrity
– providing better value for consumer’s money
– dependable product and service
• TVS Motors:
– stronghold in low standard segment
– product specific to geographic division
– dirt bike rally, MRF super cross championship rally
– Brand ambassador like Virat Kohli and MS Dhoni
IIMC SMP09 – Motorcycle Team 25

26. IIMC SMP09 – Motorcycle Team 26
Thank You