MARKETING OF MARKETING OF MOTORCYCLESMOTORCYCLES

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HistoryHistoryIn 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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OverviewOverview 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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Market SizeMarket SizeThe 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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2 WHEELERS

MOTORCYCLES

MOPEDS

SCOOTERS

SCOOTERETTES

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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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Two wheeler fleet composition in India:-

Features that deserve attention in Features that deserve attention in respect of the Indian two wheeler respect of the Indian two wheeler segment are as mentioned: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.

Total investment for new capacity generation in two-wheeler segment is likely to be more than $2.2 billion (INR10, 000 crore).

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Number of playersNumber of players Bajaj Auto

HeroTVS Motors

Yamaha MotorsSuzuki MotorsHonda MotorsRoyal Enfield

Mahindra Two Wheelers

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Indian 2-Wheeler MarketIndian 2-Wheeler Market

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Top Three PlayersTop Three Players

HERO

BAJAJ AUTO

TVS MOTORS

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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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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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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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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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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

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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

Premium Commuter

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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.

Company ProfileCompany 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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Hero Honda offers the Hero Honda offers the following productsfollowing products

CD 100  KarizmaCD 100 SS AmbitionSplendor  Ambition 135Passion Splendor +CBZ Passion PlusCD Dawn CBZ Star

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Advertising StrategyAdvertising StrategyHHML 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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Some of the Events Some of the Events Sponsored During the Sponsored During the YearsYears

1993Hero Cup – Five Nation Cricket Tournament. 

1999Masters 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. 

2002India-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

8th Cricket World Cup in South Africa.2004

ICC Champions Trophy in England.

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Brand AmbassadorsBrand AmbassadorsIndian 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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Some of the famous Some of the famous ads…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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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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Bajaj Auto offers the Bajaj Auto offers the following productsfollowing products

CT 100 Avenger

Platina Discover

Caliber 115 Eliminator Wind 125 Kawasaki Ninja Pulsar 150 KS 

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Advertising StrategyAdvertising 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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Some of the famous ads…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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Chatting merrily, three

girls

walk by a line of

motorbikes.

One's dupatta skims over

the

bikes and then gets

stuck...

...making her turn in

consternation. She pulls it

away

slowly to reveal...

... The logo,

"Pulsar“.

’Definitely

Male’

Some of the famous ads contd…

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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TVS Motors offers the TVS Motors offers the following productsfollowing productsStar City Victor GLX

Star Sport Fiero F2/FX

Jive Apache

Centra Flame Victor GL

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Advertising StrategyAdvertising Strategy

The aggressive 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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Advertising Strategy contd…Advertising Strategy contd… ‘Meet Sachin Tendulkar’ Campaign: Lucky ‘Meet Sachin Tendulkar’ Campaign: Lucky draw winners were invited to meet Sachin. draw winners were invited to meet Sachin. Bikes autographed by Sachin were handed Bikes autographed by Sachin were handed over to the winners and they got a chance to over to the winners and they got a chance to interact with the winners.interact with the winners.

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Brand AmbassadorsBrand Ambassadors

Sachin TendulkarMS Dhoni

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Racing Bar unleashed (TVS Apache RTR)

Recent Ads

Future of Two Wheeler Future of Two Wheeler IndustryIndustryOpportunity, Challenges and Opportunity, Challenges and PlanPlan

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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ChallengesChallenges

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. 38

PlansPlansEncourage 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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Thank youThank you

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