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Automotive after market

  1. 1. “Automotive Aftermarket- A Sneak peek” Submitted by Arijit Saha Roll No: 1121025 (MBA-2nd yr, Sec-I) Under the guidance ofProf.Raman Sreedhara, Professor and Coordinator, Institute of Management A Report Submitted in Partial Fulfillment ofthe Requirements for the Award of the Degree of Master of Business Administration Bangalore, India 2012
  2. 2. Adelaar Motorcycle Pvt Limited 2 Automotive Aftermarket- A Sneak peek DECLARATIONI, Arijit Saha, hereby declare that the Summer Internship Project report entitled has been undertaken by me for the award of Master of Business Administration. Ihave completed this study under the guidance of Prof. Raman Sreedhara, Institute of Management, Christ University.I also declare that this project has not been submitted for the award of any Degree,Diploma, Associateship or Fellowship or any other title in this University or any otherUniversity.Place: Bangalore Arijit SahaDate: 25/06/2012 Register No: 1121025Christ University Institute Of Management
  3. 3. Adelaar Motorcycle Pvt Limited 3 Automotive Aftermarket- A Sneak peek CERTIFICATEThis is to certify that the Summer Internship project report submitted byArijit Saha on the title “Automotive Aftermarket- A Sneak peek” is arecord of research work done by him during the academic year 2011-2012 under my guidance and supervision in partial fulfillment of therequirements for the award of the degree of Master of BusinessAdministration. This dissertation has not been submitted for the award ofany Degree, Diploma, Associate ship or Fellowship or any other title inthis University or any other University. Place: Bangalore Prof. Raman Sreedhara Date: 25.06.2012Christ University Institute Of Management
  4. 4. Adelaar Motorcycle Pvt Limited 4 Automotive Aftermarket- A Sneak peekCertificate Issued by the organization to be pasted here.Christ University Institute Of Management
  5. 5. Adelaar Motorcycle Pvt Limited 5 Automotive Aftermarket- A Sneak peek ACKNOWLEDGEMENTI am indebted to many people who helped me complete this projectreport.First, I thank the Vice-Chancellor Dr. (Fr.) Thomas C. Matthew and ProVice-Chancellor Dr.(Fr.) Abraham V. M of Christ University for giving methe opportunity to do this project.I thank Fr. Thomas T. V., Director, Christ University Institute ofManagement and Prof. C. K. T. Chandrasekhara, Head-Administration fortheir kind support.I thank Prof.Raman Sreedhara for his support and guidance during thecourse of my project. I remember him with much gratitude for his patienceand motivation, but for which I could not have submitted this work.I am extremely grateful to the Badarinarayan.R.Garani, AdelaarMotorcycle Private Limited, for their invaluable contribution towardsconducting this study.I thank my parents for their blessings and constant support, without whichthis dissertation would not have seen the light of day. Arijit SahaChrist University Institute Of Management
  6. 6. Adelaar Motorcycle Pvt Limited 6 Automotive Aftermarket- A Sneak peek TABLE OF CONTENTSDECLARATION iiCERTIFICATE iiiACKNOWLEDGEMENT ivTABLE OF CONTENTS vLIST OF TABLES viLIST OF GRAPHS vii 1. INTRODUCTION 2. INDUSTRY PROFILE 2.1 2.2 2.3 3. COMPANY PROFILE 3.1 3.2 4. OBJECTIVE AND STATEMENT OF PROBLEM 4.1 STATEMENT OF THE PROBLEM 4.2 OBJECTIVES OF THE STUDY 4.3 DATA COLLECTION TOOLS ( for type 2) 4.4 SALES TARGETS SET ( for type 1) 5. LITERATURE REVIEW & CONCEPTUAL FRAMEWORK 5.1Christ University Institute Of Management
  7. 7. Adelaar Motorcycle Pvt Limited 7 Automotive Aftermarket- A Sneak peek 5.2 6. DATA ANALYSIS & INTERPRETATION ( For Type 2 project) METHODS / TOOLS USED FOR ACHIEVING SALES TARGETS / INCREASING AWARENESS etc ( For Type 1 project ) 7. FINDINGS AND SUGGESTIONS 7.1 FINDINGS 7.2 ACTUAL SALES NUMBERS ACHIEVED etc ( type 1) 7.3 SUGGESTIONS 8. CONCLUSION 9. BIBLIOGRAPHY 10.ANNEXURE QUESTIONNAIREChrist University Institute Of Management
  8. 8. Adelaar Motorcycle Pvt Limited 8 Automotive Aftermarket- A Sneak peek LIST OF TABLES Ref. No: List of Tables Page No: 6.1 40 6.2 41 6.3 43 6.4 44 6.5 45 6.6 46 6.7 47 6.8 48 6.9 49 6.1 50 6.11 51 6.12 52Christ University Institute Of Management
  9. 9. Adelaar Motorcycle Pvt Limited 9 Automotive Aftermarket- A Sneak peek LIST OF GRAPHS Ref. No: List of Graphs Page No: 6.1 40 6.2 41 6.3 43 6.4 44 6.5 45 6.6 46 6.7 47 6.8 48 6.9 49 6.1 50 6.11 51 6.12 52Christ University Institute Of Management
  10. 10. Adelaar Motorcycle Pvt Limited 10 Automotive Aftermarket- A Sneak peek INTRODUCTIONMotorcycling has a long, rich history that runs from the late 1800s to today. Andthat history has almost as many twists and turns as your favorite mountain road.From the first motorcycle, which was either simply a wooden testbed for a motoror a steam-powered bicycle, depending on which side of the debate you‟re on –to the hyper bikes of today that are so fast that some governments have eventhreatened to limit their speed, the world of motorcycling has gone through a lotof changes. We can easily romanticize the past, but glory days of motorcycling are rightnow. Some 6 million motorcyclists share a passion for this timeless sport. Bikerstoday ride a wide variety of reliable, state-of-the-art machines; they watch thefastest racers ever grow a leg over a motorcycle seat; and they buy the mostinnovative and protective motorcycling gear ever produced irrespective of itscost. If ever there was a great time to get into motorcycling, it is now.Christ University Institute Of Management
  11. 11. Adelaar Motorcycle Pvt Limited 11 Automotive Aftermarket- A Sneak peekChrist University Institute Of Management
  12. 12. Adelaar Motorcycle Pvt Limited 12 Automotive Aftermarket- A Sneak peek THE INDIAN TWO WHEELER (2W) INDUSTRYThe Indian two wheeler industries recorded a sales volume of 3.4 million units inQ3, 2011-2012, a growth of 11.0% (YoY) but flat (QoQ). The YoY volumegrowth of the industry remained in double digits, but the growth attained duringthe last quarter was the lowest among the last three years. The overall retardedgrowth was contributed by the motorcycle segment, which grew at a much lowerrate of 9.2% (YoY) in Q3, 2011-2012; whereas the scooter segment continued topost a growth of 20%+ (YoY). Overall, ICRA expects the domestic 2W industryto report a volume growth of 13% in 2011-12 as the growth is expected to fadefurther in Q4, 2011-12 due to the base effect. In an environment where the northward movement ofinflation, fuel prices and interest rates has been the nemesis of Indian automobileindustry at large, the 2W industry has been the most resilient which has reflectedin its healthy growth of 15% (YoY). The growth has been supported by variousexternal and internal factors attached with the domestic 2W wheeler industrywhich includes favorable demographic profile, moderate 2W penetration levels,developed public transport system, growing urbanization and expected strongreplacement demand, beside moderate share of financed purchases. ICRA 1expects these strengths, coupled with OEM‟sthrust on exports, to aid the 2W industry to report a volume CAGR of 10-12%over the medium term to reach a size of 21-23 million units (domestic + export)by 2015-16.1 http://www.icra.in/Files/ticker/Indian%202W%20Industry,%20Update,%20Feb%202012.pdfChrist University Institute Of Management
  13. 13. Adelaar Motorcycle Pvt Limited 13 Automotive Aftermarket- A Sneak peekChart-1: Trends in motorcycle sale by engine capacity 75-125 cc 125-250 cc >250 cc 78% 71% 69% 70% 28% 29% 27% 21% 1% 2% 3% 0% 2007-08 2008-09 2009-10 2010-11Source: SIAM, ICRA estimates.Competition likely to intensify in the entry segment in the near termHHML is currently the clear market leader in the entry segment, enjoying amarket share of close to 70%. The company has a portfolio of six models in the100cc segment in the Rs. 35,000-45,000 price band and continues to maintain adominant market position led by its Splendor and Passion series of motorcycles.HHML‟s strong franchise, wide distribution network, and regular refurbishmentsand line extensions of the Splendor and Passion series have allowed it to protectits turf in the entry segment on a sustained basis. Earlier, intense pricecompetition and relatively low profitability in the lower end of the entry segmenthad prompted BAL (in 2007-08) to diminish its focus on the 100cc segment, andwith that its market share dropped to 17% in 2008-09 from 26% in 2006-07.Christ University Institute Of Management
  14. 14. Adelaar Motorcycle Pvt Limited 14 Automotive Aftermarket- A Sneak peekHowever, with the launch of Discover 100cc by BAL in July 2009, the companyhas made a comeback in the 100cc segment.This has supported volume growth for BAL in the current year, pushing up itsmarket share in the entry segment to 23% (April January 2010) from 17% in2008-09. The launch of new products in the entry segmentaugurs well for the enrichment and expansion of the segment. However, thealready high rate of penetration in the urban markets is likely to remain amoderating factor. Increased competition in this segment is expected to lead to anincrease in below-the-line promotions, thereby squeezing profit margins; thismay get accentuated further by a likely increase in raw material costs in the nearterm. Among the entry-segment players, HHML is better placed to meet theanticipated challenges to profitability, give its larger economies of scale.OEMs sharpen focus on executive segment, given its relatively superiorprofitability. The executive segment (125-250cc) has witnessed significantactivity over the last few years with multiple models and variants being launchedby almost all the original equipment manufacturers (OEMs). The lower end ofthe executive segment features HHML‟s Super Splendor and Glamour; BAL‟sPlatina 125, Discover 135 and Pulsar 135; TVS‟ Flame; HMSI‟s Shine andCBF Stunner; and Suzuki Motorcycle India Pvt Limited‟s (SMIPL‟s) Heat andZeus. The upper end has HHML‟s troika of CBZ, Hunk, and Karizma; BAL‟sPulsar series; HMSI‟s Unicorn; SMIPL‟s GS 150R; TVS‟ Apache; and fourofferings from the Yamaha stable.Christ University Institute Of Management
  15. 15. Adelaar Motorcycle Pvt Limited 15 Automotive Aftermarket- A Sneak peekThe executive segment hails its origin to the year 1999 when HHML launchedthe sports-oriented CBZ (sporting the Honda 156.8cc engine), giving customersthe option to graduate from plain-vanilla commuting to performance biking. Thiswas followed by the launch of Pulsar 150 and Pulsar 180 models by BAL in 2001which paved the way for high sales growth in this segment capitalizing on thelatent demand. While entry-segment motorcycles typically offer higher fueleconomy and lower operating costs, performance bikes are characterized byfeatures such as higher speed, quicker acceleration, and superior ride, handlingand braking. With increasing disposable incomes in the hands of customers in a growingeconomy, executive segment motorcycles appear to have caught the fancy ofcustomers and seem to hold a strong growth potential in India over the long term.While most 2W OEMs operating in India now have a presence in the executivesegment, BAL is the current market leader, accounting for almost half the sales inthe segment. BAL‟s presence in the segment is marked by its flagship brandPulsar, which is available in the 150cc, 180cc and 220cc variants. However, BAL‟s market share in this segment has seensome erosion over the last five years because of increased competition; from 70%in 2005-06, its market share has come down steadily to the level of 47% now(April-January 2010). Also, with a host of new products being launched byHMSI, HHML, Yamaha, TVS and SMIPL over the last five years, the segmenthas witnessed increasing competition in both the 125cc and 150cc sub-categories.Yamaha, Honda and Suzuki are strong global brands, but given their relativelyshort track record in India, their ability to succeed here is yet to be tested.Christ University Institute Of Management
  16. 16. Adelaar Motorcycle Pvt Limited 16 Automotive Aftermarket- A Sneak peekOutlook for the executive segmentInvestment in brand-building assumes far greater significance now than earlierwith Indian customers turning more demanding and competition alsointensifying. Since bikes in the upper end of the executive segment also have anaspirational value attached, the ability of OEMs to build strong brands in thisspace could have a positive rub-off on their entry-segment offerings as well.Thus, going forward, the executive segment is expected to claim a greater shareof marketing spends. Increased activity is expected at the higher end of theexecutive segment, in which global majors like Honda and Yamaha are likely toleverage their global portfolios to launch models in India. Given their currentlylow base, some of these players may be expected to generate strong growth,causing some market share erosion for market leader BAL over the medium term.While the launch of Pulsar 135 is expected to make up for the anticipated loss ofvolumes of its bigger cousins, the risk of Pulsar‟s brand dilution cannot be ruledout. The executive segment is expected to be able to maintain its volume growthover the medium term, which should translate into superior profit margins forplayers that are stronger in this segment.Christ University Institute Of Management
  17. 17. Adelaar Motorcycle Pvt Limited 17 Automotive Aftermarket- A Sneak peekPremium segment remains a niche, although proposed launches wouldexpand the market:The premium segment of motorcycles in India (>250cc) is currently dominatedby Eicher Motor Limited‟s Royal Enfield, which offers motorcycles in the 350ccand 500cc categories; HMSI, Yamaha, and SMIPL are the other prominentplayers here. While Royal Enfield‟s products are in the category of cruiser bikes,the other players‟ products are sports bikes. These machines are designed todeliver high power, come packed with technology, and accordingly command apremium price. Many of the models launched earlier in the premium segment hadmet only limited success; for instance, Yamaha‟s Enticer, Kawasaki-Bajaj‟sEliminator, and Kinetic‟s Aquila showed promise in the initial months of theirlaunch, but later had to be discontinued. Given the low volume potential of thesebikes, some of the other large players in India like HHML and TVS have stayedaway from this segment.Outlook for the premium segment2:This market offers large scope for segmentation in terms of price points andperformance characteristics. Also, the premium segment is expected to getcrowded as new players like Harley Davidson, Ducati, and Kawasaki gear up toexpand their presence in it. Further, BAL, SMIPL, and HMSI have a pipeline ofmultiple products that are slated for launch in 2010-11. Given the premium andniche character of these bikes, the volume base is likely to remain small over themedium term. The low volumes of products in this segment do not justifyinvestments in localization of parts.2 http://www.icra.in/Files/Articles/2010-February-Two-Wheeler.pdfChrist University Institute Of Management
  18. 18. Adelaar Motorcycle Pvt Limited 18 Automotive Aftermarket- A Sneak peekHence, most of the new products planned to be launched are either likely to beimported as completely built units (CBUs) or they would have a high importcontent. Thus, product prices are likely to remain high over the medium term,which in turn could curtail growth prospects. While it is true that these productsare not meant for the mass market, considering the increase in customerawareness levels, OEMs cannot afford to ignore the price-value equationaltogether.Christ University Institute Of Management
  19. 19. Adelaar Motorcycle Pvt Limited 19 Automotive Aftermarket- A Sneak peek KEY DRIVERS BEHIND THE GROWTH OF TWO WHEELER INDUSTRY.3 Working population. Rising Rapid urbanization income levels Growth Drivers Skilled Booming manpower rural market. Working population: In India 60% of the population is in the working age group (15 to 64 years).So three fifth of the population comes under the earning category. By 2015 forty four million household is expected to join the income band of ($8870-$10960).i Rising income levels: The income level of the population is increasing with a steady growth. The personal disposable income is expected to increase annually at the rate of 8.5% till 2015.3 Sources: „Dreaming with BRICS- The path to 2050‟, Goldman Sachs; NCAER; Morgan Stanley, CRISINFAC, Wikipedia, IBEFChrist University Institute Of Management
  20. 20. Adelaar Motorcycle Pvt Limited 20 Automotive Aftermarket- A Sneak peek Booming rural market: Market penetration is done by exposing the untapped rural market which consist a base of 720 million consumers across 627,000 villages. Skilled Manpower: India consists of 2nd largest pool of certified professionals and also equipped with highest number of engineers in the world. Rapid urbanization: With continuous level of growth urbanization in India is expected to increase up to 35% by 2025. 140 million rural populations estimated to move to urban areas by 2020.Christ University Institute Of Management
  21. 21. Adelaar Motorcycle Pvt Limited 21 Automotive Aftermarket- A Sneak peek TWO WHEELER AUTOMOTIVE AFTERMARKETThe Automotive Component Manufacturers Association (ACMA) 4‟ hasannounced the findings of first of its kind study on the „Indian automotiveaftermarket‟. The aftermarket in India of the „on-road‟ vehicles is valued at INR330 billion with 25 per cent on account of servicing (labor charges) and theremaining from components, putting the total components aftermarket at aroundINR 248 billion. Two-wheelers are the top contributors to the total aftermarket at46 per cent. So the overall figure for the two wheeler aftermarket industry standsat 151.8 billion.• Two-wheelers contributed 49.66 per cent to the total vehicle components‟aftermarket. Three-wheelers at 2.54 per cent, PVs with 24.68 per cent and CVswith 23.12 per cent share complete the pie for components aftermarket in 2010.• The top States for two-wheeler components aftermarket were Gujarat at INR 14billion, closely followed by Maharashtra at INR 13.9 billion and Tamil Nadu atINR 13 billion. Amongst cities, Delhi had the highest market size for two-wheeler components with an aftermarket size of INR 5.5 billion.• In terms of automotive aftermarket, the replacement frequencies as well aspreventive maintenance behavior was very different in lower tier towns and ruralmarkets as compared to large cities. These consumer segments are extremelycost-sensitive, spends are low, preventive maintenance outside warranty is rareand replacements are often low cost unbranded or even spurious.4 Source:ACMA,www.acmaindia.comChrist University Institute Of Management
  22. 22. Adelaar Motorcycle Pvt Limited 22 Automotive Aftermarket- A Sneak peek COMPANY PROFILEChrist University Institute Of Management
  23. 23. Adelaar Motorcycle Pvt Limited 23 Automotive Aftermarket- A Sneak peek OBJECTIVE AND STATEMENT OF PROBLEMStatement of the problem: The project caters to three main areas which overalldefines the whole problem statement.1. Market segmentation of Motorcycle/Two wheeler market in Indian context,(This is a simplified statement, which tends to explore the Buying Behavior,Pattern, Key Influences for buying, Points of Sale & Accessibility) .2. Profile and Analysis of Two wheeler (Premium Lifestyle & NecessityAccessories) requirement for Indian market. "Basically who is expecting what &why".3. Market Sentiments on Gear, Protection, Ecosystem and Motorcycling Habit‟s.Details of the study: The project title is “Automotive Aftermarket Sneak Peek”which has been done for Adelaar Motorcycle Pvt Limited. The project title is alaunch of their store which will be positioned as one stop destination for biker‟sin Bangalore.The one stop shop which is expected to come up by the end of this year will beconsisting of four different sections and they are as follows. Gear and Accessories shop Custom workshop Performance parts shop Café and pubChrist University Institute Of Management
  24. 24. Adelaar Motorcycle Pvt Limited 24 Automotive Aftermarket- A Sneak peek These four subsections altogether will create a motorcycling ecosystem which will gift a memorable experience to every visitor. They have already opened their pilot store in Kasturi Nagar, Bangalore which is only dealing in the gear and accessories for the time being. As time rolls down they will upgrade or shift the store to the main site. Data collection methods: Both the primary and secondary data collection methods were considered. The primary data was collected through a questionnaire designed exclusively for the study. Secondary data was taken from Research Papers, Journals, Magazines and Websites. Sample frame: The sample was selected from the respondents residing in Bangalore of various age categories owning a high end bike. Sample design: The study was done on a sample size of 200 in Bangalore by a data collection method through a proper structured questionnaire from a sample size of 450 HNI present in a database given by the company itself. 80 face to face interviews were done, 120 telephonic interviews and 20 interviews were conducted on mail, where the respondents were asked to fill it up online. Overall a method of convenient sampling was used.Christ University Institute Of Management
  25. 25. Adelaar Motorcycle Pvt Limited 25 Automotive Aftermarket- A Sneak peek LITERATURE REVIEWThe core group of individuals called reference group provide opinions andinformation to the consumers aspiring to products. This group includes spouses,other family members, friends, co-workers and also sales people (Mallalieu andPalan, 2006). The opinions are asked in an effort to conform to norms of groupand the society towards which they have tendency to belong (Kinley et al, 2000;Siegel and Siegel, 1957; and Turner, 1956). Schiffman and Kanuk (1997)describes reference group as individual frame of reference to guide the purchasebehavior of consumer. Reference group does not confine only to the people withwhom the consumers have direct and /or frequent contact; it rather extends toother people of the society as well who may not necessarily have the directcontact with the consumers (Hawkins et al, 1998). There are three major types ofreference group of influences: informational influence, utilitarian influence, andvalue expressive influence (Bearden and Etzel, 1982). Informational influence improves one‟s knowledge and ability tocope with the environment. Utilitarian influence helps in obtaining praise oravoiding punishment from the group due to non-conformance. Value-expressiveinfluence helps one to express oneself to the society by making oneself similar tothe group one intends to belong to. There is an association between price of the product and theinvolvement level of the consumer. The higher the price, more involvement ofthe consumer is likely to be (Laurent and Kapferer, 1985). The purchases ofdurable goods due to their longevity are generally considered high involvementpurchases. People in a richer country tend to be more individualistic becausewealth does not necessitate the assistance of others. Claxton et al (1974) foundChrist University Institute Of Management
  26. 26. Adelaar Motorcycle Pvt Limited 26 Automotive Aftermarket- A Sneak peekeducated consumers and with high income visiting stores for the procurement ofinformation. Keil and Layton (1981) in their study on the behavior of Australiannew family car buyers observed majority of people using interpersonal source ofinformation. The study explored the positive relationship between price of theproduct and search behavior. Also the consumers with least self confidence wentfor greater search activity. The consumers who make repeat purchases have toengage less in search activity. A research journal by Hossein Nezakati (2011), Department ofManagement and Marketing, Faculty of Economics & Management, UniversityPutra, helps us to understand the consumer purchasing behavior in term of price,quality, value, risk, beliefs, and perception and so on in order to come out withmore effective marketing strategies. This study was conducted in Malaysia andon four wheeler segment. The study shows that the buying behavior is heavilyinfluenced by the brand equity of that particular brand; the higher the brandequity the higher the chances of buying that four wheeler. The higher brandequity also suggests safety of driving that machine.Christ University Institute Of Management
  27. 27. Adelaar Motorcycle Pvt Limited 27 Automotive Aftermarket- A Sneak peek CONCEPTUAL FRAMEWORKMarket Segmentation: The market for a product is nothing but the aggregate ofthe consumer of that product. The consumer of each and every product varies inneeds, motivation, characteristics and buying behavior. Each and every marketfor a product is a heterogeneous unit. Marketers break up the overallheterogeneous market for product into several sub units or sub markets, whereeach of the sub units are homogenous in nature within itself, compared to marketinto a number of sub markets or sub units of buyer, each with relatively morehomogeneous characteristics is known as market segmentation.Why segment the market?Market segmentation benefits the market in several ways. Facilitates the right choice of target market- It helps the marketer to select the target market properly, which in turn helps him to distinguish one customer group to other customer group in the market. This helps him to show the right segment to match his situation and demand. Facilitates effective tapping of the chosen market- Segmentation helps the market to crystallize the needs of each of the chosen market and make offer to match them. The marketers can adapt the offers to particular target segments to achieve the specialization required in product, distribution; promotion and pricing for matching the particular customer base and can develop marketing offers to appeal them.Christ University Institute Of Management
  28. 28. Adelaar Motorcycle Pvt Limited 28 Automotive Aftermarket- A Sneak peek Makes the marketing effort more efficient and economic- Segmentation also makes the marketing more efficient and economic. It ensures that the marketing effort is concentrated on selected and well defined segments. After all, for most firms the resource would benefits if its efforts were concentrated on selected segments-the ones that match the firm‟s resources and are most productive and profitable.Christ University Institute Of Management
  29. 29. Adelaar Motorcycle Pvt Limited 29 Automotive Aftermarket- A Sneak peek Go-To Market StrategyGo-To-Market strategy refers to the channels that a company will use to get intouch with its customers or business and the organizational processes it develops(such as high tech product development) to guide customer interactions frominitial contact through fulfillment. A firms Go-To-Market strategy is the mechanism bywhich they propose to deliver their unique value proposition to their targetmarket. That value proposition is based on the choices the business has made tofocus on and invest in markets and solutions that they believe will respondpositively to the increased attention.The main focus of this marketing exercise is to target the directconsumer or the one authority that makes the buying decision. What to sell Go-To Market How to Who to sell sell Go-To Market strategy.Christ University Institute Of Management
  30. 30. Adelaar Motorcycle Pvt Limited 30 Automotive Aftermarket- A Sneak peekMarketing Strategy involves WHO the firm will go after and WHAT it will offerthem. Go-To-Market strategy is a component of the overall marketing strategyand is concerned with HOW the firm will make it happen.Go-To Market is a strategy mainly used by marketers of goods that are not for themass market. This strategy is specially used by start-ups to take their product tothe market.Christ University Institute Of Management
  31. 31. Adelaar Motorcycle Pvt Limited 31 Automotive Aftermarket- A Sneak peek RESEARCH METHODOLOGYDetails of the study: The project title is “Automotive Aftermarket Sneak Peek”which has been done for Adelaar Motorcycle Pvt Limited. The project title is alaunch of their store which will be positioned as one stop destination for biker‟sin Bangalore.The one stop shop which is expected to come up by the end of this year will beconsisting of four different sections and they are as follows. Gear and Accessories shop Custom workshop Performance parts shop Café and pub These four subsections altogether will create a motorcycling ecosystem which will gift a memorable experience to every visitor. They have already opened their pilot store in Kasturi Nagar, Bangalore which is only dealing in the gear and accessories for the time being. As time rolls down they will upgrade or shift the store to the main site. Data collection methods: Both the primary and secondary data collection methods were considered. The primary data was collected through a questionnaire designed exclusively for the study. Secondary data was taken from Research Papers, Journals, Magazines and Websites. Sample frame: The sample was selected from the respondents residing in Bangalore of various age categories owning a high end bikeChrist University Institute Of Management
  32. 32. Adelaar Motorcycle Pvt Limited 32 Automotive Aftermarket- A Sneak peek Sample design: The study was done on a sample size of 200 in Bangalore by a data collection method through a proper structured questionnaire from a sample size of 450 HNI present in a database given by the company itself. 80 face to face interviews were done, 120 telephonic interviews and 20 interviews were conducted on mail, where the respondents were asked to fill it up online. Overall a method of convenient sampling was used.Christ University Institute Of Management
  33. 33. Adelaar Motorcycle Pvt Limited 33 Automotive Aftermarket- A Sneak peek ANALYSIS & SUGGESTIONChrist University Institute Of Management
  34. 34. Adelaar Motorcycle Pvt Limited 34 Automotive Aftermarket- A Sneak peek POPULATION SAMPLE 36-55 18-23 20% 22% 29-35 24-28 28% 30% Chart 2: Population sample size-200 The sample size was decided to be 200 due to the factor as maximum of the sample units were HNI (High networking individuals) and time also adding up being another constraint. The interviews were done by taking prior appointments from a database of 450 customers who owns high end bikes provided by the company, where 80 interviews were done in person and 100 were done on telephone. The rest 20 interviews were done by mail where the respondents were asked to fill up the questionnaire online. 18-23 age groups: The respondents were fragmented to this age group because it is assumed that the respondents are not married and still going through college life. So the purchasing power is assumed to be low as they are they are not earning members of their family. Even theChrist University Institute Of Management
  35. 35. Adelaar Motorcycle Pvt Limited 35 Automotive Aftermarket- A Sneak peek purchasing decision of any product is also influenced by a lot of other constraints which are normally not under their control. 24-28 age groups: The respondents of this age group were fragmented into this category because it is assumed that at this age most of our respondents were an earning member of their family. It is also assumed that the respondents are not married, so their disposable incomes are on the higher side. This age also gives you the freedom to express or realize your dreams as they are backed up by the purchasing power. 29-35 age groups: The respondents of this age group were fragmented into this category on the basis of assumption that at this age, the respondents have started their family and the disposable income is channelized towards family building process. It‟s also considered that the income level has also grown with time for this age group. 36-55 age groups: The respondents of this age group were fragmented together because at this age the disposable income is on the higher side, so the lifestyle will be hugely different from the other age categories. At this age, status symbol is also one of the important factors. This age group as assumed have higher craving to socialize with the likeminded people. Hence number of social outings is also on the higher side.Christ University Institute Of Management
  36. 36. Adelaar Motorcycle Pvt Limited 36 Automotive Aftermarket- A Sneak peek CUSTOMER PROFILING & PERFORMANCE UPGRADATIONChrist University Institute Of Management
  37. 37. Adelaar Motorcycle Pvt Limited 37 Automotive Aftermarket- A Sneak peek IS THIS YOUR 1ST MOTORCYCLE??? 57% respondents were new to the overall 18-23 experience of biking as they were the 1st NO time owner of a motorcycle. The rest 43% 43% of the respondents had already moved over YES from their 1st motorcycle and upgraded 57% them to a better one. 30% respondents were new to the overall 24-28 YES experience of biking as they were the 1st 30% time owner of a motorcycle. The rest 70% of the respondents had already moved over from their 1st motorcycle and upgraded NO them to a better one. 70% 29-35 YES 12% respondents were new to the overall experience of biking as they were the 1st 12% time owner of a motorcycle. The rest 88% of the respondents had already moved over from their 1st motorcycle and upgraded NO them to a better one. 88% 36-55 YES 13% respondents were new to the overall experience of biking as they were the 1st 13% time owner of a motorcycle. The rest 87% of the respondents had already moved over NO from their 1st motorcycle and upgraded them to a better one. 87%Christ University Institute Of Management
  38. 38. Adelaar Motorcycle Pvt Limited 38 Automotive Aftermarket- A Sneak peek The above data shows that the number of 1st time buyers in two wheeler category (high end bikes) is continuously decreasing with the increasing age. As the shelf life of motorcycle are assumed to be near about 5 years with minimum maintenance, so there has been a tendency observed among the respondents to upgrade their bike within that certain timeline and sell of the old one to get the maximum resale value. As the frequency of changing motorcycle increases it also establishes the fact that the changing of gears and accessories also goes hand in hand. So if we can target our customers at young age and be partner in their motorcycling passion till the time they call it a day, than it will be beneficial for us. The numbers of new customers are very rare and few in the higher age category and the majority chunk lie in existing two wheeler owner. So the customer retention should be our main objective. NO OF MOTORCYCLES OWNEDChrist University Institute Of Management
  39. 39. Adelaar Motorcycle Pvt Limited 39 Automotive Aftermarket- A Sneak peek 1 2 3 >3 56% 52% 53% 42% 33% 31% 27% 28% 16% 12% 11% 9% 11% 5% 5% 2% 18-23 24-28 29-35 36-55 The above data shows that the pattern is pretty same except the age group of 29-35 where the respondent owning two motorcycles forms the majority with 42%. Apart from that the data scales up to the expectation where respondents owning more than three motorcycles forms the minority in terms of percentage except in the age category of 18-23 where the lowest percentage is of respondents who exactly own three motorcycles only. So it‟s clearly visible irrespective of the age approximately 48% of respondents who were surveyed own more than 1 motorcycle and these are the customers who are more into passionate biking. As the number of motorcycle increases, the maintenance charges and amount being spent for performance parts will also increases. So in future we can also segregate our customer base with respect to the numberChrist University Institute Of Management
  40. 40. Adelaar Motorcycle Pvt Limited 40 Automotive Aftermarket- A Sneak peek of two wheelers owned by the customers because the need will be varying with the number of motorcycle being owned. IMPORTANCE GIVEN TO PERFORMANCE OF MOTORCYCLEChrist University Institute Of Management
  41. 41. Adelaar Motorcycle Pvt Limited 41 Automotive Aftermarket- A Sneak peek 80% 80% 80% 75% 70% 70% 60% 50% 40% 28% 30% 20% 21% 15% 20% 10% 4% 5% 0% 1% 0% 18-23 24-28 29-35 36-55 VERY IMPORTANT IMPORTANT NEUTRAL This data shows us people who ride motorcycle for sheer passion and not for commutation are more performance oriented and performance is a very important criterion for them. The two age segments which put more stress on the performance part are the two extreme age category mentioned above. The adrenaline rush can be a reason for the 18-23 age categories, so they want to get the maximum out of their bike but purchasing power can be a roadblock for them. The age category 36-55 which can also be termed as “Baby boomers” are also more into performance stuff but the best part is that here the need is also backed up by high purchasing power. PERFORMANCE INTERPRETD BY OUR TGChrist University Institute Of Management
  42. 42. Adelaar Motorcycle Pvt Limited 42 Automotive Aftermarket- A Sneak peek 18-23 5% 2% 0% 5% 7% All of the below Increase in Engine performance 81% Improved Stopping Improved Acceleration Improved Pick-up Improved Mileage As we all know performance means different to different people, so on the survey we also got a varied response when the respondents were asked to decode the word performance with respect to their bike. The majority chunk focuses on the below attributes, but though a small percentage of 7% of this age group focuses more on engine performance which is followed by increase in better acceleration and better pick-up. Even this age group doesn‟t fall in the earning category still they are not running after mileage. So overall this age segment is more into engine performance, pick-up and better acceleration. PERFORMANCE INTERPRETD BY OUR TGChrist University Institute Of Management
  43. 43. Adelaar Motorcycle Pvt Limited 43 Automotive Aftermarket- A Sneak peek 24-28 All of the below 0% 5% 0% Increase in Engine 15% performance Improved Stopping 78% Improved Acceleration Improved Pick-upThis age category as assumed to be the earning member of the family andequipped with high disposable income, so as expected that they have focusedmore on engine performance apart from the 78% who have gone for selecting allof the below option. So a 15 % of the respondents had decoded performance assheer in terms of performance of engine followed by a 5 % of respondents goingfor improved in acceleration. So a direct correlation can be established betweenthe purchasing power and attention given to the engine performance.Christ University Institute Of Management
  44. 44. Adelaar Motorcycle Pvt Limited 44 Automotive Aftermarket- A Sneak peek PERFORMANCE INTERPRETD BY OUR TG 29-35 3% 2% All of the above 0% 7% 10% Increase in Engine performance Improved Stopping 78% Improved Acceleration Improved Pick-up This age category as assumed to start their own family and alsoclimbed up the ladder of success by having increment in their overall income. Sothey have also interpreted the performance part same as the earlier age group by10% going for better engine performance and 7% going for better acceleration.This target segment can be catered and served by offering more products whichwill enhance their bike‟s engine output and give them a better acceleration.Christ University Institute Of Management
  45. 45. Adelaar Motorcycle Pvt Limited 45 Automotive Aftermarket- A Sneak peek PERFORMANCE INTERPRETD BY OUR TG 36-55 0% All of the above 7% 13% Increase in Engine performance 44% 13% Improved Stopping 23% Improved Acceleration Improved Pick-upThis age category has shown a diverse interpretation of performance as this groupcan be considered as “Baby Boomers”, so they have been more specific in theirinterpretation. As we can see only 44% of respondents has gone for all of theabove option and the rest 56 % has been specific in terms of their interpretation.. As usual engine performance and better acceleration has beenchosen by most of the respondents by getting 36% of the votes and as most of therespondents are the user of high end bikes, so improved stopping has also cameinto the picture. INR SPENT FOR PERFORMANCE UPGRADATIONChrist University Institute Of Management
  46. 46. Adelaar Motorcycle Pvt Limited 46 Automotive Aftermarket- A Sneak peek 18-23 24-28 29-35 36-55 60% 50% 48% 40% 33% 30% 29% 28% 28% 30% 23% 21% 20% 18% 18% 18% 17% 18% 18% 18% 14% 10% 10% 7% 2% 2% 0% 0-5k 6k-10k 11k-20k 20k-50k 50k onwardsThe purchasing power of respondents in terms of performance up gradation offour different age groups has been plotted. The first two age brackets aredominated by age group of 18-23 and they start losing their dominance as thespending bracket increases. The purchasing power of 18-23 age groups is more orless limited to 10k to buy performance oriented parts on an annual basis. Both theage groups 24-28 and 29-35 are equally distributed in the entire spending bracketexcept more than 50k, where only 10% of respondents from the age bracket of29-35 make their presence felt. The age group of 36-55 is the only group whichmakes their presence felt in entire bracket with a minimum of 18% and amaximum of 28% in the spending bracket of 11k-20k.Christ University Institute Of Management
  47. 47. Adelaar Motorcycle Pvt Limited 47 Automotive Aftermarket- A Sneak peek GEARS & ACCESSORIES USAGE OF RIDING GEARSChrist University Institute Of Management
  48. 48. Adelaar Motorcycle Pvt Limited 48 Automotive Aftermarket- A Sneak peek 100% 79% 76% 54.50% 37% 28% Helmet Riding Riding Riding Riding Riding Gloves Glasses Boots Jackets Pants A feedback of 200 respondents clearly showed that helmet is used by everybody as it is mandatory according to the traffic rule. Riding gloves and riding jackets are also frequently used as 79% and 76% of the respondents use it respectively. Riding glasses are taking a back seat because a lot of respondents preferred full mask helmet and if using a half mask helmet than they use to wear their own shades which is more stylish in design. So a only 37% of respondents own it but don‟t use it on a regular basis. Riding boots and riding pants are usually not used for normal rides but they come into the picture during the long drives and racing stint. so they might need a push to sell over the counter as the usage pattern is very low for riding boots and pants. RESAONS FOR NOT BUYING THE RESTChrist University Institute Of Management
  49. 49. Adelaar Motorcycle Pvt Limited 49 Automotive Aftermarket- A Sneak peek 45% 33% 20% 2% Lack of Lack of Price factor Not required availability awareness The main reason behind less purchase of riding gear is price factor because both on an average of 70% of the respondents from the age category of 18-23 and 24-28 are limited to 10k range. The next problem seems to be availability because better brands are not so easily available in India even if they are than they are priced so higher that it becomes out of reach. So here the mode of sale becomes very important as the customer is not aware of the point of sale, so more awareness needs to be spread. GEARS WITH REFLECTIVE PROPERTIESChrist University Institute Of Management
  50. 50. Adelaar Motorcycle Pvt Limited 50 Automotive Aftermarket- A Sneak peek 62% 60% 31% 14% 16% 14% Helmet Riding Riding Riding Riding None Gloves Boots Jackets Pants Reflective and illuminating properties are very important factor which should be taken care of while buying ant riding gear. When the customers were asked about reflective properties present in their gear than their response was plotted in the above graph. The graph clearly shows that helmet and riding jackets are the gears in which riders expect that it should be equipped with reflective properties. 60% of our respondents make sure that their helmets and jackets are equipped with reflective properties. As the sitting position of a rider exposes the jacket and the helmet the most during night driving so this are the ones which should definitely have reflective properties in it. After this two, 31% of the respondents also have these reflective properties in their riding gloves, so overall three gears should be sold with reflective properties for efficient night riding and it can also work as differentiating factor from other brands when Adelaar launches their own range gears.Christ University Institute Of Management
  51. 51. Adelaar Motorcycle Pvt Limited 51 Automotive Aftermarket- A Sneak peek FREQUENCY OF CHANGING GEARS AND ACCESSORIESChrist University Institute Of Management
  52. 52. Adelaar Motorcycle Pvt Limited 52 Automotive Aftermarket- A Sneak peek 18-23 24-28 29-35 36-55 46% 45% 42% 40% 40% 32% 33% 31% 27% 27% 23% 14% once in a year once in two years wait for it tear up completely The frequency of changing gears and accessories don‟t vary a lot among different age groups. As the age group of 18-23 and 24-28 don‟t have spend more on accessories and gears, so they also end up buying stuff very frequently. The reason behind that this age group always wants to be updated and end up changing their stuffs very frequently. The age group of 36-55 makes their presence felt in all the three categories but as they end up spending huge sum for their gears, so maximum of them want to get the best out of it except those who exhibit impulsive buying characteristics. This graph clearly shows us the repeat buying frequency and what is the waiting time between sales of two same products to the same customer of different age group.Christ University Institute Of Management
  53. 53. Adelaar Motorcycle Pvt Limited 53 Automotive Aftermarket- A Sneak peek MODE OF PURCHASEChrist University Institute Of Management
  54. 54. Adelaar Motorcycle Pvt Limited 54 Automotive Aftermarket- A Sneak peek As at this age people are usually 18-23 not equipped with credit cards, so Shop Online 1% the online shopping is very less. 9% The majority of the pie lies with Local Stores the local store where the 30% respondents can touch and feel OEM-Dealer the product before buying it and stores 60% rest lies with the OEM dealers. Direct import As this is the working group, so 24-28 the online shopping increases and rises to 20%. But here also the Shop Online 7% majority of the pie lies with the local dealer as they are easily in Local Stores 20% the reach of the customer and 25% touch and feel factor which was OEM-Dealer missing in the online part is stores 48% available here. The OEM dealer Direct import maintains a same percentage of pie in both the age category.Christ University Institute Of Management
  55. 55. Adelaar Motorcycle Pvt Limited 55 Automotive Aftermarket- A Sneak peek As this is also the working 29-35 group, so the online shopping increases and rises to 21%. But Shop Online here also the majority of the pie 11% lies with the local dealer as they Local Stores 21% are easily in the reach of the customer and touch and feel OEM-Dealer 21% factor which was missing in the stores online part is available here. Direct import 47% The OEM dealer has a same percentage in the pie as online shopping. As the age increases of the 36-55 respondent the pie of local dealers is getting smaller and Shop Online direct import is getting bigger. 16% 20% This age group can be Local Stores connected by OEM dealer and local stores because this is the OEM-Dealer 28% stores 36% only age category where the pie for OEM dealer is the biggest. Direct import SPENDING PATTERN FOR GEARS AND ACCESSORIES (18-23)Christ University Institute Of Management
  56. 56. Adelaar Motorcycle Pvt Limited 56 Automotive Aftermarket- A Sneak peek 41% 43% 45% 40% 35% 30% 25% 20% 11% 15% 10% 5% 0% 0% 5% 0% 0-5K 5K-10K 10K-20K 20K-50 50K-1 >INR 1 Lakh lakh 18-23 ageThis age group spends very frequently because they always want to be updatedwith the latest trend in the market and the frequency of repeat buying is alsohigher for them. As they are not still in the earning category so their spendingpattern is more clustered towards 0-20k. This spending pattern shows how much an individual spendsannually for gears and accessories. There are very short percentages ofrespondents who also lie in a bracket of 10-20k and 20-50k which can be treatedas insignificant considering the overall scenario. SPENDING PATTERN FOR GEARS AND ACCESSORIES (24-28)Christ University Institute Of Management
  57. 57. Adelaar Motorcycle Pvt Limited 57 Automotive Aftermarket- A Sneak peek 35% 35% 30% 30% 25% 19% 20% 15% 15% 10% 5% 1% 0% 0% 0-5K 5K-10K 10K-20K 20K-50 50K-1 Lakh >INR 1 lakh 24-28 ageThis age category has shown a very diverse purchasing pattern because they makestheir presence felt in each and every spending bracket by a significant percentage.Even they fall in the earning category but still their spending pattern doesn‟t reflectsthat which clearly shows that this age group is not ready to splurge too much ongear and accessories. They also have around 35% of respondents who spends in a bracketof 10-50k which can be targeted as our potential customer. Their spending pattern isvery influenced by the previous age group because they just got updated from thelast age group, so the spending habits have not changed drastically. SPENDING PATTERN FOR GEARS AND ACCESSORIES (29-35) Christ University Institute Of Management
  58. 58. Adelaar Motorcycle Pvt Limited 58 Automotive Aftermarket- A Sneak peek 31% 35% 30% 25% 25% 20% 14% 14% 15% 9% 7% 10% 5% 0% 0-5K 5K-10K 10K-20K 20K-50 50K-1 Lakh >INR 1 lakh 29-35 ageThis age category has shown a very diverse purchasing pattern because they makestheir presence felt in each and every spending bracket by a significant percentage.This age group shows a jump in the spending category from the last age group, eventhe frequency of buying gears and accessories is also very diverse. A lot of impulsive buying behavior has been exhibited by thisgroup. But still 55% of respondents spend around the category of 0-10k, but the restof the respondents which are scattered around the rest of the spending category isabout 45% which forms a major chunk. Christ University Institute Of Management
  59. 59. Adelaar Motorcycle Pvt Limited 59 Automotive Aftermarket- A Sneak peek SPENDING PATTERN FOR GEARS AND ACCESSORIES (36-55) 25% 23% 25% 20% 15% 13% 13% 15% 11% 10% 5% 0% 0-5K 5K-10K 10K-20K 20K-50 50K-1 >INR 1 Lakh lakh 36-55 ageThis age group shows a huge chunk towards the high end spending bracket. Thisage group also changes their gears very frequently irrespective of the fact that theyend up buying some high end good stuff. As they end up importing a lot of gearsand accessories from abroad, this can also be a reason for this 28% of respondentswho falls in that spending bracket of 50k onwards. They can be the bunch of ourpotential customers because of their spending pattern. But the major chunk lies in 20-50k range and in5-10k range with 235 and 25% respectively. It clearly shows that this age group hasplayers in each and every spending bracket. Christ University Institute Of Management
  60. 60. Adelaar Motorcycle Pvt Limited 60 Automotive Aftermarket- A Sneak peek PREFERENCE GIVEN WHILE SELECTING GEARS.. Protection Comfort Visibility Price Style 18-23 24-28 29-35 36-55When the respondents from various age categories were asked to rank these variousfactors on the importance given to them during their purchase of gears, the abovegraph shows the response of different age categories. The preference given to “protection” by all the agecategories is the highest followed by “comfort”, ”visibility” ,”price” ,”style”. Thetrend is pretty similar in all the age categories except the last one where the agecategory ends up giving more preference to style more than price. Considering thefact they had huge disposable income, so this is the only age category for whichprice takes a backseat in front of style Christ University Institute Of Management
  61. 61. Adelaar Motorcycle Pvt Limited 61 Automotive Aftermarket- A Sneak peek BRANDS PREFERRED BY OUR TGBiking had been a passion in fact more than passion for quite a lot of us andcashing on this aspect the marketers have well established brands .As we say it‟snot just two wheelers but dreams that these brands are selling.Apart from the machinery and durability the style of the bike is equally importantto be able to cater to these bike lovers. From the survey we have come across anumber of brands which are preferred by our TG, some of them are as follows  Dainese  Gmax-  Dms army  Alpinestar helmets(led (riding boots)  Cat lights)  Revi‟it-gloves  Agv  Cortech  SIDI (boots)  Fox (jackets)  Nike jacket  Vega  Tour master  Cramstar-  Studs  Scoyco-gloves (armour jackets,  LS2 (good elbow guards)  Daijya-(value ventilation)  Two brothers for money)  Harley  Gliders  Axo Armour Davidson  Joerocket  DSG  Steel bird  Shoei  Ngk  Wrangler  Ninja  Rjays-  Givi  Yamaha (breathable  Scorpion (good  Astar jacket) graphics)  Field sheerChrist University Institute Of Management
  62. 62. Adelaar Motorcycle Pvt Limited 62 Automotive Aftermarket- A Sneak peek  Knox (leg and  Tourgear  Yoshimura sheen guards)  Motul  Northstar  Spar  Vulcan  Nolan  Shark  MPA  R.S taichi  Shiftracing  Arai  Teknic  Simota  Nerve  HJC  Hein GerickeChrist University Institute Of Management
  63. 63. Adelaar Motorcycle Pvt Limited 63 Automotive Aftermarket- A Sneak peek THE MOST PREFERRED ONE’S…Christ University Institute Of Management
  64. 64. Adelaar Motorcycle Pvt Limited 64 Automotive Aftermarket- A Sneak peek LIFESTYLE OF TG…Christ University Institute Of Management
  65. 65. Adelaar Motorcycle Pvt Limited 65 Automotive Aftermarket- A Sneak peek USAGE OF THE BIKE once in a month 1% once in a fortnight 3% once in a week 13% 2-3 times a week 15% 3-4 times a week 14% For work 54% 0% 10% 20% 30% 40% 50% 60%Usage of the bike signifies the amount of wear tear the bike goes through and thatalso signifies the lifetime of the bike for each individual. The gears and accessoriespart also follow the same trend as of the bike. Their life time also depends on theusage, so the more it gets used the more frequently it will get changed. As 54% of our respondents used their bike for work, so changingof helmets and gloves will be very frequent as they are used most even for shortrides. 42% of our respondents used their bike for leisure riding and for rides whichis approximately 2-3 times a week. Though the frequency of rides are very rare andfew but the distance covered is of same which is covered by respondents who use itfor work. Christ University Institute Of Management
  66. 66. Adelaar Motorcycle Pvt Limited 66 Automotive Aftermarket- A Sneak peek FREQUENCY OF MEETING FELLOW RIDERS only during rides 40% once a month 20% once a week 26% more than 2 times a week 14% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%Frequency of meeting of fellow riders is quite prevalent for a biker‟s lifestylebecause they enjoy each other‟s company, plans out for future rides and it also givesthem an opportunity to break free from regular monotonous corporate life.  40% of our riders make sure to meet their fellow riders at least once a week, because lot of groups makes sure to go for rides on every weekend. So this place can be one stop place to plan out all the rides taking place.  The rest 40% of respondents only make sure to meet their fellow riders only during rides, so before they disperse and take their way to go back home, Adelaar can be the spot where they can get refreshed and start again.  The 20% of the respondents who only meet once in a month can also be targeted because they make sure to make the most out of it, so high spending habit can be expected from this group. Christ University Institute Of Management
  67. 67. Adelaar Motorcycle Pvt Limited 67 Automotive Aftermarket- A Sneak peek ARE YOU HANGING OUT WITH ADELAAR??? 78% 80% 80% 70% 70% 70% 60% 50% 40% 28% 30% 23% 22% 20% 20% 7% 10% 2% 0% 0% 0% 18-23 24-28 29-35 36-55 Yes No May beWhen the respondents were given a choice to hangout with Adelaar these werethe set of following respondents. The whole concept has appealed to the age group of 18-23, as this age group loves to hangout and go for long rides with their friends.70% of respondents has given a positive response but 23% are still in flux. The age group of 24-28 has showed similar kind of response like 18-23 with 70% of respondents giving a positive nod to the concept and 28% of respondents are in a state of flux.Christ University Institute Of Management
  68. 68. Adelaar Motorcycle Pvt Limited 68 Automotive Aftermarket- A Sneak peek The age group of 29-35 has shown a better response to the overall concept of Adelaar because 78% of respondents have shown a positive response which is better than the previous age category. The age group of 36-55 has shown the best response among all the age categories. This age group has shown a huge excitement for this concept because they are exposed to this kind of concept as it is very prevalent in abroad.Christ University Institute Of Management
  69. 69. Adelaar Motorcycle Pvt Limited 69 Automotive Aftermarket- A Sneak peek ARE YOU A MEMBER OF A MOTORCYCLE CLUB??? 18-23 This age group is not so interested to be a part of Yes No Doesnt matter motorcycle clubs because they already had a lot of social 19% commitments because they are already into college life. So only 50% a 50% of respondents are part of 31% this likeminded groups who are really passionate about biking. 24-28 This age group shows same characteristics of the last group Yes No Doesnt matter though they fall in the earning category. As they are just out of their college life, so they are still 20% connected to their existing social 50% life. So only the respondents who 30% are sheer passionate about biking are only a part of these groups.Christ University Institute Of Management
  70. 70. Adelaar Motorcycle Pvt Limited 70 Automotive Aftermarket- A Sneak peek 29-35 This age group is also falls in the earning category, so they are Yes No Doesnt matter also the ones who prefer to be a part of groups which will help them to mingle with likeminded 12% people and share the same kind 14% of passion which they share for motorcycles. 74% 36-55 As this age group is equipped with high disposable income, so they Yes No Doesnt matter are always looking for options from where they can get the value for their money. Social recognition 11% is a big aspect in their life, so 20% being a part of elite motorcycling clubs give them the much 69% required ego boost.Christ University Institute Of Management
  71. 71. Adelaar Motorcycle Pvt Limited 71 Automotive Aftermarket- A Sneak peek VARIOUS CLUBS  Max Torque  Bangalore  Motoroids  Royal Indians Motorcycle  Xkmph  Bangalore Pandhis Club  Gear Heads  Vrangers  Born Riders  Rolling Thunder Trekking Bikers  Bangalore Bikers Motorcycle Group  Xbhp Club  Ashvamedh  Born Mofos  Madras Bulls  Royal Brothers  The Bikerni- Motorcycling  Gods Indias First All Club.  Bangalore CBR Women  Royal Knights 250r Club Motorcycle Motorcycle  Bangalore R15 Association Club Club  Old School  Hungry Riders.  FSR Bikers  Indie Thumpers  BCM Touring  Royal  RD 350 Club.  Born Riders Thumpers  Ninja 250r  KTMC  Rd Dreams Club.  Royal Beasts  Red Liners  Kawasaki Ninja  HOG  Tachoholics 650 Group.  Bullet  Royal Knights Brotherhood  Bike NomadsChrist University Institute Of Management
  72. 72. Adelaar Motorcycle Pvt Limited 72 Automotive Aftermarket- A Sneak peek FAVOURITE HANGOUT SPOTS As a passionate biker it‟s not just limited to the rides, bikers live with their bikes day in and day out. They have their own set of group and friends with whom they wish to socialize go on rides and even gossip as a matter of fact. As a useful insight we could judge their preference in terms of places that they visit. The popularly known HOG group is one gang which hangs out together and plans their rides together and on the similar lines there are many more. Some of the popular places that came out when asked where do they hangout.  Basil‟s garage as a completely chilled out  Ginger tea shop, BTM layout  GTA-ginger tea Adda  Java city, Lavelle road with Tuskar itself there is also a favorite spot.  Airlines hotel.  Ice and spice, Kormangla is a place for the young and the happening and you would definitely find these bikers there.  Besant Nagar beach.  Nice road. Café pascucci,indiranagar is also one of the favorite spot forthem Christ University Institute Of Management
  73. 73. Adelaar Motorcycle Pvt Limited 73 Automotive Aftermarket- A Sneak peek INSIGHTS Ambience When deciding about a place you wish to there are certain requirements which need to be kept in mind. Ambience is definitely an important aspect of it.  Bikers are divided into to two categories i.e. smokers and the non- smokers therefore it is preferred that a smoking and non-smoking zone needs to be maintained.  Relaxing space for sitting and safely keeping your gear parts after a long journey or may be places with shade to have a fresh yet cool ambience would also be preferable.  It should be also treated as or positioned as one stop place for every trip and it should have the perfect ambience to start any long journey.  Music also helps to distress and enjoys so screens with rock music or may be sports channels should also be displayed and played. Location  The preferable location can be near airport road or near areas like Nandi Hills and Mekri Circle which are within a radius of 20-30 km.  A stretch of road (1km with a u-turn) and back (1km for a drag) this will help the riders to check out their new bike and perform some safe stunt.Christ University Institute Of Management
  74. 74. Adelaar Motorcycle Pvt Limited 74 Automotive Aftermarket- A Sneak peek Food  Refreshing drinks and hydrating drinks would be the most preferred by the bikers as after long ride this will help them to hydrate.  A morning breakfasts are something they look forward to after their long journeys or even before starting their long journeys.  Bonfire, bbq-ing, simple accommodation or even tents will do. Miscellaneous  An ad on like drinks and adventure, open music joints with rocks shows can be arranged in order to entertain and hold back the audience for a longer duration of time.  Parking facility for the bikes is a matter of special attention since that is a major reason which the bikers face at a lot of places.  Apart from that a comfortable 15 sitter arrangement and well informed staff including women can add comfort and glamour to the setting.  Also special groups like HOG and Bangalore Pandhis can be given discounts which might make them feel special and they would love to come back to the same place again and again.Christ University Institute Of Management
  75. 75. Adelaar Motorcycle Pvt Limited 75 Automotive Aftermarket- A Sneak peek ZONE 2 EXPERIENCES Zone 2 League-A group of bikers from different areas and groups could be taken into the advisory board so that all the needs and requirements can be taken into consideration and utilized to make the whole experience memorable one.  Sponsored rallies and gatherings- They can duplicate the whole idea of HOG groups and come up with their own rallies and groups.  Campaigns-We can also have campaigns like bike week, races for potential customers to test drive the new bikes.  Diversified accessories-We can also come with a unique range of accessories ,wallets, clothing line, travelling and college bags,  Other customer benefits-Insurance, emergency roadside service, rental arrangements, membership in riding groups, motorcycle magazine subscription can also be considered.Christ University Institute Of Management
  76. 76. Adelaar Motorcycle Pvt Limited 76 Automotive Aftermarket- A Sneak peek GO-TO MARKET STRATEGY FOR 18-23 AND 24-28Christ University Institute Of Management

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