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Dealer experience in volume & economy brands: Insights from Indian Two wheeler industry


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Product failures in volume and economy brands are high. In this presentation, we report how dealer experiences affects the Total customer experience of Volume and Economy brands and how companies can …

Product failures in volume and economy brands are high. In this presentation, we report how dealer experiences affects the Total customer experience of Volume and Economy brands and how companies can ensure brand loyalty and purchase intent.

Published in: Business, Automotive
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  • 1. Browne & Mohan Dealer experience in Volume and Economy Brands: insights from Indian Two wheeler industry© Browne & Mohan, 2012, Limited use
  • 2. Indian Two Wheeler Market Purchase Pattern 20% 50% 30% First time buyers Upgrade Second Vehicle India is the second largest producer and manufacturer of two wheelers in the world. It stands next to China in terms of sales and production. From YoY perspective FY2010-11 had a 50% jump compared to FY2009-10. FY2011-12 has been a mixed bag. While Q2 has seen impressive growth, Q3 and Q4 (Estimates) indicate low traction. Long term growth appears stronger with GDP growth above 6%, and many first time buyers emerging across SAC 1, 2 and 3 groups. © Browne & Mohan, 2012, Limited use
  • 3. Indian Two Wheeler Market  125 CC segment is the fastest emerging segment with many new models expected in coming years.  Honda(HMSI)-125cc, Piaggio Vespa LX125, Suzuki 125 CC are expected to be released in FY12-13.  Increased focus on small towns and rural markets and extending reach of finance, particularly to tier II & III centres had a significant impact on growth of market share for Hero Motorcycles.© Browne & Mohan, 2012, Limited use
  • 4. Dealer experience and brand retention In premium brands, priced above average price are brought for the product novelty and image and hence dealer experience becomes manageable because the volumes are low. Volume products are priced at industry average. They are not purchased for exclusive design and features but for VFM advantage. Economy brands are priced below industry average and price is the major differentiator. Many volume or economy brands fail. For example, Enfield Silver plus, BSA Bond, Hero Honda Ambition, Suzuki Heat, Bajaj Saffire, Kinetic 4S etc. Browne & Mohan analyzed how Total customer experience (TCE) at dealer level contributes to brand retention and purchase intension.
  • 5. Total Customer Experience (TCE) analysis: Multi-stage analysis Availability of Information Access On-road experience Search Service Experience Feedback Community Post Evaluation Purchase Dealer walk-in experience Trial experience Purchase Negotiation Formalities, Delivery, Rebates Purchase and payments exhilaration © Browne & Mohan, 2012, Limited use
  • 6. Top negative dealer experiences Test drive experience poorly managed Sales staff not well trained to engage with customers Delivery delays Delivery not celebrated Poor purchase completion formalities experience Reliability of spares, apprehension of theft of petrol Showroom untidy and unorganized
  • 7. TCE score card for a major automotive companyStage Customer experience - Moment of TruthsSearch 1) Information availability on products low 1) Information content 2) Dealer showroom visibility poor limited on mileage, 3) Availability of dealers limited performance (Mumbai/Bangalore) 2) Showrooms accessEvaluation 1) Dealer showroom reception placid 1) Overall dealer showroom 2) Information and purchase assistance experience “indifferent” minimal 2) Trial experience awful 3) Product advise limited or rudimentaryNegotiation 1) Rebates on parts limited 1) Limited experience 2) Delivery commitments iffy 3) Banking/payment support limitedPurchase 1) Formality completion insipid 1) Lacks celebration 2) Purchase exhilaration missing 3) Delivery ??Post Purchase 1) Availability of Service centers 1) Sense of belonging to 2) Parts availability community 3) Reliability l 2) Post-sales experience negative © Browne & Mohan, 2012, Limited use
  • 8. Recommendations1. Dealer physical Dealer level Total Customer Experience (TCE) audit for volume and economy brands are crucial to understand why some products are succeeding and why differences in sales across dealers.2. Standardize customer engagement process, dealer training and showroom standards for volume and economy brands.3. Define and effectively manage Test rides process4. Invest in sales person training5. Manage reliability of spares, and services
  • 9. Thank YouFor any queries, please contact :Srinivas Sawkar157/A, II floor, 10th A MainJayanagar, 1st BlockBangalore. 560011PH: 91-80-2656 5164, 57