Customised choppers in india

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Marketing Report(Micro/Macro,Competitor Analysis)

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Customised choppers in india

  1. 1. Customized Chopper Bikes ReportSubmitted By: Shivam Bhasin Group: 2ID No. : 1011071 1
  2. 2. Company: Thunder-HocSignifying the strength of a thunder clap and the sleek body of a Hawk (chopped down toHoc). The name signifies strength and extraordinary features that the product (CustomizedChopper Bike) would embrace. The hyphen (-) in between representing the imminence ofrelationship that: We value our customer!Tagline: Chop it, build it, own it!As the product is offering a uniqueness of its own, the tagline “Chop it! Build it! Own it!”signifies the exclusivity while offering customers, the power and right to build and own whatthey deserve!LogoThe logo with circles and shades of tattoos represents: the inventive and creativity that webelieve our team possess. With the intent of providing a strong bonding and offer ourcustomers with the same innovative and creative designs in future as well!About CustomisationBike customization is about making your bike reflect you as an individual. This can be doneby simple bolt-on replacement modifications, or the more advanced custom alloy wheel,custom sound and custom disc brakes, right the way through to major frame and hardwaremodifications such as street-fighters and extended swing-arms etc. Today I want to introduceand identify the availability one simple modification that will affect how you interact withthe bike, as well as make your bike that bit more like your own. This is the beginning of aseries of threads that will identify other bolt-on option that will personalize your bike..... 2
  3. 3. ABSTRACTThe project report has been made after doing an in depth market secondary & primary dataanalysis. On the basis of the research the report has been made for the product „CustomizedChoppers‟. A full-fledged research had been done on the secondary data regarding ourproduct after which we have approached the local market players to understand the sectorwell. We’ve decided upon the target segment which we have to concentrate on afteranalysing the data. Then the strategies were decided upon for selling the product. 3
  4. 4. CONTENTSINTRODUCTION TO SECTOR………….……………………………………………….5COMPETITOR ANALYSIS........................................................................................…...10CONCEPT DEVELOPMENT…………………………………………………………….15PLAN FOR CONCEPT TESTING………………………………………………………..17CONCLUSION……………………………………………………………………………20REFERENCES.……………………………………………………………………………21 4
  5. 5. INTRODUCTION TO THE SECTORIn the last five to six years, in India the two-wheeler market has witnessed a marked shifttowards motorcycles at the expense of scooters. In the urban areas, consumers have come toprefer sturdier bikes to show aggression, fearlessness and courage; a passion to live life onthe edge, to stretch oneself and emerge a winner in any challenge one faces. In the processthe share of motorcycle majority of Indians, especially the youngsters prefer motorbikesrather than cars. Capturing a large share in the two-wheeler industry, bikes and scooters covera major segment. Bikes are considered to be the favorite among the youth generation, as theyhelp in easy commutation. The Indian two-wheelers industry can be broadly classified intothree major segments scooters, motorcycles and mopeds. But now a day, new culture ofcustomized bikes is increasing gradually in urban area of India or in Hyderabad. Hyderabadis an organized market but it’s highly fragmented as far as the suppliers are concerned.Customized bike has been introduced to the market as a tool for passion in the convenientway. Customization of bike is considered as a good way to decorate and designed in a way togive alternative to super bikes Customized bikes designed to allow people to feel comfortwhile they drive on road. There are many types or way of customization now. However,improvements are made from time to time to fix the disadvantages of the previous design.The current trend in the Indian two wheeler segment is on an upward trend as shown by thefigures given in the table below. The growth in the year 2011-12 compared to the previousfinancial year has been 17.5% in this segment. 5
  6. 6. 1) Macro Environment AnalysisThis business targets the youngster to middle aged people with high purchasing capacity andlove for Choppers. India’s population is in the age group 15-59 which comprises of 60% ofthe total population according to the census. Between >15-59 + 60 Year Below 5 years Between 0-15 years years 1991 12.80 37.76 55.58 6.67 2001 10.70 34.33 58.70 6.97 2011 10.10 28.48 63.38 8.14 2016 9.7 27.73 63.33 8.94Income level and consumption has increased significantly in India. The penetration of theIndian bike segment in the metros is 45% and in the rural segment it is 12%. The market forbike at 11 million in rural and 4.4 million in rural shows great untapped market where wefind great opportunity in 1% of the premium customization bike segment that we intend totarget.The financing/banking has also eased since last decade to aid the increase in purchasingcapacity of people. The Bike industry in India is growing at CAGR OF 17.4%. The marketforecast for 2015 in bike sales is $10 billion. Therefore with the growing awareness andincome level people tend to buy goods to suit their preferences with an emphasis onpersonalized products and services. 6
  7. 7. 7
  8. 8. Average purchaser of custom choppers is a married male or Bachelors.Average purchaser has household income of Rs.60000.Over one fourth of the sales ofcustom choppersare to buyers with at least one year ofeducation beyond high school and half by office going.Confidence in economy is directly proportional to the purchasing of consumer items.Some legal problems like 60% tariff on import of parts and various other taxes will cause theprice of the bike to double.Noise pollution and some emission standards might not be up to the level.Due to the entrance of global players(like Harley Davidson) in the Indian automobile sector,technological environment has changed rapidly in India both in terms of product design andinformation about the products to the consumers which directly affect the buying pattern ofthe consumers. However every new technology replaces the old technology ,but also newtechnologies create new markets and opportunities. As a chopper bikes maker, challenges arenot only technical but also commercial to make practical, affordable products. 8
  9. 9. Geographic Demographic Psycographic Behavioural Geographic Cities Income Group:High/Medium Lifestyles: Benifit sought Occasions: Leisure Tier-1 Age:15-59 years Touring Enthusiasts Outdoor- riding,Planning weekend rides Tier-2 Gender: Male Oriented User status : People: Executives,Self Personality Types : Attitude towards product Employed,Teenagers, Enterprenuer Innovators, Achievers :Readiness to buy , Prestige s Associated with the brand2) Micro Environment AnalysisEntry: It is easy to enter the market as there are no big players and the market for the productis unorganized where a huge opportunities lies.Competitors-.Thunder Hoc has three major competitors are Bufana Motors, Mild to WildCustoms and Ali Evolution Chopperswho mainly focuses on the schools colleges andcorporate houses. Ali Evolution Choppers is the onlyfirm which targets everyone frommodification to customization.Suppliers: - As mentioned in earlier reports the Thunder-Hoc mainly focuses on choppers,hence only acquire and use standard and certified motor parts for our customers. We wouldimport machinery for body design from Thailand, Singapore and United States of America.Major engine suppliers are from Delhi and Chennai region and other bike parts are sourcefrom Punjab. Suppliers around the Hyderabad region are highly fragmented.Threat of substitutes: The product we are offering is new as we intend to not only customizebikes but also build it from scratch for the customers, however threat exist due to entry ofplayers like Harley Davidson and SsangYong among other in the cruiser segment. But for thechopper lover the threat of substitute is not significant.Exit: The modification business is not capital extensive but customization is and thereforeexit cost is huge comparatively in Chopper customization business. 9
  10. 10. COMPETITOR ANALYSIS1) Mild 2 Wild CustomsMild 2 Wild custom’s focus is all kind of customization. They built top end choppers.Theyalsolook at the performance upgrading of the bike. So apart from a chopper, they also worksonenhancing and giving new look to the motorcycle. The workshop runs by the guynamedAyan, says “This is not one of those cheap customization shops, this is the realdeal for the passionate youth”.Products offered by them are as follows-:-Performance parts like Holley NOS, Vortech, Superchips, Hypertech, AFE.-Suspension like Dotesh, KYB, Belltech and BDS suspension.-Graphics like Sharpline, illusion graphics, speed stripes and Pro strips-Rims like Motegi, lexani, centre line and Giovanna-Tires like Brigstone, MRF, Fuzion tyres, Uniroyal, Falken tyres.-Light KitsTarget Market:Considering the product and targeting the niche segment, most of ourcustomers would fall under the age group of 18-50 years. Considering a few other factors: 1. Awareness. 2. Spending Power. 3. Passion towards bike (specifically Choppers).Marketing Mix Strategies: It consists of 4Ps:Product, Price, Promotion and Place. It helpstoproducethe desired response in the target market. The following is there Strategy:Product offered by them is Customised Choppers.Price for Customisation ranges from Rs.25000-200000Promotion is done by Social Media, Web Site, and Posters 10
  11. 11. 2) Bufana Motorcycle CustomsBufanaMotercycle Customs is an Hyderabad based custom choppers manufacturercompanyof BufanaMotercycle Customs Bikes and Bikes Parts. BafanaMotercycle Customsoffers awide range of customising services for the Enfield as well as making bolt onparts.They build Choppers from the ground up according to customer needs, so that one canpaint, accessorise, modify as their wish.Products offered by them are as follows-:-Performance parts like NX Nitrous,K&N, Holley NOS, Vortech, ,Hypertech,-Suspension like Air Ride, Koni, Dotesh,Fabtech and BDS suspension.-Graphics like Sharpline, Illusion graphics, speed stripes and Pro strips-Light KitsTarget Market:Considering the product and targeting the niche segment, most of ourcustomers would fall under the age group of 18-40 years. Considering a few other factors: 1. Awareness. 2. Spending Power.Marketing Mix Strategies: It consists of 4Ps: Product, Price, Promotion and Place. Ithelpsto producethe desired response in the target market. The following is there Strategy:Product offered by them is Customised ChoppersPrice for Customisation ranges from Rs.15000-150000Promotion is done throughSocial Media, Web Site,, Bikers group. 11
  12. 12. 3) Ali Evolution ChoppersIt focuses on different type of customisation. They build medium type choppers.Products offered by them are as follows-:-Performance parts like Holley NOS, Vortech, Hypertech-Suspension like Belltech,Dotesh, KYB, and BDS suspension.-Graphics like Sharpline, illusion graphics, speed stripes-Rims like Budnik, Motegi, lexani, FooseTarget Market:Considering the product and targeting the niche segment, most of ourcustomers would fall under the age group of 18-30 years. Considering a few other factors: 1. Awareness. 2. Spending Power.Marketing Mix Strategies: It consists of 4Ps: Product, Price, Promotion and Place. It helpstoproducethe desired response in the target market. The following is there Strategy:Product offered by them is Customised ChoppersPrice for Customisation ranges from Rs.10000-600004) DC DesignsBoutique car designer DilipChhabria, 54, says he has the worlds best job because he is "ableto dream with other peoples money." His Mumbai-based firm, DC Design, has createdluxury cars for the rich and famous worldwide. A graduate of the Art Center College ofDesign in Pasadena, Calif., he honed his skills at General Motors Design Center in Detroitbefore setting out on his own. According to Chhabria, DC Design is the worlds biggestindependent car design firm by volume.The first DC showroom has already opened up in Hyderabad in Banjara Hills Road No 12.The company is known for its innovative designs the latest one being the gold platted andjewel studded TATA Nano which was unveiled at the Auto Expo in Delhi this year. 12
  13. 13. Target Market:The target market for the designers is the rich segment of the society with an average incomeof more than 30 lakhs per annum. This is because the cost of customization and modifyingthe cars is very high and DC is known for its top notch quality. This is also confirmed in aninterview of Mr.Chabaria where he said we design and build cars, vans, high-end buses. Ourniche is really in providing a special application that mainstream manufacturers are not ableto [provide] because they are volume driven.Our business is segregated across two markets. One is the business-to-business segment,where our revenue comes from OEM (original equipment manufacturer) work such asprototyping work or consultancy. We are doing this increasingly for car makers such asRenault, General Motors and Ford.The other part is a B2C (business-to-consumer) business where we execute special projects ormake special vehicles like vans. These are not just for celebrities but also for those who needthem for special purposes. CEOs use these for personal transportation, for traveling withsenior executives from one plant to another; they want vehicles that are fully equipped, likeAir Force One on wheels. We will grow in revenue largely in this segment.What we do is akin to the 1920s when customers bought the chassis and the engine fromautomobile manufacturers and went to coach builders to build their own vehicle bodies.Marketing Mix Strategies:Product and Pricing-The Company is offering a few models in the current showroom inthe city like the DC Avanti which is a super car, which it intends to manufacture in limitededitions for the general public. Along with that it is offering its specialized services in thearea of car customization like the customization of both the interiors and the exteriors of thecar. The price of the car depends on the kind of customization job that is required to be doneon it. The price may range from somewhere Rs. 5 Lakhs to 75 Lakhs.Promotion Channels:Auto shows, Blogs, Magazines and auto journals 13
  14. 14. Age Group 18-22 yrs 23-30 yrs 30-35yrs Above 35yrsSpending Power Upto 10000 10000-40000 40000-100000 Above 100000 14
  15. 15. Concept DevelopmentThe two wheeler segment is divided into basically three segments 100 – 150cc, 150 – 250ccand 250cc above. We intend to target above 250cc and therefore targeting a niche segment.We want to position ourselves in high performance and high quality providing good valueproposition to our customers.Consumer needs and specification is taken as the input for development of this concept. Theneed was felt to provide a platform whereby bikers can customize and built their ownchoppers from scratch displaying independence and fulfilment of their desire to build andown.Observing the change in trend among our customers with growing demand for customizationrather than choosing from a set of standard bikes. Reports in the Overdrive and Auto Indiasuggest a growing interest among bike buyers to splurge in customizing their bikes. Thesetrends have been seen especially in modification of Avenger, Enticer and Royal Enfield.Considering the product and targeting the niche segment, most of our customers would fallunder the age group of 18-50 years. Considering a few other factors: • Awareness. • Spending Power. • Passion towards bike (specifically Choppers).Although, we have Harley Davidson which deals in standardized models and quit a fewplayers in customized bikes. We offering “Customized Chopper Bike” and being one of itskinds in the city. This would stand as a “competitive advantage” for the company.PROMOTION AND MEDIA: Customized Bikes market is majorly an unorganized market inIndia but it is known as blooming cluster, so they need to understand the market segmentinterested in customized bikes and target them through promotion and media. According tothe study of market, the most passionate about customized bikes are the teenagers such as agegroup 18-22(mostly), group 22-40(rank 2), and college students are considered to be the maincustomers. As it is an unorganized sector companies do not spend much on promotion ormedia like their popularity is out due to word of mouth, satisfied customers directly advertiseto their friends, modified bikes parked outside always attracts people. The companies with abrand name in customized bikes segment uses various promotional strategies such as socialmedia (Facebook, Twitter, blogs etc.), print media, television, gaming console many other.They use these media techniques to establish their active fan base to target their audience.These companies keep a low budget for their promotion and media advertisement.Details of Product Offering 15
  16. 16. The following are the products being offered:Covers like Spider Black, Spade, Skull, Flame and Arrow AheadShift LinkageRims: Web, Tritek, Total Chaos, Nasty, Nipple Biter, Kitten Catcher and Freaked OutGraphics and Custom PaintExhaust, Fuel Pipe, Air FilterSuspensions like Belltech,Dotesh, KYBChroming and PowderMarketing Mix Strategies: It consists of 4Ps: Product, Price, Promotion and Place. It helpstoproducethe desired response in the target market. The following is there Strategy:Product offered by them is Customised ChoppersPrice for Customisation ranges from Rs.25000-300000Place/Location: We are setting up our first customized bike centre at Hyderabad, the citybeing the second among doing business by “Doing business 2009 report”, in populationstanding at the 6th position and with its IT sector touching peaks. The city is known as aCyber City of India with more than 1300 reputed companies operating. We thus plan tolaunch our first Thunder-Hoc store in High-tech city. 16
  17. 17. Promotion will be done by advertising like Posters, Brochures and Booklets, Posters etc.,Social Media, Web Site, Magazines like Overdrive, Business World etc., and Events.Plan for Concept Testing 1. To study the Characteristics and features of Choppers. 2. To study this sector which is a powerful & growing sector?OUR OBJECTIVE 1. How we got an idea about the choppers? 2. How does chopper bring value to an entrepreneur’s Business? 3. How does chopper benefit or add value to the customer? 4. What are the problems faced from government policies? 5. What is the demand of this segment? 6. What is the cash involved in each deal? How we got an idea about the choppers? a. Just to do something different! b. Creative ideas that would fetch results! c. Buying branded choppers are expensive andpeople cannot afford it. d. By venturing into these kind of creative areas theywould also earn profits e. We will be able to sell the imported spare parts.How does chopper bring value to an entrepreneur‟s Business? a. The segment we are targeting is a to a very great extent unexplored hence we have a advantage of first mover b. Interested customers are ready to pay the premiumHow does chopper benefit or add value to the customer? a. It’s a status symbol b. Feeling of freedom c. Dream coming true for many passionate peopleBuying branded choppers are expensive and people cannot afford it.The choppers from Harley Davidson and other foreign players are very expensive and thusthere is a need to fill up the gap between the bikes and high priced choppers.What are the problems faced from government policies? a. Government has a number of rules on two wheelers 17
  18. 18. b. Traffic policemen catches - Insurance, Registration Copy, and Pollution CheckChopper chances are considerably high.Noisy Silencers and the fancy looks attracts the Traffic policemen c. According to our survey 60% of the Entrepreneurs say that government policies have impact on their business. d. Bike’s owner needs to go to RTO to get the bike endorsed from the Chief Inspector. They will check the bikes Chassis number and engine number for verification. The Endorsement charges is Rupees 1500 per bike. Fact - None of the Police inspector accepts modified bike and choppers is safe to ride and often they reject them.No proper rules set by - government for modified bikes and choppers and so the owner of the bikes, ride the bikes without getting the endorsement.What is the demand of this segment? a. According to our survey the demand of choppers is high but actual buyers or capability of people willing to buy it is comparatively less. Disposable Income 25000-50000 upto 10000 10000-25000 50000-1 Lac 1 Lac & aboveHOW WE TESTED ITPRIMARY DATA ANALYSIS:Primary data are collected by the investigator conducting the research.The popular ways tocollect primary data consist of surveys, interviews and focus groups, which shows that directrelationship between potential customers and the companies.An online survey was used to conduct the primary data analysis.Questionnaire 18
  19. 19. SECONDARY DATA ANALYSIS:Secondary data, is data collected by someone other than the user. Common sources ofsecondary data for social science include censuses, surveys, organizational records and datacollected through qualitative methodologies or qualitative research.We target college going students and young professionals. As we think people belonging tothis category might not be able to afford high end bikes, thus would go in for bikes rangingfrom 150-250 cc and hence would go in for customization. The city like Hyderabad hasmajority of the population falling in this category thereby showing a huge market. A detailedanalysis of the target customer profile is as follows:As per the Secondary data available: Income group we would like to target is above Rs 25000 per month, which is nearly 20% of the population. The population in the city includes 49% of the people having a family size of 3-4 members, and 15-16% having 2 members. Thus, we would expect a substantial proportion of population(appx 60%) to be our target market. 59.2% of the population falls between the age brackets of 19-35 years. People employed in the private and public sector are around 44%. Hyderabad being a corporate hub, attracts a lot of talent and has many well-to-do professionals working in various sectors. The unmarried males make up 32.9% of the population.Niche marketing:Niche Marketing is all about finding a smaller segment of a market and creating a product ora service for that market. In general a niche is a very targeted and focused market. Lookingat the data, we can say that the market in Hyderabad is huge related to this segment asmajority of the population falls in our targeted category i.e.college going students andyoung professionals.Even though it is a niche market, there is a lot of scope going by the income group and thenumber of present and potential professionals.POLICIES AND THEIR JUSTIFICATIONSTIME: We would ensure that the time lag in our services as compared to that of ourcompetitors is much less making the entire system more efficient and responsive thantheirs .In order to do this we could run surveys enquiring as to how long is the deliveryperiod that others are offering. We could also keep a track as to how the competitorsmanage their procurement, assembling, delivery and more. 19
  20. 20. ConclusionIn a nutshell, this customized chopper fulfils the initial needs and specifications. It is tailoredto enhance the desire and the passion of the user with and it provides variable exercise loadby using magnetic resistance braking system technology. The frame design proved to bestable, strong and durable from the engineering analysis which has been discussed in thereport. Materials have been chosen carefully to give the best characteristics and purposes ofeach component of the bicycle such as stainless steel for the main frame, aluminium alloy forflywheel and so on. Manufacturing processes including permanent mould casting, thermalplastic injection moulding and die casting are selected after considering several factors suchas melting point of the material, dimension tolerance, complexity of shape etc. The magneticresistance mechanism brings several advantages which add to the value of this exercisebicycle compared to ordinary belt/fan exercise bicycle. It solves the noise and mechanicalwear problems, thus provides comfortable ride and longer life cycle time. Besides, the powergenerator eliminates the need of external power supply, which indirectly reduces carbonfootprint. With India GDP growing at on an average of 7-8% the disposable income arebound to rise giving the much needed push for the demand of Customized Chopper. 20
  21. 21. References: 1. http://www.facebook.com/pages/Custom-Bikes/189889237701639 2. http://www.choppercityusa.com/ContactInfo.htm 3. http://www.modbike.co.in/ 4. http://www.unescap.org/esid/psis/population/database/poplaws/law_india/indiaappend 3.htm 5. Two Wheelers Industry: Growth Drivers Intact. ICRA report June 2011. 6. http://www.aponline.gov.in/Apportal/AP%20Govt%20Information/APES%20New/APSES.html 7. http://www.m2w.ca/ 8. http://www.fadaweb.com/two_wheeler_industry.htm 9. http://www.wikihow.com/Customize-a-Bike 10. http://morth.nic.in/index.asp 21

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