Innovative Product Marketing


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  • Was introduced by Royal Enfield and stopped due to excessive pollution norms in India.
    due to pollution laws, this bike is no longer produced
    motorcycles built by Royal Enfield could be bought with 325 cc single-cylinder diesel engines because diesel fuel was much cheaper than petrol (gasoline) at the time, and of more reliable quality.
    A Saharanpur based company, Sooraj Automobiles produce diesel motorcycles with Royal Enfield gear box fitted with Lombardini 334cc diesel engine, Company advertised fuel efficiency of 80kmpl, and most of them are still in running condition
  • A niche is a more narrowly defined customer group seeking a distinctive mix of benefits within a
    Niche marketers aim to understand their customers’ needs so well that customers willingly pay
    a premium.
  • Will be more expensive than its competitors, but will be known for services.
    This product is well suited for international market also.
    First six service free
  • It is unlikely that steel demand will signifi cantly improve in 2013,
    largely because of the continuing economic crisis in developed
    countries and the structural shift in the Chinese economy.
    Moderate recovery is only expected in 2014–15, although steel
    demand is likely to improve faster in emerging markets. We
    expect by 2015 demand growth to be reaching 3.5%p.a.
  • The combination of a weak global economy and slower growth
    in China led to a decrease in both iron ore and coking coal prices
    during much of 2012. Iron ore prices declined by around 35%
    from highs of almost US$180 per tonne to lows of US$90 per
    tonne — only to exceed US$150 in early 2013.
  • China has moved rapidly up the aluminium consumption to GDP curve as shown in Chart 8. JCP believes the rapid escalation in aluminium consumption will rebase to a lower growth level as Chinese aluminium consumption to GDP trajectory corrects to be more in line with Taiwan and South Korea.
  • With supply expected to exceed demand, few barriers to entry, a flat cost curve and capacity utilisation at around 80%, JCP forecast aluminium prices well under consensus. Our long run forecast for aluminium is 1.05/USD pound. This is captured in chart 9, which depicts our ‘cone of uncertainty’ for aluminium prices to 2040.
  • Fly passion
  • Innovative Product Marketing

    3. 3. History • Was introduced by Royal Enfield and due to pollution laws, this bike is no longer produced • Motorcycles built by Royal Enfield could be bought with 325 cc single-cylinder diesel engines • A Saharanpur based company, Sooraj Automobiles produce diesel motorcycles
    4. 4. SURVEY: Conducted Among 146 Bikers • Which bike do you currently own? (Scooty / City Bikes / Racer / Cruiser) • How much are you ready to pay for a high-end cruiser bike? (75,000 / 1,00,000 / 1,50,000 / 2,00,000+) • Which is the most important aspect of the bike for a long ride? (Comfort / Mileage / Low Maintenance)
    5. 5. Results of the Survey Conducted
    6. 6. Inferences from Survey • India is one of the biggest market for the motorcycles industry • Majority of Indians (especially youngsters) prefer bikes over cars. • Around 85% only care about the model of the bike and not much about the Brand • 70% riders would be interested in diesel bikes • 27% of everyday bikers are ready to spend more than 2 Lakhs INR for a high-end cruiser bike • Major Age Group Target : 24 – 39 These factors suggest that launching a Diesel powered bike
    7. 7. DIESEL BIKE CONCEPTS Diesel Fuel DELHI Fuel Prices • Much cheaper than petrol at the time, and of more reliable quality. • Use of catalytic converter which will help reduce pollution upto 40% BIKE Milage(Km/Ltr) Source : Diesel(Rs/Ltr) FIRE BIRD 50 Royal Enfield 25 - Petrol(Rs/Ltr) Cost Per Km 52.54 - 1.05 72.4 2.9
    8. 8. DIESEL BIKE SPECIFICATIONS ENGINE • Type: liquid cooled, normally aspirated, 584cc (36 cu in) double overhead cam single with four valves per cylinder. • Fuel Injection: Diesel fuel supply is through a special Fuel Injection unit and single injector • Power: 28 bhp at 5500 rpm • Torque: 1500 and 7000 rpm. BRAKES & TYRES •Tyres Fr. •Tyres Rr. •Brakes Front: •Brakes Rear: 100/100 - 19 200/200 - 18 280mm Disc, 2-Piston caliper 153mm Disc ELECTRICALS •Electrical System 12 volt - DC •Battery 12 volt, 14 Ah •Head Lamp 60/55 W, HALOG
    9. 9. Added Advantages • Comfortable even after long hours • Direct Selling (Helpful staff and 5 dealers – No intermediaries) • 2 years service warranty • Auto Start + Kick Start feature
    10. 10. Demand • Non-existent demand — Consumers may be unaware of or uninterested in the product. • Latent demand — Consumers may share a strong need that cannot be satisfied by an existing
    11. 11. Factors affecting Demand • Due to change in the lifestyle of the majority of youth population we are expecting the increase in business of Enigma. • Rising Petrol Prices will create a higher demand for Enigma. • Maintenance cost of Diesel Bikes would be higher as compared to Petrol Bikes
    12. 12. Demand forecasting
    14. 14. Competitors’ Analysis Royal Enfield Harley-Davidson Product Bullet 500cc Fat Bob 500cc Place Two segments: Metropolitans Small Cities North India Price 1,15000Rs-180000Rs 6,00,000Rs-30,00,000Rs Advantage Brand Image Status Symbol Trust Brand Image World Leader Dream Bike Source : AutoCar India
    15. 15. KEY CONSUMER MARKETS (B2C) • Consumer Markets: Developing a superior product, ensuring its availability and backing it with engaging experiences and reliable service. • GOODS, SERVICES and EXPERIENCES are Marketed
    16. 16. Segmentation • NICHE SEGMENT • DEMOGRAPHIC: ▫ Gender ▫ Age ▫ Income • BEHAVIORAL: ▫ User Status ▫ Usage Rate ▫ Attitude Towards the Product
    17. 17. Occupation of the Illiterat Chief Wage e Earner School School SSC up to – 5th to HSC 4th / 9th literate but no formal schooli ng / Some college but not graduate Graduate Post Graduate general / Graduate / Post – Graduate – professional Unskilled E2 E2 E1 D D D D Skilled workers E2 E1 D C C B2 B2 Petty traders E2 D D C C B2 B2 Shop owners D D C B2 B1 A2 A2 Businessm Non en / Industriali 1 – 9 sts with 10 + D C B2 B1 A2 A2 A1 C B2 B2 B1 A2 A1 A1 B1 B1 A2 A2 A1 A1 A1 Self employed D D D B2 B1 A2 A1 Clerical D D D C B2 B1 B1 Supervisory D D C C B2 B1 A2 Officers / Executives C – Junior C C B2 B1 A2 A2 Officers / Executives B1 – Senior B1 B1 B1 A2 A1 A1
    18. 18. • High Income Group (HIG) consumers continue to enlarge and spend over 40% of their monthly income on some of the world's largest luxury brands • Delhi ranks first in spending most on luxury brands followed by Mumbai (2nd), Ahmedabad (3rd), Chandigarh (4th), Kolkata (5th), Bangalore (6th), Chennai (7th) and Dehradun (8th), says DS Rawat, secretary general of ASSOCHAM. • Urban households compose only 9 per cent of the lowest income quintile, but represent the majority (56 per cent) of the top income quintile
    19. 19. Market Targeting • • • • • Super Premium Segment High disposable income Technologically oriented and Status oriented Large potential market :Long distance bike riders Evaluating and Selecting the Market Segments ▫ SINGLE-SEGMENT CONCENTRATION
    20. 20. Market Targeting : POPULATION • Population in the age of 20-35 in Delhi, Haryana and Chandigarh region is 9413661. • Percentage of motorcycle owners is 38.5% & 39.5% in rural and urban respectively Source : Hindustan Times
    21. 21. POSITIONING • Defence Forces • Bike riders who ride for pleasure • Point of parity : Its looks and feel are similar to Harley-Davidson which is the world leader • Point of difference : Engine would be diesel powered and one of its kind
    22. 22. Marketing Mix Product Diesel powered cruiser Bike Added value: comfort and mileage Choice of colour
    23. 23. Price • Four ways to calculate prices: ▫ Cost-plus pricing ▫ Target return pricing ▫ Value-based pricing ▫ Psychological pricing • Various price schemes for military employees. • MoU with PNB: Which will offer motorcycle financing for Enigma bikes at 9% in 1st year and 12% for period of 6 years.
    24. 24. Pricing Methods
    26. 26. Aluminium Consumption Per Capita
    27. 27. JCP Aluminium Price Forecast to 2040 (US cents a pound)
    28. 28. COST PER BIKE (Estimate) S.NO PART 1 ENGINE 2 CHASIS 3 SUSPENSION 4 BRAKE AND BRAKE CALIBRE 5 FREE SERVICING 6 WHEEL RIM 7 TANK 8 MUDGUARD 9 HEADLAMPS 10 SADDLE 11 COLOUR PAINT 12 METER INDICATORS 13 DESIGNER HELMET 14 FRONT FORK 15 SIDE PANEL 16 MIRROR 17 LEVER 18 GEAR BOX 19 BATTERY 20 LABOUR 21 LOGISTICS 22 EXHAUST 23 TYRE TOTAL COST 30,000 24,000 18,000 7,000 10,000 7,500 20,000 3,000 10,000 1,000 10,000 700 5,000 4,500 2,000 1,000 8,000 10,000 3000 16,000 5,000 4,000 5,000 200,000 Expenses (Estimate) Cost 1) Raw Materials 100,000,000 2) Land + Machinery 500,000,000 3) Government Approvals+ Tax 50,000,000 4) Miscellaneous 100,000,000 5) Advertisements + Promotion 100,000,000 TOTAL 85,000,000
    29. 29. Promotion Based on Print and Outdoor advertisements Motorcycles are mostly purchased during warmer months and festival seasons. • • • • • Road Trips Sponsoring ROADIES (1 EPISODE) Feedback from Professional Bikers Radio Competitions Bikes Roaming in Selected Areas in the City • Bike Accessories: Helmet, Jackets, watch etc.
    30. 30. Place ▫ - Showrooms in 3 Cities as a startup : Delhi Chandigarh Ludhiana ▫ Word-of-mouth ▫ Websites, blogs and Facebook page
    31. 31. Possible Strategies • Make alliances with some local bike companies to produce bikes at lower manufacturing cost and get a better margin. • Expand into Foreign Markets • Product Development for younger market
    32. 32. INTENSIVE STRATEGIES • Market Penetration (If we are able to provide customer satisfaction then expand throughout India) • Product Development (Expand the motor cycle segment to younger generation and females) • Market Development (If successful in India then starting new plant in Asian Countries)
    33. 33. Plan • • • • • Test Launch at 3 targeted cities Promotional Event at Buddh International Circuit 6 Free Services and Onsite Services for first 100 buyers Customization as per customer’s demand Achieve a Status Symbol
    34. 34. Sales forecast Month Dec-Feb Mar-May Jun-Aug Income Rs. 12,50,000 Rs. 2,00,00,000 Rs. 3,50,00,000 Blog/Facebook Rs. 30,000 Rs. 30,000 Rs. 30,000 Advertisement Rs. 80,40,000 Rs. 40,60,000 Rs. 20,32,000 Brochure Rs. 0 Rs. 0 Rs. 11,300 Total Expenses Rs. 80,70,000 Rs. 40,90,000 Rs. 20,73,300 Profit/Loss Rs -68,20,000 (Loss) Rs. 1,59,10,000 Rs. 3,29,26,700
    35. 35. Future growth Opportunities • Availability of Quality spare parts • Customization of the Bike according to Rider • Women and young riders are increasingly becoming interested in bikes. • Industry registration of heavyweight motorcycles are increasing
    36. 36. TECHNOLOGY • Computer based inventory • Use of catalytic converter which will help reduce pollution • Technology will also impact design of the Bike • Will be using the tools and technology for Business analysis. • Website:
    37. 37. THANK YOU !