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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 of Prof. Sreedhara R. Assistant Professor 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. DECLARATIONI, Arijit Saha, hereby declare that the Summer Internship Project report entitledhas been undertaken by me for the award of Master of Business Administration. Ihave completed this study under the guidance of Prof Sreedhara R., Institute of Management, Christ University.I also declare that this project has not been submitted for the award of anyDegree, Diploma, Associateship or Fellowship or any other title in thisUniversity or any other University.Place: Bangalore Arijit SahaDate: 25/06/2012 Register No: 1121025 2|Page
  3. 3. CERTIFICATE This 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. Sreedhara R. Date: 25.06.2012 3|Page
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  5. 5. ACKNOWLEDGEMENTI am indebted to many people who helped me complete this projectreport. First, I thank the Vice-Chancellor Dr. (Fr.) Thomas C. Matthew andPro Vice-Chancellor Dr.(Fr.) Abraham V. M of Christ University for givingme the opportunity to do this project. I thank Fr. Thomas T. V., Director,Christ University Institute of Management and Prof.C.K.T.Chandrasekhara, Head-Administration for their kind support. I thankProf.Raman Sreedhara for his support and guidance during the course ofmy project. I remember him with much gratitude for his patience andmotivation, but for which I could not have submitted this work. I amextremely grateful to the Badarinarayan.R.Garani, Adelaar MotorcyclePrivate Limited, for their invaluable contribution towards conducting thisstudy. I thank my parents for their blessings and constant support, withoutwhich this dissertation would not have seen the light of day. Arijit Saha 5|Page
  9. 9. 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 test bed 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.A whole lot of new entrants are flooding the super bike segment market in Indiaand they have simply changed the way Indians drove their motorbikes. Mileage issomething which doesn‟t hold any relevance to them. Performance is somethingby which they swear by and make sure to get the most out of their machine. Butsomehow in our country biker‟s never got their due recognition or neither owndestination. Keeping this in mind Adelaar has come up with a zone which will bededicated to passionate bikers of this country. There has been a huge gap indemand and supply in gear and accessories market and that gap will be duly filledby Adelaar. So this project will check the market readiness and also segment themarket. 9|Page
  10. 10. 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 of inflation, fuel pricesand interest rates has been the nemesis of Indian automobile industry at large, the2W industry has been the most resilient which has reflected in its healthy growthof 15% (YoY). The growth has been supported by various external and internalfactors attached with the domestic 2W wheeler industry which includes favorabledemographic profile, moderate 2W penetration levels, developed public transportsystem, growing urbanization and expected strong replacement demand, besidemoderate share of financed purchases. ICRA 1expects these strengths, coupled with OEM‟s thrust on exports, toaid the 2W industry to report a volume CAGR of 10-12% over the medium termto reach a size of 21-23 million units (domestic + export) by 2015-16.1,%20Update,%20Feb%202012.pdf 10 | P a g e
  11. 11. Chart-1.1: 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 term: HMCLis currently the clear market leader in the entry segment, enjoying a market shareof close to 70%. The company has a portfolio of six models in the 100cc segmentin the Rs. 35,000-45,000 price band and continues to maintain a dominant marketposition led by its Splendor and Passion series of motorcycles. HMCL‟s strongfranchise, wide distribution network, and regular refurbishments and lineextensions of the Splendor and Passion series have allowed it to protect its turf inthe entry segment on a sustained basis. Earlier, intense price competition andrelatively low profitability in the lower end of the entry segment had promptedBAL (in 2007-08) to diminish its focus on the 100cc segment, and with that itsmarket share dropped to 17% in 2008-09 from 26% in 2006-07. 11 | P a g e
  12. 12. However, 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 segment augurs well for the enrichmentand expansion of the segment. However, the already high rate of penetration inthe urban markets is likely to remain a moderating factor. Increased competitionin this segment is expected to lead to an increase in below-the-line promotions,thereby squeezing profit margins; this may get accentuated further by a likelyincrease in raw material costs in the near term. Among the entry-segmentplayers, HMCL is better placed to meet the anticipated 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 HMCL‟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 HMCL‟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. 12 | P a g e
  13. 13. The executive segment hails its origin to the year 1999 when HMCL 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, HMCL, 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. 13 | P a g e
  14. 14. Outlook for the executive segment:Investment 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.Premium 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 to 14 | P a g e
  15. 15. deliver 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 HMCL 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. Hence, 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.2 15 | P a g e
  16. 16. 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, IBEF 16 | P a g e
  17. 17. Booming rural market: Market penetration is done by exposing theuntapped rural market which consist a base of 720 million consumersacross 627,000 villages.Skilled Manpower: India consists of 2nd largest pool of certifiedprofessionals and also equipped with highest number of engineers in theworld.Rapid urbanization: With continuous level of growth urbanization in Indiais expected to increase up to 35% by 2025. 140 million rural populationsestimated to move to urban areas by 2020. 17 | P a g e
  18. 18. TWO WHEELER AUTOMOTIVE AFTERMARKET 4The Automotive Component Manufacturers Association (ACMA) ‟ 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, 18 | P a g e
  19. 19. COMPANY PROFILEIn the largest bike market in the world, the Indian rider‟s need for a basic meansof commuting is being subsumed in to a new found lifestyle. And the new ageIndian biker? He can‟t get enough.There’s potential: Bike and aftermarket brands are making a beeline for India.There‟s the commuter bike segment, dominated by mature Indian bikemanufacturers; the sports and the luxury segment that also include internationalbrands of repute such as Harley, Ducati, BMW, Hyosung, Suzuki And Honda.With the surge in bike brands, the market for high quality accessories and gear ison the fast trackThere’s opportunity: Adelaar is one of the first companies to recognize theuntapped potential and latent needs of the Indian biking community. Thecompany leverages an early mover advantage in bringing bike accessories, partsand gear retailing in to one seamless experience for the Indian biking enthusiast.There are us: Collectively, the Adelaar founders have logged 400,000 kms onbikes across India- that‟s a little more than the earth‟s distance to the moon.Besides the common love they share for all things „bike‟, they are also seasonedprofessionals in business that span information, technology, retail andconstruction.There’s a store: Adelaar‟s flagship store is located at Bangalore-India‟s buzzingtechnology city- and introduces the country to the world‟s most prolific aftermarket, gear and accessories brands. The 2000 sqft flagship store provides anenvironment that engages patrons and stimulates their imagination as to excitingpossibilities within the world of motorcycling. Hobbyists and enthusiasts can 19 | P a g e
  20. 20. stoke their passion for their bikes and themselves, with an unparalleled range ofproducts.There’s a bright future: Adelaar is set to launch a motorcycle centric ecosystemthat will bring together entire biking culture, in to a thriving oasis of sorts. Thisphenomenal biker‟s destination has been envisioned on an unmatched scale andwill include exciting features like a Bike spa, Custom mod shop, Bike themedBar & grill, Detailing hub. Used bike store and of course a store that stocks thelargest collection of brands in accessories parts and gear in India. 20 | P a g e
  21. 21. 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 pub 21 | P a g e
  22. 22. These four subsections altogether will create a motorcycling ecosystemwhich will gift a memorable experience to every visitor.They have already opened their pilot store in Kasturi Nagar, Bangalorewhich is only dealing in the gear and accessories for the time being. Astime rolls down they will upgrade or shift the store to the main site.Data collection methods: Both the primary and secondary data collectionmethods were considered. The primary data was collected through aquestionnaire designed exclusively for the study. Secondary data was takenfrom Research Papers, Journals, Magazines and Websites.Sample frame: The sample was selected from the respondents residing inBangalore of various age categories owning a high end bike.Sample design: The study was done on a sample size of 200 in Bangaloreby a data collection method through a proper structured questionnaire froma sample size of 450 HNI present in a database given by the companyitself. 80 face to face interviews were done, 120 telephonic interviews and20 interviews were conducted on mail, where the respondents were askedto fill it up online. Overall a method of convenient sampling was used. 22 | P a g e
  23. 23. 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) found 23 | P a g e
  24. 24. educated 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. 24 | P a g e
  25. 25. 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 segmentation5.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.5 25 | P a g e
  26. 26. Makes the marketing effort more efficient and economic- Segmentationalso makes the marketing more efficient and economic. It ensures that themarketing effort is concentrated on selected and well defined segments.After all, for most firms the resource would benefits if its efforts wereconcentrated on selected segments-the ones that match the firm‟s resourcesand are most productive and profitable. 26 | P a g e
  27. 27. 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-Market6 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.6 27 | P a g e
  28. 28. Marketing 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. 28 | P a g e
  29. 29. FINDINGS &ANALYSIS 29 | P a g e
  30. 30. POPULATION SAMPLEThe sample size was 200 due to the factor as maximum of the sample unitswere HNI (High networking individuals) and time also adding up beinganother constraint. The interviews were done by taking prior appointmentsfrom a database of 450 customers who owns high end bikes provided bythe company, where 80 interviews were done in person and 100 were doneon telephone. The rest 20 interviews were done by mail where therespondents were asked to fill up the questionnaire online. 36-55 18-23 20% 22% 29-35 24-28 28% 30%Chart 1.2: Population sample size-200 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 the 30 | P a g e
  31. 31. purchasing decision of any product is also influenced by a lot of otherconstraints which are normally not under their control.24-28 age groups: The respondents of this age group were fragmentedinto this category because it is assumed that at this age most of ourrespondents were an earning member of their family. It is also assumedthat the respondents are not married, so their disposable incomes are onthe higher side. This age also gives you the freedom to express orrealize your dreams as they are backed up by the purchasing power.29-35 age groups: The respondents of this age group were fragmentedinto this category on the basis of assumption that at this age, therespondents have started their family and the disposable income ischannelized towards family building process. It‟s also considered thatthe income level has also grown with time for this age group.36-55 age groups: The respondents of this age group were fragmentedtogether because at this age the disposable income is on the higher side,so the lifestyle will be hugely different from the other age categories. Atthis age, status symbol is also one of the important factors. This agegroup as assumed have higher craving to socialize with the likemindedpeople. Hence number of social outings is also on the higher side. 31 | P a g e
  33. 33. IS THIS YOUR 1ST MOTORCYCLE???CHART 1.3 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% 33 | P a g e
  34. 34. The above data shows that the number of 1st time buyers in two wheelercategory (high end bikes) is continuously decreasing with the increasingage. As the shelf life of motorcycle are assumed to be near about 5 yearswith minimum maintenance, so there has been a tendency observed amongthe respondents to upgrade their bike within that certain timeline and sellof the old one to get the maximum resale value. As the frequency of changing motorcycle increasesit also establishes the fact that the changing of gears and accessories alsogoes hand in hand. So if we can target our customers at young age and bepartner in their motorcycling passion till the time they call it a day, than itwill be beneficial for us. The numbers of new customers are very rare andfew in the higher age category and the majority chunk lie in existing twowheeler owner. So the customer retention should be our main objective. 34 | P a g e
  35. 35. NO OF MOTORCYCLES OWNEDCHART 1.4 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 36-55The above data shows that the pattern is pretty same except the age groupof 29-35 where the respondent owning two motorcycles forms the majoritywith 42%. Apart from that the data scales up to the expectation whererespondents owning more than three motorcycles forms the minority interms of percentage except in the age category of 18-23 where the lowestpercentage is of respondents who exactly own three motorcycles only. So it‟s clearly visible irrespective of the ageapproximately 48% of respondents who were surveyed own more than 1motorcycle and these are the customers who are more into passionatebiking. As the number of motorcycle increases, the maintenance chargesand amount being spent for performance parts will also increases. 35 | P a g e
  36. 36. So in future we can also segregate our customer base with respect to thenumber of two wheelers owned by the customers because the need will bevarying with the number of motorcycle being owned. 36 | P a g e
  37. 37. IMPORTANCE GIVEN TO PERFORMANCE OF MOTORCYCLE CHART 1.5 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. 37 | P a g e
  38. 38. PERFORMANCE INTERPRETD BY OUR TG CHART 1.6 18-23 5% 2% 0% 5% 7%All of the belowIncrease in Engine performance 81%Improved StoppingImproved AccelerationImproved Pick-upImproved MileageAs we all know performance means different to different people, so on thesurvey we also got a varied response when the respondents were asked todecode the word performance with respect to their bike. The majority chunkfocuses on the below attributes, but though a small percentage of 7% of thisage group focuses more on engine performance which is followed by increasein better acceleration and better pick-up. Even this age group doesn‟t fall in theearning category still they are not running after mileage. So overall this agesegment is more into engine performance, pick-up and better acceleration. 38 | P a g e
  39. 39. PERFORMANCE INTERPRETD BY OUR TGCHART 1.7 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. 39 | P a g e
  40. 40. PERFORMANCE INTERPRETD BY OUR TGCHART 1.8 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 also climbed up the ladder of success by having increment in their overall income. So they have also interpreted the performance part same as the earlier age group by 10% going for better engine performance and 7% going for better acceleration. This target segment can be catered and served by offering more products which will enhance their bike‟s engine output and give them a better acceleration. 40 | P a g e
  41. 41. PERFORMANCE INTERPRETD BY OUR TGCHART 1.9 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. 41 | P a g e
  42. 42. INR SPENT FOR PERFORMANCE UPGRADATIONCHAR 1.10 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 the age groups 24-28 and 29-35 are equally distributed in the entirespending bracket except more than 50k, where only 10% of respondents from theage bracket of 29-35 make their presence felt. The age group of 36-55 is the onlygroup which makes their presence felt in entire bracket with a minimum of 18%and a maximum of 28% in the spending bracket of 11k-20k. 42 | P a g e
  43. 43. GEARS &ACCESSORIES 43 | P a g e
  44. 44. USAGE OF RIDING GEARSCHART 1.11 100% 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. 44 | P a g e
  45. 45. RESAONS FOR NOT BUYING THE RESTCHART 1.12 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. 45 | P a g e
  46. 46. GEARS WITH REFLECTIVE PROPERTIESCHART 1.13 62% 60% 31% 14% 16% 14% Helmet Riding Riding Riding Riding None Gloves Boots Jackets PantsReflective and illuminating properties are very important factor which should betaken care of while buying ant riding gear. When the customers were asked aboutreflective properties present in their gear than their response was plotted in theabove graph. The graph clearly shows that helmet and riding jackets are the gearsin which riders expect that it should be equipped with reflective properties. 60%of our respondents make sure that their helmets and jackets are equipped withreflective properties.As the sitting position of a rider exposes the jacket and the helmet the mostduring night driving so this are the ones which should definitely have reflectiveproperties in it. After this two, 31% of the respondents also have these reflectiveproperties in their riding gloves, so overall three gears should be sold withreflective properties for efficient night riding and it can also work as 46 | P a g e
  47. 47. differentiating factor from other brands when Adelaar launches their own rangegears. 47 | P a g e
  48. 48. FREQUENCY OF CHANGING GEARS AND ACCESSORIESCHART 1.14 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. 48 | P a g e
  49. 49. This graph clearly shows us the repeat buying frequency and what is thewaiting time between sales of two same products to the same customer ofdifferent age group. 49 | P a g e
  50. 50. MODE OF PURCHASECHART 1.15 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. 50 | P a g e
  51. 51. As this is also the working 29-35 group, so the online shopping increases and rises to 21%. ButShop Online here also the majority of the pie 11% lies with the local dealer as theyLocal Stores 21% are easily in the reach of the customer and touch and feelOEM-Dealer 21% factor which was missing in thestores 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 andShop Online direct import is getting bigger. 16% 20% This age group can beLocal Stores connected by OEM dealer and local stores because this is theOEM-Dealer 28%stores 36% only age category where the pie for OEM dealer is the biggest.Direct import 51 | P a g e
  52. 52. SPENDING PATTERN FOR GEARS AND ACCESSORIES (18-23) CHART 1.16 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. 52 | P a g e
  53. 53. SPENDING PATTERN FOR GEARS AND ACCESSORIES (24-28) CHART 1.17 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. 53 | P a g e
  54. 54. SPENDING PATTERN FOR GEARS AND ACCESSORIES (29-35)CHART 1.18 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. 54 | P a g e
  55. 55. SPENDING PATTERN FOR GEARS AND ACCESSORIES (36-55)CHART 1.19 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 in 5-10k range with 235 and 25%respectively. It clearly shows that this age group has players in each and everyspending bracket. 55 | P a g e
  56. 56. PREFERENCE GIVEN WHILE SELECTING GEARS..CHART 1.20 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 56 | P a g e
  57. 57. 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 sheer 57 | P a g e
  58. 58.  Knox (leg and  Tourgear  Yoshimura sheen guards)  Motul  Northstar Spar  Vulcan  Nolan Shark  MPA R.S taichi  Shiftracing Arai  Teknic Simota  Nerve HJC  Hein Gericke 58 | P a g e
  59. 59. THE MOST PREFERRED ONE’S… 59 | P a g e
  60. 60. LIFESTYLE OFTARGET GROUP 60 | P a g e
  61. 61. USAGE OF THE BIKECHART 1.21 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. 61 | P a g e
  62. 62. FREQUENCY OF MEETING FELLOW RIDERSCHART 1.22 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. 62 | P a g e
  63. 63. ARE YOU HANGING OUT WITH ADELAAR???CHART 1.23 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 be When the respondents were given a choice to hangout with Adelaar these were the 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. 63 | P a g e
  64. 64. The age group of 29-35 has shown a better response to the overall conceptof Adelaar because 78% of respondents have shown a positive responsewhich is better than the previous age category.The age group of 36-55 has shown the best response among all the agecategories. This age group has shown a huge excitement for this conceptbecause they are exposed to this kind of concept as it is very prevalent inabroad. 64 | P a g e
  65. 65. ARE YOU A MEMBER OF A MOTORCYCLE CLUB???CHART 1.24 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. 65 | P a g e
  66. 66. 29-35 This age group is also falls in the earning category, so they areYes 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 theyYes 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. 66 | P a g e
  67. 67. 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 Nomads 67 | P a g e
  68. 68. 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 for them 68 | P a g e
  69. 69. INSIGHTSAmbienceWhen deciding about a place you wish to there are certain requirements whichneed 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. 69 | P a g e
  70. 70. 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. 70 | P a g e
  71. 71. ZONE 2 EXPERIENCESZone 2 League-A group of bikers from different areas and groups could betaken into the advisory board so that all the needs and requirements can betaken into consideration and utilized to make the whole experience memorableone every biker who steps into our store.  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. 71 | P a g e
  72. 72. GO-TO MARKET STRATEGY FOR 18-23 AND 24-28Go-To market strategy will help this company to take the right product to theright target segment through the right channel for distribution. This strategy willanswer what to sell, how to sell and whom to sell.GEARS AND ACCESSORIES SHOP: Reach: Facebook can be used to reach this target segment because this age group is more into social media. So their presence is very high in today‟s digital world. Every single bikers club has their own existence in Facebook today, so it would be very easy to identify or differentiate out between TG and Non TG. Promotion: A show on radio with a catchy jingle will be apt to promote this concept specially during the evening slot. Listener will be asked to narrate a memory related to their bike and best answer will win some coupon of Adelaar and a free test ride on Harley Davidson. Ads aired in television catering to the parents and wives by making them aware of a proper safety gear which is a must for every rider, this will cater to the fear factor and hence will persuade the rider to buy a proper safety gear. Point of sale: This should be limited to store and (OEM dealer stores +local stores), tie ups needs to be done because more than 50% of respondents preferred to buy their gears from local shops located in J.C Road and OEM dealer stores. 72 | P a g e
  73. 73. CUSTOMIZATIONReach: Tie up with OEM dealers and their respective service stations willgive the much needed visibility to the custom mod shop of Adelaar. Asbikers have a habit to consult their mechanics present in their servicestation of OEM dealers. So they can be the one who can be target topromote the custom mod shop.Promotion: College fest can be a better platform to cater to the cravinggeneration, because today‟s youth wants its individuality, so that theydon‟t get lost in the crowd. A cost effective measure which can draw a lotof aspiring crowd and once they are on road with their customized bikethan they will do word of mouth marketing.Point of sale: It needs to be limited to store only.SERVICE STATIONReach: Facebook and Twitter can be used to reach this target group.Tweets related to what better service can do to your bike and how yourmileage can improve.Conduct a poll in Facebook page that how many riders are satisfied withtheir current servicing.Promotion: Tie up with Castrol/ Exide and conduct a camp for a freecheck up for bikes and making the riders aware what needs to be done tomake it more efficient.Point of sale: Service station will be located in the store and a mobileservice van will also be there which can travel all the way to customer‟sdoorstep and service the vehicle at his place only. 73 | P a g e
  74. 74. PERFORMANCE SHOP: Reach: As the demand for this will be very few because this is made for a niche category, so a one to one marketing can be done to the head of every biker‟s club present in Bangalore and if they are satisfied they will pass down the information to their group members. Promotion: As the purchasing power is limited to 20k annually, so a cost effective way like promoting personally will make more sense by mails and SMS. Point of Sale: As the performance parts are on the heavier side, so it is preferable to be sold in the store or if any client orders than it can be fitted in his bike at his doorstep by charging some minimal amount. PRODUCT LINE:  Jackets  H.I.D  Riding Pants-Rjays  Modified Silencer  Hid  Yoshimura Exhaust  Led Indicators And Tail Light  Knee And Elbow Protectors  Racing Tires- Bridgestone,  Touring Kit Pirelli  K&N Air/Oil Filter  Riding Boots-Sidi, Alpinestar  Off Roading Boots  Saddlebags  Full Leather Racing Suit  Helmets-Agv,Arai  Armored Jacket  Crash Bobbins  Turtle tank bag, saddle bag  Gloves (Cramstar Flux  Guards Gloves)  Knee protector 74 | P a g e
  75. 75.  Riding boots(Sidi) Riding Jacket (Knox,  Aftermarket Exhaust (Akra) Alpinestar, Dainese)  Screaming Eagle Wrap Helmet (Aria. Alpinestar)  Hd Kit Screaming Eagle Filter  Glasses Gloves (Alpinestar)  Back Rest Riding Pants(Agv)  Communication System Detachable Panniers  Steering Dampner Hotbodies Akrapovic,Racefit 75 | P a g e
  76. 76. GO-TO MARKET STRATEGY FOR 28-35 AND 36-55Go-To market strategy will help this company to take the right product to theright target segment through the right channel for distribution. This strategy willanswer what to sell, how to sell and whom to sell.GEARS AND ACCESSORIES SHOP: Reach: Facebook can be used to reach this target segment also because this age group is also into social media7. So their presence is very high in today‟s digital world. Rallies can be sponsored which will help all the bikers come under one roof and that will also give the much required visibility. Promotion: Banners and Billboards can be put on near UB city, Lavelle road, M.G road, Nandi hills. Print ads in auto magazines can also be done. Point of sale: This should be limited to store and online stores, web presence is much required because this age group buys online even if there is no payment gateway than also it will be ok. C.O.D option can be made available for people who are ordering online. Tie up with local store can also be done because approximately 30% of customers shops from there. CUSTOMIZATION Reach: Tie up with OEM dealers and their respective service stations will give the much needed visibility to the custom mod shop of Adelaar. As bikers have a habit to consult their mechanics present in their service station of OEM dealers. So they can be the one who can be target to promote the custom mod shop.7 Assumed that even people of different age groups are also active users of Facebook. 76 | P a g e
  77. 77. Promotion: A bike week can be organized where all the superbike owners can be invited to the store and should be give a chance to show or perform their skills and flaunt what they own and this will give a chance to showcase Adelaar their customized bikes. Point of sale: It needs to be limited to store only. SERVICE STATION Reach: Facebook and Twitter can be used to reach this target group. Tweets related to what better service can do to your bike and how your mileage can improve. Promotion: Print ads in TOI8 and ET will target the right kind of audience and also the ads will cater to masses which will also promote the other units like restaurant and bar. A coupon can be attached with the paper and getting that coupon will help to avail a certain amount of discount on servicing. Point of sale: Service station will be located in the store and a mobile service van will also be there which can travel all the way to customer‟s doorstep and service the vehicle at his place only.8 77 | P a g e
  78. 78. PERFORMANCE SHOP: Reach: As the demand for this will be very few because this is made for a niche category, so a one to one marketing can be done to the head of every biker‟s club present in Bangalore and if they are satisfied they will pass down the information to their group members. Promotion: As the purchasing power is very high, so a tie up with Auto Expo and promoting products through the Expo will a better opportunity. Point of Sale: As the performance parts are on the heavier side, so it is preferable to be sold in the store or if any client orders than it can be fitted in his bike at his doorstep by charging some minimal amount.PRODUCT LINE:  Aftermarket exhaust  Waterproof riding suits (Akra,Yoshi)  Clutch assembly  Screaming eagle wrap  Bionic leg guard  HD kit.  Seat cushion-air hawk  Back rest  Auto tune  Communication system  Preload adjusters  Steering damper  Shock absorbers  Helmets-Arai, Agv, Sparx, Shoei, HJC, Fox,  Adjustable levers  Break lines  After market air filter 78 | P a g e
  79. 79. ALTERNATIVE CUSTOMER SEGMENTATION9:HARD CORE BIKERS: The hard-core bikers need a great selection of gear,and will be disappointed if they arent offered a bargain bin of last years modelgear. The hard-core gear shoppers will be separated from the curious by a lowglass partition. This partition will serve both to absorb the noise of shoppers andeaters, and to separate and maintain the bikers social order. We will host bikerdiscussion groups, with free coffee on Friday and Sat. nights after 7:00 p.m. Thiswill give hard-core bikers an opportunity to exchange stories and relax in ourcafe, away from their nemesis: yuppie tourists.WEEKEND WARRIORS They wont feel excluded from the gear, and will alsopartake of the bargain bin. The warriors will find comfort in the cafe area, wherethey can talk about their pursuits rather than challenge them on the road. Thesepeople can be expected early in the store to have a sip over a beer.THE CURIOUS: They are difficult to gauge. They will flow in and out all day,and are likely to peruse our magazine rack for hours. This customer base is ourmost lucrative, and is most likely to buy an iced espresso and/or beer before orafter their short day hikes.9 BASED ON SECONDARY RESESARCH. 79 | P a g e
  80. 80. SUGGESTIONS: Manufacture own parts and gears with low range as the purchasing power is low which is limited to 15 to 20k annually. A different brand name must be used to sell those low end gears and accessories. Mileage and acceleration both matters, so increasing fuel efficiency is important to them, so products like additives for engine oil can be a perfect product for them. As the frequency of meeting their fellow bike riders is very less, so a tie up with corporate (I.T giants) can be done and Adelaar can be their “Adventure Partner”. Safe riding program can be launched to teach the basic skills require for driving this huge machine on Indian roads. Reference groups can be created by creating aspiring lifestyle around this 36-55 age category. 80 | P a g e
  81. 81. CONCLUSIONAs a concept Adelaar has already strike the jackpot because people have given anoverwhelming response. There has always been a demand for a place which isdedicated to bikers of our country, though the concept is very much inspired fromthe U.S culture. So this sweet spot has been well targeted by Adelaar and they havethis early mover advantage with them. The survey showed that there are potentialcustomers who can afford that kind of lifestyle and also share the same level ofpassion for riding motorcycles. The pilot store is already launched by Adelaar andby the end of this year the whole ecosystem will be inviting Bangaloreans to itsdoorstep.A lot of promotional strategies have been suggested in this report which is inspiredby both primary and secondary research done. 81 | P a g e
  82. 82. BIBLIOGRAPHY Source:ACMA, Sources: „Dreaming with BRICS- The path to 2050‟, Goldman Sachs; NCAER; Morgan Stanley, CRISINFAC, Wikipedia, IBEF,%20Update,%20Feb%2020 12.pdf Sources: Analyzing the state of competition in Indian two wheeler industry research journal-2009 82 | P a g e
  83. 83. QUESTIONNAIRECUSTOMER PROFILE 1. Name: 2. Age 18-23 23-28 29-35 36-55 3. Which bike do you own: 4. Is this is your 1st bike? Yes No (if no than jump to next question) 5. Which one was your last bike? 6. How many bikes do you own? 1 2 3 more than 3PERFORMANCE UPGRADATION 1. How important is “performance” of your Motorcycle? very important unimportant neutral important very important 2. What does “performance” means to you? Improved mileage Improved pick up Improved acceleration Improved stopping Increase in engine performance/output All of the above 3. How much do you spend in performance up gradation annually? 0-5k 6k-10k 10k-20k 20k onwards 83 | P a g e
  84. 84. Gear and protection 1. Do you regularly (city/highway) use protective gear when you ride? . Helmet Riding Gloves Riding Glasses Riding Boots Riding Jackets Riding pants 2. Does any of your gear have high visibility or reflective properties? Helmet Riding Gloves Riding Glasses Riding Boots Riding Jackets Riding pants None 3. Why don’t you buy the rest? Lack of availability Lack of awareness Price factor Not required 4. Which brands do you usually prefer for riding gears and motorcycle accessories? Reason for preference. 1. 2. 3. 4. 5. How often do you change your accessories and gears? Once in a year Once in two year Wait for it to tear up completely. 84 | P a g e