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1
Shopper Behavior Among 100-110 cc
segment customers
MTWL- Marketing
Samdish Chumber
Indian Institute of Management, Ahmedabad
2
The heart of marketing is
behavior modification,
and this will remain our
focus.
Jennifer S Nelson,
Global director/global
strategy and insights,
Johnson & Johnson
3
Mapping of customer
behavior while buying
motorcycles
Part 3Part 2Part 1
Task 1
Task 2
Purpose
Task 3
Task 4
Benchmarking of
dealerships
Study of alternate
sales channels
Methodology
Results &
Recommendations
Purpose
Methodology
Results
Recommendations
Purpose
Modalities
Recommendations
Project Details
4
5
What?
Purpose
To understand the
buying process and
shopper behavior of
100-110 cc customers
It is necessary to study
shopper behavior of
customers to improve
marketing communication
Why?
6
Methodology
Exploratory
Study
Confirmatory
Study
Customer
Behavior
 Sample Size-20
 Convenience &
Simple Random
Sampling
 100-110 cc bike
users
 Mumbai and
outside
 Personal and
telephonic
interviews
 Inputs for
questionnaire
 Sample Size-100
 Convenience & Simple
Random Sampling
 Study carried in
Nashik
 Myself administered
questionnaire
 Personal and
telephonic interviews
 Collection of primary
data
 Analysis of
primary data
 Mapping of
shopper behavior
of customers
7
Sequence of
info collection
Influencers
Motivation
Research Carryout
Consultation
Customer
buying
behavior
Mapping of customer behavior
Time taken to decide
Information sources
Importance of
attributes
Key Findings
&
Recommendations
9
“Gadi achi honi chaie , marketing to har chiz ki achi hoti hai.”
“Dealer ko to gadi bechni hai to uski bat ka bharosa nai hai,
jo log pehle se chla rhe hain vhi bta skte hain”
“Hmare gaon mien sab Splendor hi chlate hain is lie maine b
Splendor hi khridi”
“Mujhe parivar valo ne kaha ki Centuro nai bike to risk mat lo par mujhe
baki sab se kuch hat ke chaie tha”
“Hum tractor ke bare mien internet pe dekh rhe the, tbhi hume Centuro ke
bare mien pta chla. Hmare pass Mahindra ka tractor aur gadi hai, is lie
humne socha yehi bike khridenge.”
“Mujhe Shine khridni thi par showroom mien kisi ne mujhe ache se bat ni ki
to maine Bajaj ke showroom pe ja ke usi smay Discover khrid li”
10
Respondent Profile
57%24%
11%
4% 4%
Hero
Bajaj
Mahindra
Honda
TVS
0
5
10
15
20
25
30
<= 20 20-25 25-30 30-35 35-40 40-45 45-50 50-55 >55
3
17
21
27
17
6
4 4
1
Company wise break up
Age-wise break up
11
Location wise profile
Nashik
54%
Chandigarh
6%
Pimplegaon
4%
Sinner
23%
Ojhar
2%
Hoshiarpur
2%
Others
9%
Do people carryout any
sort of research before
buying a bike?
13
Research Carryout
Was any research
carried out before
buying?
Time taken to
decide
Yes
78%
No
22%
65%
10%
21%
4%
Less than 2
weeks
2 weeks to one
month
One to two
months
More than two
months
14
Relative Importance of attributes
0 1 2 0 2 3 0
10
0 3 1
6 20 1 2
1 1 1
1
3
2
2 2
1
10
14
20
8
23
14
3
23
4
20
17
15
4
18
42
41
22
39
35
25
29
20
31
32 28
25
82
42
35
69
35
47
71
35
74
44 48 50
68
Percentage-wise response distribution
Not at all Important Not Important Neutral Important Very Important
15
Relative Importance of attributes
3.76
4.04 4.05 4.11 4.15 4.23 4.23 4.24
4.56 4.59 4.66 4.66 4.82
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Average Rating
5- Very Important 3- Neutral 1- Not at all important
16
People are most concerned about mileage,
availability of spare parts and comfort level before
buying a bike. While price is important, but if the
product is good people don’t mind paying a bit
extra.
17
Reliable sources of information
2.57 2.65
3.09
3.34 3.37
3.50
4.27
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
Average Rating
18
People in this segment do not rely on internet much, word
of mouth via family/ friends is the most reliable source of
information for them.
19
Motivation behind buying a particular bike
0
10
20
30
40
50
60
70
80
Completely disagree
Diagree
Neither agree nor
disagree
Agree
Completely agree
20
Motivation behind buying a particular bike
1.74
3.34 3.36
4.23
4.33
4.55 4.57 4.64
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
Discount/
special offer
on bike
Friends/
Famliy own
the same bike
Seen many
people ridng
the same bike
Heard good
reviews
Rode the bike
and liked it
Trust the
brand
Bike within
budget
Bike Suitable
to needs
Average Rating
21
Enquiry Pre Purchase and During Purchase
84%
96%
70% 70%
40% 38%
15%
43%
13%
68%
6%
2% 4% 4%
16%
11%
61%
42%
46%
5%
Pre Purchase During Purchase
Sequence of collecting information pre purchase
Pre
Purchase
Price
Technical
Specs
Mileage Availability/cost
of spare parts
Quality of
ride
Features Cost of
service
Colors
available
During
Purchase
Service Network
Sequence of collecting information during purchase
Finance Options
Colors Available
24
Sources of information (attribute-wise)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Roadside hoardings
Mechanic
Friends/ family
Dealer-ship visit
Internet
Print Media
TV Ad
Whom do people consult and
who are the major influencers
in decision making?
26
Consultation before buying
59%
46%
79%
37%
24%
10%
Family Mechanic Friends Dealership
Visit
Checked
online reviews
Others (please
specify)
27
Majority of people consult friends, family and
mechanic before buying a bike.
28
Influencers
17.76
15.03
61.61
4.44 2.12
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
Family Peer Group Individual
Choice
Dealership Mechanic
Average Weightage
29
Individual choice plays the most important role in
decision making. Low weightage given to dealers also
indicates that majority of people come to dealerships pre-
decided about the choice of bike.
30
Mode of Payment
54%
46%
Cash
Loan
31
Special Scheme/ Offer Preference
Yes
16%
No
84%
Zero
Interest
loan
0%
Exchange
mela
6%
Discount
/
Promotio
nal event
31%
Festive
Season
offer
44%
Other
19%
Based on customer
responses
Break-up of special
schemes/ offer
32
Important Features
83%
90% 91%
62% 64%
69%
81%
65%
92%
29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Colors
Avalable
Low Fuel
Indicator
Fuel Gauge
(indicates
level of fuel)
Tubeless
tyres
Disc brake Alloy wheels Electric Start Digital
Speedometer
Dipper Others
(please
specify)
Percentage of respondents
Good looks Comfort Level
Soft seat cushion
Flat Seat
Features
Average meter
Indicator buzzer
Central Locking
Anti-theft
Powerful Headlight
Beep for side stand
Safety Measures
Rear Guards as in bullet
Accessories
Side Dickie
Hand Holder for pillion
rider
Wheel Lock
Better Mileage
Other Features mentioned by people
Points to be kept
in mind
35
Brand Communication is not confined to advertisement
only. Communication happens at each touch point with the
customer.
36
Brand matters a lot for the people. People buy a bike only
if they have trust on the brand.
37
Centuro is being bought by people who either already use
Mahindra products or yearn for something new and
different.
Suspension and comfort level
need emphasis in our current
POSM
Brain- washing of mechanics
is necessary at this stage.
Activities at the level of
dealerships have to be
organized for
the same.
Brand Trust needs to be built
through positive word of
mouth
.
Point of Sale Material
Personal experiences of
customers with the product can
be shared as POSM. Videos
featuring customers can also be
run on LCDs.
Mileage board can be put
at dealerships. This will
mention the contact
details of customer and
mileage he/ she is
getting from the product.
A small stand can be
put near the product
which explains
technical
specifications in
brief.
This can be used for new
launches. Vehicle can be put on a
floor mat on which features can be
mentioned
Accessories and bike
related merchandise
can be sold at
Mahindra dealerships
to enhance brand
value.
This will show price
break up for all the
products. Price
comparisons can also
be made with
competition.
Purpose
To identify the best
dealerships in the industry
and benchmark Mahindra
dealerships against them.
Methodology
Step One
o Competition dealerships
were studied in
Mumbai.
o Sales process was
studied.
Step Two
o Parameters for
benchmarking were
decided.
o 100 point scale to rate
dealerships was created.
Step Three
o 14 Dealerships
including Mahindra
were visited in Nashik.
o Mystery shopping was
used to rate dealers.
o Rating was provided to
dealerships.
Criteria for benchmarking
Parameters
used to rate
dealerships
Criteria for benchmarking
Parameters
used to rate
dealerships
Criteria for benchmarking
Parameters
used to rate
dealerships
Criteria for benchmarking
Parameters
used to rate
dealerships
Test Ride
Criteria for benchmarking
Parameters
used to rate
dealerships
Criteria for benchmarking
Parameters
used to rate
dealerships
Criteria for benchmarking
Parameters
used to rate
dealerships
Criteria for benchmarking
Test Ride
Parameters
used to rate
dealerships
51
Ratings of various dealerships
58.925
60.725
55.15
49.025
62.475
48.1
61.15
44.55
46.4 46.4
35.925
43.15
47.725
38.025
0
10
20
30
40
50
60
70
KhushiHonda
RushabhHonda
SachiHonda
Moharir
ShaanHotwheels
AnjaniAuto
ARK
WasanBajaj
MagicTVS
PavaTVS
SpeedSuzuki
KamalHero
ShivangHero
JitendraHero
Honda Yamaha Mahindra Bajaj TVS Suzuki Hero
52
Large differences among Yamaha and Mahindra
dealerships show that quality of dealerships may vary within
a company.
53
Average rating of dealerships (company-wise)
58.27
55.75 54.63
46.40
44.55
42.97
35.93
Honda Yamaha Mahindra TVS Bajaj Hero Suzuki
54
As per average rating, Honda and Yamaha dealerships are
ahead of Mahindra. Honda and Yamaha dealerships can be
considered to be the best in the two wheeler industry.
55
Parameter wise rating of dealerships
0.000
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
Honda
Mahindra
Yamaha
TVS
Bajaj
Hero
Suzuki
56
Mahindra dealerships currently lag in quality of staff and
bike demo as compared to Yamaha and Honda.
57
Parameter wise rating of ARK and Anjani
0
2
4
6
8
10
12
14
16
Showroom Quality of
staff
Sales
Process
Bike Demo Test Ride Post Ride POSM
ARK
Anjani
Recommendations
59
Proper follow-up mechanism is required till the closure of
sales. Providing a good service even after sale is necessary
to built trust among customers.
60
A feedback questionnaire needs to be designed and put at
dealerships for customers who take test ride.
61
One to one customer mapping
 One sales person should deal with the
customer over his/ her entire life cycle.
 Sales person should act as single point of
contact at dealership for the customer.
62
Alternate Sales ChannelAlternate Sales
Channel
Purpose
To understand the functioning of
alternate sales channel.
64
Sales Channel
Customer
65
Alternate Sales Channel
Customer
66
Alternate Sales Channel
Customer
67
ModalitiesSourcing
These people
act as sub
dealers and
source bikes
from main
dealers.
Inventory
They stock
vehicles as per
demand.
Portfolio of
vehicles varies
with season.
PaymentMode
Brokers prefer
to invest in
brands which
have high
turnover. For
other brands,
credit is
preferable.
68
This channel is very important for us as our dealer
network is in nascent stage.
How to improve this sales
channel?
70
Our dealers release bike only after payment and billing.
They are also a bit reluctant to give bikes through this
channel. This discourages brokers to display our bike and
they provide bike on booking only.
71
If credit limit is provided to these brokers then they will
easily keep our bike in display which will help in pushing
our product.
72
Thank You

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Project Presentation

  • 1. 1 Shopper Behavior Among 100-110 cc segment customers MTWL- Marketing Samdish Chumber Indian Institute of Management, Ahmedabad
  • 2. 2 The heart of marketing is behavior modification, and this will remain our focus. Jennifer S Nelson, Global director/global strategy and insights, Johnson & Johnson
  • 3. 3 Mapping of customer behavior while buying motorcycles Part 3Part 2Part 1 Task 1 Task 2 Purpose Task 3 Task 4 Benchmarking of dealerships Study of alternate sales channels Methodology Results & Recommendations Purpose Methodology Results Recommendations Purpose Modalities Recommendations Project Details
  • 4. 4
  • 5. 5 What? Purpose To understand the buying process and shopper behavior of 100-110 cc customers It is necessary to study shopper behavior of customers to improve marketing communication Why?
  • 6. 6 Methodology Exploratory Study Confirmatory Study Customer Behavior  Sample Size-20  Convenience & Simple Random Sampling  100-110 cc bike users  Mumbai and outside  Personal and telephonic interviews  Inputs for questionnaire  Sample Size-100  Convenience & Simple Random Sampling  Study carried in Nashik  Myself administered questionnaire  Personal and telephonic interviews  Collection of primary data  Analysis of primary data  Mapping of shopper behavior of customers
  • 7. 7 Sequence of info collection Influencers Motivation Research Carryout Consultation Customer buying behavior Mapping of customer behavior Time taken to decide Information sources Importance of attributes
  • 9. 9 “Gadi achi honi chaie , marketing to har chiz ki achi hoti hai.” “Dealer ko to gadi bechni hai to uski bat ka bharosa nai hai, jo log pehle se chla rhe hain vhi bta skte hain” “Hmare gaon mien sab Splendor hi chlate hain is lie maine b Splendor hi khridi” “Mujhe parivar valo ne kaha ki Centuro nai bike to risk mat lo par mujhe baki sab se kuch hat ke chaie tha” “Hum tractor ke bare mien internet pe dekh rhe the, tbhi hume Centuro ke bare mien pta chla. Hmare pass Mahindra ka tractor aur gadi hai, is lie humne socha yehi bike khridenge.” “Mujhe Shine khridni thi par showroom mien kisi ne mujhe ache se bat ni ki to maine Bajaj ke showroom pe ja ke usi smay Discover khrid li”
  • 10. 10 Respondent Profile 57%24% 11% 4% 4% Hero Bajaj Mahindra Honda TVS 0 5 10 15 20 25 30 <= 20 20-25 25-30 30-35 35-40 40-45 45-50 50-55 >55 3 17 21 27 17 6 4 4 1 Company wise break up Age-wise break up
  • 12. Do people carryout any sort of research before buying a bike?
  • 13. 13 Research Carryout Was any research carried out before buying? Time taken to decide Yes 78% No 22% 65% 10% 21% 4% Less than 2 weeks 2 weeks to one month One to two months More than two months
  • 14. 14 Relative Importance of attributes 0 1 2 0 2 3 0 10 0 3 1 6 20 1 2 1 1 1 1 3 2 2 2 1 10 14 20 8 23 14 3 23 4 20 17 15 4 18 42 41 22 39 35 25 29 20 31 32 28 25 82 42 35 69 35 47 71 35 74 44 48 50 68 Percentage-wise response distribution Not at all Important Not Important Neutral Important Very Important
  • 15. 15 Relative Importance of attributes 3.76 4.04 4.05 4.11 4.15 4.23 4.23 4.24 4.56 4.59 4.66 4.66 4.82 0.00 1.00 2.00 3.00 4.00 5.00 6.00 Average Rating 5- Very Important 3- Neutral 1- Not at all important
  • 16. 16 People are most concerned about mileage, availability of spare parts and comfort level before buying a bike. While price is important, but if the product is good people don’t mind paying a bit extra.
  • 17. 17 Reliable sources of information 2.57 2.65 3.09 3.34 3.37 3.50 4.27 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 Average Rating
  • 18. 18 People in this segment do not rely on internet much, word of mouth via family/ friends is the most reliable source of information for them.
  • 19. 19 Motivation behind buying a particular bike 0 10 20 30 40 50 60 70 80 Completely disagree Diagree Neither agree nor disagree Agree Completely agree
  • 20. 20 Motivation behind buying a particular bike 1.74 3.34 3.36 4.23 4.33 4.55 4.57 4.64 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 Discount/ special offer on bike Friends/ Famliy own the same bike Seen many people ridng the same bike Heard good reviews Rode the bike and liked it Trust the brand Bike within budget Bike Suitable to needs Average Rating
  • 21. 21 Enquiry Pre Purchase and During Purchase 84% 96% 70% 70% 40% 38% 15% 43% 13% 68% 6% 2% 4% 4% 16% 11% 61% 42% 46% 5% Pre Purchase During Purchase
  • 22. Sequence of collecting information pre purchase Pre Purchase Price Technical Specs Mileage Availability/cost of spare parts Quality of ride Features Cost of service Colors available
  • 23. During Purchase Service Network Sequence of collecting information during purchase Finance Options Colors Available
  • 24. 24 Sources of information (attribute-wise) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Roadside hoardings Mechanic Friends/ family Dealer-ship visit Internet Print Media TV Ad
  • 25. Whom do people consult and who are the major influencers in decision making?
  • 26. 26 Consultation before buying 59% 46% 79% 37% 24% 10% Family Mechanic Friends Dealership Visit Checked online reviews Others (please specify)
  • 27. 27 Majority of people consult friends, family and mechanic before buying a bike.
  • 29. 29 Individual choice plays the most important role in decision making. Low weightage given to dealers also indicates that majority of people come to dealerships pre- decided about the choice of bike.
  • 31. 31 Special Scheme/ Offer Preference Yes 16% No 84% Zero Interest loan 0% Exchange mela 6% Discount / Promotio nal event 31% Festive Season offer 44% Other 19% Based on customer responses Break-up of special schemes/ offer
  • 32. 32 Important Features 83% 90% 91% 62% 64% 69% 81% 65% 92% 29% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Colors Avalable Low Fuel Indicator Fuel Gauge (indicates level of fuel) Tubeless tyres Disc brake Alloy wheels Electric Start Digital Speedometer Dipper Others (please specify) Percentage of respondents
  • 33. Good looks Comfort Level Soft seat cushion Flat Seat Features Average meter Indicator buzzer Central Locking Anti-theft Powerful Headlight Beep for side stand Safety Measures Rear Guards as in bullet Accessories Side Dickie Hand Holder for pillion rider Wheel Lock Better Mileage Other Features mentioned by people
  • 34. Points to be kept in mind
  • 35. 35 Brand Communication is not confined to advertisement only. Communication happens at each touch point with the customer.
  • 36. 36 Brand matters a lot for the people. People buy a bike only if they have trust on the brand.
  • 37. 37 Centuro is being bought by people who either already use Mahindra products or yearn for something new and different.
  • 38. Suspension and comfort level need emphasis in our current POSM Brain- washing of mechanics is necessary at this stage. Activities at the level of dealerships have to be organized for the same. Brand Trust needs to be built through positive word of mouth .
  • 39. Point of Sale Material Personal experiences of customers with the product can be shared as POSM. Videos featuring customers can also be run on LCDs. Mileage board can be put at dealerships. This will mention the contact details of customer and mileage he/ she is getting from the product. A small stand can be put near the product which explains technical specifications in brief. This can be used for new launches. Vehicle can be put on a floor mat on which features can be mentioned Accessories and bike related merchandise can be sold at Mahindra dealerships to enhance brand value. This will show price break up for all the products. Price comparisons can also be made with competition.
  • 40.
  • 41. Purpose To identify the best dealerships in the industry and benchmark Mahindra dealerships against them.
  • 42. Methodology Step One o Competition dealerships were studied in Mumbai. o Sales process was studied. Step Two o Parameters for benchmarking were decided. o 100 point scale to rate dealerships was created. Step Three o 14 Dealerships including Mahindra were visited in Nashik. o Mystery shopping was used to rate dealers. o Rating was provided to dealerships.
  • 46. Criteria for benchmarking Parameters used to rate dealerships Test Ride
  • 50. Criteria for benchmarking Test Ride Parameters used to rate dealerships
  • 51. 51 Ratings of various dealerships 58.925 60.725 55.15 49.025 62.475 48.1 61.15 44.55 46.4 46.4 35.925 43.15 47.725 38.025 0 10 20 30 40 50 60 70 KhushiHonda RushabhHonda SachiHonda Moharir ShaanHotwheels AnjaniAuto ARK WasanBajaj MagicTVS PavaTVS SpeedSuzuki KamalHero ShivangHero JitendraHero Honda Yamaha Mahindra Bajaj TVS Suzuki Hero
  • 52. 52 Large differences among Yamaha and Mahindra dealerships show that quality of dealerships may vary within a company.
  • 53. 53 Average rating of dealerships (company-wise) 58.27 55.75 54.63 46.40 44.55 42.97 35.93 Honda Yamaha Mahindra TVS Bajaj Hero Suzuki
  • 54. 54 As per average rating, Honda and Yamaha dealerships are ahead of Mahindra. Honda and Yamaha dealerships can be considered to be the best in the two wheeler industry.
  • 55. 55 Parameter wise rating of dealerships 0.000 2.000 4.000 6.000 8.000 10.000 12.000 14.000 16.000 Honda Mahindra Yamaha TVS Bajaj Hero Suzuki
  • 56. 56 Mahindra dealerships currently lag in quality of staff and bike demo as compared to Yamaha and Honda.
  • 57. 57 Parameter wise rating of ARK and Anjani 0 2 4 6 8 10 12 14 16 Showroom Quality of staff Sales Process Bike Demo Test Ride Post Ride POSM ARK Anjani
  • 59. 59 Proper follow-up mechanism is required till the closure of sales. Providing a good service even after sale is necessary to built trust among customers.
  • 60. 60 A feedback questionnaire needs to be designed and put at dealerships for customers who take test ride.
  • 61. 61 One to one customer mapping  One sales person should deal with the customer over his/ her entire life cycle.  Sales person should act as single point of contact at dealership for the customer.
  • 63. Purpose To understand the functioning of alternate sales channel.
  • 67. 67 ModalitiesSourcing These people act as sub dealers and source bikes from main dealers. Inventory They stock vehicles as per demand. Portfolio of vehicles varies with season. PaymentMode Brokers prefer to invest in brands which have high turnover. For other brands, credit is preferable.
  • 68. 68 This channel is very important for us as our dealer network is in nascent stage.
  • 69. How to improve this sales channel?
  • 70. 70 Our dealers release bike only after payment and billing. They are also a bit reluctant to give bikes through this channel. This discourages brokers to display our bike and they provide bike on booking only.
  • 71. 71 If credit limit is provided to these brokers then they will easily keep our bike in display which will help in pushing our product.