Marketing Report(Micro/Macro,Competitor Analysis)

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