The two-wheeler industry in India is the largest in the world, second only to China. Motorcycles dominate the market with an 81.5% share. Major players like Hero Honda, Bajaj Auto, and TVS Motors utilize aggressive marketing strategies including celebrity endorsements to promote their brands. The future of the industry looks promising with opportunities for growth in rural areas, collaboration with global companies, and investment in research and development.

1. Two Wheeler Industry in India and Integrated Marketing Communication Presented By: Vikas Misar

2. History In 1955, the Indian government needed sturdy and reliable motorcycles for its Army and police to patrol the rugged border highways. The first batch of 350cc Bullet from the Royal Enfield Company of UK were received and assembled at Chennai.

3. Overview India, is the second largest producer of two-wheelers in the world. In the last few years, the Indian two-wheeler industry has seen spectacular growth. The country stands next to China and Japan in terms of production and sales respectively. 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.

4. AUTOMOBILE 2 WHEELER 3 WHEELER PASSENGER VEHICLE COMMERCIAL VEHICLE MOTORCYCLE SCOOTERS SCOOTERETTES MOPEDS I.C.V. M.C.V. H.C.V.

5. Market Size The two-wheeler market in India is the biggest contributor to the automobile industry with a size of Rs.100,000 million. The two-wheeler market in India comprises of 3 types of vehicles, namely motorcycles, scooters, and mopeds. In the two-wheeler segment, according to the report, the motorcycles would clock 11.5 per cent rise during 2004-2007 over its siblings-scooters and mopeds. Scooters sales would decelerate and mopeds would also see the same. Overseas market would present huge opportunities for the two-wheeler makers. The motorcycle market share is about 81.5% of the total two wheeler market in India. Three-fourths of the total exports in the two wheeler automobile industry are made in the motorcycle segment. Exports are made mainly to South East Asian and SAARC nations.

6. Fleet composition of all vehicles Three Wheelers 4% (2.37 million) Cars, Jeeps and Taxies 13% (7.69 million) Buses 1% (0.59 million) Goods Vehicles 5% (2.96 million) Others (Tractors, Trailors and miscellaneous) 6% (3.55 million) Two Wheelers 71% (42 million) Two wheelers Three wheelers Cars,Jeeps & Taxies Buses Goods Vehicles Others (Tractors, Trailors & miscellaneous)

7. Some of the features that deserve attention in respect of the Indian two wheeler segment are as mentioned: The total sale of two wheelers in India has touched a figure of 7.86 million units by March, 2007, up 11.42% from the previous fiscal figures of 7.05 million. Production during the period reached 8.63 million units. The production of two wheelers in India is expected to reach a staggering 17.85 million units by 2011-12, more than double of the current production level. India is likely to export 1.39 million two-wheelers in 2011-12 compared with 590,000 in 2006-07. Total investment for new capacity generation in two-wheeler segment is likely to be more than $2.2 billion (INR10, 000 crore).

8. Number of players Bajaj Auto Hero Honda TVS Motors Yamaha Motors Suzuki Motors Honda Motors Royal Enfield Kinetic LML India Mahindra Two Wheelers

9. Indian 2-Wheeler Market HONDA Motorcycle 50% 30% 13% 4% 1% 2% <1% - <1% - 15% 28% - 2% 46% 9% <1% - - - 82% - - - 8% 10% -

10. Market Share - Motorcycle

11. Top Three Players HERO HONDA BAJAJ AUTO TVS MOTORS

12. Hero Honda Motors Ltd is one of the leading companies in the two-wheeler industry. At present, it is the market leader in the motorcycle segment with around 40% of the market share. The company has emerged as one of the most successful players, much ahead of its competitors an account of its superior and reliable product quality complemented with excellent marketing techniques. The company has been consistently addressing the growing demand for motorcycles and has a cumulative customer base of over 5 million customers, which is expected to reach 6mn mark with the rural and semi-urban segment being the new class of consumers.

13. Company Profile &quot;Hero&quot;, the brand name symbolizing the steely ambition of the Munjal brothers, came into being in the year 1956. From a modest manufacturer of bicycle components in the early 1940's to the world's largest bicycle manufacturer today. Joint Venture between Hero Group and the Honda Motor Company of Japan, has today become the World's single largest two wheeler Company. Started with the initial investment of Rs.55 crores, Hero Honda Motors Limited came into existence on January 19, 1984.

14. Hero Honda offers the following products CD 100 Karizma CD 100 SS Ambition Splendor Ambition 135 Passion Splendor + CBZ Passion Plus CD Dawn CBZ Star

15. Advertising Strategy HHML is an organization, which is known for its innovative & Aggressive Marketing. The advertising budjet is of Rs.120 crores. All the mediums are used extensively, be it print or mass media like T.V & hoardings. HHML also promotes sports in the country. It is also the sponsor of the ICC world Cup 2003 and half of the Indian team represents Hero Honda. Also, advertising is done at a local level by dealers, in which HHML also contributes to help dealer promote the dealership in the local area.

16. Some of the Events Sponsored During the Years 1993 Hero Cup – Five Nation Cricket Tournament. 1999 Masters Golf Championship. 7th Cricket World Cup in England. 2000 NKP Salve Challenger Trophy. Stardust Hero Honda Millennium Honors Award. Masters Golf Championship. 20th Cinema Express Award. 2002 India-England Women's Cricket Series. Masters Golf Championship. Second Indian Television Academy Award. 21st Cinema Express Award. India-England Test Series. First Indian Television Academy Award. 2003 8 th Cricket World Cup in South Africa. 2004 ICC Champions Trophy in England.

17. Brand Ambassadors Indian Cricket team Players: Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh, Zaheer Khan and Sourav Ganguly. Superstar Hrithik Roshan is also a Brand Ambassador who helps to promote company’s &quot;We Care&quot; campaign comprising safety riding, environment and friendliness

18. Some of the famous ads… ‘ Fill it - Shut it - Forget it ’ (Splendor). ‘ We Care ’ campaign. ‘ Hero Honda Dhak Dhak Go ’ (Music Video) ‘ Jet Set Go’ (Karizma) A fighter plane is on a regular sortie when the pilot notices a moving object. Zooming his camera, he captures a bike cruising at high speed. Informing the control tower, the pilot dives in for a closer look. The bike gathers speed and enters a tunnel to beat the fighter aircraft. Reaching the air-base, the rider meshes with the staff as they examine the images... ... of the motorcycle, unaware that its owner is amidst them.

19. Established in 1945, it was incorporated as a trading company. From 1948 till 1959, it imported scooters and three wheelers from Italy and sold them in India. It then obtained a production license in 1959 and struck a technical collaboration with Piaggio of Italy in 1960 and continued with the same for the next two decades. Its collaboration with Piaggio expired in 1971 and since then the Company's scooters and three wheelers are sold under the &quot;Bajaj&quot; brand name. And then entered in Motorcycle market.

20. Bajaj Auto offers the following products CT 100 Avenger Platina Discover Caliber 115 Eliminator Wind 125 Kawasaki Ninja Pulsar 150 KS

21. Advertising Strategy Bajaj Auto is an aggressive advertiser. The advertising Budget of Bajaj Auto is more than Rs.100 Crore. Bajaj has a distinct style of promoting its products, for every product launched there’s a new and fresh advertising strategy, developing the firm-positioning platform. Brand Ambassador : Cine Star of Asia, Jackie Chan.

22. Some of the famous ads… The very first TV Commercial of the Bajaj Discover DTSi (125 cc at that time) in 2004 featured the Cine Star of Asia, Jackie Chan..!! New Bajaj Pulsar DTS-Fi 220, the sountrack in the video plays ‘ Hamara Bajaj’ in its latest avatar..!! Pulsar mania – bike stunts of different range. ‘ The Fastest Indian ’ – New Pulsar 135 Robber robs the bank and disappear within few minutes on bike before cops arrives.

23. Some of the famous ads contd… Chatting merrily, three girls walk by a line of motorbikes. One's dupatta skims over the bikes and then gets stuck... ...making her turn in consternation. She pulls it away slowly to reveal... ... The logo, &quot;Pulsar“. ’ Definitely Male’

24. TVS Motor Company Limited, part of the TVS Group, is one of India's leading two-wheeler manufacturers. With a turnover of over Rs.2800 crores, the Company manufactures a wide range of motorcycles, scooters, mopeds and scooterettes. Little wonder, it boasts of more than 9.5 million happy customers. The year was 1980, was a year to remember for the Indian two-wheeler industry. For it was this year that saw India's first two-seater moped, TVS 50, rolling out on the Indian roads. For some it was freedom to move. With the joint venture with Suzuki Motor Corporation in 1983, TVS-Suzuki became the first Indian company to introduce 100 cc Indo-Japanese motorcycles in September 1984. Through an amicable agreement the two companies parted ways in September 2001.

25. TVS Motors offers the following products Star City Victor GLX Star Sport Fiero F2/FX Jive Apache Centra Flame Victor GL

26. Advertising Strategy The aggressive marketing strategy along with the changed approach to advertisement campaign boosted the demand for the TVS models. Agency created the campaign designs which included print ads, banners, handbills, road show kits, truck floats etc. ‘ Musical Nite’ for those who booked / purchased bikes during the period was organized by the agency.

27. Advertising Strategy contd… ‘Meet Sachin Tendulkar’ Campaign: Lucky draw winners were invited to meet Sachin. Bikes autographed by Sachin were handed over to the winners and they got a chance to interact with the winners.

28. Brand Ambassadors Sachin Tendulkar MS Dhoni Racing Bar unleashed (TVS Apache RTR) Recent Ads

29. Future of Two Wheeler Industry Opportunity, Challenges and Plan Opportunities Rising rural demand. Market penetration of only 37 percent. Collaboration with global firm. Investment in R&D by government. Excise duty cut.

30. Challenges Sustaining the growth rate. Need for innovation – low cost/ hybrid vehicles. Upgrading Indian two-wheeler products. Taking the products to the global market. Capturing Indian as well as global market.

31. Plans Encourage exports. Provide various two-wheeler financing schemes among manufacturers. Open R&D centers. Pressurize government to reduce taxes and duties. Collaborate with global players.

32. Thank you