Product failures in volume and economy brands are high. In this presentation, we report how dealer experiences affects the Total customer experience of Volume and Economy brands and how companies can ensure brand loyalty and purchase intent.

1. Browne & Mohan
Dealer experience in
Volume and Economy
Brands: insights from Indian
Two wheeler industry
© Browne & Mohan, 2012, Limited use

2. Indian Two Wheeler Market
Purchase Pattern
20%
50%
30%
First time buyers Upgrade Second Vehicle
 India is the second largest producer and manufacturer of two wheelers in the world. It
stands next to China in terms of sales and production.
 From YoY perspective FY2010-11 had a 50% jump compared to FY2009-10. FY2011-12 has
been a mixed bag. While Q2 has seen impressive growth, Q3 and Q4 (Estimates) indicate
low traction.
 Long term growth appears stronger with GDP growth above 6%, and many first time buyers
emerging across SAC 1, 2 and 3 groups.
© Browne & Mohan, 2012, Limited use

3. Indian Two Wheeler Market
 125 CC segment is the
fastest emerging segment
with many new models
expected in coming years.
 Honda(HMSI)-125cc,
Piaggio Vespa LX125, Suzuki
125 CC are expected to be
released in FY12-13.
 Increased focus on small
towns and rural markets
and extending reach of
finance, particularly to tier
II & III centres had a
significant impact on
growth of market share for
Hero Motorcycles.
© Browne & Mohan, 2012, Limited use

4. Dealer experience and brand retention
 In premium brands, priced above average price are brought for the product novelty
and image and hence dealer experience becomes manageable because the volumes
are low.
 Volume products are priced at industry average. They are not purchased for
exclusive design and features but for VFM advantage.
 Economy brands are priced below industry average and price is the major
differentiator.
 Many volume or economy brands fail. For example, Enfield Silver plus, BSA Bond,
Hero Honda Ambition, Suzuki Heat, Bajaj Saffire, Kinetic 4S etc.
 Browne & Mohan analyzed how Total customer experience (TCE) at dealer level
contributes to brand retention and purchase intension.

5. Total Customer Experience (TCE) analysis: Multi-stage analysis
Availability of
Information
Access
On-road experience Search
Service Experience
Feedback
Community
Post
Evaluation
Purchase
Dealer walk-in
experience
Trial experience
Purchase Negotiation
Formalities,
Delivery, Rebates
Purchase
and payments
exhilaration
© Browne & Mohan, 2012, Limited use

6. Top negative dealer experiences
 Test drive experience poorly managed
 Sales staff not well trained to engage with customers
 Delivery delays
 Delivery not celebrated
 Poor purchase completion formalities experience
 Reliability of spares, apprehension of theft of petrol
 Showroom untidy and unorganized

7. TCE score card for a major automotive company
Stage Customer experience - Moment of Truths
Search 1) Information availability on products low 1) Information content
2) Dealer showroom visibility poor limited on mileage,
3) Availability of dealers limited performance
(Mumbai/Bangalore) 2) Showrooms access
Evaluation 1) Dealer showroom reception placid 1) Overall dealer showroom
2) Information and purchase assistance experience “indifferent”
minimal 2) Trial experience awful
3) Product advise limited or rudimentary
Negotiation 1) Rebates on parts limited 1) Limited experience
2) Delivery commitments iffy
3) Banking/payment support limited
Purchase 1) Formality completion insipid 1) Lacks celebration
2) Purchase exhilaration missing
3) Delivery ??
Post Purchase 1) Availability of Service centers 1) Sense of belonging to
2) Parts availability community
3) Reliability l 2) Post-sales experience
negative
© Browne & Mohan, 2012, Limited use

8. Recommendations
1. Dealer physical Dealer level Total Customer Experience (TCE) audit for volume and
economy brands are crucial to understand why some products are succeeding and
why differences in sales across dealers.
2. Standardize customer engagement process, dealer training and showroom
standards for volume and economy brands.
3. Define and effectively manage Test rides process
4. Invest in sales person training
5. Manage reliability of spares, and services

9. Thank You
For any queries, please contact :
Srinivas Sawkar
157/A, II floor, 10th A Main
Jayanagar, 1st Block
Bangalore. 560011
PH: 91-80-2656 5164, 40951170
ssawkar@browneandmohan.com
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