presentation group 6 section c

8/8/2019 Presentation Group 6 Section C

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Marketing Project

Submitted by

Group 6


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INTRODUCTIONINTRODUCTIONINDUSTRY BACKGROUND

India is the second largest producer of 2 Wheelers inthe worldProduction at 7600801 in 2004-200581.5% of market- Motorbikes

Major Indian Players- Bajaj, Hero Honda, TVSMajor Global Players- Honda, Kawasaki, Suzuki,Yamaha.


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LITERATURE REVIEWLITERATURE REVIEW

y News report- Huge shift in market.

y

India Growth Story- Companies change focus tolure big spenders

y Atul Gupta, V-P (marketing and sales), SuzukiMotorcycle and Scooter India, said: We want tocomplete the range of big bikes in India and willlaunch the Gixxer range before the end of theyear.


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CATEGORYCATEGORYy Different categories- 100cc 125cc, 150-500cc and 500cc and above

y 125cc segment-Bajaj, TVS, and Hero Honda

y 150-500 segment-13.5-15.5 bps, with 8500-10000 rpm, Price-55,000-60,000

y 500cc and above-German BMW and theItalian Ducati, Suzuki Hayabusa, Honda1000RR Fireblade, CBR 1000R and YamahasMT01 and R1.


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BRANDSBRANDS

y

This study is done with a view to assessthe potential of an Indian Brand in the300cc segment. The brand under study isBajaj.


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MARKETING OBJECTIVEMARKETING OBJECTIVE

y

The marketing objective of this projecttherefore is to study the market for Bajaj300 cc bike.


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RESEARCH OBJECTIVERESEARCH OBJECTIVEy To Identify the Competitors

y

Determine the consumers brandpreference

y Estimate price consumers are willing topay and to establish the market segmentfor 300cc bike.


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CONCEPTUA L FRAMEWORKCONCEPTUA L FRAMEWORK

KEY INFORMATION AREAS

y USER PROFILEy AWARENESS OF BRANDSy PURPOSE OF THE PURCHASEy CONSIDERATION SETy BRAND EQUITYy MEETING THE EXPECTATIONSy PRICE


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PROCESSPROCESSy Process of study- Pan India survey,

Respondents from metros, mini metrosand class 1 town

y Collection of Data- Online Questionnaire

y Sampling Technique :Qualitative- from studentsQuantitative- Random Sampling


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VARIABLESVARIABLES

y DEPENDENT VARIAB LE

Intention to purchaseAmount willing to spend on a bike

y INDEPENDENT VARIAB LE

Price range, Additional features, Looks (design),After sales service, Quality & Performance,Status symbol


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DEMOGRAPHIC VARIAB LEDEMOGRAPHIC VARIAB LE

y Namey Gendery Cityy Occupationy

Income per annumy Major expenditure


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QUALITATIVE ANALYSISQUALITATIVE ANALYSIS


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Information AreasInformation Areas

.In-depth interviews

.

Focus group

discussions


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To DetermineTo Determine

Market Segment

Competitors

Customer Brand Preference

Price Willing to be Paid


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FOCUS GR

OUP

FOCUS GR

OUPDIS C USSI O NSDIS C USSI O NS


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Brief on the RespondentsBrief on the Respondentsy Mostly studentsy Age group of 20 30y Mainly consisted of people who have

previously owned a bikey Mixture of people with prior work

experience and freshers.


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Motivators The main motivator for this

group to buy a higher

segment bike is the thrill,

power and the status symbol

associated with the bike.

Associate bikes mainly as a

means of transport.

Brand of the bike does not

matter.

The main motivator for this

group to buy a bike is the

thrill and the power

associated with the bike.

Associate bikes as a part of

their personality.

Brand is as important as the

bike.

Expectations Value for money

Mileage

Performance

Classy

Power

Speed

Thrill

Pickup

Barriers Traffic conditions in the cities

Price

Quality


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Findings of FGDFindings of FGDy Majority of the people interested in bikes

of higher power.y Most reluctant because of the traffic

conditions in the cities.y Confident that this problem could be

improved with developing infrastructure.y Main parameters associated with a bike

are speed, power, style, and pickup.


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ININ--DEPTHDEPTHINTERVIEWSINTERVIEWS


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About the RespondentsAbout the RespondentsF irst interviewee Second interviewee

He is an avid biker, and has a sufficient

amount of knowledge when it comes

to bikes. He currently owns a Bajaj

Pulsar 180cc.

Mileage is not very important to him,

but looks are. He believes that if he is

spending a huge amount for high

end bikes, then it has to look stylish.

He is not much of a bike loving and

just rides them for pleasure.

Mileage is very important to him, and

he feels that even a bike of higher

power should have decent mileage.

He believes that the bikes should look

good.


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CONC LUSIONCONC LUSIONy Customers of highpower bikes are very

conscious when it comes to qualityy They are very careful buyers.y They are not easily swayed by celebrity

endorsements or peer pressure.y The performance of the bike and the easy

availability of the service centers areimportant factors when it comes to bikes.

y

They view these bikes as a strong statussymbol which adds to their personality.y They would like additional features like

mileage but are not very particular about it.


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Quantitative AnalysisQuantitative Analysis


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y Here we identify which attributes areimportant for the category of the studyusing six brands namely-

HondaBajajHondaTVSRoyal EnfieldYamaha.


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Jaccard scores for each of the brands in consideration Jaccard scores for each of the brands in consideration

Ra k TTRIBU TES

J CC RD

SCOR ES

1 Masc li e 0.271

2 Joy of Ri e 0.261

3 P ick Up 0.244

4 Pow er 0.242

5 Top Spee 0.2 37

6 Relia ility 0.228

7 Style 0.226


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y Observations

Rank 1 and 2 are Primary Drivers

The two attributes Masculine and Joy of Ride

are the ones above 0.25 scoreAlthough additional features did not clear cut-off,

their score is considerably high

Hence we can conclude that additional features

are also considered when buying bikes


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STOC

HASTIC

SHARESTOC

HASTIC

SHAREANALYSISANALYSIS


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The analysis has two parts :

Preferred set size of the brand

Stochastic share of the brand


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Preferred set size of the brand

y Collects data regarding the preference of the brands inthe market.

y Process in which respondent has been asked forpreference for the brand from the given choices.

Preferred set size Summation of the response for the Bran

of a brand = ---------------------------------------------------------

Total no of respondents that has a preference for th


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P rticul r All

Pre f ere nc e

Hero

Ho nda

Pre f

Bajaj

Pre f

Ho nda

Pre f TVS Pre f

Roy a l

Enf el d

Pre f

Ya aha

Pre f

T TAL 184 41 88 78 3 99 7 5

Va lid Da a f or

ana lysis 101 17 4 5 34 1 51 36

PREFERED SET SIZ E1.82 2.41 1.96 2.29 3 .00 1.94 2.08


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S tochastic share of the brand

y Data is taken from preferred set size analysisy Used to calculate the stochastic share of the brand

Proportionate market share = % of market calculated earlier-------------------------------------------------------

Preferred set size

Proportionate share of the brand

Stochastic Share = ----------------------------------------------------------------------------

Proportionate share of all the brands in the consideration set


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y Observations

Royal Enfield has the least preferred set size

Bajaj has the preferred set size of 1.96, which

means that the people who prefer Bajaj alsoprefer 0.96 other brands

Also, here the share pattern highlights Royal

Enfield with the maximum share holding.


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y Inference

Royal Enfield could be a leading brand in the

market.

Bajaj is giving very stiff competition to RoyalEnfield.

This analysis emphasizes that Royal Enfield

and Bajaj is the brand with the highest share

of mind of all consumers


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SWO

T ANALYSISSWO

T ANALYSIS


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This analysis is done to find out the relative

advantages or disadvantages of the various

brands with respect to each other.

SWOT SCORE = (Brand Attribute score Attribute Average) (Brand Average Grand A


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We have obtained the following table after calculating the

SWOT scores for various brands and for various attributes .SWOT SCORES

ATTRIBUTES

Hero

HondaBajaj Honda TVS

Royal

EnfieldYamaha

Base All 101 101 101 101 101 101

Prefer

Masculine -3.8 -2.9 -15.1 -3.8 24.1 1.6

Power -0.2 -9.2 -8.5 -0.2 17.8 0.3

Pick Up 4.3 5.1 -0.1 4.3 -18.3 4.7

Style -1.5 -2.6 3.0 -1.5 -1.3 3.9

Top Speed 0.0 -9.1 11.5 0.0 -13.7 11.3

Joy of Ride -0.3 -0.5 2.2 -0.3 8.7 -9.8

Reliability 1.5 19.2 7.0 1.5 -17.2 -12.0

Strength = More than 6

Weakness = Less than-6

Opportunity = From 0 to 6

Threat = From -6 to 0


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T o t a l V a r i a n c e E x p la i n e d

C o m p o n e n t

I n i ti l E i g e n v a l u e s

E x tr a c t io n

u m s o f

q u a r e d

L o a d in g s

R o ta t io n

u m s o f

q u a r e d

L o a d in g s

T o ta l

% o f

V a r ia n c e

C u m u l a t iv e

% T o t a l

% o f

V a r ia n c e

C u m u l a t iv e

% T o t a l

% o f

V a r ia n c e

C u m u l a t iv e

%

1 4 . 5 7 8 3 2 . 7 0 3 3 2 . 7 0 3 4 .5 7 8 3 2 .7 0 3 3 2 . 7 0 3 3 .8 8 5 2 7 . 7 4 9 2 7 . 7 4 9

2 1 . 8 0 1 1 2 . 8 6 5 4 5 . 5 6 8 1 .8 0 1 1 2 .8 6 5 4 5 . 5 6 8 2 .0 2 8 1 4 . 4 8 3 4 2 . 2 3 2

3 1 . 3 5 4 9 . 6 7 4 5 5 . 2 4 1 1 .3 5 4 9 . 6 7 4 5 5 . 2 4 1 1 .7 0 1 1 2 . 1 5 1 5 4 . 3 8 3

4 1 . 1 0 6 7 . 8 9 7 6 3 . 1 3 8 1 .1 0 6 7 . 8 9 7 6 3 . 1 3 8 1 .2 2 6 8 .7 5 5 6 3 . 1 3 8

5 . 9 1 6 6 . 5 4 5 6 9 . 6 8 3

6 . 8 9 8 6 . 4 1 4 7 6 . 0 9 7

7 . 8 4 5 6 . 0 3 7 8 2 . 1 3 3

8 . 5 5 1 3 . 9 3 5 8 6 . 0 6 8

9 . 4 6 3 3 . 3 0 6 8 9 . 3 7 4

1 0 . 3 8 5 2 . 7 5 2 9 2 . 1 2 6

1 1 . 3 3 8 2 . 4 1 4 9 4 . 5 4 0

1 2

. 3 0 8 2 . 2 0 2 9 6 . 7 4 2

1 3

. 2 4 2 1 . 7 2 5 9 8 . 4 6 7

1 4 . 2 1 5 1 . 5 3 3 1 0 0 . 0 0 0


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y The four factors:

Technical specificationsx Mileage, Pickup, Comfort ability, Maneuverability

Physical Specificationsx Ground clearance and tire width

Financial factorsx Initial purchase price, financing options, resale price

Other incentivesx Discounts & free goodies and attractive colors


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Th ank you

presentation group 6 section c

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