Marketing research

Submission 3

Topic: Motor Bike

Group 4

Section A

Submitted to

Dr. M R Suresh

Professor Marketing

Submitted by

18029 Vasudha Dalmia

18027 Trilochan Mohanta
18060 Shourya Chatterjee
18056 Nitesh Tyagi
18032 Amitabh Pathak
18063 Sudarshan R N
18061 Skanda Narasimha M A

Date of submission: March 11, 2019

Table of Contents
Marketing research Submission 3 ....................................................................................................1
Topic: Motor Bike ............................................................................................................................1
Background ..........................................................................................................................................1
Sub-Segmentation ............................................................................................................................2
Sub-Segmentation of Motor Cycles on Basis of Pricing..................................................................2
Sub-Segmentation of Motor Cycles on Basis of Power ...................................................................2
Sub-Segmentation of Motor Cycles on Basis of Mileage ................................................................2
Typical specifications of the three major segments of motorcycles in India ...................................3
Product .............................................................................................................................................5
Price..................................................................................................................................................5
Place .................................................................................................................................................6
Promotion .........................................................................................................................................6
Working definition of the Motorbike .................................................................................................10
Decision Making Context ..................................................................................................................10
Research Purpose ...............................................................................................................................10
Scope of study ....................................................................................................................................10
Research users ....................................................................................................................................11
Research Boundary ............................................................................................................................11
Research objective .............................................................................................................................11
Research question ..............................................................................................................................11
Hypothesis..........................................................................................................................................11
Research design .................................................................................................................................13
Research Respondents .......................................................................................................................13
Sampling ............................................................................................................................................13
Define the sample population. ........................................................................................................13
What type of contact options are you using? .................................................................................13
IRP Table ...........................................................................................................................................14
Data analysis ......................................................................................................................................16
Questionnaire .....................................................................................................................................21

i
Background
The two-wheeler industry has been going steadily over the years all over the world. India is not
an exception for that. Today India is the second largest manufactures of two wheelers in the
world. It stands next only to Japan and China in terms of number of two wheelers produced
and sold.
Until 1990 geared scooters dominated the two wheelers market so much so that their sales
equaled the combined sales of Motor cycles and Mopeds. Today the customer preferences
have shifted from geared scooters to motorcycles and to an extent to the premium end motor
cycles. Cutting down on weight of the vehicles is of top priority for many manufacturers as it
helps in achieving efficient running and allows customer in comfortable and economical spend
ing on the motorcycles. Motorcycles are gaining importance in terms of primary mode of
transport across the world. Already established brands strategize and market aggressively in
retaining customer loyalty. Companies that have already enjoyed successful campaigns benefit
enormously for the engagement with the prospective customer they have developed over mar-
keting. With introducing new segments for various demographics, various age groups with
variety of motorcycles models, companies are gaining incredibly. Motorcycle industry gains
revenues up to billions of dollars per year with the prediction of increased CAGR every year.
The main key players who are dealing in this sector are Hero Honda, Bajaj, Yamaha, Honda,
and TVS.
The graph below shows the sale of motorbikes in India from 2010 to 2018 in units.

1
Segment analysis
Marketers provide a range of product or services choices to meet diverse consumer interests,
consumers are satisfied, and their overall happiness, satisfaction and quality of life are ulti-
mately enhanced. Hence market segmentation is a positive force for both consumers and mar-
keters alike.
Top two-wheeler manufacturers in India: 2.01 Crore two-wheelers sold in India, Market share
analysis of world’s largest two-wheeler market, India is the world’s largest two-wheeler mar-
ket. Motorcycles segment saw a total domestic sale of over 1.26 crore. As per SIAM report,
India has 11 motorcycle manufacturers. Motorcycles contributed to 62.4 percent of the total
sales of two wheelers in 2017. Hero MotoCorp also the world’s largest two-wheeler manufac-
turer has continued to be the leader in the Indian two-wheeler industry by selling over 73.82
lakh motorcycles in the Indian market.

Sub-Segmentation
The Indian automotive industry has sub-segmented the motorcycle in terms of Vehicle pricing,
power and mileage. The sub-segments, Vehicle pricing and power is directly proportional, but
mileage is inversely proportional

Sub-Segmentation of Motor Cycles on Basis of Pricing

Economy: Priced at Rs. 36,000 – Rs. 50,000
Executive: Priced at Rs. 50,000- Rs. 80,000
Premium: Priced at Rs.80,000 and above

Sub-Segmentation of Motor Cycles on Basis of Power

Economy: 100-110 cc
Executive: 125+cc
Premium: 150 cc

Sub-Segmentation of Motor Cycles on Basis of Mileage

Economy: 55-65 Km/l
Executive: 50-55 Km/l Premi-
um: 45-55Km/l Economy

2
 Typical specifications of the three major segments of motorcycles in India

Economy Premium Gearless Step

Engine Capacity (cm3) 100-125 >150 90-125
Posture Upright Leaning forward Upright
Top Speeds (kmph) 100 >120 90
Power (bhp) 9 to 12 >14 7 to 10

Features Of Mysore Motorbike Market

A Bit of History

During the mid 50’s, the Indian Government stopped the import of cars and bikes. However, as-
sembling foreign machines by domestic companies was allowed. That prompted Rustom Irani, the
country agent of Jawa in Mumbai, to set up his production unit, with his brother, collaborating with
the Czech company Jawa.

The Czech bikes had, meanwhile, also found their way into the heart of none other than the Mysore
King Jayachamaraja Wadiyar, as the bikes had a fearsome reputation on international racing cir-
cuits. As soon as he heard that the bikes were being imported from the Czech Republic, he insisted
that they start an engineering industry in Mysore.

So, in 1961, the Maharaja himself inaugurated the Ideal Jawa India Ltd factory and insisted that the
company establish itself in Yadavgiri. The Maharaja and the two siblings, Mr Rustom Irani and Mr
Farrokh K Irani, set up the factory over 25 acres of land, in the Yadavgiri industrial area. The facto-
ry had an initial investment of Rs 51 lakh in 1961, and the Maharaja himself was one of the stake-
holders. Production began in earnest after the company obtained a license and a permit to manufac-
3
ture around 42,000 bikes a year. Most of the material had to be imported, and the company had
2200 workers on its rolls. At that time, the production capacity of the factory was around 130 bikes
a day.

But in a few years, the bikes faced serious competition when the Government of India permitted
Japanese motorcycle manufacturers like Honda, Suzuki, Yamaha and Kawasaki to enter the market.
After a steady decline through the 80’s, production of the bike stopped in 1990, leaving loyalists
disheartened. After the last Yezdi rolled off the assembly line, the Ideal Jawa factory closed its
doors and consequently, an iconic chapter in Indian motorcycling history

Current Situation
 The Bajaj V15 seems to be dying a slow death in the Mysore market with the V12 being
apparently discontinued. This is one motorcycle platform with which Bajaj got its adver-
tising spot on but it hasn’t translated to sales numbers.

 The Duke 250 with its glaring lack of ABS continues to be stuck in no mans land. Bajaj
KTM obviously didn’t want the D250 to cannibalize sales of the more expensive and dare
I say, less practical 390, and hence kept the all important ABS off the options list.

 Hero has dispatched 17 + 12 units of the Karizma in Mysore in the last 2 months. Market
analysts believe these must be display bikes and in line with the news that the ZMR has
been relaunched.

 Honda pushed an amazing 14 Goldwings in Mysore in one month

 Kawasaki's numbers got a nice little bump with dispatches of the N400 and N1000. In the
future the N300 and ZX10R will contribute to healthier sales figures in the Mysore Motor-
bike market .

 The TVS N Torq seems to be picking up steam in Mysore but the much lauded RR310
seems to be losing its momentum.

4
 Some of the highly popular bike brands in Mysore are :

Royal Enfield , KTM ,Yamaha, Hero, Bajaj, TVS, Honda.

While some of the popular models of bikes in Mysore include:

R15 V3.0, FZ S V2.0 FI, Splendor Plus, HF Deluxe i3s, Super Splendor, Pulsar 150, Forty Two,
Radeon, Apache RTR 160 4V, CB Shine SP.

4 P Analysis
Product
Standard- Focuses on basic cost-effective model, has good fuel efficiency (65-70kmpl)
Deluxe – Simple, sober styling with good fuel efficiency (50-65 kmpl)
Sports- Combination of decent fuel efficiency with decent pickup.It offers top speed of around
120- 200 km/hr.
Cruiser- Standing apart from the crowd with typical and extraordinary fuel efficiency (30+-40
kmpl). It emphasis on power and fuel. Some models are Royal Enfield Thunderbird, Harley
Davidson, Bajaj Avenger.

Price
Some famous models of bikes with different price range are shown below-
 30K- 60K: Bajaj Discover, Yamaha YBR, Suzuki Hayate
 60K- 1L: Bajaj Pulsar, Honda CB Unicorn Dazzler, Royal Enfield Bullet 350, Apache
ATR, Hero Moto Corp Karizma
 1L- 5L: Royal Enfield Bullet Electra, Royal Enfield Classic, Yamaha

 >5L: Harley Davidson XL883 and others, Yamaha VMX, Ducati Superbikes

5
Place

Promotion
Some of the brands and their promotion staretgies are explained below-
Royal Enfeild
 Unique thump sound
 Flagship product was Bullet initially and currently Classic 350
 Power and royalty
 Promotes cult culture through social networking
 Organises leisure and adventure trips
Bajaj
 Pulsar is the flagship product
 Feel like God : Cruiser segment
 Easy financing options
 “Humara Bajaj” compaign

6
4 Ps of Competitor
Going by the sales trends in Mysore Motorbike Market we have found Royal Enfield to be
the top competitor

Royal Enfield:

Product:

Royal Enfield is an Indian company of British origins. It is a public company that deals in two-
wheelers and is associated with the automotive industry. Vehicles related to this brand are popular
for rugged looks, matchless stability and sheer power. The brand has been a favorite amongst Po-
lice and Army personnel. Royal Enfield was founded in the year 1909 and merged with Madras
Motors in the year 1955. Currently, it is a subsidiary of its Indian parent company Eicher Motors
Limited. Royal Enfield is associated with manufacturing and marketing of motorcycles as it deals
in the automobile sector. It started its operations as a manufacturer of motorcycles for Indian Ar-
my. It is also involved in producing lawnmowers, stationary engines, bicycles and rifles. Some of
its well-known models are as follows:

Standard Street
 Bullet Electra 5S
 Bullet 350
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  Bullet Machismo 500

Retro Street
 Classic 500
 Classic Battle Green
 Classic Chrome
 Classic Squadron Blue
 Classic 350
 Classic Desert Storm

Cruiser
 Thunderbird 500
 Thunderbird 300

Café Racer
 Continental GT

Royal Enfield Himalayan

Price
Royal Enfield comes up with a bike which is more demanded by the younger generations. So
Royal Enfield focused on the bike explorers and moderately aged youths who love to catch up
with the new hard style bikes and focuses more on quality then the price. So with this Royal En-
field follows a premium pricing strategy in its marketing mix by delivering its customers a high
quality products which are worth the value. With the goal as less of more Royal Enfield manufac-
turers less number of models but each one of them is of high quality which helps them in offering
a capable and stylish product under its brand to their users who whole heartedly accept the product
regardless of premium price. After the GST prices Royal Enfield has adopted a different strategy
by further diminishing the prices of its least popular bikes.

Place

Royal Enfield whose central manufacturing plant is based in Chennai is now operating in more
than 50 nations all over the world. Currently Royal Enfield’s distributors who are working for dif-
ferent exports markets themselves appoint dealers in various locations who finally run the multi
brand outlets. With a new assembling plant opened in Chennai, Royal Enfield is able to tackle the
problems of product shortage and they easily export the products to all the nations through ship
route. Even after this there are few nations where shipping is not that easy like Brazil due to vari-
8
 ous policies so Royal Enfield is looking to open local assembly and manufacturing plants. Royal
Enfield has a vast and strong distribution network which incorporates the goals of merchants and
dealers so that customer needs are satisfied without any issue. Royal Enfield targets both urban
and rural consumers in India with its more than 350 dealership outlets. However urban consumers
are favored a little mores seeing the past purchase records and youngsters preference who are their
main consumers.

Promotion

Royal Enfield has always focused on a holistic and complete marketing approach. To increase the
volume of bikes sold, Royal Enfield has decided to focus more on the consumers need rather than
engineering. They launch what consumer wanted so as to increase the visibility of their products
to a larger audience. Seeing that their prime consumers are middle aged man who are more in-
clined to the digital technology so Royal Enfield focuses more on digital marketing i.e. by launch-
ing various online campaigns on different social media sites like Facebook, twitter, Instagram etc.
It also participates in various shows or deal with various TV series in order to increase visibility of
products. Royal Enfield’s promotions are also seen by traditional way that is through TV, news-
paper, magazines, flyers, boards etc. Hence, this concludes the Royal Enfield marketing mix.

Present Karnataka Market and Mysore

Yezdi motorcycles has humble beginnings, in Mysuru, Karnataka in 1960s
Currently, the Royal Enfield Classic is finding many takers across the country, India's IT capital
'Bengaluru' has taken the fancy of the adventure tourer a bit more than other cities. The bike
maker recently revealed that at least one in four Himalayans are sold in Karnataka. So, out of
the total 4000 units of the adventure tourer sold in the country, at least 1000 units were sold in
the South Indian state itself.
Given the popularity in the state, Royal Enfield will also be expanding its presence across
Karnataka and plans to add 8 more dealerships by the end of the current fiscal. The company
currently operates out of 48 outlets in the state. In fact, Karnataka is the second largest market
for RE in the country after Maharashtra.
The number of dealers were found in Mysore market as listed below-

9
Sova Motors
KTM Central Mysore
Scarlet Yamaha Pvt Ltd
Popular Motor Corpra-
tion
Hero Motocop
Sono Wheels
Heritage Honda
Palace Honda
Phoenix Suzuki

Working definition of the Motorbike

A motorcycle, often called a bike, motorbike, or cycle, is a two- or three-wheeled motor vehi-
cle. Motorcycle design varies greatly to suit a range of different purposes: long distance travel,
commuting, cruising, sport including racing, and off-road riding.
Technical and industry: A motorcycle is a means of transport that has two wheels. It is driven
by an engine or electric motors and can take up to two passengers at a time. it fits in with all
the definitions of an automobile.
Dictionary: A two-wheeled vehicle that is powered by a motor and has no pedals.

Decision Making Context

ZTR Co wants to launch a new model, Admire 350 in the cruiser segment of motorbikes.

Research Purpose
Clarity critical – To avoid the failure in launch decision making. It comprises a shared under-
standing between the reporting manager and the researcher.
Problems/ opportunities to be studied
Understand the market scenario or insights, buying behaviour, demand etc.
Decision alternatives to be evaluated
Comparison with the competitors product, criteria of choice on the basis of brands, price etc.

Scope of study
Restricted to cruiser segment of bikes and restricted to Mysore area.

10
Research users
Marketing team and R&D team of the company

Research Boundary
Major areas which comes under Mysore City Corporation and limits to middle and upper group in-
come.

Research objective
 To understand consumer perception of premium segment bikes.
 Factor influencing buying decisions of the customer of motorbikes in premium segment.

Research question
 Is price an influencing factor in purchasing cruiser bikes?
 Is brand an influencing factor in purchase of cruiser bikes?
 Whether demand is influenced by the reference groups?
 Purpose of usage of cruiser bikes- maintaining status, long-trips, casual usage.

Hypothesis
H1: Price is an influencing factor in buying cruiser motorbikes
H0: Price is not an influencing factor in buying cruiser motor bikes

H1: Brand is an influencing factor in buying cruiser motorbikes

H0: Brand is not an influencing factor in buying cruiser motorbikes

H1: Reference groups influences the buying decision.

Ho: Decision groups does not influence the buying decision.

H1: The cruiser bikes are used for maintaining status

H0: The cruiser bikes are not used for maintaining status

H1: The cruiser bikes are used for long-trips

H0: The cruiser bikes are not used for long-trips

11
H1: The cruiser bikes are used for casual purpose
H0: The cruiser bikes are not used for casual purpose

12
Research design
Approach:
A quantitative method and qualitative method will be employed.
Type of research:
 Exploratory Research
Exploratory research is an important part of any marketing or business strategy. It focuses
on discovery of ideas and insights as opposed to collecting statistically accurate data, that is
why exploratory research is best suited for beginning of the research plan. It is most com-
monly used for defining issues, areas of potential growth and to prioritize the areas that is
required statistical research.
When it comes to online surveys, the most common example of exploratory research takes
place in the form of open ended questions.

Research Respondents
 Existing Users
 Students
 Public/Private Sector Employees whose annual salary ranges between 6 to 10 lakhs

Sampling
Sample size: 100

Define the sample population.

Users using motorbikes for at least past 1 year

What type of contact options are you using?

 Primary - Retailers, Distributors

 Secondary - Users, Non-Users

13
IRP Table

10.INFORMATION RESOURCE PLANNING TABLE

Source of Information Primary/Secondary Information Points Measurement Ap-

proach

Retailers Primary 1. Price: As to what Nominal Scale

price range bikes are
preferred by the Ordinal Scale
people of Mysore .
2. Purpose to buy:
3. Preferred brands :
Which type of
brands of motorbikes
are popular in My-
sore .
General people(Non Primary 1. Need: What is the Comparative Scale
Users) purpose of buying a
motorbike. Ordinal Scale

2. Requirements: how Nominal Scale

frequently people
use bikes for com-
mercial or service
purposes in Mysore.

3. Desired Specifica-
tions: what kind of
features of motor-
bikes attract con-
sumers of Mysore .
4. Brand awareness:
How far the buyers
of Mysore are aware
of the Brand .
5. Brand Image: How
the people of My-
sore associate the
Image of the Brand
with them .

14
Existing Users Primary 1. Readiness to buy: Comparative Scale
2. Need:
Ordinal Scale
3. Price
4. Purpose: Nominal Scale

5. Problems faced:
what kinds of tech-
nical problems faced
by the existing users
of bike in Mysore .
6. Maintenance
7. Brand Preference

15
Data analysis
Dummy table
1. What is your name?
Ans: __XYZ_________________________________

2. What age group do you belong

to?

· 18-25 X

· 36-45

· 26-35

· Above 45

3. Do you own a Motorbike? (if no, then go to question 2)

Yes X No

4. Do you have plans of purchasing a motorbike in future? (If yes answer Q15)

· Yes X

· No

· May be

5. Which segment of Motorbike you own cur-

rently?

· Standard X

· Deluxe

· Sports

· Cruiser

16
6. For what purpose you usually use bike?

· To commute for fun

· Daily ride X

· Adventure trips

7. Average Distance Covered in a Month?

· Less than 250 km

· 251-500 km X

· 501-1000 km

· Above 1000 km

8. Which price slot your bike belongs?

· Rs 30000 – Rs 60000

· Rs 60001—Rs 100000 X

· Rs 100001---Rs 200000

· Above Rs 200000

9. What is engine capacity of your bike?

· Less than 100cc

· 100cc to 125cc

· 126cc to 150cc

· 151cc to 180cc

· Above 180cc X

· I don’t know

17
10. Which is your current brand?

· Royal Enfield X

· Hero

· Honda

· Bajaj

· TVS

· KTM

· Others

11. What is the ranking you would give to the following features of the bike
from 1 to 4?

(Rank 1 – most preferred, Rank 4- least preferred)

· Mileage X

· Engine Capacity

· Tank Capacity

· Design

12. Rate your current satisfaction level w.r.t to the current bike you have. (if you
choose option 3 then go to Q13 else Q14)

· Very Good X

· Good

· Need to improve

· Can’t say

13. Which area do you want improvement?

· Comfort level X

· Engine capacity

· Mileage

· If others then mention

18
 14. Would you want to try another brand for better experience?

· Yes X

· No

· May be

15. Which sources did you collect information about the particular brand while buy-
ing?

· Newspaper

· T.V. / Social Media X

· Reference Groups

Others

16. On a scale of 1 to 5, with (1) being the least important and (5) being the most im-
portant, score each of the following factors based on your personal consideration.

· Style

· Comfort X

· Price

· Protection

Visibility

17. Which segment of Motorbike you want to buy?

· Standard

· Deluxe

· Sports X

Cruiser

19
18. Features you want to prefer in the bike? Rank in order of your preference

· Tyre (a) Broad X (b) Narrow X

· Ignition (a) Kick Start (b) Self Start

· Breaks (a) Disk Break (b)Normal

19. For what purpose you want to have bike

· Status Symbol X

· Utility Vehicle

· Long Journey Vehicle

· Style

20. Which is the current model you would prefer?

Ans: _______XYZ_________________________________

20
Questionnaire

1. What is your name?

2. What age group do you belong to?

 18-25

 36-45

 26-35

 Above 45

3. Do you own a Motorbike? (if no, then go to question 2)

Yes No

4. Do you have plans of purchasing a motorbike in future? (If yes answer Q15)

 Yes

 No

 May be

5. Which segment of Motorbike you own currently?

 Standard

 Deluxe

 Sports

 Cruiser

6. For what purpose you usually use bike?

 To commute for fun

 Daily ride

 Adventure trips

21
 7. Average Distance Covered in a Month?

 Less than 250 km

 251-500 km

 501-1000 km

 Above 1000 km

8. Which price slot your bike belongs?

 Rs 30000 – Rs 60000

 Rs 60001—Rs 100000

 Rs 100001---Rs 200000

 Above Rs 200000

9. What is engine capacity of your bike?

 Less than 100cc

 100cc to 125cc

 126cc to 150cc

 151cc to 180cc

 Above 180cc

 I don’t know

10. Which is your current brand?

 Royal Enfield

 Hero

 Honda

 Bajaj

 TVS

22
  KTM

 Others

11. What is the ranking you would give to the following features of the bike from 1 to 4?
(Rank 1 – most preferred, Rank 4- least preferred)

 Mileage

 Engine Capacity

 Tank Capacity

 Design

12. Rate your current satisfaction level w.r.t to the current bike you have. (if you choose op-
tion 3 then go to Q13 else Q14)

 Very Good

 Good

 Need to improve

 Can’t say
13. Which area do you want improvement?

 Comfort level

 Engine capacity

 Mileage

 If others then mention

14. Would you want to try another brand for better experience?

 Yes

 No

 May be

23
15. Which sources did you collect information about the particular brand while buying?

 Newspaper

 T.V. / Social Media

 Reference Groups

 Others

16. On a scale of 1 to 5, with (1) being the least important and (5) being the most important,
score each of the following factors based on your personal consideration.

 Style

 Comfort

 Price

 Protection

 Visibility

17. Which segment of Motorbike you want to buy?

 Standard

 Deluxe

 Sports

 Cruiser

18. Features you want to prefer in the bike? Rank in order of your preference

 Tyre (a) Broad (b) Narrow

 Ignition (a) Kick Start (b) Self Start

 Breaks (a) Disk Break (b)Normal

24
19. For what purpose you want to have bike

 Status Symbol

 Utility Vehicle

 Long Journey Vehicle

 Style

20. Which is the current model you would prefer?

Ans: ________________________________________

25
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