Market Environment

Introduction What is a bike?

A motorcycle, also known as bike in todays socially accepted terminology, is a single-track, engine-powered, two-wheeled motor vehicle. Motorcycles vary considerably depending on the task for which they are designed, such as long distance travel, navigating congested urban traffic, cruising, sport and racing, or off-road conditions. The main purpose of the invention of bike was increasing comfort of people while facilitating the process of transportation and at the same time, speeding it. Motorcycles are one of the most affordable forms of motorized transport in many parts of the world and, for most of the world's population; they are also the most common type of motor vehicle. A motorcycle is broadly defined by law in most countries for the purposes of registration, taxation and rider licensing as a powered two-wheel motor vehicle. Most countries distinguish between mopeds of 49 cc and the more powerful, larger, vehicles. Many jurisdictions include some forms of three-wheelers as motorcycles. The first internal combustion, petroleum fueled motorcycle was the Petroleum Reitwagen. It was designed and built by the German inventors Gottlieb Daimler and Wilhelm Maybach in Bad Cannstatt, Germany in 1885. This vehicle was unlike either the safety bicycles or the boneshaker bicycles of the era in that it had zero degrees of steering axis angle and no fork offset, and thus did not use the principles of bicycle and motorcycle dynamics developed nearly 70 years earlier. Instead, it relied on two outrigger wheels to remain upright while turning. The inventors called their invention the Reitwagen ("riding car"). It was designed as an expedient testbed for their new engine, rather than a true prototype vehicle. Many authorities who exclude steam powered, electric or diesel two-wheelers from the definition of a motorcycle, credit the Daimler Reitwagen as the world's first motorcycle. In 1894, Hildebrand & Wolfmller became the first series production motorcycle, and the first to be called a motorcycle (German: Motorrad). In the early period of motorcycle history, many producers of bicycles adapted their designs to accommodate the new internal combustion engine.

As the engines became more powerful and designs outgrew the bicycle origins, the number of motorcycle producers increased. From the 1960s through the 1990s, small two-stroke motorcycles were popular worldwide, partly as a result of East German Walter Kaaden's engine work in the 1950s. Today, the motorcycle industry is mainly dominated by Japanese companies such as Honda, Kawasaki, Suzuki, and Yamaha, although Harley-Davidson and BMW continue to be popular and supply considerable markets. Other major manufacturers include Piaggio group of Italy, KTM, Triumph and Ducati. In addition to the large capacity motorcycles, there is a large market in smaller capacity (less than 300 cc) motorcycles, mostly concentrated in Asian and African countries. An example is the 1958 Honda Super Cub, which went on to become the biggest selling vehicle of all time, with its 60 millionth unit produced in April 2008. Today, this area is dominated by mostly Indian companies with Hero Honda emerging as the world's largest manufacturer of two wheelers. Other major producers are Bajaj and TVS Motors. For example, its Splendor model has sold more than 8.5 million to date.

Reason for choosing bike as a product

Two- wheeler sales in the country have sky rocketed in the recent years, and the annual sales of motorcycles in India expected to cross the 10 million mark by 2010. The low penetration of twowheelers in the country 31 two-wheelers per 1000 citizens (2004) leaves immense scope for the growth of the market. Overall the industry sales of two-wheelers have grown by 15% from 6.57 million in 2004/2005 to 7.57 million in 2005/2006. The buoyant Indian economy with a growth rate of around 8% per annum is further expected to fuel the growth of two wheelers in the country. The share of motorcycles have increased over the years, while that of other two-wheelers like geared scooters, scooterettes and mopeds have shown a negative growth or remained stagnant. The two-wheelers have penetrated 7% of rural house hold and 24% of urban markets, thus it leaves an immense scope for the market to grow.

Talking of the two wheeler industry, the names that effortlessly come to us is Bajaj Auto, Hero Honda, TVS Motor, Yamaha Motor, Kinetic and others. The two wheeler segment has played an important role in giving a push to the automobile industry in India. In fact, the production, sales and exports of the two wheelers is a fair indication of the growing importance that it enjoys in this country's manufacturing economy. An overview of the two wheeler industry makes this clear that the two wheelers are among the most sought after automobiles in India for some time and the trend is likely to stay for a while. The economic growth, need for better conveyance and gradually improving road infrastructure coupled with better credit and financing options, have acted as a major catalyst in encouraging the growth and development of the two wheeler segment in India. Further, the new and improved features on the two wheelers, their stylish and trendy looks and a rage with the country's youth who form a substantial influence in determining the consumer behavior have ensured that the two wheelers remain on top of the automobile industry's agenda in India.

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. The two-wheeler production capacity is to reach 22.31 million units in 2011-12 compared with 10.78 million in 2006-07. 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).

Hero Honda, Bajaj Auto and TVS Motor remain the leading players in terms of sales and popularity of their two wheelers.

Motorcycle sales trend

India is the second largest two-wheeler market in the world The auto component industry has come of age and now forms an important component of the Indian economy. In recent years, it has grown more impressively, fetch double digit growth. More interestingly, it has captured attention as well as business from leading auto makers of the world. The industry plays a crucial role in the automobile sector. Manufacturing vehicles typically involve assembling a large number of components out-sourced from number of ancillaries or component manufacturers. Competitiveness with quality as a theme has been the watchword for the Indian industry and especially the auto component industry ever since the Indian economy was opened up to the world in the early 1990s. While economic revival, lower interest rates and better road infrastructure are driving domestic demand for automobiles and, therefore, components, increasing outsourcing by global automobile majors is creating a huge Export opportunity for Indian component manufacturers.

Market share of two wheelers in automobile sector

Growth Prospects and Key Drivers of the Indian Two Wheelers Industry The growth witnessed by the Indian two wheeler industry indicates the growing demand for low cost personal transportation solutions amongst the 300 million Indian middle class consumers. Despite this spectacular growth rate, the two wheeler penetration (number of two wheelers per 1000 inhabitants) in India remains lower than other Asian countries. This fact provides an opportunity for continued growth in the market. India has the lowest Penetration of two wheelers as compared to countries like Taiwan, Thailand, Malaysia, Vietnam, Indonesia and China. In the present scenario, growth in the two wheeler Industry will be driven by several factors:

Rise in Indias Young Working Population With the rising levels of per capita income of people, the Indian two wheeler market offers a huge potential for Growth. This growth is relevant in the light of the fact that 70 per cent of Indias population is below the age of 35 Years and 150 million people will be added to the working Population in the next five years. The number of women in the urban work force is also increasing; this will lead to the Growth of gearless scooters. Rise of Indias Rural Economy and Growth in Middle Income Households The growth prospects of the Indian rural economy offer a significant opportunity for the motorcycle industry in India. The penetration of motorcycles amongst rural households with income levels greater than US$ 2,200 per annum has already increased to over 50 per cent. The current target Segment for two wheelers, i.e., households belonging to the Income category of US$ 2,20012,000 is expected to grow at a CAGR of 10 per cent. Greater Affordability of Vehicles The growth in two-wheeler sales in India has been driven by an increase in affordability of these vehicles. An analysis of the price trends indicates that prices have more or less stagnated in the past. This has been part of the marketing strategy adopted by the manufacturers to gain volume, as well as conscious efforts adopted to bring down costs. The operating expenses of leading manufacturers have declined by around 15 per cent in the last five years. With greater avenues of financing, the customers capacity to own a two wheeler has improved. Rapid Product Introduction and Shorter Product Life Cycle The last five years have witnessed a sharp increase in new product launches in the two wheeler industry. It is estimated that close to 50 new products have been launched by manufacturers during this period, filling up all price points and targeted at various consumer segments. Inadequate Public Transport Systems in most Urban Areas The economic boom witnessed in the country and the increased migration to urban areas have increased the traffic congestion in Indian cities and worsened the existing infrastructure bottlenecks. Inadequate urban planning has meant that transport systems have not kept pace with the economic boom and the growing urban population. This has increased the dependence on

personal modes of transport and the two wheelers market has benefited from this infrastructure gap. Challenges faced by the industry Despite the high growth achieved in the past and the high potential in the future, the twowheelers market faces some challenges. Rising Customer Expectations The growth witnessed by the Indian two wheeler industry has attracted a number of new entrants to the market and it is expected that the Indian industry will become more competitive in the future. The plethora of products introduced in the past has also raised customer expectations with respect to reliability, styling, performance and economy. Environmental and Safety Concerns The increasing demand for two wheelers will need to be managed to address issues relating to overcrowding of roads. Another problem is the insufficient infrastructure for inspection to ensure adherence to emission norms. As the industry grows, it is important to regulate the sale of used two wheelers in a more organised manner for which a mechanism needs to be evolved. Unregulated sale of two wheelers, especially in the rural areas, are likely to create issues related to emissions and safety of vehicles. Creation of Distribution Infrastructure Leading companies need to ensure that on one hand they build adequate infrastructure in terms of dealerships and servicing stations in the urban areas and on the other ensure that their distribution infrastructure also reaches the rural areas COMPANY NAME, BIKE NAME, TAGLINE

DIPSTICK STUDY

Market Segmentation
Market segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firms to better satisfy the needs of its potential customers. The need for market segmentation:The marketing concept calls for understanding customers and satisfying their needs better than the competition. But different customers have different needs and it rarely is possible to satisfy all customers by treating them alike. Mass marketing refers to treatment of the market as a homogenous group and offering the same marketing mix to all customers. Mass marketing allows economies of scale to be realized through mass production, mass distribution, and mass communication. The drawback of mass marketing is that customer needs and preferences differ and the same offering is unlikely to be viewed as optimal by all customers. If firms ignored the differing customer needs another firm likely would enter the market with a product that serves a specific group and the incumbent firms would lose those customers. Target marketing on the other hand recognizes the diversity of customers and does not try to please all of them with the same offering. The first step in target marketing is to identify different market segments and their needs. Requirement of market segments:In addition to having different needs, for segments to be practical they should be evaluated against the following criteria: Identifiable: - the differentiating attributes of the segments must be measurable so that they can be identified. Accessible: - the segments must be reachable through communication and distribution channels. Substantial: - the segment should be sufficiently large to justify the resources required to target them. Unique needs: - to justify separate offerings, the segments must respond differently to the different marketing mixes.

Durable: - the segments should be relatively stable to minimize the cost of frequent changes. A good market segmentation will result in segment members that are internally homogenous and externally heterogeneous; that is, as similar as possible within the segment, and as different as possible between segments.

Bases for segmentation in consumer markets:Consumer markets can be segmented on the following customer characteristics Geographic Demographic Psychographic Behavioralistic

Geographic segmentation:The following are some examples of geographic variables often used in segmentation Region: by continent, country, state, or even neighborhood Size of metropolitan area: segmented according to size of population Population density: often classified as urban, suburban, or rural Climate: according to weather patterns common to certain geographic regions

Demographic segmentation: Some demographic segmentation variables include: Age Gender Family size Family life cycle Generation : bay-boomers, generation x, etc Income Occupation

Education Ethnicity Nationality Religion Social class

Many of these variables have standard categories for their values. For examples, family lifecycle often is expressed as bachelor, married with no children (Dinks: double income, no kids), full- nest, empty-nest, or solitary survivor. Some ot these categories have several stages for example, frll-nest1, 2, or 3 depending on the age of the children. Psychographic segmentation: Psychographic segmentation groups customers according to their lifestyle. Activities, interest, and opinions (AIO) SURVEYS ARE ONE TOOL FOR Measuring lifestyle. Some psychographic variables include: Activities Interests Opinions Attitudes Values Behavioralistic segmentation: Behavioral segmentation is based on actual customer behavior toward products. Some behavioralistic variables include: Benefits sought Usage rate Brand loyalty User status: potential ,first-time, regular etc Readiness to buy

Occasions: holidays and events that stimulate purchases

Behavioral segmentation has the advantage of using variables that are closely related to the product itself. It is a fairly direct starting point for market segmentation.

Competition Talking of bikes cc, bikes having four-stroke engines are thought to be more fuel efficient motorbikes. They are the main reason for the growth of motorbikes in India as a segment. Indian bikes market share is about 81.5% of the total two wheeler market in India. Three-fourth 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. India is the manufacturer of some of the best bikes in the world. Hero Honda, Kinetic Motor, TVS Motor, LML India are some of iconic bike manufacturers in India. There are cheap motorcycles that comprise the commuter bikes segment, as well luxury bikes like sports bike in India for the new age bikers. Ever year, a series of latest bike launch keep the sector buzzing. Kawasaki Ninja, Bajaj Pulsar 135 LS, and Honda Unicorn Dazzler are some of the latest motorcycle models that have made news in the recent past. Besides, there are also a number of new bikes in India that are awaiting a launch in the near future This section provides detailed information on every bike in India, features of motorcycles, motorcycle parts, and cheap motorcycles. If you are planning to buy a new bike, you will get here all the details of new bikes, cheap bikes, used bikes, bikes for sale, a complete 2 wheelers list, and authentic bike reviews. And for the die-hard bike lovers, this is the ultimate destination to get high-resolution pictures of motorcycle, industry-sourced motorcycle reviews and descriptions of first-hand motorcycle test rides.

Following is a comprehensive list of motorcycles in India: * Models Awaited BAJAJ AUTO Kawasaki Ninja* | * Latest Launch Models HERO HONDA Hero Honda Achiever KINETIC MOTOR Kinetic Aquila

 Bajaj XCD 135 DTS-Si* Bajaj Discover DTSi Bajaj Platina Bajaj Pulsar 135 LS* Bajaj Pulsar DTSi Bajaj Pulsar 200CC* Bajaj Avenger Bajaj Pulsar DTS-Fi 220 CC* Bajaj Discover DTS-Si 100cc* Bajaj Pulsar 220 S*

Hero Honda CD Dawn Hero Honda CD Deluxe Hero Honda Glamour Hero Honda Karizma Hero Honda Passion Plus Hero Honda Splendor Hero Honda Splendor NXG Hero Honda CBZ X-Treme Hero Honda Hunk Karizma ZMR FI

Kinetic Comet Kinetic Stryker

LML INDIA LML Adreno FX LML Beamer LML Energy FX LML Freedom LML Graptor

ROYAL ENFIELD Bullet 350 Thunderbird Twinspark Bullet Electra Bullet Machismo Bullet Machismo 500 Royal Enfield Classic 500

TVS MOTOR TVS Apache RTR FI TVS Flame TVS Star City TVS Taurus Fiero F3* TVS Apache RTR 220*

HMSIL Honda Shine Honda Unicorn

SUZUKI MOTOR Suzuki Access 125 Suzuki Heat Suzuki Zeus

YAMAHA MOTOR Yamaha Fazer Yamaha FZS Yamaha FZ 150cc

Grand Prix Edition

Honda Stunner CBF

 Honda CBF Stunner FI Honda CB Twister -

Suzuki Hayabusa 1300 Suzuki Intruder M1800R Suzuki GS 150R -

Yamaha Gladiator Yamaha Libero G5 Yamaha Gladiator Type JA Yamaha Alba 106 Yamaha YZF R1

Yamaha MT 01 Yamaha YZF-R15 Yamaha Crux Yamaha YZF-R1 2010 Yamaha SZ and SZ-X

To understand the competition in the market and plan our strategies in a better way, the following tools are available PEST Analysis Porters 5 Force Analysis SWOC Analysis and SIVA

PEST ANALYSIS ON TWO-WHEELER INDUSTRY: Political, economic, social and technology are those factors which affects the external environment. Political Aspects Tax policies, trade regulation, political influence and some of the rules and regulation of government policies which is considered in political analysis.

The corrections in Excise duty on electric vehicles which will enable the manufacturers take CENVAT credit and exemption of customs duty on Electric Vehicles parts and also weighted deduction for in-house R&D to 200% from 150% and outsourced R&D from 125% to 175%. This would encourage industry that much because this price hike isnt expected to impact sales in a significant way as a majority of two-wheeler buyers were prepared, and to certain extend braced up and ready to shell out extra money for their favorite set of wheels. Economic Aspects Economic factor are those which is influenced by economic growth, interest rate, exchange rate and inflation rate. Abundant and low cost labour coupled with local availability of raw material like steel, aluminum and natural rubber has placed India amongst the low cost producing centers of twowheelers. Consequently, CARE Research anticipants buoyant growth in two-wheelers exports as well. Abundance of low labour and raw material gives India an upper hand in the export. Since many auto finance company laid easy installment rules with less interest rate it makes more segment people to go for it. Social Aspects Social aspects of two-wheelers industry are Popularity, Subculture, Mobility and safety. In numerous cultures, motorcycles are the primary means of motorized transport. India is the second largest motorcycle markets in the world next to China. Socially many motor cycle organization raise money for charities through organized ride and events. Many people ride motorcycle for various reasons, those reasons are increasingly practical, with riders opting for a powered two-wheeler as a cost-efficient alternative to infrequent and expensive public transport system, or as a means of avoiding or reducing the effect of urban congestion. Motor-cycle gives a great advantage to the specified designation where other buses cannot enter. Since there is a rule in some of the main states and cities in India to wear helmet while riding two-wheelers to make them safe from accidents makes two-wheeler riders to have a safe journey.

Technical Aspects - Technical Aspects in Two-wheeler industry includes construction, fuel economy, electric motorcycles, dynamics and accessories.

Two-wheeler construction is the engineering, manufacturing, and assembly of components and systems for two-wheelers which results in performance, cost and aesthetics desired by the designers. Construction of two-wheeler includes steel, aluminum frame, telescopic forks and disc brakes. Motorcycle is the best fuel economy mode of transport, Nowadays twowheelers is designed to give more than 80km mileage per liter with low maintenance cost. Invention of Electric motorcycle gives an added advantage since the two-wheeler users can avoid using petrol. Different types of two-wheelers have different dynamics and these plays a vital role in their performance. Since sufficient bike accessories are available in many place two-wheeler riders has a privilege to change the broken parts very easily.

PORTERS 5 FORCES ANALYSIS Porters five forces Model of Competition are as follows: Rivalry among competing sellers Potential new entrants Substitute products Competitive pressures from supplier - seller relations: Bargaining power Competitive pressures from seller buyer relations: Bargaining power.

RIVALRY: The key players in two-wheeler industries are Hero Honda motor ltd. (HHML), Bajaj Auto ltd and TVS motor Company ltd. The other players are Kinetic, Lml, Yamaha, Majestic auto ltd, Royal Enfield ltd and Honda motorcycle & scooter India. Two-wheelers domestic market growth rate for 2008-09 is 76.49% which is very high when compared to that of three wheelers, Passenger and commercial vehicles. The standardized product used in manufacturing of two-wheelers is steel, aluminum and rubber, because there are many industries in India for manufacturing those standardized product the production is going smooth. Sales of two-wheelers are very high when compared to that of three wheelers, Passenger and commercial vehicles. Indian Auto policy 2002 gives added advantage to two-wheeler manufacturers to enter even other countries outside India. Since big manufacturer plant with high technology and good R&D team needed many of them dose not enter in two two-wheeler Industries. Only the companies which are in automobile line will expand their product line like Mahindra.

Potential New Entrants: Capital investment is very huge in two-wheeler industries since large plant and large machineries needed with skilled labours and good R&D team needed for producing two-wheelers. Since high technology and raw material resources are abundant to produce the production cost is less in producing two-wheelers. Since each company in industry change the model on going basis to show differentiation among their competitors because of this there is more learning and experience in this field. Each company in industry not only makes differentiation in their product strategy but also makes differentiation in the promotional strategy to create brand preference and loyalty. Because of low cost production, this industry enjoys good growth rate and profitability. Substitute Product: Substitute products for two-wheeler industries are bus transportation, Auto transportation and even low-end cars, but people using two-wheelers can only use the service of buses and auto as a substitute product. Sometimes low-end car is a substitute product for the people using high-end motor cycles. Because nowadays there is lot of segment in buses in urban areas and the private companies also influenced very much, buses are available from normal buses to hi-tech ac buses which is threat to two-wheeler industry. Since only two people can travel in a bike most of them uses auto when they go out with their family and if they are affordable to buy car will use car instead of auto. Since bus service has increased when compared to five years back people who are aged above 45 years uses buses because of their health condition. These are the substitute product available to two-wheelers. Supplier Seller Relations: Since their selling units are very high in two-wheeler industry and because of many competitors supplier are very high. Since they change their models on going basis they create good relationship between their suppliers. Some of the components in twowheeler industry are very common for all the two-wheeler industries like steel, aluminum, tyres and tubes, these material are available in abundant. This makes them to drive a smooth production of their finished products. Seller Buyer Relations: Buyer has added advantage than seller because there are five to six big popular brands of two-wheelers are available in India, so that they can switch brand from one another. Since full information is available to the buyers about their product details and their prices buyers are fully aware of seller costs and products. Buyers are very conscious in spending

their money to purchase two-wheeler, because it attracts most of the middle-income groups seller cannot price their product very high. Nowadays people go to unique brand because of the good service they provide after purchase. Because service centers and spare parts shop available to their customer very near to their place buyer sometimes do not mind spending little money extra. These factors create good relationship between them.

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning, has been the subject of much research

Strengths: characteristics of the business or team that give it an advantage over others in the industry.

Weaknesses: are characteristics that place the firm at a disadvantage relative to others.

Opportunities: external chances to make greater sales or profits in the environment.

Threats: external elements in the environment that could cause trouble for the business.

Identification of SWOTs are essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. Use of SWOT analysis The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in any decision-making situation when a desired end-state (objective) has been defined. Examples include: non-profit organizations, governmental units, and individuals.

SWOT analysis may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may also be used in creating a recommendation during a viability study/survey. Nowadays researchers believe that there is nothing like threat for any organization, everything that seems to be a threat for it, in real they are Challenges. Hence, the SWOC analysis for our product is as follows

Strengths
Highly dynamic and risk taking management. Product design and development

Weaknesses
Lack of financial support due to new entrant in the market Still has no established brand to match Hero Honda's brand equity Not a global player New entrant is not accepted overnight in the market

capabilities Extensive R & D focus Chosen all mechanics as a promotion channel which have high accessibility to customers daily thereby creating strong word of mouth at a very fast pace Innovation if targeted to potential customers, can be a very strong pillar of success of the firm

Challenges
The competition catches-up any new innovation in no time. Threat of cheap imported motorcycles from China Hero Honda and Bajaj have huge brand equity The growing gearless trendy scooters and scooterettes market market

Opportunities
Double-digit growth in two-wheeler

Untapped market above 180 cc in motorcycles More maturity and movement towards higher-end motorcycles Growing world demand for entry-level motorcycles especially in emerging

markets

Siva Analysis

The SIVA Model provides a demand/customer centric version alternative to the well-known 4Ps supply side model (product, price, place, promotion) of marketing management. The four elements of the SIVA model are: Solution: How appropriate is the solution to the customers problem/need Information: Does the customer know about the solution, and if so how, who from, do they know enough to let them make a buying decision

Value: Does the customer know the value of the transaction, what it will cost, what are the benefits, what might they have to sacrifice, what will be there reward? Access: Where can the customer find the solution. How easily/locally/remotely can they buy it and take delivery.

This model was proposed by Chekitan Dev and Don Schultz in the Marketing Manageemnt Journal of the American Marketing Association, and presented by them in Market Leader - the journal of the Marketing Society in the UK. It has not been yet done as dipstick study remains..

Branding Marketing Mix

We are launching a new bike by new brand name. The name of our company is EPSILON Motors and the name of our Product is AREION Bikes. We have targeted the premium segment. So the marketing mix is done according to the premium market segment.

Product: A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Brand Name: - Epsilon Motors Product name: - Areion bike Product Specifications 650cc Engine sports bike
Mileage upto 60 km

Digital display LCD panel Charging Point Core Benefits: - Mileage range 60 90 Kmpl, 200 - 650cc engine, charging point, digital display via LCD panel, latest design as per demand, spoke chain replaced by propeller shaft and hydraulic central stand. Price: The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. We have decided the price of our product for Rs 89,000 as we are providing 650cc sports bike with digital display and LCD panel. So the price charged is low compared to the features we are providing as we are launching a new product with new brand name. As we are launching a new product so we will be providing 10% discounts to 1st 100 customers. Place: Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Place is not exactly a physical store where it is available Place is nothing but how the product takes place or create image in the mind of customers. It depends upon the perception of customers.

Epsilon Areion will be sold in an Epsilon showroom which will be launched firstly in metros and the showrooms will be located in prime areas which will give easy access to the customers. After seeing the demand for our product we will be launching our showroom allover India from time to time. Each showroom will provide spare parts of the product along with vehicle services and customer services. We will be also using mobile showrooms to reach nearby villages. The main purpose to open showrooms at different places is reach more customers.

Distribution of Areion Promotion: Promotion concerns the message the firm sends out to potential consumers. It provides information and persuades people, it creates awareness, stimulates demand and differentiates the product and influences public behavior. Promotion wont make a bad product that no one wants a success; although the absence of promotion may not make the new product successful in the market, promotion includes all the activities or tools a company uses to communicate or promote its product in the market. We will be using advertising in television and print media. The main target for promotion is to attract customers and make them aware about our new product. We will be advertising through television, newspaper, magazines and internet. Also, we will be using the strong word of mouth created through the mechanics as they have the widest and highly accessible customer reach on a daily basis.

Marketing Communication Mix

Advertisement: Advertising is a form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideals, or services. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand. These brands are usually paid for or identified through sponsors and viewed via various media. Advertising can also serve to communicate an idea to a large number of people in an attempt to convince them to take a certain action.

In order to promote our new bike, we need to advertise our product in order to make consumers aware about our product. We will be advertising through television, newspaper, hoardings, internet and magazines. Sales promotion: Sales promotion is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service. As our product is new, in order to promote our sales we will organize events to get sponsorships so that we can increase our market share Personal selling: Personal selling is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale" Personal selling is one of the oldest forms of promotion. It involves the use of a sales force to support a push strategy. We will not be using personal selling to promote our product. Public relations: Public relations (PR) is a field concerned with maintaining public image for businesses, nonprofit organizations or high-profile people, such as celebrities and politicians. Direct marketing: Direct marketing is a form of advertising that reaches its audience without using traditional formal channels of advertising, such as TV, newspapers or radio. Businesses communicate straight to the consumer with advertising techniques such as fliers, catalogue distribution, promotional letters, and street advertising. E- Marketing
Internet marketing ties together creative and technical aspects of the Internet, including: design, development, advertising, and sales

Exibitions: An exhibition, in the most general sense, is an organized presentation and display of a selection of items. In practice, exhibitions usually occur within museums, galleries and exhibition halls.

COMPLETE THE REST OF E-MARKETING ETC>>>>>>>>>>>>>>

Attachments
Questionnaire
Information required through this questionnaire includes what features a customer likes in a bike, which is based in India. 1. Do you ride bike as your daily means of transportation? No 2. Do you own a bike? No If not, which bike would you prefer to buy? Why would you prefer the above mentioned bike? 3. If yes, which brand in bike do you own? Hero Honda Kinetic Yamaha Kawasaki Bajaj Suzuki Honda Kawasaki TVS Other (Specify) 4. Why did you buy this bike? (Tick all that apply) Price Mileage Royal Enfield Bajaj LML Yes Yes

Looks / Design Comfortable Seating BHP (Power) Top Speed Brand name is famous Other (Specify) 5. Which design of bike do you like? (Tick all that apply) All Terrain Bikes (ATB like Harley Davidson) Commuters (like Bajaj Discover) Sports Bikes (like Suzuki Hayabusa) Cruiser Bikes (like Bajaj Avenger, Yamaha Enticer) 6. Are you aware of disc brakes and drum brakes in bikes? Yes No I am confused

If yes, where will you prefer to have disc brake? Front wheel Rear wheel Both wheels Nowhere 7. Which type of brake do you prefer? Disc brake 100 130 >190 9. Are you aware of alloy wheels and spoke wheels in bikes? Yes Spoke wheels Mechanical display No I am confused Alloy wheels Digital display If yes, what type of wheel would you prefer in your bike? 10.What type of display panel would you like in your bike? Why would you like to have above mentioned display in your bike? 11.How many gears would you like to have in your bike? Drum brake 131 160 161 190 8. What CC would you like to have in your bike?

4 Yes 5 10 liters

5 No

12.Does the size of fuel tank affect your bike buying decision? If yes, what is the tank size that you would prefer to have in your bike? 10 15 liters 15 20 liters

13.What type of tires (in terms of width) would you prefer in your bike? Narrow

Broad

Broader

Wide

14.What type of silencer would you like to have in your bike? Extremely long (as in Royal Enfield)

Long (as in Hero Honda Hunk)

Box (as in Yamaha FZ)

Short

15.What type of battery would you prefer to have in your bike? Dry battery (use and throw) (requires refill) Liquid battery

16.Are you aware of mono suspension and dual suspension? Yes confused If yes, what type of suspension would you prefer to have in your bike? Mono suspension Self start Both 18.What according to you should be the mileage of your bike? (in Kmpl) 30 40 >70 19.Would you prefer to have a bike without clutch? Yes Fiber No Metal 20.Which material would you like your bike to be made up of? 41 50 51 60 61 70 Kick start Dual suspension 17.What type of ignition do you prefer to have in your bike? No I am

21.Where did you last see any bikes advertisement? Television Magazines Internet Leaflets Other (Specify) Newspaper Hoardings

22.What media do you prefer to see any bikes advertisement? Print media (newspapers, magazines etc.) Digital media (television, hoardings, etc.) Broadcast media (radio, etc.) I do not like advertisements of bikes 23.Would you buy a bike if you see your role model riding it in an advertisement? Yes Yes Yes Firing of Royal Enfield Firing of Yamaha Firing of Honda Firing of ___________________________________________________________ 27.What do you feel when you hear the firing of silencer of the bike that you like? Power of bike Style Design Status High Speed Other (Specify) _______________________________________________________ No No No I want both 24.Would you like to replace the reserve cork with mileage meter? 25.Would you like to have tubeless tires in your bike? 26.Which types of firing do you like in bike?

Perceptions (Please tick appropriate number where 1 stands for least important
and 6 stands for most important) 1. How important is mileage for you in your bike? Least important 1 2 3 4 5 6 Most important 2. How important is CC to you? Least important 1 2 3 4 5 6 Most important 3. How important is BHP to you? Least important 1 2 3 4 5 6 Most important 4. How important is the design of bike for you? Least important 1 2 3 4 5 6 Most important 5. How important is capacity of fuel tank for you? Least important 1 2 3 4 5 6 Most important 6. How important is the type of wheel for you? Least important 1 2 3 4 5 6 Most important 7. How important is after sales service is to you? Least important 1 2 3 4 5 6 Most important 8. How important is disc brake for you? Most important 1 2 3 4 5 6 Least important 9. How important is speed for you? Most important 1 2 3 4 5 6 Least important 10.How important is elevated back seat for you? Least important 1 2 3 4 5 6 Most important 11.How important is smooth driving even on rough surfaces for you? Least important 1 2 3 4 5 6 Most important 12.How important is price for you? Least important 1 2 3 4 5 6 Most important 13.How important is enjoyment while riding a bike for you? Least important 1 2 3 4 5 6 Most important

14.How important is stability even on high speed for you? (bike does not shake on high speed) Most important 1 2 3 4 5 6 Least important 15.How important is comfort while driving to you? Least important 1 2 3 4 5 6 Most important 16.How important is handling (smooth turnings i.e. cuts) for you in bike? Least important 1 2 3 4 5 6 Most important

Attitude
1. When I drive a bike of my choice, I feel ___________________________________________ 2. Anybody who rides a Bajaj Discover is a ___________________________________________ 3. Fast riding shows _____________________________________________________________ 4. Bikes with broad tires are ______________________________________________________ 5. Bikes that give good mileage are ________________________________________________ 6. Seeing a bike stunt I feel ______________________________________________________ 7. Reason for bike being pulled by any person can be:_________________________________ 8. The bike I love the most is _____________________________________________________ 9. Backseat of my bike would be occupied by ________________________________________ 10.My role model should drive ____________________________________________________

11.Why should my role model drive the above mentioned bike? _________________________ ___________________________________________________________________________

12.Someone else driving my type of bike is __________________________________________ 13.My enemy should drive _______________________________________________________ 14.In a dream, me, my bike and ___________________________________________________ 15.The bike that I love the most is _________________________________________________ 16.The bike that best suits me is __________________________________________________ 17.Hearing the firing sound of a bike that I like, I feel __________________________________

Please answer the questions given below with the assumption that you get a bike as per your choice: 1. I will take loan even at higher rates to buy it.

2. I will convince my parents even if they are against buying the bike.

3. I will even borrow money from friends and / or relatives to buy a bike.

4. I will not buy the bike if it is out of my budget.

5. If my friends believe that the bike has a high status, I will buy it even if I am not convinced.

6. I will buy the bike that I like, even if some other bike suits my personality.

7. If girls of my group like the bike, I will buy it even if I am not convinced with the bike.

Word Association
Kindly write down the word that strikes you at the very 1st instance after reading the words given below: Stimulus Response 1. Status 2. Passion 3. Attitude 4. Personality 5. Showoff 6. Rally 7. Petrol 8. Style 9. travel 10.Power 11.Stunt 12.Excitement 13.Speed 14.Pickup 15.Puncture 16.Safety 17.Firing of silencer 18.Design 19.Economical 20.Mileage

21.Style 22.Girlfriend 23.Manly

Demographic Information
Name (optional): ______________________________________________________ Age: 15 25 years >45 years Occupation: Student Service person (job) Profession (doctor etc.) Self Employed (businessman) 26 35 years 36 45 years

Thank you.

Bibliography