KIMO Launching Two-Wheeler in Nashik: Research For Managerial Decisions

KIMO Launching Two-Wheeler in Nashik
Research for Managerial Decisions
Submitted by:
Abhijeet Khamborkar
005
Chetana Rane 030 Rakesh Kumar 066 Anoop Anantha

SIOM | Research & Management Decisions
117
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ACKNOWLEDGEMENTS
We thank our teachers and guide, Dr. Vandana Sonawaney & Bhibuthi Tripathi for exposing us to this topic and research. It is through this research that we gained a practical knowledge of what Research For Managerial Decisions is all about. We also thank him for his help and support during the actual implementation of the survey and collating data. We thank Bhibuthi Tripathi & Mrs. Sanjivani Deodhar, our Statistics Professors, for teaching the various ways of collecting, analyzing and interpreting data. We would extend our thanks to the staff and manager of Wasan Bajaj near Mumbai Naka, Nashik for investing their valuable time for our research and survey on automobiles and market demand. We thank the entire staff of SIOM for supporting us at every moment. Also I would like to thank my friends who were very supportive of me and provided inputs at every stage of the project. Without their support and help this would have been difficult.
TABLE OF CONTENTS
LIST OF FIGURES ................................................................................................ 4 I. i. iii. iv. a. b. III. i. iii. a. b. c. iv. vi. IV. i. iii. iv. V. VI. Executive Summary ....................................................................................... 5 Background ................................................................................................ 6 Problem Statement .................................................................................. 7 Research Objectives ................................................................................. 7 Primary Research Objective ................................................................... 8 Secondary Research Objective ............................................................... 8 II. Introduction .................................................................................................. 6 ii. Conceptual Review of the project Area ......................................................... 7
Research methodology ................................................................................ 9 Definition & Scope of Project ....................................................................... 9 Research Design .................................................................................... 10 Data Collection Techniques ................................................................. 10 Sampling Plan..................................................................................... 10 Instruments ....................................................................................... 10 Data collection ....................................................................................... 11 Limitations ............................................................................................ 12 Analysis & Findings ................................................................................... 13 About our respondents .............................................................................. 13 Market for new brands ........................................................................... 17 Customer Delight ................................................................................... 18 Bibliography/ References ........................................................................... 21 Conclusions & Recommendations ................................................................. 20
ii. Sampling Design ......................................................................................... 9
v. Data analysis ............................................................................................ 11
ii. About the market requirement ................................................................... 15
ANNEXURE ........................................................................................................ 22
LIST OF FIGURES
FIGURE 1: PIE CHART FOR GENDER DISTRIBUTION .........................................................13 FIGURE 2: BAR CHART FOR VARIOUS PROFESSIONS ........................................................13 FIGURE 3: ANNUAL FAMILY INCOME OF THE RESPONDENTS .........................................................14 FIGURE 4: REASON OF NOT OWNING A TWO-WHEELER ..............................................................14 FIGURE 5: THE MEDIUM OF TRANSPORT USED BY THE RESPONDENTS AT PRESENT ............................15 FIGURE 6: THE TYPE OF 2 WHEELER REQUIRED IN THE MARKET ...................................................15 FIGURE 7: THE PRICE RANGE OF THE 2 WHEELERS REQUIRED BY THE CONSUMERS ............................16 FIGURE 8: THE FEATURE IN A 2 WHEELER WHICH IS MOST VALUED BY CUSTOMER ............................16 FIGURE 9: ENGINE CAPACITIES THAT RESPONDENTS PREFER IN THEIR 2 WHEELER ............................17 FIGURE 10: DIFFERENT BRANDS WHICH PEOPLE WOULD LIKE TO BUY A 2 WHEELER ..........................17 FIGURE 11: TIME WITHIN WHICH CUSTOMERS WOULD LIKE TO BUY A 2 WHEELER ............................18 FIGURE 12: PROBABILITY OF A NEW ENTRANT ITS PRODUCTS IN 2 WHEELER SEGMENT ......................18 FIGURE 13: PROBABILITY OF KIMO SELLING ITS PRODUCTS IN 2 WHEELER SEGMENT .......................18 FIGURE 14: WHETHER PEOPLE NEED A LOAN FOR BUYING A 2 WHEELER ........................................19 FIGURE 15: WHETHER PEOPLE FEEL NASHIK ROADS ARE GOOD ENOUGH TO LAUNCH A SUPER-BIKE .......19 FIGURE 16: CUSTOMERS OPEN TO A LAUNCH OF A NEW BRAND....................................................19
I.
Executive Summary
This research is undertaken by a group of four from the 2011-2013 MBA Operations batch of SIOM. The research has been conducted under the able guidance of Bhibuthi Tripathi Sir. The topic of the research undertaken is KIMO LAUNCHING TWO-WHEELER IN NASHIK. It has been undertaken with a view of a market survey so as to take a decision if it would be feasible for the company KIMO to launch its two-wheeler in Nashik. The responses from residents, two-wheeler show-room and service-centers have been taken regarding their view on the usage of two-wheelers. Also the study of the demand of the customers is incorporated in the report. The various segments in which two-wheelers are desired or in other words in which there is a dearth of two-wheeler for that particular demand/requirement has been found out from the data. 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 favourite among the youth generation, as they help in easy commutation. A large variety of twowheelers are available in the market, known for their latest technology and enhanced mileage. Indian bikes, scooters and mopeds represent style and class for both men and women in India. The research was conducted by Primary collection of Data. A Questionnaire consisting of 17 questions was duly filled by the local residents of Nashik through e-mails, Google docs and through personal meetings. 100 replies were received. The sample size for the research is the number of responses received i.e. 100. Google Docs & Microsoft Excel were the two tools used for the analysis and Interpretation of data. Limitations of the research are: The sample size which is 42 here could have been larger. Time and other constraint led to the reduction in size. Questionnaire could have been designed to incorporate more areas. We assume that respondents of this survey represent the entire population of Nashik.
Our recommendations to bring about consensus to this study would be to take up Promotional activities and reasons ascertaining the feasibility of the launch should be done at larger extent.
II.
i.
Introduction
Background
In a bid to expand their horizon in the Indian market, the Japanese auto giant, KIMO (dummy company) will be introducing electronic two-wheeler soon. India KIMO Motor, which is the Indian branch of the KIMO Auto, is actively involved in the production of the bikes. The bikes from this company will be out in the near future. That is not all to strengthen their presence in the potential Indian market they will also be introducing two new bikes. This may also materialize sometime in the coming days. The introduction of the electric bikes is certainly the need of the hour. The fuel prices are constantly rising and so are the pollution levels. KIMO is already successfully selling electronic two-wheelers in not only Japan but also in many parts of Europe. Therefore, the possibility of a potential Indian market cannot be overlooked. But there were not many details available on the specifications of the bike or the time when these bikes would be launched in India. KIMO feels that India is a potential market for them. That is why they are planning to invest heavily here. They expect at least 10 per cent of their total global sales to be from India alone. However, they have set this target for the next three to four years. The company is also planning to enter the scooter segment in India very soon. The production is under development in their factories back in Japan and they are likely to show up anytime in the coming days as they are already behind schedule.
ii.
Conceptual Review of the project Area

Nashik is a very fast growing city having a number of two-wheeler showrooms and service centers across the city. The city is well connected by roads and the public transport is averagely used by the local residents. In this part of the report we will concentrate on the market study to check the feasibility of launching a two-wheeler of a new brand in Nashik using the dependent, independent variable and moderating variables. The preference of a certain two-wheeler (dependent variable) is a variable which depends on factors like gender, requirements, interests, affordability and a multitude of such other factors (independent variable). Also influencing the dependent variable are factors like presence of external factors like conditions of roads in Nashik (moderating variable).
iii.
Problem Statement
To study the market and demand in the sector of automobiles specifically two-wheelers to check the feasibility and acceptance of the launch of a new brand of two-wheeler- KIMO in Nashik City.
iv.
Research Objectives
The objective of this research is to determine the customer as well as retailers preferences regarding different brands of motorcycles which result in their market share. It involves the study of consumers buying behavior and attitudes towards a variety of attributes and factors, which help them in decision-making. The brand we chose to focus on was a new entrant in the market named KIMO. We designed a questionnaire to survey various dealers and consumers to understand the demand and supply situation of the bike market. Secondary data from the internet has also been used for effective analysis.
Two-wheelers are the most popular and highly sought out medium of transport in India. The trend of owning two-wheelers is due to its Economical price Safety Fuel-efficient Comfort level
However, few Indian bike enthusiasts prefer high performance imported bikes. Some of the most popular high-speed bikes are Suzuki Hayabusa, Kawasaki Ninja, Suzuki Zeus, Hero Honda Karizma, Bajaj Pulsar and Honda Unicorn. These super bikes are specially designed for those who have a zeal for speedy drive. This analysis was done for the residents of Nashik.
a. Primary Research Objective To study the demands of residents of Nashik and to check for the viability of the launch of new two-wheeler brand named KIMO in the city as there has been noted a trend towards purchasing a two-wheeler over a four-wheeler. b. Secondary Research Objective Along with the feasibility study we would also check for the inclination of the local residents towards the basic requirements and the external factors considered during the purchase of a two-wheeler that would in turn help us modify/customize the existing automobile as per the general requirements.
III.
i.
Research methodology
Definition & Scope of Project
The project aims at studying the market pattern for launching a two-wheeler in Nashik. The study aims at investigating the basic tastes and preferences of localities and potential market for different segment of two wheelers. Scope of this project is to target the potential customers in different segments of the 2 wheeler market. The issues of tastes, preferences, financial position, brand image, and many other aspects related to age, sex and profession have been considered in this survey. What we have tried to concentrate over here is just the qualitative and factual analysis of the perception of localities about the 2 wheeler market and tried to bring out new product in different segments with greater value. As far as the applicability of this research or the aptness to be used in the real environment is considered the use of it will be made by KIMO in making suggestions to the management in terms of future strategies. Further this dissertation will also serve as a basis for carrying out subsequent researches on the factors affecting the people buying 2 wheelers and this is a trend which is prevalent across the country so as to come up with certain data for analysis in the similar field and context in other parts of the country.
ii.
Sampling Design
We have considered random sampling as we had to concentrate on all the people in the society. The sample size on which analysis has been done is 42. All the people belong to different sex, age, segments of society including different family backgrounds.
iii.
Research Design
a. Data Collection Techniques Our research is completely based on Primary Data. The respondents were contacted directly for providing the information on which the entire research has been conducted and analysis has been performed.
b. Sampling Plan The entire population of over 100 people were contacted by the following means: a) b) c) In person Through E-mails Social Networking sites
The number of respondents met in person was equal to 10. Responses from all the respondents met in person were received. The size of population which was contacted through E-mails was 52. However, the numbers which had responded was not the same to the size and was equal to 27. The number of people who responded through social networking sites were 5. Hence, our research and analysis is based on the number of responses received, i.e. on a sample size of 42.
c. Instruments There are two types of instruments which are used for the researcha) b) For data collection For data analysis
The instrument used for data collection was a Questionnaire. The Questionnaire consisted of sixteen questions covering the areas about
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preferences and financial constraints of the people. A copy of the questionnaire is provided in Annexure 1. The instrument used for data analysis is Microsoft Excel (version 2010)
iv.
Data collection
Data has been collected through questionnaires filled up by people from various backgrounds. The breakup of the various types of questions is given below: Question related to the financial backgrounds of people Questions related to preference and likings Questions related to identity
All the questions were multiple choice types and one question was descriptive
v.
Data analysis
In our report the process followed for data analysis is given below: a) Converting the qualitative data into quantitative data. This was done by studying all the options available in the various multiple choice questions. b) Segregating the analysis on the basis of different income groups c) Construction of pie charts to have a visual display of the responses obtained. d) Interpretations given on the basis of the graphs constructed. e) Listing down the key areas where we need to focus on. Here, the Data Analysis has been done by plotting graphs in Microsoft Excel and finally analyzing the data to come to a conclusion.
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vi.
Limitations
The research project conducted by us has certain limitations of its own. These are mentioned below: a) The sample size which is 42 here could have been larger. Time and other constraint led to the reduction in size. b) Questionnaire could have been designed to incorporate more areas. c) We assume that respondents of this survey represent the entire population of Nashik.
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IV.
i.
Analysis & Findings

About our respondents
The first pie chart which we have drawn is on the basis of the composition of the sample in terms of their gender. The analysis can be used as a basis for some inferential researches on why there is a disparity if any between the issuing patterns of men and women.
Figure 1: PIE CHART FOR GENDER DISTRIBUTION
The next diagram is a bar chart explaining the profession of different respondents.
2% 5% 9% Working in a private company Government employee 24% 60% Self employed Other Student
Figure 2: BAR CHART FOR VARIOUS PROFESSIONS
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The third figure explains the annual family income of the respondents showing their financial status.
16 14 12 10 8 6 4 2 0 Upto Rs. 2,00,000 5 8
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Rs. 2, 00,001 4, Rs. 4,00,001 Rs. 6, 00,001 8, More than Rs. 00,000 6,00,000 00,000 8,00,000
Figure 3: Annual family income of the respondents
The fourth figure gives the reason for the respondents to not own a twowheeler at present. This helps us in identifying the problematic area that we need to concentrate on.
Other I am satisfied with alternate mode of transportation like bus, rickshaws, etc. Do not know how to drive/Afraid of driving Two wheelers in the market do not meet my requirements Financial constraints No real need 0 2 4 6 2 2 3
7 8
10 8 10 12
Figure 4: Reason of not owning a two-wheeler
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The fifth figure shows the mode of transport used by the respondents at present. This will give us an idea about the people that we can concentrate on selling our product.
Figure 5: The medium of transport used by the respondents at present
From the above graphs and data, we come to know that a majority of our respondents are male students with a family income of 4-6 lakhs per annum.
ii.
About the market requirement

The sixth figure shows the type of two-wheeler that the respondents would like to have. This gives us an idea on the two-wheeler segment that we need to concentrate on.
Figure 6: The type of 2 wheeler required in the market
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The seventh figure shows the amount that the consumers are ready to pay for a two-wheeler. This gives us an idea about the price range that we should concentrate on selling our product.
Figure 7: The price range of the 2 wheelers required by the consumers
The eight figure shows the features that a consumer gives more value to. Hence, by concentrating on mileage and riding comfort, we can address the needs of a major part of the customers.
Figure 8: The feature in a 2 wheeler which is most valued by customer
The ninth figure shows the engine capacity the customer would like to have. As we see from the graph, there is equal demand for all the capacities.
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Figure 9: Engine capacities that respondents prefer in their 2 wheeler
Hence, from the above graphs and data, we can say that there is maximum demand for a bike in the price range of Rs. 30,000 50,000 which can give a good mileage and ride comfort.
iii.
Market for new brands

This Graph shows that a segment of people are interested in trying a new brand rather than going for existing major brands like Honda.
25 20 20 15 10 5 0 Hero Honda Honda Bajaj Suzuki Mahindra Other 9 7 3 3 0
Figure 10: Different brands which people would like to buy a 2 wheeler
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This graph shows that majority of the people are willing to buy a two wheeler within a year. This clearly gives us indication that KIMO can think of launching a new product as demand is bound to increase.
Figure 11: Time within which customers would like to buy a 2 wheeler
Graphs below shows that people may buy a two-wheeler of a new brand. Hence KIMO has a good chance to compete against existing brands with a good product offering attractive features.
18%
Yes . I would go for a new brand. No. I would go for a well-known brand Not Sure
61%
21%
Figure 12: Probability of a new entrant its products in 2 wheeler segment Figure 13: Probability of KIMO selling its products in 2 wheeler segment
iv.
Customer Delight
The graph shows that about half of the respondents may require loans hence KIMO needs to tie up with financial firms to offer loans at low EMI. This will also help in marketing our product as compared to other products in the market.
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Figure 14: Whether people need a loan for buying a 2 wheeler
The following graph shows us the residents reaction to the condition of roads in Nashik If it is feasible to launch a super-bike.
Figure 15: Whether people feel Nashik roads are good enough to launch a super-bike
The following graph shows if the customers are open to a new brand being launched in the market
Figure 16: Customers open to a launch of a new brand
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V.
Conclusions & Recommendations

Though the analysis was not up to the desired extent and there are lots of areas which can be further strengthened to do more fool proofing. Still there are certain conclusions which can easily be derived. Conclusion: The maximum buyers are of the age group 24-30, hence it can be interpreted as being popular in college going youth. A majority group belonging to the pulsar kind of bikes is more from the income group category 3-5 & 5-10 lakh group The maximum number of bikes lie in the range between 40-50 thousands which is also a USP of Pulsar as it is almost near to the given range and provides a better value for money. The youth were more inclined towards the adventure part of bikes looks, consult friends, use television and internet and prefer style and value the most whereas for the elders go for household and office, mileage, family, print, value and brand before making a bike purchase. Annual incomes have a direct correlation with increasing demands of consumer also. Pulsar overall enjoys a favorable demand among all the categories and consist of maximum alluring qualities amongst the tested ones.
Recommendations: Promotional activities should be taken up and reasons ascertaining the feasibility of the launch should be taken up at larger extent.
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VI.
Bibliography/ References
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. EBSCO HOST(database) PROWESS(database) INDIA STATS(database) Peterson, Lewis and Jain: Managerial Economics www.bajajauto.com http://auto.indiamart.com/motorcycles/bajaj-pulsar http://www.fadaweb.com/two_wheeler_industry.htm http://www.auto.indiamart.com/motorcycles www.iloveindia.com/bikes/index.html www.infibeam.com/bikes/make/herohonda.html http://www.bikes.whereincity.com www.bikesalesindia.com www.infibeam.com/bikes/make/bajaj.html www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.html www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.html
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ANNEXURE
The Research Questionnaire is as follows
Name: Age / DOB: Gender: Male/Female Mobile: E-mail ID:
1. What is your profession?

Student Working in a private company Government employee Self employed Any other
2. Annual family income: UptoRs. 2,00,000 Rs. 2, 00,001 4, 00,000 Rs. 4,00,001 6,00,000 Rs. 6, 00,001 8, 00,000 More than Rs. 8,00,000
3. Do you own a two wheeler? Yes No 4. If No, why do you not own a two wheeler at present? (You can tick more than one) No real need Financial constraints Two wheelers in the market do not meet my requirements Do not know how to drive/Afraid of driving
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I am satisfied with alternate mode of transportation like bus,rickshaws,etc. Other:
5.Average distance travelled by you in a week? 0-100kms 101-200 201-300 More than 300 I don't keep track
6. Which brand two-wheeler do you own/ wish to own? Hero Honda Honda Bajaj Suzuki Mahindra Any other
7. How do you travel at present? Bus Auto Rickshaw Company vehicle Two-wheeler Walk Any other
8.What kind of two wheelers do you prefer? Motor bike Scooter Moped/Scooty Electric Any other
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9. Do you need a loan? Yes No Cant say
10. When are you planning to buy a two-wheeler? Within a month Within a year Within 5 years Not sure Dont want to buy
11. What is the price range you are looking for? Less than Rs. 30,000 30,000 50,000 60,000 80,000 80,000 1,20,000 More than 1,20,000
12. Would you buy a two-wheeler from a new company entering the market? Yes No Maybe
12. What is more important for you in a 2 wheeler? Mileage Power Style Riding comfort Low weight Any other
13.What is the engine capacity (CC) you are looking for in a 2 wheeler?
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Less than 100 cc 100cc to 125cc 126cc to 150cc 151cc to 180cc Above 180 cc I don't know 14.Would you prefer a low cost bike verses a high-end bike having comparable parameters in terms of Aestheticvalue and Comfort? Yes No Not sure
15. Do you think roads and traffic in Nashik are feasible for driving a super-bike? Yes No Not sure
16. Have you heard about KIMO? Yes No Not sure 17.KIMO is launching a new two wheeler. Would you go for a 2 wheeler from a well-known brand or think of buying a 2 wheeler from a new brand like KIMO offering excellent features. Yes No Not sure
Any suggestions to improve our sales and services. ..
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Thank you for taking your time to fill the survey. Have a good day!
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KIMO Launching Two-Wheeler in Nashik: Research For Managerial Decisions

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KIMO Launching Two-Wheeler in Nashik

Research for Managerial Decisions