Automotive after market

“Automotive Aftermarket- A Sneak peek”

Submitted by

Arijit Saha

Roll No: 1121025 (MBA-2nd yr, Sec-I)

Under the guidance of

Prof.Raman Sreedhara, Professor and Coordinator,

Institute of Management

A Report
Submitted in Partial Fulfillment of
the Requirements for the Award of the Degree of
Master of Business Administration

Bangalore, India
2012

Adelaar Motorcycle Pvt Limited 2
Automotive Aftermarket- A Sneak peek

DECLARATION

I, Arijit Saha, hereby declare that the Summer Internship Project report entitled
has been undertaken by me for the award of Master of Business Administration. I
have completed this study under the guidance of Prof. Raman Sreedhara
, Institute of Management, Christ University.

I also declare that this project has not been submitted for the award of any Degree,
Diploma, Associateship or Fellowship or any other title in this University or any other
University.

Place: Bangalore Arijit Saha
Date: 25/06/2012 Register No: 1121025

Christ University Institute Of Management


CERTIFICATE

This is to certify that the Summer Internship project report submitted by
Arijit Saha on the title “Automotive Aftermarket- A Sneak peek” is a
record of research work done by him during the academic year 2011-
2012 under my guidance and supervision in partial fulfillment of the
requirements for the award of the degree of Master of Business
Administration. This dissertation has not been submitted for the award of
any Degree, Diploma, Associate ship or Fellowship or any other title in
this University or any other University.

Place: Bangalore Prof. Raman Sreedhara

Date: 25.06.2012



Certificate Issued by the organization to be pasted here.



ACKNOWLEDGEMENT

I am indebted to many people who helped me complete this project
report.

First, I thank the Vice-Chancellor Dr. (Fr.) Thomas C. Matthew and Pro
Vice-Chancellor Dr.(Fr.) Abraham V. M of Christ University for giving me
the opportunity to do this project.

I thank Fr. Thomas T. V., Director, Christ University Institute of
Management and Prof. C. K. T. Chandrasekhara, Head-Administration for
their kind support.

I thank Prof.Raman Sreedhara for his support and guidance during the
course of my project. I remember him with much gratitude for his patience
and motivation, but for which I could not have submitted this work.

I am extremely grateful to the Badarinarayan.R.Garani, Adelaar
Motorcycle Private Limited, for their invaluable contribution towards
conducting this study.

I thank my parents for their blessings and constant support, without which
this dissertation would not have seen the light of day.

Arijit Saha



TABLE OF CONTENTS

DECLARATION ii
CERTIFICATE iii
ACKNOWLEDGEMENT iv
TABLE OF CONTENTS v
LIST OF TABLES vi
LIST OF GRAPHS vii

1. INTRODUCTION

2. INDUSTRY PROFILE

2.1

2.2

2.3

3. COMPANY PROFILE

3.1

3.2

4. OBJECTIVE AND STATEMENT OF PROBLEM

4.1 STATEMENT OF THE PROBLEM

4.2 OBJECTIVES OF THE STUDY

4.3 DATA COLLECTION TOOLS ( for type 2)

4.4 SALES TARGETS SET ( for type 1)

5. LITERATURE REVIEW & CONCEPTUAL FRAMEWORK

5.1



5.2

6. DATA ANALYSIS & INTERPRETATION ( For Type 2 project)
METHODS / TOOLS USED FOR ACHIEVING SALES TARGETS / INCREASING
AWARENESS etc ( For Type 1 project )

7. FINDINGS AND SUGGESTIONS

7.1 FINDINGS

7.2 ACTUAL SALES NUMBERS ACHIEVED etc ( type 1)

7.3 SUGGESTIONS

8. CONCLUSION

9. BIBLIOGRAPHY

10.ANNEXURE

QUESTIONNAIRE



LIST OF TABLES

Ref. No: List of Tables Page No:

6.1 40

6.2 41

6.3 43

6.4 44

6.5 45

6.6 46

6.7 47

6.8 48

6.9 49

6.1 50

6.11 51

6.12 52



LIST OF GRAPHS

Ref. No: List of Graphs Page No:

6.1 40

6.2 41

6.3 43

6.4 44

6.5 45

6.6 46

6.7 47

6.8 48

6.9 49

6.1 50

6.11 51

6.12 52



INTRODUCTION

Motorcycling has a long, rich history that runs from the late 1800s to today. And
that history has almost as many twists and turns as your favorite mountain road.
From the first motorcycle, which was either simply a wooden testbed for a motor
or a steam-powered bicycle, depending on which side of the debate you‟re on –
to the hyper bikes of today that are so fast that some governments have even
threatened to limit their speed, the world of motorcycling has gone through a lot
of changes.

We can easily romanticize the past, but glory days of motorcycling are right
now. Some 6 million motorcyclists share a passion for this timeless sport. Bikers
today ride a wide variety of reliable, state-of-the-art machines; they watch the
fastest racers ever grow a leg over a motorcycle seat; and they buy the most
innovative and protective motorcycling gear ever produced irrespective of its
cost. If ever there was a great time to get into motorcycling, it is now.



THE INDIAN TWO WHEELER (2W) INDUSTRY

The Indian two wheeler industries recorded a sales volume of 3.4 million units in
Q3, 2011-2012, a growth of 11.0% (YoY) but flat (QoQ). The YoY volume
growth of the industry remained in double digits, but the growth attained during
the last quarter was the lowest among the last three years. The overall retarded
growth was contributed by the motorcycle segment, which grew at a much lower
rate of 9.2% (YoY) in Q3, 2011-2012; whereas the scooter segment continued to
post a growth of 20%+ (YoY). Overall, ICRA expects the domestic 2W industry
to report a volume growth of 13% in 2011-12 as the growth is expected to fade
further in Q4, 2011-12 due to the base effect.

In an environment where the northward movement of
inflation, fuel prices and interest rates has been the nemesis of Indian automobile
industry at large, the 2W industry has been the most resilient which has reflected
in its healthy growth of 15% (YoY). The growth has been supported by various
external and internal factors attached with the domestic 2W wheeler industry
which includes favorable demographic profile, moderate 2W penetration levels,
developed public transport system, growing urbanization and expected strong
replacement demand, beside moderate share of financed purchases.

ICRA 1expects these strengths, coupled with OEM‟s
thrust on exports, to aid the 2W industry to report a volume CAGR of 10-12%
over the medium term to reach a size of 21-23 million units (domestic + export)
by 2015-16.

1
http://www.icra.in/Files/ticker/Indian%202W%20Industry,%20Update,%20Feb%202012.pdf



Chart-1: Trends in motorcycle sale by engine capacity

75-125 cc 125-250 cc >250 cc

78%
71% 69% 70%

28% 29% 27%
21%

1% 2% 3%
0%

2007-08 2008-09 2009-10 2010-11

Source: SIAM, ICRA estimates.

Competition likely to intensify in the entry segment in the near term

HHML is currently the clear market leader in the entry segment, enjoying a
market share of close to 70%. The company has a portfolio of six models in the
100cc segment in the Rs. 35,000-45,000 price band and continues to maintain a
dominant market position led by its Splendor and Passion series of motorcycles.
HHML‟s strong franchise, wide distribution network, and regular refurbishments
and line extensions of the Splendor and Passion series have allowed it to protect
its turf in the entry segment on a sustained basis. Earlier, intense price
competition and relatively low profitability in the lower end of the entry segment
had prompted BAL (in 2007-08) to diminish its focus on the 100cc segment, and
with that its market share dropped to 17% in 2008-09 from 26% in 2006-07.



However, with the launch of Discover 100cc by BAL in July 2009, the company
has made a comeback in the 100cc segment.

This has supported volume growth for BAL in the current year, pushing up its
market share in the entry segment to 23% (April January 2010) from 17% in
2008-09.

The launch of new products in the entry segment
augurs well for the enrichment and expansion of the segment. However, the
already high rate of penetration in the urban markets is likely to remain a
moderating factor. Increased competition in this segment is expected to lead to an
increase in below-the-line promotions, thereby squeezing profit margins; this
may get accentuated further by a likely increase in raw material costs in the near
term. Among the entry-segment players, HHML is better placed to meet the
anticipated challenges to profitability, give its larger economies of scale.

OEMs sharpen focus on executive segment, given its relatively superior
profitability. The executive segment (125-250cc) has witnessed significant
activity over the last few years with multiple models and variants being launched
by almost all the original equipment manufacturers (OEMs). The lower end of
the executive segment features HHML‟s Super Splendor and Glamour; BAL‟s
Platina 125, Discover 135 and Pulsar 135; TVS‟ Flame; HMSI‟s Shine and
CBF Stunner; and Suzuki Motorcycle India Pvt Limited‟s (SMIPL‟s) Heat and
Zeus. The upper end has HHML‟s troika of CBZ, Hunk, and Karizma; BAL‟s
Pulsar series; HMSI‟s Unicorn; SMIPL‟s GS 150R; TVS‟ Apache; and four
offerings from the Yamaha stable.



The executive segment hails its origin to the year 1999 when HHML launched
the sports-oriented CBZ (sporting the Honda 156.8cc engine), giving customers
the option to graduate from plain-vanilla commuting to performance biking. This
was followed by the launch of Pulsar 150 and Pulsar 180 models by BAL in 2001
which paved the way for high sales growth in this segment capitalizing on the
latent demand. While entry-segment motorcycles typically offer higher fuel
economy and lower operating costs, performance bikes are characterized by
features such as higher speed, quicker acceleration, and superior ride, handling
and braking.

With increasing disposable incomes in the hands of customers in a growing
economy, executive segment motorcycles appear to have caught the fancy of
customers and seem to hold a strong growth potential in India over the long term.
While most 2W OEMs operating in India now have a presence in the executive
segment, BAL is the current market leader, accounting for almost half the sales in
the segment. BAL‟s presence in the segment is marked by its flagship brand
Pulsar, which is available in the 150cc, 180cc and 220cc variants.

However, BAL‟s market share in this segment has seen
some erosion over the last five years because of increased competition; from 70%
in 2005-06, its market share has come down steadily to the level of 47% now
(April-January 2010). Also, with a host of new products being launched by
HMSI, HHML, Yamaha, TVS and SMIPL over the last five years, the segment
has witnessed increasing competition in both the 125cc and 150cc sub-categories.
Yamaha, Honda and Suzuki are strong global brands, but given their relatively
short track record in India, their ability to succeed here is yet to be tested.



Outlook for the executive segment

Investment in brand-building assumes far greater significance now than earlier
with Indian customers turning more demanding and competition also
intensifying. Since bikes in the upper end of the executive segment also have an
aspirational value attached, the ability of OEMs to build strong brands in this
space could have a positive rub-off on their entry-segment offerings as well.
Thus, going forward, the executive segment is expected to claim a greater share
of marketing spends.

Increased activity is expected at the higher end of the
executive segment, in which global majors like Honda and Yamaha are likely to
leverage their global portfolios to launch models in India. Given their currently
low base, some of these players may be expected to generate strong growth,
causing some market share erosion for market leader BAL over the medium term.
While the launch of Pulsar 135 is expected to make up for the anticipated loss of
volumes of its bigger cousins, the risk of Pulsar‟s brand dilution cannot be ruled
out. The executive segment is expected to be able to maintain its volume growth
over the medium term, which should translate into superior profit margins for
players that are stronger in this segment.



Premium segment remains a niche, although proposed launches would
expand the market:

The premium segment of motorcycles in India (>250cc) is currently dominated
by Eicher Motor Limited‟s Royal Enfield, which offers motorcycles in the 350cc
and 500cc categories; HMSI, Yamaha, and SMIPL are the other prominent
players here. While Royal Enfield‟s products are in the category of cruiser bikes,
the other players‟ products are sports bikes. These machines are designed to
deliver high power, come packed with technology, and accordingly command a
premium price. Many of the models launched earlier in the premium segment had
met only limited success; for instance, Yamaha‟s Enticer, Kawasaki-Bajaj‟s
Eliminator, and Kinetic‟s Aquila showed promise in the initial months of their
launch, but later had to be discontinued. Given the low volume potential of these
bikes, some of the other large players in India like HHML and TVS have stayed
away from this segment.

Outlook for the premium segment2:

This market offers large scope for segmentation in terms of price points and
performance characteristics. Also, the premium segment is expected to get
crowded as new players like Harley Davidson, Ducati, and Kawasaki gear up to
expand their presence in it. Further, BAL, SMIPL, and HMSI have a pipeline of
multiple products that are slated for launch in 2010-11. Given the premium and
niche character of these bikes, the volume base is likely to remain small over the
medium term. The low volumes of products in this segment do not justify
investments in localization of parts.

2
http://www.icra.in/Files/Articles/2010-February-Two-Wheeler.pdf



Hence, most of the new products planned to be launched are either likely to be
imported as completely built units (CBUs) or they would have a high import
content. Thus, product prices are likely to remain high over the medium term,
which in turn could curtail growth prospects. While it is true that these products
are not meant for the mass market, considering the increase in customer
awareness levels, OEMs cannot afford to ignore the price-value equation
altogether.



KEY DRIVERS BEHIND THE GROWTH OF TWO WHEELER
INDUSTRY.3

Working
population.

Rising
Rapid
urbanization
income
levels
Growth
Drivers

Skilled Booming
manpower rural market.

Working population: In India 60% of the population is in the working age
group (15 to 64 years).So three fifth of the population comes under the
earning category. By 2015 forty four million household is expected to join
the income band of ($8870-$10960).i
Rising income levels: The income level of the population is increasing
with a steady growth. The personal disposable income is expected to
increase annually at the rate of 8.5% till 2015.

3
Sources: „Dreaming with BRICS- The path to 2050‟, Goldman Sachs; NCAER; Morgan Stanley, CRISINFAC, Wikipedia, IBEF



Booming rural market: Market penetration is done by exposing the
untapped rural market which consist a base of 720 million consumers
across 627,000 villages.
Skilled Manpower: India consists of 2nd largest pool of certified
professionals and also equipped with highest number of engineers in the
world.
Rapid urbanization: With continuous level of growth urbanization in India
is expected to increase up to 35% by 2025. 140 million rural populations
estimated to move to urban areas by 2020.



TWO WHEELER AUTOMOTIVE AFTERMARKET

The Automotive Component Manufacturers Association (ACMA) 4‟ has
announced the findings of first of its kind study on the „Indian automotive
aftermarket‟. The aftermarket in India of the „on-road‟ vehicles is valued at INR
330 billion with 25 per cent on account of servicing (labor charges) and the
remaining from components, putting the total components aftermarket at around
INR 248 billion. Two-wheelers are the top contributors to the total aftermarket at
46 per cent. So the overall figure for the two wheeler aftermarket industry stands
at 151.8 billion.

• Two-wheelers contributed 49.66 per cent to the total vehicle components‟
aftermarket. Three-wheelers at 2.54 per cent, PVs with 24.68 per cent and CVs
with 23.12 per cent share complete the pie for components aftermarket in 2010.

• The top States for two-wheeler components aftermarket were Gujarat at INR 14
billion, closely followed by Maharashtra at INR 13.9 billion and Tamil Nadu at
INR 13 billion. Amongst cities, Delhi had the highest market size for two-
wheeler components with an aftermarket size of INR 5.5 billion.

• In terms of automotive aftermarket, the replacement frequencies as well as
preventive maintenance behavior was very different in lower tier towns and rural
markets as compared to large cities. These consumer segments are extremely
cost-sensitive, spends are low, preventive maintenance outside warranty is rare
and replacements are often low cost unbranded or even spurious.

4
Source:ACMA,www.acmaindia.com



COMPANY PROFILE



OBJECTIVE AND STATEMENT OF PROBLEM

Statement of the problem: The project caters to three main areas which overall
defines the whole problem statement.

1. Market segmentation of Motorcycle/Two wheeler market in Indian context,
(This is a simplified statement, which tends to explore the Buying Behavior,
Pattern, Key Influences for buying, Points of Sale & Accessibility) .

2. Profile and Analysis of Two wheeler (Premium Lifestyle & Necessity
Accessories) requirement for Indian market. "Basically who is expecting what &
why".
3. Market Sentiments on Gear, Protection, Ecosystem and Motorcycling Habit‟s.

Details of the study: The project title is “Automotive Aftermarket Sneak Peek”
which has been done for Adelaar Motorcycle Pvt Limited. The project title is a
launch of their store which will be positioned as one stop destination for biker‟s
in Bangalore.

The one stop shop which is expected to come up by the end of this year will be
consisting of four different sections and they are as follows.

Gear and Accessories shop
Custom workshop
Performance parts shop
Café and pub



These four subsections altogether will create a motorcycling ecosystem
which will gift a memorable experience to every visitor.
They have already opened their pilot store in Kasturi Nagar, Bangalore
which is only dealing in the gear and accessories for the time being. As
time rolls down they will upgrade or shift the store to the main site.

Data collection methods: Both the primary and secondary data collection
methods were considered. The primary data was collected through a
questionnaire designed exclusively for the study. Secondary data was taken
from Research Papers, Journals, Magazines and Websites.

Sample frame: The sample was selected from the respondents residing in
Bangalore of various age categories owning a high end bike.

Sample design: The study was done on a sample size of 200 in Bangalore
by a data collection method through a proper structured questionnaire from
a sample size of 450 HNI present in a database given by the company
itself. 80 face to face interviews were done, 120 telephonic interviews and
20 interviews were conducted on mail, where the respondents were asked
to fill it up online. Overall a method of convenient sampling was used.



LITERATURE REVIEW

The core group of individuals called reference group provide opinions and
information to the consumers aspiring to products. This group includes spouses,
other family members, friends, co-workers and also sales people (Mallalieu and
Palan, 2006). The opinions are asked in an effort to conform to norms of group
and the society towards which they have tendency to belong (Kinley et al, 2000;
Siegel and Siegel, 1957; and Turner, 1956). Schiffman and Kanuk (1997)
describes reference group as individual frame of reference to guide the purchase
behavior of consumer. Reference group does not confine only to the people with
whom the consumers have direct and /or frequent contact; it rather extends to
other people of the society as well who may not necessarily have the direct
contact with the consumers (Hawkins et al, 1998). There are three major types of
reference group of influences: informational influence, utilitarian influence, and
value expressive influence (Bearden and Etzel, 1982).

Informational influence improves one‟s knowledge and ability to
cope with the environment. Utilitarian influence helps in obtaining praise or
avoiding punishment from the group due to non-conformance. Value-expressive
influence helps one to express oneself to the society by making oneself similar to
the group one intends to belong to.

There is an association between price of the product and the
involvement level of the consumer. The higher the price, more involvement of
the consumer is likely to be (Laurent and Kapferer, 1985). The purchases of
durable goods due to their longevity are generally considered high involvement
purchases. People in a richer country tend to be more individualistic because
wealth does not necessitate the assistance of others. Claxton et al (1974) found



educated consumers and with high income visiting stores for the procurement of
information. Keil and Layton (1981) in their study on the behavior of Australian
new family car buyers observed majority of people using interpersonal source of
information. The study explored the positive relationship between price of the
product and search behavior. Also the consumers with least self confidence went
for greater search activity. The consumers who make repeat purchases have to
engage less in search activity.

A research journal by Hossein Nezakati (2011), Department of
Management and Marketing, Faculty of Economics & Management, University
Putra, helps us to understand the consumer purchasing behavior in term of price,
quality, value, risk, beliefs, and perception and so on in order to come out with
more effective marketing strategies. This study was conducted in Malaysia and
on four wheeler segment. The study shows that the buying behavior is heavily
influenced by the brand equity of that particular brand; the higher the brand
equity the higher the chances of buying that four wheeler. The higher brand
equity also suggests safety of driving that machine.



CONCEPTUAL FRAMEWORK

Market Segmentation: The market for a product is nothing but the aggregate of
the consumer of that product. The consumer of each and every product varies in
needs, motivation, characteristics and buying behavior. Each and every market
for a product is a heterogeneous unit. Marketers break up the overall
heterogeneous market for product into several sub units or sub markets, where
each of the sub units are homogenous in nature within itself, compared to market
into a number of sub markets or sub units of buyer, each with relatively more
homogeneous characteristics is known as market segmentation.

Why segment the market?

Market segmentation benefits the market in several ways.

Facilitates the right choice of target market- It helps the marketer to select
the target market properly, which in turn helps him to distinguish one
customer group to other customer group in the market. This helps him to
show the right segment to match his situation and demand.
Facilitates effective tapping of the chosen market- Segmentation helps the
market to crystallize the needs of each of the chosen market and make
offer to match them. The marketers can adapt the offers to particular target
segments to achieve the specialization required in product, distribution;
promotion and pricing for matching the particular customer base and can
develop marketing offers to appeal them.



Makes the marketing effort more efficient and economic- Segmentation
also makes the marketing more efficient and economic. It ensures that the
marketing effort is concentrated on selected and well defined segments.
After all, for most firms the resource would benefits if its efforts were
concentrated on selected segments-the ones that match the firm‟s resources
and are most productive and profitable.



Go-To Market Strategy

Go-To-Market strategy refers to the channels that a company will use to get in
touch with its customers or business and the organizational processes it develops
(such as high tech product development) to guide customer interactions from
initial contact through fulfillment.

A firm's Go-To-Market strategy is the mechanism by
which they propose to deliver their unique value proposition to their target
market. That value proposition is based on the choices the business has made to
focus on and invest in markets and solutions that they believe will respond
positively to the increased attention.

The main focus of this marketing exercise is to target the direct
consumer or the one authority that makes the buying decision.

What
to sell

Go-To
Market

How to Who to
sell sell

Go-To Market strategy.



Marketing Strategy involves WHO the firm will go after and WHAT it will offer
them. Go-To-Market strategy is a component of the overall marketing strategy
and is concerned with HOW the firm will make it happen.

Go-To Market is a strategy mainly used by marketers of goods that are not for the
mass market. This strategy is specially used by start-ups to take their product to
the market.



RESEARCH METHODOLOGY

Details of the study: The project title is “Automotive Aftermarket Sneak Peek”
which has been done for Adelaar Motorcycle Pvt Limited. The project title is a
launch of their store which will be positioned as one stop destination for biker‟s
in Bangalore.

The one stop shop which is expected to come up by the end of this year will be
consisting of four different sections and they are as follows.

Gear and Accessories shop
Custom workshop
Performance parts shop
Café and pub
These four subsections altogether will create a motorcycling ecosystem
which will gift a memorable experience to every visitor.
They have already opened their pilot store in Kasturi Nagar, Bangalore
which is only dealing in the gear and accessories for the time being. As
time rolls down they will upgrade or shift the store to the main site.

Data collection methods: Both the primary and secondary data collection
methods were considered. The primary data was collected through a
questionnaire designed exclusively for the study. Secondary data was taken
from Research Papers, Journals, Magazines and Websites.

Sample frame: The sample was selected from the respondents residing in
Bangalore of various age categories owning a high end bike



Sample design: The study was done on a sample size of 200 in Bangalore
by a data collection method through a proper structured questionnaire from
a sample size of 450 HNI present in a database given by the company
itself. 80 face to face interviews were done, 120 telephonic interviews and
20 interviews were conducted on mail, where the respondents were asked
to fill it up online. Overall a method of convenient sampling was used.



ANALYSIS
&
SUGGESTION



POPULATION SAMPLE

36-55 18-23
20% 22%

29-35 24-28
28% 30%

Chart 2: Population sample size-200

The sample size was decided to be 200 due to the factor as maximum of
the sample units were HNI (High networking individuals) and time also
adding up being another constraint. The interviews were done by taking
prior appointments from a database of 450 customers who owns high end
bikes provided by the company, where 80 interviews were done in person
and 100 were done on telephone. The rest 20 interviews were done by mail
where the respondents were asked to fill up the questionnaire online.

18-23 age groups: The respondents were fragmented to this age group
because it is assumed that the respondents are not married and still
going through college life. So the purchasing power is assumed to be
low as they are they are not earning members of their family. Even the



purchasing decision of any product is also influenced by a lot of other
constraints which are normally not under their control.
24-28 age groups: The respondents of this age group were fragmented
into this category because it is assumed that at this age most of our
respondents were an earning member of their family. It is also assumed
that the respondents are not married, so their disposable incomes are on
the higher side. This age also gives you the freedom to express or
realize your dreams as they are backed up by the purchasing power.

into this category on the basis of assumption that at this age, the
respondents have started their family and the disposable income is
channelized towards family building process. It‟s also considered that
the income level has also grown with time for this age group.

together because at this age the disposable income is on the higher side,
so the lifestyle will be hugely different from the other age categories. At
this age, status symbol is also one of the important factors. This age
group as assumed have higher craving to socialize with the likeminded
people. Hence number of social outings is also on the higher side.



CUSTOMER
PROFILING
&
PERFORMANCE
UPGRADATION



IS THIS YOUR 1ST MOTORCYCLE???

57% respondents were new to the overall
18-23 experience of biking as they were the 1st
NO time owner of a motorcycle. The rest 43%
43% of the respondents had already moved over
YES from their 1st motorcycle and upgraded
57% them to a better one.

30% respondents were new to the overall
24-28 YES experience of biking as they were the 1st
30% time owner of a motorcycle. The rest 70%
of the respondents had already moved over
from their 1st motorcycle and upgraded
NO
them to a better one.
70%

29-35 YES 12% respondents were new to the overall
experience of biking as they were the 1st
12%
time owner of a motorcycle. The rest 88%
from their 1st motorcycle and upgraded
NO them to a better one.
88%

36-55 YES 13% respondents were new to the overall
experience of biking as they were the 1st
13%
time owner of a motorcycle. The rest 87%
NO from their 1st motorcycle and upgraded
them to a better one.
87%



The above data shows that the number of 1st time buyers in two wheeler
category (high end bikes) is continuously decreasing with the increasing
age. As the shelf life of motorcycle are assumed to be near about 5 years
with minimum maintenance, so there has been a tendency observed among
the respondents to upgrade their bike within that certain timeline and sell
of the old one to get the maximum resale value.
As the frequency of changing motorcycle increases
it also establishes the fact that the changing of gears and accessories also
goes hand in hand. So if we can target our customers at young age and be
partner in their motorcycling passion till the time they call it a day, than it
will be beneficial for us. The numbers of new customers are very rare and
few in the higher age category and the majority chunk lie in existing two
wheeler owner. So the customer retention should be our main objective.

NO OF MOTORCYCLES OWNED



1 2 3 >3

56%
52% 53%

42%

33%
31%
27% 28%

16%
12% 11%
9% 11%

5% 5%
2%

18-23 24-28 29-35 36-55

The above data shows that the pattern is pretty same except the age group
of 29-35 where the respondent owning two motorcycles forms the majority
with 42%. Apart from that the data scales up to the expectation where
respondents owning more than three motorcycles forms the minority in
terms of percentage except in the age category of 18-23 where the lowest
percentage is of respondents who exactly own three motorcycles only.
So it‟s clearly visible irrespective of the age
approximately 48% of respondents who were surveyed own more than 1
motorcycle and these are the customers who are more into passionate
biking. As the number of motorcycle increases, the maintenance charges
and amount being spent for performance parts will also increases. So in
future we can also segregate our customer base with respect to the number



of two wheelers owned by the customers because the need will be varying
with the number of motorcycle being owned.

IMPORTANCE GIVEN TO PERFORMANCE OF MOTORCYCLE


80% 80%
80% 75%
70%
70%
60%
50%
40%
28%
30% 20% 21%
15%
20%
10% 4% 5%
0% 1%
0%
18-23 24-28 29-35 36-55

VERY IMPORTANT IMPORTANT NEUTRAL

This data shows us people who ride motorcycle for sheer passion and not
for commutation are more performance oriented and performance is a very
important criterion for them. The two age segments which put more stress
on the performance part are the two extreme age category mentioned
above. The adrenaline rush can be a reason for the 18-23 age categories, so
they want to get the maximum out of their bike but purchasing power can
be a roadblock for them. The age category 36-55 which can also be termed
as “Baby boomers” are also more into performance stuff but the best part is
that here the need is also backed up by high purchasing power.

PERFORMANCE INTERPRETD BY OUR TG



18-23
5% 2%
0% 5%
7%

All of the below
Increase in Engine performance
81%
Improved Stopping
Improved Acceleration
Improved Pick-up
Improved Mileage

As we all know performance means different to different people, so on the
survey we also got a varied response when the respondents were asked to
decode the word performance with respect to their bike. The majority chunk
focuses on the below attributes, but though a small percentage of 7% of this
age group focuses more on engine performance which is followed by increase
in better acceleration and better pick-up. Even this age group doesn‟t fall in the
earning category still they are not running after mileage. So overall this age
segment is more into engine performance, pick-up and better acceleration.




24-28
All of the below
0% 5% 0%
Increase in Engine 15%
performance
Improved Stopping

78%

Improved Pick-up

This age category as assumed to be the earning member of the family and
equipped with high disposable income, so as expected that they have focused
more on engine performance apart from the 78% who have gone for selecting all
of the below option. So a 15 % of the respondents had decoded performance as
sheer in terms of performance of engine followed by a 5 % of respondents going
for improved in acceleration. So a direct correlation can be established between
the purchasing power and attention given to the engine performance.




29-35
3% 2%
All of the above 0% 7%
10%
Increase in Engine
performance
Improved Stopping
78%


Improved Pick-up

This age category as assumed to start their own family and also
climbed up the ladder of success by having increment in their overall income. So
they have also interpreted the performance part same as the earlier age group by
10% going for better engine performance and 7% going for better acceleration.
This target segment can be catered and served by offering more products which
will enhance their bike‟s engine output and give them a better acceleration.




36-55
0%
All of the above
7%
13%
Increase in Engine
performance 44%
13%
Improved Stopping
23%

Improved Pick-up

This age category has shown a diverse interpretation of performance as this group
can be considered as “Baby Boomers”, so they have been more specific in their
interpretation. As we can see only 44% of respondents has gone for all of the
above option and the rest 56 % has been specific in terms of their interpretation..
As usual engine performance and better acceleration has been
chosen by most of the respondents by getting 36% of the votes and as most of the
respondents are the user of high end bikes, so improved stopping has also came
into the picture.

INR SPENT FOR PERFORMANCE UPGRADATION


18-23 24-28 29-35 36-55
60%

50% 48%

40%
33%
30% 29% 28% 28%
30%
23%
21%
20% 18% 18% 18% 17% 18% 18% 18%
14%
10%
10% 7%
2% 2%
0%
0-5k 6k-10k 11k-20k 20k-50k 50k onwards

The purchasing power of respondents in terms of performance up gradation of
four different age groups has been plotted. The first two age brackets are
dominated by age group of 18-23 and they start losing their dominance as the
spending bracket increases. The purchasing power of 18-23 age groups is more or
less limited to 10k to buy performance oriented parts on an annual basis. Both the
age groups 24-28 and 29-35 are equally distributed in the entire spending bracket
except more than 50k, where only 10% of respondents from the age bracket of
29-35 make their presence felt. The age group of 36-55 is the only group which
makes their presence felt in entire bracket with a minimum of 18% and a
maximum of 28% in the spending bracket of 11k-20k.



GEARS
&
ACCESSORIES

USAGE OF RIDING GEARS


100%

79% 76%

54.50%

37%
28%

Helmet Riding Riding Riding Riding Riding
Gloves Glasses Boots Jackets Pants

A feedback of 200 respondents clearly showed that helmet is used by
everybody as it is mandatory according to the traffic rule. Riding gloves
and riding jackets are also frequently used as 79% and 76% of the
respondents use it respectively.
Riding glasses are taking a back seat because a lot of respondents preferred
full mask helmet and if using a half mask helmet than they use to wear
their own shades which is more stylish in design. So a only 37% of
respondents own it but don‟t use it on a regular basis.
Riding boots and riding pants are usually not used for normal rides but
they come into the picture during the long drives and racing stint. so they
might need a push to sell over the counter as the usage pattern is very low
for riding boots and pants.
RESAONS FOR NOT BUYING THE REST



45%
33%

20%

2%

Lack of Lack of Price factor Not required
availability awareness

The main reason behind less purchase of riding gear is price factor because
both on an average of 70% of the respondents from the age category of
18-23 and 24-28 are limited to 10k range.
The next problem seems to be availability because better brands are not so
easily available in India even if they are than they are priced so higher that
it becomes out of reach.
So here the mode of sale becomes very important as the customer is not
aware of the point of sale, so more awareness needs to be spread.

GEARS WITH REFLECTIVE PROPERTIES



62% 60%

31%

14% 16%
14%

Helmet Riding Riding Riding Riding None
Gloves Boots Jackets Pants

Reflective and illuminating properties are very important factor which
should be taken care of while buying ant riding gear. When the customers
were asked about reflective properties present in their gear than their
response was plotted in the above graph. The graph clearly shows that
helmet and riding jackets are the gears in which riders expect that it should
be equipped with reflective properties. 60% of our respondents make sure
that their helmets and jackets are equipped with reflective properties.
As the sitting position of a rider exposes the jacket and the
helmet the most during night driving so this are the ones which should
definitely have reflective properties in it. After this two, 31% of the
respondents also have these reflective properties in their riding gloves, so
overall three gears should be sold with reflective properties for efficient
night riding and it can also work as differentiating factor from other brands
when Adelaar launches their own range gears.



FREQUENCY OF CHANGING GEARS AND ACCESSORIES



18-23 24-28 29-35 36-55

46% 45%
42% 40% 40%

32% 33%
31%
27% 27%
23%
14%

once in a year once in two year's wait for it tear up
completely

The frequency of changing gears and accessories don‟t vary a lot among
different age groups. As the age group of 18-23 and 24-28 don‟t have spend
more on accessories and gears, so they also end up buying stuff very
frequently. The reason behind that this age group always wants to be updated
and end up changing their stuffs very frequently.
The age group of 36-55 makes their presence felt in all the three categories
but as they end up spending huge sum for their gears, so maximum of them
want to get the best out of it except those who exhibit impulsive buying
characteristics.
This graph clearly shows us the repeat buying frequency and what is the
waiting time between sales of two same products to the same customer of
different age group.



MODE OF PURCHASE



As at this age people are usually
18-23 not equipped with credit cards, so
Shop Online 1% the online shopping is very less.
9%
The majority of the pie lies with
Local Stores the local store where the
30% respondents can touch and feel
OEM-Dealer the product before buying it and
stores 60% rest lies with the OEM dealers.
Direct import

As this is the working group, so
24-28 the online shopping increases and
rises to 20%. But here also the
Shop Online 7% majority of the pie lies with the
local dealer as they are easily in
Local Stores 20% the reach of the customer and
25% touch and feel factor which was
OEM-Dealer missing in the online part is
stores
48% available here. The OEM dealer
Direct import maintains a same percentage of
pie in both the age category.



As this is also the working
29-35 group, so the online shopping
increases and rises to 21%. But
Shop Online here also the majority of the pie
11% lies with the local dealer as they
Local Stores 21% are easily in the reach of the
customer and touch and feel
OEM-Dealer
21% factor which was missing in the
stores online part is available here.
Direct import 47% The OEM dealer has a same
percentage in the pie as online
shopping.

As the age increases of the
36-55 respondent the pie of local
dealers is getting smaller and
Shop Online direct import is getting bigger.
16% 20% This age group can be
Local Stores connected by OEM dealer and
local stores because this is the
OEM-Dealer 28%
stores 36% only age category where the pie
for OEM dealer is the biggest.
Direct import

SPENDING PATTERN FOR GEARS AND ACCESSORIES (18-23)



41% 43%
45%
40%
35%
30%
25%
20% 11%
15%
10% 5%
0% 0%
5%
0%
0-5K 5K-10K 10K-20K 20K-50 50K-1 >INR 1
Lakh lakh

18-23 age

This age group spends very frequently because they always want to be updated
with the latest trend in the market and the frequency of repeat buying is also
higher for them. As they are not still in the earning category so their spending
pattern is more clustered towards 0-20k.

This spending pattern shows how much an individual spends
annually for gears and accessories. There are very short percentages of
respondents who also lie in a bracket of 10-20k and 20-50k which can be treated
as insignificant considering the overall scenario.



35%
35% 30%
30%
25% 19%
20% 15%
15%
10%
5% 1% 0%
0%
0-5K 5K-10K 10K-20K 20K-50 50K-1 Lakh >INR 1 lakh

24-28 age

This age category has shown a very diverse purchasing pattern because they makes
their presence felt in each and every spending bracket by a significant percentage.
Even they fall in the earning category but still their spending pattern doesn‟t reflects
that which clearly shows that this age group is not ready to splurge too much on
gear and accessories.
They also have around 35% of respondents who spends in a bracket
of 10-50k which can be targeted as our potential customer. Their spending pattern is
very influenced by the previous age group because they just got updated from the
last age group, so the spending habits have not changed drastically.



31%
35%

30% 25%

25%

20%
14% 14%
15%
9%
7%
10%

5%

0%
0-5K 5K-10K 10K-20K 20K-50 50K-1 Lakh >INR 1 lakh

29-35 age

This age category has shown a very diverse purchasing pattern because they makes
their presence felt in each and every spending bracket by a significant percentage.
This age group shows a jump in the spending category from the last age group, even
the frequency of buying gears and accessories is also very diverse.
A lot of impulsive buying behavior has been exhibited by this
group. But still 55% of respondents spend around the category of 0-10k, but the rest
of the respondents which are scattered around the rest of the spending category is
about 45% which forms a major chunk.




25%
23%
25%

20% 15%
13% 13%
15% 11%

10%

5%

0%
0-5K 5K-10K 10K-20K 20K-50 50K-1 >INR 1
Lakh lakh

36-55 age

This age group shows a huge chunk towards the high end spending bracket. This
age group also changes their gears very frequently irrespective of the fact that they
end up buying some high end good stuff. As they end up importing a lot of gears
and accessories from abroad, this can also be a reason for this 28% of respondents
who falls in that spending bracket of 50k onwards. They can be the bunch of our
potential customers because of their spending pattern.
But the major chunk lies in 20-50k range and in
5-10k range with 235 and 25% respectively. It clearly shows that this age group has
players in each and every spending bracket.



PREFERENCE GIVEN WHILE SELECTING GEARS..

Protection Comfort Visibility Price Style

18-23 24-28 29-35 36-55

When the respondents from various age categories were asked to rank these various
factors on the importance given to them during their purchase of gears, the above
graph shows the response of different age categories.
The preference given to “protection” by all the age
categories is the highest followed by “comfort”, ”visibility” ,”price” ,”style”. The
trend is pretty similar in all the age categories except the last one where the age
category ends up giving more preference to style more than price. Considering the
fact they had huge disposable income, so this is the only age category for which
price takes a backseat in front of style



BRANDS PREFERRED BY OUR TG

Biking had been a passion in fact more than passion for quite a lot of us and
cashing on this aspect the marketers have well established brands .As we say it‟s
not just two wheelers but dreams that these brands are selling.

Apart from the machinery and durability the style of the bike is equally important
to be able to cater to these bike lovers. From the survey we have come across a
number of brands which are preferred by our TG, some of them are as follows

 Dainese  Gmax-  Dms army
 Alpinestar helmets(led (riding boots)
 Cat lights)  Revi‟it-gloves
 Agv  Cortech  SIDI (boots)
 Fox (jackets)  Nike jacket
 Vega  Tour master  Cramstar-
 Studs  Scoyco-gloves (armour jackets,
 LS2 (good elbow guards)
 Daijya-(value ventilation)  Two brothers
for money)  Harley  Gliders
 Axo Armour Davidson  Joerocket
 DSG  Steel bird  Shoei
 Ngk  Wrangler  Ninja
 Rjays-  Givi  Yamaha
(breathable  Scorpion (good  Astar
jacket) graphics)  Field sheer



 Knox (leg and  Tourgear  Yoshimura
sheen guards)  Motul  Northstar
 Spar  Vulcan  Nolan
 Shark  MPA
 R.S taichi  Shiftracing
 Arai  Teknic
 Simota  Nerve
 HJC  Hein Gericke



THE MOST PREFERRED ONE’S…



LIFESTYLE OF
TG…



USAGE OF THE BIKE

once in a month 1%

once in a fortnight 3%

once in a week 13%

2-3 times a week 15%

3-4 times a week 14%

For work 54%

0% 10% 20% 30% 40% 50% 60%

Usage of the bike signifies the amount of wear tear the bike goes through and that
also signifies the lifetime of the bike for each individual. The gears and accessories
part also follow the same trend as of the bike. Their life time also depends on the
usage, so the more it gets used the more frequently it will get changed.
As 54% of our respondents used their bike for work, so changing
of helmets and gloves will be very frequent as they are used most even for short
rides. 42% of our respondents used their bike for leisure riding and for rides which
is approximately 2-3 times a week. Though the frequency of rides are very rare and
few but the distance covered is of same which is covered by respondents who use it
for work.



FREQUENCY OF MEETING FELLOW RIDERS

only during rides 40%

once a month 20%

once a week 26%

more than 2 times a week 14%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Frequency of meeting of fellow riders is quite prevalent for a biker‟s lifestyle
because they enjoy each other‟s company, plans out for future rides and it also gives
them an opportunity to break free from regular monotonous corporate life.
 40% of our riders make sure to meet their fellow riders at least once a week,
because lot of groups makes sure to go for rides on every weekend. So this
place can be one stop place to plan out all the rides taking place.
 The rest 40% of respondents only make sure to meet their fellow riders only
during rides, so before they disperse and take their way to go back home,
Adelaar can be the spot where they can get refreshed and start again.
 The 20% of the respondents who only meet once in a month can also be
targeted because they make sure to make the most out of it, so high spending
habit can be expected from this group.



ARE YOU HANGING OUT WITH ADELAAR???

78% 80%
80%
70% 70%
70%
60%
50%
40%
28%
30% 23% 22% 20%
20%
7%
10% 2% 0% 0%
0%
18-23 24-28 29-35 36-55

Yes No May be

When the respondents were given a choice to hangout with Adelaar these were
the set of following respondents.

The whole concept has appealed to the age group of 18-23, as this age
group loves to hangout and go for long rides with their friends.70% of
respondents has given a positive response but 23% are still in flux.

The age group of 24-28 has showed similar kind of response like 18-23
with 70% of respondents giving a positive nod to the concept and 28% of
respondents are in a state of flux.



The age group of 29-35 has shown a better response to the overall concept
of Adelaar because 78% of respondents have shown a positive response
which is better than the previous age category.

The age group of 36-55 has shown the best response among all the age
categories. This age group has shown a huge excitement for this concept
because they are exposed to this kind of concept as it is very prevalent in
abroad.



ARE YOU A MEMBER OF A MOTORCYCLE CLUB???

18-23 This age group is not so
interested to be a part of
Yes No Doesn't matter
motorcycle clubs because they
already had a lot of social
19% commitments because they are
already into college life. So only
50% a 50% of respondents are part of
31% this likeminded groups who are
really passionate about biking.

24-28 This age group shows same
characteristics of the last group
though they fall in the earning
category. As they are just out of
their college life, so they are still
20%
connected to their existing social
50% life. So only the respondents who
30% are sheer passionate about biking
are only a part of these groups.



29-35 This age group is also falls in the
earning category, so they are
also the ones who prefer to be
a part of groups which will help
them to mingle with likeminded
12%
people and share the same kind
14%
of passion which they share for
motorcycles.
74%

36-55 As this age group is equipped with
high disposable income, so they
are always looking for options
from where they can get the value
for their money. Social recognition
11%
is a big aspect in their life, so
20% being a part of elite motorcycling
clubs give them the much
69%
required ego boost.



VARIOUS CLUBS

 Max Torque  Bangalore  Motoroids
 Royal Indians Motorcycle  Xkmph
 Bangalore Pandhis Club  Gear Heads
 Vrangers  Born Riders  Rolling Thunder
Trekking Bikers  Bangalore Bikers Motorcycle
Group  Xbhp Club
 Ashvamedh  Born Mofos  Madras Bulls
 Royal Brothers  The Bikerni- Motorcycling
 Gods India's First All Club.
 Bangalore CBR Women  Royal Knights
250r Club Motorcycle Motorcycle
 Bangalore R15 Association Club
Club  Old School  Hungry Riders.
 FSR Bikers  Indie Thumpers
 BCM Touring  Royal  RD 350 Club.
 Born Riders Thumpers  Ninja 250r
 KTMC  Rd Dreams Club.
 Royal Beasts  Red Liners  Kawasaki Ninja
 HOG  Tachoholics 650 Group.
 Bullet  Royal Knights
Brotherhood  Bike Nomads



FAVOURITE HANGOUT SPOTS

As a passionate biker it‟s not just limited to the rides, bikers live with their
bikes day in and day out. They have their own set of group and friends
with whom they wish to socialize go on rides and even gossip as a matter
of fact.

As a useful insight we could judge their preference in terms of places that
they visit. The popularly known HOG group is one gang which hangs out
together and plans their rides together and on the similar lines there are
many more. Some of the popular places that came out when asked where
do they hangout.

 Basil‟s garage as a completely chilled out

 Ginger tea shop, BTM layout

 GTA-ginger tea Adda

 Java city, Lavelle road with Tuskar itself there is also a favorite spot.

 Airlines hotel.

 Ice and spice, Kormangla is a place for the young and the happening and
you would definitely find these bikers there.

 Besant Nagar beach.

 Nice road. Café pascucci,indiranagar is also one of the favorite spot for
them



INSIGHTS

Ambience

When deciding about a place you wish to there are certain requirements which
need to be kept in mind. Ambience is definitely an important aspect of it.

 Bikers are divided into to two categories i.e. smokers and the non-
smokers therefore it is preferred that a smoking and non-smoking zone
needs to be maintained.
 Relaxing space for sitting and safely keeping your gear parts after a
long journey or may be places with shade to have a fresh yet cool
ambience would also be preferable.
 It should be also treated as or positioned as one stop place for every trip
and it should have the perfect ambience to start any long journey.
 Music also helps to distress and enjoys so screens with rock music or
may be sports channels should also be displayed and played.

Location

 The preferable location can be near airport road or near areas like Nandi
Hills and Mekri Circle which are within a radius of 20-30 km.
 A stretch of road (1km with a u-turn) and back (1km for a drag) this
will help the riders to check out their new bike and perform some safe
stunt.



Food

 Refreshing drinks and hydrating drinks would be the most preferred by
the bikers as after long ride this will help them to hydrate.
 A morning breakfasts are something they look forward to after their
long journeys or even before starting their long journeys.
 Bonfire, bbq-ing, simple accommodation or even tents will do.

Miscellaneous

 An ad on like drinks and adventure, open music joints with rocks shows
can be arranged in order to entertain and hold back the audience for a
longer duration of time.
 Parking facility for the bikes is a matter of special attention since that is
a major reason which the bikers face at a lot of places.
 Apart from that a comfortable 15 sitter arrangement and well informed
staff including women can add comfort and glamour to the setting.
 Also special groups like HOG and Bangalore Pandhis can be given
discounts which might make them feel special and they would love to
come back to the same place again and again.



ZONE 2 EXPERIENCES

Zone 2 League-A group of bikers from different areas and groups could be
taken into the advisory board so that all the needs and requirements can be
taken into consideration and utilized to make the whole experience memorable
one.

 Sponsored rallies and gatherings- They can duplicate the whole idea
of HOG groups and come up with their own rallies and groups.
 Campaigns-We can also have campaigns like bike week, races for
potential customers to test drive the new bikes.
 Diversified accessories-We can also come with a unique range of
accessories ,wallets, clothing line, travelling and college bags,
 Other customer benefits-Insurance, emergency roadside service,
rental arrangements, membership in riding groups, motorcycle
magazine subscription can also be considered.



GO-TO MARKET STRATEGY FOR 18-23 AND 24-28


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