Two Wheelers In India Marketing Essay

✅ Paper Type: Free Essay	✅ Subject: Marketing
✅ Wordcount: 3061 words	✅ Published: 1st Jan 2015

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Riding a two wheeler gives once a felling of freedom and enjoying the natural beauty. In India two wheelers are generally preferred because of their compact sizes affordable process, low maintenance and easy loan repayment. If we see Indian streets they are generally filled up of two wheelers. The trend of owning two wheelers in India is due to a variety of facts. One of the chief is poor public transport in many parts of India. Additionally, two-wheelers offer a great deal of convenience and mobility for the Indian family.

India is the third largest producer of Two wheelers in the world it come just next to Japan and China. In last few years the the Indian two-wheelers industry has got spectacular growth. Two wheeler industry in India has a small beginning in early 50’s. The Automobile Products of India (API) started manufacturing scooters in the country which was later taken over by Bajaj Auto. Although various government and private enterprises entered the fray for scooters, the only new player that has lasted till today is LML.

The motorcycle segment of India was initially dominated by Escorts175cc bike and Enfield 350cc bikes. In mid 80s the two-wheeler market was opened to foreign competition. And the then market leaders – Escorts and Enfield – were caught unaware by the onslaught of the 100cc bikes of the four Indo-Japanese joint ventures. With the availability of fuel efficient low power bikes, demand for this swelled which results in Hero Honda – then the only producer of four stroke bikes(100cc category), gaining a top slot. The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively.

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TVS Suzuki and Hero Honda initially started with assembly of CKD kits which later on progressed to indigenous manufacturing. In the 90s the Japanese motorcycles has brought in major growth for motorcycle segment , which grew at a rate of nearly 25% CAGR in the last five years. The motorcycle industry had a smooth ride in the 50s, 60s and 70s when the Government has prohibited new entries and controlled capacity expansion strictly. In 80s the industry saw a sudden growth and a peak volume of 1.9 mn vehicles. The entire automobile industry saw a drastic fall in demand in the year 1990 which resulted in decline of demand by 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles. Hero Honda showed a marginal decline in 1992 and all the major producers suffered from recession in Fy 1993-1994. The reasons for recession in the sector were high input costs , incessant rise in fuel prices and reduced purchasing power of the people due to significant rise in general price level and credit crunch was there consumer financing. Later with development of economic situation, sales of two wheeler increased increased.

In the last eight to ten years, the two-wheeler market has witnessed a shift from scooters to motorcycles. Particularly in the rural areas, consumers have started preferring sturdier bikes to withstand the bad road conditions.

Key Factors affecting sales of Motorcycles:

The various factors which effect the sales of motorcycles are –

Petrol Prices- As they determine the running cost of the vehicles so change in the pricing policy of Government of India will have an impact on two wheelers sales.

Improvement in disposable income certainly play a multiplier effect on the demands of consumer durables.

Ease on the availability of credits will leads to increase in demand of two wheelers.

Key players in the Two-wheeler Industry:

There are many two-wheeler manufacturers in India the major players are as follows:

– Hero Honda Motors Ltd (HHML)

-Bajaj Auto Ltd (Bajaj Auto) and

-TVS Motor Company Ltd (TVS)

– Kinetic Motor Company Ltd(KMCL),

– Yamaha Motors India Ltd(Yamaha),

Royal Enfield Ltd (REL) and Honda Motorcycle& Scooter India (P) Ltd (HMSI).

Various bikes models:

100 cc bikes segment:

The bikes in this segment are generally simple and are not much expensive and their main target customers are middle income people. These bikes consume less fuel as they have 100 cc motor and they are suitable for travelling longer distance. The bikes in 100 cc are most rightly can be said as value for money. The various competing bikes in this segment are :

-Bajaj Discover 100,

– Bajaj Platina 100,

– Hero Honda Passion Plus,

-Hero Honda Splendor Plus and

– Yamaha Crux

– TVS STAR City

We are going to compare the following mentioned models:

Bajaj Discover 100

Hero Honda Splendor Plus

Yamaha Crux

TVS Centra

Bajaj Discover 100

Brand Name

Bajaj Discover

Parent Company

Bajaj Auto

Category

Motorcycle

Sector

Two-wheeler Automobile

Tagline/ Slogan

Discover India with the power of 1 litre

USP

It give good mileage

Brand Ambassador

Evolution:

Bajaj Discover is a motorcycle brand owned by Bajaj Auto in India. It was launched in 2004 and since then it was a huge success in two wheeler segment and can be rightly called commuters bike. It has a 2nd generation DTS- Si four stroke engine. Discover provides high power and high torque which is able to produce up to 7500 rpm and torque of 5000 rpm. Bajaj has launched 100cc Discover DTS-Si which has 2nd generation engine and provide an average of 75km/hr on road speed in city and 83km/hr on highways and being termed as ” long distance Bike”. It has 5 transmission gears to provide constant transmission.

The Bajaj Discover DTS-Si will be available in four colour i.e red, blue, deep black and green.

Bajaj Discover DTS-Si 100cc has unmatched durability as all the other Discover bikes in india. Some of the premium design features of this motorcycle are LED tail-lamp, alloy wheels and an all black presentation with attractive chrome styling elements. This newly launched Bajaj two-wheeler is packed to deliver unmatched performance through polycot piston with the sturdy Discover format and yielding complete comfort varied features like ergonomically designed seats.

Features:

Electric start system

Longest wheelbase in the entire segment

Full DC electrical system

Auto choke that helps in easy starting

Nitrox suspension that makes riding comfortable even on rough roads

Maintenance free battery along with charge indicator

5 speed gear box

Target Segment: Bajaj Discover is mainly targeting the lower middle class people who look value for money and need a bike that give good mileage and look stylish.

Target Group: Youth of middle class in age group of 25-35 years.

Positioning: A bike that can be used for exploring new avenues.

SWOT ANALYSIS OF BAJAJ DISCOVER

SWOT

Strength

1.Strong brand name and huge market

2.Excellent distribution through franchisees

3.Most reliable for Indian roads as it requires low maintenance 4.Good mileage

Weakness

1. Focuses on just mileage

Opportunity

1. Expansion in rural and tier-2 cities

2. Innovations in technology

Threats

1. New entrants

2. Competitors

3. Low cost bikes

Hero Honda Splendor

Brand Name

Hero Honda(Hero MotoCorp) Splendor

Parent Company

Hero Honda

Category

Motorcycles

Sector

Two-wheeler

Tagline/ Slogan

Yaari ki Gaadi; Desh ki dhadkan

USP

A bike with low maintenance and good mileage

Brand Ambassador

The largest bike manufacture of country Hero Honda has got super rich and best selling bike in its stable that is Hero Honda Splendor, the total variant of the brand are 4. Hero Honda has recently upgraded its Hero Honda Splendor Super model and the new bike is priced at Rs. 45950 in Delhi.

Hero Honda launched its flagship model Hero Honda Splendor in the year 1994 and it bring name and fame to the company instantly since the launch. Only after a gap of 6 years, Hero Honda Splendor was declared World No. 1 largest selling single two-wheeler model. The basic model of the Hero Honda Splendor was having only standard equipment only but technology was mind-blowing as a result the bike made records after records of selling.

In the year 2003, Hero Honda upgraded the basic model of Hero Honda Splendor and launched a revamped version named as Hero Honda Splendor Plus which also saw a big success. The company announced to sell the basic and improved model side by side but discontinued the former silently after sometime. Now only Hero Honda Splendor Plus version is available in market. The Hero Honda Splendor Plus is powered by an air cooled, 4 stroke, single cylinder OHC engine with 97.2 cc of displacement. The engine produces peak power of 7.4 bhp at 8,000 rpm and churn peak torque of 7.95 Nm at 5,000 rpm. It uses world class suspension and brakes which can be called as the USP of Hero Honda bikes in India. The new avatar of Hero Honda Splendor sports alloy wheels, pass light, helmet lock and handy indicators switch.

The company further revamped the Hero Honda Splendor brand and launched Hero Honda Splendor Super in the year 2005. It is a bigger machine than its predecessors. The bike is loaded with 125cc, 4-Stroke OHC, Single Cylinder, Air Cooled engine which churns maximum power of 9 bhp at 7,000 rpm while belts out 10.35 Nm of peak torque at 4,000 rpm. Other modifications on this bike include, self start, bigger engine, wider wheelbase and bike weight.

The latest offering in the Hero Honda stable is Hero Honda Splendor NXG which was launched in the year 2007. Basically the bike was designed and launched targeting youth thereby more graphics, self start, alloy wheels and sporty look. For the first time in Hero Honda history, it added self start option, after a year of the launch, to an entry-level bike along with black alloy wheels. In addition to this, ne generation Pro Series Engines is incorporated in the Hero Honda Splendor NXG. Apart from these, the bike is equipped with new generation digital CDI unit, new design carburetor with TCIS, Halogen bulb Trapeziodal, MFR in headlamp and new style graphics. The bike is again an entry-level bike which comes loaded with 4 stoke, single cylinder OHC, air cooled 97.2cc engine. The engine develops a peak power of 7.8 bhp at 7,500 rpm and generates 8.04 Nm of peak torque at 4,500 rpm.

Hero Honda Splendor Mileage, Average and Fuel Economy

The Hero Honda Splendor series bikes are known for their superb mileage and low maintenance.

The Hero Honda Splendor Plus gives around 65-70 kmpl. It has got 11 litres of fuel tank capacity along with 1 litre of fuel reserve. Hero Honda SplendorSuper can give around 63-68 kmpl of mileage. The maximum fuel tank capacity is 12 litres. Whereas Hero Honda Splendor NXG has 9.5 litres of fuel tank capacity and 1.8 litres of reserve and you can expect around 70-75 kmpl of fuel economy in city.

The all new Hero Honda Splendor Pro offers a mileage of 60-70 kmpl in the city roads. The fuel tank present in the new Hero Honda Splendor Pro is of 11 ltrs with I ltr of fuel reserve.

Hero Honda Splendor Colors

The Hero Honda Splendor Plus comes in 8 hues like Excellent Blue, Hi Granite Blue, Black With Purple Stripe 1, Black with Purple Stripe 2, Black with Purple Stripe 3, Black with Silver stripe, Cloud Silver and Candy Red. The body colour is painted at fuel tank, front cowl, side panels, rear panels and front fender.

Target Segment: Target are the lower middle class people who want bike that give good mileage and look stylish.

Target Group: Youth of middle class in age group of 25-35 years.

Positioning: A motorcycle for making friends in life.

SWOT

Strength

1.Strong brand name and huge market

2.Excellent distribution through franchisees

3.Most reliable for Indian roads as it requires low maintenance

4.Good mileage

Weakness

1.Focuses on just mileage and no power

Opportunity

1. Expansion in rural and tier-2 cities

2. Innovations in technology

Threats

1. New entrants

2. Competitors

3. Low cost bikes

Yamaha Crux

Brand Name

Yamaha Crux

Parent Company

Yamaha

Category

Motorcycles

Sector

Two-wheeler

Tagline/ Slogan

Aapke irade sa mazboot; Yes Yamaha

USP

Bike which has good mileage

Brand Ambassador

The Yamaha Crux is a 106 cc, single-cylinder four-stroke motorcycle made by India Yamaha Motor. The Crux is designed for Indian and neighboring markets. Its upgraded version is known as the Yamaha Libero G5. Unlike Libero G5, Crux has round head lights.

Although it shares the same engine with Yamaha Libero, Crux is targeted towards the lowest end of the low end segment (100 cc segment)

A different version of crux known as crux r was introduced with the same specifications but rectangular headlights. But after it could not make a considerable sales, the production was halted.

Yamaha Crux’s 106cc, 4-stroke engine, Strong Frame, attractive style, multi-reflector lights and long seat makes it the comfortable & durable 4-stroke commuter bike on the Indian roads.

Yamaha Crux is the popular bike with attractive features available in India at affordable price. The mill of the Yamaha Crux delivers a top power of 7.6 PS at 7,500 rpm and produces a maximum torque of 7.85 Nm at 6,000 rpm. Yamaha CRUX gives excellent durability that everyone loves it. Crux can carry heavy loads or passengers with smooth move. Yamaha India said that Yamaha Crux will meet all requirement of biker. Let’s talk about the Yamaha Crux price in India with features and specifications.

Yamaha Crux Features

130 dia drum brake.

Adjustable shockers.

Advanced air cooled 4 stroke engine.

Attractive looks.

Chrome plated fender.

Multi-reflector tail light and head light for better visibility.

Target Segment: Middle-class people who want a bike that is stylish and gives a good mileage.

Target Group: Youth of middle class in age group of 25-35 years.

Positioning: A strong bike which encourages a strong life.

SWOT

Strength

1.Huge market

2.Excellent distribution through franchisees

3.Good mileage

Weakness

1. Limited market share compared to other leading brands

Opportunity

1. Expansion in rural and tier-2 cities

2. Innovations in technology

3.More brand visibility.

Threats

1. New entrants

2. Competitors

3. Low cost bikes

TVS CENTRA

Brand Name

TVS CENTRA

Parent Company

TVS

Category

Motorcycles

Sector

Two-wheeler

Tagline/ Slogan

Inspiration in motion

USP

Good mileage

Brand Ambassador

TVS Centra, introduced by TVS Motor Company, is miles ahead than others with its VT-i engines, which digitally control ignition timing, and temperature sensors for optimum fuel efficiency. Its unique friction reduction technology and fuel wastage reduction system is capable of consistently delivering superior mileage. Stunning muscular lines on the fuel tank along with stylish and contemporary body graphics render it a wind-chiseled look.

Completing the look is the trapezoidal MFR headlight for excellent visibility. Designed according to bio-mechanics principles, TVS Centra is one of its kind in the category. And last but not the least, the 5-step adjustable rear shock absorbers help to make your ride smooth on any kind of road

Like all TVS Motor Company products, TVS Centra too has been engineered and designed keeping in mind extensive customer feedback and changing customer needs. TVS Centra will be the first motorcycle in India that will bundle price, mileage, maintenance, style, reliability, power, ruggedness and ride comfort making it truly a value for money personal transportation two-wheeler. Those who want all these performance attributes in a commuter motorcycle at a great price, nothing will beat the TVS Centra for all the advantages it offers.

TVS Centra is built around to give a mileage that will offer atleast 10 per cent more than any other motorcycle in the country, today. It will be powered by 7.5 Brake Horse Power (Bhp) at 7250 RPM making it the most powerful motorcycle in its class. TVS Centra will also be known for its nimble handling and riding comfort enabling easy maneuvering even in busy city traffic. Its contemporary style with big muscular tank and well-rounded looks with a horizontal engine and superior ergonomics will mark a new standard in the popular segment of two wheelers. It will come with Econometer to keep a check on the mileage / power ratio, wide and skid free seat and Utility space.