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 ReportSubmitted in Partial Fulfillment of

the Requirements for the Award of the Degree ofMaster of Business Administration

Bangalore, India2012

Adelaar Motorcycle Pvt LimitedAutomotive Aftermarket- A Sneak peek

2

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


3

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.



4

ACKNOWLEDGEMENT



5

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



6

DECLARATION iiCERTIFICATE iiiACKNOWLEDGEMENT ivTABLE OF CONTENTS vLIST OF TABLES viLIST 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)



7

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



8

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


9

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



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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.



11



12

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


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


13

Chart-1: Trends in motorcycle sale by engine capacity

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

78%

71% 69% 70%

21%

28% 29% 27%

0% 1% 2% 3%

75-125 cc 125-250 cc >250 cc

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.



14

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.



15

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.



16

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.



17

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


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


18

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.



19

KEY DRIVERS BEHIND THE GROWTH OF TWO WHEELER

INDUSTRY . 3

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


Growth Drivers

Working population.

Rising income levels

Booming rural market.Skilled manpower

Rapid urbanization


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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.



21

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



22

COMPANY PROFILE



23

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



24

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.



25

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



26

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.



27

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



28

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



29

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.

Go-To Market strategy.


What to sell

How to sell

Go-To Market

Who to sell


30

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.



31

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



32

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.



33

ANALYSIS

&

SUGGESTION



34

POPULATION SAMPLE

18-2322%

24-2830%

29-3528%

36-5520%

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



35

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.



36

CUSTOMER

PROFILING

&

PERFORMANCE

UPGRADATION



37

IS THIS YOUR 1 ST MOTORCYCLE???

YES57%

NO43%

18-23

YES30%

NO70%

24-28

YES12%

NO88%

29-35

YES13%

NO87%

36-55


57% respondents were new to the overall experience of biking as they were the 1st time owner of a motorcycle. The rest 43% of the respondents had already moved over from their 1st motorcycle and upgraded them to a better one.





38

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



39

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

52% 53%

31%

56%

27%

33%

42%

28%

5%

12%16%

5%9%

2%

11% 11%

1 2 3 >3

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



40

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



41

18-23 24-28 29-35 36-550%

10%

20%

30%

40%

50%

60%

70%

80%80%

70%75%

80%

20%28%

21%15%

0% 1% 4% 5%

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



42

81%

7%5% 5% 2%

18-23

All of the below

Increase in Engine performance

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.




43

78%

15%5%

24-28All of the below

Increase in Engine per-formance

Improved Stopping

Improved Acceleration

Improved Pick-up

Improved Mileage

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.



44


78%

10%7%

3% 2%29-35

All of the aboveIncrease in Engine per-formanceImproved StoppingImproved AccelerationImproved Pick-upImproved Mileage

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.



45


44%

23%

13%

13%7%

36-55

All of the aboveIncrease in Engine per-formanceImproved StoppingImproved AccelerationImproved Pick-upImproved Mileage

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



46

0-5k 6k-10k 11k-20k 20k-50k 50k onwards0%

10%

20%

30%

40%

50%

60%

48%

29%

14%7%

2%

30% 28%23%

17%

2%

33%

21% 18% 18%

10%

18% 18%

28%

18% 18%

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

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.



47

GEARS

&

ACCESSORIES

USAGE OF RIDING GEARS



48

Helmet Riding Gloves

Riding Glasses

Riding Boots Riding Jackets

Riding Pants

100%

79%

37%

55%

76%

28%

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



49

Lack of availability

Lack of awareness

Price factor Not required

20%

2%

33%

45%

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



50

Helmet Riding Gloves

Riding Boots

Riding Jackets

Riding Pants

None

62%

31%

14%

60%

14% 16%

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.



51

FREQUENCY OF CHANGING GEARS AND ACCESSORIES



52

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

31%27%

42%

23%

32%

45%

14%

46%40%

27%33%

40%

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

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.



53

MODE OF PURCHASE



54

9%

60%

30%

1%

18-23

Shop OnlineLocal StoresOEM-Dealer storesDirect import

20%

48%

25%

7%

24-28



As at this age people are usually not equipped with credit cards, so the online shopping is very less. The majority of the pie lies with the local store where the respondents can touch and feel the product before buying it and rest lies with the OEM dealers.

As this is the working group, so the online shopping increases and rises to 20%. But here also the majority of the pie lies with the local dealer as they are easily in the reach of the customer and touch and feel factor which was missing in the online part is available here. The OEM dealer maintains a same percentage of pie in both the age category.


55

21%

47%

21%

11%

29-35


20%

36%28%

16%

36-55


SPENDING PATTERN FOR GEARS AND ACCESSORIES (18-23)


As this is also the working group, so the online shopping increases and rises to 21%. But here also the majority of the pie lies with the local dealer as they are easily in the reach of the customer and touch and feel factor which was missing in the online part is available here. The OEM dealer has a same percentage in the pie as online shopping.

As the age increases of the respondent the pie of local dealers is getting smaller and direct import is getting bigger. This age group can be connected by OEM dealer and local stores because this is the only age category where the pie for OEM dealer is the biggest.


56

0-5K 5K-10K 10K-20K 20K-50 50K-1 Lakh >INR 1 lakh0%

5%

10%

15%

20%

25%

30%

35%

40%

45%41% 43%

11%

5%0% 0%

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.




57


5%

10%

15%

20%

25%

30%

35%

35%

30%

19%15%

1% 0%

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.




58


5%

10%

15%

20%

25%

30%

35%

25%

31%

14% 14%

9%7%

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.




59


5%

10%

15%

20%

25%

11%

25%

13%

23%

13%15%

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 ..



60

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

Protection Comfort Visibility Price Style

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



61

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

Alpinestar

Cat

Agv

Fox

Vega

Studs

LS2

Daijya-(value

for money)

Axo Armour

DSG

Ngk

Rjays-

(breathable

jacket)

Gmax-

helmets(led

lights)

Cortech

(jackets)

Tour master

Scoyco-gloves

(good

ventilation)

Harley

Davidson

Steel bird

Wrangler

Givi

Scorpion (good

graphics)

Dms army

(riding boots)

Revi’it-gloves

SIDI (boots)

Nike jacket

Cramstar-

(armour jackets,

elbow guards)

Two brothers

Gliders

Joerocket

Shoei

Ninja

Yamaha

Astar

Field sheer

Knox (leg and

sheen guards)

Spar

Shark



62

R.S taichi

Arai

Simota

HJC

Tourgear

Motul

Vulcan

MPA

Shiftracing

Teknic

Nerve

Hein Gericke

Yoshimura

Northstar

Nolan

THE MOST PREFERRED ONE’S…



63



64



65

LIFESTYLE OF

TG…

USAGE OF THE BIKE



66

For work

3-4 times a week

2-3 times a week

once in a week

once in a fortnight

once in a month

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

54%

14%

15%

13%

3%

1%

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



67

more than 2 times a week

once a week

once a month

only during rides

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

14%

26%

20%

40%

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???



68

18-23 24-28 29-35 36-550%

10%

20%

30%

40%

50%

60%

70%

80% 70% 70%78% 80%

7%2% 0% 0%

23%28%

22% 20%

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.



69

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???



70

50%

31%

19%

18-23

Yes No Doesn't matter

50%

30%

20%

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 connected to their existing social life. So only the respondents who are sheer passionate about biking are only a part of these groups.

This age group is not so interested to be a part of motorcycle clubs because they already had a lot of social commitments because they are already into college life. So only a 50% of respondents are part of this likeminded groups who are really passionate about biking.


71

74%

14%

12%

29-35


69%

20%

11%

36-55


VARIOUS CLUBS


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 is a big aspect in their life, so being a part of elite motorcycling clubs give them the much required ego boost.

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 people and share the same kind of passion which they share for motorcycles.


72

Max Torque

Royal Indians

Bangalore Pandhis

Vrangers

Trekking Bikers

Group

Ashvamedh

Royal Brothers

Gods

Bangalore CBR

250r Club

Bangalore R15

Club

FSR

BCM Touring

Born Riders

KTMC

Royal Beasts

HOG

Bullet

Brotherhood

Bangalore

Motorcycle

Club

Born Riders

Bangalore Bikers

Xbhp

Born Mofos

The Bikerni-

India's First All

Women

Motorcycle

Association

Old School

Bikers

Royal

Thumpers

Rd Dreams

Red Liners

Tachoholics

Royal Knights

Bike Nomads

Motoroids

Xkmph

Gear Heads

Rolling Thunder

Motorcycle

Club

Madras Bulls

Motorcycling

Club.

Royal Knights

Motorcycle

Club

Hungry Riders.

Indie Thumpers

RD 350 Club.

Ninja 250r

Club.

Kawasaki Ninja

650 Group.



73

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



74

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



75

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.



76

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



77


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