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“To Increase Prospect to Sales Conversion Ratio”

Two Rivers Harley-Davidson Pune

SIP REPORT

15th June-13th August 2015

Submitted by:

Rishab Bhasin

BBA (auto marketing)

R300213027

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Preface

In this period of Indian economical transition people have now more cash in hand than any time

before, so their needs have now increased from an individual back in 20th century who basically

looked for the completion of his basic needs to an individual who is now looking up to the luxury

markets to fulfill his desires.

This is where the market of Harley-Davidson comes into play, here at Harley-Davidson we just

don’t sell motorcycles we sell experiences. We give a customer an opportunity of the expression

of personal freedom. In this market the thing which actually matters is the first experience of the

customer when they visit the showroom, so it becomes very important to deliver the best that we

can in the first interaction.

In this SIP I have interacted with prospects and tried to convert them into actual sales, in the

process I came across various prospects who could purchase the motorcycle but because of some

obstructions they couldn’t make the decision and shifted to other competitor brands so I analyzed

their issues and did a project on the same pertaining to how can the company retain these

prospects and convert them to sales and how can we deliver that first experience to the customer.

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Acknowledgement

Immeasurable appreciation and deepest gratitude for the help and support are extended to the

following persons who have one way or another have contributed in making this study possible.

Mr. Soumen Choudhury (Business Head), A very strong personality yet humble and always

approachable for any queries and guidance regarding the SIP project and he taught me most of

the things about the business from store display to how to address a customer also thankful to

him for the opportunities he gave in being a part of various display events which gave me

immense exposure to the real challenges a person faces during customer interactions.

Mr. Constance D’Souza (Sales Head, Mentor), Inspirational figure, He guided me in every phase

of the SIP from the starting to the end from handing over the database to working on it and

assisting me in display events.

Mrs. Meenakshi Tomar (College Mentor), For guiding me and helping me out with the entire

project and helping me in my project from scratch till the completion of the project and giving

me her ideas whenever and wherever I was stuck.

Mr. Fareez Bathena (Chrome In charge), For introducing me to the accessorization business and

also for teaching me how to convince a customer to accessorize his bike and the benefits of it

apart from that he taught me which bike can be accessorized and to what extent.

Mr. Mayur Desai (Asst. Manager Sales), For helping me with the database handling and Torque

which is a customer data collection softwar. He is the source of all the data I worked upon.

Sales Team

Mr. Karan Patil, Mr. Tejas Kadam, Mr. Abhishek Nerlekar, Mr. Vishal Kharate and Mr. Rajratna

Rodge for their constant support and motivation throughout the process and for teaching me and

introducing me to the world of Harley-Davidson

Merchandise Team

Mrs. Smita Bhunia, Ms. Jini Mukund, Ms. Reema Biswas for their moral support and motivation

through the SIP and the knowledge they gave me about how the merchandize business

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Methods to increase prospect to sales conversion ratio

By Rishab Bhasin

June 15 - August 13.08.2015

EXECUTIVE SUMMARY

Introduction:

This study reports the results of the prospect interviews for Two Rivers Harley-Davidson Pune.

The results will be presented in a report to Mr. Soumen Choudhury (Business Head) and to Mr.

Constance D’Souza (Sales Manager). This report will be used to develop activities to improve

the customer experience and give them a thrilling experience during their first interaction with

Two Rivers Harley-Davidson Pune. This report will also highlight certain issues or obstructions

that the customer faces while making their purchase decision and the solutions for the same.

Methods:

The data used in this report were collected from telephonic interviews and personal interactions

with the prospects of the company. From the target population of 2200 individuals, a sample of

800 prospects was collected and their replies or answers were generalized in accordance with the

questions asked to each one of them.

Findings:

45% of the prospects that I interviewed were causal enquiries and had no plans of buying a

motorcycles

20% of the prospects were interested in the purchase and wanted to go forward with it but were

not so sure.

30% of the prospects were either not satisfied with the product/service or bought another

motorcycle or had some financial issues and complains like late follow up etc. which can be

dealt with.

5% of the prospects were already HOGs and were not looking for any product upgrades.

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CONTENTS

Preface…………………………….. 2

Acknowledgement…………………... 3

Executive Summary…………………… 4

Index……………………………………… 5

Industry Profile…………………………….. 6

Company Profile……………………….......... 13

Review of Literature……………………….…. 26

Research Methodology………………….……… 33

Facts & Findings……………………….…………. 34

Analysis & Interpretation…………….……………. 35

SWOT………………………………………………….. 43

Conclusion………………………………………………. 44

Recommendation & Suggestions…………………………. 45

Appendix: Questionnarire etc………………………………. 46

Biblography …………………………………………………… 47

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Industry profile

Motorcycle history begins in the second half of the 19th century. Motorcycles are descended

from the "safety bicycle," a bicycle with front and rear wheels of the same size and a pedal crank

mechanism to drive the rear wheel.Despite some early landmarks in its development,

motorcycles lack a rigid pedigree that can be traced back to a single idea or machine. Instead, the

idea seems to have occurred to numerous engineers and inventors around Europe at around the

same time.

Early internal combustion, petroleum fueled motorcycle was the Petroleum Reitwagen. It was

designed and built by the German inventors Gottlieb Daimler and Wilhelm Maybach in Bad

Cannstatt, Germany in1885.

In 1901 English quadricycle and bicycle maker Royal Enfield introduced its first motorcycle,

with a 239 cc engine mounted in the front and driving the rear wheel through a belt. In 1898,

English bicycle maker Triumph decided to extend its focus to include motorcycles, and by 1902,

the company had produced its first motorcycle—a bicycle fitted with a Belgian-built engine. A

year later, it was the largest motorcycle manufacturer with an annual production of over 500

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units. Other British firms were Norton and Birmingham Small Arms Company who began

motorbike production in 1902 and 1910, respectively.

In 1901, the Indian Motocycle Manufacturing Company, which had been founded by two former

bicycle racers, designed the so-called "diamond framed" Indian

Single, whose engine was built by the Aurora Firm in Illinois per Indian's specifications. The

Single was made available in the deep blue. Indian's production was upto over 500 bikes by 1902

and would rise to 32,000, its best ever, in 1913

producing over 20,000 bikes per year.

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The American company Harley-Davidson started producing motorcycles in 1903.During

the First World War, motorbike production was greatly ramped up for the war effort to supply

effective communications with front line troops. Messengers on horses were replaced

with despatch riders on motorcycles carrying messages, performing reconnaissance personnel

and acting as a military police. American company Harley-Davidson was devoting over 50% of

its factory output toward military contract by the end of the war. By 1920, Harley-Davidson was

the largest manufacturer,with their motorcycles being sold by dealers in 1967.

By the late 1920s or early 1930s, DKW in Germany took over as the largest manufacturer.BMW

motorcycles came on the scene in 1923 with a shaft drive and an opposed-twin or "boxer" engine

enclosed with the transmission in a single aluminum housing.

By 1931, Indian and Harley-Davidson were the only two American manufacturers producing

commercial motorcycles. This two-company rivalry in the United States remained until 1953,

when the Indian Motorcycle factory in Springfield, Massachusetts closed and Royal Enfield took

over the Indian name.

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In 1937, Joe Petrali set a new land speed record of 136.183 mph (219.165 km/h) on a modified

Harley-Davidson 61 cubic inch (1,000 cc) overhead valve-driven motorcycle.The same day,

Petrali also broke the speed record for 45 cubic inch (737 cc) engine motorcycles.

Japanese dominance

The excellence of Japanese motorcycles caused similar effects in all Western markets: many

Italian bike firms either went bust or only just managed to survive. As a result BMW's

worldwide sales sagged in the 1960s, but came back strongly with the introduction of a

completely redesigned "slash-5" series for model year 1970.

Harley-Davidson in the US at the time suffered from the same problems as the European firms,

but its unique product range, American tariff laws and nationalism-driven customer loyalty

allowed it to survive. One alleged flaw, however, was retaining the characteristic Harley-

Davidson 45° engine vee-angle, which causes excess vibration as well as the loping Harley-

Davidson sound.

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Operations in India

In 2009, Harley-Davidson announced plans to establish a subsidiary to be located in Gurgaon,

near Delhi. Plans to enter the Indian market were delayed for several years, due to high tariffs

and emissions regulations. The pollution regulations have recently changed,

but the tariff problem is yet unresolved.

In 2007, U.S. Trade Representative Susan Schwab and the Minister for Commerce and Industry

of India, Kamal Nath, had agreed that Harley-Davidson motorcycles will be allowed access to

the Indian market in exchange for the export of Indian mangoes. One Indian commentator called

this "mango diplomacy. However, India had not specified emission standards for motorcycles

over 500 cc displacement, effectively prohibiting the import of Harley-Davidsons, along with

most models of other manufacturers. Plans to export to India were also held up by import duties

of 60% and taxes of 30%, which effectively doubled the sale price. A Harley-Davidson

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spokesman said the company thinks demand is high enough to overcome the tariffs, and chief

operating officer Matt Levatich said they would continue to push for lower tariffs.

Harley Davidson is introducing 12 models in India from the range of five motorcycle families,

namely Sportster, Dyna, VRSC, Softail and CVO. The motorcycles are completely built units

and will be imported to India, thus attracting a tax over 100% in the price range of 695,000

rupees and 3,495,000 rupees ex-showroom. The bookings might start from April 2010 and the

motorcycle delivery will commence from June 2010. To begin with, Harley Davidson would

have five dealerships (Delhi, Mumbai, Bangalore, Hyderabad and Chandigarh) with the aim of

increasing the dealerships to more than 20 in the next five years. In November 2010, Harley-

Davidson said that it will start an assembly facility for complete knock down (CKD) kits of its

motorcycles in India by the first half of 2011, making it only the second CKD facility outside the

US. In 2014 Harley will begin production of their Harley-Davidson Street 500 and 750 models

in India for domestic sales and export.

Harley-Davidson India is a wholly owned subsidiary of Harley-Davidson, based

in Gurgaon, Haryana, India. Harley-Davidson India commenced operations in August 2009 and

appointed its first dealership in July 2010.

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Harley-Davidson offers a range of 11 models in India from each of its six platforms – Sportster,

Dyna, Softail, V-Rod, Touring and Street – in addition to a full range of parts, accessories, and

general merchandise, available through authorized dealerships. The company has 15 dealership

facilities across India: New Delhi, Gurgaon, Chandigarh, Mumbai, Hyderabad, Bangalore,

Chennai, Kochi, Kolkata, Ahmedabad, Indore, Pune, Goa and Jaipur. In 2011, The company has

also set up an assembly unit at Bawal, Haryana. In 2011, Harley-Davidson India began the

assembly of its Sportster line followed by the assembly of the Dyna line in 2012 and Softail line

in 2013. In 2014, Harley-Davidson began manufacturing the Street 750 and 500 motorcycles in

India - at Bawal, Haryana India, its only manufacturing facility outside of the US. The Street

platform is jointly manufactured at Harley-Davidson’s US and India plants.

The Street 750 is also exported to Europe and Asia markets from India. Harley-Davidson India

also sponsors the country’s Harley Owners Group (H.O.G.). The company organizes five big

rides across the north, south, east and west zones along with the India H.O.G. Rally that takes

place every year in Goa. In 2009, Harley-Davidson India also established its annual rock music

tour– Harley Rock Riders.

The United States ambassador to India, Timothy J. Roemer, attended the opening ceremonies for

H-D India's Guragon headquarters on May 6, 2010.

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Company profile

Harley-Davidson is the iconic American motorcycle manufacturer. Founded out of a

small shed in 1903 by William S. Harley and brothers Arthur and Walter Davidson in

Milwaukee, Wisconsin. The Motor Company produces traditional cruiser motorcycles

utilizing air-cooled V-Twin engines.

When Harley and Davidson produced and sold their first motorcycle in 1903, they were

one of many small motorcycle marques springing up across the country. Flash forward

more than a century and the Harley-Davidson brand is so rooted in American culture that

the history of the company intertwines with the history of America itself.

Harley-Davidson incorporated in 1907, with William Davidson officially joining forces

with his two brothers and Harley. Setting down roots in Milwaukee, Harley-Davidson

began hiring employees and by the end of the decade were producing bikes using its

signature 45-degree air-cooled V-Twin.

During the next decade H-D continued to expand. Many sales were generated by Uncle

Sam, with the American military sourcing Harley motorcycles during the First World

War.

The Bar and Shield continued to grow and by the early ‘30s, its only surviving domestic

rival was Indian. Again H-D expanded in peacetime and found itself producing high

quantities of bikes for the American military during World War II. Harley-Davidson

press material cites its wartime motorcycle production at 90,000 units.

Post-war Harley-Davidson developments include the introduction of the Sportster in

1957, the oldest production model in the current H-D lineup, as well as other signature

H-D models.

Harley experienced changes in ownership in the ‘60s, going public in 1965 and

eventually merging with American Machine and Foundry (AMF) in 1969. A decline in

fortunes saw AMF sell its stake back to current ownership, which included members of

the founding families, in the early ‘80s. The Davidson family’s involvement in the day -

to-day running of H-D continues, with direct descendent Willie G. Davidson serving as

President of Styling.

The ‘80s and ‘90s saw the introduction of model families that continue to this day, like

the Softail, FLT and Road King lines, joining classic models like the Electra Glide. In

the ‘90s Harley-Davidson also solidified its hold over Buell motorcycles, taking a

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controlling stake in the American sportbike/street bike manufacturer and selling Buell

motorcycles at many H-D dealers.

Since the turn of the century, Harley-Davidson has retained its image as a classic

American icon. But the Motor Co is reaching out to other riders with the i ntroduction of

more performance-oriented models, like the V-Rod – significant as the first liquid-

cooled production Harley. As the riding demographic ages, H-D is also realizing it must

break into the younger market with the release of edgier makeovers of its classic models

like the Cross Bones and other members of its Dark Custom line like the Iron 883.

Harley-Davidson has also been working hard to improve the riding quality of its touring

bikes. In 2009, it did away with the stamped and welded single-piece frame that

anchored Harley touring motorcycles for the last 30 years and replaced it with a cast,

single-spar, rigid-backbone frame. It also went with a wider, longer swingarm. H-D also

introduced a new three-wheel motorcycle called the Tri Glide that has the classic styling

and popular touring features of its best-selling Ultra Classic Electra Glide.

Harley-Davidson also demonstrates what can be done with products from its vast

Genuine Motor Accessories and Motor Parts catalog in the form of its CVO (Cus tom

Vehicle Operations) line. The CVO motorcycles are models from Harley’s standard

lineup that have received the royal treatment, like the Screamin’ Eagle Twin Cam 110

engine, show-topping custom paint and top-shelf H-D controls and components.

Products

Street Family

Street 750

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This is pure, liquid-cooled Harley-Davidson muscle and Dark Custom attitude built to conquer the urban world.

Sportster Family

Superlow 883

Smooth travel riding suspension, comfortable cruising position and easy handling for endless miles.

IRON 883

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This blacked-out bruiser is a raw, aggressive throwback. No chrome, no apologies—just an authentic ride.

Forty Eight

With a fat front tyre and steel peanut tank, this low-slung urban brawler is ready to rip through any scene.

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Dyna Family

Street Bob

Blacked out and refined to elemental bobber purity, it's the perfect starting point for your personal Custom of

one.

Fat Bob

Fat tyres, blacked out finishes, throaty slash cut mufflers, low fat handlebar, and a surly attitude. Now you're

riding dirty.

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Softail Family

Fat Boy

The original fat custom icon with a burly style that's often imitated but never duplicated.

Breakout

Big wheels, big paint and classic drag-bike attitude meet premium modern refinement in this attention-

grabbing performance cruiser.

Heritage Softail Classic

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Blazing from the past with original dresser spirit and modern touring capabilities.

VRSC family Night Rod Special

Massive power meets cutting-edge technology for a nimble ride that takes dark to pitch black.

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Touring Family Street Glide Special

When it comes to stripped-down bagger style, highway comfort, modern technology and an unruly attitude, this is the

state of the art.

CVO CVO Limited

We've rebuilt grand American touring from the ground up. At the very top of the mountain in terms of power, features

and riding experience, this is the motorcycle for you.

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Financial performance

Net income for 2014 was $844.6 million, based on consolidated revenue of $6.23 billion. (In 2013,

those figures were 734.0 million and 5.90 billion, respectively.)

For full-year 2014, revenue from motorcycles was $4.39 billion compared to $4.07 billion in 2013.

Revenue from parts and accessories was $875.0 million in 2014, compared to $873.1 million in

2013.

Revenue from general merchandise, which includes MotorClothes apparel and accessories, was

$284.8 million in 2014 compared to $295.9 million in 2013.

Here’s how Keith Wandell, Chairman, President, and CEO of Harley, summed it up: “Harley-Davidson

achieved a great year of financial performance in 2014, with double-digit earnings growth, revenue

topping $6 billion and continued strong improvement in margins. We also continued to broaden our

customer base and expand the reach of our brand through unrivaled products and experiences. In

international markets, our dealers in Asia Pacific, EMEA and Latin America posted their highest new

motorcycle sales on record for each region, delivering on our expectation for international sales to grow at

a faster rate than U.S. sales. And in the U.S., for the third straight year, sales to our outreach customers

grew at more than twice the rate of sales to core customers.”

Added Wandell: “Our success is the result of a clear focus on managing the company for the long term,

building on our well-established strategies and driving continuous improvement in every aspect of our

business.”

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2013 2014

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Two Rivers Harley-Davidson Pune

Pune, November 29, 2013: With the inauguration of Two Rivers Harley-Davidson in Pune,

Harley-Davidson customers in India now have 11 dealerships to choose from across the country.

The grand opening took place in the presence of Anoop Prakash, Managing Director Harley-

Davidson India, Sunil Christian, Dealer Principal, Two Rivers Harley-Davidson, and over 100

Harley-Davidson owners from across the western region.

This latest dealership stands testimony to the strategic expansion plans underway by Harley-

Davidson in the Indian market and the western region in particular. Situated at the Amanora

Town Centre Mall, Two Rivers Harley-Davidson is expected to provide an added boost to the

existing leisure motorcycling culture in the city. The new dealership comes at a time when the

city of Pune already has a burgeoning base of Harley-Davidson customers who can now

purchase an exciting new Harley-Davidson or have their existing motorcycle serviced locally

instead of making the trek to Mumbai.

“We are the undisputed leader in the premium motorcycle segment in the country. Harley-

Davidson is proud to lead the way in developing a strong leisure motorcycling culture in India

and as the eleventh Harley-Davidson dealership in the country, Two Rivers Harley-Davidson

will help with that development. A dealership in Pune was a natural progression since Harley-

Davidson is a much loved brand in Pune with a large number of customers already present here .

We are delighted to open our doors to the wide motorcyclist base in Pune and welcome new

customers to our growing family of Harley-Davidson owners.” said Anoop Prakash, Managing

Director, Harley-Davidson India.

The passion, enthusiasm and respect the Harley-Davidson brand has received from customers

and enthusiasts continues to inspire the company’s growth plans. Since, the beginning of retail

operations in India in 2010, there are nearly 4000 Harley-Davidson motorcycles on Indian roads.

This feat can be attributed to the company’s success in building a strong leisure motorcycle

culture in India, a rapidly expanding dealer network and an unrelenting focus on delivering a

great customer ownership experience.

“This is indeed an exciting time for us with milestones; just this morning the Mumbai dealership

opened a brand new facility and tomorrow we ride into Goa for the launch of Goa Harley-

Davidson. Globally, we recently had two exciting product launches with Project RUSHMORE,

our improved touring line up and the all new Harley-Davidson Street™ 750 motorcycle.” added

Anoop Prakash, Managing Director, Harley-Davidson India.

World-over, Harley-Davidson dealerships are the one-stop-shop for patrons and loyalists who

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seek to experience the famed Harley-Davidson lifestyle and culture, firsthand and further absorb

the spirit, thrill and camaraderie associated with leisure motorcycling.

“We at Two Rivers Harley-Davidson are absolutely delighted to bring Harley-Davidson to Pune,

a city with an established leisure riding culture. The brand is renowned world-over for providing

its customers with a premium lifestyle experience through a unique product offering. Through

this launch, we seek to fulfill the dreams of local enthusiasts to explore their spirit of freedom

and self-expression and take to the roads, in the true Harley-Davidson style”, said Mr. Sunil

Christian, Dealer Principal, Two Rivers Harley-Davidson.

The newest dealership offers the entire Harley-Davidson India lineup of 11 motorcycle models,

in addition to Harley-Davidson riding gear, apparel, and merchandise. Harley-Davidson

Motorcycles are available starting from INR 5, 91,000 (ex-showroom, Pune). Harley owners will

also be able to choose from a wide range of genuine Harley-Davidson parts and accessories to

customize their bikes.

Two Rivers Harley-Davidson joins ten other Harley-Davidson dealerships in India including:

Tiger Harley-Davidson in Indore, Banjara Harley-Davidson in Hyderabad, Bengal Harley-

Davidson in Kolkata, Capital Harley-Davidson in New Delhi, Coromandel Harley-Davidson in

Chennai , Himalayan Harley-Davidson in Chandigarh, Nine Bridges Harley-Davidson in

Ahmedabad, Seven Islands Harley-Davidson in Mumbai, Tusker Harley-Davidson in Bangalore

and Spice Coast Harley in Kochi.

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Display Events of Two Rivers Harley-Davidson Pune

PCMC Central Mall Display

A Display event was conducted at Central Mall (PCMC) where I was present as sales consultant where

my team and I generated about 120 enquiries in a span of 3 days.

Indira College PCMC

Display event at Indira College’s Orientation program, 40 enquiries generated.

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Phoenix Market City

Display Event at Phoenix Market City where around 100 enquiries were generated and conversion work

is ongoing.

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Review of literature

What are Conversion Rates?

Conversion Rates are the percentage of prospective customers who take a

specific action you want. For example, the following are specific

conversion rates that an organization may track:

The percentage of website visitors who fill out a form, call your

company, or purchase something from you online

The percentage of callers who are issued proposals

The percentage of proposals you win

Etc.

Increase Conversion Rates to Improve Profits

No matter how good your current conversion rates are, they can always

get better. And improving your conversion rates dramatically improve

profits.

For example, if you spend $1,000 on advertising, you may bring 1,000

prospective customers to your website. If your online sales conversion

rate is 5%, then you’ll secure 50 new customers. Alternatively, if your

conversion rate improved to 6%, you would gain 60 new customers. In

this latter scenario, you’d gain an additional 10 customer for no additional

advertising cost, thus boosting your profits significantly.

How to Increase Conversion Rates

There are numerous ways to increase conversion rates. Below are several

ways to improve your rates, broken into two main categories:

Increasing Online Conversion Rates

1. Social Proof: adding social proof, via customer testimonials

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1. and/or case studies, to your website virtually always increases

conversions.

2. Clear Contact Information: clearly showing contact information,

perhaps a phone number and/or live chat options, typically

increases conversions by giving visitors confidence that your

company is “real” and is there to answer any questions they have.

3. Credibility: Having “trust” seals, such as from the Better Business

Bureau or from web security firms like Verisign, will nearly always

conversions.

4. Guarantees: offering a guarantee gives customers more confidence

in your offering and thus generally increases conversion rates.

Likewise, having a longer guarantee (e.g., 365 days vs 30 days)

will generally increase conversions even more.

5. Headlines: the headlines on your website pages are typically the

first thing visitors read, and often compels them to read more or

exit your site immediately. The right headline could dramatically

increase your conversion rate. So test new headlines frequently.

Increasing Offline Conversion Rates

Much of the same strategies that improve online conversion rates should

be used offline. For example, showing pictures and testimonials of other

satisfied customers nearly always helps conversions. Likewise, offering

more credibility and longer guarantees helps too.

A couple other ways to increase offline conversion rates are as follows:

1. Trial Closes: trial closes are questions you ask prospective

customers that don’t ask for a final buying decision. For example,

you might ask the question, “If we were able to offer you this for a

price that works for you, is this something you’d like to move

forward with?”

2. Get customers to invest time. For bigger purchases, the more time

customers invest in the process, the more likely they often are to

buy. So, rather than quickly giving customers a price, it’s often best

to have a few conversations. Perhaps in the first conversation you

learn about their needs. In a second conversation, you present some

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research/information you think they’d find helpful. And in a third

conversation, you present a proposal to work together. Although

this process might slightly lengthen your sales cycle, it gets

prospective customers to invest more time in working with your

company; this often prompts them to want to do business with you.

With such a question, if the prospect says “yes,” you’ll know that

price is the only potential thing standing in the way of them buying.

Alternatively, if they say “no,” listen to find out what their

objections are so you can overcome them before offering your

price.

Tracking Your Conversion Rates

Of critical importance, always remember that you can’t improve what you

can’t measure.

That’s why you need to track your conversion rates on both a daily and

monthly basis. Doing so allows you to immediately correct problems

(e.g., why is our conversion rate so low today? …oh my, it’s because our

website isn’t loading properly) and make sure you are improving your

conversion rates over time. Use conversion tracking tools like Guiding

Metrics, which is an amazing tool to expertly track your metrics and

improve profits.

Your conversion rates are absolutely key to your sales and profits. So,

figure out the most important conversion rates in your company (e.g.,

online visitors to sales, proposals won/lost) and start improving and

tracking them today.

http://www.forbes.com/sites/davelavinsky/2014/03/18/how-to-increase-conversion-rates/`

15 Lead Conversion Strategies

Better conversion strategies can boost your business dramatically for little or no extra cost

There’s little point in generating more leads and enquiries if your existing conversion process

results in most of your hard-won enquiries falling through the cracks.

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Too many businesses are already generating all the leads and prospects they need … but are

unwittingly losing up to 95% of their sales opportunities, and pouring thousands, hundreds of

thousands, or millions of pounds down the drain.

In these circumstances you may not actually NEED additional leads or prospects at all … instead

you need much better strategies for converting a larger portion of your prospects into customers.

Some clients have increased their conversion rate more than ten-fold whilst at the same time

dramatically reducing the cost of acquiring those customers. Here are some of the strategies you

can use:

1. Mapping your sales process

This valuable diagram maps the step by step processes required to convert your enquiries into

sales. It tracks the actions you take to prepare for each sale; how you overcome concerns; build

trust; understand your buyer’s goals, needs and wants; create certainty that your product or

service meets their needs; overcome their fear of making the wrong decision; officially confirm

the sale … and see to it that your buyer is truly satisfied. You’ll be able to carefully study your

sales process from every angle so that you manage and control each step, convert more

effectively and address predictable buyer concerns before they pop up later as objections.

2. Measure conversion rate

What you measure you can manage, yet few businesses ever consider, let alone accurately

measure, the percentage of their hard-won enquiries that convert into sales. Without a

measurement system you can only guess at your sales conversion rate … and usually it’s an

over-estimate! Once you start measuring your conversion rate you can start focusing on lifting

your “benchmark” performance using some of the techniques listed on this page. If you measure

what you are achieving, then focus on the key factors that will impact on changing it … things

WILL change, often with immediate effect. It’s not uncommon for businesses to increase their

sales levels by 20% JUST by focusing on their conversion target.

3. Qualify Leads better up front

Time wasted on unqualified leads is the No.1 factor that can affect your sales success, because

not everyone is a prime prospect for your products or services. You can be “busy” all day talking

to people, but you won’t make sales unless you concentrate on qualified prospects, rather than

offering your product or service to people who are unreceptive, not ready for, cannot pay for and

are disinterested in what you’re offering. You qualify your leads by offering very specific

propositions to ensure that the people who respond to your marketing approaches are only those

who have the desire, the capacity and the motivation to buy your product or service.

4. Fish where the big fish are

Even if you have the most technically advanced fishing equipment, you’ll leave empty handed if

there are no fish in the lake. But if you just have a simple net, and the lake is teeming with fish,

your chances of a catch are much greater. Where you cast your line is crucial to catching fish …

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and the same is also true in business. Successful businesses fish where the big fish are. They talk

to customers who are familiar with their product or service, or already use it, or have a high

probability of using it. Don’t waste your time trying to convince people who don’t need your

product or service when there are customers out there who already know they need what you’re

selling … and are thus part-sold before they even see you.

5. Packaged Information Offers

The right offer can increase your response up to 300%. Yet few businesses ever go beyond a

token effort of making “some sort of offer.” Most people wrongly assume that their buyers

already know it all, or aren’t interested in reading lots of words. In truth your prospects crave as

much information as possible so they can make an informed purchase decision. By “packaging”

your expertise into a special booklet, report or seminar and offering it as an inducement to get

your prospects to contact you, you can bring prospects out of the woodwork in droves whilst

simultaneously establishing your expertise and at the same time educating and informing the

very people who are most interested in making a purchasing decision … which increases the

probability that you’ll get the sale.

6. Show the chain, sell the first link

No one buys a chain link by link. People either buy the whole chain or they don’t. It is the same

with converting business. If you show the customer all the steps in a sale and he or she agrees to

the first step, the customer has bought the chain … unless you break it. You show the chain,

make it clear how the phases in the sale are linked—from first agreement to purchase order—and

then sell the first link … which is attached to the last link. Sell the first link and you sell the

chain.

7. Using a planned agenda

A planned agenda for meetings with your prospects or customers is one of the most effective, yet

under-utilised, tools in selling. It offers a number of key benefits: it makes your sales meetings

more productive, effective and rewarding; it shows you’ve taken the time and effort to plan for

the meeting which creates a positive impact right from the start; it allows you to take control of

the meeting and keep to the allocated time; it increases your conversion rate by setting the right

expectation from the outset; it helps you understand who really makes the decisions; it helps you

to record and follow-through on any agreed actions and it will make you look and act more

professionally, thus enhancing your reputation and increasing the chance that you’ll win the sale.

8. Onionize to understand

To convert successfully you must first get to the essence of your customer’s problem or needs.

You must understand all of your customer’s concerns, desires, fears, and limits. You cannot

prescribe a solution until you diagnose their need. You cannot turn your customer’s need into a

want until you know how to put value on your customer’s desired state. Just as you peel an onion

layer by layer, so, too, you help your customer get to the “heart of the matter.” “Onionizing” is

akin to being an investigative reporter, detective, psychiatrist, doctor, and archaeologist. You

31

ask, probe, dig, diagnose, and listen to understand … then prescribe the solution and win the

sale!

9. Winning Quotes & Proposals

If either your product or your proposal are weak, your chances of a sale are slim to non-existent.

If you normally send out single page “quotes,” you’re asking your buyers to make a leap of faith

when they buy from you because they really have no idea if they’ll be getting a great service or a

lousy one … and you’re inviting comparison with your competitors. If you focus instead on

educating your buyers to understand the true value of your product or service by explaining how

it solves their major concerns, telling them exactly what you do for them at each step, they

KNOW it’ll be great. This will help you to win more tenders, charge what you’re truly worth and

increase your conversion rate.

10. Educate by giving reasons why

You’re continuously striving in business to move people first to desire and then to buy your

product or service, again and again. For most people, the missing link in this process is to

provide your buyers with a complete understanding of the reasons why you do what you do, why

you sell what you sell, why your product or service is better than others, why they should act,

and why they’ll be disadvantaged if they don’t. The more you help your buyers to understand the

tangible, compelling reasons why they should take action, the more powerful your positioning,

the more people will understand the value and benefits you’re offering, the more they will trust,

and the more comfortable they feel with what you’re offering.

11. Create Irresistible Offers

Remember, your prospects don’t need you as much as you need them. They have a multitude of

choices available to them. Unless you offer them a really meaningful benefit for doing business

with you, it’s easier for them to take no action at all. You therefore have to do everything you

can to tip the scales and make it irresistible for them to take the next step. You do this by

creating such a powerful and compelling offer that people would be foolish to pass it up. An

offer that makes it more advantageous to acquire your product or service than not to do so, one

which eliminates all the hurdles they have to jump over to do business with you and makes it

harder to say “no” to you than to say “yes,” can increase your results up to 300%.

12. Increasing Sales Skills

One of the most immediate ways of leveraging your business is to continuously train your entire

staff in non-manipulative, strategic selling principles, methods and understandings. Effective

selling is not just a matter of learning a sales spiel or having the gift of the gab. The finest sales

people in the world are helpful, not pushy. They believe in their product and make meaningful

recommendations and suggestions based on their personal experience of what actually works.

They provide the buyer with the information they need to make an informed decision … and they

know how and when to ask for the order! By training everyone in these skills, you’ll be amazed

at the massive compounding impact on your business.

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13. Better Telephone Skills

A few quick calls will demonstrate that most businesses don’t use the telephone “sales-

effectively”. For many customer enquiries, orders, or complaints, the telephone will be the

primary, if not the only, method of dealing with your business. If you mismanage your telephone

efforts, you waste opportunities galore, throw a fortune down the drain and jeopardize

relationships with your best prospects and customers. Yet you can enhance the telephone skills

of your team members both easily and inexpensively. This can turn the telephone into one of the

most powerful business tools available, create a great impression for your business every time

and produce explosively profitable results.

14. Constant follow-up

80% of all significant sales occur only after a minimum of five continuous follow ups … yet

only 8% of sales people ever ask for the order a fifth time! Constant follow-ups are an

enormously effective way of advancing and building your relationships, developing trust and

gently leading your prospect to a purchasing decision. You can get as much as twenty times the

sales and results if you constantly following up. When something makes such a significant

difference, you owe it to yourself to follow up … and keep following up in a nurturing way. It

will make a profound difference to your ability to convert business.

15. Recruit sales superstars

There is a special art to attracting and recruiting sales superstars for your business. They are

original, intelligent, innovative, relentless, clever, creative, eager to please, entertaining,

persuasive, compelling, highly communicative, learn very quickly and are a pleasure to deal

with. Superstars adapt to every situation, never give up and become even more determined when

presented with a challenge. Within three months they’ll normally be outselling your best

performers. They can form a bond where nobody else can do so and make sales nobody else can

get. Sales superstars don’t come cheap. But they’ll improve your conversion rate massively

which makes them worth every penny!

http://marketingwizdom.com/strategies/conversion

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Research Methodology

The study was conducted in Two Rivers Harley-Davidson Pune starting from 15th June 2015 till

13th August 2015.

There was no age or income criteria for the customers targeted for the study.

The method I am using in the project in order to get the insight of the customer is the In-depth

Interview method.

I am using this method in order to focus on their first experience with Harley-Davidson as in

Harley-Davidson we believe that the first experience matters a lot. Every interaction I do has a

different reply as I am dealing with retail customers so in order to explore the insight and

emotions of the interviewee and to get into the depths of their minds which cannot easily be

explored through any other method except for the In-depth Interview method this method is

being used.

Source of data:

Primary Data:

The primary data was collected through In-depth Interview method.

A total number of 1000 in person interactions at Two Rivers Harley-Davidson showroom Pune

and at various exhibition venues around the city to name a few Hard Rock Café Koregaon Park,

Indira College PCMC, Central Mall PCMC and Phoenix Market City Viman Nagar were done

and a sample of 1200 entries is taken for the project which is recorded and the responses are

generalized for better analysis.

Secondary Data:

The secondary data consisting of around 1200 prospects was provided to me by the company in

the form of pre-recorded interaction with the customers which were taken from company’s

customer analysis software called Torque by Mr. Mayur Desai (Asst. Manager Sales).

34

Facts and Findings

In Harley-Davidson the first experience of the prospect matters a lot, so a lot of focus is

given to the first interaction with the customers.

Regular follow up with the customer is a must for customer retention.

Test Rides when given in a group are more effective than solo test rides.

Store display motorcycles have a great influence in the minds of the prospects. As the

color in display sells the most. It also helps to divert a customer’s focus on a particular

product

The difference between Harley-Davidson and other motorcycle brands is that we don’t

just sell a motorcycle; we sell a lifestyle and a promise of personal freedom.

Maximum share of Harley-Davidson’s sales for Merchandise and P&A comes from

Harley owners.

Word of mouth plays a major role in prospect generation for Harley-Davidson.

Relationship marketing has been the key to Harley-Davidson’s success in India.

The current prospect to sales conversion ratio is currently 8%.

At Two Rivers Harley-Davidson Pune lots of events are organized to keep the customer

in touch with the company like Bike Nights, Surface Care events, Orientation programs

for the new riders, Sunday Bike rides etc.

35

Analysis and Interpretation

In the project I have interviewed customers who had their first experience with Two Rivers

Harley-Davidson with the purpose of knowing their experience with us and in order to enhance

their customer experience because in Two Rivers Harley-Davidson we believe that the first

experience or a customer with us is very important and this experience is the one which brings in

business for us.

Q. Have you ever visited Harley-Davidson showroom/event?

Ans.

The above pie-chart describes that everyone I had an interaction with has been to the Two Rivers

Harley-Davidson showroom

Almost 80% of the interviewees had been to the showroom and 20% were present both in the

showroom and in the display events.

Have you ever visited Harley-Davidson showroom/event?

Yes

No

Visited Both

36

Q. When you first time visited the showroom were you entertained by a sales consultant?

Ans.

Answer to this question was 70% very positive which created a very good impact in the minds of

the customers however 30% of the customers were not approached by the sales consultants about

which customers expressed their views and said that it was very dissatisfying experience for

them and also said the sales consultants were very busy. In my view as an intern at Two Rivers

Harley-Davidson Pune the factor which results in this problem is lack of workforce compared to

the walk-ins, as the walk-in flow is much more in the showroom as it is located in the mall

premises and also many duties of a sales consultant besides sales like Merchandize, Parts and

Accessories and Events.

Q. Did you take a test ride? If yes, how was your experience, if no, what were the obstructions

did you face?

0

10

20

30

40

50

60

70

80

Yes No

37

Ans.

Amongst all of the prospects I interviewed, I found only a 40% of the total prospects who took a

test ride with us. Rest 60% had some obstructions therefore they could not take the test ride.

Obstructions Faced:

Out of all the customers who did not take a test ride:

60% Casual enquiries

20% of the prospects were declined the test ride because of inappropriate weather

conditions or they arrived at wrong timings (evenings) or prospect not carrying driving

license or not wearing the test ride attire which is full denim jeans and shoes.

18% of the interviewees were interested in the bike but not in the test ride

2% of the interviewees enquired about the bike for their friends and relatives and

therefore did not take the test ride.

Amongst people who took the test ride:

1 being the lowest and 5 being highest.

Prospect to Test-Ride ratio

Yes

No

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51% of the people who took the test ride found the experience to be excellent.

35% of the prospects who took the test ride found the experience to be very good

For a total of 8% of all the prospects, the test ride experience was average.

For 4% of the prospects the test ride experience was poor

Whereas for 2% of all the prospects the experience was very unpleasant.

The causes of average poor and very poor experiences were:

Condition of the test ride vehicle

Mismatch between the customer expectations towards the product and the actual product.

Q. Are you interested in buying a super bike? If no, give reasons

Ans.

Reviews

1

2

3

4

5

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53% of the total prospects said they did not want to buy a super bike.

47% of the total prospects were interested in buying a super bike.

Prospects who didn’t want to buy a super bike had following obstructions:

Yes

No

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Financial problems Health issues Family issues Going for a 4wheeler

Personal issues

40

Amongst prospects who were interested in purchasing a Super bike:

Q. Which brand of super bike would you like to go for?

Ans.

75% of all the prospects who agreed to buy a super bike wanted to purchase Harley-

Davidson

15% of the prospects wanted to purchase a super bike from triumph

3% of the prospects were more inclined towards Indian

7% prospects wanted to go for other super bike brands.

The prospects who do not want to buy a Harley-Davidson Motorcycle were asked the reasons

for their choice:

Sales

Harley-Davidson

Triumph

Indian

Others1

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The reasons that were found because of which the prospects shifted to other brands of

motorcycle were:

31% of the prospects shifted from Harley-Davidson to other brands of motorcycles

because there was late or no follow up on them.

8% of the prospects said that they have a better relationship with other brand dealers.

20% of the prospects said that the prices for other motorcycles with same features are

low comparatively

41% of the prospects said that they shifted to other brands because the waiting period

of the bikes was too much/vehicle availability of motorcycles was less.

Late Follow Up

Better Relationship with OtherBrands

Low Prices

Availability of Vehicles

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SWOT Analysis

Strenghths

Customer retentionFinancial positionProduct Selection

Premium Market ShareDealer Network

Weakness

Dealer Inventory SystemEXpensive Product

International Dealer

Opportunities

Increaing Number of RidersIndian Industry Growth

Youth PopulationAsian Industry Growth

Threats

Union RelationsGovt. Laws

CompetitiorsDiversification

Availability of Substitutes

43

Recommendations and Suggestions

The store display matters a lot so the store display should everyday be monitored in order

to keep the Motorcycles or Merchandise or P&A in focus of the customer. It is an

excellent way of liquidating stock.

Tasks like Document collection, RTO follow up, Payment follow up etc. should be done

by other specific employee, not the sales consultant so that the sales team can focus on

the sales target achievement.

The condition of the test ride vehicles should be checked on a weekly basis and a

checklist should be made for the same for all the test ride vehicles which should cover all

the parts of the bike.

The test rides should be given in a group which takes lesser time and efforts plus is more

effective as people going together on a test ride tend to grow the feeling of brotherhood

or HOG more easily when going for a test ride together which definitely increases sales.

For customers who are being followed up on telephone and are being called for test rides,

all the terms and conditions should be clarified to them regarding the apparel, timings and

weather conditions before hand.

Follow ups should be done on a regular basis and a system should be developed which

could give the sales consultants a regular reminder on their follow up calls and if ignored

the sales consultant should be issued warnings and then the report should be sent to the

sales head. If implemented the results will definitely increase the current figures of sales.

The availability of the bikes should be increased and long periods of waiting should be

decreased.

The relationship building should always be strained upon when interacting with a

customer.

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Conclusion

I would like to conclude my project stating that the base of Harley-Davidson’s success is its

customer base as 92% of the revenue generated from merchandize and P&A comes from HOGs

thus it is very important for us to keep building a close and family like relationship with our

customers and give them an excellent experience.

I would also like to propose a weekly maintenance check list for the test ride vehicle so that the

test ride vehicle stays in a 100% condition and give the customers the proper feeling of Harley-

Davidson Motorcycle.

The follow up process should be tracked by the Sales Manager and Asst. Sales Manager so that

not even a single prospect is lost due to late follow up issues.

I have experienced this that test rides in groups are more effective then solo test rides as they

actually provide a more realistic experience to prospects of Harley-Davidson motorcycles and

the culture we follow. Group test rides are effective and efficient as in a group test ride a single

sales consultant can deal with 5 customers at a single time with different models of motorcycles

hence increasing the probability of conversion.

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Appendix In-Depth Interview Method:

Q. Have you ever visited Harley-Davidson showroom/event?

Ans. YES NO Visited Both

Q. When you first time visited the showroom were you entertained by a sales consultant?

Q. Did you take a test ride?

Ans. YES NO

If yes: If no:

Q. How was your experience? Q. What obstructed you to have a Test Ride?

Ans Good Poor

If poor:

Why?

Please rate your overall experience from 1-5.

Q. Are you interested in buying a super bike?

Ans. YES NO

If no:

Q. Why?

If yes:

Q. Which Brand?

Ans. Harley-Davidson B) Triumph C) Indian D) Others

If Harley-Davidson then okay.

46

If not:

Q. Why other brands?

Bibliography

http://www.harley-davidson.com/en_IN/home.html

http://www.harley-davidson.com/en_IN/Motorcycles/motorcycles.html

http://marketingwizdom.com/strategies/conversion

http://www.forbes.com/sites/davelavinsky/2014/03/18/how-to-increase-conversion-rates/`

Two Rivers Harley Davidson Showroom and Display Events

https://en.wikipedia.org/wiki/Harley-Davidson

https://en.wikipedia.org/wiki/Harley-Davidson_India