PRESENTED BY-

PAWAN SINGH
PRASHANT JADHAV
PRIYANKA TANPURE
RADHIKA JHALANI
SAMIUZZAMAN

PROJECT GUIDE-
MRS.RITA BALACHANDRAN

1
 DESIGN OF STUDY
OBJECTIVES
 To get insight knowledge as regards to the
two wheeler segment.
 To get practical as well as theoretical

knowledge towards two wheeler industry

 To get knowledge as regards to the scope of

two wheeler sector and various companies

targeting women. 

2
 OVERVEIW
AUTOMOBILE
INDUSTRY

3
 AUTOMOBILE INDUSTRY-
OVERVEIW
HIGHLIGHTS-
India is being recognized as potential
emerging auto market.
Foreign players are adding to their
investments in Indian auto industry.
Within two-wheelers, motorcycles contribute
80% of the segment size.
The Indian passenger vehicle market is
dominated by cars (79%).

4
 AUTOMOBILE INDUSTRY-
OVERVEIW
Tata Motors dominates over 60% of the Indian
commercial vehicle market. 2/3rd of auto component
production is consumed directly by OEMs.
India is the largest three-wheeler market in the world.
India is the second largest two-wheeler manufacturer in
the world.
India is the second largest tractor manufacturer in the
world.

5
 AUTOMOBILE INDUSTRY-
OVERVEIW
The number one global motorcycle
manufacturer is in India.
India is the fourth largest car market in Asia.
CAGR 14%

12 11.08
GR
9.74 CA 0.52
76%
Automotive production in million units

8.46 GR 13. 1.54

10 CA %
13 0.39
15. 1.31 0.56
8 0.35
0.43
1.21
0.37
6

4 8.44
7.61
6.53
2

0
2004 2005 2006

Two wheelers Three wheelers

Passenger vehicles Commercial vehicles

6
 TWO-
WHEELE
R
MARKET
• INTRODUCTION
• MARKET SIZE &
GROWTH
• DEMAND &SUPPLY
• MARKET
CHARACTERISTICS
• CONTRIBUTION OF
TECHNOLOGY
• EXPORT MARKET
 INRODUCTION
FACTORS AFFECTING SALES
Increase in credit and financing for auto
vehicles
Increase in consumer's salary
Constant petrol prices
Delay in initiation of Mass Transport System
Technological advancements

8
 TWO-WHEELER-
SIZE & GROWTH
Domestic sales volume 2006: 7.86 million units Export volume 2006: 0.59 million units

Honda
Honda
m otors
and motorsand Majestic
scooters Yamaha scooters Auto
India 3% Yamaha India 3%
9% 10% 4%
Others-a
TVS
2%
18% Others-b
3%
TVS
16%

Hero
Honda
Bajaj Auto
Bajaj Auto 41%
45%
27%
HeroHonda
19%

Domestic
sales
93%

Exports
7%

Mopeds
Scooter 4.4% Electric
Electric two Mopeds
11.7% Scooter two
wheelers 5.9%
0.1% 8.7% wheelers
0.0%

Production volume 2006:

8.46 million units

Motorcycles
83.8%

Motorcycl
es
85.5%

Domestic sales volume 2006: 7.86 million units Export volume 2006: 0.59 million units 9
 DEMAND AND SUPPLY-
DEMAND DRIVERS
Inadequate public transportation system,
especially in the semi-urban and rural areas;
Increased availability of cheap consumer
financing in the past 3-4 years;
Increasing availability of fuel-efficient and
low-maintenance models;
Increasing urbanization, which creates a need
for personal transportation;
Changes in the demographic profile;

10
 DEMAND DRIVERS
Difference between two-wheeler and passenger car
prices, which makes two-wheelers the entry-level
vehicle;
Steady increase in per capita income over the past
five years; and
Increasing number of models with different
features to satisfy diverse consumer needs.

11
 KEY SUPPLIERS
•Bajaj auto
•Hero Honda
motors ltd
•HMSI
•Kinetic motors
•LML
•Yamaha Shares of Two-Wheeler Manufacturers in Industry Sales

•REL ( FY2000-9MFY2005)

12
 Two-Wheelers: Comparative Characteristics

Scooter Motorcycle Moped

Price*(Rs. as in January < 22,000 < 30,000 < 12,000

2006)

Stroke 2-stroke, 4-stroke Mainly 4-stroke 2-stroke

Engine Capacity (cc) 90-150 100, 125, > 125 50, 60

Ignition Kick/Electronic Kick/Electronic Kick/Electronic

Engine Power (bhp) 6.5-9 7-8 and above 2-3

Weight (kg) 90-100 > 100 60-70

Fuel Efficiency (kms per 50-75 50-80+ 70-80

litre)

Load Carrying High Highest Low

*Ex-showroom Mumbai
Compiled by INGRES
13
TECHNOLOGAL CONTRIBUTION
Technological tie-ups of Select Players
Nature of Company Product

Bajaj Auto Technological tie-up Kawasaki Heavy Motorcycles

Industries Ltd,
Technological tie-up Tokya R&D Co Ltd, Two-wheelers

Technological tie-up Kubota Corp, Diesel Engines

HHML Joint Venture Honda Motor Co, Motorcycles

KEL Technological tie-up Hyosung Motors & Motorcycles

Machinery Inc
KEL Tie up for manufacturing Scooters
and distribution

LML Technological tie-up Daelim Motor Co Ltd Motorcycles

Hero Motors Technological tie-up Aprilia of Scooters

Compiled by INGRES
14
EXPORT MARKET
Two-Wheeler Exports from India (in numbers)
FY2000 FY2001 FY2002 FY2003 FY2004 CAGR 9MFY200
(FY2000- 5
04)

Scooters 20,188 25,625 28332 30116 53148 27.4 44832

Motorcycles 35,295 41,339 56,880 126122 187287 51.4 188807

Mopeds 27,754 44,174 18,971 23330 24234 -3.3 22739

Total 83,237 111,138 104183 179568 264669 33.5 256378

Source: SIAM

15
Company-wise two-wheeler exports
(FY2000-9MFY2005)
FY2000 FY2001 FY2002 FY2003 FY2004 CAGR 9MFY2004
(FY2000-
04)

Bajaj Auto 14924 16112 28527 53366 90210 56.8 87225

HHML 10061 10324 13023 21165 39254 40.5 43441

HMSI 0 0 1293 10916 31414 n.a 27734

TVS 7265 6621 7765 9636 28093 40.2 36666

Yamaha 15197 20446 20321 45546 32906 21.3 27539

Others 35790 57635 32752 39053 42792 4.6 33773

Total 83237 111138 103681 179682 264669 33.5 256378

Source: SIAM

16
VARIOUS
ASPECTS
•DEMAND IN
LAST 5 YEARS
•CURRENT
TRENDS
•COMPETITIVE
SCENARIO
 DEMAND IN LAST 5 YEARS

•Growth of gearless scooters in the market.

•Acceptance amongst women
•Growth in 75cc-125cc segment
•More disposable income.
•Crowded public transport.
•Increased awareness.
•Technological advancements.
18
 CURRENT TRENDS
AUTOMATIC START
TRENDY AND STYLISH BODY
NEW MODELS
SLEEK AND LIGHT WEIGHT SCOOTERS
E-BIKES

19
 Domestic production of scooters in India estimated at 0.97 million units
 Domestic consumption of scooters accounted for around 94% with the balance being
exports
 Honda Motors has the largest share with 58% followed by TVS Motors and Hero
Honda with 25% and 9% respectively in the domestic market
 Honda Motors is also the largest exporter accounting for 37% followed by Hero
Honda and TVS Motors with 33% and 17% of exports

Domestic
sales
94%

Exports
6%
Kinetic
Hero Honda Motors Bajaj Auto
9% 5% 3% Kinetic
Motors Bajaj Auto
TVS TVS 10% 3%
25% 17%
Production volume 2005:
0.97 million units
Honda
Motors
Honda and
Motors and Scooters
Scooters 37%
58% Hero
Honda
33%

Domestic sales volume 2005

Domestic sales volume 2006: Export
Export
volume
volume
2006:2005
0.91 million
million units
units
0.91 0.055
0.055
million
million
units
units
20
SEGMENT

48% 32% 13% 2% 4% <1% - <1% -

9% 3% 25% 58% - 5% - - -

- - 95% - - 2% 3% - -

- - - - - - - - 100%

Overall market
share (%)
41% 27% 18% 9% 3% <1% <1% <1% <1%

21
SCOOTER MARKET

22
 Breakup of scooter market across various categories is shown below:

% Share by engine capacity (cc) % Share by region

Segment % Region %
< 75 cc 0 North 20
75 cc and < 125 cc 85.2 South 35
125 cc and < 250 cc 14.8 West 30
Above 250 cc NA East 15

% Share by gear / gearless % Share by urban / rural

Geared Gearless Urban Rural

15 85 91 9

% Share by gender

Male Female

55 45

 Due to high demand from school / college girls, housewives and working women, gearless
scooter segment has emerged as the second largest category in the two-wheeler segment,
after motorcycles
– Gearless scooters account for around 85 per cent of total scooter sales
 About 45 per cent of the customers for gearless scooters are women
23
 WAKE UP CALL FOR TWO-WHEELER
SEGMENT
Sales of two-wheeler
dropped by 8% in 2007-
2008.

Decline in motorcycle
segment by 12%.

Same period, scooter

segment grew by 11%

24
 75 cc and 125 cc and
75 cc < 125 cc < 250 cc
Above 250 cc

 NIL  0.78 million units  0.14 million  NIL

Current 2007 units

NIL  16%  10%  NIL

CAGR (%)- 2007
to 2011

Projected 2011 NIL  1.47 million units  0.33 million  NIL

units
 Fuel efficient  Perfect
 Can travel long combination of
Reasons for distances style and power
growth  Comfort and ease  Youth choice
 Rise in female  Plans to cater
working group to all segments
 All the suppliers may it be by
strongly focusing in age, sex
this segment

 Scooters are more preferred by both male and female but dominated by female of all the age group
 Considered as a safe means of transportation
 No demand seen in the <75 cc and above 250 cc in the scooter segment
– All the major participants focusing on segment between 75 cc and < 250 cc
– Maximum growth witnessed in this segment
 New launch of scooters are primarily between 75 cc and < 250 cc
25
 MARKET BREAKUP OF SCOOTERS BY VARIOUS
CATEGORIES – 2007 TO 2015
% Share by region High sales in the West and
Region 2007 2011 2015 south indicates preference
by women. Greater number
North 20 23 25 of working women in these
East 18 15 10 regions
West 36 33 35
South 26 29 30

% Share by segment
Scooter market would see
Segment 2007 2011 2015
an appreciable shift to 125
< 75 cc - - -
cc and <250 cc as power,
75 cc and < 85 82 78
125 cc convenience and economy
125 cc and < 15 18 22 would be key attributes
250 cc

Above 250 - - -
cc
26
 MARKET BREAKUP OF SCOOTERS BY VARIOUS
CATEGORIES – 2007 TO 2015
% Break-up  Employment opportunities
Year (male / female)
for woman and the necessity
Male Female of both husband and wife
working are leading to more
2007 55 45 and more woman joining the
2011 46 54 work force. Creating a new
2015 38 62 market for scooters
% Break-up
Year (urban / rural)  Growth in scooter segment
Urban Rural seen in the rural areas with
buying power increasing
2005 91 9
2011 89 11
2015 86 14
% Share by age
 Scooters targeted at the less
Age 2007 2011 2015 than 40 years age consumers
< 25 32 32 30  By this age many owners of

25 and < 40 43 44 46 two wheelers have migrated

to a car
40 and < 60 17 16 16

Above 60 8 8 8

27
OPTIONS FOR WOMEN

28
4 P’s option HONDA ACTIVA TVS SCOOTY PEP + HERO HONDA PLEASURE

PRODUCT ENGINE CAPACITY- ENGINE CAPACITY – ENGINE CAPACITY-

120cc, FUEL TANK- 6 90cc, FUEL TANK- 5 LT, 102cc, FUEL TANK- 5 LT,
LT, TOP SPEED- 65 TOP SPEED- 80 KMPH, TOP SPEED- 77 KMPH,
KMPH, MILEAGE- 37.09 MILEAGE- 41.2 KMPL MILEAGE- 37.33 KMPL
KMPL

PRICE EX-SHOWROOM EX-SHOWROOM EX-SHOWROOM

(MUMBAI) (MUMBAI) (MUMBAI)
Rs.41400 Rs.34000 Rs.37200

PLACE ALL STATES METRO POLITAN AND ALL STATES

TWO TIER CITIES

PROMOTION SPECIFIC MARKETING AGGRESSIVE AGGRESSIVE

(ONLY TO DEALERS) MARKETING MARKETING

29
 CASE
STUDY

•Hero Honda
Pleasure
 CASE STUDY-
HERO HONDA PLEASURE
The process by which a marketer develops and
presents stimuli to a defined target audience with the
purpose of eliciting a desired set of responses.

Marketing communication tools:

Direct tools Indirect tools

-Advertising - Public relations
- Personal selling - Sponsorships
- Direct marketing - Word of mouth
Exhibitions

31
 Forget the 4 Ps…think of 4 Cs

• Forget product…study consumer wants and

need
• Forget price…understand the consumer’s cost
to satisfy that want or need
• Forget place…think of the consumer’s
convenience to buy
• Forget promotions…the word is communication

32
Hero Honda Pleasure
Image
Based on the Market Research Functional
100cc engine
Gearless comfort
Light weight and easy to maneuver

Mental Social
I have an identity Hero Image of a modern
I can decide where I wish to go Honda woman
I can stand up against the tide Symbol of self reliance
Pleasure

Spiritual
This is my personal belonging
Girls are special; so is my bike

33
 Values and personality Reason to believe
•Image •Legacy of Hero Honda
•Youthful ‘n Vibrant •Proven technology
•Expression of the woman •Established service
Essence
A woman’s true
Benefits Friend Deliverables
•Independence •Style
•Effortless drive •Comfort
•Fuel Economy •Easy ride

•Women need their own space

Insight •They want their own identity
•They want to stand at par with men

Competitive Environment Target

•Established Players •young girls , working Women
•9% Share for HH Pleasure in Yr 1 • as well as ‘GAON Ki GORI”

34
 Brand Strategy
 Pleasure: Not just a scooter, it’s a lifestyle
 A woman’s identity
 Symbol of free spirit
 Prized possession
 A friend for a life
 A comprehensive communication to drive the strong product to grow at 20% YOY
growth rate (same as market growth)

Enhance the Brand Communication to build the Brand in the

Mind, Heart and Soul of the audience

35
 Communication
Strategy
The Objective
 Enhance the image of Pleasure as most preferred scooter for women.

The Goal
 Connect with the target group as a unique lifestyle and personality brand

The Task
 To be present at almost every touch point with the communication
target group

The Challenge

 To break the clutter and communicate the Brand message.

36
 Creative Strategy
 Convey the positioning and enhance imagery
 Emotional as well as rational approach
 Stress of the Exclusive for Women factor
 Influence the influencers.
 Sense of belonging with the Brand Pleasure
 Carry the halo effect of the Hero Honda into the Scooter
segment

“Its a Pleasure”; “Its my Pleasure; “Its Our Pleasure”

37
38
 Media Habits: find out habits and
decide advertising

I find the
newspaper I am a
supplement regular
s really cinema
worth goer
reading 27%
53%

I am a TV
I read a When I need
I listen to the addict
newspaper information the
radio every 45%
most days first place I
look is the day
60% 31%
internet
37%
Source: TGI 2007

39
 Media Strategy

Print media • Print

– 2 insertion /week
• 1 in Mainline
• 1 Regional Print
Television • TV
– 5 Mainline Channel
• 3 General Entertainment Channel
• 1 Regional Satellite Channel
• DD channels
Radio • Radio
– Radio Spots
• Outdoor
Outdoor – Hoardings

Other media • Activation

– Sales Promotion Activity

40
 DIGITAL SPACE
 Website Banners ads: Impress with banner and
direct to Pleasure Community online.
 Community tie-up with Sunsilk Gang of Girls.
 User generated Content on Female Blogs
 Search engine Ads Google - Scooter/ Pleasure
=Hero Honda Pleasure.
 Promote offers through SMS’s On Women day.
 SMS icons of Pleasure.
 Yahoo Female Avatars of Pleasure.
 MSN cool zones with Pleasure Branding.
 Develop ring tones for the Pleasure Signature
Tune
 Pre email pop ups.
 Viral advertising of Pleasure
41
 Experiential/ Trial
Inducing
Just4Her Showrooms
 Experience the “Pleasure of being a Girl” zones
 Special events for Women’s Day
 Career, Gossip and Discussion forums
 Workshops for Health, Beauty and Well being

 Moonlight Pleasure Trails

Ground Activation
 Miss Pleasure contest
 Sponsorship in college festivals

Long-term Friendships are difficult to replace

Improved packaging and

formulation 42
ANALYSIS
 ANALYSIS OF THE
SURVEY
WOMEN-
 According to the survey 100% women preferred light weight vehicle. These enables-
1. Easy handling.
2. Convenience in riding.
3. Parking.
 70-75% women desire to have trendy, peppy, stylish bikes. They feel that the scooter
should be feminine.
 For college students and young working women “looks” play the most important role. As
90% college students said the want good looking bikes.
 Some women complained about the height of the seat. Average height of women in India
is approximately 5”2 inches. So, keeping that in mind the seat of the scooter was too
high for some women, the complained of not reaching to the ground for easy balance.

44
 ANALYSIS
 30% feels the scooter should be useful to all the members of the family.

FAMILY SCOOTERS

25% LIGHT,WEIGHT &

75% TRENDY IGHT

 Women need scooter with lots of space to load and keep their baggage.

45
 ANALYSIS
 85% respondents said that they are satisfied with their scooter.
Subsequently the rest 25% said following reasons of not being satisfied-
1. Low average
2. Heavy maintenance charge-like change of oil at frequent intervals,
3. Want stylish looks and light weight.

unsat isf ied

25%

15% SATISFIED
UNSATISFIED
satisfied
85%
85%

46
 ANALYSIS
One thing which was appreciated by most of the
respondents was the self start facility. The
hassle free start of the scooter is rated the best
feature amongst the respondents.
Some respondents were of the view that, the
seats of the newly launches sleek models for
women scooters, are not comfortable for double
seat. The seats are small and two people cannot
sit comfortably on it for a long time.

47
 ANALYSIS
DEALERS-
Maximum number of dealers focuses less on the sales of
scooter for females
As per the sales figures of different dealers the sales of the
scooter for women is less compared to the bike segment
Maximum dealers have less number of product ranges to offer
in scooter for females (gearless) than bikes (geared).
Most of the dealers do not pay attention to promoting or
advertising the two-wheeler because the company’s brand
name and mouth publicity along with advertisement in different
Medias are more than enough

48
 ANALYSIS
 The percentage of females as students is almost as much as
house wives.
 According to the dealers most of the sales are for light weight
easy handling and stylish bikes for females
 Because of the products less price range, easy availability in
the market, more affordability the various companies like hero
Honda, TVS do not offer any discount on purchase
 Honda motors have their own showrooms and outlet throughout
the countries. These outlets do not even give discounts on full
down payment. Whereas their counter parts, dealers who
distribute the Honda, kinetic, Bajaj, TVS scooters, sometimes
offer cash discount on full payment. As said by Sunil auto,
1000/- cash discount on full payment is provided.

49
 ANALYSIS
The dealers provide loan facility only on the
document basis. An individual having proper
required documents only will get loan.
Company owned dealers like Honda do not offer
any accessory on purchase, but the dealers
which are authorized, provide seat covers, mud
guards, engine oil as addition. This is done for
the dealers own promotion and publicity
Most of the dealers of Honda complain about the
delayed delivery of the most demanded scooter-
Honda Activa
50
RECOMMENDATIO
NS

•FOR SCOOTER
PRODUCING
COMPANIES
 RECOMMENDATIONS
 Majority of the women, who own scooter, feel the scooters
available are heavy. This is also one of the reasons for
women to get discouraged for women to ride scooters. So
light weighted scooters should be introduced in the market.
 The leg space provided in the scooters in too inconvenient.
This also causes accidents in case of imbalance. Hence the
manufacturers should try to improve this situation. 
 Many women complain about the inconvenience caused
while filling up petrol. The scooters can be launched with
additional feature i.e. top loading of petrol.
 Scooters should be more stylish and attractive to attract
more women customers.

52
 RECOMMENDATIONS
 The accessories that are provided by the company like hand gloves, key
chains, helmets, etc. should be promoted more aggressively to attract
more women customers.
 There is a lot of scope for companies like kinetic and Bajaj to foray into
this segment. With the kind of growth and already available technology,
it will be easy to penetrate the market.
 With the growing cost of petrol, and crowd in public transport, a wide
spectrum opens for the scooter industry to target this opportunity.
 Companies like hero Honda, TVS are supporting their product with
educating the potential customers through advertisements on
television, print media and other media as well. This has opportunities
for other companies to launch their product in the wide market.

53
 RECOMMENDATIONS
 According to the study done, there is a lot of scope of sales of the scooter in the
two and tree- tier cities in India. The study shows more sales in urban areas
almost 90% and subsequently less in rural areas about 10%. This proves to be an
opportunity for the companies to launch a product for rural areas.
 According to the region wise distribution, there is lot of scope for sales in the east
as the share counts to only 15% of the total sales in the country.
 Though 45% gearless scooters are for women, there are about 10% scooters
which are specially meant for women.
 Most of the respondents surveyed, said they would prefer bikes, scooter having
features which would suit every ones profile in the family. This opens new
horizon for companies to launch scooters in 75- 125 cc segment useful for males
as well as females. At present only Honda Activa and Honda Dio suits the bill, so
there is lot of scope for developing new designs in this segment and marketing it
appropriately.

54
 INTERVEIW
Mr. N.K. Rattan, Divisional Head, Marketing and
Sales, Honda Motorcycles and Scooter India. –
What is the current market position of Honda scooters?
Honda Motorcycles and Scooters has been the market
leader in the scooter segment since the launch of
Activa. Honda has become the reliable partner for
Indian customers.
What is your latest launch?
He said that the new Aviator scooter will help the
Honda to target the Urban male who needs
performance and aggressive styling.

55
 INTERVIEW
Future ventures in India?
Recently Honda announced its intention to sell super bikes in
India.. He talked about the launch of Honda’s CBR in India,
super bikes and its safety in Indian roads.
Going by the latest trends of e-bikes and scooters, does Honda
plan to launch that too?
Honda doesn’t plan to enter that segment Mr. N.K. Rattan
also added that there is potential growth in 75cc-125cc
segment.

56
CONCLUSION
 CONCLUSIONS
GROWTH IN GEARLESS SCOOTERS AND BIKES
AGGRESIVE PROMOTION FOR WOMEN
SCOOTERS.
MANUFACTURE OF FAMILY SCOOTERS.
TAP VARIOUS SEGMENTS APART FROM, 75CC-
125CC SEGMENT.
COME UP WITH IN EXPENSIVE, AFFORDABLE,
MORE MILAGE PROVIDING SCOOTERS.
TECHNOLOGICAL TIE-UPS TO GENERATE
MARKET NEEDS.
58
59