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Group Members

Neha Shetty Pooja Redkar Priyaka Mathews Sanket Vaidya Sneha Kothyari Anand Iyer 17 19 23 30 34 59

Analysis of Demand
Definition Demand Function

Crux of the case


Recession during 1995-98 An industry which survived The Two- Wheeler Industry Reason strong demand conditions

The influence of Market Segmentation


Geographical segmentation
Income segmentation Gender segmentation

Demand function
Purchase by the consumer depends on number of key variables or determinants

Dx = f (Px, Ps, Pc, Yd, T, A, N)

Factors affecting demand


Geographic areas Income Gender Age Fashion Government policy

Performance during Recession


Industrial slowdown

Still, an impressive 4% growth rate of two-wheeler

Year Overall growth rate of automobile Growth rate of two-wheeler industry

1994-95 1995-96 1996-97 1997-98


8.0 6.0 -1.5 2.0

9.5

8.0

4.0

5.0

The two-wheeler Industry is projected to grow at 6-7 % in 2008-09

Reasons for the positive growth


Increase in the number of middle income group in the rural areas Government support Increase in income

The process
1

Government Support

Increase of Rural Income Increased demand of two-wheeler


Increase in market share of two-wheeler

3 4

Market Share

Role of Manufacturers in a Demand driven industry


Demand forecasting
Analysis of the market Keeping a check on the competitors strategy. Abiding by the environmental policies

of the government.
Meet the International Standards

Role of Manufacturers in a Demand driven industry


Estimation of the cost of Raw materials
Estimation of the cost of Processing Estimation of the cost of Transportation Estimation of the cost of Distribution Demand worth of production

JOINT VENTURES
Definition A tool for boosting a demand driven industry.
Major Projects Enhances Skills and Expertise Synergy Effect Better use of resourses Goodwill Risk Sharing Economical

Learnings from the case


Two wheeler industry is a

demand driven industry.


The demand should be worth the production.

It should concentrate more on


product differentiation

Thank You