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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





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

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

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