Professional Documents
Culture Documents
B USINESS R ESEARCH
METHOD
Segmentation & Positioning strategy for KTM
Duke bikes in India
DECLARATION
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Table of Contents
Title of the project .......................................................................................................... 3
Introduction/background to the research (including reasons for doing the project) .... 3
Why this research .......................................................................................................... 3
Literature review ........................................................................................................... 3
Management Decision Problem ..................................................................................... 4
Business Research Problem........................................................................................... 4
Approach to the Problem ............................................................................................... 4
Objectives and sub problems ......................................................................................... 5
Research Design ............................................................................................................ 5
Descriptive Research .................................................................................................. 5
Sampling Plan ........................................................................................................ 5
Sources of Data ....................................................................................................... 5
Initial Approach ............................................................................................................. 6
Questionnaire ................................................................................................................ 7
Analysis .......................................................................................................................... 7
Factor Analysis........................................................................................................... 8
Kaiser-Meyer-Olkin Measure of Sampling Adequacy............................................ 8
Bartlett's Test of Sphericity ................................................................................... 8
Components of Each Factor.................................................................................. 10
Conclusion from Factor Analysis ......................................................................... 11
Conjoint Analysis ..................................................................................................... 11
Conclusion from conjoint analysis ........................................................................ 16
Cluster Analysis ....................................................................................................... 18
Conclusion from Cluster Analysis ........................................................................ 20
Perceptual Mapping ................................................................................................. 20
Conclusion .................................................................................................................... 21
Appendix 1 Questionnaire ........................................................................................... 22
Appendix 2 Files .......................................................................................................... 30
Appendix 3 Cluster Variables...................................................................................... 31
Bibliography/References .............................................................................................. 31
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LITERATURE REVIEW
What is market segmentation? It is nothing but the process of breaking down
all consumers into groups of potential buyers with similar characteristics.
Choosing select groups of people and organizations to sell to is called targeted
marketing, or differentiated marketing. It is a relatively new phenomenon.
Mass marketing, or undifferentiated marketing, came first. It evolved along
with mass production and involves selling the same product to everybody.
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Avoid head-on competition with other firms trying to capture the same
customers
Develop new offerings and expand profitable brands and products lines
Remarket older, less-profitable products and brands
Identify early adopters
Redistribute money and sales efforts to focus on your most profitable
customers
Retain “at-risk” customers in danger of defecting to your competitors
The trend today is toward more precise, targeted marketing. Figuring out
“who’s who” in terms of customers involves some detective work, though-often
market research. A variety of tools and research techniques can be used to
segment markets. Government agencies, such as the Census Bureau, collect
and report vast amounts of population information and economic data that can
reveal changing consumption trends. Technology is also making it easier for
even small companies and entrepreneurs to gather information about potential
customers.
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RESEARCH DESIGN
Descriptive Research
The respondents were asked about their attitudes towards several
factors that may affect their choice of bike
The questionnaire was administered through online surveys amongst
the target group.
The scaling techniques used were: The 7/9 point Likert scale for attitude
measurement
The Questions in the questionnaire were a mix of disguised as well as
undisguised questions.
Sampling Plan:
Target Population
The 18-45 age group people.
Sampling Framework:
18-45 age group people who either own a bike or are planning to buy a bike.
Sampling Method
Random sampling has been employed
Sources of Data:
An online survey floated on google forms was conducted on people who were
either owning a bike or planning to have one. Convenience sampling was used
in identification of those respondents
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Exploratory Phase
Initial research to be conducted with a few nearby consumers (students, friends
etc.) in order to completely identify the list of variables which build up the
consumers’ perception on the product i.e. KTM bikes and other bikes available
in the market.
Descriptive Phase
This phase is a quantitative one and is proposed to be descriptive research
phase where the structured questionnaire is prepared to measure the factors
of consumer preferences with regards to KTM and of their biking preferences
in general.
Data Filtering:
Though efforts were made to take utmost care to ensure no errors in filling the
questionnaires, nine responses out of a hundred and eighty nine were
insufficiently filled or were poorly filled (e.g. All fields were filled as 1). Such
responses were filtered out.
INITIAL APPROACH:
An extensive research on factors affecting motorcycle buying behavior was
carried out accessing the huge amount of literature available on the subject.
Our analysis of the mind of the Indian consumer and the nature of the industry
we were focused on led us to conceptualize the important attributes of bikes in
an Indian context under the following heads, we could narrow down to 12
factors which affect bike buying. This was chosen based on interactions with a
sample of users
Torque
Engine Output
Ride Quality
Handling
Price
Maintenance Cost
Resale
Fuel Economy
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Category
Color
Brand
Styling
QUESTIONNAIRE:
The Questionnaire was designed in a scientific manner taking into account the
discussions held in the classroom. Proper care was taken while designing the
questions and evolving an order. Initial focus was on studying the factors
affecting Brand choice. Latter part of the questionnaire focused on gauging the
respondents’ attitude towards the attributes.
(See appendix 1)
ANALYSIS:
Analysis of the data was done on SPSS 16.0
(See appendix 3)
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Research Problem 1:
Approach:
Factor Analysis:
Df 15.000
Sig. .000
Rejecting the null hypothesis and we can go ahead with the factor analysis as
correlation exists between the variables.
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Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Comp
onent Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
There are 3 factors according to this method, with Eigen values greater than
1, these 3 factors account for more than 67% of the total variance.
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Component
1 2 3
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Among the three factors price and torque dominates among cost and
performance centric features. This observation is in line with the expectation
of our target group.
Research Problem 2:
Approach:
Conjoint Analysis
Conjoint analysis attempts to determine the relative importance consumers
attach to salient attributes and the utilities they attach to the levels of
attributes.
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Card Price of KTM Torque of KTM Fuel Economy of KTM Engine Capacity of KTM
Id Duke Duke Duke Duke
1 <150 000 15-25 <25 <200
2 150 000-250 000 >25 >50 200-500
3 >250 000 >25 >50 >500
4 <150 000 >25 <25 <200
5 150 000-250 000 15-25 25-50 200-500
6 >250 000 >25 >50 >500
7 <150 000 <15 <25 200-500
8 150 000-250 000 15-25 >50 >500
9 >250 000 >25 >50 200-500
10 <150 000 15-25 >50 200-500
11 150 000-250 000 >25 >50 <200
12 >250 000 >25 25-50 >500
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0.00
<150 000 150 000-250 000 >250 000
-0.20
-0.40
Utility
-0.60
-0.80
-1.00
-1.20
Price
Actual Scaled
Values Values
Range Importance
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1.000 23.53%
0.00
<25 25-50 >50
-0.20
-0.40
-0.60
-0.80
Utility
-1.00
-1.20
-1.40
-1.60
-1.80
-2.00
Fuel Economy
Actual Scaled
Values Values
Range Importance
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0.625 14.71%
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
Engine Capacity
Actual
Scaled Values
Values
Range Importance
0.875 20.59%
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-0.40
-0.50
-0.60
-0.70
Torque
Range Importance
1.750 41.18%
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These attributes were taken from the factor analysis output. Thereafter we ran
this analysis to find out the importance attached to these attributes by the
potential customers.
3 <3,00,000 0.500
3 100-130 0.833
3 >=5 0.333
1 2 -0.542 20.59%
As we can see, for the target customer, torque is the most important factor
Research Problem 3:
Approach:
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Cluster Analysis
Agglomeration Schedule
1 4 8 4.000 0 0 3
2 2 5 4.000 0 0 5
3 3 4 8.000 0 1 8
4 9 10 14.000 0 0 7
5 1 2 16.000 0 2 9
6 6 7 21.000 0 0 7
7 6 9 24.000 6 4 8
8 3 6 28.750 3 7 9
9 1 3 55.381 5 8 0
Cluster Membership
Case 3 Clusters
cvar01 1
cvar02 1
cvar03 2
cvar04 2
cvar05 1
cvar06 3
cvar07 3
cvar08 2
cvar09 3
cvar10 3
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Cases
Vertical Icicle
Case
Number of
clusters cvar10 cvar09 cvar07 cvar06 cvar08 cvar04 cvar03 cvar05 cvar02 cvar01
1 X XX XX XX XX XX XX XX XX XX
2 X XX XX XX XX XX XX X XX XX
3 X XX XX XX X XX XX X XX XX
4 X XX X XX X XX XX X XX XX
5 X XX X X X XX XX X XX XX
6 X XX X X X XX XX X XX X
7 X X X X X XX XX X XX X
8 X X X X X XX X X XX X
9 X X X X X XX X X X X
Dendrogram
* * * * * * * * * * * * * * * * * * * H I E R A R C H I C A L C L U S T E R A
N A L Y S I S * * * * * * * * * * * * * * * * * * *
C A S E 0 5 10 15 20 25
Label Num +---------+---------+---------+---------+---------+
cvar04 4 ─┬─┐
cvar08 8 ─┘ ├─────────────────────┐
cvar03 3 ───┘ ├───────────────────────┐
cvar09 9 ─────────┬─────────┐ │ │
cvar10 10 ─────────┘ ├─────┘ │
cvar06 6 ─────────────────┬─┘ │
cvar07 7 ─────────────────┘ │
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cvar02 2 ─┬─────────┐ │
cvar05 5 ─┘ ├─────────────────────────────────────┘
cvar01 1 ───────────┘
Clusters Identified
The Value Oriented Customer cvar1,cvar2,cvar5
The Performance Oriented cvar3,cvar4,cvar8
Customer
The Look Conscious Customer cvar6,cvar7,cvar9,cvar10
Research Problem 4:
Approach:
Perceptual Mapping
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We further did the perceptual mapping for the available bikes and the result
is displayed below.
Classy distinctive
Honda CBR 250R
Royal Enfield
Thunderbird
Royal Enfield Classic
350
Royal Enfield Classic
500
KTM Duke 200
Kawasaki Ninja
Price affordable
CONCLUSION
Based on the results obtained we suggest the following:-
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APPENDIX 1: QUESTIONNAIRE
Consumer Survey on Premium Bikes
* Required
How important are the following attributes if you are planning to buy a bike : Price
1 2 3 4 5 6 7
Torque
1 2 3 4 5 6 7
Engine Output
1 2 3 4 5 6 7
Ride Quality
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1 2 3 4 5 6 7
Handling
1 2 3 4 5 6 7
Color Options
1 2 3 4 5 6 7
Maintenance Cost
1 2 3 4 5 6 7
Resale Value
1 2 3 4 5 6 7
Brand Image
1 2 3 4 5 6 7
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Fuel Economy
1 2 3 4 5 6 7
Overall Styling
1 2 3 4 5 6 7
If Naked Bikes are priced higher than the similar premium/semi premium bikes, I will not
consider buying them even if they had new additional features *
1 2 3 4 5 6 7
I am not comfortable with the idea of "posture and riding position on naked bikes" *
1 2 3 4 5 6 7
Owning a naked bike will set me apart from the crowd; I will be seen as a trend-setter *
1 2 3 4 5 6 7
Naked bikes being a niche product will set me apart from crowd *
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1 2 3 4 5 6 7
I believe that the safety and strength of a naked bike is as per the overall industry standards *
1 2 3 4 5 6 7
1 2 3 4 5 6 7
I am concerned about the ever increasing petrol prices and a commuter bike will insure me
against this *
1 2 3 4 5 6 7
The low maintenance cost of a commuter bike makes it a very attractive option ar far as my
next car purchase is concerned *
1 2 3 4 5 6 7
Buying a naked bike makes sense to me only when it has a substantial resale value *
1 2 3 4 5 6 7
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I will think twice before buying a naked bike since it is a new and untested concept *
1 2 3 4 5 6 7
Rate These bike brands on following styling attribute : Honda CBR 250R
1 2 3 4 5 6 7 8 9
Conservative Sporty
Rate These bike brands on following image attribute : Honda CBR 250R
1 2 3 4 5 6 7 8 9
Rate These bike brands on following image attribute :Hero Karizma ZMR
1 2 3 4 5 6 7 8 9
Rate These bike brands on following image attribute :Bajaj Pulsar 200 NS
1 2 3 4 5 6 7 8 9
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1 2 3 4 5 6 7 8 9
Rate These bike brands on following image attribute :Royal Enfield Thunderbird
1 2 3 4 5 6 7 8 9
Rate These bike brands on following image attribute :Royal Enfield Classic 350
1 2 3 4 5 6 7 8 9
Rate These bike brands on following image attribute :Royal Enfield Classic 500
1 2 3 4 5 6 7 8 9
Rate These bike brands on following image attribute :KTM Duke 200
1 2 3 4 5 6 7 8 9
1 2 3 4 5 6 7 8 9
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1 2 3 4 5 6 7 8 9
1 2 3 4 5 6 7 8 9
Rate These bike brands on following styling attribute : Hero Karizma ZMR
1 2 3 4 5 6 7 8 9
Conservative Sporty
Rate These bike brands on following styling attribute : Bajaj Pulsar 200 NS
1 2 3 4 5 6 7 8 9
Conservative Sporty
1 2 3 4 5 6 7 8 9
Conservative Sporty
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Rate These bike brands on following styling attribute : Royal Enfield Thunderbird
1 2 3 4 5 6 7 8 9
Conservative Sporty
Rate These bike brands on following styling attribute : Royal Enfield Classic 350
1 2 3 4 5 6 7 8 9
Conservative Sporty
Rate These bike brands on following styling attribute : Royal Enfield Classic 500
1 2 3 4 5 6 7 8 9
Conservative Sporty
Rate These bike brands on following styling attribute :KTM Duke 200
1 2 3 4 5 6 7 8 9
Conservative Sporty
1 2 3 4 5 6 7 8 9
Conservative Sporty
1 2 3 4 5 6 7 8 9
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Conservative Sporty
1 2 3 4 5 6 7 8 9
Conservative Sporty
Rate These bike brands on following styling attribute :TVS Apache RTR
1 2 3 4 5 6 7 8 9
Conservative Sporty
Your age
M
Your gender
Submit
APPENDIX 2: FILES
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BIBLIOGRAPHY/REFERENCES
http://ktm.com
http://en.wikipedia.org
http://www.google.com/finance
http://www.bajajauto.com
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