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Submitted By: Shivam Bhasin Group: 2
ID No. : 1011071
Signifying the strength of a thunder clap and the sleek body of a Hawk (chopped down to Hoc). The name signifies strength and extraordinary features that the product (Customized Chopper Bike) would embrace. The hyphen (-) in between representing the imminence of relationship that: We value our customer!
Tagline: Chop it, build it, own it!
As the product is offering a uniqueness of its own, the tagline “Chop it! Build it! Own it!” signifies the exclusivity while offering customers, the power and right to build and own what they deserve!
The logo with circles and shades of tattoos represents: the inventive and creativity that we believe our team possess. With the intent of providing a strong bonding and offer our customers with the same innovative and creative designs in future as well!
Bike customization is about making your bike reflect you as an individual. This can be done by simple bolt-on replacement modifications, or the more advanced custom alloy wheel, custom sound and custom disc brakes, right the way through to major frame and hardware modifications such as street-fighters and extended swing-arms etc. Today I want to introduce and identify the availability one simple modification that will affect how you interact with the bike, as well as make your bike that bit more like your own. This is the beginning of a series of threads that will identify other bolt-on option that will personalize your bike.....
The project report has been made after doing an in depth market secondary & primary data analysis. On the basis of the research the report has been made for the product ‘Customized Choppers’. A full-fledged research had been done on the secondary data regarding our product after which we have approached the local market players to understand the sector well. We’ve decided upon the target segment which we have to concentrate on after analysing the data. Then the strategies were decided upon for selling the product.
INTRODUCTION TO SECTOR………….……………………………………………….5 COMPETITOR ANALYSIS........................................................................................…...10 CONCEPT DEVELOPMENT…………………………………………………………….15 PLAN FOR CONCEPT TESTING………………………………………………………..17 CONCLUSION……………………………………………………………………………20 REFERENCES.……………………………………………………………………………21
INTRODUCTION TO THE SECTOR
In the last five to six years, in India the two-wheeler market has witnessed a marked shift towards motorcycles at the expense of scooters. In the urban areas, consumers have come to prefer sturdier bikes to show aggression, fearlessness and courage; a passion to live life on the edge, to stretch oneself and emerge a winner in any challenge one faces. In the process the share of motorcycle majority of Indians, especially the youngsters prefer motorbikes rather than cars. Capturing a large share in the two-wheeler industry, bikes and scooters cover a major segment. Bikes are considered to be the favorite among the youth generation, as they help in easy commutation. The Indian two-wheelers industry can be broadly classified into three major segments scooters, motorcycles and mopeds. But now a day, new culture of customized bikes is increasing gradually in urban area of India or in Hyderabad. Hyderabad is an organized market but it’s highly fragmented as far as the suppliers are concerned. Customized bike has been introduced to the market as a tool for passion in the convenient way. Customization of bike is considered as a good way to decorate and designed in a way to give alternative to super bikes Customized bikes designed to allow people to feel comfort while they drive on road. There are many types or way of customization now. However, improvements are made from time to time to fix the disadvantages of the previous design. The current trend in the Indian two wheeler segment is on an upward trend as shown by the figures given in the table below. The growth in the year 2011-12 compared to the previous financial year has been 17.5% in this segment.
1) Macro Environment Analysis
This business targets the youngster to middle aged people with high purchasing capacity and love for Choppers. India’s population is in the age group 15-59 which comprises of 60% of the total population according to the census.
Below 5 years
+ 60 years
Income level and consumption has increased significantly in India. The penetration of the Indian bike segment in the metros is 45% and in the rural segment it is 12%. The market for bike at 11 million in rural and 4.4 million in rural shows great untapped market where we find great opportunity in 1% of the premium customization bike segment that we intend to target. The financing/banking has also eased since last decade to aid the increase in purchasing capacity of people. The Bike industry in India is growing at CAGR OF 17.4%. The market forecast for 2015 in bike sales is $10 billion. Therefore with the growing awareness and income level people tend to buy goods to suit their preferences with an emphasis on personalized products and services.
Average purchaser of custom choppers is a married male or Bachelors. Average purchaser has household income of Rs.60000. Over one fourth of the sales of custom choppers are to buyers with at least one year of education beyond high school and half by office going. Confidence in economy is directly proportional to the purchasing of consumer items. Some legal problems like 60% tariff on import of parts and various other taxes will cause the price of the bike to double. Noise pollution and some emission standards might not be up to the level. Due to the entrance of global players(like Harley Davidson) in the Indian automobile sector, technological environment has changed rapidly in India both in terms of product design and information about the products to the consumers which directly affect the buying pattern of
the consumers. However every new technology replaces the old technology ,but also new technologies create new markets and opportunities. As a chopper bikes maker, challenges are not only technical but also commercial to make practical, affordable products. Geographic
2) Micro Environment Analysis Entry: It is easy to enter the market as there are no big players and the market for the product is unorganized where a huge opportunities lies. Competitors-. Thunder Hoc has three major competitors are Bufana Motors, Mild to Wild Customs and Ali Evolution Choppers who mainly focuses on the schools colleges and corporate houses. Ali Evolution Choppers is the only firm which targets everyone from modification to customization. Suppliers: - As mentioned in earlier reports the Thunder-Hoc mainly focuses on choppers, hence only acquire and use standard and certified motor parts for our customers. We would import machinery for body design from Thailand, Singapore and United States of America. Major engine suppliers are from Delhi and Chennai region and other bike parts are source from Punjab. Suppliers around the Hyderabad region are highly fragmented. Threat of substitutes: The product we are offering is new as we intend to not only customize bikes but also build it from scratch for the customers, however threat exist due to entry of players like Harley Davidson and SsangYong among other in the cruiser segment. But for the chopper lover the threat of substitute is not significant. Exit: The modification business is not capital extensive but customization is and therefore exit cost is huge comparatively in Chopper customization business.
1) Mild 2 Wild Customs Mild 2 Wild custom’s focus is all kind of customization. They built top end choppers. They also look at the performance upgrading of the bike. So apart from a chopper, they also works on enhancing and giving new look to the motorcycle. The workshop runs by the guy named Ayan, says “This is not one of those cheap customization shops, this is the real deal for the passionate youth”.
Products offered by them are as follows-: -Performance parts like Holley NOS, Vortech, Superchips, Hypertech, AFE. -Suspension like Dotesh, KYB, Belltech and BDS suspension. -Graphics like Sharpline, illusion graphics, speed stripes and Pro strips -Rims like Motegi, lexani, centre line and Giovanna -Tires like Brigstone, MRF, Fuzion tyres, Uniroyal, Falken tyres. -Light Kits
Target Market: Considering the product and targeting the niche segment, most of our customers would fall under the age group of 18-50 years. Considering a few other factors: 1. Awareness. 2. Spending Power. 3. Passion towards bike (specifically Choppers). Marketing Mix Strategies: It consists of 4Ps: Product, Price, Promotion and Place. It helps to produce the desired response in the target market. The following is there Strategy: Product offered by them is Customised Choppers. Price for Customisation ranges from Rs.25000-200000 Promotion is done by Social Media, Web Site, and Posters
2) Bufana Motorcycle Customs Bufana Motercycle Customs is an Hyderabad based custom choppers manufacturer company of Bufana Motercycle Customs Bikes and Bikes Parts. Bafana Motercycle Customs offers a wide range of customising services for the Enfield as well as making bolt on parts.They build Choppers from the ground up according to customer needs, so that one can paint, accessorise, modify as their wish.
Products offered by them are as follows-: -Performance parts like NX Nitrous, K&N, Holley NOS, Vortech, , Hypertech, -Suspension like Air Ride, Koni, Dotesh, Fabtech and BDS suspension. -Graphics like Sharpline, Illusion graphics, speed stripes and Pro strips -Light Kits
Target Market: Considering the product and targeting the niche segment, most of our customers would fall under the age group of 18-40 years. Considering a few other factors: 1. Awareness. 2. Spending Power.
Marketing Mix Strategies: It consists of 4Ps: Product, Price, Promotion and Place. It helps to produce the desired response in the target market. The following is there Strategy: Product offered by them is Customised Choppers Price for Customisation ranges from Rs.15000-150000 Promotion is done through Social Media, Web Site,, Bikers group.
3) Ali Evolution Choppers It focuses on different type of customisation. They build medium type choppers. Products offered by them are as follows-: -Performance parts like Holley NOS, Vortech, Hypertech
-Suspension like Belltech, Dotesh, KYB, and BDS suspension. -Graphics like Sharpline, illusion graphics, speed stripes -Rims like Budnik, Motegi, lexani, Foose
Target Market: Considering the product and targeting the niche segment, most of our customers would fall under the age group of 18-30 years. Considering a few other factors: 1. Awareness. 2. Spending Power. Marketing Mix Strategies: It consists of 4Ps: Product, Price, Promotion and Place. It helps to produce the desired response in the target market. The following is there Strategy: Product offered by them is Customised Choppers Price for Customisation ranges from Rs.10000-60000
4) DC Designs
Boutique car designer Dilip Chhabria, 54, says he has the world's best job because he is "able to dream with other people's money." His Mumbai-based firm, DC Design, has created luxury cars for the rich and famous worldwide. A graduate of the Art Center College of Design in Pasadena, Calif., he honed his skills at General Motors' Design Center in Detroit before setting out on his own. According to Chhabria, DC Design is the world's biggest independent car design firm by volume. The first DC showroom has already opened up in Hyderabad in Banjara Hills Road No 12. The company is known for its innovative designs the latest one being the gold platted and jewel studded TATA Nano which was unveiled at the Auto Expo in Delhi this year.
Target Market: The target market for the designers is the rich segment of the society with an average income of more than 30 lakhs per annum. This is because the cost of customization and modifying
the cars is very high and DC is known for its top notch quality. This is also confirmed in an interview of Mr.Chabaria where he said we design and build cars, vans, high-end buses. Our niche is really in providing a special application that mainstream manufacturers are not able to [provide] because they are volume driven. Our business is segregated across two markets. One is the business-to-business segment, where our revenue comes from OEM (original equipment manufacturer) work such as prototyping work or consultancy. We are doing this increasingly for car makers such as Renault, General Motors and Ford. The other part is a B2C (business-to-consumer) business where we execute special projects or make special vehicles like vans. These are not just for celebrities but also for those who need them for special purposes. CEOs use these for personal transportation, for traveling with senior executives from one plant to another; they want vehicles that are fully equipped, like Air Force One on wheels. We will grow in revenue largely in this segment. What we do is akin to the 1920s when customers bought the chassis and the engine from automobile manufacturers and went to coach builders to build their own vehicle bodies. Marketing Mix Strategies:
Product and Pricing-The Company is offering a few models in the current showroom in
the city like the DC Avanti which is a super car, which it intends to manufacture in limited editions for the general public. Along with that it is offering its specialized services in the area of car customization like the customization of both the interiors and the exteriors of the car. The price of the car depends on the kind of customization job that is required to be done on it. The price may range from somewhere Rs. 5 Lakhs to 75 Lakhs.
Promotion Channels: Auto shows, Blogs, Magazines and auto journals
The two wheeler segment is divided into basically three segments 100 – 150cc, 150 – 250cc and 250cc above. We intend to target above 250cc and therefore targeting a niche segment. We want to position ourselves in high performance and high quality providing good value proposition to our customers. Consumer needs and specification is taken as the input for development of this concept. The need was felt to provide a platform whereby bikers can customize and built their own choppers from scratch displaying independence and fulfilment of their desire to build and own. Observing the change in trend among our customers with growing demand for customization rather than choosing from a set of standard bikes. Reports in the Overdrive and Auto India suggest a growing interest among bike buyers to splurge in customizing their bikes. These trends have been seen especially in modification of Avenger, Enticer and Royal Enfield. Considering the product and targeting the niche segment, most of our customers would fall under the age group of 18-50 years. Considering a few other factors: • • • Awareness. Spending Power. Passion towards bike (specifically Choppers).
Although, we have Harley Davidson which deals in standardized models and quit a few players in customized bikes. We offering “Customized Chopper Bike” and being one of its kinds in the city. This would stand as a “competitive advantage” for the company. PROMOTION AND MEDIA: Customized Bikes market is majorly an unorganized market in India but it is known as blooming cluster, so they need to understand the market segment interested in customized bikes and target them through promotion and media. According to the study of market, the most passionate about customized bikes are the teenagers such as age group 18-22(mostly), group 22-40(rank 2), and college students are considered to be the main customers. As it is an unorganized sector companies do not spend much on promotion or media like their popularity is out due to word of mouth, satisfied customers directly advertise to their friends, modified bikes parked outside always attracts people. The companies with a brand name in customized bikes segment uses various promotional strategies such as social media (Facebook, Twitter, blogs etc.), print media, television, gaming console many other. They use these media techniques to establish their active fan base to target their audience. These companies keep a low budget for their promotion and media advertisement.
Details of Product Offering The following are the products being offered: Covers like Spider Black, Spade, Skull, Flame and Arrow Ahead Shift Linkage Rims: Web, Tritek, Total Chaos, Nasty, Nipple Biter, Kitten Catcher and Freaked Out Graphics and Custom Paint Exhaust, Fuel Pipe, Air Filter Suspensions like Belltech, Dotesh, KYB Chroming and Powder Marketing Mix Strategies: It consists of 4Ps: Product, Price, Promotion and Place. It helps to produce the desired response in the target market. The following is there Strategy: Product offered by them is Customised Choppers Price for Customisation ranges from Rs.25000-300000 Place/Location: We are setting up our first customized bike centre at Hyderabad, the city being the second among doing business by “Doing business 2009 report”, in population standing at the 6th position and with its IT sector touching peaks. The city is known as a Cyber City of India with more than 1300 reputed companies operating. We thus plan to launch our first Thunder-Hoc store in High-tech city.
Promotion will be done by advertising like Posters, Brochures and Booklets, Posters etc., Social Media, Web Site, Magazines like Overdrive, Business World etc., and Events.
Plan for Concept Testing
1. To study the Characteristics and features of Choppers. 2. To study this sector which is a powerful & growing sector?
OUR OBJECTIVE 1. How we got an idea about the choppers? 2. How does chopper bring value to an entrepreneur’s Business? 3. How does chopper benefit or add value to the customer?
4. What are the problems faced from government policies? 5. What is the demand of this segment?
6. What is the cash involved in each deal? How we got an idea about the choppers?
a. Just to do something different!
Creative ideas that would fetch results!
c. Buying branded choppers are expensive and people cannot afford it. d. By venturing into these kind of creative areas they would also earn profits e. We will be able to sell the imported spare parts.
How does chopper bring value to an entrepreneur’s Business?
a. The segment we are targeting is a to a very great extent unexplored hence we have a
advantage of first mover b. Interested customers are ready to pay the premium How does chopper benefit or add value to the customer? a. It’s a status symbol b. Feeling of freedom c. Dream coming true for many passionate people Buying branded choppers are expensive and people cannot afford it. The choppers from Harley Davidson and other foreign players are very expensive and thus there is a need to fill up the gap between the bikes and high priced choppers.
What are the problems faced from government policies?
a. Government has a number of rules on two wheelers b. Traffic policemen catches - Insurance, Registration Copy, and Pollution Check Chopper chances are considerably high. Noisy Silencers and the fancy looks attracts the Traffic policemen c. According to our survey 60% of the Entrepreneurs say that government policies have impact on their business.
d. Bike’s owner needs to go to RTO to get the bike endorsed from the Chief Inspector. They will check the bikes Chassis number and engine number for verification. The Endorsement charges is Rupees 1500 per bike. Fact None of the Police inspector accepts modified bike and choppers is safe to ride and often they reject them. No proper rules set by - government for modified bikes and choppers and so the owner of the bikes, ride the bikes without getting the endorsement.
What is the demand of this segment? a. According to our survey the demand of choppers is high but actual buyers or capability of people willing to buy it is comparatively less.
HOW WE TESTED IT PRIMARY DATA ANALYSIS:
Primary data are collected by the investigator conducting the research. The popular ways to collect primary data consist of surveys, interviews and focus groups, which shows that direct relationship between potential customers and the companies. An online survey was used to conduct the primary data analysis.
Questionnaire SECONDARY DATA ANALYSIS: Secondary data, is data collected by someone other than the user. Common sources of secondary data for social science include censuses, surveys, organizational records and data collected through qualitative methodologies or qualitative research. We target college going students and young professionals. As we think people belonging to this category might not be able to afford high end bikes, thus would go in for bikes ranging from 150-250 cc and hence would go in for customization. The city like Hyderabad has majority of the population falling in this category thereby showing a huge market. A detailed analysis of the target customer profile is as follows: As per the Secondary data available:
Income group we would like to target is above Rs 25000 per month, which is nearly 20% of the population. The population in the city includes 49% of the people having a family size of 3-4 members, and 15-16% having 2 members. Thus, we would expect a substantial proportion of population (appx 60%) to be our target market. 59.2% of the population falls between the age brackets of 19-35 years. People employed in the private and public sector are around 44%. Hyderabad being a corporate hub, attracts a lot of talent and has many well-to-do professionals working in various sectors. The unmarried males make up 32.9% of the population.
Niche Marketing is all about finding a smaller segment of a market and creating a product or a service for that market. In general a niche is a very targeted and focused market. Looking at the data, we can say that the market in Hyderabad is huge related to this segment as majority of the population falls in our targeted category i.e.college going students and young professionals. Even though it is a niche market, there is a lot of scope going by the income group and the number of present and potential professionals. POLICIES AND THEIR JUSTIFICATIONS TIME: We would ensure that the time lag in our services as compared to that of our competitors is much less making the entire system more efficient and responsive than theirs .In order to do this we could run surveys enquiring as to how long is the delivery period that others are offering. We could also keep a track as to how the competitors manage their procurement, assembling, delivery and more.
In a nutshell, this customized chopper fulfils the initial needs and specifications. It is tailored to enhance the desire and the passion of the user with and it provides variable exercise load by using magnetic resistance braking system technology. The frame design proved to be stable, strong and durable from the engineering analysis which has been discussed in the report. Materials have been chosen carefully to give the best characteristics and purposes of each component of the bicycle such as stainless steel for the main frame, aluminium alloy for flywheel and so on. Manufacturing processes including permanent mould casting, thermal plastic injection moulding and die casting are selected after considering several factors such as melting point of the material, dimension tolerance, complexity of shape etc. The magnetic resistance mechanism brings several advantages which add to the value of this exercise bicycle compared to ordinary belt/fan exercise bicycle. It solves the noise and mechanical wear problems, thus provides comfortable ride and longer life cycle time. Besides, the power generator eliminates the need of external power supply, which indirectly reduces carbon footprint. With India GDP growing at on an average of 7-8% the disposable income are bound to rise giving the much needed push for the demand of Customized Chopper.
1. http://www.facebook.com/pages/Custom-Bikes/189889237701639 2. http://www.choppercityusa.com/ContactInfo.htm 3. http://www.modbike.co.in/ 4. http://www.unescap.org/esid/psis/population/database/poplaws/law_india/indiaappen
d3.htm 5. Two Wheelers Industry: Growth Drivers Intact. ICRA report June 2011.
6. http://www.aponline.gov.in/Apportal/AP%20Govt%20Information/APES %20New/APSES.html 7. http://www.m2w.ca/ 8. http://www.fadaweb.com/two_wheeler_industry.htm
http://www.wikihow.com/Customize-a-Bike 10. http://morth.nic.in/index.asp
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