Project

Vespa

Rama Ravikanth V
IIM Raipur

Contents

Slide
Number

Description

3 to 6

Introduction to the current products

Comparison of Features across products

8,9,10

Comparison of Price

11

Available comparable model of different Make.

12

Competitors Considered

13

An overview of current offerings

14,15

Excerpts from secondary Reading (with links in notes section)

16,17

Excerpts from Primary data.

18 to 25

Analysis of Promotions from 2012 to 2014

26

Proposal

Variants Vespa LX (Entry

Level)

Vespa VX

Vespa
S

78,999

Vespa Elegante
Limited Edition
6

Common
Features

Engine
Transmissio
n
Body
Suspension
Electricals
Stability
Instrument
Cluster
Rear Saddle
Handle Bar

LX

VX

Chrome Elements (facial &

looks)
Colors (6) {Overlap(2) with

Wheels
Seats

Model S}

Black hexagon Silver Hexagon

Silver Dial
Black Dial

life by Vespa

Drum Brakes
Nylogrip Tires

Chrome

Chrome with
Hand grip

Colors (4)
Noticeably
different Chrome
elements
Different leather
pattern, singular
seat
Disc Brakes
Tubeless Tires

Black dials
Black base

Optional

Elegante

Unique
Colors (2)
Distinctive
Double
Seat

Silver dials
Black base
Chrome with
Hand Grip

Pricing Comparisons 1
Vespa LX
Priced 42.96% and 44.78% higher than the average
price and median price of scooters across all
segments (<100, 100, 110, 125 CC).
Priced 43.09% and 45.99% higher than the average
price and median price of scooters in the 125 CC
segment only.
Priced 6.39 % more than the next costliest 125 CC
Model (Activa 125 Deluxe).

urce: Primary Research and Company Websites

Pricing Comparisons - 2
Vespa VX
Priced 51.23% and 53.17% higher than the average
price and median price of scooters across all
segments (<100, 100, 110, 125 CC).
Priced 51.37% and 54.44% higher than the average
price and median price of scooters in the 125 CC
segment only.
Priced 12.55 % more than the next costliest 125 CC
Model (Activa 125 Deluxe).

urce: Primary Research and Company Websites

Pricing Comparisons - 3
Vespa S
Priced 59.83% and 61.87% higher than the average
price and median price of scooters across all
segments (<100, 100, 110, 125 CC).
Priced 59.98% and 63.22% higher than the average
price and median price of scooters in the 125 CC
segment only.
Priced 18.95 % more than the next costliest 125 CC
Model (Activa 125 Deluxe).

urce: Primary Research and Company Websites

10

Honda Activa 125 CC Deluxe

Price : INR 65934

Comparab
le Model

11

Competitors considered
Mahindra
Gusto
Rodeo
Duro

Suzuki
Access
Swish

TVS
Jupiter
Wego

Bajaj
Discover 125
Pulsar 135

Hero
Maestro

Honda
Activa 125
12

Scooter Market - Offerings

Number of Brands with Ambassadors: 5
Count of Variants by Engine Capacity

Celebrities
18
Anushka Sharma (2) : Scooty Zest
16
14
and Pep+
12
10
Parineeti Chopra : Suzuki Lets
10
8
Alia Bhatt : Hero Pleasure
6
Organization
3
4
2
2
Being Human : Suzuki Access
0
Special
<100CC
100CC
110 CC
125 CC
Expert (Racer)
Others offering similar to Vespa (1)
Shamim Khan : Mahindra Rodeo
Activa 125 Deluxe Except for the Steel body, Chrome work
Uzo125
and Italian Style, it is offering everything else that
Vespa VX and S offer.
17

There isnt any brand which talks about behavioral traits apart from Vespa. Heros Pleasure
and Maestro concentrate on Gender. Every other brand talks about mileage, features, bike,
Aesthetics, Style statements.

urce: Primary Research and Company Websites

13

Excerpts -1
Today, scooters contribute almost a quarter to
the entire two-wheeler industry. Over the next
couple of years, this number is likely to move
up to 30 per cent. Industry is moving in the
right direction because scooters are becoming
more stylish. They are offering better mileage
and they are very good for short-distance
commute in congested traffic conditions,
http://www.business-standard.com/article/companies/bike-major-hero-gears-up-for-bigger-scooter-play-114062300820_1.html

14

Excerpts -2
the iPhone of the scooter market
Our strategy was very clear. We wanted to create a
premium space in the scooter category, which till now did
not exist. The Vespa meets the needs of the youth who wish
to indulge in luxury but do not have a product to buy.
More than 62 per cent of the domestic scooter market is
dominated by the Japanese brands - Honda, Suzuki and
Yamaha.
Piaggios entry wont dent the market share of anybody
but will bring in additional volumes
http://

15

Primary Data - 1
An interview was conducted by visiting one of Vespas
showroom in Delhi.
The vehicles were classified by their price tags, not features.
High cost is seen as a differentiator and sets the brand a class
apart.
Newest models sell most (Currently S)
The Sales person claimed a 80% retention rate i.e. 80% who
own older versions of Vespa exchanged theirs for newer ones.
No data was disclosed and hence the figure mentioned may not be
considered in a literal sense.
16

Primary Data - 2
According to the Sales Person there are three types of customers
RESEARCHERS: They conduct all possible research about the vehicle and its
variants before entering a showroom, these will just ask about the accessories
and buy the vehicle. No pitching whatsoever is necessary. They buy Vespa for
the aura, status, style and also utility. Some have considered the Steel body
to be value for money.
BIG PURSERS: Spouses/Parents with large enough purse to accommodate a
Vespa as a gift to their better-half/children respectively. These will need to be
wooed in order for a purchase, they have little concern for the aura of a
Vespa. They buy Vespa for it being stylish, costly-enough-to-be-exclusive. To
them, its just a status symbol and at best a proof of how much I care for you.
REGULARS: Have limited knowledge and need to be pitched heavily, Price
must be backed by fully-loaded features. These are likely to go for lower
brands if they are not satisfied.
17

Promotion - 2012

18

Promotion - 2012

19

Promotion - 2012

Key Words
New Age Retro & Classic is forever
Utility and Specifications were briefly
touched upon along with a message
that Vespas fashion is eternal.
The appeal was to introduce the vehicle
20

Promotion 2013

21

Promotion 2013

Highlights Vespas Global Status,

conspicuous specifications and
invites consumers to be part
of that legacy.
Sets no point of differentiation

22

Promotion 2014

23

Promotion 2014

Click on the Links

below for Vespa
Commercials
How
art inspired

art
Vespa S
Vespa Vx
How art inspired art is a
miniature
documentary on how Vespa
Elegante has inspired painters
to do something creative the
documentary shows artists

Vespa Vx
The Commercial introduces Vespa to
the customer. It is shown to be an
informative one.
Vespa S
The commercial explores the various
yearnings of an ideal Vespa consumer.
Do you Walk your path?
Do you Make your mark?
Do you Follow your heart?
Do you Live in the moment?
By asking such questions, and by
suffixing such questions by Do you
Vespa?. The commercial induces a24

 From being just another Trendy bike

harping on the retro theme, Vespa moved to
associating a human element into the
commercials.
The latest commercials on the other-hand
attempt to infuse character into the brand.
This is a positive step, but there needs to be
more concentrated effort towards the same.
25

Proposal
Vespa wants to be known as a luxury brand in scooters, a segment which is,
until-now, largely untapped.
The latest commercials give the apt signals, however, there is no follow through.
It is my belief that the owner of such an exclusivist vehicle would like to part of
exclusive clubs which holds customized periodical events and activities for
them. (www.doyouvespa.com exists, but seems to be fairly inactive, their FB
page and app have little or no followers.) The Brand might want to create a
community and a story around it, this may help the brand image as an elitist one
yet bring in sales numbers.
Example1: Royal Enfield : Himalayan Odyssey & Continental GT documentary (Click Here)
Example2: Mahindras Great Escape

More promotions must be made which project a sense of bonding between the
owner and the vehicle.
26

Thank You
27