Indian Motorbike Market Segmentation

Description
The PPT explaining market segmentation of motorbikes in Indian market: Benefit segmentation, Product segmentation, Customer market segmentation, Product customer segmentation.

Indian Motorbike Market Segments

Overview: Indian Motorcycle Market
• 90% of the Market share held by top 3 motorcycle companies • Sales Volume of Indian Motorcycle market: 6.5 Mn • Two Wheeler market dominated by 100 cc segment which constitutes 60% of total volume • Market Leader: Hero Honda with 55.5% market share

Indian Motorbike Market Segments
Entry Level Executive Premium

>= 100 CC Upto Rs. 40,000 Price Conscious Customers Fuel Efficient Motorcycles

>= 125 CC Between Rs. 40,000 – 50,000 Fastest growing segment Price Premium though technologically similar to entry level segment

>= 150 CC Above Rs. 50,000 Powerful and Performance oriented bikes Style Conscious customers

Social Economic classification
Household Head/ ChiefSEC Wage Group Earner
SEC E SEC D
Unskilled Worker Primary Educated Skilled worker School Educated Skilled worker School Educated Business man Graduate/PG Skilled worker Graduate/PG Professional Graduate Executives/ M anagers Graduate/PG Businessman

Married Married with without Married Young child in without children Single with joint Single child in joint family family Alone Alone family
H1 G1 G2 G3

Married with Young children in nuclear family

Married with grown up children in joint/nucle ar family

Retired Married (singles/co with uples living married alone) child empty nest

G4

G5

F1

F2

F3

SEC C SEC B SEC B SEC A SEC A SEC A

E1 D1 C1 B1

E2

E3

E4

E5

E6 D2 E7

E8

C2

C3

C4 B2

C5

C6 B3

A1

A2

A3

A4

A5

Benefit Segmentation
Benefits/Segments
Fuel Efficiency Low Maintenance Cost Comfortable Ride Stylish Handling Sturdy Power (Pick Up & Top Speed) Smooth Engine Market Share High Resale Value Price Sensitive

Entry Level

Executive

Premium

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Product Segmentation
Product/Segments CD Dawn CBZ Extreme Splendor Plus Splendor NXG Super Splendor Glamour Achiever Passion Pro Passion Plus Ambition Hunk Karizma Entry Level Executive Premium

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Customer Market Segmentation
Benefits/SEC
Fuel Efficiency Low Maintenance Cost Comfortable Ride Stylish Handling Sturdy Power (Pick Up & Top Speed) Smooth Engine Executive Segment

A1

A2

B1

B2

C

D

E1

E2

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Market Share
Higher Resale Value Price Sensitive

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Product customer segmentation
Benefits/SEC A1 A2 B1 B2 C D E1 E2

CD Dawn
CBZ Extreme Splendor Plus Splendor NXG Super Splendor Glamour Achiever Passion Pro Passion Plus Ambition Karizma

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A1

A2
B2 B1 C

D

SEC attributes in India – 1/2
% of Indian households A1 A2 A3 A4 0.11 0.49 0.64 0.76 Annual Income (Rs. Thousands) 331 345 461 448 %

A5
B1 B2 B3 C1 C2 C3 C4 C5

0.97
0.16 0.41 0.73 0.12 0.73 0.70 1.10 3.25

239
601 666 441 248 137 124 192 167 SEC A 11.67%

C6

1.50

347

SEC attributes in India – 2/2
% of Indian households
D1 D2 E1 E2 0.43 4.21 0.06 0.10

Annual Income (Rs. Thousands)
127 176 218 455

%

E3
E4 E5 E6 E7 E8 F1 F2 F3 G1 G2 G3 G4 G5 H1

0.06
1.85 8.80 15.26 6.30 1.48 1.17 2.49 2.40 0.83 2.05 7.67 21.08 2.15 9.89

139
102 177 298 254 159 150 81 213 109 97 149 192 86 46

SEC B

38.55%

SEC C

6.06%

SEC D

33.78%

SEC E

9.89%

Customer Product profitability
Bikes 100 cc or less 125cc 150cc 180cc or above Bikes CD Dawn CBZ Extreme Splendor Plus Splendor NXG 30 65 40 45 % of families owning 48% 39% 11% 3% Price ‘000 Margins Volume Implications

Super Splendor
Glamour Achiever Passion Pro

45
45 50 45 Failed

Passion Plus
Ambition Karizma

40
50 90 Failed



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