Two Wheeler Industry in India and Integrated Marketing Communication

Presented By: Group 2

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INTEGRATED MARKETING COMMUNICATION

The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent and compelling message about the organization and its products.

History
In 1955, the Indian government needed sturdy and reliable motorcycles for its Army and police to patrol the rugged border highways. The first batch of 350cc Bullet from the Royal Enfield Company of UK were received and assembled at Chennai.

Overview
India, is the second largest producer of two-wheelers in the world. In the last few years, the Indian two-wheeler industry has seen spectacular growth. The country stands next to China and Japan in terms of production and sales respectively. 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.
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AUTOMOBILE

2 WHEELER

3 WHEELER

PASSENGER VEHICLE

COMMERCIAL VEHICLE

I.C.V.

M.C.V.

H.C.V.

MOTORCYCLE

SCOOTERS

SCOOTERETTES

MOPEDS
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Market Size
The two-wheeler market in India is the biggest contributor to the automobile industry with a size of Rs.100,000 million. The two-wheeler market in India comprises of 3 types of vehicles, namely motorcycles, scooters, and mopeds. In the two-wheeler segment, according to the report, the motorcycles would clock 11.5 per cent rise during 2004-2007 over its siblings-scooters and mopeds. Scooters sales would decelerate and mopeds would also see the same. Overseas market would present huge opportunities for the two-wheeler makers. The motorcycle market share is about 81.5% of the total two wheeler market in India. Three-fourths of the total exports in the two wheeler automobile industry are made in the motorcycle segment. Exports are made mainly to South East 7 Asian and SAARC nations.

Fleet composition of all vehicles

Two Wheelers 71% (42 million) Three Wheelers 4% (2.37 million) Cars, Jeeps and Taxies 13% (7.69 million) Buses 1% (0.59 million)

Two wheelers Cars,Jeeps & Taxies Goods Vehicles Three wheelers Buses Others (Tractors, Trailors & miscellaneous)

Goods Vehicles 5% (2.96 million) Others (Tractors, Trailors and miscellaneous) 6% (3.55 million)

Number of players
Bajaj Auto Hero Honda TVS Motors Yamaha Motors Suzuki Motors Honda Motors Royal Enfield Kinetic LML India Mahindra Two Wheelers
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Indian 2-Wheeler Market

HONDA

Motorcycle

50% -

30% 15% -

13% 28% 82%

4% -

1% 2% -

2% 46% -

<1 %

<1% -

9% <1% 8% 10%

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Market Share - Motorcycle

Others, 5.8% Yamaha, 3.8% TVS Motors, 17.7% Hero Honda, 39.8% Bajaj Auto, 24.4% Honda Motors, 8.5%

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Top Three Players

HERO HONDA

BAJAJ AUTO

TVS MOTORS

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Hero Honda Motors Ltd is one of the leading companies in the two-wheeler industry. At present, it is the market leader in the motorcycle segment with around 40% of the market share. The company has emerged as one of the most successful players, much ahead of its competitors an account of its superior and reliable product quality complemented with excellent marketing techniques. The company has been consistently addressing the growing demand for motorcycles and has a cumulative customer base of over 5 million customers, which is expected to reach 6mn mark with the rural and semi-urban segment being the new class of consumers.
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Company Profile
"Hero", the brand name symbolizing the steely ambition of the Munjal brothers, came into being in the year 1956. From a modest manufacturer of bicycle components in the early 1940's to the world's largest bicycle manufacturer today. Joint Venture between Hero Group and the Honda Motor Company of Japan, has today become the World's single largest two wheeler Company. Started with the initial investment of Rs.55 crores, Hero Honda Motors Limited came into existence on January 19, 1984.
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Hero Honda offers the following products

CD 100 CD 100 SS Splendor Passion CBZ CD Dawn Karizma Ambition Ambition 135 Splendor + Passion Plus CBZ Star

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Advertising Strategy
HHML is an organization, which is known for its innovative & Aggressive Marketing. The advertising budjet is of Rs.120 crores. All the mediums are used extensively, be it print or mass media like T.V & hoardings.

HHML also promotes sports in the country. It is also the sponsor of the ICC world Cup 2003 and half of the Indian team represents Hero Honda.
Also, advertising is done at a local level by dealers, in which HHML also contributes to help dealer promote the dealership in the local area.
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Some of the Events Sponsored During the Years

1993 Hero Cup Five Nation Cricket Tournament. 1999 Masters Golf Championship. 7th Cricket World Cup in England. 2000 NKP Salve Challenger Trophy. Stardust Hero Honda Millennium Honors Award. Masters Golf Championship. 20th Cinema Express Award. 2002 India-England Women's Cricket Series. Masters Golf Championship. Second Indian Television Academy Award. 21st Cinema Express Award. India-England Test Series. First Indian Television Academy Award. 2003 th Cricket World Cup in South Africa. 8 2004 ICC Champions Trophy in England.
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Brand Ambassadors
Indian Cricket team Players: Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh, Zaheer Khan and Sourav Ganguly. Superstar Hrithik Roshan is also a Brand Ambassador who helps to promote companys "We Care" campaign comprising safety riding, environment and friendliness
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Some of the famous ads

Fill it - Shut it - Forget it (Splendor). We Care campaign. Hero Honda Dhak Dhak Go (Music Video) Jet Set Go (Karizma)
A fighter plane is on a regular sortie when the pilot notices a moving object. Zooming his camera, he captures a bike cruising at high speed. Informing the control tower, the pilot dives in for a closer look. The bike gathers speed and enters a tunnel to beat the fighter aircraft. Reaching the air-base, the rider meshes with the staff as they examine the images... ... of the motorcycle, unaware that its owner is amidst them.
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Established in 1945, it was incorporated as a trading company. From 1948 till 1959, it imported scooters and three wheelers from Italy and sold them in India. It then obtained a production license in 1959 and struck a technical collaboration with Piaggio of Italy in 1960 and continued with the same for the next two decades. Its collaboration with Piaggio expired in 1971 and since then the Company's scooters and three wheelers are sold under the "Bajaj" brand name. And then entered in Motorcycle market.

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Bajaj Auto offers the following products

CT 100
Platina Caliber 115 Wind 125 Pulsar 150 KS
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Avenger
Discover Eliminator Kawasaki Ninja

Advertising Strategy
Bajaj Auto is an aggressive advertiser. The advertising Budget of Bajaj Auto is more than Rs.100 Crore. Bajaj has a distinct style of promoting its products, for every product launched theres a new and fresh advertising strategy, developing the firm-positioning platform. Brand Ambassador : Cine Star of Asia, Jackie Chan.
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Some of the famous ads

The very first TV Commercial of the Bajaj Discover DTSi (125 cc at that time) in 2004 featured the Cine Star of Asia, Jackie Chan..!! New Bajaj Pulsar DTS-Fi 220, the sountrack in the video plays Hamara Bajaj in its latest avatar..!! Pulsar mania bike stunts of different range. The Fastest Indian New Pulsar 135 Robber robs the bank and disappear within few minutes on bike before cops arrives.

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Some of the famous ads contd

Chatting merrily, three girls

One's dupatta skims over the bikes and then gets stuck...

walk by a line of motorbikes.

...making her turn in consternation. She pulls it away slowly to reveal...

... The logo, "Pulsar.

Definitely Male
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 TVS Motor Company Limited, part of the TVS Group, is one of India's leading two-wheeler manufacturers. With a turnover of over Rs.2800 crores, the Company manufactures a wide range of motorcycles, scooters, mopeds and scooterettes. Little wonder, it boasts of more than 9.5 million happy customers. The year was 1980, was a year to remember for the Indian twowheeler industry. For it was this year that saw India's first twoseater moped, TVS 50, rolling out on the Indian roads. For some it was freedom to move. With the joint venture with Suzuki Motor Corporation in 1983, TVS-Suzuki became the first Indian company to introduce 100 cc Indo-Japanese motorcycles in September 1984. Through an amicable agreement the two companies parted ways in September 25 2001.

TVS Motors offers the following products

Star City Star Sport Victor GLX Fiero F2/FX

Jive
Centra Victor GL

Apache
Flame

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Advertising Strategy
The aggressive marketing strategy along with the changed approach to advertisement campaign boosted the demand for the TVS models.

Agency created the campaign designs which included print ads, banners, handbills, road show kits, truck floats etc.
Musical Nite for those who booked / purchased bikes during the period was organized by the agency.

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Advertising Strategy contd

Meet Sachin Tendulkar Campaign: Lucky draw winners were invited to meet Sachin. Bikes autographed by Sachin were handed over to the winners and they got a chance to interact with the winners.

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Brand Ambassadors
Sachin Tendulkar MS Dhoni

Recent Ads
Racing Bar unleashed (TVS Apache RTR)

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Future of Two Wheeler Industry Opportunity, Challenges and Plan

Opportunities Rising rural demand. Market penetration of only 37 percent. Collaboration with global firm. Investment in R&D by government. Excise duty cut.
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Challenges
Sustaining the growth rate. Need for innovation low cost/ hybrid vehicles. Upgrading Indian two-wheeler products. Taking the products to the global market. Capturing Indian as well as global market.

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Plans
Encourage exports. Provide various two-wheeler financing schemes among manufacturers. Open R&D centers. Pressurize government to reduce taxes and duties. Collaborate with global players.
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Thank you

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