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Racing Past the Barriers
The Success of the Apache Motorcycle in India
Once upon a time there was a market…
Defined by the license raj
Demand outstripped supply – Consumers sometimes waited 24 months after full payment for delivery
Low product differentiation
Two-wheelers the main mode of transport for the middle class
Family transport
Italian design – but one that came in 4 decades ago
And then one day… the flood gates opened
New InvestmentNew Investment Capacity multipliedCapacity multiplied
Technological collaborationTechnological collaboration
Grew hundredfold in 4 decades
Grew hundredfold in 4 decades
LiberalizationLiberalization
New wave of consumerismNew wave of consumerism
TECHNOLOGY
FUEL EFFICIENCY
PRICING
India is now the largest and most demanding two-wheeler market in the world
Chapter I
Market leader. Enviable record of successful launches, sustained growth and profitability
Chapter I
Market leader. Enviable record of successful launches, sustained growth and profitability
Chapter II
Slipped to No. 3, lost competitiveness and new launches failed
Chapter II
Slipped to No. 3, lost competitiveness and new launches failed
Chapter III
Successful innovation and regained leadership by connecting with consumers
Chapter III
Successful innovation and regained leadership by connecting with consumers
Our Client’s Story
Chapter I – Leadership
The market leader… then
Proud of many FirstsFirst light motorbike that went on to revolutionize the marketFirst Japanese joint ventureFirst to bring in state of art technologyFirst mopedFirst to use celebrity endorsement
Strong R&D
Several models launched – new price tiers, increased fuel efficiency, comfort, lightness safety
A period of enviable growth and even more enviable profits
A good time for other competitors as well
But… things change… As they often do
Market moved from undersupply to overcapacity. Increased competition
More R&D, more claims about more fuel efficiency
Several lack luster launches. Shorter product lifecycles
TVS had no market success for five years. Products found superior in product clinics failed to perform in the market
Price points already crowded. Availability of finance reduced differentiating impact
Slipped from No. 1 to No. 3 position.
Time to rethink…
Innovation needed… but clearly functional performance no longer enough
Take a focused rather than a scatter gun approachUnderstand what the market neededDevelop the right proposition
Look at needs beyond the functional – explore possibility of building a deeper connection to cut through the functional clutter
Consumers Were Not Behaving Rationally
What else could explain the less than successful launch of several functionally superior models?
Decision to segment market on needs – emotive, social and functional
Use of NeedScopee
rtives
sA
nd
l ye i r
F
CONSUMER NEEDS
BRAND IMAGE
Feeling safe and in control
Feeling safe and in control
Asserting Individuality, Power
and Superiority
Asserting Individuality, Power
and Superiority
Feeling accepted, confident and comfortable
Feeling accepted, confident and comfortable
Breaking free, Pleasures and Thrills
Breaking free, Pleasures and Thrills
Taking the Emotional Leap forward
Needs uncovered at all layers
Market mainly operating at functional level
Only brand to have broken out of this was Pulsar from competition with enviable success
Pulsar promised Potency, a rugged machismo
Clearly the market ready for a dialogue and had moved ahead of the marketer
We started with qualitative research and found…
The Needs Landscape
… A motorbike was clearly more than just means of transport
Feeling safe and in control
Feeling safe and in control
Asserting Individuality, Power
and Superiority
Asserting Individuality, Power
and Superiority
Feeling accepted, confident and comfortable
Feeling accepted, confident and comfortable
Breaking free, Pleasures and
Thrills
Breaking free, Pleasures and
Thrills
Some key insights
Modernity at the heart of the category
The days of the family of five on a scooter with groceries were long gone
Stability, reliability, trust – TVS strengths were now taken for granted. Important, but no longer differentiating
New brand would therefore need to stand alone
To succeed, thinking and functioning of company stalwarts had tofind a new direction
focus & differentiating
Successful brand differentiation had to be at the emotive level
Potency – 28%A love of risk & adventureConquering, pushing limits
Exclusivity – 13%Feel better than others
Sophisticated, discerning
Efficiency – 13%Enable efficiency, success, with ease & convenience
Compensation – 13%Dreaming of a life that
can be
Belonging – 12%To fulfill role as providerTo belong to peer group
Liberation – 21%Fun times, First found freedom, Exploration.
Wonder Years
Six need states
Clear evidence of archetypes
And importantly, when segmented on emotion, functional direction emerged as well
siv
ityul
cxE
C
ng
i ng
o le
B
TVS portfolio missing the action
CD Dawn
Boss
Crux
Caliber 115
Wind
Splendor
PassionVelocity
Freedom
CentraVictor
Crux-R
LiberoPulsar
CBZ
Ambition
Karizma
GF 170
Fiero F2
Eliminator
Machismo
Bullet 350Bullet Electra
Enticer
TVS BrandsTVS Brands
49 % of the market.Growth segments indicated by the brands present in these
49 % of the market.Growth segments indicated by the brands present in these
Liberation chosen as the target to focus on
Potency, while larger and exciting had a formidable competitor in Pulsar. Risk of becoming a ‘me-too’
And while new brand aimed to stand alone, still needed the reassuring signature of the make company
Liberation a better fit with TVS’s affiliative imagery
Liberation had a younger skew. Offered potential to enlist an emerging buyer segment – the first time owner
With its expressive, fun imagery reflected the mood and optimism of young modern India
Liberation – Life, Here I come
The bike symbolizes a rite of passage – the boy becomes a man
And with it comes exploration, freedom, liberation
Physical sense - about mobility. Emotionally - about reaching places you’ve never been
Kick and excitement of youth
Discovery of adulthood
The Wonder years
Liberation – Life, Here I come
Definite younger skew, but extends to the Young at Heart
Youth –a symbol to flaunt adult status (girlfriend for fun, romance). Older men – flaunt evergreen youthfulness
Strong peer context. Affiliation, togetherness reflected in relationship (bike a buddy to share fun with)
Product promise – combination of speed, power, trendy looks
Advanced technology.
While all brands were boasting ‘international collaboration, deliberately kept ‘Indian’
The ResultLiving life in the MOMENT
A buzzing, happening youthBut ALSO touching that part of EVERY
MAN that brings back the Wonder Years –Freedom, of Irresponsibility, of LIVING
Aligning Channels and Promotion
Linking in the functional seamlessly
Perfect HarmonyA Brand Which Connects at All Levels
Product Features Stylish looks, really cool accessories, power and pick up, lightness to reflect the mood, easy maintenance
Social IdentityUnattached, young men, popular with girlsLots of friends doing things together
Symbolism – Living life in the momentIrreverence, trendy, but endearingly Indian, Enjoying the moment while it lastsWonder years – freedom, girls, exploration, friends, experience
Reason to BelieveDriven by people identified with, not celebritiesRage of the momentCo-sponsorship and partnership of events and promotions – on Channel V and MotoGP
AdvertisingTonality irreverent, but inoffensiveFun, easygoing, defying conventions and conservatism without becoming rebellious or edgy
The TVC
The Taste of Success
The Taste of Success
Living the Archetype!!
Breaking Brahmin, Engineering, rational mindset
Team fun on Friday afternoons observing young people at the pubsand cafes of Bangalore
Epilogue
With increased competition, dialogue with consumer grows in sophistication
Balance of power shifts. Marketing has to shift from push to pull.
From product focus to deeper connections with consumer emotion
In this market, Apache exemplified bold decision making Recognition of a new level of consumerizationMove away from the functional trap Alternative way of segmenting the market to identify opportunityCreating a brand that made a strong emotional connection
Create real differentiation for the brand
The successful concept was leveraged by execution, implementation and perfect tonality of all marketing contact
‘Notness’ used to avoid temptation – to stay safe or broaden the brand proposition to increase catchment