racing past the barriers
TRANSCRIPT
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Submitted to: Mr. Ahsan Durrani
Submitted By: Badar Salam Kayani - 1848Jibran Ali -
31 st March 2013
Racing past the BarriersThe Success of the Apache Motorcycle in India
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1. What were the former characteristics of the market in India?
Former Characteristics of Indian Market:
Size: Two-wheelers have been the main means of transport in India accounting for
over 70% of the vehicle population.
Growth Rate: Modest 0.1million vehicles in early 1970s.
Supplier to the Industry (Their relative power): local producers successfully
lobbied with the government to maintain the status quo. It was marketing heaven for the existing producers.
Competitive substitute products ( their relative power): In the early 1990s,
Bajaj, the leading two-wheeler company had a waiting list that was 26 times the
companys annual output.
Manufacturing and distribution: Production capacities were limited, a market
where licenses were controlled and were few and far between,
Social and economic conditions affecting the industry: Customers waited
uncomplainingly for long periods (extending to a year and beyond) after full
payment to collect their set of wheels. It wasnt uncommon to see an entire family of four (or even five) carrying several
bags making their way around the busy roads on the two wheels Foreign exchange deficit,
Barriers to entry: Imports were restricted, foreign investment was not allowed.
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2. How was the market changing? Indian government opened up the market in the early 1990s, It was the opening up of floodgates, leading to a boom in foreign investment,
technical collaborations, and new media, all of these factors paving the wayfor a new era of consumerism.
The most tangible, visible and much needed change took place in the Auto
sector, with new investment and increased capacity kick starting the growth. Greater choice, customization for different road conditions, better
distribution, and price tiers to suit a range of budgets, All contributed to
unimaginable growth rates.
With increasing competition, the balance of power shifts to the consumer. Marketing then has to shift from push to pull. From selling and product focused marketing, the market moves to a need for
brands that connect with consumer emotion. The Indian market jumpstarted from a world of controlled undersupply and in
no time the consumer quickly evolved, perhaps even ahead of the Indian
marketer. The Indian 2 wheeler market was waiting for brands like Apache that
understood this and met more than just the need for great mileage and
reliability.
3. What roles did qualitative research and quantitative researchfulfill?
Qualitative: Qualitative research has uncover/explore the need structure of the market.
Quantitative: Quantitative research identified the need based segmentation to validate the needstructure and measure the sizes of the need segments.
Roles of Qualitative & Quantitative Mapping and measuring of existing brands on the needs landscape helped to
identify where the opportunity lie.
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Concepts were developed and tested and THEN finally the technical design team
given the direction to develop/ identify a suitable product that expressed the
desired brand positioning. This represented a complete paradigm shift in the method of client working and
thinking, where most of the earlier launches (the successful ones as well as not so
successful) had emerged from the engineering and draftsman drawing boards.
4. What insights are drawn from existing theory?
Modernity is at the heart of the category. The market had moved away from the family orientation scooter days. Consumers were looking for contemporary expression in keeping with the optimism
and hope of the new generation. This had to be reflected in both the design and
the emotive proposition. Stability, reliability and trust, which were critical strengths of the TVS corporate
brand were now taken for granted, important to have, but no longer enough to
which to build a differentiated proposition. The new brand would therefore have to stand alone; in fact perhaps lead the shift
of TVS image towards modernity. And to succeed in this direction, there was a need to alter the thinking and
functioning of existing stalwarts within the company, with their strong technical
orientation.
5. Explain the concept of The NeedScope System. What does themarketing model and archetypal framework.
Two concepts form the theoretical basis of NeedScope A Marketing Model Archetypal framework
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Marketing Model:
The Marketing Model describes how brands and needs are two sides of an
equation and should fit together.
Needs are DE-layered into three levels. consumers have needs at all levels
Functional Needs (Rational Layer):
It is the outer and most easily accessiblelayer of consumer needs and it is satisfiedby the functional benefits that the productdelivers.
It serves as a screener, the first stop, whichif not satisfied, will keep the brand out ofthe consumers consideration set.
Identity Needs (Sociology):
The need to identify with particular groupsin society.
These needs are met by the social values orcharacter of the brand a brand for young
people, for women, upscale, etc.Emotive Needs (Relationship):
These are the core drivers of brand choice, the engine that powers the consumersrelationship with the brand.
Symbology, Social Values, Product Features:
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Archetypal Framework:
Two axes are the fundamental anchors of this framework. Horizontal Vertical
Horizontal : The horizontal is the I vs. We axis. The right side represents the drive for
individualism and self assertion. This is the need to stand out, to feel
superior, to be admired and to stay
ahead of others.
The left is about the fundamental senseof belonging the need for acceptance,
togetherness, friendship and warmth
Vertical: The vertical dimension divides the model into the extroverted and introverted
poles. The top is about energy directed outwards release, stimulation, freedom. The
bottom is about energy that is inwards more contained and controlled and
therefore less visible. While these are polar opposites, there are no hierarchies or negatives. The space represents alternative strategies that consumers use to resolve their
needs. It must also be pointed out that this is a needs rather than a consumer framework. Consumers are multi-faceted and have multiple needs, depending on the context
of the category and occasion Powerful brands are archetypal in nature. This is what enables them to connect at the deepest level, inspiring consumers to
behave often irrationally. They, build lasting commitments and relationships.
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They speak a symbolic language that is not made of words and therefore crosses
barriers of language, religion and politics - a language that unites, that taps into
universally shared hopes, dreams and needs. That is what makes them the global icons they are!
6. What problems was TVS company facing in marketing its twowheelers? What made them change their thinking?
Problems:
Increasing competition, the balance of power was shifting to the consumer. Marketing then has been shifting from push to pull. From selling and product focused marketing, the market moves to a need for
brands that connect with consumer emotion. Brand that understands the needs Product Customization/Consumerization Alternative way of segmenting the market. Motorcycles until the mid-1990s never really had a strong volume base. Heavy and difficult to manage, High Fuel consumption / Fuel inefficiency, Quite
unsuitable except for the very niche law enforcement and the macho exceptions that opted for a motorbike over the
practical scooter. Segmentation of the market was primarily on price tiers. Branding was limited only to the corporate values of the company, All communication emphasized functional performance. There was very rare use of celebrity endorsements to add humanity and appeal to
factual advertising.
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Changing Effects: Increased number of choices, several models at all price tiers and the absence of
any runaway new successes in five years led to an erosion of the TVS leadership
position. From being the market leader, TVS slipped to the number three position. There was a clear and immediate need to rejuvenate and to explore new
opportunities. TVS did what all auto marketers do best turn to the engineering and design team
for a solution. Several new products were designed and tested, some were even found superior in
product clinics and launched, but the market response was lack luster at best. With no opportunity to create a new price point and functional performance not
breaking any new boundaries, the time had come to turn in another direction.
7. What were the six needs that were identified throughquantitative research. What were the characteristics of each?What segment was selected by TVS and why?
Identification of Six Needs:
There were six need states identified and each need state was detailed on all layersof needs as well as other demographic and behavioral parameters to enable targeting.
Liberation 21%
Potency 28%
Belonging 12%
Exclusivity 13%
Compensation 13%
Efficiency 13%
CharacteristicsOf Each Need:
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Segment selected by TVS and Why:
The size of the need statesindicates the dynamic shiftof the market towards more
modernity and individualism.62% of the market isweighted towards selfexpression and status needs.
The TVS brands were allclustered in the lower partof the affiliative section ofthe map.
Clearly, all of them weredrawing imagery andsymbology from the
affiliative, reliable image ofthe corporate brand. The position of the TVS
brands indicated sub-optimalutilization of the portfolio and the absence from the more dynamic and growingpart of the market was a cause of concern.
TVS clearly had to get back into the action
Potency & Liberation:
Being large and growing were identified as the opportunity. An in-depth need state- brand fit analysis showed that Liberation was more
optimal target market rather than Potency for several reasons. Potency, while larger and exciting, already had a formidable competitor in Pulsar. The Potency need state with its macho, rugged individualism was just too distant
to be targeted credibly with TVSs affiliative imagery. Liberation had a younger skew, which opened up the opportunity to target a new
social group the first time bike buyer. With the market size growing, the profile of the buyer was getting younger and
this segment was expected to grow even further as the shift of the older middle
class consumers towards four-wheelers had begun.
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Is cool a relevant concept for this product?
Positive; because Apache is targeted
towards young adolescence and they have
a Cool Attitude, Unique behavior, Excitedby Nature, Winners Feeling and
Attributes, WOW kind of feel. Also the Liberation segment selected by
TVS for Apache had a younger skew,
which opened up the opportunity to
target a new social group the first time bike buyer. Liberation evokes the heady kick and excitement of youth, the exciting discovery
of adulthood and the bike is integral as a source of pleasure. Liberation need also extended to the Young at Heart rather younger skew. For the young man, the motorbike is a symbol to flaunt his adult status
(personified as a girlfriend for fun, romance). With older men it is about recapturing moments gone by, the wish for evergreen
enduring youthfulness. The social values of the Liberation need state are therefore younger men in the
golden period between boys and adult men. The need has a strong peer context, typical to that life stage. The need for
affiliation, togetherness is also reflected in the relationship with the bike - a
buddy to share the fun with.
8. Does Apache have the ingredients to be cool and is theconcept of consumer Tribe relevant?
Ingredients to be Cool:
Symbolism Living life in the moment. Targeting that part of every man that brings
back the wonder years of Freedom, of Irresponsibility, of living a sense of release,
exploration and the anticipation that the world is waiting for you! For the newly
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initiated, the promise of discovering a new world, for the young at heart, the
recapturing of a time gone by, a retreat to Ladland!! About living life to the fullest
and making most of the moment.
Social values Unattached, young, popular men with lots of friends and popular
among girls Functional promise stylish looks, really cool accessories, power and pick
up, lightness to reflect the mood, easy maintenance.
Reason to believe Driven by those who young people identify with and look like (not
celebrities). The brand had to be the rage of the moment; something that everyone is
talking about.
Advertising The tonality is irreverent, but inoffensively so. Fun,
easygoing, defying conventions and conservatism without
becoming rebellious or edgy. The television commercial is set to a rap tune, but the words are in an Indian
language in tune with the current youths desire for a blend of the international
with the Indian a distinct flavor of modern India.
The strongly evocative emotional proposition was also translated into trendy style
and irresistible features.
Concepts of Consumer Tribe
Tribe: A group of people with deep interpersonal connections built through shared
experience, rituals, and traditions. Consumer Tribe: Group of people emotionally connected by similar consumption
values and usage, who use the social linking value of product an d services to
create a community and express identity.
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Concepts of Consumer Tribe Relevancy : With increasing competition, the balance of power was shifted towards the
consumer and Marketing then has to shift from push to pull. From selling and product focused marketing, the market moves to a need for
brands that connect with
consumer emotion. The Indian 2 wheeler market
was waiting for brands like
Apache that understood this
well and met more than just
the need for great mileage
and reliability. Apache exemplifies bold
decision making and a
willingness to break away from the conventional way of doing things. TVS recognized that the market had moved to a new level of consumerization that
demanded brand connections to be built at a deeper level.
It was not just about bold decision making and creating the right concept. Theexecution and implementation remained true to the archetypal positioning and
delivered the perfect tonality.