Knight Riders

7/27/2019 Knight Riders

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MARKETING ASSIGNMENT

ON

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY, NOIDA (U.P.)

SUBMITTED TO:

PROF. MAMTA MOHAN

SUBMITTED BY:

TAMRRIKA TYAGI D22

CH. SAI PRAVEEN-D23

RAGHAV KABRAD24

ABHINAV BHATNAGAR -D25

MITANSHU BANSAL

D26SUMIT NANDALD27

RANGARAJ BORAHD28

PIYUSH AGHI- D29


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1. Current Marketing SituationThe concept of bike customization in India is relatively new though car customization dates

back to the era of Maharajas who used to collect vintage cars and buy cars customized from

the stables of Rolls Royce, Buggati and the like. But lately, the field of bike modification has

seen a tremendous change in demand given the improved standard of living of the people and

the reasonably good GDP per capita of the Indian consumer.

Taking into consideration, that though Noida is an organised market but its highly

fragmented as far as the suppliers are concerned. This would put us in a better position as far

as negotiation power is concerned. At the same time would make the company susceptible to

issues arising from poor quality.

2. Opportunity and issue analysisMacroenvironment Analysis: For the purpose of macroenvironment analysis, PESTELtechnique has been employed.

Economy: Indian Credit Rating Agency (better known ICRA) expects the 2wheelerindustry to report a volume CAGR of 10-12% over the next five years to reach a size

of ~21-23 million units by 2015-16. Also the sports bike segment is showing rapid

growth. From 9% market share in 2005-06, it has risen to 17% in 2009-10. The per

capita income during 2011-12 is estimated to be Rs. 60,972 according to an article

published by Central Statistical Office. This reflects towards the growing disposable

income in the Indian pockets.

Social: The moderate 2 wheeler penetration levels, favorable demographic profile,under developed public transport system and utility quotient of a 2wheeler, due to

increasing traffic, bike preferred for ease of maneuvering, have all favoured the rise of

sales of 2 wheeler. With the entry of sports bike vendors in India like Suzuki, Yamaha

people have started to associate sporty looking bikes with social status. This has led to

creation of a market for bike modification and customization in India.

Technological: The automobile industry in India started with the support of foreignplayers due to lack of technology. The Hero group tied up with Honda Company of

Japan to develop bikes to cater to Indian consumers. The Indian companies have come

a long way now as they have developed indigenous technologies and in some casesmastered technology better than their foreign peers. Bajaj Pulsar from the Bajaj

Motors is a classic example.

Microenvironment Analysis of Noida

Geography: Taking into consideration, that though Noida is an organised market butits highly fragmented as far as the suppliers are concerned. This would put us in a

better position as far as negotiation power is concerned. At the same time would make

the company susceptible to issues arising from poor quality.


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Customer: We target college going students and young professionals. As we thinkpeople belonging to this category might not be able to afford high end bikes, thus

would go in for bikes ranging from 150-250 cc and hence would go in for

customisation. The city like Noida has majority of the population falling in this

category thereby showing a huge market. we can say that even though it is a nichemarket, there is a lot of scope going by the income group and the number of present

and potential professionals

3. Marketing ResearchWe are defining the activity of modifying a bike in the dynamic environment of Noida, Uttar

Pradesh. We have also conducted the survey and we got the following data.

Methods of Data collection:

Basically there are two methods of data collection:

1) Primary Data

2) Secondary Data

Primary Data Collection:

Primary Data is that data which is collected precisely for the project at hand. The primary

data for our report resulted from the questionnaires filled by young people of age group 18-26

and some interviews were conducted.

The results have shown that people who are more enthusiastic and daring prefer to make their

bikes customized.

Purpose of buying a bike


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24%

12%

28%

36%Thrill

impression

comfort

bored of old look

Reason for customisation

39%

32%

18%

11% Quality of service

cost involved to modify

after sale service

all of the above

first thing people look in for customization


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Secondary Data Collection:

Secondary Data is that data, which has already been collected for some other purpose but can

be used as reference material.

The secondary data for our report came from the internet, and magazines.

4. Competitor AnalysisThere are many competitors in this field and accessorizing is done at branded bike

showrooms, but they consist of very standardized items. There is also a huge unorganized

market in the form of by bike repair shops which do some customization. For full fledged

customization the consumers order them from firms like Vardenchi (Mumbai), Trogen Horse

(Mumbai), Dream Riders (Delhi) but they involve high end customization and price starting

at Rs. 1.5 lacs. These firms are also into only chopper bike design and not street bike

customization. Few international firms like Orange County Choppers, have opened afranchise in Delhi. The popular customization firms in India are entrepreneurial startups like

Vardenchi (Mumbai), Vegachoppers (Mangalore), Trogen Horse (Mumbai), etc. (Source:

www.350cc.com). The firms in this business are based on store model given the huge land

and capital requirements in franchisee model of international firms.

Competition in Noida:

The major competition in Noida is from the unorganised bike repair shops spread over the

entire city. Few major firms were interviewed to gain clarity over the forms of business

models prevalent in Noida in the area of bike modification. The firms mentioned below arelocated in Noida sector 7 and Bhangel.

1) Jamshed Welding Works in Noida: Upon interview of Mr. Jamshed Ali, the owner,following facts were revealed regarding below mentioned aspects:

Market Segmentation: The clientele includes people in the age range of 16-45 years.

People in the age range of 18-35 come for bike modification. Engineering students

form their major customers of bike modification compared to other undergraduate

streams students. The owner also comments that the young professionals are a little

averse to small modifications as they feel it to be kiddish. They usually opt for high

value modification such as Headlight dome change, performance enhancers, fibreplatings on the sides, etc. People who come for bike repair in this range also get their

bikes modified to some extent due to their sales persons influence.

Products Offered: The major services the firm offers is in bike repair while

modification is seen as a secondary income source. The major modifications usually

involve the beautification of the bike like stickering, dual silencer, dome change etc.

They also stock performance enhancer items like 250-350cc engines though hardly 2-

3 customers opt for it. They stock very few accessories like helmet and gloves. Bajaj

Pulsar was the major bike that came for modification.
http://www.350cc.com/http://www.350cc.com/


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2) Noida Engineering Works: This was the most clean and well-maintained shop in allthe shops we visited.

Market Segmentation: The clientele included students, professionals and bike repair

mechanics.

Products Offered: Their business spanned from bike servicing to stocking all kindsof bike accessories. Bike servicing and accessory sale formed their major revenue

source. Quality products at cheaper price were their strategy to maintain good

customer relations.

The interviews revealed that no firm was solely into the business of bike customization as

there were very few customers though it is a high margin business if high levelk of

customization is involved. The firms also did not stock accessories like jackets, glove as

people perceived that it was not a proper place to buy such things and a branded apparel

showroom is a better place. The promotion by these firms was also limited to bike service

and repair than bike customization.

Unmet demands:

The concept of bike repair mixed with bike modification creates various perceptionsabout the nature of activity as bike repair than a bike personalization activity.

The firms were not a one-stop shop for all customization needs as they did not stockbranded accessories, which indeed is a huge market.

The level of modification done is also very low and the maximum budget is usuallyRs. 5000/-. The lack of awareness and exposure to big brands in this space like

Vardenchi, etc. is also the reason for limited demand.

5. Concept Development Name: The KnightRiders

The name symbolizes aggression, fearlessness and courage; a passion to live life on the edge,

to stretch oneself and emerge a winner in any challenge one faces

Justification:The term knight refers to a warrior, which in turn reflects a sense of heroism

and courage. We have used this term as a part of our brand name as our target customers arepeople who have an adventurous streak and are willing to take on any challenge headlong.

This name should appeal to their sense of daring and risk-taking characteristics . However

tough the terrain, our services will help you across the way.

Logo: Skull with WingsThe logo shows a skull in red colour,

Justification: The skull as well as the colour red depicts PASSION- passion for drive,

passion for adventure, passion for life without any fear.. The wings represent Freedom to


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choose the way the customers want their bike to be and our ability to provide them this

flexibility.

Tagline: You Give us Skeleton, We Give You MusclesWe customize bikes, thereby providing value to a customers standard bike.

Justification: Through our services, we add a new dimension to the otherwise dull bikes

which every other person owns, thereby making the customer stand out of the crowd. We

appreciate the fact that every individual is different and would prefer riding a bike which

brings out his own personality.

Mission: To Customize the bikes and to do it with style and a smile. Vision: To offer our customers the highest quality products along with exemplary

service.

6. Marketing Mix:It consists of 7Ps: Product, Price, Promotion, place, process, people and physical evidence.

Product:

The service offered by The KnightRiders is customisation of bikes which is unique and

would cater the unmet demands of unavailability of the service and expertise in this segment

especially in Noida.

We are importing performance parts from Holley, NOS, Vortech, Hypertech, AFE.etc

Suspensions from KYB, Dotesh, Belltech and BDSsuspension.

Graphics from Sharpline, illusion graphics, speed stripes and Prostrips

Rims from Motegi, centreline, lexani and Giovanna

Tires like Bridgestone, MRF, Fuzion tyres, Uniroyal, Falkentyres etc.

We would ensure that the time lag in our services as compared to that of our competitors is

much less making the entire system more efficient and responsive than theirs .In order to dothis we could run surveys enquiring as to how long is the delivery period that others are

offering. We could also keep a track as to how the competitors manage their procurement,

assembling, delivery and more.

Price:

The Price for Customization will range from Rs.15000-600000. The price has been kept in

mind the niche segment of young customers.

Our price is variable depends upon the product specification. We will provide wide range of

varieties ranging from low price to high price.


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Promotion:

Customized Bikes market is majorly an unorganized market in India but it is known as

blooming cluster, so they need to understand the market segment interested in customized

bikes and target them through promotion and media. According to the study of market, the

most passionate about customized bikes are the teenagers such as age group 18-22(mostly),

group 22-40(rank 2), and college students are considered to be the main customers. As it is an

unorganized sector companies do not spend much on promotion or media like their popularity

is out due to word of mouth, satisfied customers directly advertise to their friends, modified

bikes parked outside always attracts people. We are using various promotional strategies such

as social media (Facebook, Twitter, blogs etc.), bikers group and sponsorship through bike

rally events held in the city.

We created a Facebook page for promotion

http://www.facebook.com/TheKnightRidersIndia

Place:

We are setting up our first customized bike centre in Noida as it is emerging as IT hub and

educational hub. As people require more number of personal vehicles due to high intensity of

students in Noida, they prefer to buy and customize their bikes as per their aspirations. We

are targeting the students in Noida.
http://www.facebook.com/TheKnightRidersIndiahttp://www.facebook.com/TheKnightRidersIndiahttp://www.facebook.com/TheKnightRidersIndia


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People:

We have carefully recruited the staff with approx. experience of 3 years of customizing the

bikes.

Process: we have the best parts available in the market which we are importing from the best

retailers in the world.

Physical Evidence: Since services are intangible most of service providers strive to

incorporate certain tangible elements into their offering to enhance customer experience. Our

service is to provide the customers with the best in class equipments for the bikes so as to get

the customer satisfied and maintain the customer relationships for longer time.

7. BCG Matrix:

As we are starting up our business, we are in question mark stage of BCG matrix. As we are

trying to sell our modified products to the target market of Noida where the market is having

high growth rate, we can enter into stars stage if we can increase the market share of our

company. In the question mark stage we have low cash generation and high potential for

market growth.

After catering to the needs of the market, The KnightRiders will have potential to change into

Stars having high cash generation and high market growth.


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As we are in Question mark stage, we have to follow the Build strategy to increase our

market share.

8. Segmentation, Targeting and PositioningSegmentation:

Segmentation is a process of dividing a total market into market groups consisting of people

who have relatively similar product needs. Segmentation of market for Knightriders

motorcycle modification can be divided under four categories:-

Demographic: Under demographic segmentation, the total market can be segmented on the

basis of age, income, & social class.

1) Age: The service of Knightriders caters to the needs of man in general, who arebasically in the age range of 18 years to 35 years.

2) Income: The service of Knightriders caters to two types of people in general. First arepeople with low income, who cannot afford fancy bikes and want to modify their

bikes according to the fancy ones they see in the market. Second are people who

wants to be unique in the society, they want a bike that no one else has in the society.

3) Social Class: Sometimes people buy bikes in order to increase their social class and sothat people notice them in the society.

Psychographic: Under psychographic segmentation, the total market can be divided on the

basis of lifestyle and personality.

1) Lifestyle: Customized bikes often describe the lifestyle of people. It depends on whattype of bike a person prefers, whether he prefers a cruiser or a sports bike.

2) Personality: The personality of a person can often be perceived from the type of bikea person rides. The customized bikes gives people a unique personality depending on

his choice of bike.

Geographic: The geographic segmentation of Knightriders bike modifiers is in and around

NOIDA.

Targeting:

Targeting is a strategy to choose one or more segments to serve. Factors to be considered

before choosing a segment are size, growth, profitability and economies of scale.

The Knightriders bike modifiers are a set-up which is basically targeting the youngand middle class group of man.

The Knightriders bike modifiers targets people who are newly employed and arecollege going.

The Knightriders bike modifiers targets people who belong to both urban and ruralsectors.


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Positioning:

Positioning refers to placing a brand in that part of the market where it will have a favorable

reception compared to competing brands.

The Knightriders bike modifiers customize the bike in a way that looks good and thatleaves an impression.

The Knightriders bike modifiers give your bike a masculine, macho and aggressivelook.

9. SWOT Analysis:Strengths:

Well experienced employees. Less Competition in the market. Differentiation. After Sales service.

Weakness:

Lack of visibility in the market due to the newness of customized bike segment inNoida.

High salary paid to the experienced employees. Preference to fuel efficient bikes due to rise in fuel prices.

Opportunities:

Growing market. Large percentage of Target customers. Launch of sporty and street bikes.

Threats:

Legal liability issues. Competition from new entrants. The analytical buyer.


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10.Ansoff Grid:

It is a market development grid as we are entering into the market of Noida in which

the service is not provided by anyone .one of our threat is that the market of Delhi region

which is very close by but that is compensated as we dont have any market in Noida region

and we can be the first mover in the market. The products are already in the market we are

providing the Noida region consumer the accessibility to these services.

11.Conclusion:The KnightRidres, the bike customization service fulfils the initial needs and specifications. It

enhances the desire and passion of the customer. Modification can be done both to the engine

as well as to the body of the bike. While engine modification can increase the performance

and efficiency of the bike, cosmetic changes seek to lend a snazzier look to the bikes. The

KnightRiders provide both the modifications. The field of bike modification has seen a

tremendous change in demand given the improved standard of living of the people and the

reasonably good GDP per capita of the Indian consumer. The service offered by The

KnightRiders is customisation of bikes which is unique and would cater the unmet demands

of unavailability of the service and expertise in this segment especially in Noida.


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12.References: http://www.dreamriders.co.in/who_we_are.php accessed on 21 October, 2012 Macrothink Institute, Journal of Management Research, ISSN 1941-899X, 2011. Vol.

3, No. 2: E13 http://www.thehindubusinessline.com/industry-

andeconomy/economy/article2868677. ecee
http://www.dreamriders.co.in/who_we_are.phphttp://www.thehindubusinessline.com/industry-andeconomy/economy/article2868677.%20ecehttp://www.thehindubusinessline.com/industry-andeconomy/economy/article2868677.%20ecehttp://www.thehindubusinessline.com/industry-andeconomy/economy/article2868677.%20ecehttp://www.thehindubusinessline.com/industry-andeconomy/economy/article2868677.%20ecehttp://www.thehindubusinessline.com/industry-andeconomy/economy/article2868677.%20ecehttp://www.thehindubusinessline.com/industry-andeconomy/economy/article2868677.%20ecehttp://www.thehindubusinessline.com/industry-andeconomy/economy/article2868677.%20ecehttp://www.dreamriders.co.in/who_we_are.php

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