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