HONDA CNG BIKES

TABLE OF CONTENTS

ABOUT CNG MARKET ANALYSIS MARKET SEGMENTATION TARGETING POSITIONING SWOT ANALYSIS MARKETING MIX MARKETING STRATEGY

ABOUT CNG most viable alternate fuel for automobile

companies in the near future Throughout the world there are 9.6 million

vehicles running on CNG CNG is environment friendly; economic,

availability is in abundance and high in calorific value

all public transports including buses and autos would be running on CNG.

Transports fitted with a CNG kit are already running in cities like New Delhi, Mumbai and Hyderabad

MARKET ANALYSIS Data collection through questionnaires

distributed in men’s compartment in local trains parking lots questionnaires distributed on BBM and

watsappWe found out the following results:

PEOPLE WHO OWN BIKE

59

41

yes no

EXPENDITURE ON PETROL PER MONTH

15

35

35

1.2

200-500500-800800-12001200 & above

WILLINGNESS TO BUY A BIKE

30

70

yesno

PREFERENCE FOR FUEL

55

35

3

Sales

cng &petrolpetrolcng

WILLINGNESS AND ABILITY TO BUY CNG FUELLED BIKE

70

25

5

60k-70k70k-80k80k-90k

HOW WILL A CNG BIKE PERCIVE

75

25

Sales

bad

good

excellent

OTHER IMPORTANT FINDINGS Another important finding was that

people between income groups of 1.25 to 5 lakhs were willing to buy a bike with a CNG and petrol variant. This gives us our segment as middle class and people with economical nature.

6. 55% out of the total people who were surveyed wanted cost saving bike. 25% people wanted style. 50% people looked for speed.

ECONOMIC ANALYSIS Cost benefit:

Environment friendly 100% income tax depreciation Flexibility and ease of use

TECHNICAL ANALYSIS

CNG makes the engine run quieter.

Environmentally Clean Advantage.

The Maintenance Advantage.

Intervals between tune-ups for natural

gas vehicles are extended 30,000 to

50,000 miles.

CONTD...

CNG tanks require storage space.

CNG Filling stations have limited

availability.

It produces 15% low power than that of

petrol

MARKET SEGMENTS Geographic: States like Maharashtra,

Delhi, Banglore, Gujarat as well as other rural areas.

Demographic: males between the age of 25 to 50 with an income of 300000 and above. Also people have travelling intensive jobs or occupation.

Psychographic: middle class Behavioural: People who are of

economical nature and have a good usage rate of bikes.

TARGET males in the age of 25 yrs to 50 yrs who

are people on the go, who have travel intensive jobs. We will also target restaurants who have delivery systems. Overall targeting middle class males who use bikes frequently for all their daily chores.

POSTIONING We have positioned our bikes as a cost

saving and eco friendly by giving cost benefits to our customers. This kind of positioning will influence people to buy this bike. As our target audience is middle class who have a economical mind.

SWOT ANALYSISSTRENGTHS: We have various products benefits like

cost saving, eco friendly, tax exemption which will attract a lot of customers.

Brand name Honda Strong distribution channel WE HAVE USED OUR STRENGTHS VERY

STRONGLY BY SELECTING A SEGMENT AND TARGETING OUR PRODUTS FOR THE PEOPLE WHO EXACTLY NEED IT.

WEAKNESS: 1. Technical constraints such as low pick up, product

design hampered by fitting a CNG tank, product weight increased.

2 .Fuel cost uncertainty 3. Increase in purchase cost 4. Limited availability of CNG in some areas. OVERCOMING THE TECHNICAL CONSTRAINTS WE

HAVE THE TANK FITTED UNDER THE SEAT SO THAT THE STORAGE SPACE AND LOOKS ARE NOT HAMPERED. ALSO WE HAVE MADE THE TANKS OF THE LOWEST POSSIBLE WEIGHT. WE HAVE MADE THE BIKE IN SUCH A WAY THAT IT STARTS ON PETROL BUT GETS CONVERTED TO CNG IN ORDER TO AVOID THE PICK-UP PROBLEM

OPPORTUNITIES: 1. Increase in gasoline price 2. Inflation 3. Increase in pollution due to the

gasoline emissions.GRABBING THE OPPRTUNITIES WE HAVE

COME UP WITH A PRODUCT THAT WILL MOTIVATE THE PEOPLE TP BUY OUR PRODUCT

THREATS: 1. CNG price uncertainty in future. 2. Competitors 3. Introduction of new technology such

as bikes using water as fuel. BEING AWARE OF OUR THREATS WE

HAVE PLANNED TO WORK FOR PRODUCING A BIKE THAT RUNS ON WATER. ALSO PRODUCT DIFFERENTIATION HAS GIVEN US A BENEFIT OVER OUR COMPETITORS

Marketing mix

PRODUCT Name: eco bikes Product name: HONDA ECO BIKE Product variants: cng model, petrol and

cng model

PRODUCT SPECIFICATIONEngine Type 4 Stroke,SingleCylinder,Air cooled

Max Speed 85km/h

Max Power 7.4kw at 8500r/min

Max Torque 8.76N.m at 7500r/min

Displacement 124ML

Ignition CDI

Brakes/Front Disk

Brakes/Rear Drum

Start System Electric / Kick

Tire Size/Front 2.75-18

Tire Size/Rear 3.00-18

Wheel Material Aluminium

Length*Width*Height 1950*720*1165

Wheelbase 1280mm

Dry Weight 110kg

Max Loading Weight 150kg

Fuel Capacity 13.0L

Color Black,blue,red,grey

Product benefits The driving experience: Cost

Air quality: Reducing reliance on foreign oil:  Tax and other incentives

Product compromises

Purchase cost Range anxiety Availability Gassing up with CNG

PRICE Price for CNG model: 65000 Price for CNG and petrol model: 75000 Marketing strategy -market penetration

strategy

Costing: Manufacturing Cost:

1.25crores (25k/ bike with CNG) Total Advertising Exp:

4Crores Total Distribution Expense: 30

lakhs Miscellaneous Exp: 10

lakhs Additional Promotions and discounts- 20

lakhs Fixed cost

3.5 crores

PLACE Using own channels

SBI has 13000 outlets and PNB has 6429 outlets across India

1577 touch points all over India. It has an army of 452 dealers where urban rural break-up is 254 and 198 respectively

PROMOTION Hoarding and poster all over country: - 3

crores Social media promotions: - 60000 for 3

months TV ads: - 4 crores Magazine :- 1 crores. Sunday news paper ads: - 30 lakhs Eco –rally go green: 100000

Thank you