Market Research For Scooter Segment

Identifying the Communication Strategy for the Scooter Segment

Conclusion Qualitative Analysis Stochastic Share Analysis SWOT Analysis Jaccard Analysis Respondents preference for metal bodied scooter Respondents keen to try a new TVS product Medium of Communication Role of Influencer Association with Brand Ambassador Brand Personification Perception of TVS Brand Awareness Comparative Analysis – TVS v/s Scooter Segment Socio-Economic Classification of the Respondents Factor Analysis Sample Statistics Data Collection Key Information Areas and Variables Research Objectives Marketing Objective

C o n te n ts

Marketing Objective

Identifying the communication strategy that appeals to the consumers of the scooter segment for the brand TVS

Research Objectives Can TVS leverage its brand identity in the scooter market by extending the Scooty Brand/ product portfolio? Evaluate customer expectations from scooters/ Scooteretts on certain parameters. Evaluating the possibility of success of a new scooter from TVS in relation to the competition.

K e y In fo rm a tio n A re a s a n d V a ria b le s

Product Performance



– Mileage/efficiency, power , comfort and convenience

Brand Image



– Reliability, Style (high/low), TVS vis-àvis Honda, Hero Honda, Suzuki

Purchase Intention



– Frequency of use, purpose of use 

–

K e y In fo rm a tio n A re a s a n d V a ria b le s SEC



– Income, age, sex, education, profession

Awareness



– spontaneous/top of mind, share of mind/share of heart

Product specs



– luggage space, engine type, affordability, robustness

Role of influence



– Peer/family pressure and celebrity endorsements/ advertisements

D a ta C o lle ctio n Primary Research : via questionnaires from



§ Scooter/Scooterette owner § Individuals seeking to purchase a new scooter § Individuals who have driven scooters in last 1 year §

Secondary Research



• • • • 



Newspaper Articles Literature Review SIAM Business Standard

S a m p le S ta tistics • Sample of 102 respondents (out of which 7 were rejected) • Both in person and online • The Demographic details of the respondents

C la ssifica tio n o f th e R e sp o n d e n ts

All data in number

of respondents

Preference for Scooters : Factor Analysis

Factors

Usefulness Appeal

Reliability, ease of use, mileage, utility, comfort, affordability Masculinity, youthfulness, style

Dependability

Power, Safety

Preference for Scooterettes : Factor Analysis Factors Usefulness Efficiency

Reliability, ease of use, utility, youthfulness, comfort, Mileage, affordability, Style, Power safety

Macho Image

Masculinity

Preference for Bikes : Factor Analysis

Factors

Usefulness Appeal

Safety, ease of use, mileage, utility, comfort, affordability Power, youthfulness, style

Sturdiness

Reliability, masculinity

Purchase Decision of Scooters : Factor Analysis Factors Robustness Value for money

Power, Masculinity, Acceleration, Innovation, style, status symbol Maintenance cost, Working Life,, mileage,

affordability, lifesafety, comfort, ease Performance, working reliability, use After Sales service of Guarantee, spare parts availability, service network Features colors available, engine capacity, seating space, Trust worthiness

storage space

Brand TVS: Factor Analysis Factors Usefulness

Mileage, utility, comfort, style, reliability

Robustness

Power, Safety, Masculinity

Value for Money

Affordability, youthfulness

Simplicity

Ease of use

Comparative Analysis – TVS v/s Scooter Segment

Based on respondents’ perception of the Scooter segment vis-à-vis TVS on the given parameters. The data represents the mean score for scooter segment and TVS

Brand Awareness: Top of Mind (Overall)

All data in number

of respondents

rand Awareness: Top of Mind (Gender Classification)

All data in number

of respondents

Brand Awareness: Spontaneous (Overall)

All data in number

of respondents

rand Awareness: Spontaneous (Gender Classification)

All data in number

of respondents

Perception of TVS: Overall

1

1: Percentage of respondents associating a particular parameter +vely with TVS

Perception of TVS

1: Percentage of respondents associating a particular parameter +vely with TVS

Brand Personification

Brand Personification (Gender Classification)

Association with Brand Ambassador

The above graph is based on actual number of valid responses

Association with Brand Ambassador

Role of Influencer The influencing parameters considered in our survey were clubbed into two categories: family and friends

Medium of Communication The table below collates the data for the most reachable communication medium for respondents of different income groups

Income group <100000

Newspaper Interne TV / Radio Billboar Others t2 ds 3 7 0 1

100000-250000

3

5

17

0

0

250000-450000

1

12

10

0

0

>450000

6

14

12

1

0

TV/Radio is a preferred medium across income groups, Internet is preferred in Higher Income Group

Income Group: Annual Family Income, Based on number of valid responses (94 in this case)

Medium of Communication

Respondents keen to try a new TVS product

Respondents preference for Metal bodied scooters

Jaccard Analysis Parameters Performance

Value for money

Reliability

Working Life

Safety

Acceleration

Mileage

Masculinity

Power

Colors Available

Comfort

Engine Capacity

Style

Innovation

Maintenance Cost

Availability of Spare parts

Price

Service Network

Ease of Use

Status Symbol

Guarantee

Storage Space

Jaccard Analysis Category Drivers

Rank

Comfort

1

Value for Money

2

Ease of use

3

Brand Drivers (TVS) Value for Money Ease of Use Comfort

Category Driver, Jaccard Score >0.4

SWOT Analysis: TVS Strengths Performance Price Colors Available Availability of Spare Parts Service Network

Opportunities Ease of use Value for Safety money Mileage Maintenance Cost

Weaknesses Power Innovation Status Symbol

Threats Reliability Style Acceleration Masculinity Comfort

Engine Storage Space Capacity Working Life Guarantee

ale Used< -4= Weakness, -4 to 0 = Threat, 0 to 4 = Opportunity, >4 = Strength

Stochastic Share Analysis

Conclusions: LML’s stochastic share is surprising since it is a defunct company Bajaj as a brand is underperforming Honda as a brand has lower stochastic share although it is the market leader. TVS’s stochastic share and market share are quite similar but the company can leverage on its higher stochastic share as compared to its competitors.

Qualitative Analysis

Approach to Qualitative Research

D ivisio n o f Q u a lita tive A n a lysis

The research is divided into two parts:



– Focus Group Discussions q Objective: To how do they relate to the scooter segment and to analyze consumer preferences and tastes so as to formulate the communication strategy which is most appealing to them. q Sampling method: Nonprobabilistic sampling – Judgment sampling q Sample size: Focus groups of 8 members each q Respondent profile:Representation was from people of similar age group and educational qualification with

D ivisio n o f Q u a lita tive A n a lysis ( C o n td .) – In Depth personal interviews • Objective: To analyze consumer preferences and tastes so as to formulate the communication strategy which is most appealing to them.. • Sampling method: Non-probabilistic sampling – Judgment sampling • Sample size: Ten personal interviews • Respondent profile: Representation of various age-groups, income-groups, education-levelgroups. SEC A & SEC B will be accommodated. • Interviewer: Researcher

FG D Topic

2.5 lpa to 4.5 lpa

>4.5 lpa

Identifying with scooter segment

A scooter is an economic mode of transport which can be used by almost everyone in space the so Enough leg family the kids can also

A scooter is easy to drive and easily manoeuvrable

Advantages of scooter over bikes

Preferred communication channel

Easy to drive as there is no need to change travel along with gears. Can beat rush parents. Luggage hour traffic. Safety is carrying capacity so more for scooters. easy for and shopping Internet TV is TV is more equally accessible but accessible and hence an ad on TV has is the preferred more impact than one channel ahead of on the internet newspapers also

FG D Topic Initiator and Influencer

2.5 lpa to 4.5 lpa Largely a family decision based on utility

>4.5 lpa Largely a family decision but also influenced by promotional offers and free test drives Future of the scooter Ladies find scooters Not just ladies, segment convenient and people who are a bit affordable so they old or some one who should be the target has back pain find scooters more comfortable. Also age group 16-18 who can’t get a license.

FG D Topic Attributes Dilemmas Preferred Brand Ambassador

2.5 lpa to 4.5 lpa >4.5 lpa Safety, Affordability, Light weight, Service Centre, Maneuverability, Stability Looks, Service centers between Maintenance costs Choosing and low mileage. the brands and also Presence of Public choosing between a Transport scooter and like a bike. A person who stands A celebrity for stability and Sharukh Khan who consistency some one gave more glamour to like Rahul Dravid a scooter in Chak de India

w s – Im p o rta n t Fa cto rs Fo r S co o te r / Factor Comfort Reliability Performance Colors

Importance High High High Medium

Factor Style Masculinity

Importance Less Less

S co o te re t

Among both males and females – Important attribute associated with High among females, segment neutral to low among males

Among both males and females Among females, neutral among male respondents

In -d e p th In te rvie w s – B ra n d A w a re n e ss • Top Of Mind Recall – Bajaj enjoys the highest Top Of Mind Recall( 6 out of 10) – Second is TVS(2) – Agrees with the survey results found

• INTERESTING FACTS – 2 TVS users have BAJAJ occupying their top of mind share for the scooter / scooterette segment

• TVS has a high spontaneous brand recall. • People associate comfort level, ease of use and reliability with brand TVS. • High levels of brand loyalty were seen, sometimes causing a visible halo effect – One of the BAJAJ users rated BAJAJ high on each and every attribute and was not at all open to other brands```

In -d e p th In te rvie w s – C a te g o ry A w a re n e ss

• Females are generally not biased against 2 stroke scooters whereas males prefer 4 stroke • High power is in general preferred(8 on 10) 

In -d e p th In te rvie w s – T V S C o m m u n ica tio n S tra te g y

• Very little recall of recent TVS advertisements • Sportspersons are everyone’s preferred brand ambassadors because they associate youth and energetic look with Scooterette and sportspersons are able to carry that look very well but they themselves don’t associate with the brand ambassadors. • Celebrities are preferred as they

In -d e p th In te rvie w s – C o m m u n ica tio n S tra te g y

• Accessible Medium – TV / Radio - ease of access – Billboards • Sample Response: “If I am sitting in a bus at a red-light and I see a Scooterette advertisement on a billboard, I can imagine myself undergoing a transformation from being in the crowd to the independent Scooterette owner.”

C o n clu sio n s



The ideal communication strategy should focus on the following factors:



– Usefulness – Appeal – Efficiency

From the Purchase Decision POV:



– Robustness – Trustworthiness – Value for Money

TVS is already associated with



– Usefulness – Robustness – Value for Money 



So communication strategy should continue its focus on these attributes

C o n clu sio n s • General Perception of TVS on given parameters was better than that of scooters

• • Female TOMA slightly higher for TVS than male TOMA probably due to the Scooty effect

• • Male TOMA lower probably due to Bajaj Pulsar’s domination of the Bike segment

• • The communication strategy cannot be used to leverage TVS as a macho product and a power machine, since the perception of both parameters is both low but should focus on reliability, ease of use and comfort

C o n clu sio n s • Respondents prefer Sportspersons as Brand Ambassador, but it can be seen that they are neutral when asked if they relate to the same.

• • Interviews and FGD’s have shown that brand ambassadors can make the ad look good but have little else utility. Market Leader Honda does not use brand ambassadors. The communication strategy of TVS should be changed to one which focuses on the product rather than celebrity endorsements.

• • Family influence is seen to play a major role and inputs of FGD and interviews show that the scooter / scooterette can be positioned as a