Tns Apache Motorcycle

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 Investment Investment New

Capacity multiplied multiplied Capacity

TECHNOLOGY FUEL EFFICIENCY

Liberalization Liberalization

PRICING

New wave wave of of New consumerism consumerism

Technological Technological collaboration collaboration

Grew hundredfold hundredfold in in Grew decades 44 decades

India is now the largest and most demanding two-wheeler market in the world

Our Client’s Story

Chapter II Chapter

Chapter IIII Chapter

Chapter III III Chapter

Market leader. leader. Market Enviable record record of of Enviable successful launches, launches, successful sustained growth growth sustained and profitability profitability and

Slipped to to No. No. 3, 3, lost lost Slipped competitiveness and and competitiveness new launches launches failed failed new

Successful Successful innovation and and innovation regained leadership leadership regained by connecting connecting with with by consumers consumers

Chapter I – Leadership The market leader… then Proud of many Firsts First light motorbike that went on to revolutionize the market First Japanese joint venture First to bring in state of art technology First moped First 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 approach Understand what the market needed Develop 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 NeedScope

CONSUMER NEEDS

Feeling Feelingaccepted, accepted, confident confidentand and comfortable comfortable

Asserting Asserting Individuality, Individuality,Power Power and andSuperiority Superiority

Feeling Feelingsafe safeand andinin control control

BRAND IMAGE

A ss ertive

F r iend l y

Breaking Breakingfree, free, Pleasures Pleasuresand andThrills Thrills

Taking the Emotional Leap forward

Needs uncovered at all layers Market mainly operating at functional level

The Needs Landscape

Only brand to have broken out of this was Pulsar from competition with enviable success

Breaking Breaking free, free, Pleasures Pleasures and and Thrills Thrills

Feeling Feeling accepted, accepted, confident confident and and comfortable comfortable

Pulsar promised Potency, a rugged machismo Asserting Asserting Individuality, Individuality, Power Power and and Superiority Superiority

Feeling Feeling safe safe and and in in control control

Clearly the market ready for a dialogue and had moved ahead of the marketer We started with qualitative research and found… … A motorbike was

clearly more than just means of transport

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 to find a new direction

Æ

focus & differentiating

Successful brand differentiation had to be at the emotive level

Six need states Clear evidence of archetypes

Liberation – 21% Fun times, First found freedom, Exploration. Wonder Years Belonging – 12% To fulfill role as provider To belong to peer group

Compensation – 13% Dreaming of a life that can be

Potency – 28% A love of risk & adventure Conquering, pushing limits Exclusivity – 13% Feel better than others Sophisticated, discerning Efficiency – 13% Enable efficiency, success, with ease & convenience

And importantly, when segmented on emotion, functional direction emerged as well

TVS portfolio missing the action 49 49 % % of of the the market. market. Growth Growth segments segments indicated indicated by by the the brands brands present present in in these these

Libero

Belo

Pulsar Eliminator

Crux Wind Crux-R Freedo m Caliber 115 Bullet Electra VictorBoss Bullet 350 Splendor CentraCBZ Passion Fiero F2 Velocity CD Dawn GF 170 C

Ambition Machismo

lusivity

TVS TVS Brands Brands

Karizma

Exc

nging

Enticer

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 Result Living life in the MOMENT A buzzing, happening youth But 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 Harmony A 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 Identity Unattached, young men, popular with girls Lots of friends doing things together Symbolism – Living life in the moment Irreverence, trendy, but endearingly Indian, Enjoying the moment while it lasts Wonder years – freedom, girls, exploration, friends, experience Reason to Believe Driven by people identified with, not celebrities Rage of the moment Co-sponsorship and partnership of events and promotions – on Channel V and MotoGP Advertising Tonality irreverent, but inoffensive Fun, 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 pubs and 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 consumerization Move away from the functional trap Alternative way of segmenting the market to identify opportunity Creating a brand that made a strong emotional connection Æ 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