Designing the India entry Strategy for an iconic motorcycle brand
About the Client
The American client is the most iconic and recognized motorcycle brand in the world with presence in North America, Europe, the Middle East, Africa, the Asia-Pacific and Latin America. Its revenues are in excess of USD 6 Billion.
The client was evaluating India as its next motorcycle destination and wanted to know about the market potential for its leisure bikes in India. Further, the client wanted to evaluate its India entry model –deciding between – Sales subsidiary/ Joint Venture/ Acquisition/ Import Distributor Model. It also wanted to sell its merchandise in the Indian market, in line with its global practices and was interested in knowing the right model for that – Dealers or Modern retail format.
TECNOVA’S APPROACH AND SOLUTION
Tecnova conducted an in depth study of the Indian motorcycle market which included competition analysis, Consumer analysis and market segmentation and prioritization. The study also captured issues like localization, customization on the basis of local requirements and preferences, features needed and degree of indigenization. The study also captured evolution of the segment, influence of the evolution on the addressable potential.
In order to get insights into customer preferences and needs, Tecnova conducted Focus Group Discussions with target segment to understand their expectations from the brand. Based on the study Tecnova formulated a workable business plan for the client.
- In 2010 the company started selling motorcycles in the Indian market. Based on the response achieved, the company established a subsidiary in North India in 2011, and created a dealer network. Today, the company has grown to a network of 12 dealers across the country, with plans of further expansion.
- Since its foray in the Indian market, the company has sold around 8000 units in the Indian market.