Pleasure Scooter Case

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Launch of the Pleasure Scooter
It was the first week of March 2006, and a new brand of scooters was on the brink of
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being launched in the Indian market—a gearless scooter with the brand name Pleasure
whose primary target market was expected to be women.
Mr. Pawan Munjal, Managing Director and CEO, of Hero Honda charged Mr. Anil Dua,
vice president of marketing with the task of developing the overall marketing strategy for
Pleasure, the product idea having been conceived earlier under Anil’s predecessor. When
the company first contemplated introducing a product in the scooter segment, they only
manufactured motorcycles. Foremost in Anil’s mind was the growing segment of Indian
Personal author copy for Atanu Adhikari. Downloaded on 17-Jun-2021.

women who were looking for independence and would require a vehicle to commute. He
recognized that many women in India compromised on several aspects of their daily lives
when their mobility was dependent on male family members—a brother, father or
husband.
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Anil had to finalize the marketing strategies and specifically the positioning and
communication for Pleasure. The Indian market already had well established competitors
that manufactured scooters which were being used by women. The company was already
a late entrant in the category. Its challenges were further intensified given that there were
limited possibilities for product differentiation. Anil contemplated several approaches as
he called a Saturday morning meeting to finalize these issues. The account manager with
FCB–Ulka Advertising, the communication and creative agency engaged by the Pleasure
brand for this product, attended the meeting with his creative team. Selected company
dealers from northern and western India were also invited to take part in the discussion.
Company Background
In 1984, the Hero Group entered into a joint venture with Honda Motor Company of
Japan. The result was Hero Honda Motor Limited, wherein Hero Group and Honda
Motors each had a 26% stake, with the remaining 48% held by the public.
Since the joint venture’s inception, Hero Honda (HH) had emphasized the manufacture
of low- pollution, high mileage, new generation motorcycles. In 1985, it launched its 100
cc motorcycle, which promised a fuel efficiency of 80 kilometers per liter (190 miles per
gallon). HH launched the product with an advertising campaign that invited consumers to
“fill it, shut it and forget it.” HH produced 43,000 units of 100 cc motorcycles in 1985-
86. The venture grew at a meteoric pace—it ranked 87th among Indian companies in
This case has been developed by Professor S.P. Raj of Syracuse University and Dr. Atanu Adhikari
of Indian Institute of Management, Kozhikode. The contents are meant only for class discussion
and are not intended to express opinion about an organization’s decisions and processes. The
numbers provided in the case are a reflection of the situation but are not to be considered to be
the actual values. © 2014 Indian Institute of Management Kozhikode. All rights reserved.

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1991 and within a decade ranked 4th. It became the world’s largest motorcycle
manufacturer in 2001, producing 1.3 million units. The company redesigned the product
continuously and launched several brands of 100 cc four-stroke motorcycles including
Splendor, Passion, Karizma, CBZ, etc., with a number of models in each brand.
The sales figures for Hero crossed 2.5 million units in the financial year 2004-05, a 27%
rise over the sales figures for financial year 2003-04, increasing its market share from
48% to 50.9%. The other players were Bajaj Auto (29.6%) and TVS Motors (12.4%).
Refer Exhibit 1 for the previous two years’ market share of three leading motorcycle
manufacturers. Exhibit 2 summarizes financial data for HH for five consecutive years.
The increase in sales was primarily attributed to the increase in sales of two brands of
motorcycles, namely Splendor Plus and Passion Plus; sales of these two models
increased by almost 70%.
During the 2004 the company announced a decision to launch scooters with technology
from Honda, while Honda's wholly-owned subsidiary, Honda Motorcycle and Scooter
India, would roll out 150 cc motorcycles by the end of 2004. The two companies would
produce 100-150cc motorcycles, but these would be complementary instead of

cannibalizing each other.
HH has a vast sales and service network which the company calls “touch points.” It has
3000 such touch points which include dealers, authorized representatives of dealers,
service and spare selling points, and spare part stock-lists.

HH had offered promotional schemes on many models, including Splendor Plus and
Passion Plus mentioned above. A discount of Rs. 1000 was offered in the second half of
the year, while mobile handsets were given away as part of the celebrations during
India’s extended festive season. The company supports its customer relationship
management (CRM) activities with a program called the HH Passport Program, which
had approximately 3 million customers enrolled in 2001.
The two-wheeler industry in India
Two-wheeler manufacturers in India sell vehicles through company-exclusive dealers in

towns and cities across the nation. Dealer showrooms display different brands and
models in the various colors available. Sales personnel are largely young males. The
typical margin for a dealer is 3-4% on sales.
Over the last 60 years, India’s two-wheeler industry has undergone several changes,
primarily due to shifts in government policies. Until the early 1980s, almost all critical
activities linked to the production of two-wheelers in India were controlled by the
government: firm entry, expansion, technology upgrades and implementation, even
product mix and manufacturing decisions. State involvement in key aspects of the firms’
operations resulted in companies operating below their average scale of production,
utilizing less capacity, and making-do with outdated technology. In 1991, major
economic reforms happened in India and foreign companies were allowed in two wheeler
industry.
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Three types of motorized two-wheelers were on Indian roads since 1980: Motorcycles,
geared and gearless scooters, and mopeds (Exhibit 3). Until the mid 1980s, there were
only three motorcycle manufacturers in the country: Rajdoot, Escort, and Enfield.
Scooters held the largest share of the two-wheeler market. Demand for scooters far
exceeded the supply and the average waiting period for delivery was two to three years
after a vehicle had been booked. A scooter was the only viable personal transportation
option for the average male in India, and was used both for commuting and transporting
family members.
In the mid-1980’s, Kinetic, in collaboration with Honda, launched Kinetic-Honda moped.
This vehicle became very popular—especially with teenagers and adult women.
In 1984 when HH was formed, it began producing more economically viable 100 cc
motorcycles offering a fresh look and a fuel efficiency double that of a scooter. Since
motorcycles were less priced than scooters and promised better mileage and stylish
looks, they became a must-have for the common man. Scooters were soon considered old
fashioned, and with their relatively low mileage and the outdated technology they relied
on, became less popular.1

Analysts estimated that in 2005 – 06, approximately 70% of the Indian population who
used private transport used a two-wheeler, while 30% relied on other automobiles.
In the early 1990s, just after the economic reforms started in India, scooters accounted
for about 50% of the total two-wheeler demand in the country; motorcycles and mopeds
shared the rest of the demand almost equally. However, the demand for motorcycles
increased rapidly and by 2003-04, the demand for motorcycles was 78%, leaving
scooters and mopeds far behind at 16% and 6% respectively. Total sales and market
share from 1993-94 to 2003-04 for different types of two-wheelers are shown in Exhibit
4.
It’s interesting to note, however, that 20 to 25% of scooter drivers are women. It is also
observed that the percentage of households who own more than one two-wheeler has
increased significantly. In 2001, that market segment was 9%, which increased to 15% in
2004. In this segment, approximately 46% households owned both a motorcycle and a
scooter.2
At the start of the new millennium, industry trends started shifting again. Many players
launched stylish scooters, both gearless and geared (Exhibit 5). Modern technology was
used to offer improved fuel efficiency. The weight of the vehicle was reduced, yet the
scooters were tough enough to sustain the shocks of the Indian roads. The gearless and
lightweight scooters were preferred by women, who might otherwise depend on male
family members to be dropped off and picked up.

1
Indian two wheeler industry: A perspective by Dripto Mukhopadhyay, Federation of
Automobile Dealers Association report
2
Indian passenger car and two-wheeler industry, ICRA Sectoral analysis – September
2005.
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As the company prepared to launch the Pleasure scooter, the two-wheeler market was
strong in India. In the financial year 2005-06, approximately 7.60 million units were
sold. This made India the second-largest producer of two-wheelers, right behind China.
Motorcycles accounted for 84% of the market, followed by 11% for scooters and 5% for
mopeds. The two-wheeler industry registered growth of approximately 12%, which was
expected to increase by a couple of percentage points per year in the near-term.
Exhibits 5 and 6 show the market scenario for two-wheelers, summarizing differences in
ownership and expected ownership across India’s major geographic regions and between
urban and rural areas.
Market research
Anil Dua asked his team to conduct market research to understand prospective
consumers’ backgrounds, their behavior, and how they made purchase decisions.
Meanwhile, he started going through some of the latest research available from
secondary sources. A study of Indian consumers conducted by the National Council for

Applied Economic Research (NCAER) revealed that the middle-class tier of the pyramid
was growing apace, and that the overall Indian economy and the tastes and preferences of
consumers were changing rapidly. NCAER estimated that approximately 115 million
households had incomes above Rs. 200,0003 in 2001. However, Anil noted that, despite
rising incomes, “The psychology of the average Indian consumer is to seek value for his
or her money.” Exhibit 7 describes recent changes in the incomes of Indian consumers.
The rising middle class has opened opportunities for companies engaged in the
production of consumer goods and automobiles. The increased income of the Indian
middle and upper-middle classes has influenced their consumption patterns, with up to
60% of their available income spent on discretionary purchases like consumer goods,
health, and entertainment.
About 35% of households which earn more than Rs. 200,000 annually live in rural areas
and another 17% in small towns, while the remaining 49% live in large towns and cities.
20% of the consumers whose household income is more than Rs. 2,000,000, live in
villages. This also includes 15% of households with annual earnings of more than Rs.
10,000,000.
India is a mix of many subcultures with an underlying ethic that both inspires the
subcultures and encourages assimilation over time. Geographic regions offer some
distinct subcultures. NCAER’s 2003-04 study of Indian consumers reveals that a new
brand of vehicle would sell more easily in Delhi, Punjab, Haryana (north India) and
Mumbai, Pune and Ahmedabad (western India), where the percentage of affluent people
is more than in the eastern and southern regions of the country. At the same time,
increased exposure to Western culture through television and the Internet has

3
Considering purchasing power parity (PPP) with USD at 1:10, the amount is equivalent
to $20,000 per year.

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significantly changed the overall lifestyle across India, including interest in shopping,
mobility, and meeting up with friends and relatives.
Anil knew that advertising and promotion would play an important role in enhancing the
visibility of the category, creating a need in the consumer and increasing consumer
demand for two-wheelers. Two-wheeler consumers look for rational benefits like
mileage and engine capacity as well as intangible emotional benefits tied to the product’s
overall look and appeals portrayed in advertisements.
Several reports of the Federation of Automobile Dealers Association (FADA) noted that
for women consumers in India, recommendations from friends and relatives, word of
mouth, and television advertisements are the primary sources for information when
deciding on a vehicle brand to buy. Consumers do seek information from dealers about
price and financing information. Research indicated that 82% of the buyers collected
information about the mileage, 44% about the look, 31% about the price, 16% about the
company, and 15% about the model before they go to a dealer showroom to see the
model physically. While 60% of two-wheeler consumers reported wanting to take a test

ride before deciding to purchase; only 10% used it as a source of information in their
decision.
Research conducted by the Indian Marketing Research Bureau (IMRB) revealed that
two-wheeler manufacturers and dealers use consumer promotions as a tool to increase

sales, often during religious and social festivals. Exhibits 8a and 8b summarize consumer
reactions to manufacturers’ purchase incentives and preferences for various promotional
schemes by geographic region.
Consumer behavior – Market research4
HH conducted primary market research during Pleasure’s development to better

understand its potential market and customers. Four focus group discussions were
conducted in the city of Delhi with groups of women between the ages of 18 and 35. One
of the sentiments that came out of the focus groups was that participants disliked
troubling the male members of the family and also having to rely on them every time
they wanted to go out. One of the young women said, “I don’t want to be dependent on
my father to drop me wherever I have to go. Till now I have been managing this way, but
I don’t want to continue doing that.”
The focus group discussions revealed that young Indian women desire independence and
try to achieve this in their daily lives. They move beyond the domestic sphere with ease
and comfort as they pursue education, employment, and fulfill a variety of social
responsibilities. They prefer lightweight vehicles that would be easy to maneuver, safe to
ride, and fuel efficient. The market information revealed that women in the 18-24 age
group prefer a self-starting gearless scooter that is easy to ride.5

4
Source:
Company research data conducted by IMRB International. Usage and attitude
study 2004-2005.
5
Source: Company video of focus group.
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The research indicated that mileage was the main differentiating factor for the
participants of all four groups. Brand choice was based on mileage, engine capacity,
looks, company name, price and other factors. Exhibit 9 summarizes the differentiating
factors that all customers consider when buying a two-wheeler.
The major reason customers gave for buying a two-wheeler was saving time. The
consumer research revealed that 68% bought a two-wheeler to save time while 7%
bought for use in an emergency, 6% as an alternative to public transport, and the rest for
other reasons Of users in the 26 – 45 age group, 78% used two-wheelers for commuting
to work and 10% of those in the 18 – 25 age group used them to drive to school during
the week. The pattern changes during the weekends when two-wheelers are used for
shopping, meeting friends, and family outings. Mileage for the scooters is almost the
same on urban and rural roads. The mileage varies between scooters and motorcycles—
while the average mileage for a motorcycle is 70 kilometers per liter, it is 50 kilometers
for scooters. The reasons for buying a scooter were very different among male and
female scooter owners, as evident in Exhibit 10.

Decisions regarding the purchase of a particular model of two-wheeler were primarily
influenced by the chief wage earner (CWE)—67% of the buying decisions regarding
models were influenced by CWE and 22% were influenced by a son of the CWE. The
remaining 11% were influenced by other family members and friends, while 1% of
customers were influenced by the wife of the CWE. Exhibit 11 reveals the persons of
influence in the buying decision if women are the main users. However, it was observed
that during the purchase, female family members exerted their influence in the selection
of color, while male members predominantly participated in the negotiations regarding
price and financing.
Scooter customers differ in their use of two-wheelers and vehicle preferences. Exhibit 12
depicts three segments of consumers based on their need for and use of two-wheelers.
Competition
Bajaj Auto
Bajaj Auto offers three types of products in this market: geared and gearless scooters,
motorcycles, and three-wheelers. It has transformed its focus as a scooter manufacturer to
a motorcycle manufacturer and registered growth of about 18% in the year 2005-05. In
the year 2004-05 Bajaj Auto had 27% share of the two-wheeler market. Bajaj Auto
Finance Limited, an auto financing company, is a sister company of Bajaj Auto.
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TVS Motor Co.
TVS Motor Co. has a strong presence in the two-wheeler market India, with an annual
turnover of approximately Rs. 16000 million ($400 million). It is the third-largest two-
wheeler manufacturer in the country, with a market share of approximately 17.7% in the
2005-06. The company manufactures motorcycles, scooters, mopeds, and scooterettes. It
was also the first Indian company to launch an indigenous scooterette in 1994 under the
brand name TVS Scooty, a two-stroke gearless scooter. The product had an ABS plastic
body and was produced in two engine capacities: the 75 cc Scooty Pep and the 90 cc
Scooty Pep+. However, the company has discontinued Scooty Pep and now
manufactures only Scooty Pep+. TVS enjoys strong consumer perception about
reliability and the easy availability of spares. The product is available in 99 colors. Its
media campaign featuring Preity Zinta, a renowned celebrity, as a brand promoter, led to
high visibility. The brand has 29% market share in the gearless scooter segment.
Honda Motorcycle and Scooter India (Pvt.) Ltd.
Honda Motorcycle and Scooter India (Pvt.) Ltd. (HMSI) is a wholly owned subsidiary of

Honda Motor Company Ltd., Japan, and was incorporated in August 1999 independent
from HH. HMSI has its own manufacturing plant in India which started producing two-
wheelers in January 2001.
From the start, HMSI has targeted the gearless scooter segment. Its first launch, Activa, a
100 cc gearless scooter, was a huge success in the market. Buyers were happy with the
product quality, and the perception of Honda’s global image was high. Activa is a four-
stroke gearless scooter with a metal body. It is wider than the other gearless scooters in
the market and the top of the seat is soft. The mileage is about 45 kilometers per liter
(108 miles per gallon) and curb weight of the vehicle is 110 kg (242 pounds). The brand
has 44% market share in the segment. The brand targets male family members and
stresses the ability of the vehicle to transport other family members as pillion riders.
Activa has the highest load-carrying capacity among the gearless scooters currently
available in the Indian market. HMSI offers two other brands in this category: Dio (100
cc) and Eterno (150 cc).
Exhibit 13a reports sales figures for HH and three competitors across vehicle categories
in 2003-2004 and 2004-2005. Exhibit 13b provides insights into brand recognition
enjoyed by HH and its competitors.
MARKETING MIX OF PLEASURE SCOOTER
Product development
About two-and-a-half-years ago, while contemplating entry in the scooter market, the
company established a product development team consisting of researchers from the
R&D department, marketing executives, and outside market research consultants. The
team carefully observed how scooters were driven by both men and women. The team
sought to understand the techniques that consumers enjoyed while driving a scooter.
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They tracked the level of comfort and pattern of use by female consumers while de-
standing, starting, maneuvering, parking and standing the scooter. Movement analysis
was carried out both in laboratory settings as well as in practical situations. The research
team concluded that a scooter with a metal body seemed heavy for Indian women. They
also found that standing or parking a scooter was a difficult task for them, for the scooter
needs to be lifted onto its stand. They also observed that the majority of scooter drivers
carry relatives, family members or friends as pillion riders at some point.
The Pleasure was developed with a lightweight ABS plastic body and a 100 cc Honda
gearless engine. The scooter’s aesthetic featured contemporary styling with a sporty look,
and the detailed features like lighted ignition and self-repairing tires6 were chosen to
make it female-friendly. Exhibit 14 shows a pre-launch picture of the Pleasure scooter.
Pricing of Pleasure
The scooter was priced a little lower than all the other models but higher than TVS
Scooty Pep+ and Bajaj Kristal. Exhibit 15 shows the showroom prices (in Delhi) of

different manufacturers. The on-road price was approximately 15% higher than the
showroom price. It included 9% road tax, 3% insurance premium for the first year, and
3% for basic accessories which were optional but 90% of buyers opted to buy. HH’s
Passport Loyalty Program offered confirmed cash prizes worth Rs 250 with the purchase
of each vehicle.
Positioning of Pleasure
Anil Dua was faced with the challenge of how to position the Pleasure scooter. While
Pleasure was developed with India’s women travelers in mind, the product development
team noticed that 30-35% of Scooty Pep and Pep+ users were men even though it was
targeted to women. They also found that about 75% of Honda Activa users were male. It
seemed Pleasure could be positioned as a scooter exclusively for women or as a gender-
neutral scooter.
If Pleasure were positioned as a women’s scooter, it would be a niche product for

females who valued independence and needed a vehicle for their daily commute. The
design and the looks of the scooter were in keeping with other products made primarily
for women. FCB-Ulka’s account executive believed that Pleasure’s advertising should
emphasize the look of the vehicle and its woman-friendly features. He came up with two
tentative approaches for communication, as shown in Exhibit 16. Market research
anticipated that Pleasure—if positioned as a scooter exclusively for women—could have
sales of about 90,000 units a year.
Alternatively, Pleasure could be positioned as a gender-neutral scooter for both men and
women. The product could be touted as a versatile utility vehicle for transportation and
load carrying. The FCB-Ulka team expected to emphasize the physical characteristics of
the scooter that would benefit both males and females. If Pleasure were positioned with
unisex appeal, it would enjoy a larger market base but would immediately have to

6
In case of puncture, an adhesive gel will automatically come out and seal the puncture.
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compete with several well-established brands in the category. If Pleasure were launched
with unisex appeal, it might expect annual sales of 130,000 units.
Promotion of the Pleasure scooter
The Account Executive and his team at FCB-Ulka were working on the critical launch
advertising for Pleasure. They deconstructed the two existing advertising campaigns for
TVS’s Scooty Pep and Scooty Pep+ (Video 1 and Video 2 on the CD). Exhibit 16
provides the communication features of the two. Interviews with focus groups revealed
the brand personalities of Scooty Pep and Scooty Pep+ users as “trendy, aggressive and
individualistic, confident enough to handle situations on her own.” A two-dimensional
map for Scooty Pep+ is given in Exhibit 17. Considering all this analysis, the FCB Ulka
team suggested two communication approaches for Pleasure.
A two-dimensional map for the two approaches is shown in Exhibits 18a and 18b. The
account team developed one print advertisement and one TV commercial (Print ad 1 and
Video 3 on the CD). Both the advertisements rwere attitude-centric communication. Anil

asked the Pleasure development team to review the advertisements and offer
suggestions. The team was also asked to suggest whether the communication for Pleasure
would be (1) product feature-centric communication or (2) attitude-centric
communication.
Distribution network
The decision regarding Pleasure’s positioning would have both short-term and long-term
implications. Anil believed that if Pleasure were positioned as a niche vehicle for
women, he would prefer to sell it at exclusive outlets and not from the same showroom
where motorcycles are sold. He feared dealers would not give adequate attention and
resources to Pleasure as they would prefer to sell Hero motorcycles, which are well
established market leaders and are bigger-ticket items so commissions/profits per vehicle
would be larger.
Anil developed some requirements for the exclusive Pleasure showrooms having an
identity like ‘Just for her’. He wanted a separate sales office in each showroom and the
sales function to be carried out by women only. The scooter service and repair could be
done in any HH shop. Anil wanted to keep the maintenance service and a small
inventory of spares in the same showroom. In terms of showroom personnel, Anil wanted
one female sales manager, three to four female sales associates, two service persons, and
one female office assistant in each Pleasure showroom.
Maintaining exclusive showrooms would require identifying appropriate dealers and

convincing them to make a separate investment. Since women usually frequent shopping
malls or visit shops in the heart of cities, it made sense to open showrooms in these areas.
However, opening and sustaining showrooms in such prime locations would be costly
compared to operating existing two-wheeler showrooms, which were largely situated on
the outskirts of cities. The average monthly expenditure for dealers would be about Rs
160,000 ($4,000) per month. Recovering this expenditure might prove to be difficult if
there weren’t adequate sales.
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Anil wanted to launch Pleasure both in Tier I and Tier II cities in India7. He initially
wanted to launch it in 21 cities where the company already had a presence in the
motorcycle category. Anil knew that the dealers –would need to have enough motivation
to open a separate showroom and he was ready to increase the dealers’ margin by an
additional one percent over the existing margin on Pleasure sales. However, he also knew
that it would not match the ROI that dealers got from selling motorcycles; he would have
to convince dealers about the future prospects for Pleasure.
Pleasure as brand
Several brand names were discussed by the team on the basis of focus group interview
results. The primary consideration was the emotion of women consumers who seek as
much freedom and liberty as men enjoy. They value success, achievement, and fun. They
value their independence and live life on their own terms. They possess self-confidence
but make it clear that they are not snobbish. The team brainstormed several names and
tentatively agreed on Pleasure.

However, the team had not yet decided whether to give more stress to the HH company
name or to the Pleasure brand name. There were two distinct opinions in the team. Some
wanted to display the HH company name prominently, as an assurance of quality and
reliability. Others were in favor of emphasizing Pleasure. They argued that if HH was
made more prominent and Pleasure failed as a product, the brand value of HH as India’s
largest motorcycle manufacturer would suffer. Anil went through another session with
the agency team and they recommended putting Pleasure first and giving it more
prominence, although they too felt that the company name should be sufficiently visible
in the communications.
The meeting room at the company’s office – Saturday, 4 March 2006, 10 AM
As the participants debated whether the new scooter should be positioned as gender-
neutral or meant for women, several questions and opinions emerged. Anil encouraged
everyone to voice their views and also to play devil’s advocate so all issues were
surfaced one last time before finalizing the strategy. The essence of the discussion is
summarized in the following views.
One marketing manager noted:
The brand image of Hero has manly appeal. We may lose that image if we introduce
Pleasure exclusively for women.

7
Tier 1 cities are those with populations above one million. Metros are basically
regarded as Tier I cities. Tier II cities are smaller cities, with populations below one
million.
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Another impassioned view was:
Why will one buy Pleasure? What is a compelling feature in it? If we are thinking of
adding a non-differentiated new product in a segment where Honda Activa and Scooty
Pep+ are already established, we are simply inviting disaster! Instead, if we start with
the niche of women, we may be creating a segment and a specific need for that segment.
The head of marketing for one of the regions pointed out:
Positioning Pleasure as a niche product will help us in targeting a specific segment, i.e.
women, and differentiate ourselves. But by saying women and only women, we are losing
a good share of market. I am not saying that marketing to women is wrong, but I would
be better to go the Scooty way and promote ‘youth’ in the positioning rather than ‘young
women.’ There is also no significant precedent where these types of products, say
mopeds or scooterettes, were marketed only for females.
A dealer posed the question:

“If I open a separate establishment for selling this scooter, I wonder if I can reach
breakeven?”
Anil believed that Pleasure’s design and female-friendly features made it more of a
women’s product rather than just a product which women happen to use. While he
wanted to create a completely separate emotion for women rather than just developing a
product for that segment, he found merit in the argument posed by the marketing head of
the eastern Region and several other managers: Hero’s brand image might be negatively
impacted by focusing the product only on women. He contemplated how to position
Pleasure, how to create a brand, and what communication strategy to use?
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Exhibit 1: Market share of motorcycles (Year 2002 – 2004)
Company name In 2002 – 2003 In 2003 – 2004 (%)

(%)
Bajaj Auto 24 24
Hero Honda 44 48
TVS 18 16
Yamaha 8 6
Others 6 6
Source: Federation of Automobile Dealers Association, ICRA Sectoral analysis –
January 2005.
Exhibit 2: Financial Statement for Hero Honda Motors Limited
Particulars 2000-01 2001-02 2002-03 2003-04 2004-05

Total Income (Million Rupees) 3191 4539 5195 5997 7563
Profit before Tax (Million Rupees) 377 694 885 1072 1217
Profit after Tax (Million Rupees) 247 463 581 728 810
Total Debt (Million Rupees) 66 116 134 175 202

Net Fixed Assets (Million Rupees) 454 491 517 589 715
OPBIT*/Net sales-% 13.2 15.0 16.7 16.8 15.7
OPBT**/Net Sales*(%) 11.7 13.9 15.5 15.6 14.6
Dividend Per Share ( Rs) 3.0 17.0 18.0 20 20
Dividend Payout (%) 26.7 75.5 69.8 61.9 56.3
* OPBDIT = Operating Profit before Depreciation, Interest and Tax
**OPBT= PBT before other income
Source: Company Annual Reports.
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Exhibit 3: Picture of motorcycle, scooter and moped
Motorcycle Scooter Moped
Exhibit 4: Demand for three types of two-wheelers
Demand for three types of two wheelers
500000
Number of two-wheeler sold
450000

400000
350000
300000 Motorcycle
250000 Scooter
200000 Moped
150000
100000
50000
0
1993- 1994- 1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003-
94 95 96 97 98 99 2000 01 02 03 04
Financial year

Data source: National Council for Applied Economic Research (NCAER).
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Exhibit 5 : Rural vs. urban market scenario for two-wheelers in India in 2005
Urban Households Rural Households
% %
Owners 55 37
Early users (owned for at 72 66

least 2 years)
Early users who intend to 5.3 6
buy another within 6 months
Recent users (owned for less 28 44

than 2 years)
Recent users who intend to 3.5 3

buy another within 6 months

Non-‐owners 45 63
Non-‐owners who intend to 3.5 3

buy within 6 mos.
Source: Company research data conducted by IMRB International. Usage and attitude
study 2004-2005.
14
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Exhibit 6 : Geographic market scenario for two-wheelers in India—2001 and 2004
Southern Eastern
All India North India West India India India
% % % % %
2004
Two-wheeler owners 49.5 50.5 59 46.1 35.5
Bought in last two years (among two-
wheeler owners) 14.7 14.7 17.3 13.8 11.6
Intend to buy 4.0 4.8 3.7 3.9 3.4
—Already own a two-wheeler and
intend to buy another 2.4 2.9 2.4 2.1 1.8
—Non-owners who intend to buy 1.6 1.8 1.3 1.8 1.6
2001
Two-wheeler owners 40 41 53 39 25
Bought in last two years (among two-
wheeler owners) 18 18 27 14 10
Intend to buy 7.4 7.5 8.2 8.6 5.5

—Already own a two-wheeler and
intend to buy) 3.6 4.0 4.5 3.9 2.1
—Non-owners who intend to buy 3.8 3.5 3.7 4.7 3.4
study 2004-2005.
Exhibit 7: Changing profile of household incomes in India—2001-2002
Annual household income Number of households (in % growth from 1995-1996

(in thousands of Rs.) thousands)
>10,000 20 300
5000- 10000 40 256
2000 – 5000 201 219
1000 – 2000 546 189
500 – 1000 1,712 163
200 – 500 9,034 133
90 – 200 41,262 43
3 <90
Source: National Council for Applied Economic Research (NCAER)
15
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Exhibit 8a: Consumer reactions to two-wheeler manufacturers’ purchase

promotions
% of two-wheeler buyers
Percent of two-wheeler owners who reported 20

buying a vehicle during a promotional scheme
Among those who bought a two-wheeler during a

promotional period:
Were aware of promotion before purchase 47
Learned about promotion at purchase 45
Waited for promotional offer to purchase 8

Bought when a gold coin was offered 19
Bought when the Rs 1000 was offered 18

Bought when free mobile was offered 18
Bought when 0% interest was offered 5
Bought during no promotion 40
study 2004-2005.
16
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Exhibit 8b: Promotional scheme preferences of two-wheeler buyers (%)across India
All North West South East Urban Rural

India
0% finance* 17 16 17 20 17 19 14
Free insurance 16 12 20 18 13 15 17
Free cell phone* 13 19 13 9 12 12 16
Gold coin* 10 11 11 11 7 11 9
Free road tax 9 4 6 9 21 8 11
Rs 1001 off* 8 8 8 8 8 8 9
Free registration 7 12 5 6 6 7 9

Free petrol 4 3 8 4 2 5 3
*Indicates the most common promotions offered by two-wheeler manufacturers.

study 2004-2005.
Exhibit 9: Differentiators for buying decisions in Urban and Rural
Urban (%) Rural (%)

2004 2001 2004 2001
Mileage 45 35 49 35
Engine Capacity 15 10 14 11
Looks 12 17 14 14
Company 9 14 9 17
Price 6 6 4 5
Power 3 10 3 10
Others 9 5 6 4
DK/CS 1 3 1 4
study 2004-2005.
17
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Exhibit 10: Transportation needs of each gender
Female (%) Male (%)
Started going to college, tuition 33 8
Started going to work, acquired a job 29 42
Need to travel frequently as part of job 13 25
Need to drop children/spouse at 9 3
school/work
Need to travel long distances regularly 4 4
study 2004-2005.

Exhibit 11: People who influence two-wheeler purchase decisions when women are
the main users
Person of influence Scooterettes (in %) Scooters (in %)
Chief wage earner 36 43

Daughter 35 28
Wife 11 17
Friend 11 5
Son 2 2
Father 2 1
Brother 1 1
study 2004-2005.
18
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Exhibit 12 : Segments of scooter consumers based on use
Used for Used for going to Used for going to

commuting to college, seeing work, parties
work and friends
transporting goods
and family
members
Features Metal body, ABS plastic body, Metal / ABS body, 90
powerful 100 to 135 75 to 95 CC engine, – 100 cc engine,
cc engine, sturdy, lightweight, sleek sturdy and smart
slightly bigger in looking, gearless. looking, gearless
size, geared or
gearless
Primary user Father, husband Daughter Wife, young women
Secondary user Mother Young women Mother
Age of the 30 - 60 18 - 24 22 – 40

consumer
Benefits they seek More rational, less More emotional, Rational as well as
emotional less rational emotional
User personality Mature, Trendy, spirited, Cool, young,
dependable, adventurous, outgoing, collective

outgoing, guardian aggressive, but independent,

glamorous, success/achievement
individualistic city oriented, confident
girl and can handle
situations on her own.
Color preference Black, dark color Vibrant multiple Light vibrant color
colors, deep color
Brands used by the Honda Activa, Scooty Pep, Scooty Honda Activa, Scooty
owners Kinetic ZX, Nova Pep+, Kinetic Zing Pep +
135 80
study 2004-2005.
19
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Exhibit 13a: Sales for Hero Honda and three competitors across vehicle categories
Bajaj Auto Ltd. Hero Honda Motors Ltd. TVS Motors Ltd.
2003-04 2004-05 2003-04 2004-05 2003-04 2004-05
Geared Scooters 178070 102762 NA NA NA NA
Non-geared
Scooters 54709 30931 NA NA 189238 224621
Motorcycles 1023650 1449677 2070154 2626070 706558 679536
Mopeds NA NA NA NA 251065 263393
Three-wheelers 1288960 1602565 NA NA NA NA
Grand Total 2545389 3185935 2070154 2626070 1167550 1146861

Source: Compiled by authors from different public sources.

Exhibit 13b: Consumer recall for India’s major two-wheeler brands
Unaided Brand Recall Aided Brand Recall (%)

(%)
Hero Honda* 92 100
Bajaj Motors 90 100
TVS Motors 63 99
LML 41 95
Kinetic 28 94
Honda 14 63
*76% of research participants (including owners and prospective buyers) perceived Hero Honda as the
largest two-wheeler company
study 2004-2005.
20
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Exhibit 14: Pleasure model developed before launch
Exhibit 15: Price of different products in same category in 2006
Company Brand Price (Rs)

Hero Honda Pleasure 36740
Honda Motorcycle and Activa 38273

Scooter Industries
Dio 36993
Eterno 37155
Eterno (Dlx) 37598
TVS Scooty Pep+ 31419
Bajaj Kristal 35532
Source: FCB ULKA report COMSTART.
21
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Exhibit 16: Analysis of communication messages for Scooty brands and two
suggested routes for Pleasure
Scooty Pep Scooty Pep+ Pleasure route 1 Pleasure route 2
Functional Delightful A powerful Contemporary styling, ease of riding, best-in-
benefit riding scooter class performance, power, women-friendly.
experience
Engine power 75cc 90cc 102cc
Emotional So good that Enables you to Enables you to live your life to the hilt and fulfill
benefit you become stay ahead of all your dreams and desires.
possessive others.
about it.
Creative context Bollywood Bollywood Girls having fun Women achieving
actress Preity actress Preity together with Pleasure; success in a man’s
Zinta as brand Zinta as brand girls bonding together world. She believes in
ambassador + ambassador + with Pleasure. working hard and
Boys Boys partying hard.
Baseline, Key First love More powerful, Why should boys have Why should guys have
thoughts more playful all the fun? it all? Why should it

be guys all the time?
Target gender Male and Female, but Exclusively female
female male is not
alienated
Communication Young men Young women Young women 18-25 years, Sec A/B
audience and women 18- 18-25 years,
25 years, Sec Sec A/B
A/B8
Marketing Women 18-34 Women 18-34 Core Women 18-24 years, Sec A/B
audience years, men 18- years, men 18- Secondary Women 25-34 years
24 years, Sec 24 years, Sec Peripheral Men 18-30 years
A/B A/B
Source: Foote Cone and Belding report.

8
Socio-economic classes (SEC) A/B are upper class people. Nearly half the SEC A households works in
executive positions. The other half comprises industrialist/businessmen. Almost all of them are either
graduates or post graduates. SEC B households are primarily (46%) employed at clerical or supervisory
levels. 29% are shopkeepers and 10% are industrialist/businessmen. Less than half (45%) are graduates or
post graduates.
22
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Exhibit 17: Two-dimensional map for Scooty Pep+
Collective
Opportunity I
Opportunity II
Existing route: Why should boys
•A counter to Scooty Pep
have all the fun?
•Straddling fun and success/
• Differentiation in social vs.
achievement
collective fun
Success/
Play/ fun
Achievement
Scooty Pep Generic to the category: very utilitarian

Individualistic
Source: Company information on Pleasure brand identity (Foote Cone and Belding
report).
23
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Exhibit 18a: Two-dimensional map for possible communication approach for

Pleasure:
Route I
PLEASURE- ROUTE I
•Collective fun Collective
•Family oriented
Play/ fun Young, adventurous, fun-loving,
confident, Spirited, 18-24 yrs.

•Individualistic
•Aggressive
SCOOTY PEP/ PEP+ Individualistic
Source: Company information on Pleasure brand identity (FCB-Ulka report)
24
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Exhibit 18b: Two-dimensional map for possible communication approach for

Pleasure:
Route II
PLEASURE- ROUTE II Collective
•Family oriented
•Collective fun
•Intelligent
•Believes in working hard and
partying (having fun) hard
Play/ fun

•Individualistic
•Aggressive
Pleasure SCOOTY PEP/ PEP+ Individualistic

Source: Company information on Pleasure brand identity (Foote Cone and Belding
report).
25

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Launch of the Pleasure Scooter

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service and spare selling points, and spare part stock-lists.

The two-wheeler industry in India

Two-wheeler manufacturers in India sell vehicles through company-exclusive dealers in

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two-wheeler manufacturers and dealers use consumer promotions as a tool to increase

Consumer behavior – Market research4

HH conducted primary market research during Pleasure’s development to better

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TVS Motor Co.

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MARKETING MIX OF PLEASURE SCOOTER

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If Pleasure were positioned as a women’s scooter, it would be a niche product for

Promotion of the Pleasure scooter

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Maintaining exclusive showrooms would require identifying appropriate dealers and

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The meeting room at the company’s office – Saturday, 4 March 2006, 10 AM

One marketing manager noted:

Another impassioned view was:

The head of marketing for one of the regions pointed out:

A dealer posed the question:

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Exhibit 1: Market share of motorcycles (Year 2002 – 2004)

Company name In 2002 – 2003 In 2003 – 2004 (%)

Exhibit 2: Financial Statement for Hero Honda Motors Limited

Particulars 2000-01 2001-02 2002-03 2003-04 2004-05

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Total Debt (Million Rupees) 66 116 134 175 202

* OPBDIT = Operating Profit before Depreciation, Interest and Tax

**OPBT= PBT before other income

Source: Company Annual Reports.

Exhibit 3: Picture of motorcycle, scooter and moped

Motorcycle Scooter Moped

Demand for three types of two wheelers

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Urban Households Rural Households

Early users (owned for at 72 66

Recent users (owned for less 28 44

Recent users who intend to 3.5 3

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Non-­‐owners who intend to 3.5 3

Exhibit 6 : Geographic market scenario for two-wheelers in India—2001 and 2004

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Exhibit 7: Changing profile of household incomes in India—2001-2002

Annual household income Number of households (in % growth from 1995-1996

5000- 10000 40 256

2000 – 5000 201 219

1000 – 2000 546 189

500 – 1000 1,712 163

200 – 500 9,034 133

Source: National Council for Applied Economic Research (NCAER)

Exhibit 8a: Consumer reactions to two-wheeler manufacturers’ purchase

Percent of two-wheeler owners who reported 20

Non-‐owners who intend to 3.5 3