PRODUCT LAUNCH : MV AGUSTA 650
Presented By
Group 4 FMG25A
COMPANY INTRODUCTION
Established in 1945
Headquartered in Varese, Italy
Started with cheap and efficient means of
transportation
Moved to 600-750 CC bikes
Presently manufacturing 600-1000 CC bikes
Also manufactures special racing bikes
MACRO ENVIRONMENT
Demographic Environment
Age group: 18-45
Youth and middle age men from affluent families
Economic Environment
Wealth accumulation in the hands of youth and middle age men with the entrepreneurial boom
in the nation
Foreign players investing huge amount of money for product development due to growth in
superbike segment
Technological Environment
Use of advanced technologies to ensure performance as well as safety, e.g., ABS, Dry Clutch
Political-Legal Environment
PUC certificate, ISO certified helmet and state & central govt. approval
Huge taxes like road tax, registration charge, vehicle insurance and dealer handling charges
Natural Environment
Indian tourers need bikes which could work efficiently in a temperature range of -5 to 50 degree
Celsius
MICRO ENVIRONMENT
The company: MV Agusta, originally Meccanica Verghera Agusta, is a motorcycle manufacturer
founded on 12 February 1945 near Milan in Cascina Costa, Italy. MV Agusta, the Italy-based
premium motorcycle manufacturer, has entered India through an exclusive partnership with Punebased Kinetic group with the launch of three luxury bikes, which will be sold through the
Motoroyale
chain
in
Pune.
Massimo
Tamburini
was
an
Italian
motorcycle
designer for Cagivaa, Ducatii, and MV Agusta
Suppliers: Brembo brakes, ohlin shock absorbers and the other major parts are manufactured by
them
Customers: Dominated by middle age customers of age group 18-45 years. Mainly purchased by
youth and middle aged men from affluent families for Sports and touring purposes across India
Competitors: The major players in the Indian superbike segment are Royal Enfield and Harley
Davidson having a market share of approx. 60%. The other models in the segment are
Yamaha R6, Kawasaki Versys 650, Ninja 650, Triumph Bonneville, Thruxton.
Market Leader: Royal Enfield
Market Follower: Harley Davidson
OPPORTUNITIES
Market Demand
Superbike market has grown @40-50% over the past two
years
The market is expected to expand 3-folds by 2017
Consumer
Due to increasing traffic in cities, young professionals prefer
bikes but end up buying cars because of status issues
Superbike can fulfil both the needs
Industry
Rapid growth of population in India results in increasing
demand for the automobiles
Supplier Related Factors
With government support and campaigns like Make In
India, the industry is realizing the value of precision and
high quality products and thus, the suppliers development
is taking place at a good pace
STUDY
OF
COMPETITIVE
BEHAVIOUR
PORTERS 5 FORCES MODEL
THREAT OF NEW
ENTERANTS
BARGAINING POWER
OF SUPPLIERS
LOW
LOW
INDUSTRY RIVALRY
HIGH
THREAT OF
SUBSTITUTES
BARGAINING POWER
OF BUYERS
LOW
HIGH
TRIGGERS
Passion, performance, Status and jealousy
Passion: Avid followers of the latest trend in the motorcycle market generally follow updates
regarding latest bikes and latest updates.
Performance: People with racers as idols try to imitate their performance on the tracks with their
own bikes. They generally do not mind splashing extra money on the performance.
Status: A superbike always become a method to show off the money and the biking skills
Jealousy: Superbikes are generally not advertised on the T.V. and newspapers but displayed in
auto-expos and other similar events. Generally at such places people look for bikes which are
better or similar to the bike of their peers.
STAGES IN PURCHASE
Generally the need arises for superbikes when there is lack of satisfaction from the existing bikes.
Shortlisting is generally done by going through reviews on automobile specific magazines, TV
shows and YouTube videos
Then generally happens a visit to the showroom and a test ride. Satisfaction gained from bike is
tested here.
Now money comes into picture for the at this stage when the final shortlisting is to be done.
People generally look for value for money and for the segment targeted by us the budget is
usually not a constraint.
Marketing budget allocation
Percentage allocation of marketing
Budget
events
30%
45%
newspaper
T.V.commercials
magzines
sponcerships
18%
5%2%
The potential customers are generally the one who
are avid followers of updates and latest trends so is
this reflected in the budget allocation for the
marketing
The max. amount is spend in events
Then is in sponsorships of various events other
than the ones directly related to the automobile
industry.
Then comes the magazines.
And finally there is some amount saved for
newspaper and T.V. advertisements in case of
emergency.
BRAND POSITIONING
MV AGUSTA 650
IN CONTEXT OF
KOTLERS 5 LEVELS OF PRODUCT
CORE BENEFITS: Sporting and Touring
BASIC PRODUCT: 650 CC Engine, Dry clutch
EXPECTED PRODUCT: High speed , Great Control, Great
Comfort
AUGUMENTED PRODUCT: High Acceleration, Excellent
Design
POTENTIAL PRODUCT: Satisfaction in terms of price.
PERCEPTION MAP
High Quality
Low Price
High Price
Low Quality
Suzuki when comes to sporting is
perceived as high quality premium
product.
Where as Bajaj and Yamaha have
not actually entered the market of
superbikes in full swing and are
perceived as the product of the
masses
Royal Enfield is always known for its
comfort and quality.
Kawasaki is known for its speed and
quality.
So MV Agusta is presented as a
product of super quality and
economic price which makes it a
better choice in both sub-premium
and premium markets.
INTEGRATED MARKETING COMMUNICATIONS
Current Strategy for launch:
On 19th of NOV. in the concert in Mumbai the members of cold play are expected to come on the stage
on their MV Agusta 650. This is how the official launch of the bike will be.
The coming soon advertisements will be out in the Bike Magazines two months before the launch to
catch the eye of the bikers.
Videos and graphical campaigns of the bike will be uploaded on the digital media and the expert
comments about the upcoming bike specification and test ride will be uploaded on the websites.
