Racing past the Barriers

The Success of the Apache Motorcycle in India

Once Upon a Time There Was a Market

A market where licenses were controlled and were few and far between, imports were restricted, foreign investment was not allowed and local producers successfully lobbied with the government to maintain the status quo. Production capacities were limited, and yet it was a marketing heaven for the existing producers. Customers waited uncomplainingly for long periods (extending to a year and beyond after full payment to collect their set of wheels. !ven as late as the early "##$s, %a&a&, the leading two'wheeler company had a waiting list that was () times the company*s annual output. +he C!, of %a&a& once remarked, only half &okingly, that they did not need a marketing department, only a dispatch department. And then things changed. Compelled more by a vulnerable foreign exchange deficit, rather than in the interest of free trade, the -ndian government opened up the market in the early "##$s. -t was the opening up of floodgates, leading to a boom in foreign investment, technical collaborations, and new media, all of these factors paving the way for a new era of consumerism. Perhaps the most tangible, visible and much needed change took place in the Auto sector, with new investment and increased capacity kick starting the growth. .reater choice, customi/ation for different road conditions, better distribution, and price tiers to suit a range of budgets, all contributed to unimaginable growth rates. 0rom a modest $."million vehicles in early "#1$s, the market is expected to be a whopping "$ million (a hundredfold increase in less than four decades. -ndia is now the largest two'wheeler market in the world and most of the growth has taken place in the past "2 years. ri!ing "ro#th +wo'wheelers have been the main means of transport in -ndia accounting for over 1$3 of the vehicle population. +he two'wheeler of the "#1$s and "#4$s was a scooter of a "#2$s -talian design. -t wasn*t uncommon to see an entire family of four (or even five carrying several bags making their way around the busy roads on the two wheels. (5ee figure "

0igure "

Although motorcycles made their debut in the "#2$s, they came in as imports by the government, to guard the Pakistani border (the first bike was appropriately called %ullet6 . 7otorcycles until the mid'"##$s never really had a strong volume base. %eing heavy and difficult to manage, in addition to being fuel gu//lers, they were quite unsuitable except for the very niche 8 law enforcement and the macho exceptions that opted for a motorbike over the practical scooter. +95 was the first to introduce a lighter version of the motorcycle to the -ndian market, which was to be the first of several models. :hile the apparent appeal was greater fuel efficiency on account of the lighter body and four strike engine, motorcycles also in&ected a feeling of youth and modernity in tune with the optimism of a market &ust opening up. 7otorcycles now outstrip the scooter market by six times All of the initial growth was driven by technological innovation. 0or a market starved of choice on both prices as well as performance, where the incumbent technology dated back to the early "#2$s or before, this was a critical step to draw in new customers. -nnovations were predominantly in the area of fuel efficiency, which became the basis for new models and the dialogue with the consumer. 5egmentation of the market was primarily on price tiers. %randing was limited to the corporate values of the company, which served as a reassuring stamp of quality and after sales service. All communication emphasi/ed functional performance and the extra miles that a liter of petrol would stretch to. At best, there was some use of celebrity endorsements to add humanity and appeal to factual advertising. +he transition of the marketers* mindset to this stage was quite painless. Coming from a strong production orientation, the new technology and engineering innovation provided a new excitement without dragging them out of their comfort /ones. 7ost people who work in automotive companies in -ndia (then and even now are engineers, irrespective of their role and function in the company. :ith their engineering mindset, they strongly believed in the consumers* ability to evaluate superior performance and set about earnestly to build a better and better product +95 was the market leader, the first among the big three. +95, in fact, was a company known for many firsts ' the first lighter motorbike that went on to revolutioni/e the market, the first to lead the market boom, the first ;apanese &oint venture, the first to bring in state of art technology, the first moped and the first to use celebrity endorsement. +95 was therefore a company not averse to taking the risks that are involved in moving into uncharted territories

The Market Shifted "ears

:hile growth continued, the market gradually moved from a sellers market to overcapacity. -ncreased number of choices, several models at all price tiers and the absence of any runaway new successes in five years led to an erosion of the +95 leadership position. 0rom being the market leader, +95 slipped to the number three position. +here was a clear and immediate need to re&uvenate and to explore new opportunities. +95 did what all auto marketers do best 8 turn to the engineering and design team for a solution. 5everal new products were designed and tested, some were even found superior in product clinics and launched, but the market response was lack luster at best. :ith no opportunity to create a new price point and functional performance not breaking any new boundaries, the time had come to turn in another

direction

$hanging %anes
<ever strangers to trying avenues other than the conventional, safe and the familiar, +95 took the bold decision to look beyond improving functional performance for a solution. =ather than taking a scatter gun, trial and error approach, +95 decided to attempt understanding what the market needed. +hey had access to the best technical and design consultants in the world, and were confident that once the market gaps were identified and understood, the task of creating a suitable product would not be very difficult. +here was also a hesitant reali/ation that consumer decisions were not wholly rational. And that there were elements that went beyond functional parameters. >ow else could they explain the less than successful launch of models that surpassed others on fuel efficiency? +he decision to explore building the brand as a platform for a deeper consumer connection was taken. A research proposal to segment the market on needs was asked for, the initial reaction to which was a mix of both skepticism and enthusiasm

The Tool Bo&

+he research consisted of several stages. +he first was a qualitative exploratory phase to uncover the need structure of the market. +his was followed by quantitative need based segmentation to validate the need structure and measure the si/es of the need segments. 7apping and measuring of existing brands on the needs landscape helped to identify where the opportunity lay. Concepts were developed and tested and +>!< finally the technical design team given the direction to develop@ identify a suitable product that expressed the desired brand positioning. +his represented a complete paradigm shift in the method of client working and thinking, where most of the earlier launches (the successful ones as well as not so successful had emerged from the engineering and draftsman drawing boards. <eed5cope, +<5*s proprietary system was identified as the most suitable solution

The 'eedScope System

+wo concepts form the theoretical basis of <eed5cope 8 a 7arketing 7odel and an archetypal framework +he 7arketing 7odel describes how brands and needs are two sides of an equation and should fit together. <eeds are delayered into three levels. (5ee figure ( +he outer, most easily accessible, layer of consumer needs is the rational layer and is satisfied by the functional benefits the product delivers. +he -ndian two'wheeler market was largely competing at this need level 8 there was increased fragmentation on prices, varying combination of features, performance and mileage. +he only route to competitive advantage seemed to be engineering innovation, leading to long npd cycles, high risk launches without any means to secure long term advantage as all the big three had equal access to international state of art technology.

0igure ( +he second layer has to do with sociology 8 the need to identify with particular groups in society. +hese needs are met by the social values or character of the brand 8 a brand for young people, for women, upscale, etc. -nterestingly, the market was not very well differentiated at this layer either, except through a default pricing route. And finally, at the heart of the model are the emotive needs. +hese are the core drivers of brand choice, the engine that powers the consumer*s relationship with the brand. +he 7arketing 7odel is therefore not &ust an emotive model. -t recogni/es that consumers have needs at all levels, and that the rational or functional level serves as a screener, the first stop, which if not satisfied, will keep the brand out of the consumer*s consideration set. >owever, this is not the layer at which loyalty can be built and it is necessary to go below the surface. 5tarting with the rational, the model systematically uncovers the inner need layers. +here is also no hierarchy 8 no layer is considered more important than the other. +he needs are interlinked and only when cohesively met across all three layers, will a powerful connection be struck with the consumer. +he example of the iPod shuffle below illustrates this. (5ee figure A +he second concept is the <eed5cope archetypal framework. (5ee figure B +wo axes are the fundamental anchors of the framework. +he hori/ontal is the - vs. :e axis. +he right side represents the drive for individualism and self assertion. +his is the need to stand out, to feel superior, to be admired and to stay ahead of others. +he left is about the fundamental sense of belonging 8 the need for acceptance, togetherness, friendship and warmth +he vertical dimension divides the model into the extroverted and introverted poles. +he top is about energy directed outwards 8 release, stimulation, freedom. +he bottom is about energy that is inwards 8 more contained and controlled and therefore less visible. :hile these are polar opposites, there are no hierarchies or negatives. +he space represents alternative strategies that consumers use to resolve their needs. -t must also be pointed out that this is a needs rather than a consumer framework. Consumers are multi'faceted and have multiple needs, depending on the context of the category and occasion

0igure A

+he

iPod shuffleC Defining the need layers of %rand choice

0igure B +he space can be dissected in many ways, but in its most basic way we can identify six archetypes. Archetypes are the unchanging constant in human beings that hold over time, across different geographies and cultures. 0or example, everyone recogni/es and connects with the nurturing care of the 7other, the appealing purity of the -nnocent or the determined courage of the :inning >ero beating odds and with the irresistible sensuality of the 5eductress. ,ver millenniums, powerful stories have been told and written about them. +hey take different faces and names, but they still strike the same deep chord within all human beings. +hey are reflected in our gods and goddesses, in our mythologies and it doesn*t matter if one is one is .reek or -ndian, Chinese or <ordic. Encannily cultures that have evolved thousands of miles from each other and with no real contact, developed the same stories. +hese archetypes are found in culture after culture, they anchor our worlds and our

belief systems. Carl ;ung calls this the collective unconscious Powerful brands too tell stories that connect at the same symbolic level as archetypes. <ike*s ;ust Do -t has, among others, +iger :oods striding victoriously across golf courses around the world, having beaten racial pre&udice in what was an exclusive elitist gentleman*s game. ,r we have <ike*s =afael <adal stopping hearts with his unconventional looks and repeatedly beating the world no. " at the 0rench ,pen. Dove, with its encompassing =eal %eauty campaign, recaptured the appeal of wholesomeness, naturalness and purity, reaching out to all women. F*,real*s G-*m worth it* speaks to the confidence of someone who knows what is best and is entitled to it. ;ohnnie :alker*s success is based on an intimate understating of the =uler Archetype 8 standing ahead of others. Powerful brands are archetypal in nature. +his is what enables them to connect at the deepest level, inspiring consumers to behave often Girrationally*. +hey, build lasting commitments and relationships. +hey speak a symbolic language that is not made of words and therefore crosses barriers of language, religion and politics ' a language that unites, that taps into universally shared hopes, dreams and needs. +hat is what makes them the global icons they are6

Taking the (motional leap for#ard

Coming back to the +95 story 8 the market was largely operating at the functional layer. +he only brand that had broken out of this mould was Pulsar, from a competitor house, with enviable success. Clearly the -ndian consumer was not &ust ready for a more meaningful dialogue, but was actually seeking more than functional promises. :e started with qualitative research with recent buyers of motorbikes and those intending to buy a motorbike in the next few months. Esing pro&ective techniques and the <eed5cope framework, needs were uncovered at all layers. (5ee figure 2 5ome of the key insights that came throughC 7odernity is at the heart of the category. +he market had moved away from the family orientation scooter days. Consumers were looking for contemporary expression in keeping with the optimism and hope of the new generation. +his had to be reflected in both the design and the emotive proposition. 5tability, reliability and trust, which were critical strengths of the +95 corporate brand were now taken for granted, important to have, but no longer enough o which to build a differentiated proposition. +he new brand would therefore have to stand aloneH in fact perhaps lead the shift of +95 image towards modernity. And to succeed in this direction, there was a need to alter the thinking and functioning of existing stalwarts within the company, with their strong technical orientation. +he next stage was the quantitative segmentation based on needs. +here were six need states identified and each need state was detailed on all layers of needs as well as other demographic and behavioral parameters to enable targeting. (5ee figure )

0igure 2

0igure )
Intro!erted ominance Asserti!eness Indi!iduality Recep

+he archetypes are clearly evident. !xclusivity is about asserting one*s status, looking and feeling better than others. +he brand has to reflect sophistication, knowledge and authority. +he social values of !xclusivity are premium, international and exclusive. 0unctionally, the bike needs stronger safety assurances that only a discerning buyer understands. and visible enhancement features to match. -n contrast, Affiliation is a need to belong, to own the tried and trusted, to be appreciated by the family and to feel good about oneself. +he social values are that of a newly married person, ready to settle down. 0unctional needs are pillioncomfort, low maintenance value and an assured resale price. +he si/e of the need states indicates the dynamic shift of the market towards more modernity and individualism. )(3 of the market is weighted towards self expression and status needs. (5ee figure 1 0igure 1C TVS Portfolio Missing the Action

%rands were then mapped on the needs landscape based on how consumers perceived them. Pulsar, the big success in the market, was unsurprisingly in Potency. +he +95 brands were all clustered in the lower part of the affiliative section of the map. Clearly, all of them were drawing imagery and symbology from the affiliative, reliable image of the corporate brand. +he position of the +95 brands indicated sub'optimal utili/ation of the portfolio and the absence from the more dynamic and growing part of the market was a cause of concern. +95 clearly had to get back into the action

Potency and Fiberation, being large and growing were identified as the opportunity. An in'depth need state' brand fit analysis showed that Fiberation, rather than Potency was a more optimal target for several reasons Potency, while larger and exciting, already had a formidable competitor in Pulsar. +here was a high risk of becoming a me'too launch unless something dramatically different was created. :hile the need to create a new brand rather than a new +95 model was recogni/ed, it was also clear that the auto being a high ticket buy, the signature of an established company is needed for market acceptance and consequently there would be some influence of the company brand. +he Potency need state with its macho, rugged individualism was &ust too distant to be targeted credibly with +95*s affiliative imagery. Fiberation had a younger skew, which opened up the opportunity to target a new social group 8 the first time bike buyer. :ith the market si/e growing, the profile of the buyer was getting younger and this segment was expected to grow even further as the shift of the older middle class consumers towards four'wheelers had begun.

%i)eration * %ife+ ,ere I come--+he first step was to understand Fiberation at all layers of needs. !motively, liberation represents the wonder years in a man*s life. +he first taste of freedom, the first coming into adulthood. A time of freedom, fun, exploration of the world and experiences before responsibility and the realities of life take over. +he bike in this need state symboli/es a rite of passage 8 the boy becomes a man 8 and is the ideal partner to explore spaces, both physically and emotively. -n the physical sense it is about mobility. !motionally it is about reaching places you*ve never been. Fiberation evokes the heady kick and excitement of youth, the exciting discovery of adulthood and the bike is integral as a source of pleasure. +here was a definite younger skew demographically, but the need also extended to the Ioung at >eart. 0or the young man, the motorbike is a symbol to flaunt his adult status (personified as a girlfriend for fun, romance . :ith older men it is about recapturing moments gone by, the wish for evergreen enduring youthfulness +he social values of the need state are therefore younger men in the golden period between boys and adult men. +he need has a strong peer context, typical to that life stage. +he need for affiliation, togetherness is also reflected in the relationship with the bike ' a buddy to share the fun with. :ith every brand boasting of an international collaboration, it was decided that this was not a differentiating or for that matter much of a motivating proposition any more. -nternational technology, is of course desirable, but there is also an emerging pride and comfort especially among the youth about being -ndian and -ndianness. 0unctional delivery needs to live up to the vibrant need for a trendy, cool experience 8 a combination of speed, power, pick up and trendy looks. Advanced technology to reflect the fast paced lifestyles of the emerging -ndian youth. +wo concepts were developed and tested on the same frame of reference.

And so the Apache #as )orn-- .See /igure 01

0igure 4

Its Now or Never!!!

5ymbolism 8 Fiving life in the moment. +argeting that part of every man that brings back the wonder years 8 of 0reedom, of -rresponsibility, of F-9-<.66 A sense of release, exploration and the anticipation that the world is waiting for you6 0or the newly initiated, the promise of discovering a new world, for the young at heart, the recapturing of a time gone by, a retreat to Fadland66 About living life to the fullest and making most of the moment 5ocial values 8 Enattached, young, popular men with lots of friends and popular among girls 0unctional promise 8 stylish looks, really cool accessories, power and pick up, lightness to reflect the mood, easy maintenance =eason to believe 8 Driven by those who young people identify with and look like (not celebrities . +he brand had to be the rage of the momentH something that everyone is talking about. +his was brought about by innovative co'sponsorship and partnership of events and promotions 8on Channel 9 and 7oto.P. Advertising 8 the tonality is irreverent, but inoffensively so. 0un, easygoing, defying conventions and conservatism without becoming rebellious or edgy. (5ee figure #

+he television commercial is set to a rap tune, but the words are in an -ndian language 8 in tune with the current youth*s desire for a blend of the international with the -ndian 8 a distinct flavor of modern -ndia. +he strongly evocative emotional proposition was also translated into trendy style and irresistible features. <otably, the much used propositions of reliability and mileage promises were absent. (5ee figure "$

+he seeming purposelessness about the functional promises reinforced the indulgent wonderful irresponsibility of the carefree, fun emotive positioning All activities and touch points were aligned with the symbolic positioning ' partnership promotion with a trendy retail outlet, sponsorship on 7oto.P sports. (5ee figure ""

-n all, Apache is a brand where all layers of needs and all marketing touch points were in perfect harmony and therefore the rewards, recognition and success inevitably had to follow

The Taste of Success .See figure 231

Apache has been voted as the bike of the year by almost all stakeholder groups. +he brand struck a deep chord with the Auto experts, the auto media and most importantly with the consumers. 5ome of the awards won includedC %ike of the year ($$) 8 ,verdrive %ike of the year ($$) 8 AutoCar %ike of the year ($$) 8 %5 7otoring %est design of the year ($$) 8 %%C +op .ear -ndigenous design of the year 8 ,verdri

A /inal Word
:ith increasing competition, the dialogue between the consumer and marketer grows in sophistication and the balance of power shifts to the consumer. 7arketing then has to shift from push to pull. 0rom selling and product focused marketing, the market moves to a need for brands that connect with consumer emotion. +he -ndian market &umpstarted from a world of controlled undersupply and in no time the consumer quickly evolved, perhaps even ahead of the -ndian marketer. +he -ndian ( wheeler market was waiting for brands like Apache that understood this and met

more than &ust the need for great mileage and reliability. Apache exemplifies bold decision making and a willingness to break away from the conventional way of doing things. +95 recogni/ed that the market had moved to a new level of consumeri/ation that demanded brand connections to be built at a deeper level. +hey decided to explore an alternative way of segmenting the market and commissioned needs based research. <eed5cope, through the use of a needs based model and an archetypal framework uncovered the needs landscape, identified the market essentials and the discriminating needs. +he underlying motivations were validated and quantified in terms of the commercial opportunity offered. %rands were mapped and measured on the same frame of reference and market gaps identified. +<5 partnered the client in bringing the segments to life, development of concepts and guidance to the advertising and design team. -t was not &ust about bold decision making and creating the right concept. +he execution and implementation remained true to the archetypal positioning and delivered the perfect tonality. Advertising created was completely different both anything +95 had done before and a complete break from the corporate image. +o ensure that the planners remained true to the archetype and did not give in to the temptation of resorting to a comfortable direction that had worked before, a principle of <,+ness was used to develop the advertising and marketing communication. Apache isJ Not doing stuff by himself, but with a group 8 to be different from Potency and to avoid the temptation of showing an all'man, rugged terrain bike that conquers elements and space Not with a girlfriend 8 to keep away from the hackneyed boy'girl story that all youth brands tell. -nstead, the bike was about having <, commitments Not aspirationally upwardly mobile, or about success at work 8 again a temptation of all new launches to ride the optimism of the G5hining -ndia* mood. +he bike was not about status or success ' instead the optimism was captured by a carefree attitude that enables living of life without worrying about tomorrow. Not about family and the responsibilities that come with family 8 to avoid temptation to capture not &ust the youth, but family people as well. Not overtly premium 8 although modernity and premiumness were conveyed through features K styling rather than by exclusivity. +he bike 5P,L! the archetype. And finally, there was reali/ation that to target Fiberation, the planners and brand managers had to feel and live the archetype. +hey had to break out of their %rahmin engineering, rooted in rationality mindset. +he team therefore had fun spending several 0riday afternoons observing young people MuestionsC What #ere the former characteristics of the market in India4 ,o# #as the market changing4 What roles did 5ualitati!e research and 5uantitati!e research fulfil4 What insights are dra#n from e&isting theory4

(&plain the concept of The 'eedScope System6 What does the marketing model and archetypal frame#ork What pro)lems #as T7S company facing in marketing its t#o #heelers4 What made them change their thinking What #ere the si& needs that #ere identified through 5uantitati!e research6 What #ere the characteristics of each4 What segment #as selected )y T7S and #hy -s cool a relevant concept for this product? Does Apache have the ingredients to be NcoolO and is the concept of consumer tribe relevant?