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Which Indian consumer personality traits should AE cater to? Why?

Which Indian consumer personality traits should AE cater to? Why?

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Which Indian consumer personality traits should AE cater to? Why?

 
THE E-TWO-WHEELER MARKET IN INDIA India was the world's largest market for scooters and motorcycles. For the fiscal year (FY) ending March 31, 2018, annual domestic sales of scooters and motorcycles exceeded 19 million units-six times the number of cars sold over the same period." However, between April 2018 and March 2019 (FY 2019), only 760,000 EVs were sold in India, and the EV market was dominated by three-wheelers (83 per cent); e-two-wheelers comprised only 16.4 per cent of the market, representing just 124,640 unitsa tiny fraction of the 21 million two-wheelers sold in India during the this period." However, despite these low sales numbers, the Indian e-scooter and e-motorcycle (e-bike) market was expected to reach $698.3 million²0 by 2025-a compound annual growih rate of 36.3 per cent during the forecast period. Planned government initiatives to promote EVs and implement stringent emission regulations were the major driving factors for this projected growth. In addition, the launch of several new e-scooters," as well as increasing numbers of female two-wheeler riders, especially in Tier 2 and Tier 3 cities, were also contributing to increased demands for e-scooters. In May 2019, India had a larger market for e-scooters than for e-bikes, chiefly because e-scooters were cheaper and came in a wider range of models." E-scooters were also much cheaper than electric cars, since they were lighter and thus required smaller (and therefore cheaper) batteries. E-scooters also took much less time to charge than electric cars, and they couid often use existing plug points in residential homes. In fact, e-scooters were priced comparably with petrol-powered scooters.4 Research on Indian purchasing behaviours had found that social class, reference groups, and opinion leaders were very important and had much more influence, due to higher group conformity tendencies. Indian consumers were also very value-conscious and were exceptionally sensitive to pricing. In addition, successful Indian marketing strategies required paying attention to local cultural nuances." India's government wanted to use the EV mandate rollout to turn India into a manufacturing base for EVs and EV batteries. The government sought to avcid entering the market too late and thereby allowing China to emerge as the global manufacturing hub for those products, as had happened for electronic goods and mobile phones. The government think tank, NA, had suggested offering a variety of concessions to domestic EV battery manufacturers, including inceme tax incentives and a customs duty matrix.26 To facilitate the dissemination of EVs in India and address the lack of charging points across the country, the government also wanted to establish a framework for enormous battery-manufacturing and charging infrastructures, the latter of which would also include the presence of petrol pumps at electric charging points." ATHER E-SCOOTER COMPETITORS Hero Electric Hero Electric (HE), part of the Hero Group, was a pioneer in the Indian e-two-wheeler industry and had become ene of the world's leading two-wheeler manufacturers. HE had begun manufacturing e-bikes and India's first e-scooters in 2007, at a state-of-the-art manufacturing facility near the northern Indian city of Ludhiana. By 2019, HE had expanded to 325 cities across India with 601 dealers." Its e-bike pricing started at 39,550 and went up to 786,490 for its top model, the Hero Electric Photon 48V, but neither had smart functions. As of July 2019, HE offered seven models of e-two-wheelers in India, of which the most popular were the Optima Li (757,900), the Flash LI (752,974), and the Flash LA (739,550); they also planned to launch five new models in 2019–20.29
Transcribed Image Text:THE E-TWO-WHEELER MARKET IN INDIA India was the world's largest market for scooters and motorcycles. For the fiscal year (FY) ending March 31, 2018, annual domestic sales of scooters and motorcycles exceeded 19 million units-six times the number of cars sold over the same period." However, between April 2018 and March 2019 (FY 2019), only 760,000 EVs were sold in India, and the EV market was dominated by three-wheelers (83 per cent); e-two-wheelers comprised only 16.4 per cent of the market, representing just 124,640 unitsa tiny fraction of the 21 million two-wheelers sold in India during the this period." However, despite these low sales numbers, the Indian e-scooter and e-motorcycle (e-bike) market was expected to reach $698.3 million²0 by 2025-a compound annual growih rate of 36.3 per cent during the forecast period. Planned government initiatives to promote EVs and implement stringent emission regulations were the major driving factors for this projected growth. In addition, the launch of several new e-scooters," as well as increasing numbers of female two-wheeler riders, especially in Tier 2 and Tier 3 cities, were also contributing to increased demands for e-scooters. In May 2019, India had a larger market for e-scooters than for e-bikes, chiefly because e-scooters were cheaper and came in a wider range of models." E-scooters were also much cheaper than electric cars, since they were lighter and thus required smaller (and therefore cheaper) batteries. E-scooters also took much less time to charge than electric cars, and they couid often use existing plug points in residential homes. In fact, e-scooters were priced comparably with petrol-powered scooters.4 Research on Indian purchasing behaviours had found that social class, reference groups, and opinion leaders were very important and had much more influence, due to higher group conformity tendencies. Indian consumers were also very value-conscious and were exceptionally sensitive to pricing. In addition, successful Indian marketing strategies required paying attention to local cultural nuances." India's government wanted to use the EV mandate rollout to turn India into a manufacturing base for EVs and EV batteries. The government sought to avcid entering the market too late and thereby allowing China to emerge as the global manufacturing hub for those products, as had happened for electronic goods and mobile phones. The government think tank, NA, had suggested offering a variety of concessions to domestic EV battery manufacturers, including inceme tax incentives and a customs duty matrix.26 To facilitate the dissemination of EVs in India and address the lack of charging points across the country, the government also wanted to establish a framework for enormous battery-manufacturing and charging infrastructures, the latter of which would also include the presence of petrol pumps at electric charging points." ATHER E-SCOOTER COMPETITORS Hero Electric Hero Electric (HE), part of the Hero Group, was a pioneer in the Indian e-two-wheeler industry and had become ene of the world's leading two-wheeler manufacturers. HE had begun manufacturing e-bikes and India's first e-scooters in 2007, at a state-of-the-art manufacturing facility near the northern Indian city of Ludhiana. By 2019, HE had expanded to 325 cities across India with 601 dealers." Its e-bike pricing started at 39,550 and went up to 786,490 for its top model, the Hero Electric Photon 48V, but neither had smart functions. As of July 2019, HE offered seven models of e-two-wheelers in India, of which the most popular were the Optima Li (757,900), the Flash LI (752,974), and the Flash LA (739,550); they also planned to launch five new models in 2019–20.29
Revolt Intellicorp Led by Rahul Sharma, the co-founder of mobile device-maker Micromax, Revolt Inteilicorp (Rf) had a 75 billion manufacturing facility with an annual capacity of 120,000 units in the northern Indian town of Manesar. RI had a 130-member research and development team and had unveiled its first smart e-bike, the RV400, in July 2019; however, the bike's critical components, such as its battery cells and motor, had been imported. 30 It delivered a range of 156 km on a single charge and was expected to be priced around 100,000. To address consumer concerns over range anxiety, RI also planned to set up swappabie battery stations every 3-5 km and to deliver batteries to customers to address consumer concerns over range anxiety." 22KYMCO 22KYMCO (22K) was a joint venture between India's 22Motors and Taiwan's Kwang Yang Motor Company (KYMCO), the latter of which had a presence in 102 countries." In June 2019, 22K had plans to set up a manufacturing facility with an annual production capacity of 200,00 units in Bhiwadi, Rajasthan, a northern Indian state. Although the company had previously sold its e-two-wheeler, the iFlow, at an ex- showroom price of 790,000 in Delhi," it planned to start retaiiing the iFlow in September 2019, first through 14 dealerships across six Indian cities (New Delhi, Pune, Bengaluru, Kolkata, Ahmedabad, and Hyderabad), and then, over the next three years, via 300 dealerships that it planned to set up across India. However, the iFlow offered a driving range of only 40 km and could achieve a top speed of only 60 kmph. It was sold without batteries, which buyers instead leased from KYMCO, effectively saving customers the hassle of dealing with limited battery lifespans.* Okinawa Autotech Okinawa Autotech (OA), a 100 per cent Indian e-two-wheeler manufacturing company, was established by Jeetender and Rupali Sharma in 2015 with the mission of creating e-two-wheelers for a sustainable future. OA was headquartered in the northern Indian city of Gurugram, while its manufacturing facility was in Bhiwadi, Rajasthan. OA sought "to bring pioneering technology and the cutting edge designs for the endearing Indian consumer."35 OA offered four models of e-scooters through 186 OA dealers in 147 cities across India. Its e-scooter pricing started at 739,990 and ranged up to 116,000 for its smart e-scooter, the Okinawa i-Praise. The most popular models in its e-scooter lineup included Raise, Praise, and Ridge.36 Tork Motors Tork Motors (TM) was based in the western Indian city of Pune. The firm had done extensive research and development work for seven years prior to manufacturing India's first smart e-bike, the T6X, which was priced at 125,000 and was powered from a lithium-ion battery (LiB) stack. Its top speed was 100 kmph and its battery pack could last for 100 km on a full charge. The T6X included various smart features, such as an on-board navigation system, cloud connectivity, and a fully digital display, as well as many safety features, such as an anti-lock braking system and an anti-theft system. The company also planned to set up several charging stations to enhance India's EV infrastructure.7
Transcribed Image Text:Revolt Intellicorp Led by Rahul Sharma, the co-founder of mobile device-maker Micromax, Revolt Inteilicorp (Rf) had a 75 billion manufacturing facility with an annual capacity of 120,000 units in the northern Indian town of Manesar. RI had a 130-member research and development team and had unveiled its first smart e-bike, the RV400, in July 2019; however, the bike's critical components, such as its battery cells and motor, had been imported. 30 It delivered a range of 156 km on a single charge and was expected to be priced around 100,000. To address consumer concerns over range anxiety, RI also planned to set up swappabie battery stations every 3-5 km and to deliver batteries to customers to address consumer concerns over range anxiety." 22KYMCO 22KYMCO (22K) was a joint venture between India's 22Motors and Taiwan's Kwang Yang Motor Company (KYMCO), the latter of which had a presence in 102 countries." In June 2019, 22K had plans to set up a manufacturing facility with an annual production capacity of 200,00 units in Bhiwadi, Rajasthan, a northern Indian state. Although the company had previously sold its e-two-wheeler, the iFlow, at an ex- showroom price of 790,000 in Delhi," it planned to start retaiiing the iFlow in September 2019, first through 14 dealerships across six Indian cities (New Delhi, Pune, Bengaluru, Kolkata, Ahmedabad, and Hyderabad), and then, over the next three years, via 300 dealerships that it planned to set up across India. However, the iFlow offered a driving range of only 40 km and could achieve a top speed of only 60 kmph. It was sold without batteries, which buyers instead leased from KYMCO, effectively saving customers the hassle of dealing with limited battery lifespans.* Okinawa Autotech Okinawa Autotech (OA), a 100 per cent Indian e-two-wheeler manufacturing company, was established by Jeetender and Rupali Sharma in 2015 with the mission of creating e-two-wheelers for a sustainable future. OA was headquartered in the northern Indian city of Gurugram, while its manufacturing facility was in Bhiwadi, Rajasthan. OA sought "to bring pioneering technology and the cutting edge designs for the endearing Indian consumer."35 OA offered four models of e-scooters through 186 OA dealers in 147 cities across India. Its e-scooter pricing started at 739,990 and ranged up to 116,000 for its smart e-scooter, the Okinawa i-Praise. The most popular models in its e-scooter lineup included Raise, Praise, and Ridge.36 Tork Motors Tork Motors (TM) was based in the western Indian city of Pune. The firm had done extensive research and development work for seven years prior to manufacturing India's first smart e-bike, the T6X, which was priced at 125,000 and was powered from a lithium-ion battery (LiB) stack. Its top speed was 100 kmph and its battery pack could last for 100 km on a full charge. The T6X included various smart features, such as an on-board navigation system, cloud connectivity, and a fully digital display, as well as many safety features, such as an anti-lock braking system and an anti-theft system. The company also planned to set up several charging stations to enhance India's EV infrastructure.7
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