Kawasaki Ninja 250R

Marketing Plan

Prepared by Somshekhar D Shivagunde ( Roll.No.353) PTMBA-I

Marketing Plan for Kawasaki Ninja 250R

1.0 Executive Summary

Bajaj Auto Ltd one of oldest and fast growing two wheeler manufacturing bikes
based in Pune. It plans to introduce Kawasaki Ninja 250R, called as Baby Ninja
from Kawasaki stable. The plan is to import the Ninja250R in Completed
Knocked down (CKD) form and it will be sold in the Bajaj probiking showrooms.
Initial target plan to sell around 1000 units of the Ninja 250R. This is true sporting
bikes in 250cc category that Indian bikes lovers were much awaiting for.

2.0 Table of Contents

a) Current Market situation.
b) Market opportunities and issue analysis with STEEPLE, SWOT.
c) Objectives.
d) Marketing Strategies.
e) Marketing Mix.
f) Profit & Loss.
g) Review and Control.
h) Marketing Organisation.
i) Contingency plans.

3.0 Current Market Situation.

STEEPLE
a) Social /Demographic- Today consumer in India is young, well educated,
inspiring, got getter attitudes. The gender unbiased social networkings, more
media road shows, are bringing the world closer to India. Customers are being
provided the choices which were deprived for long years. Customers are
demanding and so are their brand consciousnesses, technological
developments by the companies. Etc Different age groups, family size, gender
communities, classes are making the markets more diversified. Lifestyle
changes in the society in last decade or so as been so large that women more
and more prefer their own driving options.

b) Technology- Technology developments in the bikes with 2stoke to 4 strokes,

4 value engines, twin spark technologies, emission norms making it more and
more stringent on engine development and fossil fuel usage. Technology for
all the masses is helping more and more society makes use of it. Hybrid
vehicles are one of the excellent examples. Its well established R&D
constantly develops fitting, superior, & excellent products to meet the
customers & environment’s demands.
c) Environment/ Ecology- Given the green environment more and more stress
is put on developing eco friendly bikes. Stringent emission norms in US and
Europe it make it mandatory to have engines meeting the criteria’s.

d) Economy- India is second largest growing economy in the world at present

and growing at 8% annually. BRIC countries of which India is part are one of
the fastest growing economies. US and European economies are stagnant are
not encouraging for expanding business. But are good locations to scout for
potential weak acquisitions at cheap valuation given the economic downturn.
The direct tax, indirect tax & corporate tax structure is still very complex and
more rationalisation is required. VAT and GST rollout nationwide is expected
in few months this will help in procurements. Stimulus from the Indian
government in terms of cutting excise duty and service tax helped auto
industry to tide over the effects of global downturn. But the credit shortage
doing its job in spite of lowering of CRR, repo rates by RBI. Poor monsoons
are also a worry due to lowering of agriculture output putting at risk the
performance of the rural market. Rationalisation of import duties on the CKD
& SKD’s have helped to price the products competitively. Still import duty on
the TBU’s still high at 100%. If this is lowered the product lines of high end
bikes can be priced well and units targeting can be increased. Indian middle
class and the inspiring youth with high disposable income thanks to the
growth in our economy in last decade are the great potentials. Consumer
confidence index is stable in auto industry which had dropped a little. But due
to offering is lot of choices today customers can demand what they wish and
what suits their attitudes. Some dampeners like exit of consumer finance
companies from the market caused temporary sluggishness in the market due
to poor performance of two wheeler loan segment of these companies. Given
high rate of interest many potential buyers shy away.

e) Legal- Protecting the intellectual properties and infringement by competitors

is a problem issue. In home market as well foreign markets companies facing
such litigations.

f) Political- Polices for trading are conducive for growth, as such there are no
special grants or funds for encouraging the auto industry, but fiscal benefits
like sales tax holidays, excise benefits are provided by states where new plants
are commissioned. This helps in pricing the products competitively. Lobby on
home market for protecting the interest from unwarranted and unquestioning
competitors. In international markets where to protect the interest from
copycats lobbying with the local government is required on regular basis.
Even penetration into new marketing lobby is required. Since home market is
widely affected by conflicts with separatists, Maoists, naxals, terrorists etc
still there is insignificant impact on the auto industry. But Government’s
polices are in tune with the industry requirements and have brought balance
with foreign investment and local industry. With Government spending five
 complete years of its terms and come back of the popular Government it is
anticipated more consolidation of polices for the auto industry will take place
to make India as biggest two wheeler market and export hub for all segments
of two wheeler bikes. The promoter shareholders and the differences have
been pacified and more synergies have been brought to capitalise the holding
of major shareholders. Also the public & FII’s confidence in the management
is strong support.

g) Ethical- Doing business with ethics is one of the principles on which the
company stands code of conduct to protect its interest, shareholders, techno
partners and customers by adopting the transparent corporate governance.

4.0 Market Opportunity and Issue Analysis

a) Strengths- i) Kawasaki is world renowned bike manufacture with its bike

wining lot of GP motosport championships. Proven bike sold across Europe,
US, Asia Pacific, Africa, Latin America.
ii) Known for quality Japanese technology and manufacturer. Service and spares
will be done by Bajaj’s Pro-Biking service centres that have made a place for
themselves with performance bikes like Pulsar competing Honda, Yamaha and
Suzuki.
iii) Bajaj is trusted name in Indian auto industry with legacy of Hamara Bajaj
scooters and Pulsar bikes. Proven network of sales, service and spares.
iv) By entering the niche area of sport biking of 250cc segment it will able to
achieve leadership and affordable prices, current prices of Honda, Suzuki with
500cc and above bikes in India are around Rs.9-10 lacs. Ninja 250 R will
perfectly fill the vacuum between Rs.1.15 lacs and Rs.9 lacs. It also has more
space to launch more models in 250cc segment and above.
v) It can cash on the inspiration of youth who were waiting for the sports bike
which would have cost more if imported.

b) Weakness-

i) It is speculated that Ninja 250R is going to be priced around 1.85 lakhs but
Ninja 250R is priced at Rs. 2.69 lakhs (Ex-Showroom India) which is very high
and keep many prospective buyers away from buying this awesome bike.

ii) A comparison statement will exhibit what customer will pay more for
Kawasaki Ninja 250R and are they willing to pay for it will be question to answer
only after its performance.

New Karizma
Data Bajaj Pulsar 220 Yamaha R15 Ninja 250R
ZMR
Engine 4 Stroke 4 Stroke 4 Stroke 4 Stroke
Displacement223cc 220cc 149.8cc 249cc
 17.6 Bhp-7000 32.5 Bhp-11000
Max Power 21 Bhp-8500 rpm 17 Bhp-8500 rpm
rpm rpm
18.5 Nm-6000
Max Torque 19 Nm-7000 rpm 15 Nm-7500 rpm 22 Nm-8500 rpm
rpm
Gears 5 Speed 5 Speed 6 Speed 6 Speed
Cooling TypeLiquid Cooled Air & Oil Cooled Liquid Cooled Liquid Cooled
Top Speed 126 kmph 144 kmph 135 kmph 176 kmph
5.75 secs
0-60 kmph 3.70 secs NA 3.20 secs
(0-100km)
Brakes Discs Discs Discs Discs
Price 91000.00 71000.00 97000.00 269000.00

iii) Competitors are all well established bike manufacturers from Japan like
Honda, Suzuki, and Yamaha from Europe Ducati etc.

iv) Volumes will be low; to sustain sales consumer finance will be major issue if
finance at lower interest rates is not made available.
v) Any revision in import duties may sharply affect its pricing model.

c) Opportunities-
i) Localisation of the entire manufacturing will give it edge to price the bike still
aggressively below the current launch.
ii) It can make India as a bike hub for Kawasaki for sub 500 cc category.
iii) Also it can leverage its acquisition of KTM to launch more models in 250-
500cc category even if licensing arrangement doesn’t go along well.
iv) It can take more foreign markets under manufacturing and distribution of
Kawasaki bikes in south Asian & African markets where Kawasaki is not present
but Bajaj is present.

d) Threats-
i) Few launches are planned by Honda and Yamaha in 250cc segment which are
more of extension to their current 150cc model, which would drive away the
potential customers.
ii) It has to keep up with the development of new technologies to build better and
better bikes, need to invest in R&D sizeable this may put lot of strain on its
balance sheet if volumes don’t pick up.
iii) Any changes in Govt’ policy towards auto sector may be detrimental when
competing with global giants on global market basis.
iv) Auto giants with deep pockets may cause pressure by their aggressive
competition and superior technology.

5.0 Objectives
To become the largest manufacture of two wheeler bikes in the world.
6.0 Marketing Strategies
STPD
a) Segmentation- Kawasaki Ninja 250R will be initially launched in metros
New Delhi, Bangalore, Mumbai, Pune, Kolkata, Chandigarh, Ahmadabad,
Hyderabad, Chennai and other fast growing non metros with youth appeal and
spending capacities. This bike is a performance bike and sports loving youths
are its targeted segment with good disposable income. Cities with good road
and ride quality, sports track etc.

b) Targeting – Youth aged between 20-30 and with inspiring appeal towards
driving sports bike.

c) Positioning- Kawasaki Japan’s true premium sports biking experience in 250

cc segment. Will be leader in the segment with more localisation of the
product with lowering of the prices.

d) Differentiation – In terms of looks & styling, 250 cc, Ebony black and lime
green colour, price and a true sporting bike experience. Japanese’s
technology, Kawasaki’s brand image been loved at the GP motosports.

7.0 Marketing Mix- Action programme-4P’s

a) Price - the Ninja 250 R is aggressively priced at Rs.2,69,000.00 ex-showroom

pune given it is totally imported in CKD and assembled in Chakan plant. More
localisation over the period and demand will help in pricing it lower. The bike can
be booked by paying Rs.40,000.0 initially 1000 units are targeted for sales.

Ex-Showroom Price of Ninja 250R in Other Cities:

New Delhi - 2,69,970.00

Chennai - 2,69,580.00

Consumer finance at 8.0% interest on Rs.67,500.0 down payment and option of

24 & 36 months of repayment.

b) Product

i) Looks & Style

Ninja 250R is the best looking 250cc sports bike in its segment. Though there is
no direct competition to Ninja 250R as it is the only proper 250cc bike on sale in
India. It comes with complete fairing with large plastic and steel parts. Ninja
250R features a very aggressive look when viewed head-on, as it features dual-
lamp headlamp. The rear view mirrors are mounted the smart fairing which is
very well integrated in line with the overall look of the bike.
ii) Shades Available In Ninja 250R

Ninja 250R is available in 2 shades - Lime Green and Ebony Black.

iii) Instrument Cluster & Features

The instrument cluster of Ninja 250R disappoints a bit as it comes in analogue

format. Speedometer, odometer, trip meter and tachometer are in analogue mode

iv) Engine & Transmission

European Spec Kawasaki Ninja 250R is powered by a 249cc liquid cooled,

parallel twin, DOHC petrol engine which develops maximum power of 32 Bhp at
11000 rpm with maximum torque of 22 Nm at 8200 rpm. The Ninja 250R
features a six-speed transmission that has been revised for smoother shifting, and
is mated to a more durable clutch.

v) Performance Figures of Kawasaki Ninja 250R:

1) 0-100km/h: 5.75 sec

2) Top speed: 176km/h
3) Fuel economy: 42.5 Kmpl - Claimed By Bajaj India

vi) Chassis, Suspension & Brakes

On the chassis front, Ninja 250R features a new diamond-type frame constructed
of high tensile steel provides a steeper steering head rake angle, which results in
an unchanged wheelbase when mated with a longer swing arm. The fork is larger
and stiffer, with revised settings in comparison to 2008 model of Ninja 250R.

vii) Service

World class service and spares at Bajaj Pro-biking service centres.

c) Place
Ninja 250R will be sold through speciality sales showroom of Bajaj Pro-Biking
with 30 current showrooms. Training of the riding skills for sports on Ninja 250R
will be added features of the pro-biking showrooms. All metros and non metros
with good youth appeal and high disposable income will be the launched with
Ninja 250R.

b) Promotion.
Kawasaki Ninja 250R will be promoted pan India with advertising with road
shows, youth events at prominent universities, youth connect forums, specialised
auto shows on TV and auto magazines will be used as media coverage. Pro-biking
 areas will be one of the exhibition places where bike lovers can have test rides,
give feedbacks, buy and service these bikes.

8.0 Projected Profit and Loss

Company is starting the operation with modest start to test the market with 1000
units. It needs to invest on an assembly line which it would do so from its existing
lines hence no fresh investment is envisaged. Only brand promotion,
strengthening of its Pro-Biking sales and service points will take some
investment.

It is budgeted to spend Rs.1000 lacs towards above investments. Sales of 1000

bikes will earn an amount of Rs.2690 lacs. The procurement of CKD’s from
Thailand & Japan plants the cost per bike comes to about Rs.2,10,000.00, custom
duty at Rs.21,000. Hence total cost is 2,31,000.0. The contribution works out to
be Rs.38,000.0 with dealer margin of Rs.15000 balance margin is of Rs.23,000.0
which for the time being will be used to recover the initial investments. But to
break even in the CKD model it will target 2000-3000 units a year.