ACHIEVEMENTS

Marketing of New Motorcycle in Pakistan

Sales & Marketing of a new Motorcycle in Pakistani Market has always been a very difficult task. Despite the fact that 80% of the population is uneducated, Pakistani consumers have a peculiar taste and choice; usually they believe in a single established brand name for most products, for example, Television means SONY, Camera means YASHICA, Motorcycle means HONDA to them.

Selection of Brand Name

In light of the above-mentioned fact finding a brand name for new motorcycle was a critical issue. After some in-depth brain-storming under my leadership, our team came up with a name that would easily be accepted by masses and that would be able to replace the existing single brand – “HERO” . HERO has been a part of HONDA brand name in India and now widely known in Pakistan through satellite channel. After selection of brand name I took the lead in developing a complete marketing strategy for our new brand.

Product Choice Before

Before starting this project I made in depth study and survey of motorcycle Market/ Industry, the following facts were revealed: A. Market leader is HONDA. B. Most popular model is HONDA 70 C.C. 4 stroke motorcycle. C. Total consumption is about 100,000 motorcycle per annum. D. Market share of HONDA 70 C.C. is more than 60%. So, we decided to introduce a HONDA 70 C.C. compatible model with some added advantages. We targeted to capture 10% share of HONDA 70 C.C. i.e. 500 units per month. Our Breakeven was on 200 motorcycles per month sale.

Product Sourcing & Blending

Now the question was from where we can obtain technology and product on competitive prices. We have the following competitive sources Korea, Taiwan and China. I studied all three sources and found a common answer that they are not producing 70 C.C. motorcycles at present. But one or two Chinese Companies showed their interest so negotiation started. At last I successfully achieved my target through blending of different parts being used in 90 & 100 C.C. motorcycles with 70 C.C. engine. This blending / designing was made according to the Pakistani market requirement.

Pricing

Pricing of product was another crucial issue and required in depth study. It was observed that due to increasing trend in Motorcycle prices sales volume of motorcycles having a declining trend every year. So, we decided to fix our motorcycle price which suits to the pocket of consumer and also do not create undue pressure to achieve breakeven target.

Launch with a Big Bang

As we have to launch our product in a market in which Brand image and Brand loyalty are the key factors so we decided to come with a unique scheme which can win the motorcycle user’s mind and the force him to think about HERO motorcycle impatiently and be confident to own it. We announced the following scheme in local media which had magical effect upon General public and attracted the potential motorcycle buyers tremendously.

Become an owner of motorcycle just in Rs. 1000/

The details of Scheme is as under:

  • Company will provide 10 motorcycles in Rs. 1000/= each through lucky draw and a printed Application Form was attached with the Announcement which should be filled by the participants.
  • This Application Form along with Rs. 1000/= Pay order should be sent to the company.
  • There was a gap of three months between announcement of scheme and Draw i.e. if announcement is made on 1st January the draw has to take place on 30th March.
  • On 30th March draw was held and 10 bikes were distributed. A further announcement was made that those who want their money back may get their refunds within next 15 days. Otherwise they can enroll themselves for next draw to be held under the same scheme.

This scheme help us a lot for instant registration of our product and bra

Dealership Network

Our huge dealership network separately all over Pakistan

Innovative Ideas:

A. Unique HERO Guarantee Scheme:
In Pakistan, usually individual owners of motorcycle do not get insurance coverage of their motorcycle from Insurance companies. In view of this fact and in order to provide added attraction to our “ Brand of motorcycles”, we designed a unique scheme, against which Fateh Motors undertake guarantee that in case of theft or loss of motorcycle Fateh Motors will provide a Brand New motorcycle.

The scheme was implemented by issuing a “Guarantee Certificate” to individual purchaser / buyer guaranteeing against an additional payment of Rs 2,500/=. The company however had safeguarded his interest by obtaining comprehensive insurance coverage of such motorcycles on very competitive rates keeping the overall insurance cost limited within Rs. 2,500/=.

The added advantage and a great incentive of this scheme was in the shape of gaining confidence of the dealers who were very happy with this scheme as they were quite secured in respect of their investment installment in sale business of motorcycles. As incase of dis-appearance of the motorcycle owner or loss of the motorcycle, the dealer could easily get a brand new motorcycle as replacement from the company by registering such motorcycle under this scheme.

B. Corporate Colors:
Supply of motorcycle in corporate color to big companies / corporation like PTCL & PEPSI.

C. Hire Purchase:
We also offered our bikes through leasing first time in Pakistan

D. Anti Theft Device:
Introduction of Anti Theft Device in our motorcycle as due to snatching sales volume in big cites like Karachi & Lahore is decreasing.

Creation of Promotional Materials:

I am very fond of doing creating job such as designing Logo, Sign Boards, Slogans, Paper Folders, brochures, posters and advertising themes. The idea of first TVC was mine. Motorcycle is a moving thing but I created an idea that most of the time it must

be shown on the screen as stationary. Four stroke technology means less smoke and less sound, so I created one more slogan. We have feed back from Pakistan motorcycle market that people don’t trust in Chinese product. Although our motorcycle is from China we make a slogan it is true because the technology was provided by Japan to China about 15 years back.

We also introduced an Innovative idea for our dealers we did not call them authorised dealer, they are Our Authorised Hero.

International Market:

We also touched international market, which was usually ignored by the existing player in this business. We participated in one country exhibition in Bangladesh and successfully obtained first export order. Later we have a sole agency arrangement in Bangladesh. Africa was our second target. We have selected a business partners in Zimbabwe. He established Motorcycle business in Zimbabwe and in adjacent countries.