MARKET RESEARCH ON ELECTRO – HYDRAULIC

BRAKE SYSTEM FOR BIKES

PRESENTED BY:

M.Palnivelrajan

15PH06

GERMAN INDIAN MANAGEMENT STUDIES - MBA

SUBMITTED TO:

Prof. Dr. Stefan Wengler

Principles of marketing,

HOF University.

RESEARCH OBJECTIVE

The main objective is to develop a marketing plan for the

product idea on Electro – Hydraulic brake system (EHB), a

brake system for bikes, which is currently in design and

development stage.

Identifying the customer needs.

Identifying the target customer, relevant market, market

segments and to perform future competitor analysis for the

EHB brake system

PAGE 2

RESEARCH PROBLEM

Establishing the market against the existing competitors in

braking field, even though EHB is monopoly by the technology,

existing braking system (ABS braking system) are well

recognized by the customers as a safer existing technology and

currently recommended by government for bikes.

Identifying the end user by market segmentation and to satisfying

the end users by creating proper supply , service and pricing for

the new braking product (EHB braking system) in the competitive

market.

PAGE 3

INTRODUCTION TO PRODUCT

Electro hydraulic brake system (EHB) for bikes works on the

principle of self arresting, where all braking forces are

neutralized, by its working action.

The EHB brake system is a cost effective, technically

understandable to all customers and technically efficient brake

system when compared to existing conventional, disc and ABS

braking system for bikes.

The EHB brake systems is designed to avoid skidding due to

wheel arrest or on skid surface except oil surface while brake

is applied under emergency conditions.

PAGE 4

DRUM BRAKE - Convention brake

system in bikes

DISC BRAKE - initial update in braking

technology

ABS BRAKE SYSTEM - hi-tech

technology in brake system with sensors

Self arresting mechanism

combined effect of disc and

drum brake

EXISTING BRAKE

TECHNOLOGY

NEW EHB BRAKE

TECHNOLOGY

ADVANCED When

compared to

ABS system

with sensor

free circuit

design

EHB design drafted in Catia

PAGE 5

PRODUCT COMPARISON

OPTIMIZED

DESIGN

AFFORDABLE

PRICE RANGE

TECHNICALLY

ADVANCED

USER FRINDLY

SAFETY

PAGE 6

CUSTOMER NEEDS

USER FRIENDLY DESIGN AFFORDABLE PRICE RANGE

0

5

10

15

20

25

30

35

40

YES NO

In what price range do you expect EHB

brake system which is technically

advanced than ABS brake system with

alloy wheel kit.

BASED ON SURVEY

Do you prefer a braking system, if It works

effectively as much as the ABS system in a

less sensor equipped circuit (its function

only by the mechanical circuit with primary

sensors)?

35%

58%

7%

LESS THAN RS 8000

BETWEEN RS 8000 TO 10000

MORE THAN RS 10000

PAGE 7

CUSTOMER NEEDS

SAFTEY TECHNICALLY ADVANCED

What you expect as an improvement in

EHB brake design , if EHB brake

establishes itself as a competitor for the

existing ABS system?

BASED ON SURVEY

Do you prefer to use a brake system

which is cost efficient and but technically

less advanced then existing ABS ?

73%

10%

17% Technically advanced and less expensive

Technically advanced and expensive

Only it should be cost efficient with same technology as ABS

0

5

10

15

20

25

30

YES NO

PAGE 8

CUSTOMER NEEDS

Relevant market

Key market indicators

Market segments

PAGE 9

MARKET ANALYSIS

COMPITATOR TECHNOLOGY (ABS) MARKET IN 2013

Functionality

Technology

Market

segments

low stopping distance.

Sensor free circuit.

Internal braking system

( Assembled inside rear hub )

Wheel skidding resistance.

• Electro – hydraulic system

•Self arresting

•Pedal + drum brake effect.

• Sports bikes

• Commercial high speed bikes.

(existing users and bike

manufactures)

PAGE 10

RELEVANT MARKET

KE

Y

MA

RK

ET

IN

DIC

AT

OR

S

MARKET

VOLUME

MARKET

POTENTIAL

MARKET

SHARE

MARKET

GROWTH

MONOPOLY – New entry to customer market

Market of EHB brakes system will be equal to

level of customers acceptability of the self

arresting technology in commercial usage.

ABS – Anti lock braking system and Drum brake

MONOPOLY – New entry to customer market

PAGE 11

KEY MARKET INDICATORS

( planning to introduce in the market as a replacement for the

exiting brake system in high speed bike (above 160 cc ) segments.

Yamaha

Bajaj

Mahindra

lucas TVS

Honda

Ktm Duke etc

PAGE 12

MARKET SEGMANTATION

Existing high speed bike users.

High speed bike manufactures.

Porters 5 forces

Benchmark

SWOT analysis

PAGE 13

COMPETITOR ANALYSIS

COMPETITION WITH THE

INDUSTRY

( Monopoly by innovative technology)

LOW

POTENTIAL ENTRANTS

( Monopoly)

SUBSTITUTES

( ABS brake and Drum brake )

CU

ST

OM

ER

S

(Exis

ting b

ike o

wn

ers

and b

ike

manufa

ctu

ring c

om

pany)

SU

PP

LIE

RS

(Raw

mate

rials

)

H

I

G

H

HIGH

PAGE 14

PORTERS 5 FORCES

L

O

W

HIGH

Threat of new entrants

Bargaining

power of

Suppliers

Bargaining

power of

customers

Threats of

substitutes

INTENSITY OF RIVALRY

INT

EN

SIT

Y O

F R

IVA

LR

Y

PRODUCT

DIFFERENCE

INDUSTRIAL

GROWTH

PAGE 15

PORTERS 5 FORCES

monopoly – The self arresting technology is a

new for commercial use in bike braking system.

Industrial growth is mainly depend on how EHB

establish itself initially in the market ( i.e.) by

satisfying all the end-users

BRAND IDENTITY Even though entering the market as a monopoly,

creating a brand identity against existing ABS

technology is a challenge for EHB brakes

BARRIERS OF ENTRANTS

BA

RR

IER

S O

F E

NT

RA

NT

S

Higher initial capital is required .

Need to satisfy the Government policies.

Establishing the organized distribution channel

to reach market on time to secure a place for the

EHB brake system

Getting employee acquire proper skills on new

technology.

MAN POWER &

DISTRIBURION

INITIAL CAPITAL

& REGUALTIONS

PAGE 16

PORTERS 5 FORCES

END USER

(customer)

Satisfying the end user with the new technology.

# Bike manufacture.

Switching end user from existing product.

# Existing high speed bike users.

(ABS or Conventional braking system )

Can market the product to end-users in a buy back or exchange offers for old

alloy wheel kit with on usage brake pads or drums to occupy the market initially.

DETERMINANTS OF SUBSTITUTES THREAT

With this self arresting technology EHB

brake system will be monopoly in the market ,

so success of the product is based on quality,

service and cost of the product.

DE

TE

RM

INA

NT

S O

F S

UB

ST

ITU

TE

S

TH

RE

AT

S

EXISTING

SUBSTITUTES

COST

QUALITY

PAGE 17

PORTERS 5 FORCES

DETERMINANTS OF BUYERS POWER

Switching cost for customers ( existing high

speed bike owners ) from existing brake system is

high.

Manufacturing cost of EHB brake system is low.

Efficiency of EHB is high.

Monopoly by technology but on braking

segment main substitutes for EHB brake system is

ABS braking system.

DE

TE

RM

INA

NT

S O

F B

UY

ER

S

PO

WE

R

BUYER

SWITCHING COST

PRICE

SENSITIVITY

SUBSTITUES

AVAILABLE

PAGE 18

PORTERS 5 FORCES

DETERMINANTS OF SUPPLIERS POWER

DE

TE

RM

INA

NT

S O

F

SU

PP

LIE

RS

PO

WE

R

PAGE 19

PORTERS 5 FORCES

THREAT OF FORWARD

INTEGRATION

Refers to a supplier choosing to become a

competitor of yours

DIFFERENTIATION OF

INPUTS Identify the supplier whose service is unique .

VOLUME TO THE

SUPPLIER Refers to the supplier’s capacity and the volume

that you purchase.

IMPACT OF INPUTS

ON COST Supplier bargaining power rises

PAGE 20

SWOT ANALYSIS

Monopoly in the market – in

Self arresting technology.

Technically advanced and

reliable than other brake system

available in market.

S

T

R

E

N

G

T

H

EHB brakes are user friendly

and safer.

Low price – Compared to the

other products in brake system.

Open market .

O

P

P

O

R

T

U

N

I

T

Y

Initial investment is high.

(setting up cost )

Switching customers from

existing functional product ( ABS

or drum brake ) is difficult.

W

E

A

K

N

E

S

S

Technology can be redesigned

by the market competitors in

future.

Initial capital .

Satisfying the end user with

new technology due to the

impact of ABS in current market.

T

H

R

E

A

T

EXTERNAL ENVIRONMENT

INTERNAL ENVIRONMENT

PAGE 21

BENCHMARKING

New to the market.

Monopoly by its technology in the braking segment.

PAGE 22

COST ESTIMATION

Cost of alloy wheel( Manufacturing cost + material cost)

= 5500 INR

Cost of per metal disc ( Pedal disc)

= 333 INR

( Volume = 0.0047 M3 and Total weight = 37 Kg)

(OD=1000MM,ID= 400MM & THICKNESS = 6MM & Steel 1kg = 45 INR)

Total material cost for 3 pedal disc

= 1000 INR

Cost of rubber strips for 3 pedals disc

= 300 INR

Cost of hydraulic actuators

= 1500 INR

( Double slot )

Hydraulic circuits

= 1000 INR

(Hose and circuit )

Others = 1000 INR

TOTAL MANUFACUTRING COST

= 10300 INR

PAGE 23

THANK YOU