Chakan and the Chapri Conundrum: Repositioning KTM in India

KTM is one of those motorcycle manufacturers that has truly changed the way Indians experience performance. It is one of those "too good to be true" brands that gets everything right, yet it doesn't sell to its full potential because it's too hard for the audience to believe. They look for reasons not to engage with the brand, and the internet offers many. The fear of being labeled "chapri" is real, even after you've spent ~2L on-road for their entry-level motorcycle today.

As an automotive and brand management enthusiast, the KTM conundrum has intrigued me for years. Observing how a brand with such a rich legacy and potential can struggle with negative perceptions in India, the largest two-wheeler market, has driven my interest. My passion for understanding brand dynamics and transforming brand images fuels my desire to address KTM's low aspiration and perception problem.

Here's my attempt at articulating a comprehensive strategy to reposition KTM from "chapri" to "not so chapri" in India, while increasing its aspirational quotient.

To disassociate the 'chapri' and related perceptions from KTM, we need to first define the word "chapri."

In the Indian context generated by ChatGPT, the term "chapri" is often used as slang to describe someone who is considered cheap, low-class, or lacking in sophistication. It carries a derogatory connotation and is typically used to refer to individuals who exhibit behaviors, manners, or fashion sense that are perceived as tacky or uncultured. The term is commonly used in urban slang and can be offensive, creating negative associations for the owners and the brand itself.

Our goal is to move away from the "cheap, low-class, and lacking sophistication" associations and re-associate KTM with "sophisticated, upclass, premium" perceptions.

Now, let's tackle this one step at a time.

1. Market Research: This is a no-brainer. We need to understand the causes that led to KTM being associated with the term "chapri." Since their entry into India, KTM has become more accessible to many young, reckless, and so-called "chapri" bikers. Easier loans with minimal down payments have only strengthened this perception. The introduction of the 125 cc model, although it commands a premium over others in the segment, has made the brand more easily accessible. However, this is my opinion, and in-depth research is needed to get to the root of the issue. Additionally, we need to understand which of KTM's brand elements have suffered the most damage due to this perception.

2. Rebranding Strategy: Though it may seem far-fetched, the brand elements reinforcing the "chapri" perception need an overhaul. For instance, the iconic orange hue is a strong association, but if it constantly reminds potential customers of the "chapri" tag, it may not be as iconic, and we need to be okay with letting it go. This is not limited to color alone; prior research will provide more insights into the exact brand elements that have been eroded due to this perception, and they need to be tweaked to align with our premium positioning.

3. New(er) Brand Narratives: (KTM has a legacy of racing, adrenaline, and a premium edge.) Focusing on these brand associations to build a compelling premium narrative will help new audiences see KTM in a new light.

4. Product & Pricing Strategy: Truly disassociating the "chapri" perception from the KTM brand will require changes in how KTM approaches the Indian automobile industry. Limiting the current audience's access to the brand through pricing is a good start. Building a portfolio with larger bikes (after completing this overhaul exercise) will move the brand away from the current audience, thus adding more premium appeal.

5. Marketing & Communications: Engaging in positive PR and media relations to highlight the brand's achievements and legacy will prove fruitful. Amplifying these efforts through influencers and targeted advertising will ensure we hit the bull's eye.

6. Distribution and Availability: Limiting availability to fewer high-end dealerships will increase the brand's desirability and limit the undesired audience, which is exactly what we want to achieve.

7. Consistent Brand Experience: Overhauling the brand experience and ensuring all brand touchpoints deliver the same premium experience to customers will reinforce the new brand associations.

All the above steps are easier said than done, especially with KTM being a global brand, and Bajaj holding a 49.9% stake in its parent company. Each pointer requires deep pockets, coordination of many moving parts, and strategic-level decision-making. It's truly unfortunate to see a global brand associated with such a perception. With the midweight two-wheeler segment heating up, KTM's response to this challenge will define its future in India. As a motorcycler myself, I would love to see more KTMs on the road, afterall they revolutionized performance for Indian riders.

The views expressed are subjective and personal. They are not intended to reflect negatively on any brand.