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Contents

Situational Analysis ........................................................................................................................ 1

Market Summary: ....................................................................................................................... 1

Market Trend: ............................................................................................................................. 2

Market Growth: ........................................................................................................................... 2

Market Demography: .................................................................................................................. 2

Market Need Identification ......................................................................................................... 3

Analyzing Environment .................................................................................................................. 3

Analyzing Competition ................................................................................................................... 4

Marketing Strategy and Objectives ........................................................................................ 5

Segmentation and Targeting: ...................................................................................................... 5

Positioning: ................................................................................................................................. 5

Market ing Strate gy: ................................................................................................................ 6

Marketing Objective: .................................................................................................................. 7

Financial Objectives: .................................................................................................................. 8

Tactical Marketing .......................................................................................................................... 8

Promotion .................................................................................................................................... 8

Distribution: .............................................................................................................................. 10

Pricing: ...................................................................................................................................... 11

Budget, Performance and Implementation ................................................................................... 13

Marketing Budget: .................................................................................................................... 13

Additional Considerations: ....................................................................................................... 14

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Situational Analysis

Product: The unique selling point of the Eco-Mobikes (two wheelers) is the low cost

environment friendly operation. Eco-Mobikes do not require petrol as they run on rechargeable

dry batteries (mentioned as dry battery/battery in the rest of the report). The result is that there is

zero carbon emission and zero engine sound. The combination of a dry battery, a motor and a

controller replaces both the petrol and the engine used in the conventional petrol run two-

wheelers. This makes Eco-Mobike not only economical and eco friendly but also energy efficient

and an easy to maintain vehicle. The battery of the vehicle needs to be charged from any

available power connection (just like a laptop or a cell phone) for the tyre to roll on the road.

Once its fully charged it can go up to 65Kmph depending upon the model. Eco-Mobikes also

dont have a gear box or a clutch mechanism which keeps the maintenance cost and requirement

low unlike petrol vehicles.

R3D plans to launch 3 different variants of the Eco-Mobikes for the daily commuters to provide

them a variety of choices while making a purchase. Variant details can be found in the Annexure

1 of the report.

Market Summary:

The current market has several players which are serving the two wheeler industry through many

models and variants. At present, the major players that are dominating the two-wheeler industry

in Gujarat are Honda, Hero Motor Corps, TVS and Bajaj in the two-wheeler segment in IC

Engines (Internal combustion engine). The two wheeler segment has shown a positive growth

over the years however the market share of scooters has declined over the period. Also the

demand for less than 100CC scooters has declined and there has been a positive growth in case

of greater than 100CC which includes Activa, Aviator and Duro. In case of electric bike segment

the major players operating are Yo Bikes, Hero Electic and BSA. With Yo Bikes having the

largest market share among them followed by Hero Electric. Also there has been positive growth

in the e-bike segment during the past 3-4 years which prompted even TVS to chart out plans for

restarting production of e-bikes. Thus we can say that the market of e-bikes is expanding.

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Market Trend:

With the ever-evolving technology and demands of the market in the country, the automobile

industry has come up with improved products regularly to meet the needs, wants and demand of

the market. The product life cycles have become shorter over the years and new variants are

expected every year both in the two-wheeler and the four-wheeler market. Gradually due to

increase in the urban population and growth in the size of cities more and more people needed a

cost effective mode of transportation which could save their time and help cover longer distances

comfortably. Public transportation was not (or is still not) well developed which was one of the

reasons of the boom in the growth of two wheelers industry. Two wheelers which largely

targeted males shifted their focus to female potential in the country and brought with it the

launch of gearless two-wheelers in the form of TVS Scooty, Kinetic Honda and Bajaj Sunny.

Over the years, as the fuel prices have increased significantly it has put the middle class segment

under undue pressure. New players have come up with ground breaking technologies and

innovative products which promise to ease up this undue pressure on the middle class by

providing a permanent substitute to petrol based two wheelers in the form of battery operated

zero emission bikes. Growing concerns about the environment has increased the need for these

kinds of eco-friendly two-wheelers. Many players like Yo Bikes, Hero and TVS are fulfilling

this need at present.

Market Growth:

The GDP per capita of the public is growing and so is their buying capacity. It is going to make

purchasing two wheelers more affordable as most of the population still belong to the middle

class segment in the country. The capacity utilization of present OEMs in increasing at a healthy

rate annually which shows that the market is growing. Refer to Annexure 2.

Market Demography:

Top 13 districts are selected which have the highest population in Gujarat. Well focus on all

those districts which meet our density criteria and urbanization percentage of more than 30%.

Urban areas have better road conditions, electricity supply, and market of complementary parts.

Moreover, the Eco-Mobike will be more efficiently used in urban areas as more women belong

to the working class (which is our target customers), income level is higher, and people are more

dependent on machines for convenience. We are launching our product in all districts where the

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literacy rate is more than 65 percent and which meets the above mentioned two criteria. Also

areas with higher literacy rate will have more school and colleges and therefore more people will

be aware of the status of the ecological environment, implications on it because of modernization

and reasons to sustain it. More people would be subscribed to newspapers, magazines and

internet services which will be used by us as modes of creating awareness amongst the public.

We have selected the districts which have the largest number of working population. Working

class people commute at least five days a week to their workplace.

Market Need Identification:

After doing surveys and face to face interviews, we found that majority of the respondents spend

more than Rs 100 on petrol, travel less than 80 Km in a day and drive at an average speed of 45

Km/hrs. All these requirements are easily met by our product and will outperform others in

aspects of speed, power and charge time. We also found that price, mileage, speed and

appearance of the vehicle dominates the purchasing decision of a typical customer based on

which we have designed Eco-Mobikes which offer better mileage, good speed and an attractive

appearance and value for money proposition. Another thing that we came across during our

surveys is that most of the respondents know about features like environment friendly, battery

power but they were unaware about other key benefits like better mileage and low maintenance.

Also, the respondents are skeptical about the battery powered technology which indicates that we

need to design our advertising and promotion campaign in such a manner that it addresses these

issues effectively.

Analyzing Environment

Demographic factors- Districts like Surat, Ahmedabad, Vadodara etc. have a very high density

of population and also have substantial number of working population and college students.

Natural environment- Growing global concern for environment and international campaign

against using fossil fuel and tremendous increase in oil prices in recent past compels the

consumers for vehicles whose running cost is cheaper and which run on electricity and CNG.

Legal Factors- Legal rules regarding license from different departments like electricity, water

and environment are relaxed in Gujarat. Easy land availability and presence of numerous SEZs

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boost the moral of new entrants. Gujarat government in its 2012-13 budget has announced to

lower the VAT imposed on Electric Vehicle from 15 % to 5% also reflect the support of

government in promoting eco friendly vehicles/products.

Economic factors-High net purchasing power of working urban man in Gujarat lead to higher

demand for two wheelers. With greater economic freedom and busyness in schedule women also

prefer to have their own vehicle.

Technology- There is enough scope for Innovation in the market. Innovations are in the

direction of fuel efficiency, environment friendliness, comfort and many more.

Industry sectorBangalore based Eko vehicles; Gujarat based Electrotherm were pioneers in

electric bike business in India. Then UK based Ultra Motors Ltd., India based Hero (a Hero

motor group company), Avon Cycles, Lectrix Motors Ltd., Ampere Vehicles Pvt. Ltd., BSA

Motors and Ampere vehicle Pvt. ltd launched their electric bikes. However, the industry is at the

nascent stage and there is a huge potential, which is hitherto unexplored.

Human resource sector- As our organization is more technology oriented, personnel ratio of

skilled to unskilled is quite high. There is sufficient pool of skilled human resource for the

organization.

Financial resource sector-Gujarat governments full support to the new industries facilitates

the easy flow of capital from various financial institutes.

Socio-cultural factor - Rapid urbanization, changing life style and lack of any social constraints

with girls and women riding a two-wheeler favors our market expansion and penetration. In

Gujarat, there are less labour issues in comparison to other states.

Analyzing Competition

Our competitors not only consist of electric bike manufactures but also the petrol based two

wheelers. At present the two wheeler industry is dominated by petrol based vehicles. The key

players in the petrol segment are Honda, Bajaj, Hero Motor Corps and TVS. At present the

market is dominated by models like Pulsar, Bajaj Discover, Splendor and Honda Activa which

mainly caters to youth segment. Among them Honda Activa is emerging as a popular choice and

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has a unisex appeal. Among the college going girls TVS Scooty is emerging as a popular choice

as it is light weight, trendy and has good pickup and speed. In case of electric vehicle segment

Hero Electric, Yo Bikes and BSA Scooty are our major competitors. Among them Yo Bikes has

a significant hold in the market as it is the oldest electric bike manufacturer however they are

weak in promotional and advertising activities. From distributors and service network point of

view most of the bigger players like Honda, Bajaj, TVS, Hero Moto Corps and Mahindra

dominate the network.

Marketing Strategy and Objectives

Segmentation and Targeting: For determining the market for Eco-Mobike we first need to

find the potential market. Due to limited production (scale), starting as a new player and better

external environment in the state we are looking for the major cities of Gujarat. Based on the

high population and high urbanization we are considering 13 districts. Basis of selecting urban

areas is that they have better infrastructure like roads, lesser intra city distance and availability of

charging points. Among these districts, only the urban population is considered which ranges

from 30% to 84% of total population. After applying the geographical basis of segmentation, we

further went for demographic basis of segmentation. Here we first took age as the basis of

finding the available market. Youths are ready to experiment and are initiators and influencers of

buying decision. In this the population is divided into age group of less than 14 years of age,

between 14-35 years and beyond 35 years. Out of these three, we are focusing on second

category. This segment is further divided into different segments based on their education and

occupation. This includes SSC/HSC students, under graduate and postgraduate students

employed persons (clericals, junior executives, sales personals etc.). People within the same

demographic group generally exhibit very different psychographic profiles. This division also

determines different personality traits, which are based on the level of motivation and individual

resources. Final target group of our product will be Thinkers, Experiencers, Strivers and Makers.

Our target market will be the urban youth of Gujarat who belong to the age group of 14-35 years.

Positioning:It is the act of designing the companys offering and image to occupy a distinctive

place in the minds of the target market (Ries and Tout, 2000). Positioning requires the

similarities and differences between brands which need to be defined and well communicated.

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The promotions will reflect the attitude of freedom, ease and coolness associated with the brand.

Aim will be to generate brand equity and drive sales by creating awareness for the brand, linking

the right associations to the brand image in consumers memory, eliciting positive brand feelings

and facilitating a strong brand connection with the consumer and enhance the perceived value in

the buyers mind.

We are in the two wheeler automobile industry, which is very competitive, and Eco-Mobike

our company is coming up with variants that are for those people who feel that they are young,

responsible and rational in their approach. Our point of difference will be the style, eco-friendly,

freedom from petrol, and world class after sales service. The differentiation strategy will give us

the competitive advantage. This will be communicated by our aggressive promotional activities

which will also ensure our category membership in the two wheeler industry.

A successful customer focused value proposition, will ultimately become a good reason for our

target market to buy our product. Our company is launching the three variants of Eco-Mobike for

three different types of the customer. First is Eco-Mobike Cratus, which will be the highest

version with sturdy looks and powerful battery. This will propel the vehicle to reach the top

speed of 65 km/hr with maximum payload capacity as 140 kg. It will be basically for boys who

need speed and masculine body structure. This will also give an edge to our product with respect

to fossil fuel based vehicles. Second, will be Eco-Mobike Flora, which will be designed for the

new age confident, self-dependent and distinctly ahead girls. This will have less speed and slim

look in comparison to the Cratus. The third one will be Eco-Electron that will target the school-

going students of higher and senior secondary. This is designed in such a way that caters to their

need to express freedom. Since the speed does not go beyond 25Kmph and it is gearless vehicle,

which make the students to remain away from the purview of rules that could restrict them.

Marketing Strategy: The mission of the organization is To provide each household with a

reliable, effective and a competent battery operated eco friendly zero emission two wheeler,which will not only relieve the public from the burden of rising petrol prices but will also serve

and secure the future.

Our game plan will be based on the differentiation strategy. With the market study conducted,

we have tried to identify and fill the gap 1 which is - producers perception of customers

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expectations and customers actual expectations of the product and service. Hence are launching

our product with features which are not available in the market. We want to achieve superior

performance (on certain key product features which are highly valued by the large part of the

market) and thus gain quality leadership in the market. These new features and freedom from the

rising petrol prices will be our key value offerings which well aggressively advertise and

promote to create the brand and the product awareness. We have realized that the nearest

competitors are not advertising or promoting their products which leave us a window wide open

to capture the share of mind of the customer. To capture the share of heart we will provide the

customer with uncompromising and world class service where the concept will be to treat the

customer as a king. We have formed a strategic product alliance where we have licensed the

production to a third party vendor wholl produce the complete goods as per Eco-Mobikes first-

rate quality standards.

Marketing Objective:

Assuming just one Eco-Mobike for all the households in the urban zones, with the income of

greater than Rs.15000 per month of the selected 13 districts of Ahmadabad we get around

1400000 households which gives us the total market potential for Gujarat market. Our capacity

to spend in the designing, manufacturing, marketing and delivering to the customer cannot

exceed Rs.200, 000,000 annually. To cover this cost we need to sell around 8000 Eco-Mobikes

in a year in the state of Gujarat.

Going by the industry data there were 650000 two wheelers which were sold in Gujarat in 2011.

Out of which the sales in the urban area was around 400000 units. Only 3.5% of this was

captured by the electric two wheelers (only three players in Gujarat) last year which comes to

around 14000 units. We want to step in the market as a key fourth player which will further

promote the sales in the region. Starting with sales of only 8000 units it is a miniscule 2%

portion of 400000 two wheelers sold last year or 3500000 households in the urban areas. The

overall two-wheeler and electric two-wheeler industry are estimated to grow by the rate of 20%

each year for the next five years. Our objective is to achieve the sales of 8000 in the first year,

gain the lead, maintain it and remain over and above the overall industry growth rate.

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Financial Objectives:

Eco-Mobike, which is a new entrant in the two-wheeler electric vehicle segment, will be in

severe constraints of funds in the first year. A hefty sum of money will be spent on promotional

activities. Therefore, we are targeting sales of 8000 units so that we would be able to cover

advertising and other expenses. The 8000 units target we consist of sales proportion of (1: 1: 1)

for the three variants i.e. each variant will contribute to 33% of sales. The profit margin will vary

according to the model type for base model (Rs. 30000) the profit margin will be Rs 3000.

Similarly the profit margin other variants will be Rs. 4000 and 5000 respectively. We are

expecting 20 % growth in our sales on yearly basis. In addition, the advertising budget will vary

month wise depending upon whether it is peak season or off-season. During peak season, we will

increase our advertising expenditure and decrease it during off seasons, as during off seasons the

sales will be less. Expected financial ratios based on budgeted balance sheet and profit and loss

account are shown in the Annexure 3.

To finance the project the funds required will divide into two major heads, equity and long-term

loans. Four co-owners are infusing a total of Rs. 10 million and rest Rs.10 million will be

borrowed from four different banks namely State bank of India, Bank of Baroda, Yes bank and

IDBI. The average interest charged by the banks will be 10% per year.

Tactical Marketing

Promotion: We will use the promotion aggressively, through which we can establish a dialogue

and build relationship with the consumers. Our objective is to make Eco-Mobike a household

name by raising the brand recall rate by using the following tools:

Telemarketing: The call centre executives will answer all product related queries of the callers

and will try to persuade them to register for a purchase by informing them about the features,

benefits and values which are beneficial to the customer. The same desk will also be used to givecalls to the prospective customers on regular basis.

Direct mails/emails: The messages will be customized as per the name, age, sex and occasions.

The mail will have product catalogs, flyers, brochures of the product.

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Advertising: The advertising campaign will inform public about the new product, its features,

and functions and will persuade them through the advantages vis-a-vis petrol based two wheelers

i.e. low maintenance, increased savings and environment friendly aspects. We will present a

rational message oriented appeal to our potential customers and can help them in better

evaluation of offering. Our target customer lie in the age group of 14-35 years, but to appeal to

all people within that range well have to design different advertisement campaigns keeping

different ages (14-22, 23-30, 30-35) and gender (male or female) in mind. For the lower age

group well use the theme of playfulness, style and being real cool amongst the rest. For upper

age group well use responsibility, comfort, affordable and style as the main themes. For females

well use ease of operation, feminine design, cheerfulness and independence as the main themes.

The basic emotions and theme that we will project are cheerfulness, caring (i.e. showing new

generation is sensitive to environment problems) and style statement, thus it will help in brand

building and will make the product more likeable.

To increase the effective reach we will use a mix of media channels which includes television,

radio, print and internet.

Newspaper: In newspapers, coloured advertisements will be placed on the front page, page 3

and the last page of the newspaper on different days. Generally, the front page and the last page

are read in detail by all genders and segment specially the 26-35 age groups. Page 3 is read by

teenagers and females. The ads in newspaper will be published on one weekday and on

weekends (i.e. Saturday and Sunday).

On radio the information regarding our vehicle as cost effective will be broadcasted on daily

basis, the message in essence will be Make Rs.12000 or even more in a year by purchasing the

new and cool Eco-Mobike - an eco friendly vehicle - that runs on electricity which means no

petrol expenses!! So even if petrol prices rise you need not to worry as you have Eco Mobike!!

Woohoo!! A penny saved is a penny earned.

Gujarat has many movie theatres. Film ads are a good way to advertise a motion advertisement

as in a movie hall the public is in a good mood. Billboards on national highways, near popular

public places like shopping malls, markets or cinema halls always catch attention of the public.

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Petrol pumps will be the best place to advertise. Apart from this, airlines, radio taxis, buses can

be looked at as a viable option. Refer to annexure 4

We will maintain firm presence on internet through frequent advertising on social networking

sites like Facebook, Twitter, Wikipedia etc and by using tools like Google ad words. The

company website will be designed in such a way so that it is trendy, colorful and sporty and

appeal to the youth. Well also use viral campaigning.

Sales Promotion and events: We will conduct test drives at locations which are frequented by

city youth like schools, colleges, office complex, cinema halls, shopping malls, branded eating

points etc. As an incentive well giveaway freebees like Eco-Mobike keyrings, t-shirts or caps

etc. These freebees will have our brand name, logo, address etc on them which can act as

specialty advertising (Refer to annexure 4). Well also participate in major trade shows in the

state so that both the prospect dealer as well the customer can have a look, touch and feel the

product. Contests for attractive prizes will be run from time to time to motivate and push sales

for both the internal sales team as well as distributors. We will sponsor some local and popular

sports events like International kite festival at Ahmadabad, marathon sports in different cities of

Gujarat, local cricket matches etc. We can also sponsor major Garba festivals in Gujarat to

associate ourselves with the festival spirit of the state.

Personal Relations: Our main objective of using PR will be to maintain good relations with press,

government and public. Well use popular automobile magazines and television shows like the

car and bike show on NDTV and Overdrive on CNBC for our product launch, variants and

review promotions.

Distribution:The marketing channel will be 1-level. By using exclusive distribution we will be

able to have more dedicated and knowledgeable selling of our product. The 10 districts identified

by us will be having a dealer each at the district headquarters that will look after the whole

district if needed opening sub-branches at the smaller towns. The dealership location will be such

that it can be easily located and will be in near the centre of the town as it will be easily

accessible and approachable to the target population. The service will also be provided the dealer

and he will be having mechanics trained by us. The distribution cost will be borne by the dealer

that will include transportation from the companys warehouse to the dealership. Each dealer will

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have different price as the transportation cost will be different for each of them. All the dealers

will be having a fixed margin by that way we will be able to have a justifiable pricing policy

across all our dealerships.

Pricing:Since we are launching a new product in the market, pricing is very important because

the acceptability of our product largely depends on the pricing. We will focus on two pricing

points that areEase/convenience and Me too/but cheaper. We will consider the following factors

in setting the pricing policy:

Our objective will be to gain and maintain the product and quality leadership in the market. Our

aim is not only to serve the customer with the best quality of product and service but also make it

affordable for the customer.

We need to know how responsive or elastic demand will be to the price of our product. We have

many competitors in the market in the form of petrol and electric two wheelers. Our product is

better than the existing electric two wheelers both in terms of product (speed, power and

charging time) and after sales service and support programs. As it doesnt have close substitutes

in the market it will be priced higher than the nearest competitors i.e. the existing electric two

wheelers, but will be priced lower than the petrol based scooters (Honda Activa, Mahindra Duo).

For demand estimation the total urban population of all 13 districts has been taken. The average

number of members per household in Gujarat is 6. The total urban population has been divided

by 6 to get district wise estimate of total number of households. After getting that household

number, it has been multiplied by .25 which will give us the district wise total number of

households with the average income per month of greater than Rs.15000. This number gives us

the total market potential of all the districts.

Cost Estimation: Our fixed cost will include marketing expenses, admin expense salary,

warehouse rent, and interest on term loan. Our variable cost will be cost of goods sold (cost per

vehicle purchased from the vendor), transportation cost, electricity, and incentives to the internal

Total

Population

Urban

Population

Number of

Households inUrban Area

Household

Income>Rs.15000

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and external sales force. Our cost will be different for each region in Gujarat and so will our

profits hence we need to use activity based cost accounting. It will help us identify real costs

associated with serving each customer. Also we need to keep the costs as less so that we can

price the product less than petrol scooters but more than present electric two wheelers still earn

profit on each sale. That profit margin needs to be deducted from the selling price which will

give us our target or maximum cost.

Analyzing competitors costs: We first need to consider the prices of our nearest competitors.

These competitors are Hero Electric, Yo Bikes, BSA Motors, which are selling similar electric

two wheelers. All these bikes have a top speed of 40Kmph. We have three variants in which

have the top speed of 25Kmph, 55Kmph and 65 Kmph. Likewise our charging time is 3-4 hrs

which is almost half of the competitors. Also the payload capacity is almost double from that of

competitors. Since our product is better in terms of speed their worth to the customer will be

evaluated and will be added to the competitors price.

Selecting the pricing method: Given the three Cs i.e. the cost, competitors pri ces and customers

ascribed value, we have been able to determine the floor price, orient point and the ceiling price.

Since ours is one of a kind product in the market which provides better power and speed never

experienced by the customer at such a price well base our pricing based on the perceived value

of the customer. As per our market research data, the customer rates speed and power very high

when purchasing any two wheeler and our product will deliver this value. Hence our product is

differentiated from our nearest competitor. Our key strategy is to deliver more value to the

customer than the competitor and to demonstrate this to the prospective buyers.

Selecting the final price: Customers generally like to pay more in case the product commands

higher relative quality. Our marketing expense will be a major cost contributor as we in an

introductory stage where well adopt an aggressive marketing strategy. The promotion and

advertising frequency will be high to increase the exposure, awareness and trial rate from thetarget population. To ensure this happens well employ the multiple-vehicle, multiple-stage

campaign. Customers usually are willing to pay higher prices for known products than for

unknown products.

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Our price will vary for each dealer and retailer based on the delivery frequency, order levels,

service contracts and geographical location.

Geographical pricing: Locations which are farther from the manufacturing point will be charged

higher for the product than the locations which are nearer, as the transportation cost will vary

from region to region. Hence the end user price will be different in different cities. Also price

will be reduced for the product (transfer price to the dealer) in case they participate in marketing

and sales support programs or perform different functions like service delivery, training etc on

their own. However, the expense thus incurred will be passed on to the customer.

To attract the customer we can employee low interest or even zero interest financing options.

Students who go to school or college on Eco-Mobike will get special discount from time to time.

Budget, Performance and Implementation

Marketing Budget: We need to do extensive advertising during the launch of the product.

This requires great deal of investment in advertising so as to increase brand awareness. The main

media channels employed to accomplish this task are TV, radio, newspaper, internet and event

marketing. The TV channels employed will be Star Plus, Aaj Tak, NDTV and ETV Gujarati

(selected on the basis of viewership in Gujarat). In case of news channels the cost for 10 sec slot

at prime time is approximately Rs 25000 and for Star Plus it comes out to be Rs 1.5 lacs and for

other time slots the rates are almost half. Also we have divided the various months into off

season and peak seasons respectively. During the peak seasons we will raise our advertising

budget to garner more sales. Similarly we will decrease our advertising budget during off

seasons. Since our product will initially cater to Gujarat only during its initial years so it would

be waste of money to showcase the advertisement to the entire country. Therefore we buy

advertising slots from Amagi group (an ad agency which buys slots at national channels and sell

the slots to regional advertisers at nominal cost). By doing so we reach maximum viewership at

lowest cost, also the advertisement will be telecasted 3 times a day thrice a week during prime

time at the various channels. In case of newspaper the ad will be printed on the first page twice a

week and the size of the advertisement will be thirty lines with 10 words per line the cost will be

in the range of Rs 22500 and 45000 for Gujarat Samachar and Times of India respectively. In

case of radio we will use Red FM (as they have good reach in the targeted cities) and the ad will

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be telecasted 5 times a day during prime time this will cost us around Rs 15000 per month. To

maintain presence on internet and serve the needs of tech savvy customers we will use Facebook

and Google ads. The cost will be incurred on CPC (cost per click) basis and we are assuming a

target of 500 clicks per month for Facebook and Google ads respectively. The average cost

hovers around Rs 25-27 per click and it will cost us around Rs 26000. We will also employ three

hoarding at the key locations (the site selection will depend upon the visibility of hoarding and

the people traffic), this will cost us around Rs 75600 per month.

In order to increase our media presence we will actively involve in sales promotion. We will

take sponsorship of various sports events and cultural festivals like Nav Durga. During sports

event we will distribute free T shirts to the contestants. We will also organize trials where the

participants will get free T Shirts and key rings respectively this will cost us Rs 60 and Rs 10 per

unit respectively.

Additional Considerations:

After Sales Service and Support: Creating loyal customers is one of the goals of our business.

The idea is to build a superior experience and deliver high customer value which will help us to

attract new customers and retain the existing ones.

Service: The service engineers and dealers will be provided with regular training on the product,

technology and most soft skills to provide quick and quality service to the customers. As both the

product and the technology are fairly new in India to build the faith of the customer in the

product, technology and brand free onsite service will be provided for the first 4 times out of the

total 6 free services. In case of an emergency situation like the bike is not starting, battery not

taking charge, rider is stuck on the road as the battery is drained out an engineer visit can be

arranged. Since regular cleaning and lubrication of parts is a must and for the maintenance of the

vehicle, 6 free services (before the stipulated time mentioned in the product booklet) will be

provided to customer who will cover service for all the major parts mentioned above and thevehicle as a whole. The service will be provided at the wide distributor and dealer network

present in the all the cities shortlisted for launch.

Road Side Mechanics: Since its a new and different technology with new and different vehicle

parts and mechanisms, existing methods by road side vendors to fix a punctured tyre will not be

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sufficient. City wise drive will be taken by the already trained and certified technicians and

service engineers of Eco-Mobikes to train and cover all the road side mechanics on tyre

replacement, lubrication and cleaning of the Eco-Mobikes.

Helpline: A centralized call centre will be established with a toll free number which will operate

from 9 AM to 6 PM, Monday to Friday. The call centre will help the existing customers to get

any information related to the warranty, register complaints, product info, nearest service centre

and technical knowhow. The manpower in the call centre will also be used proactively to get

feedback from the existing users of the product which will not only help us to make further

improvements in the product but will also be useful in maintaining a long term relationship with

the customer. Apart from this the call centre will be used extensively for inside sales activities.

Warranty Details: All the models are secured with warranty and extended warranty. A 3 years or

36000 kms (whichever comes first) warranty will be provided on the motor and controller parts

of all the vehicles. For the battery charger a 1.25 years or 15000 kms (whichever comes first)

warranty will be provided. For the vehicle and the battery a 1 year or 12000 kms (whichever

comes first) warranty will be provided.

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Annexure 1

Vehicle Specfication Eco Electron Eco Flora Eco Cratus

Length x Width x Height1870mm x 660mm x1175mm

1860mm x 730mm x1300mm

1880mm x 830mm x1240mm

Kerb Weight (Vehicle Weight) 77 Kg 114 Kg 115 Kg

PERFORMANCE

Maximum Speed 25 Km/Hr 50Km/hr 65 km/hr

Maximum range per change 70 - 75 Km/charge 70 - 75 Km/charge 70 - 75 Km/charge

Pay Load Capacity 100 Kg 130 kg 140 kg

TECHNICAL DETAILS

Motor (BLDC HUB Motor) 250 W 900 W 1800 W (Peak power)

Battery Type VRLA Deep Discharge VRLA Deep Discharge VRLA Deep Discharge

Battery 30 Ah 33 Ah 40 Ah

Electricity Consumption/Charge 1.4 Units 2.0 Units 2.25 UnitsCharging Time 3 to 5 Hrs 3 to 5 Hrs 3 Hrs

Price (Rs) 30,000 36,000 40,000

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Annexure 2

Trend in GDP per capita and two wheeler prices

Trend in Urbanization in India.

Trend in domestic sales volumes of scooters segment.

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Annexure 3-

Expected Financial Ratios-

Current ratio 14.5 14.5 14.5 14.5 14.5

Profit Margin 0 0.002 0.009 0.015 0.02

Net working

capital

0.93 0.93 0.93 0.93 0.93

Return on asset 0 0.037 0.155 0.285 0.428

Return on

common equity

0 0.053 0.225 0.414 0.621

Asset turnover 13.65 15.02 16.522 18.175 20

Debt equity 1 1 1 1 1

Interest coverage -7.26 -0.174 2.46 5.4 8.5

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Annexure 4

Key rings-

T-shirts

Hoardings-