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Driving Towards A Greener Future
Motocorp.
Our Vision
Who We Are
ION Motocorp’s motto is to be a market leader in its segment in the next 5 years and to increase awareness about protecting the environment among Indian citizens.
Our vision is to have a cleaner and greener tomorrow by dedicating ourselves to a better future
Our Mission
• Ensuring Consumer Satisfaction• Highest Quality of Product• Return of Investment• Updating ourselves with the latest
technology in the field
As a start-up firm we will produce green bikes or fossil-fuel free bikes which will compete with the best in category and we will market them in the 6 most polluted and industrialised cities in the country.
Our Immediate Objectives
Our Values
The Green Opportunity
Treading the green way...
Up up and away..
Petrol woes
• The hike in petrol prices has encouraged people to look at alternative cheaper fuel powered vehicles
• The present consumer behavior is illustrated by the increase in demand for diesel cars with increasing petrol prices, while sales of petrol cars have shown weak or no growth
Swift Swift Desire Ritz Figo Indica0%
10%
20%
30%
40%
50%
60%
70%
80%65%
60%
45%
30%
70%75%
66%
55%47%
72%
2011(Q3 & Q4) 2012 (Q1 & Q2)
The Light Bulb Moment• Since the alternatives to petrol in 2 wheeler market are very low,
the sales of 2 wheelers have taken a hit
• Hence Introducing, ION MotoCorp electric bikes at this juncture as an alternative to petrol bikes gives the firm a distinct advantage
Towards Green World..
The First Step
A small survey was conducted to know • Are people ready to make conscious and smart decisions to
create a greener tomorrow?• Are they ready to replace their present mode of transport with a
greener one?• What their expectations are from a socially responsible
company
Survey Questionnaire
“Sense and Respond”
The Market Survey which was conducted gave us the following findings:
Age Group Avg. Speed (Km/hr)
Preferred Price (Rs)
Average Usage per day (Km)
Preferred Charging Time (Hrs)
15 - 18 25 20,000 20 – 30 3
> 18 50 60,000 50 – 150 6
And The Survey Speaks
• Understanding and meeting customers’ expressed needs• Segment 1 and Segment 2 product lineup is based on the survey
conducted to analyze the present customer needs
• Understanding and meeting customers’ latent needs• Development of segment 3 product lineup by the process of
probing, learning and innovation
Total Market Orientation Strategy
Reactive Approach
Proactive Approach
4 Ps
Product
Price
Place
Promotion
Marketing Mix
What we sell..
Product
• ION - Green Bikes catering to different segments• Three Variants:– Electron– Proton– Neutron
• Environmental Friendly• Runs on electricity• Sleek design• Speed up to 220 Km/hr• Usage per charge up to 120 Km• Charging time varies from 3 hrs to 9 hrs depending on the variant.
Product in a Nutshell
Electron
• Cost efficient variant• Suitable for ages ranging from 15 and up• Gearless operation• Does not require a driving license• 3 modes of operation:
– Cyclic mode : Powered by the user (recharge mode)– Pedlec mode : Rider is supported by the motor– Pure Mode : The drive power is purely the product of the
motor
Features
Vehicle Specification
Length 1550x480x800 mm
Weight 55 kg
Battery
Capacity 20 Ah
Electric Consumption/Charge
1 Unit
Charging time 3 to 6 hours
MotorRated Power 250 Watts
Operational SpecificationsMax Speed 25 km/hr
Max Range 50-60 Km/ Charge
Payload Capacity 80 kg
Specifications
Proton
• Dual Mode operation– Power Mode– Economy Mode
• Overload Indicator
• Extra storage space beneath the seat
• Multipurpose Mini USB Port
Features
Vehicle Specification
Length 1800x870x1200mm
Weight 110 kg
Battery
Capacity 40 Ah
Electric Consumption/Charge
2 Units
Charging time 6 to 7 hours
MotorRated Power 2000 Watts [Peak Power]
Operational SpecificationsMax Speed 60 km/hr
Max Range 60 – 70 Km/ Charge
Payload Capacity 170 Kg
Specifications
Feature Petrol two wheeler I-Proton
Fuel Petrol Electricity
Fuel cost 73.16/Litre* 10/Charge2 Units required per charge
Mileage[Km/Unit of fuel]
50** 70/Charge
Average commutation per day
50 Km 50 Km
Average commutation per year
18250 Km 18250 Km
Fuel cost per year 26,703 2607
Average saving per year 24096
*Petrol Prices are with reference to Chennai, as on 24th July,2012.** TVS Scooty Pep has been chosen for reference.
Comparison of Proton with Petrol Bikes
Neutron
• First electric superbike in India
• High Acceleration due to high start up torque ( 16 kgm/ 157 Nm )
• ABS, Ride by wire throttle, Ohlins Suspension, Multifunctional LCD display, LED head/tail lamps
• State of the art energy recycling mechanisms– Recovering energy wasted while braking– Solar panels in the hood and tank
Features
Vehicle Specification
Length 2050x695x1200mm
Weight 160 kg
Battery
Capacity 100 Ah
Electric Consumption/Charge
4 Units
Charging time 9 hours
MotorRated Power 100 kWatts[Peak Power]
Operational SpecificationsMax Speed 220km/hr
Max Range 120-130 Km/ Charge
Payload Capacity 200 Kg
Specifications
What you pay..
Price
• Target Return pricing strategy– Set your price to achieve a target return-on-
investment (ROI).• Average Competitor Price– Direct : Rs. 19,999/-– Indirect : Rs. 6,000 /-
• Our price : Rs. 16,899 /-
Electron
• Value-based pricing strategy– Price your product based on the value it creates
for the customer.• Average Competitor Price– Direct : Rs. 65,000 /-– Indirect : Rs. 58,000/-
• Our price Rs. 62,899 /-
Proton
• Cost-Plus pricing strategy– Set the price at your production cost, including
both cost of goods and fixed costs at your current volume, plus a certain profit margin.
• Average Competitor Price– Direct : N/A– Indirect : Above 2 lakhs
• Our price : Rs. 3,11,899 /-
Neutron
Where we sell it..
Place
In New Delhi, there are some areas where people dump their trash and dirt bag. Infant morbidity in New Delhi is high and main cause are these pollutions. Everyday, 1000 new vehicles run on the roads of Delhi and 3,000 tons of pollutant from industries fill the air of the city. It is not surprise that Delhi is known as 4th most polluted city in the world
New Delhi
Mumbai, another Growing City in India, is one of the most crowded city in the world. Badly, not all the people know how to clean their environment. The city always suffocated with new pollutions from the industries and vehicles. Some NGOs try to solve the problem but their solution won`t work unless it is back up with $1 billion dollar aid from Indian government.
Mumbai
While the national annual ambient average for particulate matter is 60 microgram per cubic metre, the WHO standard is 20 microgram per cubic metre. Measured emissions in Chennai, however, range between 60 and 120 microgram per cubic metre.
Chennai
Ludhiana is a highly industrial city with manufacturing plants that produce everything from textiles to auto parts. Unfortunately, this industry, paired with vehicular pollution, has made Ludhiana one of the most polluted cities in the world. It currently has the fourth most polluted air in the world. There are about 200 premature deaths each year in the city due to air pollution. Additionally, incidence of asthma is on the rise.
Ludhiana
Kanpur is one of the largest cities in India and one of the most polluted in the world. Worst still, the levels of air pollution in the city, which is the 10th most polluted city in the world, are on the rise. According to the Indian Ministry of Environment and Forest, while vehicles, road dust and domestic cooking contribute to the city's high pollution level, it is the industrial sector that is the main cause.
Kanpur
Vehicular emissions are the main cause of air pollution in Lucknow. In recent years there has been a rapid rise in vehicular density resulting in many urban and environmental problems. The concentration of Suspended Particle Matter (SPM) in the industrial and residential pockets of the city is alarming. Its incidence ranges from high to critical.
Lucknow
Six most polluted cities in IndiaWhy?
• Effects of pollution will be very evident to the people living in these cities.
• Pollution implies that the place will have – High population density – large target audience– High Industrialization – high buying capacity
How we sell it..
PROMOTION
Why?• Low initial cost• Deeper market penetration• Higher brand visibility• Win-win situation for partners• Smaller taskforce
“Don’t do all the heavy lifting. Find partners who can contribute expertise and connections”
Electron• Partnership with schools and colleges for bike display,
demo and test drive• Green Campus Initiative• Green e-newsletter• NGO partnership for awareness campaign and tree
planting events
• Target Audience– Office goers and housewives
• Promotion Strategy– Bike display and test drives in different societies– Clean your neighborhood drive– Campaigns on garbage segregation– Award ‘green credits’
Proton
• Target Audience– High end bike enthusiasts
• Promotion Strategy– Bike display at Auto Expo 2012– Partnership with Autocar India show on
Bloomberg– Tie up with Channel V to launch a bike show– Conduct ‘The Big Green Bike Ride’ to spread
awareness and brand exposure
Neutron
HITTING THE ROADS THIS
AUGUST
How we can do better..
S.W.O.T.
STRENGTHS :1. Value for money2. Green card3. Environment friendly.4. Efficient after sale
service.
WEAKNESS :1. New to Automobile
sector2. Relatively higher cost in
comparison with petrol bikes
OPPORTUNITY :1. Increasing petrol price2. Govt. encouragement3. Greener world
SO – strategy* Being an environmental friendly product , the Govt. would provide * The green card will encourage people to buy more eco-friendly products.
WO – Strategy* Due to the increase in petrol price ,there has been a fall in the sale of petrol bikes.
THREAT :1. New competitors2. Solar power
ST - Strategy* Our strong after sales network , gives us an edge over the competitors.
WT – StrategySince the concept of green bikes are new , all are in the same level.
Who takes the cheese..
Reading the Competition
• It is the two-wheeler division of Tube Investments of India, the flagship company of• Murugappa Group
• Commands a market share of 18-20% and has recorded sales of 25,000 units
• Comprises of 2 variants- The economic sports model “Street Rider” and the under• 18(no license required) model “Fusion”
• An Engineering Conglomerate with three lines of businesses –Engineering & Projects,
Steel and Electric Vehicles
• Maiden manufacturer of electric bikes in India
• Posted revenues of Rs.200 million in the July-September period this year, compared to Rs.130 million in the previous quarter. During the quarter under review, the company reported a 54 percent increase in the sale of Yo-bikes
• Variants include “YO EXL”, ”YO Xplor”, “YO Style” and “YO Spark”
BSA Motors
Electrotherm India Ltd
•Hero Eco part of the Hero Group based in New Delhi has acquired Ultra Motor’s electric two wheeler division. • Sales of 25,000-30,000 bikes this year, up 40 per cent from last year. Its plant has an annual capacity of 120,000 units.
• Includes low speed models like “Maxi” , ”Optima Plus”, ”Zion” and high speed model of “E-Sprint”.
• Coimbatore based Ampere vehicle pvt ltd is slowly expanding their operations from electric bikes to hub motor and controller manufacturing.
• Variants include “Abhi”, ”Aditi “, “Angel”, “V60” and “Visva DD “ all of which clock a maximum speed of 25kmph.
• Possess a total annual sales volume of US$1 Million - US$2.5 Million .
Hero Electric
Ampere Vehicle Pvt. Ltd.
Market Share: E-bike segment
41%
23%
21%
9%
6%
Market Share
HeroBSAYo BikeAmphereOthers
Driving The Motivation
• To purchase a product, You need a driving force (A Motivation) that impels you to buy it
• Needs are never fully satisfied• Your need could be:
– To have a 2-wheeler vehicle. (Physiological)– To make the Earth a greener (better) place to live in
(Social)– To get a 2% discount like your friends and peers get (Ego)
“Motivation is produced by a state of tension, which results from an unfulfilled need”
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us..