PROPOSAL

TOPIC: People’s Attitude towards road safety and the state of road accidents in

Gujarat. (Should the Studs helmet enter into the Gujarat Market?)

Submitted By- Group no- 10

Roll No – 46, 49, 52, 55, 58, 61

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Contents 1. Abstract .................................................................................................................................................... 2

2.0 Opportunity/ Statement of the problem .............................................................................................. 3

2.1 Government Initiative ........................................................................................................................ 3

2.2 Current Scenario ................................................................................................................................. 3

2.2.1 Injuries VS Death .......................................................................................................................... 3

2.2.2 Compulsion vs. Moral Responsibility ........................................................................................... 4

2.2.3 Sales of Helmet VS Two-Wheelers ............................................................................................... 5

3.0 Solution ................................................................................................................................................... 5

3.1 OUR APPROACH............................................................................................................................... 5

3.1.1 Schemes ....................................................................................................................................... 5

3.1.3 Advertisements ............................................................................................................................ 6

3.2 Implementation .................................................................................................................................. 6

3.3 Solution Provider (Who We Are) ....................................................................................................... 6

4.0 Financial Investment .............................................................................................................................. 7

5.0 Support from Your End .......................................................................................................................... 7

5.1 Subsidisation ...................................................................................................................................... 7

5.2 Road Show .......................................................................................................................................... 8

5.3 RTO...................................................................................................................................................... 8

6.0 Outcome ................................................................................................................................................. 8

6.1 Benefit ................................................................................................................................................ 8

6.2 Support from your end....................................................................................................................... 8

6.3 Conclusion .......................................................................................................................................... 8

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1. Abstract This proposal talks about various govt. initiatives that were taken during the year 2008 and

proved to be successful until 2014 when the finding backed by TRIP shows that there is

substantial increase in no. of deaths of two wheeler accidents. In this proposal we have tried to

present a possible solution to this problem.

This proposal consists of strategy which will help us to spread awareness among the people for

road safety and rules. It also comprises various schemes and offers which will boost this initiative

and will help to sell more and more helmets. Our various marketing techniques and road shows

will help us to cover more people. We have mentioned every financial detail of investment

involved in this initiative.

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2.0 Opportunity/ Statement of the problem

2.1 Government Initiative

Since 2008, Government of Gujarat has taken strong initiatives for improving Road Safety.

The initiatives are mentioned below:

Raise awareness about issues related to road safety

Launch a Road Safety Information Database

Safer Road Infrastructure

Safer conditions for Vulnerable Road Users

Road Traffic Safety Education and Training

Safety Laws Enforcement

Emergency Medical Amenities for Accidents on the Road

HRD and Research for Road Safety,

The above mentioned initiatives were able to reduce the death rate by around 2%, but in this

mirage of data, one failed to notice the pro-rata increase in death rate of people driving two

wheeler, which has raised up to 27.32% as per latest finding by TRIPP. The reason for the same

was described as Lack of quality Studd category Helmet and up to some proportion people failure

to wear helmet at all, in spite of having strict law.

2.2 Current Scenario

The detailed current scenario is mentioned below. This survey was conducted by us in

collaboration with TRIPP and IRTE. This led us to certain conclusion, which are mentioned below:

2.2.1 Injuries VS Death

This comparison shows the scale of injuries which lead to death in road accidents. In most of the

cases the victims of accidents were not wearing the helmets. Following data shows the stats of

accidents over the past three years.

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40000

35000

30000

25000

20000

15000

10000

5000

0

2013 2014

2015

Accidents 33671 31034

26206

Deaths 7070 6983

6067

Injuries 35772 32944

28646

Accidents

Deaths

Injuries

2.2.2 Compulsion vs. Moral Responsibility

Government initiatives force people to wear helmet .Reason behind this may be whether it is

made compulsory to wear helmets or they are taking it as a moral responsibility. It differs from

person to person as it is a subjective matter. Some data mentioned below show the trend over

the past years.

COMPULSION VS MORAL RESPONSIBILITY

700

600

500

400

300

200

100

0 2013 2014 2015

Compulsion 657 600 550

Moral Responsibility 343 400 450

10% 25%

20%

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2.2.3 Sales of Helmet VS Two-Wheelers

It is compulsory to wear helmet while riding two-wheelers which indicates the sales of helmet

must be align with the sales of two-wheelers. But somehow trend is not as per expectation, sales

of helmets are more far from the sales of two-wheelers. It is merely near to 30% of two-wheelers

sales. We can compare the numbers from data which we have available over past 3 years.

Following graph shows the comparison of it.

SALES COMPARISON

180000

160000

140000

120000

100000

80000

60000

40000

20000

0 2013 2014 2015

Two Wheelers 137000 141000 158000

Helmets 37000 33000 36000

3.0 Solution At stud we believe “Whatever the problem, there is always a solution” With this initiative we

bring solution in two phases, in terms of our approach and implementation

3.1 OUR APPROACH

3.1.1 Schemes

Under this initiative we will offer various schemes and discounts to customer which are as

mentioned below:

5% discount on MRP of helmet if people bring AADHAR card along with them.

10 % discount on MRP of helmet for college students.

25% discount helmet on replacement of non-standard helmets.

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3.1.2 Campaign

To spread awareness among the people we will do various programs at public crowded places

like Petrol pumps, Government Institution, Traffic Junction, Gardens, Malls, Two-wheelers

showrooms etc. We have planned one road show in the city to outreach the people as much as

possible.

3.1.3 Advertisements

We will do advertisement in News-papers, Social Networking sites, Radio stations. We will take

help from volunteers to make more and more public engagement to aware them about road

safety.

3.2 Implementation

As a part of our strategy we will launch a campaign named as “WEAR HELEMT WEAR SAFETY”.

Under this initiative we will sale discounted stud helmets to the people, with an initiative to

improve their safety. For the same we would like Department of Road Transport and Shipping,

Government of Gujarat’s involvement in this process. The awareness programme will be carried out at public places, traffic junctions, government

institutions .This is in tandem with Government’s recent initiative to spread awareness about

road safety at Grass Root level. 3.3 Solution Provider (Who We Are)

Company –Studds Accessories Ltd.

Background – STUDDS is arguably the world’s largest manufacturer of helmets. We are ISO

9001 certified company.

A state-of-the-art manufacturing plant churns out over a million helmets every year. The range

of helmets and two-wheeler accessories is the largest in the segment, and it keeps evolving

with every passing year.

The driving force behind the DNA of innovation is the urge to constantly upgrade our portfolio,

and provide world-class options to our customers.

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At the heart of this Endeavour is our Research & Development Cell that spearheads innovations

in both design and technology, and creates a constant stream of ideas, concepts and

breakthroughs.

STUDDS has emerged as India’s leading helmet and bike accessory brand that sets benchmarks

in the industry, and leads the way with a network of dealerships across the country. And a

global footprint across 35 countries in North and Latin America, Europe, Africa, Middle and the

Far East.

4.0 Financial Investment

It will cost us in two ways as Fixed Cost and Variable Cost. Fixed cost includes all costs regarding to Campaigns, Advertisements, Road shows which will cost around nearly 20 lakhs. Variable cost depends mainly on how we are able to increase the sale. We will also be investing substantially for specific stud category helmet production. The expansion will cost us around Rs35 crore. The detail cost structure is mentioned below:

SR. No. CATEGORY INVESTMENT (RS.) 1 Campaign 800000

2 Advertisement 1000000

3 Road Show 200000

5.0 Support from Your End

5.1 Subsidisation After detailed costing, pricing of this helmet will be at Rs1500 per unit. But to be in tandem with government initiative, we have proposed certain discounted rates, for which we believe will help consumer get the good quality helmet, thus increasing overall safety of the public. We would require government’s help to subsidised the discounted rates, as we will be working on miniscule margin. Below we have mentioned the subsidised helmet rates:

COMPANY SIDE GOVERNMENT SIDE

PRICE DISCOUNT RATE SUBSIDY

1) 5% with AADHAR card purchase

1500 2) 10% for college students

5%

3) 25 % for replacement with non-

standard helmet

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5.2 Road Show

We plan to create awareness through Road Show at different districts of Gujarat. We have already patched in various NGO’s such as Rotaract club and Lion’s club. The detailed plan for the same is ready. We will require certain permission from your side. We would also want several RTO staff to be part of this initiative.

5.3 RTO We would like to install our stalls and put awareness Banners at each and every RTO locations. Along with that we would like to provide certain demo helmets at RTO offices. These helmets will be used during trial runs, done by public to get their license.

6.0 Outcome

6.1 Benefit

A recent survey conducted by Indian Statistical Institute states that, Government of Gujarat spends substantially on Health care services, and it is proportionately more for people involved in road accidents, specifically two wheeler. With above mentioned initiative, we believe government’s burden on exchequer will reduce significantly, thus totalling 4.8% of government saving. Another feasibility survey conducted by TRIPP also shows, that with above mentioned initiatives there is 89.98% chances that number of deaths on two wheeler accidents will substantially reduce by 58%. The main benefit of all is people will develop habit of wearing quality helmet

6.2 Support from your end. To achieve above benefits, we would require your help at each and every stage of this project. The help needed would not only be be in terms of financial aspect, but also in terms of certain prior permissions, that would be needed for smooth flow of this project.

6.3 Conclusion

From above analysis, we have come to conclusion that initially the investment required by both

Studd Helmet and Government of Gujarat is substantially more for initial three years. (Of course

Government of Gujarat investment is in terms of Subsidies) But eventually Marginal Benefit will

surpass Marginal cost just maximizing the effective returns both for government and Studd.

One’s the equilibrium state is achieved, the initial subsidies given by the government can be

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stopped. Ultimately as per our analysis, this 27.32% of death will substantially come down, thus

saving 4.8% of probable exchequer money.

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