MARKETING STRATEGY AND APPLICATION

Faculty: Dr. Roshni Sawant

 GROUP MEMBERS

1.ASHWINI GAWLI – BBA017058

2. JANHAVI MUKADAM – BBA017149

3. VIVEK RASTOGI - BBA017207

4. NAFFAZ SHAIKH – BBA017224

 1

SNO TOPICS

*** BRIEF BEFORE START

 ROLLER MINI

01 MARKET RESEARCH

SEGMENTATION
02
TARGETING
03
POSITIONING
04
PESTEL ANALYSIS
05
PRODUCT MIX
06
PRICING MIX
07
PLACE
08
PROMOTIONS AND BRANDING
09
BRIEF BEFORE START
2

For creating any product, Best way is to find the needs of people
and then build product to satisfy their needs. So, here I observed a lot of people suffering a lot
to move in cities due to heavy traffic issues and seeing that I felt this as an opportunity to
produce a product which every Unban Employee will love to buy.

I came up with the concept of Roller bikes, which are Electric,

Foldable, Easy to Carry, Efficient, etc. The launch of the brand “Roller Bikes” is starting with
Two Products extremely concentrating on the Employees in Big cities. The Products launching
are “Roller Mini”.

1. ROLLER MINI

ELECTRIC DRIVE
 Chance to be part of Green Club with New “Roller Mini” Driven
electric.
 Creative Engineering at Affordable Range.
 Power packed Miniature.

NO NEED FOR PARKING ANY MORE

Can be rolled like a trolley to any place

 Into your office, home, Elevators, everywhere.

 Ease of carrying through wheels.
 3

SLEEK & STYLISH DESIGN

Premium Finish, Design for comfort keeps people attracting
towards it.

 Stylish alloy wheels, Digital Speedometer, Reverse torque

Braking and so many value additions.

ENGINEERING AT ITS BEST

Can be folded into a trolley Or Unfolded to a
bike in “2 SEC”.

SPECIFICATION:
 Top speed: 35kmph
 Drives 50km per charge.
 350W hub motor.
 40V LiFePO4 battery.
 Can charge from regular outlets within 4 hours.
 No need for Parking Space.
 6
1. MARKET RESEARCH
RELATIVE MARKETS

BICYCLE E-BIKE

MARKET SIZE: MARKET SIZE:

 USD 1.2 Billion market. 2008 – 1, 10,000 vehicles gone down to 45,000 in 2013
 2nd largest Producer of cycles.
 12 million Cycles production every year form  Weak electric bike market
which 3 million are exported.
 Problem with peoples trust on Electric vehicle
 This shows huge Domestic market.
Batteries (Frobes, 2013)
 9.2% of Global market. (UCPMA, 2013)
PROBLEM IN INDUSTRY
LATEST THREATS

 China low priced cycles consuming the market  Lack of innovation in Industry
share of Indian cycles in global market.  Unable to keep the trust of people by providing
 This is due to low raw material costs and mass decent battery life time. (standard, 2012)
production of cycles by china. (Economictimes,
2012)
MAJOR PLARERS
MAJOR PLARERS
 Bajaj Auto
 HERO  BPG Motors
 BSA  BSA Motors
 ATLAS  Hero Electric
 Yo Bike (Rediff, 2013)
 AVON (UCPMA, 2013)

 Market lead by Hero electric, as it has 60% of the

INDIAN CYCLE MARKET market share followed by Yo bikes and BSA
motors.

OTHERS HERO

ATLAS

BSA

1. Figure (Raghuram, 2012)

 7
2. SEGMENTATION

GEO & DEMOGRAPHIC SEGMENTATION

EMPLOYEES STUDENTS
DEMOGRAPHICS URBAN SEMI-URBAN URBAN SEMI-URBAN

AGE 18-30 30-60 18-30 30-60 15-18 18-25 15-18 18-25

TRAFFIC PROBLEM HIGH HIGH MEDI MEDIU HIGH HIGH MEDIU MEDIU

AWARENESS HIGH HIGH MEDI MEDIU HIGH HIGH HIGH HIGH

INCOME MED HIGH MED M/H HIGH HIGH MED MED

ATTRACTIVENESS MED HIGH MED MED HIGH MED MED MED

PHSYCHOGRAPHIC SEGMENTATION

EMPLOYEES STUDENTS
ENVIRONMENTAL CONCERNED NON-CONCERNED CONCERNED NON-CONCERNED

LIFE STYLE PREFERED NEW OLD NEW OLD NEW OLD NEW OLD

PRICE SENSITIVE LOW MED MED HIGH LOW MED MED HIGH

ATTITUDE TO ENTHU POSITI POSITI INDEFF ENTHUS POSITIV POSITI INDEFF

SIAST VE VE ERENT IAST E VE ERENT
PRODUCT
ATTRACTIVENESS HIGH MED MED LOW HIGH MED MED LOW

Here, As per the segmentation the Employees and Students who are living in Urban Cities and facing lot of
problem with heavy traffic conditions showing high attractiveness to the products.

In these Employees/Business people with higher earnings are the target market for “Roller Rhine”.
Including this segment, Students in Urban areas and all medium attractions are target segment of “Roller
Mini”.

Since there is no need for License for these vehicles, it became high attraction to Students 15-18 years.
 8
3. TARGET MARKET

From the segmentation the Target Market for Roller

Bikes is Urban Employees/Business people and Students. Since Traffic jam is a big issue to reach
office by time for Urban Employees they buy these products.

P
R 1. BUSINESS PEOPLE/ EMPLOYEES IN BIG CITIES
I

ROLLER MINI
O
R
2. STUDENTS IN BIG CITIES
I
T
Y
3. EMPLOYEES / BUSINESS PEOPLE IN SMALL


ROLLER RHINE
Students from age 15-18 is also good target market for Roller Mini, Since there is no need of
License for these vehicles and Parents also encouraged to buy these bikes for their kids to
low top speed.
 Roller Rhine is extremely designed for luxury people who wants to look unique and wants the
best in use. So, this product targets Business people with High income levels.

4. POSITIONING STRATEGY

Talking about the Positioning in the market For Roller Bikes. Roller Mini
takes care of Mid-level market segment and Roller Rhine is for the Luxury segment. There is no
much Innovation in the Indian market and most of the Electric Driven bike are of very basic
technology.

BSA tried to bring some innovation in the form of BSA FOLDSMAN a

foldable cycle, but it does not satisfy the needs of Target segment, which resulted in failure of
this product.
 9
HIGH INNOVATION

ROLLER RHINE (RS

95,000)
ROLLER MINI
(RS 42,000)
TREK DOMANE 4.3
2013(RS 168,000)

BTWIN FC Road Bike

2013(RS 134,000)

LOW PRICE BSA FOLDMAN Hercules Ryder HIGH PRICE

(RS 16,000) Contour Speed
2013(RS 21,000)
Hero Electric Cruz
(RS 46,000)

LOW INNOVATION

Competitors for “Roller Mini” will be basic E-bikes from Hero which are
lacking innovation and up gradation to the technology. The High end E-bike from Hero costs
around RS 48,000/- which is higher than Cost of Roller Mini. At the same time Roller mini beats
Hero Electric Cruz in Specifications as well as Innovative design which will be Core competency
of Roller Mini.

Talking about “Roller Rhine”, it is the only Luxury class E-bike available
in Indian market and alternative is to go for sporty Bikes like BTWIN and TREK which are really
good in built quality and design for speed cycling but can’t satisfy need of E-bike. So, the people
who wants to keep themselves unique from others will go for Roller Rhine which is its Core
Competency.
 12
6. PESTEL ANALYSIS

LEGAL POLITICAL

ROLLER
ENVIRONMENT
ECONOMIC BIKES

TECHNOLOGICAL SOCIAL

4. FIGURE: PESTEL ANALYSIS (Philip R Cateora, 2008)

 POLITICAL: Indian Government announced $ 4.13 billion program to support

Electric vehicles which include development of infrastructure, Schemes for creating
interest in people, etc.
 ENVIRONMENTAL: These factors do not impact much on this products.
 SOCIAL: The success of these products will make India fulfilled its objectives regarding
electric vehicles and will improve its status in IEA (International Energy Association).
 TECHNOLOGICAL: Exploitation of new technologies by the competitors will affect
the sales of our product and the remedy is to innovate new things to sustain in the
market.
 ECONOMICAL: The economic situation of the country also effects the sales of
product. The situations of Recession can create a mess in the market.
 LEGAL: Government encourages us in development of products related to electric
vehicles. So, legal factors will cat favorable.
 13
7. PRODUCT MIX

Both the products of Roller bikes are a mixture of high value

additions to the regular product. This additional benefits gives these products an edge over
other competitive products in market.

POTENTIAL
EXPERIENCE
-> 2 Year Replaceble
Battery Warrenty.

AUGMENTED
EXPERIENCE
-> Foldable compact
design.

BASIC EXPERIENCE
-> Electric Drive.
->Big Battery Life.
->Decent Speed.

CORE EXPERIENCE
-> Travelling in Busy
cities.
->Ease of Driving

5. FIGURE: PRODUCT MIX (Gray Armstrong, 2004)

The variation in the two products attracts two different segments of
people which increases the target market for selling the products.

Targets Employees of middle and upper middle class.

Innovative Design: Foldable and wheeled like trolley.
High Battery Life: 40v LiFePO4 battery.

Roller Mini
 14
8. PRICING MIX
The pricing of these products is a bit tricky as some parts of these
vehicles are imported and some are locally made. So, there will be charges like Freight charges,
custom duty charges, etc. for importing which also include in the pricing.

FOR “ROLLER MINI”

Cost of Imported Accessories + Local made hardware cost + Assembling

Total Manufacturing Cost Charges

COST OF IMPORTED ACCESSORIES

IMPROTED SPARES FROM CHINA = BATTERY PACKS + BRAKE SETS + HUB MOTORS + CONTROLLER KITS

= US$ 160 = RUPEES 9600(Considering 1USD = 60 RUPEES)

CIF Cost DUTY & Landed

FOB Freight
‘C’= CLEARE Cost
&
CHINA Insuran A+B -NCE ‘D’ C+D=’E’
‘A’ ce ‘B’

$160 $12 $172 RS 230 RS 10,600

NOTE: The price of Spare from china are taken from Alibaba.com, by talking & bargaining with the dealer for an
Order of 1000 Sets. Below is the screenshot of dealer in Website. (Changzhou Hua Yu Xin Feng Motor Co., 2013)
 15

LANDING COST OF IMPORTED ACCESSORIES FROM CHAINA = 10,600

COST OF LOCAL MADE HARDWARE = FLEXIBLE FRAMES + LEDS + OTHER SPARES

= RS 6000/-

LABOUR CHARGES FOR ASSEMBLING AND MAINTAINANCE = RS 2000/-

TOTAL MANIFACTURING COST OF ROLLER MINI = 10,600+6000+2000 = RS 18,200/-

As the product is new to the market we should spend substantial

amount for marketing the product.

 MARKAETING AND OTHER MISCELLANEOUS EXPENSES = RS 5000 per piece.

TOTAL COST OF ROLLER MINI = Manufacturing Cost + Marketing and Other Miscellaneous Expenses

= 18,200 + 5000 = RS 23,200/-

Our Disty Disty

PROFIT
Margin Price Margin

RS 8,480 26.76% RS 31,680 RS 3,520

Margin
Disty

%
10%

PROFIT = RS 8,480
Dealer
RS 35,200

Price

RS 38,600 RS 40,000 12% RS 4,800

Dealer Dealer
MOR MRP Margin Margin
%
 18

9. PLACE
Launch of this product is planned in Five Metro-Cities of India

 DELHI
 MUMBAI
 BANGALORE
 CHENNAI
 HYDERABAD

These are chosen to be closer to the target market which is Employees

and students in big cities.

 Distributers in these cities will take responsibility of product availability according to the
demand. Special monitoring teams will keep an eye on public response towards product.

Head Office “CHENNAI”

Chennai is city with huge corporate hubs and People
who can afford our products. A part from this, since we importing a lot of goods from china
this is the right place with “Sea port near to china” and facilities of “healthy transport” to
all other cities. Assembly Garages also built in Chennai and from here finished products are
transported to distributers of other cities.

DISTRIBUTION SYSTEM

ONLINE REGULAR

Sale through Official Website is also DISTRIBUTER

done to avoid the Distributor and
Dealer margins.
DEALER

Since these products and brand is new to the market, these two distribution systems are only used to reduce
initial investments. Official Show Rooms, Franchises are avoided for now. (Management, 2000)
 19

10. PROMOTIONS AND BRANDING

ADVERTISING

PRE-LAUNCH POST-LAUNCH

HIDDEN INFORMATION ABOUT PRODUCT PROVIDE CLEAR INFORMATION ABOUT PRODUCT

 Teasers creating excitement in  Creative ads targeting areas like

customers and making them to Heavy Traffic Problems, Parking
think what is the product. Problems showing this product as
 Holdings near Corporate hubs and solution.
colleges in metro cities.  Print Media like news, Maxines etc.

TV ADS, YOUTUBE ADS, GOOGLE+ ‘n’ FACEBOOK PAGE,

PRINT ADS, etc.

EXAMPLE AD CONCEPTS
 A man converting his bike into trolley in heavy traffic jam while all
other are stuck and walking with his trolley bike on Footpath.
 Man or Women rolling her roller mini into a Shopping mall while
others parking their vehicles.

 As this is a new product and a new brand promotional activities are taken as major
priority in this product launch.
 All the ads, activities are concentrated towards capturing the attention of customers
and reflecting the advantages of our products. (Mahim Sagar, 2009)
 20
EMI PLANS FOR EMPLOYEES

SALES PROMOTIONS PRODUCT DEMONSTRATION CAMPS

TRADE SHOWS PARTICIPATION

 For promoting sales of the products EMI payment plans are provided to support the
employees financially.
 Campaigns near companies and colleges are conducted to make the people experience
the value of products.
 Participation in trade shows gives free advertising of our products. (Management, 2000)

SOCIAL WEBSITES

REVIEW PORTALS VIRAL MARKETING

BLOGS

 In a country like India where word of mouth is very powerful Viral marketing is best
source to make a positive impact in public.
 Most of our target market will use the social networks which can be used for reaching them.
 Indian Review Portals like Autogyaan plays a crucial part since people are looking through their
reviews before buying products. (Management, 2000)

Here the marketing Cost is included in the product cost so there will be no extra cuts in profits for
promoting the products. This increases the flexibility in reducing cost of product by reducing its
promotional expenses.

DIFFERENTIATION
When compared to other products in market Roller bikes have
their own differentiation factors.

 Innovative Engineering design which concentrates on the needs of people.

 High quality E-bike experience.
 Premium feel in case of Roller Rhine.

BRAND TAGLINE: Roller Bikes ‘Innovations for U’

PRODUCT TAG’s: Roller Mini ‘Sleep with It’.

BRAND PROMISE: “Providing innovative solutions for your movement”.