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by-
Akshata Ubhayakar
Prajakta Hate
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 Phase I: Discovery
 Phase II: Feasibility analysis
 Phase III: Viability
 Phase IV: Creating the business plan
 Phase V: Launching the business
 



Ôhe process of using creative skills to identify a
new innovation --- (a product, service, process,
or marketing method) ---which is often based on
something already existing in the marketplace.

 List all the ideas in no particular order.

 Eliminate those ideas that can͛t generate a
profit and don͛t fit the business model very
well.
 Review the remaining ideas and choose the
one that inspires the most passion and
enthusiasm.
 

 


Ôhe entrepreneur develops an idea into a business
opportunity or business concept that is then
tested in the market through a process of
feasibility analysis.

Ôhere are actually four areas which are tested in

the feasibility analysis:

è Ôhe product/service
è Industry/market/consumer
è Founding team
è Financials
 
 
 Ôesting the business concept in the real world
is what actually determines if the business has
viability. Ôhus, the business must actually be
launched and operated in the environment to
determine viability.

 In a business, the term viability is the point

when the company is able to generate
sufficient cash flows to allow the business to
survive on its own without cash infusions from
outside sources such as the entrepreneur's
own resources, investors, or a bank loan.

  


 
 Developing a product, service, process, or
niche that has not existed before.
 Opportunity recognition requires high levels
of creativity.
 Ôypically, opportunity creation involves an
invention process that is characterized by four
activities:
- connection
- discovery
- invention
- application
 
  


 
 
 
 occurs when two ideas are brought
together

 

 happens once a connection has been made.
It is actually the result of the connection in the form of
an idea.

  

are the product of turning an idea into a
product or service.

   
 comes about when the inventor is able to
apply the invention to a number of different uses or
applications in a variety of industries and situations.
 
  



 Pre Start-up
 Start-up
 Growth
 Maturity
 Rebirth or Decline
 
  



Ôhree key issues in the pre-start-up phase:
1) Ôesting concept feasibility
2) Developing a business plan
3) Acquiring resources (finance and personnel)

Ôhree key issues in the start-up phase:

1) Finding customers
2) Building a structure
3) Generating positive cash flows

  



 

 
Likely customer
 Check the availability of customers and a market
of sufficient size to make the concept feasible
 Potential markets available to the business
 Demographics and psychographics of target
market
 Profile of the first customer
 Customer demand for the product
 Ôriangulation of demand figure for estimating
demand
 Ôhe benefit of your product/service to the
customer
 Determining how the benefit be delivered
Ô 

 
  |
 Cost of acquisition ʹ Rs. 1 lac
 Ôo carry 4 adults
 Intracity transport
 Weather proof
 Comply all Indian safety norms
 



Õ I saw families riding around on scooters with
kids standing up and the mother carrying a
baby sitting pillion and decided to do
something about it. It started as a quest for an
affordable transportation solution͟
-Ratan Ôata




 

 
 Low-cost, adhere to regulatory requirements
and achieve performance targets such as fuel
efficiency and acceleration capacity.
 "We didn't want an apology for a car,"
 "We were conscious of the fact that whether
it was a Rs. 1 lakh car or not, it ought not to
have looked like a one lakh car."
- Ôata Official
 

 
 Factors affecting set up of manufacturing
Plants-
 Pune and Singur ʹ Political unrest.
 Moved to Gujarat ʹConnectivity to highways,
proximity to ports, existing suppliers base due
to General Motors.
 1162 acres of land from Gujarat govt.
 Availability of manpower ʹ around 10,000.
 Advanced technology of Ôata to produce a
cheaper car.
 
 
 Produce 2.5-3 lakh cars annual and expand to
5 lakh cars p.a.
 Ôax concession.
 Subsidies without any stamp duty, registration
and transfer charges.
 100% exemption on electricity duty.
 Availability of cheaper raw materials.
 
  


 

 Ôhe design team initially

came up with a vehicle which
had bars instead of doors and
plastic flaps to keep out the
monsoon rains. It was closer
to a quadricycle than a car.

 Build a proper car, not an

upgraded scooter on four
wheels or anything flimsy or
cheap-looking.
 
  


 Ôhe car was developed in Italy͛s Institute of

Development in Automotive Engineering
 Low cost 4 wheeled ace truck in May 2005
 j

 Stylish looks  Powertrain at rear
 Mono volume design  Rear wheel drive
 Roomy passenger  Minimum weight in
compartment its class
 Best in class leg  High fuel efficiency
space and head  Meets all safety
room regulations
 Comfortably seats 4  Eco-friendly: low on
persons emissions (co2 <=
110gms/km)
 ˜
Ô
˜  



Price  Fibre body
Mileage  Low suspension
Style  Light weight
Brand name  Not suitable for hilly
First innovation areas
Delay due to Singur


  
Ô

 Bikers, auto rickshaw &  Other competitors
second hand market Ôraffic congestion
New regulation
Rising petrol prices
 

 

 Huge potential because car penetration is just

7 per 1000 people.
 Ôargeted the car as the least expensive
production car in the world-aiming for a
starting price of Rs.1 lakh
 Providing tools for local mechanics to
assemble the car in existing auto shops and
new garages created to cater to remote rural
customers.
 

 
Segmentation: Variable use
Geographic: Rural and urban
Demographic: Family size and income
Behavioural: Benefit and user status
Ôarget market: Executive two wheeler segment,
second hand car user, middle and lower
income group
Positioning: Car for the masses
 

 
Pricing-
 Ôarget costing method.
 Penetration pricing.
 Low pricing policy with minimum profit
margin.
 

 
Promotional activities
 Publicity campaigns:
- One lakh car by mouth to mouth publicity
- Auto expo 2008, Delhi and Geneva
- Ôhrough print and electronic media
Ô