Introduction to marketing nikita ,samina,samira
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Transcript of Introduction to marketing nikita ,samina,samira
the
Design managers Nikita Iyer
Samina Rahman
Samira Jain Strategic design Management 2011-13
National Institute of design
Mentor: Deval Kartik
Introduction to Marketing: Bike Rental Service
Dial a cab/rickshaw
Florists
Pawning
Event management
Parlours
Dry cleaners
My dhobi
Pet grooming
Donation
Booking tickets
Cybercafe
Housekeeping
Photocopy
Banks
Transport
Food carts
Tour guides
Portfolios
Matrimonial
Online selling Jyotish
Pandits
Rentbikes/cars
Charging points
Identifying the
Need
Stated needs: Inexpensive mode of transport
Real needs : Low cost,fast,safe,pollutionfree,personal
Unstated needs: Good services - Pre and post
Delight needs : Added benefits
Secret needs : Friends say, “Good deal !!” the
Need
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Having more disposable income at hand, Indians increasingly prefer to travel
in the comfort of their own private vehicles.
Ownership of vehicles is also associated with prestige in society, and hence
low-income families aspire to trade-up from cycles to two-wheelers, and
middle-income families aspire to trade-up from two-wheelers to cars.
Among two-wheelers, motorcycles are popular among young, college-going
students and professionals, as it gives them a sense of independence and
style.
India is the world’s largest two-wheeler market after China.
http://www.portal.euromonitor.com
PhatPhatia Rent-a-Bike is a start-up in collaboration with
universities/colleges, that provides cheap personal means of
transport to college students.
Our core benefits are:
Cheap transport
By competitive pricing with public means of transport
Independence
Saving on time and dependence on different modes of transport
Convenience
Errands/field study/emergencies/having a good time
Added benefits:
Packages
Availing more hours or more distance
Appointment based bookings
Regular Servicing of bikes
Helmets provided
the
Service
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Vision
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Short –term goals:
1.Recover initial investment by reaching out to students
2.Increase operations
a. number of Bikes
b. number of Offices across the city
Long –term goals:
1.To be recognized as a dependable brand for our target
customers
2.To establish a bike rental service in second tier cities such as
Pune/Jaipur/Gurgaon and expand business to the metros.
College students
Age Group: Above 18 years
Education Profile : Pursuing Undergraduate/Postgraduate courses
Eligibility: License holders
Location: College students living in apartments/hostels
the
Target
Customer
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ID Name: Prateek Shankar Dixit
Age : 24 years
Education Profile : Pursuing Postgraduate course in NID
Location: Hostel resident in Gandhinagar
Status : Upper middle class
Resident city : Nagpur, Maharashtra
Monthly allowance : Rs.5,000
Leisure : Movies, food, bike rides
Work : Sourcing material
Photoshoots
User research
Field study
Field study
User research/Market Research
Sourcing material
Odd jobs/Errands
Emergencies
Road trips
Short trips
Surveys
Visiting Restaurants/Coffee
shops/Multiplexes/Malls/Book stores
the
Market
Segmentation By Usage
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Herd mentality : One’s decision influences the other
e.g-road trips
Peer pressure One friend in the group owns personal
transport
The “cool” factor To be in the thick of things/to show off
Independence Current trend of owning personal
means of transport
the
Market
Segmentation By Behaviour
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Local transport(autos,share autos,buses,jeeps)
Personal vehicles (cycles,scooters,motorbikes)
Cycle rentals
Friend’s vehicles
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Competitors
Direct
Indirect
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Lifts
Walking
Since Phat-Phatia is a Start-up,the service is in its
Introductory stage in the Product Life Cycle
Therefore,
Initial costs are very high
Low sales volumes
No similar service providers
Demand has to be created
Customers have to be prompted to try the product
Low profit margin
the
Life
Cycle
Stage
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Revenue
Model
EXPENSE
Cost of 1 bike (Honda Dio) Rs. 40000
Total bike cost (10 bikes) Rs. 40000*10 Rs. 4,00,000
Cost of one helmet Rs. 500
Total helmet cost (10 helmets) Rs. 500*10 Rs. 5,000
Space rental per month Rs. 25000
Advance for one year Rs. 25000*12 Rs. 3,00,000
Insurance premium (per bike, p.a.) Rs. 1000
Total premium (per annum) Rs. 1000*10 Rs. 10,000
Servicing contract per bike (per annum) Rs. 1500
Total servicing contract Rs. 1500*10 Rs. 15,000
Computer Rs. 20,000
Barcode reader Rs. 2,500
Programming and system setup Rs. 5,000
Miscellaneous (phone, electricity connection
etc.)
Rs. 20,000
TOTAL Rs. 7,77,500
Required Initial Investment
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Source:
Loan = Rs. 10,00,000
Duration = 5 years
Rate of Interest = 10%
Total amount top be
repaid at the end of 5 years = Rs. 15,00,000
Payment per year = Rs. 3,00,000
Payment per month (approx.) = Rs. 25,000
Monthly Expenses (for 10
bikes)
Interest per
month
Rs. 25,000
Salary A Rs. 10000
Salary B Rs. 5000
Spare parts
repair/change
Rs. 100
Bike
depreciation*
Rs. 6750
Misc Rs. 2000
TOTAL Rs. 48,850
*Calculating depreciation:
Cost of the bike = Rs. 40,000
Cost of second hand bike – after 3 years = Rs. 15000
Depreciation = 25000
Per year = Rs. 8000
Per month = Rs. 675
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For bike rent calculation:
Total Fixed cost (for 10 bikes, 30 days) = Rs. 48850
Fixed cost for 10 bikes (for one day = 48850/30
= Rs. 1628.33
Fixed cost for one bike per day = Rs. 162.8 = Rs. 163
Bike rental (w/out petrol) = Rs 165 per day (10 hours)
Bike rental per hour = Rs 16.5 per hour minimum*
*to recover minimum fixed cost on bike
For shorter distances = Rs. 20
For longer distances = Rs. 18 & Rs. 17
Petrol cost = Rs. 70 per litre
Bike mileage = 50 km per litre
Petrol cost = Rs. 1.4 per km
Calculated/ charged at Rs. 1.5 per km for petrol
Rental calculation and approximation:
1 hour or 5 km = (20)+(1.5*5)
= 20 +7.5
= 27.5 => Rs. 30 MINIMUM RENTAL
2 hours 30 km = (20*2) + (1.5*30)
= 40 + 30 = 73 => Rs. 75
5 hours 50 km = (17*5)+ (1.5*50)
= 85 + 75
= 160
12 hours 100 km = (12*16.5) + (1.5*100)
= 200 + 150
= Rs 450
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Duration Distance Rental
1 hour Less than 5 km Rs. 30
2 hours Less than 20 km Rs. 75
5 hours Less than 50 km Rs. 160
12 Less than 100 km Rs 450
Extra Charges:
Per Extra km = Rs. 2
Per extra hour = Rs 20
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Rental
Scheme
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Promotion
Strategy
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Physical media
(graphics on)
Bike
Helmets
Key chains
T-shirts
Badges
Fridge magnets
Bags
Digital media
Phat Phatia Website
Social netwroking
sites
a.Facebook
b.Twitter
c.Linkedin
Blogs
Short Messaging
Services
E-mail (tie up with
colleges)
Print media
Posters in colleges
Postcards
Ads in college
magazines
Special Packages
Book more bikes-avail offers
Get along another rider and get a km free!
What we relate to bike rides:
Peace
Thrill
Fun
Happiness
Freedom
Liberation
Holidays
Road trips
Sunny days
Chilling
Relaxing
Speed
Hair flying
Wind through the hair
Independent
Convenience
the
Brand
Identity
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Logo
the
Brand
Identity
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Youthful
Energetic
Happy
Friendly
Bold
Adventurous
Jovial
Dependable the
Brand
Personality
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“ Of the students, by the students, for the students ”
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Brand
Essence
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Brand
Positioning
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Brand positioning is a medium through which our
organization portrays what it wants to achieve for our
customers and what we want to mean to them.
Phat Phatia provides our target customers , convenience,
customized packages and solutions for all maintenance
service needs.
It intends to stay with the proposition of “Of the students,
by the students, for the students”.
Uniqueness of the Brand :
Novel idea of introducing non-geared bikes for rent to
college students
Similarity with competitive brands :
Competition exists only in the tourist market which includes
issuing of bikes to visitors in that city
Reasons for using our brand :
Relatively cheaper than public transport
Faster medium than walking upto a store during
emergencies
Brainstorming:
Unwind by zipping around-Unzip!
Baiging!!
Bye-king!
Ngggggggg!!!!!
Like bike
Phat-phatia/ Fat-fatia
the
Brand
Communication
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Visuals
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Brand
Communication
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Posters to be put up in colleges
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Brand
Communication
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A page on highly popular social networking sites
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Brand
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Business Cards
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Limitations
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Saving money tendency
Too many people at once(law doest not permit triple
sharing)
Laziness
Weather – Monsoon, heat, dust
Pollution
Bad roads
Non-drivers
Non Licensed drivers Control petrol theft
Thank
you
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