Assignment Taken

Prepare A market entry, distribution strategy and brand building plan.

Case Understanding

Renewable energy has huge potential in the automobile industry of India. India will have to figure out its own path. Its EV fleet is small -it sold 7.6 lakh vehicles in FY19, dominated by two-wheelers (16.4%) and three-wheelers (83%), says a PwC report. by this report we can see huge and great jump in this industry near future. "the government target for 30% adoption of electric vehicles by 2030 will be majorly driven by the electrification of two-wheeler, three-wheeler, and commercial vehicles. Lower rate of adoption of electric vehicles in the passenger vehicle segment is expected to have a limited impact in achieving the targets." we are a team of 8 people who are budding entrepreneurs and wanted to star a business in electric vehicle sector. we have corpus fund of 46L (personal investment )& 60L loan at 16% rate. we have to open startup with maintain our personal expenses. our team consist of 2 of your team members are mechanical engineers & 1 member is an electrical engineer. Your startup is also having 1 computer science graduate. 2 team members have left their marketing jobs from reputed automobile companies. Remaining 2 members have recently completed their post graduate management program.

BCS Solution Summary

in this report we includes the market launch strategy , distribution network and brand building plan for the growth of the organization. our steps in the organization contributes to brand value as you see below. 1. VELO comes with new technique for launching a startup at low cost. our street launching generates the excitement in the audience. 2. VELO's distribution network is quite simple there is no role of wholesaler or any agent 3. VELO are comes with a framework or standard operating procedure for brand building this procedure name FIVE A's OF VELO a)awareness b)appeal c)ask (not purchase) d)action e)advocate

Solution

                             

        Value Electric Life Operations

                   VELO MOTORS PVT. LTD.

Tagline :            “GIVE LIFE TO YOUR LIFE”

Introduction of startup (VELO)

VELO is electric vehicle startup which starts from Bangalore by the team of 8 people . initially Startup gives importance to lower price vehicles for middle class family . they find huge hike in electric vehicle business. Because this business in the sunrise position in adoption curve and different initiatives by govt. towards electric vehicle . encourage us to do this business.

**Product segment: Two wheeler bikes & scooty

**Funds to start business

Personal investment by 8 members is    4600000

Bank loan (debt)                                     6000000

investment from investort                        2000000

                           Total Funding           12600000     

**U.S.P. of VELO

1. We provide a secondary battery which gets recharge by mechanical power of the vehicle it self.

2.We are providing on an average 50% higher range cover per charge than average range in market in each product.                                                               

**SWOT analysis of startup

Strength:

1. Very effective & efficient team
2. Early access in electric vehicle market
3. Understanding of consumer behavior

Weakness:

1. Lack  of personal investment
2. Big companies who are already in
3. Infrastructure

Opportunities:

1. Government subsidy & scheme of promoting electric vehicle
2. Demand increases due to cheaper cost
3. Huge jump in near future
4. Lower taxes

Threat:

1. Lack of funds
2. Rise in cost of electricity

:) MARKET  ENTRY  STRATEGIES OF VELO

STEP 1: Street launching  

VELO comes with the new model of launching vehicle. The VELO’s first launching will be on the street of Bangalore. This open sky launching helps in marketing of product as well.

Two Wheelers

1. Eco SKUTI Lite (lower range scooter)
2. Scoocity R100 (mid range scooter)

STEP 2: One free ride at launching event

After the launch of models, our company gives one free ride at launching event to people around street for experience the quality of product.

STEP 3: Event with hash tag campaign

Event will launch with the beautiful hash tag campaign

          #RIDETHEGREEN & #VELORIDE

STEP 4: Tell them to share their experience

After a free ride, we tell them to give testimonials and share their experience on social media by tagging our company. It will also help in building brand and marketing.

STEP 5: Give dealership

After this successful launching event, demand of our products will increase and most of the dealers are ready to take dealership. VELO gives only four dealership in the Bangalore city. 

STEP 6: Use a technique of side walk chalk marketing

Use of sidewalk chalk marketing in front of dealer’s showroom by taking permissions from Municipal Corporation. It would be unusual to see this. And customer will attract easily.

STEP 7: Use of local marketing tools

1. Print media
2. Digital marketing etc.

STEP 8: Comes with a schemes to attract more customers

a)First three service of vehicle will be free

b)Make your first purchase of vehicle and take a free training

c)Take a part in contest (knowledge of electric vehicle) and wins a pre-launching sale

• DISTRIBUTION STRATEGY

VELO’S distribution network contains 4 stage of process manufacturer to customer. It is quite simple to see because there is no roll of wholesaler or any agent .

STAGE 1: MANUFACTURER

Where the product (vehicles) are produced for distribution among consumer.  

STAGE 2: CARRY & FORWARD

It is regional executive which deals with all the dealers in its region.

STAGE 3: DEALER

It is also called retailer, it is the place where customer can directly buy a products .

STAGE 4: CUSTOMER

It is the person who purchases a product for his/her use.

• BRAND BUILDING STRATEGY

VELO made a Standard Operating Procedure for brand building. It talks about every touch points and engagement of the customer with VELO.

It is a frame of FIVE A’s . this framework contributes to increase in the brand value.

• FIVE A’s of VELO

1.AWARENESS: it is also called as brand awareness. It means how can we spread awareness about our company & product.

-->strategies for AWARENESS:

1. Street launching event is the part of the spreading awareness
2. Digital marketing ad campaign
3. Print media ad campaign

 

2. APPEAL: it means the customer who are connected with us from any medium. Like Facebook, Instagram, YouTube, twitter, or website.        

>strategies for APPEAL:

1. Daily updated content of social media.
2. Personal social media ads.
3. Problem solving videos about purchasing vehicle.
4. Activities to engage.
5. Posting testimonials of satisfied customer

3.ASK (NOT PURCHASE): it means the customer ask to a dealer or company about the purchasing of the product . it showing interest.

-->strategies for ASK(NOT PURCHASE)

1. Content marketing
2. Personal message about the new schemes
3. Send greeting and build trust
4. Give access of pre-launching session of vehicles
5. Posting testimonials of satisfied customer

4.ACTION: it means the customer who purchase a product . in this every strategy is all about to retain customer  

-->strategies for ACTION:

1. Give offers relating to service regarding product
2. Give 24*7 call support
3. Help to resolve problem.

5.ADVOCATE: it means the customer who are satisfied with our service . this type of customer is very helpful to do word of mouth marketing of company. They are advocate for company.

                -->strategies for ADVOCATE:      Launch a program which is called as “INDEPENDENT BUSINESS EXECUTIVE”. Advocate can become IBE for company and earn money by every sales he/she done

• MANAGEMENT PRICIPLES USED IN IT :

1. Science is not rule of thumb (scientific principles of management): management is not rule of thumb. it is a science where everything is used or implement by the proper analysis.

2.Scalar chain (general principles of management): As we can see chain or network of distribution of goods.

3.Unity of direction (general principle of management): Every member of startup works together with one goal of the expanding the company.

 

Conclusion

in this era of the electric vehicle it is difficult to launch a 4 wheeler in India because of its safety and security measures . so VELO comes with two wheeler launching after some times when companies financial position are good company will also come with the new product line expansion (three wheeler). 1. when company launches its first product line , company comes with new model of launching "STREET LAUNCHING" in this street launching event company gives a free ride and tell riders to share there experience in the social media and give testimonial interview as a feedback. from this event company gains its first brand value in front of customers 2. distribution network of VELO is that manufacturer-->carry&forward-->dealer-->customer 3. company has a own standard operating procedure for brand building. which is called as FIVE A's of VELO

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