Assignment Taken

Prepare a market entry, distribution strategy and brand building plan

Case Understanding

 Case Understanding • Renewable energy in India has a great scope, and automobile sector plays a huge role in this but still India is at an infant stage. The market share of electric vehicles in India is lowest compared to all other countries. Out of 230 million registered vehicles in India the government of is aiming to cover 30% of market share of electric vehicles till 2030, the government is promoting Indian market towards electric vehicles to have more number of EV two wheeler, four wheeler and passenger vehicles by 2030.

BCS Solution Summary

 Solution Summary 1) 4P’s (Product, Price, Place, Promotion) 2) STP(Segmentation,Targeting,Positioning) 3) Brand Identity Prism 4) Brand building and communication 5) Market entry and Distribution channel.

Solution

• Solution to the problems

 

• Vayu is a start-up consisting of eight dynamic, ambitious and hardworking team members who as team dreams of changing the electric vehicle landscape of the country. The team is focused into developing two-wheeler electric scooters with state-of-the-art features at affordable price. The name of the start-up signifies fast and flexible like air. The model names depict the smartness through electric system. The tagline of “Ab Smart Hoga India” denotes the effort made by the team to help India gain the leadership position in the worldwide revolution towards electrical vehicles and at the same time the smart features embedded in the scooter.
• The long-term focus is to be the largest and most admired electric two-wheeler maker of India in a sustainable energy efficient way.
• The start-up aims at launching two models- Elektra and Elektra +. Both the models are not constrained to any gender. Elektra is a premium model that targets the young to middle age tech-savvy customer, belonging to Social Economic Category A1, A2, who would want to portray this scooter as a part of their style statement and would enjoy fast rides with their near and dear ones. On the other hand, the model is perfect example of conjunction of efficiency, smartness and affordability. Common people, who wants an economic ride with latest functionalities. The targeted customer segment would be college goers, other people belonging to Social Economic Category B1, B2, and B. 
• The primary objective of the company is to secure VC funding to arrange enough money for R&D, manufacturing and marketing expenses.

 

1. 4P’s (Product, Price, Place , Promotion)

• Today, with advent of new technologies and with increased competition, it is found that several organizations are deploying different and innovative marketing campaigns to increase the overall sales of the organization. The top-level management of these organizations need to launch new marketing strategies that will help them overcome the market challenges, market competition, and will also fulfill the sales objectives of the organization.

• Product- The organization will be launching different product models that will have different performance capacities. We will launch two models at initial face that is VAYU Elektra and Elektra +. Second, these products deliver high performance, offers other functionality compared to other vehicles, and also saves on pollution. Apart from design, technology, and quality, the product also offers safety and convenience to the customers. Morever we provide various USP in our vehicle that the consumer thinks easy and safe ride with full eco friendly product is our main concept. Our both models deliver high quality performance for consumer satisfaction. Today, it is found that the issue of pollution related to different vehicles has increased in a given environment. Hence, they might switch to such electric vehicles that can provide with similar performance, quality, and also assist in controlling pollution in a given environment

 

• Price - The pricing of the product should be kept in alignment with the prices of other vehicles. Apart from the functionality of the given product, the top-level management can highlight certain features of the product such as technology, design, style, and other such features. It will help the company to remain competitive in the market environment and subsequently achieve more sales for the given products in the organization. Our both models VAYU Elektra and Elektra+ is positioned at two different prices, our first model VAYU Elektra will be available at a range of 65 thousands which is mainly aimed towards mid priced which is affordable to the customers and our Premium model Elektra+ will be available at 1 lac which is a premium segment and is affordable by high income society. Both our models represent status and innovation and prices are kept related to the market research and competition.. The customers will be able to afford such products and hence the company can thereby target to a larger segment.

 

• Place - The organization needs to identify the places through which they will be able to sell these products. Presently VAYU will start its sales and distribution in two states Bangalore and Hyderabad. Bangalore is the place where our headquarters is located as the adaption of electric vehicles is more in that state keeping early adaption in mind Bangalore will be our first state and second state is Hyderabad because no state can be more better than Hyderabad to introduce new EV brands its well innovated and acceptance of new EV vehicles is easy morever there are various government support available keeping that in mind in the initial years we will be focusing on these 2 states. It will thereby help them achieve desired sales targets across different stores in multiples cities of a given nation. The marketing team, however, needs to carefully choose each of the store locations and also provide them with necessary support services to exceed the expectations of the customers. After we are well settled and accepted we will expand it to various states keeping in mind the acceptance rate and consumer behavior.

 

• Promotion - This is one of the major elements of the marketing mix and plays a vital role in the sales of the products. The company needs to focus on the aspects of advertising and promotions and thereby prepare the marketing plan to sell the electric vehicles in the market. Advertisements will help the organization to increase the awareness levels of the products in a given market.
• As a new entrant in the market we will use various promotional means to promote and advertise our product.
• The first thing will be digital marketing as we will target large number of audience by updating them on regular bases to generate more leads. This form of advertisement will help us to reach mass audience in shorter period of time.
• We will also give promotional ads in newspapers which shows and define our USP thus helps to create more demand in the market. The consumers will come to know about our product and word of mouth will spread thus we will be able to deliver and reach the audience in untapped areas also.
•  Further, we will also need to look out for promotions through in-store advertisements and thereby capture the attention of the audience. It is important to communicate the desired message of advertising and promotions through such means to these customers to achieve required sales targets for the organization.

 

 

 

 

1. STP (Segmentation,Targeting,Positioning)

• Segmentation

• Demographic Segmentation- According to current market scenario the use of electric vehicles by both the genders are increasing rapidly. It was notices that 70% of electric vehicles were used by male population. In 2011 21% of female population were using electric vehicle which rose to 27% in 2015 and is continuously increasing. It is to be assumed that in near future 60% of electric vehicle owners will be females.

 

 

• Behavioral Segmentation

• According to current scenario the market is slowly shifting towards electric vehicle. Presently only 7 to 8 percent or more less electric vehicles are adopted. But it is to be predicted that by 2030 all over the world 60 percent of market share will be covered by electric vehicle.

 

 

 

 

 

• Psychographic Segmentation

• It is to be predicted that in future the sale of mid and low priced electric vehicle will be more than 50 % than compared to premium models. It is also predicted that consumer are more attracted towards electric four wheeler compared to two wheeler and passenger vehicles. It is also predicted that sale of electric cars will be 80 % and sale of electric scooters and passenger vehicles will be 10 percent each.

 

 

• Geographical segmentation

• According to the current world market the most number of electric vehicles are manufactured and used by china, followed by U.S and France. But India is also aiming to cover market share by 30% till 2030

 

 

 

• Targeting

• While selecting target marketing we have to keep in mind the consumer’s perspective we have to shift and manufacture the product according to consumer’s choice. Thus there are various targeting segments like income, type of buyers, innovative buyers
• Here we are taking 3 different types of BEV buyers they are:

1) Price conscious buyer- This type of buyer is always careful about the price. They may or may not agree upon a certain price for them price comes before quality.

2) Affluent buyer- This type of buyers adopt the vehicles quickly, both price and quality are taken into consideration, they purchase what suits them the most.

3) Demanding buyer- This type of buyers are early and eager adopters they are ready to pay a price higher or lower whatever it is, they are more focused on quality of the product whatever the price may be, and they have good income level.

 

 

 

 

 

 

 

 

 

 

• Positioning- The electrification of transport through electric vehicles (EV) and based on a clean electric mix is the most effective, efficient and sustainable way to decarbonizes this sector and, therefore, a long-term strategy is required for the development of the electrification of transport thus advocates efforts aimed at achieving a level playing field for the promotion of electric vehicles as compared with older vehicle technologies in those jurisdictions where there is disadvantageous discrimination against electric vehicles.

Given these developing themes, it is natural to consider how an investor might position themselves to benefit.  On the face of it, a very appealing story can be constructed around investing in things for which EV adoption should drive increasing demand.

Thus we will take following points into consideration for positioning of electric vehicles.

• Reducing economic and regulatory barriers that slow down EV development
• Seek to ensure that electric vehicles represent a reasonable share of the total number of new vehicles purchased
•  Promote the deployment of charging infrastructure on public roads, allowing the EV market to take-of

 

 

 

1. Brand Identity Prism for VAYU EV vehicles- The coming age for the brand becomes a huge challenge as the brand needs to differ itself and prove stable identity in the market. In the field of EV there is cutter competition so the brand needs unique USP and the brand should represent wealthy, innovative and ideal identity in the market

• Brand identity includes 6 components

• Physique
• Personality
• Relationship
• Culture
• Reflection
• Self Image

 

 

 

 

 

 

• Our brand Vayu Elektra represents an innovative Brand identity

 

1) Physique- Iconic propeller logo, Classy look

2) Personality-Young, Exciting, Passionate

3) Relationship- Sheer driving pleasure

4) Culture- Indian performance luxury

5) Reflection- Wealthy and dynamic

6) Self image- Modernity and innovative

 

1. Brand Building and communication - Before moving ahead we will now clarify what our brand stands for. We will take five main aspects to build strong brand strategy and communication

• Discovery( Research and analysis)
• Envision(Brand strategy)
• Realization(Brand expression)
• Execution(Finalize and test)
• Management(Manage Assets)

• Explanation

1) Research and Analysis- We as a electrical vehicles company took internal interview for needs and perceptions. We considered what existing EV brands were competing in the market. Proper communication and marketing tools were taken into consideration. EV as future was taken on a serious note but for that we did the survey of market trend we went through a survey drive which gave us results about the consumer’s perception so we can discover our brand through consumer’s eyes.

2) Brand strategy – Synthesize the learning’s and develop brand strategy, positioning platform and need to draft brand attributes. We need to define what the brand needs and at which level the brand stands, we need to define where we stand in the competition of electric vehicle and where we are lacking.

3) Brand expression- Need to design brand identity. We as an electrical vehicle company need to define its USP to create a market place, need to develop marketing communications alternative approaches.

Brand can be expressed by our USP- Smart screen, flexible battery, charging facility, security mileage, speed, space, Anti theft through cloud based app, VMS (Vehicle management system).

4) Finalize and test- To finalize brand solutions, prioritize and design to all applications, test to assure quality and functionality.

5) Manage the assets – Build synergy around new brand, implement launch strategy with nurturing brand evangelists by maintaining quality control also track response and optimize program.

• The main point that our brand logo reflects is we have an eco friendly body of our scooter. Our brand logo depicts we are smartly connected towards eco friendly environment

 

1. Market entry and Distribution channel:

• YUVA Elektra will follow a different market entry that defines our brand a strong new competitor. Market entry is a critical part because our entry defines our product and way of communicating.
• Our brand will follow pattern which creates a constant buzz in the market.
• YUVA launches its first product YUVA Elektra in its first launch ceremony

> Thus there is Hype created in the market

> In our very first ceremony we notify customer pre hand of our next coming model YUVA Elektra +

> We launch our first two models in two intervals

> Notify the market pre hand thus the buzz in the market remains continuously

> Than we launch our second model at second launch ceremony

> But we will notify our customer’s pre hand about our next coming model in current launching event

> Thus the market remains excited and loyal to our brand

> Thus the brand presence remains in the market

 

• Distribution Channel:

• As a new entrance in the market with two new models our target in the initial years would be complete B2B marketing and distribution channel and partners will be the current business distributors, we will tie up with the business dealers to sell our product and marketing will also be done by them purely.
• We just pay the commission of the business dealers selling our products because as a a new entrance tying up with Business dealers would be the best option for us as this will increase our marketing and boost up the sales.
• It is cost effective
• It is easy to measure
• It increases brand awareness
• It can earn more qualified leads
• It can start generating results quickly

 

• Once we start to get a decent amount of sales, we would start with authorized dealers or even think of expanding our reach by franchise model, store expansion, government promotions.

Conclusion

Conclusion  We VAYU as an electric vehicle company will serve the market with innovation and with state of art feature at affordable price. We pledge to increase the acceptance of electric vehicles in coming years with providing best driving experience and Sheer pleasure. Our company is a determined goal seeker aimed towards providing best, innovative and affordable electric vehicle. We believe in Ab smart banega India. Management Principles Used  Division of work -According to departments  Authority and responsibility- Assigned to top level and managers  The degree of centralization- To maintain hierarchy  Order- by providing the employees with the right guidance and proper information  Esprit de corps – To develop proper communication channel between the departments that helps in maintaining excellence relationship with the customers

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