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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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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Customer

Profile

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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

the

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

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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 ”

the

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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Brand

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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

the

Brand

Communication

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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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