MARKETING

MANAGEMENT
PROJECT REPORT OF
DREAMZ LIMITED
( ELECTRIC BIKES)
SYBMS - - A
 India is the second largest manufacturer of two-wheelers in the
world.

 The total market size of the auto sector in India is approximately Rs

540 billion and has been growing at around 8 percent per annum

 in the two wheelers segment, the sales volumes of Hero Honda,

Bajaj Auto and TVS Motors constitute around 80 percent of the total
sales.

 In the next 2-3 years, the two-wheeler industry is expected to

attract investment amounting to Rs 10 billion.
 NAME: Dreamz Power Ltd.

 DATE OF LAUNCH: 9th October 2005.

 PROMOTERS: Vishal Bhawsinghka

Abhishek Pareekh
Suhasini Poojari
Raksha Shenoy
Shijinth
Prabhakar
Sumashri

 PRODUCT: Unique Battery Operated Bikes, Environmental Friendly

 PROPOSED MODELS: Electro Bike GLX
Electro Scooty
Electro Rick

 PROJECT: New indigenously developed battery operated Two –

Wheelers for the first time in India which will save petrol and is
pollution free.
The Model used for preparing the marketing
strategy by DREAMZ LTD. in the Indian
Market
Product Range

Internal Analysis

External Analysis

Competitors Analysis

Environment Analysis

Marketing Strategies

Future Plans

Conclusion
 CUSTOMER ANALYSIS

 COMPETITORS ANALYSIS

 MARKET ANALYSIS
 Two-thirds of countries consumers live in rural areas and almost
half of the national income is generated here.

 Our nation is classified in around 450 districts, and approximately

630000 villages, which can be sorted in different parameters such
as literacy levels, accessibility, income levels, penetration, distances
from nearest towns, etc.

 An estimated induction of Rs 140 billion in the rural sector through

the government's rural development schemes in the Seventh Plan
and about Rs 300 billion in the Eighth Plan is also believed to have
significantly contributed to the rapid growth in demand.

 Dreamz Ltd. will position on pricing and its all-pervasive cheap

plank.
 CONTD.
 . The Electro Bike MLX will be priced at Rs. 40000
especially meant for guys segment.

 Electro Scooty will be priced around Rs. 25000

designed exclusively for girls, veterans and middle-aged.

 Electro Rick will be introduced as a product for public

transport at a later stage.

 Benefits sought:
‘Customer is the profit, everything else is the
overhead’
 The Indian automobile market is currently estimated at a
modest Rs. 504bn. It is projected to grow at 16%
annually.

 The Hero Honda dominates the market with a combined

share of 48% it a veritable giant in the industry. TVS
and Bajaj Auto are tied at 23% each according to ORG
estimates.

 Honda and Yamaha cater to the premium class, Hero

Honda cater to the popular class, Bajaj and TVS cater to
the popular and economy class respectively.
MARKET SHARE OF THE COMPETITORS

100
90
80
70
60
50
Market Share
40
30
20
10
0
Hero Honda Bajaj TVS Yamaha O thers
 The major players in the domestic two-wheeler industry have
announced robust growth in volumes for the month of December 2004.
The total motorcycle sales of the top three players registered a
54.1% yoy growth to 437,974 units. The major contributor to the
growth was Bajaj Auto, which registered a 100.7% yoy growth in
volumes for motorcycles.
 BAJAJ AUTO- motorcycle sale in last 9 months

2004 Growth (%)

90,532 27.4
87,663 0.5
97,595 18.7
103,260 32.4
106,745 39.6
126,420 32.1
143,491 34.0
154,137 68.9
143,727 100.7
 HERO HONDA-Motorcycle sales in 2004 & 2003

Nos 2004 2003 Growth (%)

April 196,024 134,318 45.9

May 212,177 163,582 29.7

June 200,922 160,889 24.9

July 205,654 143,141 43.7

August 191,635 145,730 31.5

September 217,507 157,583 38.0

October 245,475 207,472 18.3

November 232,021 203,995 18.3

December 230,751 160,191 44.0

 TVS MOTERS-motorcycle sales

Nos 2004 2003 Growth (%)

April 46,881 58,291 (19.6)

May 43,180 63,973 (32.5)

June 48,159 56,444 (14.7)

July 52,958 57,227 (7.5)

August 49020 62234 (21.2)

September 59,172 64,958 (8.9)

October 74,683 61,777 20.9

November 65,066 48,052 35.4

December 63,496 52,464 21.0

 High initial launch cost

 Marketing driven

 Market research

 Brand equity

 Distribution network
STDP OF OUR PRODUCT
 Differentiation is done on the basis of the
marketing mix.

 Product Based
 Price Based
 Promotion Based
 PRODUCT BASED
DIFFERENTIATION
 Product Quality

 Product Features: Pollution noise free two – wheeler

 Economical: Rs. 3 -7 per 100 kms.
 No diesel or petrol required.
 Price range: Rs. 25000 – 40000/- (Inclusive of Tax)
 Extremely safe and reliable to drive.
 No PUC required.
 Battery design: Indigenous and full charge in 60 mins.
 Built in Charger

 Brand Name

 Product Varieties
 PROMOTION & PRICE BASED
DIFFERENTIATION

 Price Based Marketing Strategy

 Promotion Based Marketing Strategy

 Geographic Segmentation:

Segmentation of Dreamz Ltd. is done considering

the consumer market. The major markets in India
for two – wheeler across all segments is
constituted by the western, Northern & Southern
Region. In terms of weight age, the largest sales
came from North, West, South & East respectively
according to ORG Estimates.
 Electro Bike MLX: Electro Bike MLX is specially
designed for the Male Customer Group aged between 18 –
40 years due to the following features:

 More Milage
 Low maintenance
 Economical: Rs. 3 -7 per 100 kms
 No diesel or petrol required.
 No PUC required.
 Battery design: Indigenous and full charge in 60 mins.
 Built in Charger
 Contd.
 Electro Scooty: Electro Scooty is specially designed for
the Female Customer Group aged between 18 – 35 years
due to the following features:

 Light Weight
 Extremely safe and reliable to drive.
 Front & Rear Hand Brakes
 Side Stand
 Low maintenance
 Auto Start
 Pollution noise free two – wheeler
 Comfortable Seating Arrangement
 The company is trying to position its product in
the minds of the customer as a product, which is
fashion oriented as well as economical and is
safe to use.

 The tag line of Dreamz Ltd. is “ Making

Dreams come true.....”.
 Maintenance:
Dreamz Ltd. offers 6 free services on its
motorcycles. The customers must avail these
services after purchase within a year or as per the
below mentioned km range, whichever is earlier.

During the second year, one can with additional

pay of Rs. 5000/- take an AMC, wherein if any
part of the bike is damaged it will be replaced by
the company for free.
 Contd.
 Safety Measures:
It has a password protection.

Customers will be educated on Safe Riding techniques

through various audio visual aids. Safety Instructors will
be imparting riding skills as well as education to the
customers.
 Dreamz Ltd. would be economically priced, stylishly designed, has low running cost, has good battery capacity
and well-developed electronics technology.

 25-80 kms on single charge.

 No tune ups.
 One year guarantee
 Easy recharging
 Pollution noise free two – wheeler
 Economical: Rs. 3 -7 per 100 kms.
 No diesel or petrol required.
 Price range: Rs. 25000 – 40000/- (Inclusive of Tax)
 Extremely safe and reliable to drive.
 No PUC required.
 Battery design: Indigenous and full charge in 60 mins.
 Built in Charger
 More Milage
 Low maintenance
 Light Weight
 Comfortable Seating Arrangement
 Road Shows
 Television advertisements
 Radio
 Print Ads
 Workshops and seminars
 Banners, neon signs
 Booklets and pamphlets
 After sales service
The Actual Cost of Production of our ELECTRO BIKE MLX
Our Manufacturing cost Rs. 20000/-
------------------------
The profit earned
By Manufacturer is: 75% (i.e. 15000)
------------------------
Retailer’s buys
From manufacturer is: Rs. 35000/-
------------------------
The margin to
Retailers is: 14.5 % ( 5000)
-----------------------
Market cost of
the Product: Rs. 40,000/-
 Contd.
The Actual Cost of Production of our ELECTRO SCOOTY
Our Manufactuing cost Rs. 16700/-
------------------------
The profit earned
By Manufacturer is: 31.75% (i.e. 5302.259)
------------------------
Retailer’s buys
From manufacturer is: Rs. 22002.25/-
------------------------
The margin to
Retailers is: 13.62% (i.e. 2997)
------------------------
Market cost of
the Product: Rs. 25,000/-
 Contd.
 The pricing strategy adopted by Dreamz Ltd. for its two wheeler
electronic bikes is PENETRATION PRICING because it is a total
new brand, which is entering a market, which is already facing
immense competition. And breaking this competition and
attracting new requires quality product at low price. Hence our
product will be priced low which will be economical and will
encourage new buyers. Hence we have adopted the penetration
pricing method for capturing market share and establishing
ourselves in the market.
 Dreamz Ltd. will establish its marketing
network in the states of Maharashtra,
Gujrat Rajasthan, Madhya Pradesh,
Rajasthan, Chattishgarh and Goa in the
future. It will then gradually extend to all
the other states in vector two of its project
as detailed in the Product Market Daigram.
DISTRIBUTION
CHANNEL
STOCKIST

DEALERS
DEALERS

SUB
SUBDEALERS
DEALERS

BOOKING
BOOKINGAGENTS
AGENTS
Strengths:
 Fixed capital cost of ownership
 Minimum recurring expenses.
 Convenience of use
 Instant appeal to young fraternity in terms of design
 Maintenance free and low wear and tear
 Pollution free-noise and air (environmental friendly)
 Contributing to national objective and saving

Weaknesses:
 Inoperative in areas where power is unavailable.
 Travel distance restricted to Km per charge
 Battery replacement after 300 cycles of operation.
 Contd.
Opportunities:
 Reduction in oil imports
 Solar power stations for battery charging.
 Light weight plastic grid battery will have an
international market.
 Export potential.

Threats:
 Reaction or competition from existing manufacturers of
two wheelers.
THANK
YOU
Project Report
Prepared By:

VISHAL. D.
BHAWSINGHKA