MARKETING PLAN

Mahindra GenZe

NOVEMBER 11, 2018

TERI SAS
Contributors: Avinash Babu M, Jugal Vyas, Meghanand Ram Gopal, Rajat Khajane
Contents

1. Executive Summary ............................................................................................................................ 3

2. Situational analysis ............................................................................................................................. 4

2.1. PESTLE Analysis ........................................................................................................................ 4

2.1.1 Political .................................................................................................................................. 4

2.1.2. Economical ........................................................................................................................... 5

2.1.3. Socio- cultural ....................................................................................................................... 6

2.1.4. Technological ........................................................................................................................ 7

2.1.5. Legal ..................................................................................................................................... 7

2.1.6. Environmental ....................................................................................................................... 8

2.2 Porter’s Five Forces Analysis ....................................................................................................... 8

2.2.1. Rivalry................................................................................................................................... 8

2.2.2. Threat of new entrants........................................................................................................... 9

2.2.3. Supplier power ...................................................................................................................... 9

2.2.4. Buyer power .......................................................................................................................... 9

2.2.5. Threat of substitutes .............................................................................................................. 9

2.3. SWOT Analysis ......................................................................................................................... 10

3. Marketing strategy ............................................................................................................................ 11

3.1. Segmentation.............................................................................................................................. 11

3.1.1. Geographic segmentation .................................................................................................... 11

3.1.2. Demographic segmentation................................................................................................. 12

3.1.3. Behavioural segmentation ................................................................................................... 13

3.2. Targeting .................................................................................................................................... 13

3.3. Positioning ................................................................................................................................. 14

3.4. Competitive strategy .................................................................................................................. 15

4. Marketing Tactics ............................................................................................................................. 16

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 4.1. Solution ...................................................................................................................................... 16

4.2. Product ....................................................................................................................................... 16

4.2.1. Design ................................................................................................................................. 16

4.2.2. Safety .................................................................................................................................. 17

4.2.3. Convenience ........................................................................................................................ 17

4.3. Pricing ........................................................................................................................................ 18

4.4. Place ....................................................................................................................................... 18

4.5. Promotion............................................................................................................................... 19

4.5.1. First surge............................................................................................................................ 19

4.5.2. Second surge ....................................................................................................................... 19

4.5.3. Third surge .......................................................................................................................... 20

4.6. Play ............................................................................................................................................ 21

5. Financial projections ......................................................................................................................... 21

5.1. Sales revenue ............................................................................................................................. 21

5.2. Budget ........................................................................................................................................ 22

6. Implementation controls ................................................................................................................... 23

6.1. Pre-order review (Milestones, targets) ....................................................................................... 23

6.2. Correction and control mechanism ............................................................................................ 23

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1. Executive Summary

Innovating ahead of the curve we introduce to Indian market Mahindra Gen’Ze’ – standing for Zero
emissions, the newest addition to the broad portfolio of superior products manufactured in world-class
facilities as a sustainable mobility solution. This is in alignment to Mahinda group’s vision of “serving
humanity’s innate desire to Rise our driving purpose: we will challenge conventional thinking and use
all our resources to drive positive change in the lives of our stakeholders and communities across the
world, to enable them to Rise”.

The situational analysis indicates a favourable environment – both on a macro and micro level, where
the Indian market has matured for e-scooters.

Mahindra GenZe e-scooter is an amalgamation of performance, design, and safety. And then some
more. The powerful motor is designed to offer agile, noise free and easy handling with the durability
and toughness of a body-on-frame configuration. Loaded with features, the GenZe comes in single and
dual seater configurations.

The GenZe scooters will be first launched in metropolitan cities then gradually expand to smart cities
and other tier-I cities. Our target customers will consist of university students, young working
professionals and companies offering home delivery and transportation services. The existing
showrooms and service centres would be upgraded to support and interact with our customers and
communicate the strength of this mobility solution.

We aim to transform into a strong competitor to Hero MotoCorp - the market leader in this segment -
by going for aggressive marketing campaign and keeping the prices competitive. The campaign would
spread across various channels to gain a wide outreach and attract maximum sales. With expected
annual sales of 15,000 units the breakeven can be achieved in 2 years.

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2. Situational analysis
2.1. PESTLE Analysis
2.1.1 Political (Significant opportunity, +4)

• Governmental incentives for electric automobiles (opportunity)

National Electric Mobility Mission Plan, NEEMP, 2020, to achieve 6-7 million sales
of electric vehicles and save 9500 million litres of crude oil.

(Source: NITI Aayog )

Faster Adoption and Manufacturing of Electric Vehicles, FAME , Based on NEEEMP

2020, roadmap for a new paradigm in road transportation focussing around hybrid and
electric vehicles

Bharat Stage VI, 2024, an emission standard that will bring much-needed changes in
the Indian automobile industry.

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 (Source: CSE computation based on data provided by trasnportpolicy.net)

Make in India initiative pushing Automotive Mission Plan (2016 - 26) and tax
deduction of 150% of expenditure incurred on in-house R&D (source:
makeinindia.com) encouraging the electric vehicles market in India.

• Global industrial agreements (opportunity)

In October 2016, India signed the Conference of Protocol also known as the Paris
Climate Agreement. Being a signatory to the agreement, India is obligated to bring
down the carbon footprint by 33-55% from the levels recorded in 2005 in the next 12
years. (Source: embitel.com)

2.1.2. Economical (Opportunity, +2)

• Decreasing Lithium ion battery costs (opportunity)

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 Steep reduction in the battery technology costs and increasing petrol and diesel prices
is a major factor for driving the trend for higher penetration of electric scooters. Lithium
can’t be locally sourced but has to be imported prices may fluctuate.

• Availability of skilled labour (opportunity)

Indian automobile sector is well developed and it is easy to get skilled labour at
comparatively lower costs.

• Increase in renewable energy production (opportunity)

Government of India has ramped up its previous target to achieve 225 GW of renewable
energy capacity by 2022, which can indirectly improve the adoption of e-scooters in
Indian market with the reduction in electricity costs.

2.1.3. Socio- cultural (Possible threat, +1)

• Shift towards low-carbon lifestyles (opportunity)

Increased awareness among the urban population in regard to ill effects of pollution is
encouraging them to reduce their carbon footprint.

• Technology and ease of use (opportunity)

With advent of smartphones technology and the wide penetration of technology in

Indian market people are more accustomed to using new technologies.

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 • Aversion to noise and stress in traffic (opportunity)
Increasing preference for peace in the city life and need to reduce commute time and
running costs.
Preference to more reliable conventional mode of transport. (Threat)

2.1.4. Technological (Mild threat, -1)

• High rate of technological change (opportunity & threat)

Rapid improvement in the technological space of electrical and communication

industry provides a platform for R&D and making more reliable and efficient high end
e-scooters. But also has hidden threat from replacement by higher technological
models.

• Increasing automation (opportunity)

Automation of remote diagnostic system and fleet management will make the e-
scooters more reliable and increase adoption in Indian market.

2.1.5. Legal (Opportunity, +2)

• Energy consumption regulations (opportunity)

The Energy Conservation Act (EC Act) was enacted in 2001 with the goal of reducing
energy intensity of Indian economy. In addition, the Act enjoins the Central Govt. and
the Bureau to take steps to facilitate and promote energy efficiency in all sectors of the
economy, heightening the electric vehicle industry in India.

• Licence regulations (opportunity)

The government’s approval of green license plates for private e-vehicles to promote
electric vehicles in India and its plan to allow youths in age of 16-18 years to drive e-
scooters will lead to a big demand for e-scooters.(source: thehindu.com)

And Government’s consideration of exemption from permits for such vehicles will be
a game changer in e-vehicle market in India.

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2.1.6. Environmental (Significant opportunity, +3)

• Climate change mitigation (opportunity)

India’s shift to shared, electric and connected mobility could help save up to USD 300
billion (INR20 lakh crore) in oil imports and nearly 1 gigatonne of carbon dioxide
emissions by 2030 and assist its mission of commitment to fight climate change
(Source: Enabling India’s Transition to Electric Mobility, FICCI and Rocky Mountain
Institute, Accessed on 7th March 2018)

• Environmental programs (opportunity)

Expanding environmental programs and awareness through online media has made
consumer environmentally conscious and opt for eco-friendly lifestyle and this can be
a major boost for them to adopt e-scooters.

• Sustainable Development Goals (opportunity)

Ten Indian cities are among the world’s twenty most polluted cities of the world
according to the Global Urban Ambient Air Pollution database, 2016. ICEs are one of
the major contributors to air pollution emitting high levels of sulphur dioxide and
suspended particulate matter amongst other pollutants such as carbon monoxide, ozone,
oxides of nitrogen and hydrocarbons. With UN focusing goal 11 on Sustainable cities
and communities, push to e-scooters can be part of the mission to achieve SDG11.

• E-waste disposal (threat)

The toxic nature of Lithium-ion batteries pose a risk hence proper collection and
disposal mechanisms need to be enforced.

The average rating of PESTLE analysis is a potential opportunity (rated +2)

2.2 Porter’s Five Forces Analysis

2.2.1. Rivalry is low leading to low customer churn: Favorable

• Indian electric scooter market doesn’t have many equally balanced competitors.
Currently, Hero electric is the only major market leader with 70% market share in
electric scooters sales in India.
• Lack of differentiation in e scooters present in India.

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2.2.2. Threat of new entrants is medium: Moderately favorable

• There is rapid pace of technological improvement in electric two wheeler space and
partnerships with technological giants like Japan (Okinawa) and China many bring new
entrants and start-ups in high end e scooters market.
• There is also push by Indian government (NEMMP, 2020) along with tax exemption
schemes for wide adoption of e vehicles.
• But there is an entry barrier to the manufacture of high end electric scooters, needing
huge economy of scale in terms of production, marketing, service, distribution channels
and sharing of operations across strategic business units compared to low end electric
scooters and make a big impact.

2.2.3. Supplier power is high: Moderately unfavorable

• Even though with the advancement in technology of powerful and light-weight electric
motors and decreasing trend in the prices of Lithium-ion batteries, there is a dependence
on imports of these products from international suppliers.
• Supplier’s products are not differentiated mainly considering the Lithium-ion batteries
which are integral to high end scooters.
• And because of this, there is almost no risk that supplier may integrate forward.

2.2.4. Buyer power is high: Favorable

• Hero electric holds 70% share in the electric scooter market in India, but their volume
of share is very low because of customer’s preference to conventional scooters, and e
scooter as a product is unimportant for buyer’s own quality.
• And presently, the e-scooter buying customers are concentrated comparatively more
towards the southern part of India.
• Strict regulations enforced (Bharat Stage VI, 2020) would propel buyers towards
electric mobility.

2.2.5. Threat of substitutes is high: Unfavorable

• Considering the indirect substitutes from better and modern public transport, on
demand cab services and ever evolving conventional bikes there exists a threat of
substitution.

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Overall conclusion: 3 out of 5 forces are favorable. Thus, the premium electric scooter which
is more reliable and attractive for the Indian middle class markets and with current government
subsidies, incentives and policies can offer the opportunity to have higher bargaining power
and ultimate profit potential in the electric two wheeler industry and Mahindra’s ability to earn
rates of ROI in excess of cost of capital.

2.3. SWOT Analysis

INTERNAL FACTORS

STRENGTHS (+) WEAKNESSES (-)

1. Mahindra’s brand image, finances, R&D and 1. Poor share in the domestic Indian two wheeler
partnerships (LG Chem) market, 0.1 percent in year 2016 (source:
overdrive.in).
2. Global presence in e-scooter market (US,
Caribbean islands )

EXTERNAL FACTORS

OPPORTUNITIES (+) THREATS (-)

1. Untapped e-scooter market in India, projected 1. Market trend of international partnerships for
to reach $617.7 million by 2025. (source: premium electric e-scooters in Indian market, for
researchandmarkets.com) example, Twenty two motors and Kymco
(source: news18.com).
2. Government policies encouraging adoption of
e-scooters. (AMP, NEMMP, BS VI) 2. Mass rapid transportation technologies such as
metrino, hyperloop, pod taxis, stadler buses,
hybrid buses and freight rail road (source: NITI
Aayog)

ANALYSIS SUMMARY

The strengths and opportunities present indicate that Mahindra has a potential attain a strong position
by introducing e-scooter into India. The threats and weakness need to be considered and overcome
by implementing strategies.

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3. Marketing strategy
3.1. Segmentation
3.1.1. Geographic segmentation
Cities in India with highest number of colleges are as follows:

1. Bengaluru- 1025

2. Jaipur-635

3. Hyderabad-487

4. Pune-421

5. Nagpur-332

6. Mumbai-322

City wise distribution of colleges

1200

1000

800

600

400

200

0
Bengaluru- Jaipur Hyderabad Pune Nagpur Mumbai

States in India with highest number of universities are as follows:

1. Rajasthan-76

2. Uttar Pradesh-73

3. Gujarat- 62

4. Karnataka-55

5. Maharashtra-54

6. Tamil Nadu-52

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 State wise distribution of universities
80

70

60

50

40

30

20

10

0
Rajasthan Uttar Pradesh Gujarat Karnataka Maharashtra Tamil Nadu

Mumbai, Delhi, Bengaluru, Chennai, Hyderabad and Pune are considered the most student
attractive cities in India by Youth Incorporated magazine.

Pune, Delhi and Chennai were also listed in the Top 20 cities selected among 98 nominated
cities in the first round of smart cities selection by the Ministry of Urban Development.

In a report published in 2018 by the Ola Mobility Institute titled ‘Ease of Moving Index’, the
cities with maximum usage and ownership of bicycles were identified as Kolkata, Delhi,
Chennai, Ahmedabad and Bhopal.

3.1.2. Demographic segmentation

The percentage of youth population in India is 34.3%.

As per the census of India,

Percentage of unmarried people among males is 49.8%.

Percentage of unmarried people among females is 54.4%.

According to prominent economists Sandhya Krishnan and Neeraj Hatekar, currently there are
600 million middle class people in India which is approximately half of India’s population.

Percentage of working population in India who cycle to work is 13%.

Percentage of working population in India who walk to work is 23%.

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Percentage of working population in India who use public transport is 18%.

According to a survey, 78% percent of college students preferred walking, cycling and use of
public transport.

3.1.3. Behavioural segmentation

• Environmental conscious
• Safety conscious
• Open to adopting new technologies
• Excited by innovation
• Western trend followers
• Highly active on social media
• Brand loyal
• Early and quick adoption of new products
• Prefer ease of maintenance
• Prefer stylish design.

3.2. Targeting
Based on segmentation, the age group of the target customers is identified between 18-30. We
shall target the middle class population of the country. We shall initially look to gain a strong
foothold in metropolitan cities and then slowly expand to other urban and semi urban regions.

We Identified 5 target groups as follows:

1. University students
a.) who live within 2-15 km radius of their campus.
b.) who walk, cycle or use public transport.
c.) who are highly active on social media, trend followers and trend setters.

2. Young working professionals

a.) who travel between 2-15 km to work.

b.) who walk, cycle or use public transport.

c.) who are highly active on social media, trend followers and trend setters.

3. Companies such as Domino’s, Swiggy, Foodpanda, Zomato, Amazon, Flipkart which

offer home delivery services.

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 4. Transportation network companies such as Ola and Uber.

5. Freelancers who are constantly on the move such as Mumbai dabbawalas, newspaper
sellers and milkmen.

3.3. Positioning
Mahindra GenZe will be the future of mobility in urban India with its array of features
integrated with a companion app adhering to international standards. A technologically
advanced, user-friendly, unisex scooter with a sleek design and engineered to give the best in
class performance.

The smooth yet powerful motor will silently propel the rider through the daily traffic and will
evoke the envy of every passer-by with its stylish looks. The mass premium pricing and lower
maintenance costs would instigate the middle class population to do their bit for the
environment by switching from a conventional two-wheeler and adopt this change. GenZe
would become the transport of choice with a focus on safety, easy handling, good suspension
to travel on dense traffic roads in Indian cities. It is the need of the hour taking into
consideration high levels of air pollution in major Indian cities such as Delhi.

It is the right step towards achieving the present and future emission standards set by the
government of India. It will also strike a chord with the ‘Make in India’ initiative. All e-
scooters will be made in India. The high level of online presence will give the customers an
opportunity to interact with the brand. Our product gives a last mile solution to businesses
offering home delivery and transportation services optimize the quality and speed of their
service.

It will also uplift the brand images of these companies as environmental friendly brands. The
e-scooters provide multiple benefits such as real time tracking, route planning, optimization
and enforcement of city speed limits can be enforced on e-scooters to promote responsible
along with driver with all round fleet management. Increasing petrol, diesel prices and dipping
prices of lithium ion batteries will influence the target market.

Value proposition: Eco friendly, feature rich, future proof, convenient mode of transport.

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3.4. Competitive strategy
We shall enter the e-scooter market as a market challenger.

The market leader in this category is Hero Electric Private Limited with a market share of 70%.

We shall use the bypass attack strategy to combat the market leader by entering several markets
yet to be tapped by the market leader.

Forming valuable partnerships with companies such as Ola, Uber, Amazon, Swiggy etc. will
be a part of this strategy to enter the home delivery services, last mile connectivity and
transportation services market.

In a geographical sense, we shall first look to establish a strong foothold in north Indian metro
cities where the market share of the leader is relatively low.

Mahindra logistics can be used for further expansion and outreach across the nation.

We shall try to supress the market share of competitor firms such as Ather Energy and other
smaller firms through aggressive large scale campaigning using the Mahindra’s popular brand
image, advertising and distribution leveraging on the existing large number of showrooms
across the country’s cities.

We identified the areas of possible competitive advantage are as follows:

1. Service differentiation- Fleet management, GPS tracking, Geo-fencing, reward

system for riders based on driving profile, accident alerts, speed limit breach alert.

2. Image differentiation- Will be regularly seen in exhibitions and acts as a symbol for
sustainable development.

3. Product differentiation- ultra powerful motor with hill-hold, anti-theft features,

swappable battery, Regenerative braking.

4. Personnel differentiation- Well trained youth as sales and service staff.

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4. Marketing Tactics
4.1. Solution
Sustainable transportation for a better world. With growing urban areas, and increased transit
needs, our current transportation options are not sustainable. Zero emissions cannot be a choice,
but an imperative. Paving way for a generation of zero emissions. To generate and surf the
wave of clean transportation that has started in India our engineers created electric scooters that
are recognized among the industry’s top innovations in the world. Not only are they stylish,
they are designed for simplicity, safety and security.

The durable batteries are removable and rechargeable at any standard outlet. No range anxiety!

The smooth yet powerful acceleration helps keep up with or even safely pass cars. The multiple
ride modes allow you to control your power, range, and ride experience.

The e-Scooter’s clean, quiet ride offers peace and serenity. Our electric motors will climb
higher and take you further with no sweat. Be moved, with zero compromises.

The throttle mode can be activated to rush to that meeting in office or arrive home in time for
dinner without breaking a sweat.

Focus on connectivity and technology.

Our electric scooters are all fully connected, with a companion app so you can check on your
ride with access to route planning, diagnostics, battery life, theft prevention – a complete
personal transportation device.

4.2. Product
4.2.1. Design that is future-proof, feature and user-friendly
Launched in 2 variants –
1. Industrious: single seater built to empower delivery agents and local entrepreneurs with
large boot space. Electronically restricted speed of 50Kmph and range of 180
kilometres.
Fleet management to generate driver profiles (average speed, frequency of detours,
breaks, severity of manoeuvres, etc.). This data can be used to highlight drivers with
dangerous habits and to suggest remedial training and use it for reward schemes.

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 2. Double seater for individuals
Driven by a state-of-the-art powerful electric motor capable of reaching top speeds of
95Kmph and a range of 130 kilometres on a single charge.
3 Driving modes – Throttle mode, Efficient and Super Easy

• They would be available in 2 colour options. Dazzling Galaxy White and Enigmatic
Black with neon-green highlights.

• Offers an ergonomic seat with good storage space below.

• Minimalistic cast-aluminium frame exoskeleton strong yet sleek for better handing.

• Removable yet secure battery packs with ‘Recharge on the go’: Snap your battery in
and out for easy charging and security. Plug it into any standard outlet for a boost on
the fly thus eliminating need of a special charging infrastructure.

4.2.2. Safety

• Disc brakes (integrated regenerative braking) along with grippy tires for safety during
those monsoons.
• Neon blue LED lamps for greater visibility on those dark stretches.

• Total security: disable it remotely from anywhere if it’s stolen and use GPS feature
inbuilt locate it immediately.

• Warranty 2 years, 24/7 helpline for roadside assistance and self-diagnosis with app.

• Armed with battery booster technology to be used during emergencies that provides an
additional 20km range at just 5% charge.

4.2.3. Convenience

1. Noiseless motor offering peaceful rides.

2. Cruise-connect touch display and control hub.

The 7-inch Cruise-Connect™ touchscreen display shows your speed, range and charge
level, and lets you customize the ride to fit your needs by offering 3 riding modes, including
a setting for those first learning to ride.

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 3. App which is the perfect companion for the road ahead.

Helps manage your ride from the palm of your hand with route planning, remote
diagnostics, geo-fencing, and more. The Smartphone app and connected telematics system
allows you to monitor your e-Scooter’s performance.

4. Improved shock absorbers and suspension for Indian roads

5. No hassle of keys can be used with a combination of fingerprint / pin code

6. Low maintenance cost

4.3. Pricing
• List price: the single seater is price at INR 45,000 whereas the two-seater version would be
competitively priced at INR 60,000 which is like most scooters in the 100 - 125cc segment
• For bulk orders of single seater 200+ e-scooters reduced price of INR 35,000
• Discounts: Students 10% and 5 % for corporates for two-seater
• Down payment INR 15,000. A down payment of more than INR 25,000 is entitled to an
extended warranty of 1 year.
• Credit terms: 5% interest over 14 months for the 2-seater variant.

4.4. Place

• Firstly, we would target the existing Mahindra showrooms, existing Mahindra dealers
located in Metropolitan cities to showcase this product.
• In Phase 2, we could target crowd at large MNCs, malls and universities experiential stores
nearby.
• Home delivery can be taken up as a key differentiator service benefit
• Online purchase through merchants PayTM would be enabled to reach a larger audience
• Integrate the existing Mahindra service centres to service E-scooters, train the service
personnel to handle maintenance of e-scooters.

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4.5. Promotion
The promotion/communication would be carried out as three surges.

4.5.1. First surge would consist of a teaser video hosted on the company website as well as
other social media channels: giving a glimpse of the design and features. This could be
upgraded to YouTube ads to increase the viewership.
Television Ad that appeals to the audience by saying “It’s all about you. It’s time to take control
of your personal transportation and revolutionize your life.
Go places untethered, empowered, and without compromise for you or the planet. No waiting
in traffic, no gas stations, no emissions, no noise, no stress.”
This would then delve into highlighting the best features of the e scooter.

During this period print media like newspapers and popular Auto magazines would contain the
features and specifications. Separate brochures can be prepared can handed out. Hoardings
displaying the e scooter would be set up on busy highways and busy roads within metro cities.
Direct marketing is also involved at this stage to target potential buyers identified using
databases over emails and text messages. For B2B we would display our innovation in trade
fairs and Expos in India

4.5.2. Second surge consists four video advertisements titled “A day in the life of a GenZe”
can be used to portray the benefits featuring our ideal target customer segments

1. Young nature loving, technologically savvy student– experiences peace at the start
of the day by listening to chirping of birds while driving the noiseless E-scooter,
highlight the thrill of college life with throttle mode, emphasis on tech features

2. Young female professional riding GenZe – show maturity in using balanced mode
for better range, Charging convenience, emphasis on safety features particularly
ultra-boost.

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 3. Middle aged (40 – 55) taking a short ride with his daughter – accentuate on the
simplicity of use by featuring first time use mode, good suspension/braking, easy
start. Give message that riding Mahindra e-scooter would be a gift for future
generation

4. Milkman who is empowered by GenZe infused with a bit of humour and feel good
factor. Scene one the milkman comes on a noisy scooter emitting lot of black smoke
in the morning waking the whole neighbourhood awkwardly trying to balance a
huge load of milk cartons. His customers cough after opening the door and then the
generate awareness about product. Now show transformation to using GenZe that
provides a good storage hence better productivity by increased carrying capacity,
safety – uniformly distributed load and the neighbourhood is thankful to have good
sleep and remains pollution free.

4.5.3. Third surge consists of a campaign “7-mile pledge” followed up with the Mahindra e-
scooter rally event in Delhi to save the environment and create awareness on Zero emissions
would gain media coverage as well.
Take the 7-Mile Pledge content
Most of our daily trips are less than seven miles from home. You could call it your personal
seven-mile island. It’s where we go out, shop, eat, drink, and pursue our interests and hobbies.
Think about your seven-mile island, and how much of your life you spend there.
Our seven-mile pledge is a commitment to use personal transportation within our island
whenever we can. It’s a daily choice you can feel good about and goes a long way. If everyone
takes care of their own seven-mile island, the world will win.
Less cars on the road mean less traffic congestion. Fewer emissions in the air ensures a healthier
environment for you and your family. And you can park easier, avoid gas stations, and enjoy
car perks (like storage and on-the-go device charging) with the fun, thrill, and personal
advantage that only 2 wheels can provide.
Take the 7-mile pledge. “Drive something small and be part of something big”.
After sales
• CO2 reduction challenge – daily weekly monthly
• Blogs like Team Bhp giving favourable reviews
• Drive experiences on Instagram by influencers.

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 • Every product that is dispatched by delivery agents of partner organizations (Zomato,
Swiggy, Amazon) riding Mahindra GenZE would have a “Delivered to you on Mahindra
GenZe” sticker along with a QR code scanner redirecting to the company website. Delivery
agents shirts/cap merchandize
• Accessories helmets with popular marvel theme characters can be sold with GenZe
• 1st prize of Mahindra auto quiz.
• Road safety campaigns by Mahindra, training videos on Social media.

4.6. Play
• Winner of Online games/quizzes designed around environment friendly practices can be
invited as superheroes to test-drive the scooters wearing the superhero helmets.
• AR glasses provided at experience store to display features of the GenZe.

5. Financial projections
5.1. Sales revenue
For purpose of assumption Mahindra GenZe has sold:
• 1250 units per month
• 15000 units in 1 year

The estimated income calculated in this scenario will be:

Sales Projections Total Gross Total Costs Net Projections

projection

Single seater Twin Seater

Q1 ₹ 13,50,00,000 ₹ 4,50,00,000 ₹ 17,50,00,000 ₹ 28,12,50,000 ₹ - (10,62,50,000)
Q2 ₹ 13,50,00,000 ₹ 4,50,00,000 ₹ 17,50,00,000 ₹ 27,12,50,000 ₹ - (9,62,50,000)
Q3 ₹ 13,50,00,000 ₹ 4,50,00,000 ₹ 17,50,00,000 ₹ 25,00,50,000 ₹ - (7,50,50,000)
Q4 ₹ 13,50,00,000 ₹ 4,50,00,000 ₹ 17,50,00,000 ₹ 23,00,00,000 ₹ - (5,50,00,000)
Total ₹ 54,00,00,000 ₹ 18,00,00,000 ₹ 72,00,00,000 ₹ 1,03,25,50,000 ₹ - (31,25,50,000)

It will take the company 2 years to break even, and another year to finally earn profits, which
can be seen by the reducing total costs.

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5.2. Budget
Mahindra has allotted an initial marketing budget of Rs. 5 crores, which can be further
increased if needed, with the help of input from parent company.

The budget will be distributed for the following activities:

% Of Total
Campaign Type Projected Subtotal(in ₹)
Spending

National Marketing 2,00,00,000 40

Local Marketing 10,00,000 2
Public Relations 70,00,000 14
Social Media 9,00,000 1.8
Advertising 1,50,00,000 30
Web 61,00,000 12.2
Total 5,00,00,000 100

Projected Cost Per

Campaign Type Quantity Projected Subtotal
Unit
National Marketing
Banner Ads 40 ₹ 5,00,000 ₹ 2,00,00,000
SUBTOTAL ₹ 2,00,00,000
Local Marketing
Newspaper 100 ₹ 10,000 ₹ 10,00,000
SUBTOTAL ₹ 10,00,000
Public Relations
Public Events 10 ₹ 3,00,000 ₹ 30,00,000
Sponsorships 20 ₹ 2,00,000 ₹ 40,00,000
SUBTOTAL ₹ 70,00,000
Social Media
Twitter 20 ₹ 15,000 ₹ 3,00,000
Facebook 20 ₹ 10,000 ₹ 2,00,000
Instagram 20 ₹ 20,000 ₹ 4,00,000
SUBTOTAL ₹ 9,00,000
Advertising
Radio 3 ₹ 10,00,000 ₹ 30,00,000
Television 4 ₹ 30,00,000 ₹ 1,20,00,000

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 SUBTOTAL ₹ 1,50,00,000
Web
Pay-Per-Click 10 ₹ 3,60,000 ₹ 36,00,000
Marketing
SEO 10 ₹ 2,50,000 ₹ 25,00,000
SUBTOTAL ₹ 61,00,000
SUBTOTAL ₹ 5,00,00,000

6. Implementation controls
6.1. Pre-order review (Milestones, targets)
Aim to sell at least 15,000 units in 1st year (Market leader Hero Electric sold 15,000 units in
the first six months of the current financial year, competitor Okinawa sold 7,000 units till date
in the current financial year, aims for 10,000)
Break-even – after 2 years
Profit margin – after 3 years - initially ₹ 22.5 crore, assuming that 15,000 units sold (7500 units
of twin seater, 60,000 model and 7500 of single seater, 45,000 model)

6.2. Correction and control mechanism

• Scenario 1: Target not met

The company will use 5 crores for promotion activities and keep an additional 2.5
crores as backup, and in this scenario, will use the backup for more aggressive
promotion push
• Scenario 2: Target overshot
In case sales overshoot units manufactured, more production plants can be set up, or
the capacity of existing plants can be increased
• Scenario 3: Reinvest profit into Research and Development wing to improve product
quality, reduce production costs, etc.

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