1. the
Design managers Introduction to Marketing:
Bike Rental Service
Nikita Iyer
Samina Rahman
Samira Jain
Strategic design Management 2011-13
Mentor:
Deval Kartik
National Institute of design

2. Dial a cab/rickshaw Photocopy
Housekeeping
Florists
Cybercafe
Dry cleaners
Food carts
Rentbikes/cars My dhobi
Transport
Charging points Pet grooming
Banks
Donation
Identifying the
Jyotish Booking tickets
Need Online selling
Pandits Pawning Tour guides
Event management Portfolios
Parlours Matrimonial

3. Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
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

4. Having more disposable income at hand, Indians increasingly prefer to travel
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
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
the students and professionals, as it gives them a sense of independence and
style.
Need India is the world’s largest two-wheeler market after China.
http://www.portal.euromonitor.com

5. PhatPhatia Rent-a-Bike is a start-up in collaboration with
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
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
the
Service
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

6. Short –term goals:
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
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:
the
Vision 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.

7. Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
College students
Age Group: Above 18 years
Education Profile : Pursuing Undergraduate/Postgraduate courses
the Eligibility: License holders
Target Location: College students living in apartments/hostels
Customer

8. Name: Prateek Shankar Dixit
Age :
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
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
the Leisure : Movies, food, bike rides
Work : Sourcing material
Customer Photoshoots
User research
Profile
Field study

9. Field study
User research/Market Research
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
Sourcing material
Odd jobs/Errands
Emergencies
the
Market Road trips
Short trips
Segmentation Surveys
By Usage
Visiting Restaurants/Coffee
shops/Multiplexes/Malls/Book stores

10. Herd mentality :
One’s decision influences the other
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
e.g-road trips
Peer pressure
One friend in the group owns personal
transport
the The “cool” factor
Market
To be in the thick of things/to show off
Independence
Segmentation Current trend of owning personal
means of transport
By Behaviour

11. Direct
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
Local transport(autos,share autos,buses,jeeps)
Personal vehicles (cycles,scooters,motorbikes)
Cycle rentals
Friend’s vehicles
the
Indirect
Competitors Lifts
Walking

12. Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
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
the No similar service providers
Life
Demand has to be created
Customers have to be prompted to try the product
Low profit margin
Cycle
Stage

13. Required Initial Investment
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
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
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
the Total premium (per annum) Rs. 1000*10 Rs. 10,000
Revenue
Servicing contract per bike (per annum) Rs. 1500
Total servicing contract Rs. 1500*10 Rs. 15,000
Model Computer
Barcode reader
Rs. 20,000
Rs. 2,500
Programming and system setup Rs. 5,000
Miscellaneous (phone, electricity connection Rs. 20,000
etc.)
TOTAL Rs. 7,77,500

14. Source:
Monthly Expenses (for 10
bikes)
Loan = Rs. 10,00,000
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
Interest per Rs. 25,000 Duration = 5 years
month Rate of Interest = 10%
Salary A Rs. 10000
Total amount top be
Salary B Rs. 5000 repaid at the end of 5 years = Rs. 15,00,000
Spare parts Rs. 100 Payment per year = Rs. 3,00,000
repair/change Payment per month (approx.) = Rs. 25,000
Bike Rs. 6750
depreciation*
Misc Rs. 2000 *Calculating depreciation:
TOTAL Rs. 48,850 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

15. For bike rent calculation: Rental calculation and approximation:
Total Fixed cost (for 10 bikes, 30 days) = Rs. 48850 1 hour or 5 km = (20)+(1.5*5)
Fixed cost for 10 bikes (for one day = 48850/30 = 20 +7.5
= Rs. 1628.33 = 27.5 => Rs. 30 MINIMUM RENTAL
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
Fixed cost for one bike per day = Rs. 162.8 = Rs. 163 2 hours 30 km = (20*2) + (1.5*30)
= 40 + 30 = 73 => Rs. 75
Bike rental (w/out petrol) = Rs 165 per day (10 hours)
Bike rental per hour = Rs 16.5 per hour minimum* 5 hours 50 km = (17*5)+ (1.5*50)
*to recover minimum fixed cost on bike = 85 + 75
= 160
For shorter distances = Rs. 20
For longer distances = Rs. 18 & Rs. 17 12 hours 100 km = (12*16.5) + (1.5*100)
= 200 + 150
Petrol cost = Rs. 70 per litre = Rs 450
Bike mileage = 50 km per litre
Petrol cost = Rs. 1.4 per km
Calculated/ charged at Rs. 1.5 per km for petrol

16. Duration Distance Rental
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
1 hour Less than 5 km Rs. 30
2 hours Less than 20 km Rs. 75
5 hours Less than 50 km Rs. 160
the 12 Less than 100 km Rs 450
Rental Extra Charges:
Scheme Per Extra km = Rs. 2
Per extra hour = Rs 20

17. Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
Physical media Digital media Print media
(graphics on)
Phat Phatia Website Posters in colleges
Bike Social netwroking Postcards
Helmets sites Ads in college
Key chains a.Facebook magazines
T-shirts b.Twitter
the
Badges c.Linkedin
Promotion Fridge magnets
Bags
Blogs
Short Messaging
Services
Strategy E-mail (tie up with
colleges)
Special Packages
Book more bikes-avail offers
Get along another rider and get a km free!

18. What we relate to bike rides:
Peace
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
Thrill
Fun
Happiness
Freedom
Liberation
Holidays
Road trips
the Sunny days
Chilling
Brand Relaxing
Speed
Identity Hair flying
Wind through the hair
Independent
Convenience

19. the
Brand
Identity
Logo
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID

20. the
Brand
Personality
Jovial
Adventurous
Dependable
Bold
Happy
Friendly
Youthful
Energetic
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID

21. the
Brand
Essence
“ Of the students, by the students, for the students ”
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID

22. 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.
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
It intends to stay with the proposition of “Of the students,
by the students, for the students”.
Uniqueness of the Brand :
the Novel idea of introducing non-geared bikes for rent to
college students
Brand Similarity with competitive brands :
Positioning 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

23. Brainstorming:
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
Unwind by zipping around-Unzip!
Baiging!!
Bye-king!
Ngggggggg!!!!!
the
Like bike
Brand Phat-phatia/ Fat-fatia
Communication

24. the
Brand
Communication
Visuals
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID

25. the
Brand
Communication
Posters to be put up in colleges
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID

26. the
Brand
Communication
A page on highly popular social networking sites
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID

27. the
Brand
Communication
Business Cards
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID

28. Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID
Saving money tendency
Too many people at once(law doest not permit triple
sharing)
Laziness
Weather – Monsoon, heat, dust
Pollution
Bad roads
the Non-drivers
Non Licensed drivers
Limitations Control petrol theft

29. you
Thank
Introduction to Marketing I Nikita Iyer I Samina Rahman I Samira Jain I SDM I NID