Marketing Strategy For Free Electricity Bicycle

Marketing Plan
for
the launch of
FREE ELECTRICITY BICYCLE
Power Generator in India
(Invented by Living Essentials)
Submitted to
Prof. J N Godinho
by
Team VIDYUT:
Mohit Shah
Kumar Gaurav
Gholam Rabbani Ghause
Goutham Yelmanchli
Vinod Jain
Rakesh Kumar
15PGDM01A002
15PGDM04A008
15PGDM05A011
15PGDM06A015
15PGDM07A016
15PGDM08A017
NTPC SCHOOL OF BUSINESS (NSB)
(A unit of NTPC Education and Research Society)

Plot No. 5-14, Sector 16-A, NOIDA- 201301 (U.P.), INDIA
E-mail: nsb@ntpc.co.in; Website: www.nsb.ac.in
Free Electricity Bicycle Marketing Plan
Team VIDYUT
Table of contents
Sl. No.
Description
Page No.
1.
Executive summary
2.
Introduction
3.
Marketing Strategy
a.
Discover Consumer needs and scope of potential growth
b.
Development of a product based on consumer requirement
c.
Identification of Marketing Environment
d.
Segmenting
e.
Targeting and Target market
f.
Positioning
g.
Setting the Product Strategy
h.
Attractive combination of 4Ps
10
Product
10
Promotion
12
Price
14
Place
15
4.
Conclusion
17
5.
References
18
Marketing Management
Page| 2
1.
Team VIDYUT
EXECUTIVE SUMMARY:
One of the challenges in fast growing India is to address shortage or unavailability of electric supply
in suburban and rural areas. Approximately 600-700 million people are not getting electricity. To
address this problem, Indian-American billionaire philanthropist Mr. Manoj Bhargava, founder and
CEO of Living Essentials has invented Free Electric bikes.
This will help solve the power crisis in the coming days and offer people a healthy life free of
anxieties. The Free Electric bikes offer energy-generating Free Electric, a hybrid stationary bicycle
that can produce 24 hours of power when ridden for one hour.
In his own words, "We don't realize, even if we put wires to villages, nobody can afford to pay the
electricity. So we have to make something that there will be no electric bills, anybody can repair,
and be efficient to produce enough power. Those who are paying a bunch in electric bills can say "I
can make my own". And we do it without pollution".
In the current environmental challenges being faced by the world, this movement will be a
breakthrough by creating and implementing solutions to the most basic global problem Clean
energy to rural areas. Doing so will improve the lives of billions of deprived people living in
darkness.
Other clean energy solutions such as solar energy are also getting popular in rural areas but have
their own limitations with huge space requirement, less reliability and high capital cost. Thus,
Electric bike which can generate electricity to serve lights, a fan and a charging socket can cater to
the basic requirements of the poor.
Basic concept of a hybrid stationary bicycle is that it can produce 24 hours of power when ridden
for one hour. Pedaling the bike spins a flywheel, which powers the generator. This charges the
battery which can serve the basic electric requirements of a rural family stated above.
The objective of this report is to develop a marketing plan to launch Free Electricity Bicycle in
India. It is proposed to fix the price for rural segments at production cost and price for remaining
segments shall compensate for no profits of rural segment sales.
Page| 3
2.
Team VIDYUT
INTRODUCTION:
Free Electric, a hybrid stationary bicycle, an hour of riding can provide enough energy to
fuel a small homes electrical needs for 24 hours. Pedaling the bike spins a flywheel, which powers
the generator. This charges the battery, creating enough power for running lights, a small fan, a
charging cell phone or tablet, and more.
It is planned to introduce this bike in to the Indias market by creating appropriate marketing
plan. The plan shall create awareness of the innovation and communicate the benefits of the product
to potential consumers in the identified segmented markets. Marketing strategy is to meet the needs
of consumers profitably. This needs a stage wise development of marketing plan as follows:
a. Discover Consumer needs and scope of potential growth
b. Development of a product based on consumer requirement

c. Identification of Marketing Environment
d. Segmenting
e. Targeting and Target market

f. Positioning
g. Setting the product strategy
h. Attractive combination of 4 Ps wise:

Product
Promotion
Price and
Place
Page| 4
3.
MARKETING STRATEGY:
a)
Discover Consumer needs and scope of potential growth:
Team VIDYUT
India is at the top ranking in rapidly developing nations in the world. However, even now
there are approximately 600-700 million people who are deprived of basic electricity requirement.
Most of these people are from rural villages of India. These are the deprived sections of the society
constituting bottom of the pyramid.
There is huge potential of opportunities in this bottom segment subject to availability of
goods at lower price and good quality. This requires technological intervention and innovation.
b) Development of a product based on consumer requirement
One such breakthrough innovation made by M/s Living Essentials is Free Electric bikes. A
hybrid stationary bicycle will produce 24 hours of power when ridden for one hour.
This product is apt for introducing in to rural markets at very reasonable but profitable price
to serve the basic requirements of villagers. However, sales of the product in deprived sections of
the society may be a challenge. This can be addressed by cross subsidy or can be taken up under
CSR activities by Corporate India.
c) Identification of Marketing Environment
Macro environmental forces that shape opportunities and pose threats to an Industry are as
follows:I.
Demographic Environmental forces
II.
Income distribution Middle and lower income groups face higher electricity
bills and search for energy efficient devices and methods to drop down the bills.
This situation can be utilized to market Free Electricity bikes.
Geographic distribution Most of the Suburban and rural geographies of India
are still facing minimum power shortages for 18 hours a day. These segments
may have reliable, clean and free electricity
Economic factors
Gross domestic product Lower and middle GDP consumers can make a huge
potential market
Page| 5
III.
Team VIDYUT
Personal saving Savings play an important role in the Indian families. They
always look for savings or good returns in whatever investments they do. Our
product good savings in reduced electricity bills and good health.
Culture:-
Indian people are basically conservative and concentrate on cost effective products.
Educating the cost benefits of new product and returns on investment with this new
product in electricity scarce environments may develop huge demand for bike. Also
IV.
the O&M expenses of this bike are marginal.
Time-Starved and money constrained:-
Rural India consists of hard working farmers who are physically fit to drive these
cycles easily for 1 hour a day. They usually transport by cycles in villages and so this
cycle mechanism can suite in to the culture of villagers. Money constrained poor
who cannot afford to pay higher electricity bills may opt to this free electricity
V.
generating bicycle.
Natural Environment:-
Higher Pollution levels due to conventional fossil fuel generated electricity can be
eliminated in rural areas as well as some suburban area by using clean energy
generated from this product. One cycle can sufficiently cater to few lights, a fan and
VI.
a charging point in an individual household if run for 1 hour continuously.
Technological Environment:-
This product is a technological breakthrough and has the potential to create

monopoly with patented rights.
Thus Free Electricity cycle can be effected by demographic, economic, cultural, natural and
technological macro environments.
Page| 6
Team VIDYUT
d) Segmenting:
A Market Segment consists of a group of customers who share a similar set of wants. Segments are
not created by are existing which must be identified. Segmentation approach in Free Electricity bike
is done as follows:-
Consumer Characteristics:I.
II.
III.
IV.
Geography:- Suburban and rural geographies of India scarce of electricity

Demographics:
Age Structure Customers physically capable of utilizing the cycle and

Income distribution Middle and lower Income groups
Socio-economic:- Financial status of the families to afford the product
Psychographics:- Rural Indians trying to connect to outside world through

telecommunication but deprived of electricity to afford mobile devices.
Consumer responses:I.
II.
III.
Benefits:
Clean, Free and reliable electricity at affordable prices

Health benefits with physical fitness
User status and usage:- Best usage in electricity deprived rural areas
Loyalty:- Poor consumers getting power supply for first time in their lives shall be loyal
to the product.
Page| 7
Team VIDYUT
e) Targeting and Target market:
Target markets are selected to direct marketing programs so as to meet the needs of these specific
segments. Thus Target markets based on geographical, demographical and pshychographical

segmenting are
1) Rural households deprived of basic electricity
2) Middle income families to save of electricity bills
3) Higher Income groups for fitness and contribution to green energy

4) Replacement of conventional cycles in GYMs
Target marketing strategy chosen for Free Electricity cycle shall be Differentiated Marketing such
that three different designs shall be produced to meet the needs and demands of 3 different target
markets mentioned above.
Customized marketing has to be chosen for HIG, MIG and GYMs to facilitate their needs and extra
cost.
f) Positioning:
(i) Positioning of Free Electricity Bicycle to different target consumers is proposed as

follows:-
1) For Rural households deprived of basic electricity:To consumers who are deprived of basic amenity energy,
Our product Free Electricity Bicycle is a cycle
that generates free, green and reliable energy.
2) For MIG, HIG and GYM target markets:To consumers who are concerned about high energy costs,
Polluted environment and obesity crisis,
Our product Free Electricity Bicycle is a cycle
that generates free and clean energy, and also useful

for physical fitness with a sustainable cause.
Page| 8
Team VIDYUT
(ii) Positioning Possibilities:
Attribute positioning First ever technology mix of exercising cycle and
Benefit Positioning Free Electricity for 24 Hrs with 1 hour of cycling
energy producer
Use Positioning For rural areas deprived of electricity
User Positioning For Green Heroes to generate free and clean energy
g) Setting the Product Strategy:
Free Electricity Bicycle is classified as a consumer product and is a tangible good
The product fits in to market place as a Shopping product.
which is non-durable.
Five Product levels of Free Electricity Bicycle are as follows:o Core Benefit Free Electricity
o Basic product Hybrid bicycle for exercise and electricity generator

o Expected Product Maintenance kit and maintenance free battery
o Augmented Product Charging dock with USB port
o Potential Product - Connecting multiple batteries to pool number of houses

through a single bike
Page| 9
Team VIDYUT
h) Attractive combination of 4Ps:

PRODUCT:Free Electricity Bicycle is a Discontinuous innovation which creates a major change in the way
we use tread mills for only fitness and the way deprived sections of rural India live.
Consumer adoption process:
This is completely a new innovation which must be reached to the target consumers. Hence, it
requires a massive advertising of the product to educate end consumers.
I.
To educate rural target market who are deprived of basic electricity,
(i) Awareness:
a) Marketing teams to be assigned with stalls at concentrated places of the village.
(ii) Evaluation:
a) Rural families are to be educated on the advantages of free and reliable

electricity.
b) Added advantages of electricity to be visualized to villagers to create demand for

the product.
c) 24 hr power supply as an output of Physical work of 1 hour to be demonstrated.
d) Affordability of the product on shared basis to give free power to a group of

(iii)Trail:
families have to be communicated
a) Villagers are to be demonstrated on the basic operations and trial demos of power
generation to be shown live to build confidence in bottom of the pyramid
(iv) Adoption:
population.
a) Making the bicycle available in some target areas and providing product use
information to all the target consumers.
Page| 10
II.
Team VIDYUT
To educate MIG, HIG and GYM target markets:-
(i) Awareness:
a) Massive advertising of new innovation through print media, electronic media and
(ii) Interest:
outdoor media in suburban and urban areas
a) Curiosity of new technology that provides clean, green and free electricity with
added value of fitness to be created in target segments through teasers in Print,
electronic and outdoor media
(iii)Evaluation:
a) MI groups are to be educated with cost savings and return on investment linked
with affordable initial investment
b) HI groups are to be educated on fitness machine with a value addition of green

initiatives
c) GYMs As GYMs are the huge potential markets, GYM institutions are to be
personally educated on replacing conventional cycles with free electricity cycles.
They have to be communicated on how the replacement can drastically reduce
GYMs power bills.
d) Also, demand for energy conservative GYMs can be boosted by sharing the part
savings to GYM users in the form of fee discounts etc.
(iv) Trail:
a) Open a sophisticated demonstration facility at places having high foot falls like
malls etc. to create curiosity among potential customers
b) All the three target segments are to be demonstrated on the basic operations and
trial demos to build confidence and attract most of consumers as venturesome
(v) Adoption:
innovators.
a) Making the bicycle available in some target areas and providing product use
information to all the target consumers.
Page| 11
Team VIDYUT
PROMOTION:
Brand of Living Essentials is already famous in 5 Hour Energy drink.
So, its brand name can give comfort to buyers unsure of their decision by reducing their
I.
Now the company is entering to Free electricity bicycle.

perceived risk.
Criteria for choosing Brand Elements:-
(i) Memorability:- Solution to universal energy access problem.

(ii) Meaningfulness:- Eco-friendly energy
(iii)Likability:- aesthetically pleasing (Picture)
(iv) Transferability:- The product has no geographic boundaries. This is going to affect a
few billion living of the grid in entire world.
(v) Adaptability:-
a. Proposed to have 2 versions first type for Rural customers and 2nd model
for Urban, Suburban and GYMs.
b. Can be upgraded to higher capacity watt generation based on the demand
(vi) Protectability:-
a. Product innovation technology is legally patented. Hence no competition in

near future.
b. Proposed to be sold at differentiated attractive prices

II.
Exploiting the Brand:
Brand Portfolio M/s Living Essentials is currently having 5 Hour Energy Drink
That is also related to Energy but now it is Electricity. New product category is
and is proposed to add one more category to its brand.
Free Electricity Bicycle. Both products provide practical way to meet todays
fundamental need for energy.
There can be a Category extension to use the brand name to introduce bicycle as
another Energy providing product in the brand portfolio.
Page| 12
III.
Team VIDYUT
Branding architecture: -
It is proposed to place the product in Endorsed Brands & Sub brands level as
Living Essentials Free electricity bicycle.
IV.
Tie ups with financial institutes
a. Zero interest EMI for rural segment
b. Easy financing schemes for other customer segment
Page| 13
Team VIDYUT
PRICE:Free Electricity Bicycle is a new product being introduced in to the market.
Its pricing objective shall be to Maximize market share through market penetration pricing
Perceived value pricing approach to be adopted to put a price tag to each benefit bundled in
the product.
Demographic / Differentiated Pricing
Rural segments will have low cost along with financing support.
In HIG, MIG and GYM category HIG shall have more pricing.
Price to be fixed at production cost of $100 i.e. Rs. 6500 without any overhead charges.
Pricing shall include the overhead expenses for rural segment and profit margin from this
segment.
Base Price to be fixed at $300 with additional customization and benefit charges. i.e. Rs
20000 + .
Page| 14
Team VIDYUT
PLACE:
It is proposed to have marketing channels Retailers with reasonable profit margins to
Develop retailers at strategic locations identified as per target segments.
Stimulate demand through promotional activities through retailers
Typical marketing flow proposed for Free Electricity Bicycle is as follows: -
LIVING
ESSENTIALS
Train retailers on the demonstration activities of the product.
Physical
Possession
Ownership
Promotion
Negotiation
Financing
Risking
Ordering
Payment
Physical
Possession
Ownership
Promotion
Negotiation
Financing
Risking
Ordering
Payment
Consumers
Rural and
HIG, MIG &
GYMs
initially push the product in to the market.
Commercial Channel Subsystem
Retailers to create suitable place for easy accessibility and make the product available when
Only Merchant Middlemen (Retailers) are proposed for taking the product to end users.
desired by potential customers
It is proposed to have One level channels of distribution between Living Essentials and end
consumers as follows: LIVING ESSENTIALS
RETAILERS
One Level
END CUSTOMERS
Page| 15
Team VIDYUT
It is preferable to have Selective distribution using good number of retailers to make the
As the product is a new entrant in to the market, this is in the introductory stage of a product
product reach all four segmented markets.
life cycle. Hence specialist channels that spot trends and attract early adopters are to be
institutionalized.
Page| 16
4.
Team VIDYUT
CONCLUSION:
It is proposed to segment the product primarily to rural areas deprived of basic electricity.
Second segment is electricity cost & health conscious segments in urban & sub urban
areas.
Positioning of the product is to be done separately for each of the above identified
segments.
Target customers are villagers in terrains as the concentration of off-grid population is

high and are in short clusters in terrain areas and health conscious HIG customers,
electricity cost conscious MIG and Fitness Centers like Gyms.
Bicycle needs to be differentiated with low cost variant for rural segments and high cost
variant with added / customized features for other segments.
It is proposed to have sales through specialist channels to push the product in to target
markets.
Financing ties ups to be provided for rural customers
Direct Marketing plans to be worked out for HIG customers and Fitness centers.
It is proposed to test the complete marketing plan in a small geographic area that is
similar to the larger market. [ 5 villages with no electricity & 2 cities with population
around 1.5 million have been identified as test market]
In rural area a small demo center to be set up at panchayat level
In cities 2-3 sophisticated demonstration center to be opened in the famous malls
Page| 17
5.
Team VIDYUT
REFERENCES:
1) http://www.bicycling.com/bikes-gear/news/the-5-hour-energy-of-bikes
2) https://www.quora.com/HowmuchelectricitydoesManojBhargavasFreeElectrichybridbikeg
enerate
3) http://www.treehugger.com/clean-technology/5-hour-energy-creator-roll-out-pedalpowered-energy-solution-india.html
4) http://news.nationalgeographic.com/energy/2015/10/151006-energy-drink-billionairewants-to-power-homes-with-bikes/
5) http://indianexpress.com/article/technology/tech-news-technology/free-electric-thebicycle-that-wants-to-fix-indias-power-problem/
6) http://www.designindaba.com/videos/creative-work/free-electric-bicycle-generates-freeclean-energy
7) http://www.mplans.com/articles/how-to-market-an-innovative-product/
8) https://www.patriotdirect.org/free-energy-bicycle-one-hour-on-this-bicycle-may-poweryour-home-for-24-hours/
Page| 18

Marketing Strategy For Free Electricity Bicycle

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Marketing Plan

NTPC SCHOOL OF BUSINESS (NSB)

(A unit of NTPC Education and Research Society)

Free Electricity Bicycle Marketing Plan

Discover Consumer needs and scope of potential growth

Development of a product based on consumer requirement

Identification of Marketing Environment

Targeting and Target market

Setting the Product Strategy

Attractive combination of 4Ps

Free Electricity Bicycle Marketing Plan

Free Electricity Bicycle Marketing Plan

b. Development of a product based on consumer requirement

e. Targeting and Target market

g. Setting the product strategy

h. Attractive combination of 4 Ps wise:

Free Electricity Bicycle Marketing Plan

Discover Consumer needs and scope of potential growth:

There is huge potential of opportunities in this bottom segment subject to availability of

c) Identification of Marketing Environment

Demographic Environmental forces

Geographic distribution Most of the Suburban and rural geographies of India

Free Electricity Bicycle Marketing Plan

the O&M expenses of this bike are marginal.

Time-Starved and money constrained:-

a charging point in an individual household if run for 1 hour continuously.

This product is a technological breakthrough and has the potential to create

Free Electricity Bicycle Marketing Plan

Geography:- Suburban and rural geographies of India scarce of electricity

Age Structure Customers physically capable of utilizing the cycle and

Socio-economic:- Financial status of the families to afford the product

Psychographics:- Rural Indians trying to connect to outside world through

Clean, Free and reliable electricity at affordable prices

Free Electricity Bicycle Marketing Plan

e) Targeting and Target market:

segments. Thus Target markets based on geographical, demographical and pshychographical

1) Rural households deprived of basic electricity

2) Middle income families to save of electricity bills

3) Higher Income groups for fitness and contribution to green energy

(i) Positioning of Free Electricity Bicycle to different target consumers is proposed as

Our product Free Electricity Bicycle is a cycle

that generates free and clean energy, and also useful

Free Electricity Bicycle Marketing Plan

(ii) Positioning Possibilities:

Attribute positioning First ever technology mix of exercising cycle and

Benefit Positioning Free Electricity for 24 Hrs with 1 hour of cycling

Use Positioning For rural areas deprived of electricity

g) Setting the Product Strategy:

Free Electricity Bicycle is classified as a consumer product and is a tangible good

The product fits in to market place as a Shopping product.

o Basic product Hybrid bicycle for exercise and electricity generator

o Potential Product - Connecting multiple batteries to pool number of houses

Free Electricity Bicycle Marketing Plan

h) Attractive combination of 4Ps:

To educate rural target market who are deprived of basic electricity,

a) Marketing teams to be assigned with stalls at concentrated places of the village.

a) Rural families are to be educated on the advantages of free and reliable

b) Added advantages of electricity to be visualized to villagers to create demand for

c) 24 hr power supply as an output of Physical work of 1 hour to be demonstrated.

d) Affordability of the product on shared basis to give free power to a group of

families have to be communicated

Free Electricity Bicycle Marketing Plan

To educate MIG, HIG and GYM target markets:-