Title:ZSZS Case

Case Challenge
Challenge 2020 2018 Case Study

Team Name GNius

Team Leader Rajas Shah

Team Member 2 Dip Das

Team Member 3 Parth Shinde

Team Member 4 Mohamed Shamir

Team Member 5 Akshat Mangal

Graduation College Name IIT Gandhinagar

 SCQA

Situation Complications
Korean MNC Krypto Motors Limited data specifically
wants to launch their focusing on electrical cars;
renowned electric car brand Limited knowledge and
Electra in the Indian market. lesser acceptance of
electrical cars.

Key Questions addressed

• Section 1: Whom to market?
• Section 2: Where and how to
sell?
• Section 3 : What to sell?
 Executive Summary
Executive Summary

SITUATION: Krypto Motors tries market penetration by introducing a new model electra in
2021. We need to analyse the present market scenario and analyse the market size in
subsequent years. We need to analyse the fluctuations in demand of the other competitors
in the market after introduction of Electra. Also, we need to forecast how the market would
be in 10 years from the date of release of Electra.
Section #1
Approach to Question 1

1. The division of the total number of cars has been stated in the problem. We calculate
the number of cars of each variant and multiply the numbers with their respective
price. The market grows by 5% in a year. Hence, we calculate the market size of
2021.

2. Market share of electra is calculated by using three conditions; firstly that 5% of

existing customers will switch to electra, secondly 25% of existing customers will shift
to electra if its price is less than their car and half of the new customers goes to
Electra.

3. We calculate the customers that would switch from each of the car models, Eventually
it turns out that three cars have prices more than that of electra and among them
GMW has the highest price. Hence the highest revenue comes out of GMW.
 Q1. Analysis & Take &away
Section 1: Analysis Take away

1.1
The 2021 market size will be INR 307.60 crores.

1.2
2021 market share for Electra (based on units) if the car cost INR 3,500,000 will be 12,323.

1.3 (a)
GMW will lose most revenue to Electra.

1.3 (b)
Revenue lost by GMW to Electra = INR 967.5 crores.
 Question 2

We need to forecast the growth of Electra in the next 10 years provided it has a growth
similar to that of fluent(across 10 years) which is a competitor in business since 2008.
 Q1. Analysis & Take &away
Section 1: Analysis Take away

Approach to Question 2
We calculated the average growth of Fluent for 10 years which should have been same for
electra for the next 10 years till 2030. However, the revenue became stagnant from 2027
due to new competition. Hence the revenue is calculated from 2021 till 2027 only. The
average for 10 years of fluent was 6.5 %. Therefore Electra would grow by 6.5 % each year
until 2024. From 2025 till 2027 it would grow by 1.4 times 6.5 (mentioned in the case). This
sudden growth would be due to increased demand of electric vehicles after 2025.

2. From the assumptions and approach discussed above, the revenue generated by Electra
in 2030 = 172.16 Billion INR
 Q1. Analysis & Take &away
Section 1: Analysis Take away

3.
We assume that 40% of the annual advt. Budget (i.e. INR 4 Mn). This is because Event
advertisements provide maximum revenue and their highest returns occur at 40% of total
advt. budget (and stagnate further).
The following steps were taken to see how the other 60% is spent:
▪ The data given has the market composition for the consumer segments. We take
these as the weights for obtaining a weighted average of time spent on each activity,
Si (This represents the weighted average for activity i). This technique incorporates
the market composition as well as each section’s activity.
▪ Then, we total this weighted averages and find a quantity Ri = Si / (𝚺 Si ). Here, only
the Si corresponding to TV, Social media, Web browsing and Online (Web
browsing) are considered for the sum. The Ri for other media are equated to zero
(ignored). Sum of these equal to 1.
▪ Each of the above R is multiplied by 0.6 to arrive at the C1 set. These are the results
of our sheet.
 Q1. Analysis & Take &away
Section 1: Analysis Take away

3 (Contd.)
Each of the above R is multiplied by 0.6 to arrive at the C1 set. These are the results of our
analysis.
These values are corrected to the nearest integer to obtain our final composition, CF.
 Q1. Analysis & Take &away
Section 1: Analysis Take away

3.1.a
The marketing spend will be allocated as -
40% - Events
10% - Browsing (Online)
23% - Social networks
11% - Print
16% - TV.

3.1.b
Assumption: We assume the expected returns to vary linearly between two points corresp.
to multiples of 10%.
Max. revenue (Million INR) = 80 (events) + 5(online) + 26.5(social) + 10.5(print) + 16(TV)
= 138.
The maximum revenue that can be generated from these challenges is 138 Million INR.
 Q1. Analysis & Take &away
Section 1: Analysis Take away

3.2
The instructions can be tailored to maximise impact on a particular market segment.
Online: Focus mainly on C-suite corporates, young corporates and early adapters, by
using available interests and web data.

Social networks: Focus on groups with lower average data consumption (upto 300
MB/day). These are : young corporates, C-suite, private business owners.

Print: Target commercial users, private business owners and early adopters.

TV: Private business owners, young corporates and early adopters to be focused.

Events: Since events will be most likely be attended by potential commercial users, private
business owners and early adopters (enthusiasts).