VELO UP THE HILL

Team Gear-Up!

PGP 18

Shridhar SP

Anuj Sachan

Akhil Suresh

Toshal Mokadam

Raveendra Pedagadia

03/07/2014

WHAT
ISis THIS?
IIM Kozhikode
on hills. Yes,

seems like an exotic place to have a resort, move

around in your Golf cart wearing your holiday clothing, but on the second thought is it
not too much of a tiring exercise to climb close to 200 stairs every day to go to the
academic area?
With simple math you can say you climb and descend about 1200 steps each day.
Uff! That is 1/3rd of Tirupati Hill, 3/4th of the Empire State Building, NYC. Lot of effort
to be put along with already existing course work.
Can this be solved? Yes.
How many options are there? Many.
Can you list down a few of them? Sure.
Motorcycles - How many can we buy to make it available for most of the students
with the seed money we will get? 1 KTM Duke or 2 Karizma ZMR(2nd hand) or 3
CBZ Extreme( because, you know you live on the edge?) or 6 not so glamorous
lunas (Just for the sake of it). In summary, just not viable enough! (And think of the
harm to our Gods own kampus)
Electric Autos( or even autos) - Yeah Right!
Electric bikes - Good enough but the only problem is that we can buy only 5 of
them and they do not have enough power to pull you up the hill!
So, we the team GearUp! , present the most viable of them all and funnest thing we
have done in our childhood and probably the first birthday gifts for most of us

Velo up the hill

2

VELO UP
THE HILL
Become a
member

Drop it at our
cycling stations
around campus

Unlock bike
at biking stations

Ride around in
3
campus

Location Preferences

MDP
Block
Faculty
residences

Margin free
shop
L Block

Academic
area
Admin
Block

CUSTOMER SEGMENT
All members of IIM Kozhikode Family, i.e. students, faculty and
support staff, who require a faster mode of travel inside the
campus.

VALUE PROPOSITION

MotorBikes have high initial cost of ownership and most of

the students cannot afford it after the high loans taken for
education.
Cycles can be used by the members as a faster and
cheaper mode of commuting inside the campus.
Cycling will contribute to fitness and good health for the
members.
Unlike Motorbikes,use of cycles wont cause any pollution
to environment and will be aligned to IIMKs idea of
sustainable and greener existence.
First of its kind in-campus cycling initiative among the IIMs
which will increase the brand value of the IIM Kozhikode.

CUSTOMER
RELATIONSHIP
Gear Up! plans to hold monthly GearUp Day, cycle days
which will involve cycling competitions, Interactive session
with eminent cyclists.
Gear Up! plans to have a news letter for its members which
will have articles about cycling and other competitions with
perks given away for increasing the popularity among the
user base.
Gear Up! will have an open day on the day of launch, which
will have free renting and letting the customers to
experience the fun of cycling in campus and in turn which
will increase the potential customer base and brand
perception.

CHANNELS
Gear Up! plans to roll out the service through its self serviced
cycling kiosks. However, initial implementation will have
manned kiosks, further in the project it will be handled
automatically
A Smartphone Gear Up! app, which will have login
credentials for members will be released. This app will have
information about the availability of cycles at different kiosks
and also the utility to provide security key to unlock the cycle
with random generated secret code from any of the self
serviced kiosks and drop it back with a message through any
app, at any of our cycle kiosks.

KEY RESOURCES
Gear Up! will have to have self servicing bicycle kiosks with
provision to lock the cycles.
Gear Up! will need a fully online app, which will help in
maintaining the inventory for the team and help the customers
in knowing the availability and also the unlock passwords for the
bicycles.
Gear up! will have a dedicated team for cycle maintenance
contracted for regular repair and maintenance tasks.

KEY ACTIVITIES
Adding customers to the GearUp! Customer base.
Hiring of an efficient maintenance team, which will take care of the product on a
regular basis.
Development of Android app and web engine to maintain inventory and security
system.
Procurement of the bicycles from the lowest bid so that the cost of procurement will be
low.
Procurement of cycling self service kiosks and setting them up.
Maintaining database for cash management.

KEY PARTNERS
Vendors of bicycles.
Bicycle maintenance team.
Tie up with other cycling communities.

10

COST STRUCTURE
Total Cost
Procurement of
bicycles
Setting up of cycling
kiosks

30*4000 = 1,20,000
30000

Setting up of web
infrastructure for co
ordination and inventory
management

15000

Total Costs

1,65,000

11

REVENUE STREAMS
Number of cycle
hours per
month/members

Total revenue/
month

Hourly membership 10/hour

20*4*30

24000

Monthly members

100/month

50

5000

Cost of
maintenance

-1000

All prices in Rs.

Charge

Cost of hiring a care

5000/month
taker

-5000

Profit made

23000

By calculations, even if an occupancy of 9 months is considered in an year,

total turnover made in an year will be Rs. 2,07,000/- . With a monthly revenue
of Rs.23000. We expect to break even in 8 months from the start of
operation.

12

CONTINGENCY PLAN
Event

Likelihood of
happening

Lukewarm
50%
response

Solution to deal
with the event

How?

Sell the
bicycles to
the same
or nearest
Terminate
vendor to
the
get at
business
least 75%
of the
investmen
t.

13

THANK YOU

14