project report on electronic bikes (e-bikes)

Consumer Awareness and Perception towards E-bikes

1. EXECUTIVE SUMMARY

The Topic of study was “A STUDY ON CONSUMER AWARENESS AND PERCEPTION TOWARDS GENXT ELECTRIC BIKES” GENXT POWER (INDIA) (INDIA) LTD was incorpo incorporate rated d on Septemb September er 26, 2002, having its registered office in Mumbai and its manufacturing unit at Vasai. Genxt has assembled various innovative technologies to manufacture the first Elec Electr tric ic TwoTwo-wh whee eele lerr to serv servee the the pers person onal al and and comm commer erci cial al need need of the the prospective Indian consumer . The crowning glory of the company’s remarkable remarkable success is the fact that now it has become a full fledged limited company i.e. GENXT Power India Ltd. It has been been alway alwayss belie believe ved d cust custome omerr as an impor importan tantt stoc stock k ho holde lderr in bu busin siness ess.. Therefore consumer awareness is of prime importance to the organization. The objective objective of the study was to know about the awareness of electric bikes among the people and what is the perception of the users about the bikes is and to explore how the sale of electric bike can be increased. The data collected for the project was based on primary and secondary data. The sample size selected for the survey was 100. The primary data collected through questionnaire. The survey was conducted for 4 weeks and data was collected from direct questionnaire and interview. The collected data was analyzed and interpreted to obtain the conclusion by using graphical representation.

1 Department of Management Studies, MSRIT


STATEMENT OF THE PROBLEM:

With increasing in air pollution in urban areas and scarcity of fuels Electric Bikes is in great demand but it is not used by most of the people because of lack of awareness. Thus the purpose of the study is to study the awareness level of cons consume umers rs towa towards rds E-Bik E-Bikes es and and also also the perce percept ption ion of the users users.. Thus Thus by creating awareness we can enhance the sales of Electric Bikes The objectives of the study are; •

To find out the awareness of consumer about the electric bikes.

•

To find out the reason why consumer prefers to electric bike.

•

To find out the factor influencing the sales of electric bike.

•

To know the users perception about electric bikes.

To suggest measures to increase sales of electric bikes. SAMPLING DESIGN: Sampling unit

:

Users of two wheelers in north Karnataka

Sampling size

:

100

Sampling method

:

Non probability

Sampling technique

:

Convenience sampling

MAJOR FINDINGS •

It was found that most of the customers are not much satisfied with the price of the product, and Price quoted by the companies has affected the customer satisfaction to a great deal.



•

It was found that most of the customers were satisfied with the mileage of the Electric bikes and are convinced about the electric bike benefits and were willing to refer it to their friends.

•

It was found that most of the customers are not satisfied with after sales service. It shows that customers are dissatisfied about after sale service.

•

It was found that that maximum number number of the customers customers feel the speed speed of the Electric bikes to be very low and were not satisfied with the current speed of the bikes.

•

It was found that most of the respondents feel that the factors such as speed & power, battery life and appearance of Electric Bikes are the main reasons for its lower market share.

MAJOR SUGGESTIONS: •

Ther Th eree are are on only ly few few adve advert rtis isem emen ents ts in news newspa pape pers rs and and TVs. TVs. Th Thus us maximum advertisements need to be put up in these Medias as they reach wider audiences.

•

The price of the electric bikes need to be decreased it can be done by adopting sophisticated technologies and carrying out mass productions or some discounts discounts on price or offers offers should be given given in order to increase increase the sales.

•

More number of service centres need to be opened at least in major areas to cater to the problems & needs of the customers when needed.

•

As most of the people prefer high speed the speed of the electric bikes need to be improved so as to increase the sales of the E-Bikes.



•

Promo Promotio tiona nall activ activiti ities es shou should ld be increa increase sed d to creat createe aware awarene ness ss and and increase the sales. Like it should be displayed in auto shows and to attract more youths demonstrations demonstrations and special special offers should be given to college students.

LIMITATIONS TO THE STUDY:

Some of the limitations of the study may be summarised as follows 

An underlying assumption for entire project is that the details and feedback received from population are true.



It was was diff diffic icul ultt to find find resp respon onde dent ntss as they they were were bu busy sy in thei their r schedules and collection of data was very difficult. Therefore study had to be carried out based on availability of respondents.



Some of the respondents were not ready to fill the questionnaire and some of them not ready to come out openly.



Also Also the the samp sample le size size of 10 100 0 may may no nott trul truly y repr repres esen entt whol wholee population.



2. INTRODUCTION TO THE CONCEPT Marketing:

It is defin defined ed by the Americ American an marke marketin ting g asso associa ciatio tion n as the the activ activity ity,, set set of instit instituti ution ons, s, and and proce process sses es for for crea creatin ting, g, commu communic nicat ating ing,, delive deliverin ring, g, and and exch exchan angin ging g offer offering ingss that that have have value value for for custo customer mers, s, clien clients, ts, partn partners ers,, and society at large. The term developed from the original meaning which referred literally to going to market, ass in shopping, or going to a market to sell goods or services. Awareness:

It is a term referring to the ability to perceive, to feel, or to be conscious of events, objects or patterns, which does not necessarily imply understanding. In bio biolo logi gica call psyc psycho holo logy gy,, awar awaren enes esss comp compri rise sess a hu huma man’ n’ss or an anim animal al’s ’s perception and cognitive reaction to a condition or event. E-BIKE:

An Electric Bike or Scooter is a battery operated vehicle that is very economical with low maintenance cost and zero pollution. Electric two wheelers use the electrical technology of rechargeable battery that converts the electrical energy into mechanical energy. The battery of an EV can be charged easily using a power connection. There are many possible types of electric motorized bicycles with several technologies available, varying in cost and complexity; direct-drive and geared motor units are both used. An electric power-assist system may be added to almost any pedal cycle using chain drive, belt drive, hub motors or friction drive. The power levels of motors used are influenced by available legal categories and are often limited to under 700 watts. Electric bicycles use rechargeable batteries, electric motors and some form of 5 Department of Management Studies, MSRIT


control. This can be a simple as an on-off switch but is more usually an elect electron ronic ic pu puls lsee width width modul modulati ation on cont contro rol. l. Elect Electric ric bicy bicycle cless devel develop oped ed in Switzerland in the late 1980s for the Tour de Sol solar vehicle race came with solar charging stations but these were later fixed on roofs and connected so as to feed into the electric mains.[13] The bicycles were then charged from the mains, as is common today. Battery systems in use include lead-acid, NiCd, NiMH and Li-ion batteries. Elect Electric ric motor motoriz ized ed bicyc bicycle less can can be po powe wer-o r-on-d n-dem eman and, d, where where the moto motorr is activ activate ated d by a hand handleb lebar ar mounte mounted d throt throttle tle,, and/o and/orr a pede pedelec lec (from (from peda pedall electric), also known as electric assist, where the electric motor is regulated by pedalling. These have a sensor to detect the pedalling speed, the pedalling force, or both. An electronic controller provides assistance as a function of the sensor inputs, the vehicle speed and the required force. Most controllers also provide for manual adjustment. Range is a key consideration consideration with electric bikes, and is affected by factors such as motor motor efficien efficiency, cy, battery battery capacit capacity, y, efficie efficiency ncy of the driving driving electro electronics nics,, aerodynamics, hills and weight of the bike and rider. The range of an electric bike is usually stated as somewhere between 7 km (uphill on electric power only) to 70 km (minimum assistance) and is highly dependent on whether or not the bike is tested on flat roads or hills.[14] Some manufacturers, such as the Canadian BionX or American E+ (manufactured by Electric Motion Systems), have the option of using regenerative braking, the motor acts as a generator to slow the bike down prior to the brake pads engaging.[15] This is useful for extending the range and the life of brake pads and wheel rims. There are also experiments using fuel cells. e.g. the PHB. Some experiments have also been undertaken with super capacitors to supplement or replace batteries for cars and some SUVS. 6 Department of Management Studies, MSRIT


The energy costs of operating electric bicycles are small, but there can be considerable battery replacement costs. Riding an electric bicycle to work or to the store instead of taking a car has long term financial gains. Solar power is possible when charging an electric bicycle. WHY E-Bikes:

Global warming is a major concern all around and to save Mother Earth, there are several policies, promises and pledges. With the ever increasing emission of greenhouse gases, there is an increased fear of environment pollution at every step tep.

With

mod modern

tec technolog logy

and

innovatio tion,

transpo nsporrtat tation ion

and

communication have undergone a paradigm shift. Along with this, we are also experie experiencin ncing g the negativ negativee effects effects of industri industrializ alizatio ation n in the form of global global warming. Under these circumstances, when there are traffic jams, when you need to run an errand at an odd hour of the day, when you need to go to workplace quickly, you stumble and fumble as there are so many vehicles emitting soot and CO2 polluting the air incessantly. With increased number of fossil-fuel dependent vehicles, they not only add to greater level of pollution but are are also also lead leadin ing g to depl deplet etio ion n of fuel fuel reso resour urce ce.. It is here here that that auto automo mobi bile le companies felt the need to innovate motorized vehicle that will get charged through electricity and will not be depending on fossil fuels. This led to expansion of eco-friendly initiatives and many automobile manufacturing companies invested in research and development to bring forth electric bikes that will help people save a few bucks by reducing consumption of already spiraling fuel price, besides fighting global warming. Most electric bik bikees are emis mission ion-fre -freee bikes and thi this is the the USP of the the compa mpany’s manufacturing them in these days of global warming. It will not add to urban



pollution. The only thing required is to keep this bike charged with a battery. Electric bike manufacturing is considered as a grass root movement away from fossil fuels. Definitely, electric bikes are not the only answer to our environment problem, but it definitely will help us to treat environment better. These electric bikes will not make pollution worse and that makes e bikes environmentally safe vehicle. It can be charged with the help of inverter and generator too. In one charge, these these electric bikes can go up to 50km and has no tail pipe emissions. emissions. It also makes no noise while under operation. The best part of electric vehicles is that they can be run with no registration and license. In the manufacture and production of electric bikes, the main constraint is the battery in the bumpy roads. Batteries get deteriorated at a fast rate due to excessive current fluctuation. Batteries need frequent replacement and that is the greatest concern for the most Indian companies who manufacture these electric bikes. The replacement cost of the batteries hover around Rs. 5000, but othe otherw rwis isee the the main mainte tena nanc ncee cost cost of elec electr tric ic bike bikess is almo almost st negl neglig igib ible le.. There is a growing market potential of electric bikes in India; however, speed might not be the attractive feature of these e-bikes, they will cater you to run the short distances maybe home to office or home to college; but these are safer vehicles with benefit of almost no pollution. So instead of kicking a 100 cc motorbike, just press the start button of electric bike and vroom your way friendly on the roads. It is evident that electric bikes can reduce the air pollution. But there are also some environmental problems caused due to these electric bikes. Disposal of



worn out batteries can be a cause of major concern for environmentalists. If this can be addressed, electric bikes can definitely reduce environment pollution.

Bene Benefi fits ts Of

Genxt enxt E

-Sco -Scoot oty y

VisVis-AA-Vi Vis s

Ic Engin Engine e

Scooters

Particulars Weight

of

the

scooty Range

(Kms)

/

Litre of Petrol Cost / 100 Kms Cost

of

Fuel

:

of

Fuel

-

Rs/Km Cost Power

Electric Scooty

Ic Engine Scooter

75 kgs

8 4 kg s

65/ Charge

50 / Ltr.

Rs. 6.00

Rs. 110 (2 Ltrs)

Rs. 0.06

Rs. 2.00

over 1.800.00

33000

30,000 Kms in Rs Service

and 1,000.00

9,000.00

Maintainance over 30,000 Kms, 9 Department of Management Studies, MSRIT


Rs Battery Replacement

10000

s et

over 30,000 Kms, batteries

of

4

-N.A. --

Rs Total

Expense

towa to ward rds s fuel fuel fo for r 12,800.00

42,000.00

30,000 Kms, Rs Cost Ex

of

Scooter

Showroom 29980

32,000.00

(Rs) Registeration

--N.A.--

620

--N.A.--

2,480.00

Insurance (Rs)

478

809

Handling (Rs)

100

100

30,558.00

36,009.00

43,358.00

78,009.00

(Rs) Registeration Tax (Rs)

Total To tal Invest Investmen mentt on Scooter (Rs) Total To tal Invest Investmen mentt +

Running

cost

30,000

Kms

for (Rs)



GENXT POWER INDIA LIMITED Features of Electric Bikes and Scooters:

Electric bikes or scooters, light in weight, trendy, efficient efficient and eco-friendly, eco-friendly, are becoming potent alternative to the conventional two-wheelers and the Electric two-wheeler

industry

in

India

is

developing

at

rapid

speed.

Have a look at the unavoidable advantages of Electric Bikes and Scooters : •

Licence and registration is not required for E Bikes and Scooters.

•

Electric two wheelers run on re-chargeable re-chargeable battery and uses electricity as fuel in place of conventional Petrol/Diesel.

•

E Bikes and Scooters can beat the rising prices of Petrol/Diesel.

•

Simple design, light weight and economical Electric vehicles are very low in running and maintenance cost.

•

With the ease of handling, Electric two wheelers saves the commuting time in congested roads specially in urban areas.

•

Electric vehicles are more efficient in terms of generating usable energy from from their their elec electri tricc engin engine's e's batte battery ry in compa comparis rison on to the regul regular ar fuel fuel conversion. conversion. In this way E Bikes and Scooters are innovative and efficient mode of personal transport.

•

Electric bikes or scooters use electricity electricity therefore no emission of harmful gases like Carbon dioxide (CO2) or Nitrogen dioxide (NO2).

Major Components of an Electric Bike or Scooter: ELECTRIC HUB MOTOR to drive the rear wheel directly and there are two

types of Electric Hub Motor i.e. DC Brush Motor and DC Brush less motor having two basic parts namely Permanent Magnet Stator and Wound Rotor. 11 Department of Management Studies, MSRIT


ELECTRONIC MOTOR CONTROLLER MOTOR CONTROLLER is the central controlling unit of

any Electric two wheeler provides electric power to the motor based on inputs from the accelerator. ELECTRONIC ACCELERATOR sends electronic signals to the Electronic

Motor Controller to manoeuvre the bike or scooter. BATTERY PACK is like the fuel tank of E Bike or Scooter. There are

different kinds of batteries like Lead Acid, Nickel Metal Hydrate (Ni-MH), Lithium, etc. that are used for supplying energy. BATTERY CHARGER is used to charge the battery pack of E Bikes or

Scooters, just like a mobile phone or a laptop. Some battery chargers are in-built and some are separate that carried always on the move. The charger converts an AC supply to DC to store power in the battery and it can be used with any normal domestic AC plug point. This makes charging of battery pack easy and convenient.



3. INDUSTRY PROFILE: The face of auto industry that was redefined with the invention of fuel-efficient four-stroke engine technology is all set to see dawn of a new era in two-wheeler industry. It's not petrol or diesel or any other fuel, but its electricity that have initiated a revolution in two-wheeler industry in India. Indian two-wheeler industry has embraced the new concept of Electric Bikes and Scooters that are very popular mode of personal transport in the developed coun countr trie iess like like Amer Americ ica, a, Japa Japan n and and Chin China. a. With With the the risi rising ng cost cost of fuel fuel at International and national level, increasing levels of pollution and congestion in transport transport system specially specially in Urban areas, higher running and maintenance cost of vehicle, the electrically charged bikes or scooters have very bright future in area of personal transportation. “It is estimated that India’s fossil fuel dependency on other countries currently from 70% to 82% in 2012. If we can have three lakh Electric Vehicles on the roads by 2020, including three-wheelers, cars, and scooters, this could result in a reduction of over 16 lakh metric tons of CO, NOx and HC by 2020 , savings of over Rs 3,700 crore in foreign exchange and significant health costs savings” Economic conditions around the world have been very encouraging. Globa Globall growth growth is increa increasi sing ng year year by year year .While .While the the Chine Chinese se econo economy my is 13 Department of Management Studies, MSRIT


growing at around 10% without any signs of slow down, the Indian economy is also continuing to grow at more than 8%. In the coming years, and Indian economy will be booming owing to the heavy demand on infrastructure. Energy sector is growing by leaps and bounds as it is receiving the highest attention of both the State Governments and Central Government. India has moved from an agrarian economy to a manufacturing manufacturing economy. economy. The manufacturing sector now contributes around one-fourth of the total GDP and the industrial output has now crossed USD 65 Billion in value.Global steel production is continuing its growth. In spite of some control measures adopted by Chinese Government the crude steel registered an impressive growth and has cross crossed ed 45 450 0 millio million n tons. tons. India India is also also witne witness ssin ing g a hu huge ge growth growth in steel steel production and it is expected that steel industry will continue to grow by more than 12% per annum. Sustainable economic growth of India as well as rest of the world will depend on effective energy planning. Nearly 40% of the world’s energy comes from petroleum. Natural gas contributes to another 20% and these two natural resources account for 60% of the world’s energy. The growth in consumption of oil and natural gas in the past has been such that the consumption has been doubling every 15 years. This trend is likely to continue and will lead to complete depletion of natural resources in next 30 years. It is significant to note that that more more than than 20 20% % of the the worl world’ d’ss tota totall prim primar ary y ener energy gy is cons consum umed ed in transportation. There are more than 410 million cars currently in the world and in another 20 years the automobile population will reach one billion mark. It is also significant to note that after 1970 the new oil discoveries have been very few and any new discoveries will not make any significant contribution to the world’s energy pool.



Transportation sector which consumes a large share of energy resource of the country also contributes significantly towards pollution. So the main mission is to provid providee vehic vehicles les which which are emiss emission ion free free,, which which do no nott use use petro petroleu leum m produc products ts and which are inexpe inexpensiv nsivee to acquire acquire and operate operate.. Our launch of battery operated Bikes has been highly successful and Genxt is now developing several new vehicles for the Indian market. Our launch in India has developed interest for our vehicles for international market also and in the future we will be exporting these these vehicles vehicles to other countries. countries. Genxt will continue to provide provide leadership in this segment by delivering innovative, cost effective, practical and environmental friendly electric vehicles. Economic and environmental forces are frequently pitted against each other and many a times the financial cost of environmentally friendly technologies and goods is so high high that one has to strike a balance balance or look for Government Government subsidies. Our Electric Vehicles are unique in this aspect as they are not only economical but also environment friendly. ORIGIN AND HISTORY:

Most People are not aware of how long electric bicycles have been around you might think its something new since the recent fuel shortage and cost spikes we all hate, or even because of Global Warming and the whole go green awareness. But not true although it might be one reason for their recent surge in popularity also the technology has improved 10 fold.In the 1890s, electric bicycles were documented within various U.S. patents. For example, on 31 December 1895 Ogden Ogden Bolto Bolton n Jr. was was gran grante ted d U.S. U.S. Paten Patentt 55 552,2 2,271 71 for a batte batteryry-pow powere ered d bicycl bicyclee with “6-pole “6-pole brush-an brush-and-co d-commut mmutato atorr direct direct curren currentt (DC) hub motor motor mounted in the rear wheel.” There were no gears and the motor could draw up to 100 amperes (A) from a 10-V battery. 15 Department of Management Studies, MSRIT


Two years later, in 1897, Hosea W. Libbey of Boston invented an electric bicycle (U.S. Patent 596,272) that was propelled by a “double electric motor.” The motor was designed within the hub of the crankshaft axle. This model was later re-invented and imitated in the late 1990s by Giant Lafree electric bicycles. By 1898 a rear wheel drive electric bicycle, bicycle, which used a driving belt along the outside edge of the wheel was patented by Mathew J. Steffens. Also, the 1899 U.S. Patent 627,066 by John Schnepf depicted a rear wheel friction “rollerwheel” style drive electric bicycle.Schnepf's invention was later re-examined and and expa expande nded d in 19 1969 69 by G.A. G.A. Wood Wood Jr. with with his his U.S. U.S. Paten Patentt 3,431 3,431,99 ,994. 4. Wood’s device used 4 fractional horsepower motors; each rated less than ½ horsepower and connected through a series of gears. Torque sensors and power controls were developed in the late 1990s. For example, Takada Yutky of Japan filed a patent in 1997 for such a device. In 1992 Vector Services Limited offered and sold an electric bicycle dubbed Zike. The bicycle included Nickel-cadmium batteries that were built into a frame member and included an 850 g permanent-magnet motor. Despite the Zike, in 1992 hardly any commercial electric bicycles were available. It wasn’t until 1998 when there were at least 49 different bikes. Production grew from 1993 to 2004 by an estimated 35%. By Contrast, according to Gardner, in 1995 regular bicycle production decreased from its peak 107 million units. Some of the less expe expens nsive ive elect electric ric bicyc bicycle less used used bu bulky lky lead lead acid acid batte batterie ries, s, where whereas as newer newer model modelss gener generall ally y used used NiMH, NiMH, NiCd NiCd and/o and/orr Li-ion Li-ion batte batterie riess which which offer offered ed ligh lighte ter, r, dens denser er capa capaci city ty batt batter erie ies. s. Th Thee end end bene benefi fits ts usua usuall lly y vari varied ed from from manufacturer; however, in general there was an increase in range and speed. By 2004 electric bicycles where manufactured manufactured by Currie Technologies, Technologies, EV Global, Optibike, Giante Lite, Merida, ZAP. Electric bicycles are very common in many cities of eastern China, such as 16 Department of Management Studies, MSRIT


Yangzhou; in some areas they may outnumber motorcycles or regular bicycles By 2001 the terms, E-Bikes, power bike, pedelec, assisted bicycle and powerassisted bicycle where commonly used to describe electric bicycles. E-bike, according to Google, is a term that has increased in trend. This term generally refe referr rred ed to an elec electr tric ic bicy bicycl clee whic which h used used a thro thrott ttle le.. Th Thee term termss Elec Electr tric ic Motorbike or E-Motorbike have been used to describe more powerful models which attain up to 80 km/h. PEDEGO Electric Bicycles are taking the nation by storm, offering a stylish, and colourful electric bikes that use a throttle control for power. In a paral parallel lel hy hybr brid id motori motorize zed d bicy bicycle cle,, such such as the afore aforemen mentio tione ned d 18 1897 97 inven inventio tion n by Hose Hoseaa W. Libbe Libbey, y, hu huma man n and and motor motor inpu inputs ts are are mecha mechani nica cally lly coupled either in the bottom bracket, the rear or the front wheel, whereas in a (mech (mechan anica ical) l) serie seriess hyb hybrid rid cycl cycle, e, the hu huma man n and and motor motor inpu inputs ts are coup couple led d through differential gearing. In an (electronic) series hybrid cycle, human power is converted into electricity and is fed directly into the motor and mostly additional electricity is supplied from a battery. Pedelec Pedelec is a European term that generally referred to an electric bicycle bicycle that incorporated a torque and/or a speed sensor and/or a power controller that delivered a proportionate level of assist and only ran when the rider pedalled. On the opposite side, a Noped is a term used by the Ministry of Transportation of Ontario for similar type vehicles which do not have pedals or in which the pedals have been removed from their motorized motorized bicycle. Finally, Assist Bicycle is the technical term used to describe such a vehicle and Power-Assisted Bicycle is used in the Canadian Federal Legislation, but is carefully defined to only apply to electric motor assist, and specifically excludes internal combustion engines (though this is not the case in the United States). Today, China is the world's leading producer of electric bicycles. According to 17 Department of Management Studies, MSRIT


the data of the China Bicycle Association, a government-chartered industry grou group, p, in 20 2004 04 Chin China' a'ss manu manufa fact ctur urer erss sold sold 7.5 7.5 mill millio ion n elec electr tric ic bicy bicycl cles es nationwide, which was almost twice the year 2003 sales; domestic sales reached 10 million in 2005, and 16 to 18 million in 2006.[8] By 2007, electric bicycles were thought to make up 10 to 20 percent of all two-wheeled vehicles on the streets of many major cities. A typical unit requires 8 hours to charge the battery, which provides the range of 25–30 miles (40–50 km),[8] at the speed of around 20 km/h. A large number of such vehicles is exported from China as well (3 million units, worth 40 billion yuan ($5.8 billion), in the year 2006 alone) We are looking at practical and true figures of current Indian markets. Current year 2009-10 will end up with Indian total e-bikes sales at 120K bikes. Every year market is expected to rise initially by 100% and then by 200%. A lots of bikes we will see on the road in coming 5 years, just like bicycles and petrol scooters. As people started accepting the technology and limitations of e-bikes, a defi defini nite te po posi siti tive ve tren trends ds has has star starte ted d no now. w. Due Due to coll collec ecti tive ve effo effort rtss by manufacturers, Ads, PRs, dealership networks hard work, people accepting e bikes in a middle segment between bicycle and petrol scooter. If you see both ends i.e. bicycles and petrol bikes are showing very attractive attractive sales figures. The middle segment of e-bikes has turned now to enter in the high growth curve. Elect Electric ric Bikes Bikes compa compani nies es are highl highly y optimi optimisti sticc about about the e-bi e-bike kess futur future. e. According According to a survey India may surpass surpass china in numbers numbers of e-bikes sale by 68 years. Indian manufacturers of electric bikes, or e-bikes, are gearing up for what they call a second wave of growth for these “plug and ply” bikes. They say they are on the verge of launching launching faster versions of their bikes and this would blunt the edge of traditional two-wheeler two-wheeler bikes in the country. Electric bikes operate on a 18 Department of Management Studies, MSRIT


chargeable battery and do not require petrol to operate.All the e-bikes today do nott requi no require re regi registr strat ation ion or licen license se.. This This means means they they have have to follo follow w certa certain in statutory norms that specify that the speed of such two-wheelers should not be more than 25kmph. “Some of the ee- bikes companies companies are now all set to launch launch a new e-bike—that e-bike—that would have an engine of 750 watts, compared with 250 watt engines that existing e-bikes have. It would require registration and license to ride and the average speed would be 35-40 kmph. This would help explode the demand for e-bik e-bikes es in India India,” ,” says says Avina Avinash sh Bhan Bhanda dari, ri, direc director tor of Ahmed Ahmedab abad ad-ba -base sed d Electrotherm (India) Ltd one of the major Electric bikes manufacturers, He says “The real game would begin when we launch our high powered engine e-bike to compete with TVS Scooty Pep+ and Honda Activa”. Citing the reason for the new models, Bhandari said that potential buyers were apprehensive as they believed that a scooter has to look like a scooter and must carry more weight at higher speeds. “To a common user, performance and affordability is important. It does not matter what fuel is being used or no fuel is being used,” he added. Ganesh Mahalingam, managing director of Ultra Motors Co., another entity that manufactures e-bike in joint venture with Hero Electric of Hero Cycles group, says that they too are working on a faster electric vehicle that would have a speed of about 50-70kmph. “It would take us six more months but remember that the electric bike market has come of age only in last six months as, unlike in the west where e-bike is a lifestyle product and for some an environment frien friendly dly tech technol nolog ogy, y, in India India it is an econ econom omica icall mode mode of tran transp sport ortat ation ion.. Primarily it is an

aam admi

(common man) vehicle as it is 10 times cheaper to

operate an electric two-wheeler that the traditional petrol bike,” Mahalingam said. 19 Department of Management Studies, MSRIT


Hero Cycles Ltd, like Electrotherm, launched its range of Hero electric ultra power powered ed electr electric ic two-wh two-whee eele lers rs in seve seven n varia variants nts of e-bike e-bikess and and e-sc e-scoo ooter terss branded as Hero Electric and priced between Rs14,300 and Rs19,000. The escoo scooter terss are in the the rang rangee of Rs22, Rs22,00 000-2 0-28,0 8,000 00.. With With no organ organize ized d bo body dy to represent these manufacturers, industry players guess that there are between 75 and 80 players manufacturing e-bikes in India. Still, key hurdles remain for the e-bike industry.One of the major issues is that many small players are flooding the markets with a product that doesn’t meet statutory requirements. “They are not supposed to have a speed of over 25kmph, but many do as they use a motor of higher capacity. Some of them launch their vehicle and also give warranty but do not have adequate dealer or service network. They also do not have spare parts. All this creates a very negative image in the minds of people and can badly affect the growth of this industry in the medium and long run,” claims Bhandari. Elect Electric ric bike bike manuf manufac actur tures es are ho hopin ping g that that the crea creatio tion n of a stron strong g deale dealer r network and service support will help make a dent in the conventional twowheeler market.



4. COMPANY PROFILE:

The crowning glory of the company’s remarkable remarkable success is the fact that now it has become a full fledged limited company i.e GENXT Power India Ltd. It has been been alway alwayss belie believe ved d cust custome omerr as an impor importan tantt stoc stock k ho holde lderr in bu busin siness ess.. Therefore consumer awareness is of prime importance to the organization. The objective objective of the study was to know about the awareness of electric bikes among the people and what is the perception of the users about the bikes and to explore how the sale of electric bike can be increased GENXT POWER (INDIA) LIMITED , was incorporated on September 26, 2002, having its registered office in Mumbai and its manufacturing unit at Vasai. Genxt has assembled various innovative technologies to manufacture the first Electric Two-wheeler to serve the personal and commercial need of the prospective Indian consumer. Genxt Power India Ltd, is a Mumbai based public limited company in the business of manufacturing and marketing of electric vehicles. It has been in the business of manufacturing and selling Electric Bikes since 2002. Main aim of the company is to provide cost- effective, environmentally friendly, stress-free, personal transport for work and recreation. As one of the well-known and professional manufacturers and exporters of electric bikes field, we are dedicated to producing the highest quality electric bicycles and tricycles as well as top normal bicycles not electric, the company uses only quality parts putting all our bikes together! Company is committed to 21 Department of Management Studies, MSRIT


providing its customers with the best quality and after service which will lead to our client's flourish development. Meanwhile, the company always focus on the details and ready to make any slightest changes which are required to meet our client's satisfaction. Because it deeply realize that the ability to dominate the market for electric bicycles will be won in the small details. All the production procedures strictly comply with ISO 9001-2000 standards. The company has its own IPS Technology (Integrated propulsion system). The company draws great strengths from its technological developments and patents in the related fields. Patents:

Genxt holds patents for ‘Lead Plastic Composite grid for Rechargeable Lead Acid Accumulator (battery), ‘Inverter Circuit’, and ‘Rear Guard’ under Paris Convention. Battery Technology

The company possess Patents for Plastic grid Bi-Polar Batteries which are designed to get charged to 90% of its capacity in about 20 minutes. Charger Technology

The float cum boost technology has been used in our chargers so that when the charger is connected to the battery the output first goes to the boost charging mode and thus the battery will charge faster unlike that in a plain float charger. Mechanics and Mechanical design

The world patented product ‘Rear Guard’ prevents a vehicle from rolling back on slope. The concept of this patent is used in drive mechanism of our electric vehicles. A four stroke IC engine without piston and cylinders is also developed for the hybrid model of our Ev’s.



The most important differentiator of our technology is high density power batteries, fast charging mechanism and dependable and reliable electronic gadgets like charger and controller.

Future Plans

The Company plans to introduce variants of electric vehicles in 2 and 3 wheeler segment and also wish to foray in Hybrid vehicles. VISION, MISSION & QUALITY POLICY: Vision

“To create an economically viable, noise and pollution free environment with the launch of battery powered Electric two wheeler and to be product leader through the state of art manufacturing technologies & processes” The Quality Is the Essence of Business; the Credibility Is the Way to Succes Mission

Deve Develo lop p and and prov provid idee meta metall llur urgi gica call equi equipm pmen ent, t, prod produc ucts ts and and serv servic icee at competit competitive ive prices, prices, integra integrating ting best manufac manufacturi turing ng practice practicess and providi providing ng innovative and eco friendly technologies and products for the benefit of the society. Core Values:

• Business ethics • Customer Focus • Professional pride • Mutual Respect • Speed and innovation 23 Department of Management Studies, MSRIT


• Excellence in manufacturing • Total quality Corporate Objectives: Business Portfolio Growth:

o To further consolidate Genxt position as a leading supplier of metallurgical equipment in national and international market. o To grow its engineering capabilities by providing turnkey solutions to the customers and implement projects from concept to full commercialization. o To diversify across the electric vehicle business to become a leading player in battery operated vehicles in the country. o To esta establ blis ish h a stro strong ng prod produc uctt and and serv servic ices es bran brand d in the the do dome mest stic ic and and international market. Customer Focus:

o To develop a special relationship with customers to ensure not only customer delight but customer success. o To expand the relationship with existing customers by offering additional services services in engineering, engineering, energy conservation conservation strategies, environment environment protection protection technologies and best operating practices. o To expand the customer base by providing them with newer products. o To use use cust custom omer er feed feedba back ck for for desi design gn impr improv ovem emen entt and and new new prod produc uctt development.



Dynamic Corporation:

o To develop an agile and effective organization which adopts and adapts to the changes in business environment by continuously assessing the opportunities and encashing them and evaluating the threats to mitigate them. o To develop a learning organization having technology based competitive edge in current businesses and future initiatives. Performance:

o To cont continu inuou ously sly impro improve ve the perfo performa rmanc ncee with with emph emphas asis is on cycle cycle time time reduction and cost control in order to sustain long term competitiveness. o To improve on project execution time and cost to ensure long term viability. o To operate and maintain the manufacturing facilities at par with the best-run engi engine neer erin ing g and and meta metall llur urgi gica call comp compan anie iess in the the worl world d with with resp respec ectt to productivity,equipment availability, operational reliability and product quality. o To achie achieve ve qualit quality y by embe embedd dding ing the the best best prac practic tices es in all syst systems ems and and processes. Human Resource Development:

o To enhance commitment of employees by rewarding and recognizing superior performance. o To imbibe a culture of team building, innovation, empowerment and openness in order to align all individuals towards the company’s goals. 25 Department of Management Studies, MSRIT


o To bu build ild and and sust sustain ain a learn learning ing organ organiza izatio tion n of comp compete etent nt world world clas classs engineers and professionals. Financial Soundness:

o To continuously strive to reduce cost of capital through prudent deployment of funds. o To develop sound commercial policies which ensure reasonable returns and remuneration. Environment Protection:

o To contribute to reduction in global warming and pollution by encouraging and developing environmental friendly technologies and products. o To become a lead player in developing electric and hybrid electric vehicles which not only lead to cleaner cities but also will reduce consumption of liquid fuel which is largely imported by the country. Research & Development:

o To conti continu nuee effo efforts rts in deve develop loping ing cost cost effec effectiv tive, e, relia reliable ble and and effic efficien ientt technologies for Indian and overseas customers. o To pass on the benefit of Research & Development to the customers. o To carry out research in development of alternate fuels and technologies



PRODUCTS PROFILE:



Tricycle Freedom Buggy



AREA OF OPERATION:

GENXT POWER INDIA LTD is mainly situated in Mumbai. The company was starte started d in 20 2003 03 and and it is grad gradua ually lly expa expand nding ing natio nationa nally lly and and glob globall ally. y. In Karn Karnat atak akaa the the comp compan any y mark market etss it’s it’s thro throug ugh h the the auth author oris ised ed cons consig igne neee Maha Mahash shod odaa Mark Marketi eting ng,, Hubli Hubli who marke markett the the bikes bikes throu through gh Distri Distribu buto tors rs situa situated ted in Gada Gadag, g, Dharwa Dharwad, d, Baga Bagalko lkot, t, Davan Davange gere re,, Shirs Shirsii etc and and it is still still expanding its bases to other urban areas. COMPETITORS: Electrotherm India Limited: Manufacturer, exporter and supplier of electric

bikes, hybrid electric bikes, hybrid electric vehicles, YO bykes, YO exl bykes, YO speed bykes, battery bikes, no petrol bikes, YO electron ER, YO style, YO electric bikes and YO smart.



Emmel Wheelers: Manufacturer and supplier of electric bike, electric powered powered

bike, battery operated electric bike, rechargeable electric bicycles, eco friendly electric

bicycles

and

two

wheeler

electric

bicycles.

Euro II Services: Distributor of a range of electric bikes.

Paradise Electro Auto: Manufac Manufacture turer, r, supplie supplierr and exporter exporter of electric electric bike. bike. Mankoo Mankoo Manufa Manufactur cturing ing Co: Manuf Manufac actur turer er and and expo exporte rterr of electr electric ic bikes bikes.. Vijaya Value Electric Pvt. Ltd : Deals Deals in manufac manufacture ture of bike, bike, electric electric bike,

elect electron ronic ic bike, bike, self self start start elect electric ric bike, bike, eco eco frien friendly dly bike bike and and elect electric ric two wheeler. Also supplies electric scooter, electronic scooter and self start two wheeler. Crazy E- Bike: Bike: Leading exporters and manufacturers of electric bike, high

speed electric bike, stylish electric bike, electric motorized bike, electric power bike, electric powered bike, electrical bike, electronic electronic bike and battery operated bike. Hero Electric: One of the India’s top Manufacturers of electric bikes. S. L. S. S. Group: Group : Wholesale exporter of electric bike. The company ownership pattern: ThePromoters

Mr. Laxmi Narayan Singh , age 43 years, comes from Science faculty. He has

25 years experience in the functional area of business development, marketing and sales. He is extremely proficient, having worked with multinationals like Pepsi, in devising marketing strategies, dealer network, budgets, targets, etc



Mrs. Kamini Kanekar, age 28 years, comes from Commerce faculty and has

about 10 years business experience. experience. She is the main financial financial arm of the project and

comes

from

a

business

family

from

Surat.

AdvisoryPanel:

Dr. Vishwas Panse, age 46 years, is a B. Com., L.L.B., M.A. (Economics),

A.C.S., A.I.I.A. (U.S.A.) and Ph.D. (U.K.) in Business Management. He is an ex - IDBI IDBI Ex Exec ecut utiv ivee and and has has ov over er 20 year yearss expe experi rien ence ce cove coveri ring ng dive divers rsee functions

like

Corporate

Law,

Finance

and

Management.

Dr. M. S. Satyanarayana, age 55 years, is a B. E. (Mech.), M. Sc. (Engg.). He

has expertise in Batteries and was associated with Aircraft Design Bureau, Hindu Hindusta stan n Aeron Aeronau autic ticss Ltd., Ltd., Bang Bangalo alore. re. He was awarde awarded d the the Ph.D. Ph.D. for his his research work for his Thesis (Titled ‘Development of Light-weight Lead-acid Battery Battery’) ’) comprisi comprising ng mechanic mechanical, al, electric electrical al and electroelectro-che chemica micall streams streams of engin enginee eerin ring g for for the deve develo lopme pment nt of Batte Battery ry Opera Operated ted Electr Electric ic Vehic Vehicles les..

Mr. Shankar Menon, age 55 years, is an IAS retired, ex-Additional Chief

Secretary

of

Government

Of

Maharashtra.

Mr. Kamlesh Mehta, age 45 years, B.Com, FCA, Senior Chartered Accountant

with with 20 years years expe experi rien ence ce in Corpo Corpora rate te Audit Audit,, Taxati Taxation on and and allie allied d matte matters. rs.

Mr. R. Sub Subram ramani aniam am, age age 52 year years, s, is a B. Com. Com.,, M.B. M.B.A. A.,, Memb Member er of

Consultancy Development Centre, Delhi. selected as a potential candidate of 31 Department of Management Studies, MSRIT


WHO’s WHO Historical Society of Boston USA, Professor Professor in SIES Institute of Management Studies. TROT Graduate for Indian Junior Chamber.

5. McKinsey’s Seven ‘S’ Model

The seven S framework first appeared in “the art of Japanese Management” by Richa Richard rd Pasc Pascal al and Antony Antony Athos Athos in 19 1981 81 they they had had been been looki looking ng at ho how w Japanese industry has been so successful, at around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was born at a meeting of the four authors in 1978. It went



on to appe appear ar in “In “In sear search ch of exce excell llen ence ce”” By the the Glob Global al Mana Manage geme ment nt Consultancy McKinsey hence known as McKinsey’s Seven ‘S’ Model.

Managers, they said, need to take account of all seven of the factors to be sure of successful implementation of a strategy – large or small .the ot5hers crash around you. Fail to pay proper attention to one of them it can bring the others crashing around you. And the relative importance of each factor will vary over time and you cannot always tell how that’s changing. Like a lot of these models, there’s a good dose of common sense here, but the seven S framework framework is useful way of checking that you have covered all the bases. The “Seven S”(7s) method of examining and understanding companies is a well-known tool available to managers, providing a succinct overview of the organisation. Having a broader view of a firm is important from a strategic, marketing, organizational behaviour and competitive perspective.



At the highest level, the framework illustrates that the management, structure and and stra strate tegy gy of an orga organi niza zati tion on rela relate tess thro throug ugh h a comp comple lex x netw networ ork k of interdependent factors within the organization, each of which is individually and collectively important. The 7S model is a tool for managerial analysis and action that provides a structure with which to consider a company as a whole so that the organizations problems may be diagnosed and a strategy may be developed and implemented. The seven Ss is a framework for analyzing organizations and their effectiveness. It looks at the seven key elements that make an organization successful or not. The 7S are as follows: 1. Strategy: Strategy is created to maintain and make competitive benefit over the competition. 2. Structure: Structure is the way the organization is constructed and who reports to whom. 3. Systems: In systems the daily activities and events that staff members join in to get the job done. 4. Shared values: Shared values are also called “super ordinate goals”. These values are the centre values of the company that are evidenced in the corporate culture and the general work. 5. Style: you have to adopt the style of leadership. 6. Staff: In staff employees and their general capabilities are included. 7. Skills: Skills are the actual skills of the employees who are working for the company.

How to use this model?

Theory is the base of this model. If organization wants to perform well then 34 Department of Management Studies, MSRIT


these seven elements are needed to be associated and equally reinforced. If you want want to chan change ge restru restructu cturin ring, g, new proc proces esses ses,, organ organiz izati ationa onall merge merger, r, new new syst system ems, s, chan change ge of lead leader ersh ship ip,, then then yo you u will will have have to un unde ders rsta tand nd ho how w organizational elements are interrelated. If you want to analyze the current situation and plan future situation, then you can use the 7S model. When you use the model you can identify gaps and inconsi inconsisten stencies cies between between future future and current current situatio situation. n. The whole whole boo books ks and methodologies are dedicated to analyzing organizational strategy, improving performance and managing change. This model is a good framework which helps you to ask right questions. If you want to use this model then you will require proper knowledge, skills and experience. You must have developed a mind tools checklist and a medium to keep track of how the seven elements are aligned with each other The 7S diagram illustrates the multiplicity interconnectedness of elements that define an organizations ability to change. The theory helped to change managers thinking about how companies could be improved. It says that it is not just a matter if devising a new strategy and letting them generate improvements. To be effective, their organization must have a high degree of fit, internal alignments amongst all the seven Ss are inter-related and a change in one has a rippled effect on all the others. It’s impossible to make progress on one without making progress on all. Thus, to improve their organization you have to pay attention to all of the seven elements at the same time. There is no starting point or implie implied d hierar hierarchy chy.. Diffe Differe rent nt facto factors rs may may drive drive the bu busi sines nesss in any any on onee organization. DESCRIPTION STRATEGY 35 Department of Management Studies, MSRIT


It is a plan an organization formulates to gain a substantial advantage over the competition. Strategy is the art of devising and employing a system of activities that that mobi mobili lize zess all all reso resour urce cess towa toward rdss a valu valuab able le go goal al.. “str “strat ateg egy y is the the determination of basic long term goals and objectives of an enterprise, and the adop adoptio tion n of cours coursee of actio action n and and the alloc allocati ation on of reso resourc urces es avail availab able le for for carrying out these goals.” In other words, the route that the organization has chosen for its future growth; a plan an organization formulates to gain a competitive advantage. STRUCTURE

Stru Struct ctur uree desc descri ribe bess the the hier hierar arch chy y of auth author orit ity y and and acco accoun unta tabi bili lity ty in the the organization. These relationships are frequently diagrammed in organizational charts. Most organizations use some mix of structures pyramidal, matrix or networked ones to accomplish their goals, a structure is the formalizing of relationships, roles and responsibilities in order to organize and perform work. In simple terms, structure is the patterns which various parts or components are inter-related or inter-connected. SYSTEM

Systems refer to the processes used to manage the organization. System includes: •

Management Information Systems.

•

Innovation Systems.

•

Performance Management Systems.

•

Financial Systems/Capital Allocation Systems. 36

Department of Management Studies, MSRIT


•

Compensation System/ Reward System.

•

Customer Satisfaction monitoring activity.

A System is defined process or set of processes processes that link and orders activities to enable work to be done and goals to be achieved. System in simpler words is the formal and informal procedures including compensation systems, management infor informat matio ion n syst systems ems and and capit capital al alloc allocat ation ion syst systems ems that that involv involvee every every day day activity. STYLE

Style of leadership or relationship refers to the manner in which an individual uses his or her talents, values, knowledge, judgement and attitudes to lead and relate to others. Style expresses the person’s character .Style is the leadership approach; also the way in which the organization employees present themselves to the outside world, to suppliers and customers. In simple words, a style is the pattern of behaviour, which a leader adopts in influencing the behaviour of his followers (Sub-ordinates) in the organization context.

STAFF

Staf Staffi fing ng may may be defi define ned d as fill fillin ing g and and keep keepin ing g fill filled ed po posi siti tion onss in the the organization structure. Staffing is done by identifying workforce requirements, inventory requirements etc. The task is fulfilled by recruiting, selecting, placing, promoting, apprising, planning the careers of compensating and training or otherwise developing both candidates and current job holders so that tasks are accomplished effectively and efficiently. 37 Department of Management Studies, MSRIT


SKILLS

A Skill is the ability, knowledge, understanding understanding and judgement to accomplish a task. Skills may be defined as what the company does best; the distinctive capabilities and competencies that reside in their organization. SHARED VALUES

Shared values are what engender trust. Values are the identity by which a comp compan any y is kn know own n thro throug ugho hout ut its its bu busi sine ness ss area areas. s. Th Thes esee valu values es must must be explicitly explicitly stated as both corporate corporate objectives objectives and individual individual values. A shared shared value is an essential characteristic or attribute promoted by the organization to motive the behaviour of members of the organization. STRUCTURE FINANCE DEPARTMENT:

The company has employed well qualified and experienced accounting and EDP profe profess ssio iona nall on its roll roll for for effe effecti ctive ve cond conduct uct of its rapidl rapidly y expan expandi ding ng business. It has automated all accounting and inventory control functions both at its headquarters as well as its various branches. With all dealers and sub dealers conn connec ected ted to head head offic officee by e-mai e-mail, l, trans transmis missio sion n of bu busi sine ness ss data data is do done ne electronically on a daily basis resulting in adequate monitoring and control of the business activities throughout the country. HUMAN RESOURCE MANAGEMENT:

Human resource management is a management function that helps manager recruit, select, select, train and develop develop members for an organization. organization. Other functions functions perfor performed med are motivati motivating ng people; people; impartin imparting g skills skills and attitude attitudess to improve improve performance and also helping in setting up individual and organizational goals. 38 Department of Management Studies, MSRIT


MARKETING DEPARTMENT:

Marketing department with its goal oriented and friendly approach has been succ success essfu full in reac reachi hing ng most most of the urba urban n areas areas with with the Genx Genxtt prod produc ucts. ts. Relat Relatio ions nship hip marke marketin ting g strate strategie giess are well well emplo employe yed d and and thus thus are able able to increase the sales, better distribution system and making the products available when needed and also like regular visit to the dealers has made Genxt products to market very easily. 5.2 SKILLS:

Skills that marketing manager requires in this company are as follows: •

Strategy Implementation.

•

Recruitment and training.

•

Communication skills, with fluency of local languages.

•

Performance review of employees.

•

Coordination with other departments.

•

Separate training for both staffs and workmen to develop their skills.

•

Motivating his subordinates.

STYLE:

The company follows the participative and democratic style of leadership in which all level of employees can react towards the achievement and report to the higher officials. Employees as a whole work together in a team to solve today and tomorrows problems in a significant manner.



In Decision-making they: •

Involve people in the company.

•

Take their freedom.

•

Do communicate to them.

•

Listen to their suggestions.

•

Accept their ideas.

•

Encourage their participation in management.

STRATEGY:

The compa company ny follo follows ws relati relations onshi hip p market marketing ing strat strateg egy y .Where .Where in a go good od relati relation onsh ship ip is maint maintain ained ed with with custom customer erss i.e bo both th deale dealers rs and and custo customer mers. s. Relationship marketing has helped to retain existing customers and constantly maintain the sales. And also by motivating dealers by giving them incentives and awards like best dealer of the year etc . And also they involve dealers in the meetings and discussions.

SYSTEM:

ORDER EXECUTION SYSTEM OF GENXT ELECTRIC BIKES: •

Here the marketing executives visit dealers regularly on weekly basis to take orders.



•

Dealers when they need the electric bikes, they place the orders to the marke marketin ting g exec executi utive vess of their their areas areas throu through gh telep telephon honee or when when the the marketing executives visit them.

•

•

The marketing executive processes the orders and supplies them. Each Each area area has has main main deale dealers rs or cons consign ignee eess where where the the inven inventor tories ies of electric bikes are kept.

STAFF: Various duties and responsibilities of manager ; •

Corporate presentation.

•

Coordinating domestic marketing activities.

•

Strategy implementation.

•

Recruitment and training.

•

Finance Tie Ups.

•

Performance review of executives.

•

Coordination with other departments.

SHARED SHARED VALUES: VALUES: The intercon interconnec necting ting centre centre of McKinse McKinsey’s y’s model model is:

Shared Values. What the organization stands for and what it believes in; Central beliefs and attitudes. Genxt fosters teamwork and expects employees employees to be goal oriented, it has shared values like; •

Commitment to total quality.

•

Cost and time consciousness.

•

Innovation and creativity. 41



•

Trust and team spirit.

•

Respect for individual.

•

Integrity.

Commitment to total quality:

The company shall accomplish their mission with 

Absolute integrity and dedication.



Total customer satisfaction.



Honesty and transparency.



Courtesy and promptness.



Fairness.



Total quality.



Innovation creativity.



Trust and team spirit.



Respect for individual.



Humility

SWOT ANALYSIS



STRENGTHS: 

WEAKNESSES:

Most Mo st envi environ ronmen mentt frien friendl dly y bike bike



with zero pollution. 



Only 7 paisa/km

speed.(80+) 



More safety oriented vehicle.



Saving of crude oil resources.



Huge capacity expansion to meet

Lack

of

awareness

about

electrical bikes.

No No gear gear make makess easy easy driv drivee and and comfort.

Not suitable for more range of



Very less advertisements about electrical bikes.

demand 

Professional management.



Company is financially strong.



It has got stron rong dist istribu ributtion ion network.



OPPORTUNITIES: 

THREATS:

Use of Electrical vehicles to drive exponential noise iseles less,

growth les less

as

its

pollu lluting ing

and

environment friendly. 

Launch

of

electrical

three



Fuel prices touching touching the highest highest peak rates.



Government

of

domes mestic



Lack of electricity.



Increasing

prices

of

raw

materials. 

Company is under pressure to cut cost to bring down the pri pricces of the bike ike because

subsidies

for

electrical vehicles. 

numbe mber

competitors.

wheelers. 

Lar Large

competitors are offering at low price.

Peop People le op optt for for chan change ge in new new technology.



Proud of saving earth from global warming.



RESEARCH METHODOLOGY TITLE OF THE PROJECT:

“A study on consumer awareness and perception towards electric bikes with special reference to GENXT (India) Private Limited ”. STATEMENT OF THE PROBLEM:

With increasing in air pollution in urban areas and scarcity of fuels Electric Bikes is in great demand but it is not used by most of the people because of lack of awareness. Thus the purpose of the study is to study the awareness level of cons consume umers rs towa towards rds E-Bik E-Bikes es and and also also the perce percept ption ion of the users users.. Thus Thus by creating awareness we can enhance the sales of Electric Bikes. OBJECTIVES •

To find out the awareness of consumer about the electric bikes.

•

To find out the reason why consumer prefers to electric bike.

•

To find out the factor influencing the sales of electric bike.

•

To know the users perception about electric bikes.

•

To suggest measures to increase sales of electric bikes.

DATA COLLECTION: The data collected for this study was collected from

various sources. The main data collection instruments are of two types. a) Prima Primary ry data data colle collecti ction on b) Seconda Secondary ry data data collecti collection. on. Primary data collection:Primary data are those, which are originated currently

with exploration, carried out within the stipulated period of time. These are fresh data’s collected in tune with the objective of the study. 45 Department of Management Studies, MSRIT


Method Method of study: study: Structu Structured red questio questionna nnaire ire comprisi comprising ng of multiple multiple choice choice

questions are used as tool. •

Multiple choice questions makes easier for both field interviewer and respondents and it saves time. By this tabulations and analysis becomes much easier and simpler.

Secondary data collection:

These are the data that have already been collected by some other agency or researcher with the intension of using it for their own use. The source of seco second ndary ary data data bein being g comp compan any’ y’ reco records rds,, distr distribu ibuto tors, rs, deale dealers, rs, un unive iversi rsity ty research bureaus, company’s data bases intended to discern the customer’s response pertaining to the various topics and public research studies. STATISTICAL TOOLS USEED FOR RESEARCH: •

Percentage analysis

•

Bar graphs & pie charts

•

Weighted average

Method of collection 1. Personal interview method. 2. Questionnaire method. 1. Persona Personall Intervi Interview ew Method: Method:

Here face to face interaction takes place and are orally interviewed. Here this method plays a very important role, because the respondents are very



much involved with their busy schedules, thus this is the very easiest and earliest way to get the questionnaire completed. 2. Questionnaire method:

A questionnaire is used for the collection of data. And it consists of both close and open ended & multiple choice questions. SAMPLING DESIGN:

Users of two wheelers in north Karnataka

Sampling unit

:

Sampling size

:

100

Sampling method

:

Non probability

Sampling technique

:

Convenience sampling

DATA ANALYSIS: The data collected was edited, coded and tabulated and

the results were subjected to further statistical interventions. LIMITATIONS OF THE STUDY:

Some of the limitations of the study may be summarised as follows 

An underlying assumption for entire project is that the details and feedback received from population are true.



It was was diff diffic icul ultt to find find resp respon onde dent ntss as they they were were bu busy sy in thei their r schedules and collection of data was very difficult. Therefore study had to be carried out based on availability of respondents.



Some of the respondents were not ready to fill the questionnaire and some of them not ready to come out openly.





Due to confidentiality of certain information not all details could be obtained from the company.



Als Also the sampl mple size ize of 10 100 0 may may not truly ruly rep repres resent whole population.



ANALYSIS AND INTERPRETATION 1. Are you you aware aware of of Electr Electric ic Bike Bikes? s?

Response

No. of Responses

Percentage

Yes

74

74%

No

26

26%

100

100%

Total Table no 1:

Graph no 1:



INTERPRETATION:

From the above chart it is evident that •

74% of respondents are aware of the electric bikes

•

26% are unaware of the electric bikes.

INTERFERENCE:

This indicates that most of the consumers are aware about the electric bikes. Very few are unaware.



2) How did you come to know about Electric Bikes?

TABLE NO 2:

S o u rce

No. of Responses

News paper/magazine

Percentage

23

15%

Television

12

8%

Internet

76

49%

Friends

34

22%

Others

9

6%

154

100%

Total

GRAPH NO 2:



INTERPRETATION:

From the above above graph graph it is eviden evidentt that 49% of responde respondents nts came to know about electric electric bikes through through internet, internet, 22% came to know through through friends, friends, 15% throu through gh newsp newspap aper ers/m s/mag agaz azin ines, es, 8% throu through gh telev televis ision ion and and 6% from from other other sources. INFERENCE:

From the above it is evident that internet is the main source of awareness, next is through word of mouth from friends and family. There is not much of awareness created through print media or TVCs.



3) Which Which bike bike are you you using using presen presently tly? ? TABLE NO 3:

Type of Bike

Users

Percentage

Electric bike

24

24%

Conventional bike

76

76%

100

100%

Total

GRAPH NO 3:



INTERPRETATION:

From the above graph it is evident that 76% of respondents use conventional bikes whereas 24% of people use electric bikes. INFERENCE:

From the above above it is evident evident that most most of the consume consumers rs prefer prefer to commute commute through the normal conventional bikes and only few prefer non-conventional bikes i.e electric bikes.



4) Which of the followi following ng factors encourag encouraged ed you to buy Electric Electric bikes? bikes?

TABLE NO 4:

Parameters

No of responses

Percentage

Environment friendly

20

41%

Less running cost

12

24%

6

12%

Safety No registration

3

Others Total

6% 8

16%

49

100%

GRAPH NO 4:



INTERPRETATION:

From the above graph it is evident that 41% of the consumers bought Electric bikes due to its environmen environmentally tally friendly friendly nature, nature, 24% due to its less less running running cost, 12% due to safety, 6% due to no registration and 16% due to other reasons. INFERENCE:

It is evident from the above chart that its environmental environmental friendly nature and less running cost makes people to go for Electric bikes. Even the safety and no registration factor also encourages people to opt for Electric bikes and also some other factors like no driving licence required and no gears also attracts people to buy electric bikes.



5) Did advertis advertisement ement influen influence ce your buying buying decision? decision? TABLE NO 5:

Buyer decision

Respondents

Strongly agree Agree Neutral Disagree Strongly disagree Total

No of responses

5

21%

13 4

54% 17%

2 0

8% 0

24

100%

GRAPH NO 5:



INTERPRETATION:

It can be interpreted interpreted from the above graph that 54% of consumers consumers agreed to the fact that advertisements influenced their buying decisions while 21% strongly agreed to this fact 17% neutral and 8% disagreed. INFERENCE:

It is evident from the graph that maximum numbers of E-Bike users were influenced to buying through advertisements. Hence more of advertisements need to be taken up in order to influence the potential customers.



6) What do you feel feel about about price of of the Electric Electric Bikes? TABLE NO 6:

Parameters

No of responses

Percentage

Very high

7

29%

High

9

38%

Moderate

6

25%

Low

2

8%

Very low

0

0%

24

100%

Total

GRAPH NO 6:



INTERPRETATION:

From the above above graph graph it is evident evident that 29% of the respondent respondentss feel feel that the price of Electric bikes are very high, 38% feel the price to be high, 25% feel the price to be moderate and only 8% feel that the price is low. INFERENCE:

It is clearly evident evident from the above graph that maximum numbers of consumers consumers feel the price of electric bikes to be high as compared to its features which are not that great compared to conventional bikes. Very few consumers feel the price to be in the moderate and low range. Thus the price of electric bikes needs to be lowered in case to increase the sales.



7) What is your opinion towards mileage of Electric Bikes as Compared to conventional bikes? TABLE NO 7: Parameters

No of responses

Percentage

Very good

8

33%

Good

6

25%

Average

5

21%

Bad

3

13%

Very bad

2

8%

24

100%

Total

GRAPH NO 7:



INTERPRETATION:

From the above graph graph it is evident evident that 33% of respondents respondents found the mileage mileage of Electri Electricc bikes bikes to be very good, good, 25% of people people feel it’s it’s good, good, resp respon onde dent ntss

find find it it to be aver averag age, e,13 13% % of them them felt felt

21% 21 % of

it bad bad and 8% 8% of

respondents the mileage to be very bad. INFERENCE:

From the above graph we can make out that most of the respondents feel that Electric bike gives good mileage as compared to other conventional bikes. Only few felt that the mileage of conventional bike to be better than the Electric bike. Thus we can focus on this particular parameter while marketing the product to increase the sales.



8) What is your your opinion opinion towards towards speed of Electric Electric Bikes Bikes as compared compared to conventional bikes? TABLE NO 8 : Parameters

No of responses

Percentage

Very high

0

0%

High

0

0%

Moderate

3

13%

12

50%

9

38%

24

100%

Low Very low Total

GRAPH NO 8:



INTERPRETATION:

From the above graph graph it is evident that 13% 13% of respondents respondents feel the speed speed of Electric bike to be moderate as compared to conventional bikes,50% feel the spee speed d is low low and and 38% feel feel the speed speed to be very very low as compar compared ed to other other conventional bikes. INTERFERENCE:

The above graph clearly depicts that the users of the Electric bikes feel the speed to be very low as compared to other conventional bikes. They feel that the speed needs to be improved.



9) Are you convinced about Electric Bike benefits? TABLE NO 9:

Parameters

No of responses

Percentage

Yes

17

71%

No

7

29%

24

100%

Total

GRAPH NO 9:



INTERPRETATION:

From the above graph it is evident that 71% of the electric bike consumers are convinced about the benefits of electric bikes whereas 29% are not convinced about the benefits. INFERENCE:

From the above graph it can be analysed that most of the Electric bike users are convinced convinced about the bike benefits whereas only few of them are not convinced. convinced. This proves that maximum numbers of consumers are happy with the product and its benefits.



10) Would you like to suggest electric bike to your friends? TABLE NO 10:

Parameters

No of responses

Percentage

Yes

18

75%

No

6

25%

24

100%

Total

GRAPH NO 10:



INTERPRETATION:

It can be interpreted from the above figure that 75% users recommend the bikes to their friends while 25% would not recommend. INFERENCE:

It is evident from the graph that most of the users of electric bike are willing to refer it to their friends. This is an indication of them being satisfied with the product.



11) Is the present promotional activity about Electric bike sufficient enough for you to make the purchasing decision? TABLE NO 11:

Parameters

No of responses

Percentage

Yes

19

25%

No

57

75%

Total

76

100%

GRAPH NO 11: 69 Department of Management Studies, MSRIT


INTERPRETATION:

From the above graph it can be interpreted that 75% of respondents feel the promotional activity not sufficient, & 25% feel it’s sufficient. INFERENCE:

It is evide evident nt from from the the abov abovee grap graph h that that the promo promotio tional nal activ activiti ities es are are no nott sufficient. Therefore various promotional activities need to be carried out in order to create awareness among the people and thus increase the sales of Electric Bikes.



12) Which of the following factors do you think are responsible for lower market share of Electric Bike as compared to Conventional bike? TABLE NO 12: Factors

Responses

Performance

Appearance

24

17%

Speed & Power

61

42%

Battery life Uncerta rtainty inty

38

26%

22

15%

145

100%

of

electri tric

bike ike

technology Total

GRAPH NO12:



INTERPRETATION:

From the above graph it is evident that 42% of respondents feel speed&power as the the majo majorr facto actorr for for lowe lowerr mark market et shar sharee of E-Bi E-Bike kess as comp compar ared ed to conventional bikes while, 26% feel battery life, 17% feel the appearance of the bike and 15% say it’s the uncertainty of electric bike technology for lower market share of E-Bikes as compared to other conventional bikes. INFERENCE:

It can be analysed from the above graph that maximum no of consumers feel speed and power to be one of the main reason for their lower market share while some feel it’s because of the appearance and battery life. Only few consumers are uncertain about the electric bike technology. so in order to increase the market share the speed and power of E-Bikes needs to be improved and also battery life & the appearance of the electric bikes need to be improved



13) Which of the factors do you think that prevents you from making the decision of purchasing the electric bikes? TABLE NO 13:

Parameters

No of responses

Percentage

Expensive

39

26%

Unaware

26

17%

Not convinced

47

32%

Non availability

18

12%

Others (specify) Total

19

13%

149

100%

GRAPH NO 13:



INTERPRETATION:

From the above graph it can be interpreted that 32% of respondents are not convinced, 26% feel expensive,17% are unaware,12% feel non-availability, and 13% other reasons which prevents them from making the decision of purchasing the electric bikes. INFERENCE:

From the above graph it is evident that most of the respondents do not purchase the E-Bikes because they are not convinced about the electric bike technology or the benefits, and also because it is expensive. Awareness need to be created & the product need to be made available to maximum no of places.



14) Is after sales service availability affecting your purchasing decision of electric bikes? TABLE NO 14:

Response

No. of responses

Percentage

Yes

55

72%

No

21

28%

Total

76

100%

GRAPH NO 14:



INTERPRETATION:

From the above graph it can be interpreted that 72% of respondents feel that after sales service service availability availability affects affects their purchasing purchasing decision decision while 28% of respondents say it does not affect. INFERENCE:

It is evident from from the above graph graph that maximum no of respondents respondents did not go for buying the electric bike due to the non availability of proper after sales service. Hence the after sales service need to be improved and service centre needs to be operated in major cities to overcome this problem.



15) Are you aware of electric bike benefits?

TABLE NO 15:

Response

No. of responses

Percentage

Yes

45

59%

No

31

41%

Total

76

100%

GRAPH NO 15:



INTERPRETATION:

It can be interpreted from the above graph that 59% of respondents were aware of the Electric bike benefits and 41% are unaware. INFERENCE:

It is evid eviden entt fro from the the abov abovee grap graph h that that alth althou ough gh maxi maximu mum m nu numb mber er of respondents are aware of electric bike benefits steps need to be taken in order to increase the awareness level about the benefits of Electric Bikes in the minds of consumers.



16) After knowing benefits of electric bike are you willing to purchase it in future? TABLE NO 16:

Response

No. of responses

Percentage

Yes

23

30%

No

53

70%

Total

76

100%

GRAPH NO 16:



INTERPRETATION:

From the above graph it can be interpreted that 70% of respondents would not purchase Electric Bikes even after knowing the benefits of it whereas 30% would go for Electric Bikes. INFERENCE:

It is evident from the graph that only few respondents are ready to buy the bikes after knowing the benefits but majority of them still prefer not to buy because of many reasons like they already have a bike or they want speed and power and few think its not sogood looking etc.



Summary of findings: 1.

It was found that most of the respondents are unaware about the Electric Bikes and their benefits. [Ref :Table no 1, Table no 9]

2.

It was found that majority of the consumers came to know about electric bik bikes es thro throug ugh h inte intern rnet et and and ther theree are on only ly few few adve advert rtis isem emen ents ts in newspapers and TVs. [ Ref : Table no 2]

•

It was found that maximum numbers of customers were influenced by advertisements while making their buying decisions.[ Ref : Table no 5]

•

It was found that most of the customers are not much satisfied with the price of the product, and Price quoted by the companies has affected the customer satisfaction to a great deal.[ Ref : Table no 6]



•

It was found that most of the customers were satisfied with the mileage of the Electric bikes and are convinced about the electric bike benefits and were willing to refer it to their friends.[Ref : Table no 7 & Table no 9]

•

It was found that most of the customers are not satisfied with after sales service. It shows that customers are dissatisfied about after sale service. [ Ref : Table no 14]

•

It was found that that maximum number number of the customers customers feel the speed speed of the Electric bikes to be very low and were not satisfied with the current speed of the bikes.[Ref : Table no 8]

•

It was found that non-availability of Electric bikes is also a reason for lower market share and consumers not purchasing it.[ Ref : Table no 13]

•

It was found that most of the respondents feel that the promotional activities for electric bikes are not sufficient to make the purchasing decision.[ Ref : Table no 11]

•

It was found that most of the respondents feel that the factors such as speed & power, battery life and appearance of Electric Bikes are the main reasons for its lower market share.[Ref : Table no table no 13]



Suggestions: •

Awaren Awarenes esss need needss to be crea created ted among among the cons consume umers rs rega regardi rding ng the the Electric Bikes and their benefits.[ finding no 1]

•

Ther Th eree are are on only ly few few adve advert rtis isem emen ents ts in news newspa pape pers rs and and TVs. TVs. Th Thus us maximum advertisements need to be put up in these Medias as they reach wider audiences.[Finding no 2]

•

The price of the electric bikes need to be decreased it can be done by adopting sophisticated technologies and carrying out mass productions or some discounts discounts on price or offers offers should be given given in order to increase increase the sales.[ Finding no 4]

•

More number of service centres need to be opened at least in major areas to cater to the problems & needs of the customers customers when needed.[Finding needed.[Finding no 6] 83



•

As most of the people prefer high speed the speed of the electric bikes need to be improved so as to increase the sales of the E-Bikes.[ Finding no 7]

•

We need to have more number of dealers covering major urban areas and the distribution network should be made strong.[Finding no8]

•

Promoti Promotiona onall activit activities ies should should be increas increased ed to create create awarene awareness ss and increase the sales. Like it should be displayed in auto shows and to attract more youths demonstrations demonstrations and special special offers should be given to college students.[ Finding no 9]

•

As appe appeara aranc ncee play playss a major major role role for most most of the the custo customer merss while while making purchasing decisions so the Electric Bikes need to be made more attractive.[ Finding no 10]



CONCLUSION:

From From the the stud study y cond conduc ucte ted d it was was conc conclu lude ded d that that maxi maximu mum m nu numb mber er of respondents are not aware of GenXT Electric bikes. So various promotional activities need to be taken in order to increase the awareness level & thereby incre increas asee the sales sales.. Th Thee study study also also iden identif tified ied and and eval evalua uated ted the the cons consume umer r perception toward various factor about electric bike. The result of this study shows that there is a combination of both positive and negative effect of that factor on consumer perception. Here most of the respondents consider the cost and the mileage while purchasing a bike, so there are ample potential to electric bik bikee in two two whee wheele lerr sect sector ors. s. But But thei theirr batt batter ery y perf perfor orma manc nce, e, spee speed d and and appearance are the major factors which is affecting the sales of electric bikes. Thee stud Th study y expl explai ains ns what what are are the the perc percep epti tion onss prev prevai aili ling ng in the the mind mindss of custo custome mers rs and and recom recommen menda datio tions ns to crea create te aware awarene ness ss throu through gh marke marketin ting g campaign. The company can implement the suggestions to achieve the above said objectives.



LEARNING EXPERIENCE

The opportunity to work with the company given by the company officials was very helpful to me. I got to meet many players in the distribution field and discussed business with them which helped me to improve my communication as well as marketing skills.

Apart from this i was able to understand the real scenario of the market and how things really work in the market. This made me taste the real flavours of working environment, environment, work pressures, target achievements and other necessary skills required to be a good marketing manager.

•

From this study I got to know the importance and benefits of distribution chan channe nels ls i.e. i.e. ho how w it help helpss orga organiz nizati ation onss in distri distribut buting ing prod produc ucts ts and and services to the end consumer. 86



•

I also got a firsthand experience of conducting marketing research and the issues involved with it.

•

I also gained knowledge about the dealer’s operations- training given to them by the company about the product.

PROFITABILITY PROJECTIONS:

Particulars

Growth in

2004-05

2005-06

(Rs. In lakhs)

2006-07

2007-08

2008-09

-----------

63.27

38.73

27.9

0.4

1646

2687

3728

5028

5047

1152

1881

2609

3337

3351

2700

2700

2700

2700

2700

total profits (%) Profit before tax Profit after tax Share capital



Reserves &

1152

3033

5642

89880

12330

Total Debt

1000

00

600

400

200

Earnings per

4.27

6.97

9.66

12.36

12.41

48000

72000

96000

120000

120000

11245.1

16868

22490.3

28112.8

28112.8

Surplus

Share (Rs) Sales (total no’s) Total Income

Questionnaire Dear sir/madam, I am a student of “M.S Ramaiah institute of technology” pursuing my M.B.A program and as a part of curriculum, I am conducting a survey on “Consumer awareness and Perception towards Electric Bikes”. I request your free and genuine response to the following questionnaire. Information provided by you will be kept confidential and used for academic purpose only. Personal Details: Name: Age: Occupation:

Questionnaire: 1. Are you aware of Electric Bikes?

. Yes



No





2. How did you come to know about Electric Bikes?

a. News paper/magazine



b. Television



c. Internet



d. Friends



e. Others (specify)



3. Which bike are you using presently?

a. Electric bike



b. Conventional bike



If you are using conventional bike then please answer questions from 10-15.

4. Which of the following factors encouraged you to buy Electric bikes? a. Environment friendly



b. Less running cost



c. Safety



d. No registration



e. Others (specify)



5. Did advertisement influence your buying decision? a. Strongly agree



b. Agree





c. Neutral



d. Disagree



e. Strongly disagree



6. What do you feel about price of the Electric Bikes? a. Very high



b. High



c. Moderate



d. Low



e. Very low



7. What is your opinion towards mileage of Electric Bikes as compared to conventional bikes? a. Very good b. Good

 

c. Average



d. Bad



e. Very bad



8. What is your opinion towards speed of Electric Bikes as compared to conventional bikes? a. Very high



b. High



c. Moderate



d. Low



e. Very low





9. Are you convinced about Electric Bike benefits? Yes



No



10. Would you like to suggest electric bike to your friends? Yes





No

11. Is the present promotional activity about Electric bike sufficient enough for you to make the purchasing decision? Yes

No





12. Which of the following factors do you think are responsible for lower market share of Electric Bike as compared to Conventional bike? a. Appearance



b. Speed



c. Battery life



d. Uncertainty of electric bike technology



13. Which of the factors do you think that prevents you from making the decision of purchasing the electric bikes? a. Expensive



b. Unaware



c. Not convinced



d. Non availability



e. Others (specify)



14. Is after sales service availability affecting your purchasing decision of electric bikes? Yes



No



15. Are you aware of electric bike benefits? Yes



No



16. After knowing benefits of electric bike are you willing to purchase it in future? Yes



No





If no why ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Thank you for your co-operation



BIBLIOGRAPHY

BOOKS:

Research Methodology: C. R. Kothari, 2 nd revised edition 2004 Marketing Management: Philip Kotler, Millenium edition Consumer Behaviour: Leon Schiffman, Leslie Lazar Kanuk, 8 th edition WEBSITES:

www.wikipedia.com www.genxt.in www.electricbikes.com www.mahashodamarketing.com OTHERS:

Company manuals Company Reports


project report on electronic bikes (e-bikes)

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