3/23/2010

PROFILE ANALYSIS STUDY OF

ELECTRIC BIKE USERSMARKETING RESEARCH

PROJECT REPORT

DECLARATION

Title: PROFILE ANALYSIS STUDY OF ELECTRIC BIKE USERS

The project is submitted by Ankit singh (07), Diksha Keshwani (19), Mahima Virmani (23), Moeen Akhtar(27), Anita (60), Newton (G.Noida). All sections of the text and results, which have been obtained from other sources, are fully referenced.

CERTIFICATE

This is to certify that the project work entitled PROFILE ANALYSIS STUDY OF ELECTRIC BIKE USERS being submitted by Ankit singh (07), Diksha Keshwani (19), Mahima Virmani (23), Moeen Akhtar (27), Anita (60), Newton (G.Noida) is a record of work carried out under the supervision of Dr. Ajay Pandit at JIMS, Kalkaji.

It is further certified that we have not submitted this report to any other organization for any other degree.

(Dr. Ajay Pandit)

ACKNOWLEDGEMENT

This project reports on “PROFILE ANALYSIS STUDY OF ELECTRIC BIKE USERS” has been developed by Ankit singh (07), Diksha Keshwani (19), Mahima Virmani (23), Moeen Akhtar(27), Anita (60), Newton (G.Noida) under the supervision and guidance of Dr. Ajay Pandit.

We thank Dr. Ajay Pandit for his painstaking effort, which helped us throughout the working of the project. It’s our privilege to acknowledge our deepest sense of gratitude to him for his inspiration, which has helped us immensely. The project could not have taken its present form sans his endeavour and numerous suggestions. We are extremely grateful for his unstinted support and encouragement in the preparation of this project.

TABLE OF CONTENTS

PART I: Introduction

PART II:

PART III:

PART IV:

INTRODUTION

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 countries like America, Japan and China. With the rising cost of fuel at International and national level, increasing levels of pollution and congestion in transport system 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.

What is Electric Vehicle?

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.

PURPOSE AND NEED OF ELECTRIC BIKES

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 more than 20% of the world’s total primary energy is consumed 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.

Currently India imports about 70% of the fuels from abroad which is expected to rise to 82% in 2012 if the rate of increase of fossil fuel powered vehicles continues this way.

India can save over Rs 3700 crore in foreign exchange if three lacs of electric vehicles come on road by 2020. There would also be significant health cost savings as it could result in a reduction of over 16 lacs metric tons of CO, NOx, and HC.

Transportation sector which consumes a large share of energy resource of the

country also contributes significantly towards pollution.

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 that one has to strike a balance or look for Government

subsidies. Electric Vehicles are unique in this aspect as they are not only

economical but also environment friendly

The electric two-wheeler market is still at a nascent stage in India. As per the Society for Manufacturers of Electric Vehicles, the sales of electric two-wheelers in India are expected to double in next two years from nearly 1,20,000 bikes in 2009 to 2,40,000 bike in 2011 and 3,20,000 e-bikes in 2012.

EVs, including Electrotherm’s Yobykes, Hero Electric, TVS Motor and Oreva’s E-bike, share a mere 1% pie of the nine million two-wheeler domestic market sales annually, and has seen exit of several unorganised players (who would import batteries from China and assemble EVs locally).

India also has the maximum market potential for EVs owing to an established auto component infrastructure, low manufacturing and R&D costs. The presence of large domestic market can be a boon to the EV manufacturers. It can be efficient transportation vehicle in congested urban and metropolitan areas where they have to stop at traffic signals again and again. They are perfect for urban residents who commute between home and office within about 30-50 km per day. The EVs can transform urban India by reducing pollution and improving public health.

YO BYKES

Electrotherm India Ltd (EIL), makers of Yobyke and India’s largest manufacturer of electric battery operated two-wheelers, has a passion for petrol-free cities.

YObykes are battery-operated, economical, and Zero Tail Pipe Emission two wheelers.

YObykes are based on electrical technology where the rechargeable battery replaces the conventional engine.

YObykes can be charged as easily as a mobile phone wherever electric power connection is available.

Once fully charged Yobykes can travel up to 75kms in one charge depending on the load, speed & road condition.

ELECTROTHERM (India) Ltd was the 1st company to launch Electric two-wheeler under the brand name of YObykes in India on a national in an organized manner.

With more than 200 YOWorld (an exclusive Sales, Service and Spares facilities) and the largest customer base of more than 75000 YObykes users, YObykes has redefined the electric two wheeler market in India.

ET has already established state-of-the-art manufacturing facility with capacity to produce 2, 88,000 units per annum at Kutch in Gujarat.

STATEMENT OF PROBLEM

Profile Analysis of Electric bike users and potential customers of electric bikes.

RESEARCH OBJECTIVE

To understand the attitude and personality of electric bike customers.

SCOPE OF STUDY

It has good scope for marketers as well as the firms involved with the manufacturing and sales of electric bikes and scooters. It would also help the dealers and suppliers to know better about their customers and their attitude and lifestyle. This study would also give them an idea which customers should be targeted in order to enhance the market for electric bikes.

RESEARCH METHODOLOGY

RESEARCH DESIGN:

The type of research design used in this study is exploratory research followed by descriptive research. The focus of descriptive research is to provide an accurate description for something that is occurring. This type of research is by far the most popular form of market research. It is used extensively when the research purpose is to explain, monitor and test hypotheses, and can also be used to a lesser extent to help make predictions and for discovery. The research has been conducted by going to the field and collected data. Moreover the research deign is a cross sectional design.

NATURE OF DATA:

For this study we have gathered qualitative and quantitative data. Quantitative research relies on statistics or numbers, which are the domain of quantitative researchers.Qualitative research seeks out the ‘why’, not the ‘how’ of its topic through the analysis of unstructured information. Qualitative research is used to gain insight into people's attitudes, behaviours, value systems, concerns, motivations, aspirations, culture or lifestyles. It’s used to inform business decisions, policy formation, communication and research.

SOURCE OF DATA:

Source of data has been both the primary and secondary data.

Primary data : Questionnaire

Questionnaire design: Non disguise in nature.

Consists of introductory part Basic /main body Classificatory data Open ended questions Multiple choice questions Likert’s scale format

Secondary data :

The secondary data has been taken form internet, from Electrotherm website (manufacturer of yo bykes), other websites, articles and publications on electric bikes, journals and newspapers.

SAMPLE DESIGN:

o Sample Element-

Owners of electric bikes (yo bikes), who are the early adopters and non owners of electric bikes but enquirers of the same.

o Sample Unit:

Yo bike dealers, electric bike owners and people coming for servicing and repair of their electric bikes.

o Extent-

Yo bike dealers in Delhi

o Time-

As per the convenience of the dealers of the electric bikes.

o Sample Frame-

Floating population

o Sample Procedure-

Non probabilistic sample (judgemental sample)

o Sample size-

150 units

Hello, we are students of Jagannath International Management School, Kalkaji and we are conducting a Marketing Research on the “Profile Analysis of Electric bike users”. All answers and your personal information that you share with us will be kept private and confidential.

Q1. Can you name any 3 electric bikes or company’s manufacturing electric bikes? (Leave blank if you cannot recall)

___________ ____________ _____________

Q2. Please tick if you have heard about any of the following?

Electrotherm’s Yobykes

Hero Electric

TVS Motor

Oreva’s E-bike

Q3. Do you own an electric bike? If yes, which _________________________________________________

Q4. When did you purchase the electric bike?

2005-06 2008-09

2006-07 2009-10

2007-08

Q5. For whom did you purchase the electric bike?

Q6. What is the age of the person for whom you purchased the electric bike?

10-12 18-20

13-15 20-25

16-18 25 & above

Q7. Please tick the one which you find the most appropriate:

Electric bike.....

Strongly agree

Slightly agree

Neutral Slightly disagree

Strongly disagree

Is battery-operated

Is pollution-free

Is economical (price)

Has a rechargeable battery

Can be charged easily

Consumes minimal electricity while charging

Can travel up to 75kms in one charge

Is easy to handle & drive

Is safe for children

Has smart looks

Doesn’t require vehicle registration

Is easily available near your house

Q8. What other type of vehicle do you own?

Bicycle Motorcycle

Scooter Car

Q9. Is your house owned or rented?

Q10. Occupation

Business Government employee

Pvt. Service Student

Home-maker

Q11. Your monthly income (in Rs.)

10,000-25,000 40,000-80,000

25,000-40,000 80,000 & above

Your suggestions are more valuable to us _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Thank you for giving us your precious time..!