Product Design for a new tyre

1. Submitted By:
“Team Vigilin-Tea”
Adarsh Srivastava
Ankit Arpan Mohanty
Deepanshu Jain
Prabhakar Govekar
Biz-Rupt
An event by Aarohan
Biz-Rupt

2. IMPACT
LOW MEDIUM HIGH
LOW
MEDIUM
HIGH
P
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S
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- ive + ive
1. Industry Analysis: Existing Players in the market & the existing services
Industry
Analysis
Inferences:
Challenges Benefits
Value Chain Analysis
Competitive Analysis
V
R
I
O
R&D Sourcing Factory
operations
Inbound
Logistics
Inflation
Demo-
graphics
Social
Status
Political
Stability
Rising
GDP
Infra-net
Green
Investment
Safety
Laws
Increased awareness & sensitivity about health, future, and road
safety among urban customers backed by govt. regulations
regarding enhanced road safety enable smooth market entry
✓ Rising Inflation in India.
✓ Fluctuating Exchange Rates
✓ Unemployment Situation
✓ Trade Import policies
✓ Global Economic Slowdown
✓ Rise in safety awareness.
✓ Backing by govt regulations
✓ Political Stability in place
✓ Rise in Tech Infrastructure
✓ Internet Penetration
N.B:
✓ Sample Size:219
✓ Only responses from tier 1
cities were considered valid
✓ Simple random sampling
method was used
✓ All 15 questions were close-
ended
✓ Only offered by JK Smart Tyre.
✓ Dynamic Pressure & temperature Monitoring.
✓ Real-Time Information Cloud Integration
✓ Smart Sensors enabled tires
✓ Reduced tire-related accidents
✓ Priced at Rs. 7500 onwards.
Valuable: The product is valuable in terms
of human life safety, and preventive
measures & mitigates unnatural risks.
Rare: The product features offered are
scarce in the market along with exclusive
offerings.
Imitable: Risk of copying is high,
incremental advancements and feature
addition ensures a competitive advantage.
Organized: Being the single product offered
as of now, the product would attract the
converging effect of organized resources of
the firm.
Primary Research
Figure 1:
People’s concern about safety
Figure 2:
Concern about tire safety

3. Features:
➢ Automated tyre replacement system
➢ Pressure Monitoring System
➢ Real-time tyre health monitoring
➢ Tyre Inflating Kit
➢ Pothole
detecting system
73% mechanical
Failures due to burst
tyres
Market Sizing Development
Differentiator
Assumptions:
➢ Around 30 crore total cars in India
➢ Total of 1.33 crore cars in Tier1 cities
TAM : 30Cr
SAM : 1.33Cr
SOM : 0.93Cr
TAM: Indian Car Owners
SAM: Urban Car Owners(Tier1)
SOM: New Cars Under 15lakhs,
& Existing cars under 35 lakhs
➢ Data Capturing: Pothole data is captured and
used to caution the customer
➢ Automated Tyre Replacing System: Power
generated through vehicle will help in
replacing the tyre
➢ Real-time tyre health monitoring – Sensors
detects the condition of the tyre and suggest
the user whether its optimal to use or not.
Age: 26-55
Gender: Male, Female
Location: Tier1 cities
Family: Unmarried, Married, Kids
Hobbies: Travelling, Offloading
Motivation: Security, Safety, Alertness, Budget
cars
Disliking: Hindrance in plan, uncomfortable
situations
Consumer Persona
Note: Source of the data is Statista Note: Source of the data is Hubspot
2. New Product Development & Market sizing

4. 5.1. Monetization of UPI across channels, segments & transactions
Product Concept & Design Pricing Model Promotion Place & Distribution
Addressing issues smartly faced by car drivers of
our target segment regarding tire health & safety
Backed by Van Westendorp pricing
model for the value-based pricing
model
Campaigns designed ideal for
our product, segment &
resources available
Supplier & distribution network
till end consumer aided by
partners.
Product
Promotion
Figure 3: Van Westendorp Analysis
3. Analysis of the product analysis and other counterparts
✓ Real-time tire pressure,
temperature, overall health
monitoring, and reporting system
✓ Auto tire replacement kit.
✓ Quick tire inflator included
✓ Comfy & portable packaging
✓ Pothole detection and data
analysis
Fig1: Logo
Fig2:Packaging
✓ Focus on digital-social media, PR, and banner campaigns
✓ Generate 70% impressions of TAM.
✓ Engagement backed 30% CTR of impressions.
✓ Convert 5-10% of leads generated through a digital campaign.
✓ Leverage a vast social media influencer audience, ex- Motoroctane,
AutoCar India, CarGuru, etc.
✓ Hoardings & banners at airports, railway stations, petrol pumps
✓ Rewards offered for initial customers
✓ Generate evangelists & loyalists gradually.
Price
Place
✓ Sold majorly at big repair outlets
✓ A network built of channel partners
✓ Retailing at tire giant retail stores
✓ Initially, our product would be available among other SKUs
✓ Partnering with auto service apps like GoMechanic
✓ Collaborations with big car modifying players like BrotoMotiv
Manufacturer Channel
Partner
Retailer Customers
Tagline: “The new way to read”
Notes:
✓ Van westendop
analysis was done
to arrive at the
value
✓ Sample size of 137
was taken
✓ Calculations:
bit.ly/3eZ23EN

5. ✓ Small Tyre Shops
✓ Mechanics / Car Repair
Shops
✓ Hardware Stores /
Chains – Mr. DIY,
IndianHardwareStore
✓ Online Platforms –
Indiamart,
GoMechanic, Mahindra
First Choice, TyrePlex,
Website & ecommerce
Manufacturer Channel Partner Retailer Customer
Supplier
✓ Tyre Inflator – iBell,
Bergmann, myTVS
✓ Sensor – SMIC, GigaDevice
✓ GPS – Teltonika, RelyEon
✓ Gauges – OEMs
✓ Puncture Kits – OEMs
✓ Impact Wrench – Sino
Tools, Stanley
✓ Cloud Server – AWS, Azure
✓ Application Developer –
TCS, Wipro, Infosys
Smart Tyre Kit:
Integration & Assembly of
supplied components to
build the smart device kit.
FOCAL FIRM
Inbound Logistics Outbound Logistics
Procurement Cycle Manufacturing Cycle Replenishment Cycle Customer Order Cycle
Initial phase:
Partnerships with large
tyre dealers and sourcing
sites of mechanics and
hardware stores.
Future Scope:
Create a distribution
network
B2B & B2C Strategy
Strategies:
1. Make-to-Stock (Push – procurement, manufacturing, & replenishment; Pull – customer order)
2. Outsourcing (major technical components) to a third party to create a fly light business model & avoiding blockage of fund in capex
3. Efficient supply chain strategy – Medium cost, responsiveness & demand certainty
4. Custom configured model (customize assembly, hybrid of agile and continuous flow)
✓ Feedback
✓ Customer service
✓ Reverse logistics – In
case of defects or
service issues product
can be replaced with
retailer
4. Analysis of operational viability of the product
Information Symmetry: Retail Chain: Redressal:

6. Consumer Purchase Journey
Above-the-Line Marketing:
✓ According to Google trends, “Tyre repair kit gets
10,000 searches per month in India”
✓ Mass advertisements using Social media & Google
explaining how to use the tool & its utility
Advanced Digital Marketing:
✓ Using AR/VR to explain how to use the product
✓ Using Ai for tracking the customer response to ads
✓ Retargeting existing customers via Amazon, Siri , an
IOT-enabled device that would help customers to
repurchase in just a click of a button
✓ Using email market
Influencer Marketing:
✓ Collaborate with 30 influencers in 10 cities
like Mumbaiker Nikhil
✓ Using their testimonials in marketing
campaign
Brand Evangelist:
✓ Delighted customers will spread word of mouth
✓ Hiring brand evangelist for trust building
Nudging at the right time-
✓ Customers searching for tyre essentials to be
nudged using Google with sponsored ads
✓ Running ads on FM radio as it is widely used
in cars
Search Optimization:
✓ Optimizing and ranking for keywords related
to “Buy tyres online,” repair kit
✓ Enhancing user engagement on the website
using chatbots
Awareness
Interest
Desire
Action
Advocacy
Website Placements:
✓ Sponsored ads in cardekho.com, car24 due to
high engagement of our target customers on
these applications/websites
✓ Shop Button: Option of purchase from social media page
✓ CTA button in various social media platforms
5. Developing the sales funnel of the business

7. Step 1: Buyers will upload their
experience on the partner apps
Step 2: They will be incentivized
based on the traction of their video
Step 3: New options for in-app
purchases can be developed
Step 4: This revenue sharing will
convert nano & micro-influencers into
brand evangelists
Regional presence & penetration of
short video apps to be leveraged Moj App
100M+ users
4.3/5 Store Rating
Sharechat
100m+ USERS
4.2/5 Store Rating
Chingari
50M+ users
3.9/5 Store Rating
Short Video Audience to
reach 650mn by 2025.
200Mn+ users spent avg of
45mins/day on these apps
“India has over 50 Mn short video
creators”
-Business Standard
6. Using other marketing techniques
Leveraging the Trend
Other
Metrics:
✓ QR will be placed on packaging, advertisements, signboards
✓ QR codes will be used in all the marketing campaigns as well
✓ QR code will lead to a landing page
✓ The landing page will have details of the product and offerings.
This tool will be sold through our website, e-commerce sites, retail stores as well as

8. 6. Financial Strategy and projections
Mudra Loan:
1. Loan amount up to 10lakh from Mudra Scheme.
2. This loan would be collateral free.
3. Maximum repayment period is of 60 months
Funding
Scheme
Key
Financials
SBI MSME Loan:
1. Loan amount up to 40lakh can be availed from this Scheme.
2. This loan would require collateral.
3. Interest rate for this be around 11%
Tax Exemption:
1. Startup can avail of tax holiday for 3 consecutive
financial years out of the first 10 year
2. Sec 79 of IT Act allows carrying forward of losses
Revenue
FY24 FY25 FY26 FY27
-40%
-20%
0%
20%
FY24 FY25 FY26 FY27
Figure:Financing Breakup
Personal Savings
SBI MSME
Mudra Loan
NPM
OPM
For Details: https://bit.ly/3UWibWN
Unit Demand Price

9. Thank You!