Ultra Motor Company (UMC), which forayed into India
recently, has entered into an agreement with Hero
Cycles Ltd to jointly market the new range of electric
two-wheelers in India, which was launched in the
Capital on January 4.
The seven variants of e-bikes and e-scooters launched
are branded as Hero Electric with the ‘Ultra Powered’
technology tag. The Hero Electric E-Bikes are priced
between Rs 15,000 and Rs 20,000, while the E-Scooters
are in the range of Rs 24,000 to Rs 28,000.
Being a new category both the companies have to take
the marketing aspect very seriously. As part of the
communication plan, the initial thrust would be on
experiential marketing and as and when the
distribution is in place the media activities would
take place.
Elaborating on the communication plan, Deba Ghoshal,
Director-Marketing, Ultra Motor, said, “It will be a
three-pronged strategy. It will be a generic
communication for the category as a whole, brand
communication for the end user and thirdly technology
differentiator for the end user.”
“It’s a communication strategy where the technology
provider will front end the marketing along with the
final vehicle manufacturer. It’s a unique business
model,” Ghoshal added.
As part of the joint marketing effort, both Ultra
Motor Company and Hero Cycles Ltd, will jointly
organise road shows, mall shows, school shows and
college and university shows. These activities form
part of the joint experiential activity that will be
undertaken shortly.
Said Ghoshal, “We feel there should be synergies in
communication by investing together in marketing.”
Apart from a joint marketing agreement, UMC has got
into a technical collaboration with
HCL. UMC has provided the electric vehicle technology
and complete Ultra ‘Power Pack’, which consists of the
company’s electronic controller, specialized battery
and charger. Hero Cycles is responsible for the
mechanical integration and assembly, manufacturing and
service of the final vehicles.
Unveiling the new brand of Hero Electric two-wheelers,
Vijay Munjal, Managing Director, Hero Cycles Ltd,
said, “In a market where there are 1.6 million two
wheelers sold every month (including bicycles,
scooters and motorbikes), these technologically
advanced yet affordable electric two wheelers will
definitely herald a major change in the Indian two
wheeler industry.”
As far as the sales target is concerned, Ultra Motor,
Managing Director, V J Prakash, said, “We expect to do
around 90,000 units in the first year of our
operation.”
Under the alliance, both Hero Cycles and Ultra Motor
will also mutually work towards setting up a retail
and service infrastructure. Plans are afoot to open
extensive dealer network in 16 major cities across the
country, between January 2007 and March 2008 for
comprehensive service and sales experience. The first
phase of rollout will be in the North Indian markets
of Delhi, NCR, Ludhiana and Chandigarh. West and South
India launches will follow in the second phase of the
rollout plan.
Analysis
