ZS Campus Beats Case Challenge 2020
Krypto Motors
E-Vehicle Case Study
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Guidelines
Guidelines to complete the case
▪ Any content from this document should not be shared beyond the participants of your team
▪ This case aims to give you a hands-on appreciation of several types of projects done at ZS, and the kind of work that
Associates may do on these projects
▪ The information provided in the case is enough to solve the questions. If you think you need additional information,
please make reasonable assumptions and go ahead. Please mention the reasoning behind your assumptions made in
the final presentation submission
▪ Users should restrict to the data provided on each slide provided with the questions only to arrive at conclusions /
solutions
Submission Steps:
Step 1: The final report should articulate approach, assumptions and considerations used for each of the 3 sections
presented, and final solution in a PPT format provided. All 3 sections’ solutions should be submitted on the Talview
platform, as per the instructions shared
Step 2: Fill in all answers to the objective questions mentioned in the survey link by clicking here
Please note your submission will be eligible only on receiving the solution for all the 3 sections and answers on survey
link. Any missing section will lead to disqualification of your team.
Software requirements:
Microsoft PowerPoint
Microsoft Excel
Good luck!
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Guidelines
Korean car manufacturer is looking to make its foray into Indian market
▪ Krypto Motors is MNC with cars from different segments in it’s portfolio. As a part of it’s global expansion
plan, Krypto Motors is targeting growing economies outside Korea and Japan and has earmarked India as
one of the first BRICS nations.
▪ Government of India has recently launched subsidy scheme for setting up greenfield project as well as sales
of e-vehicles in order to curb rising pollution levels. Krypto Motors is planning to launch its successful brand
“Electra” and has partnered with ZS to setup its launch strategy and help it set up operations and reporting
processes to sustain and grow the business.
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Segment 2
Section 1
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Question 1
Question 1: Market Opportunity
Krypto Motors wants to assess current market and identify market opportunity for Electra during launch year 2021.
Krypto did extensive market research and collected some inputs which are provided below (Current and Next Slide).
Given ZS expertise in identifying market opportunity, Krypto CEO reached out to ZS with following questions
Question
1.1) What will be 2021 Market size in INR?
1.2) What would be 2021 Market share for Electra (based on units) if the car cost INR 3,500,000?
1.3 (a) Which car model will lose most revenue to Electra?*
1.3 (b) What is the revenue lost by this car model to Electra?* - 2021’s Revenue to be compared with 2020’s revenue
Market Share by Car Type, in
2020 (1 lakh cars)
Electric Car market share by
models
Conventional car market share
by models
20%
25%
10%
40%
45%
20%
10%
10%
30%
90%
2020 Market Share
Existing Electric Cars
Conventional Cars
i-gen
Fluent
Sky EV
Speedx
2020 Market Share
Chance-P
GMW Model T
BoltMV
Blink-ZX
Assume in 2021, the market will grow by 5% and half of the new customers will come to Electra and remaining will go to other brands
based on historical market share
* Assume survey results hold true for entire universe; In case of decimal as # of cars, round -up for the manufactures with higher # of cars
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Question 1
Additional data shared by Krypto for Q1:
Conventional Car Model
2020, Price
(in 1000 INR)
Speedx
3,600
Blink-ZX
3,250
BoltMV
2,800
Chance-P
2,600
GMW Model T
4,300
Electric Car model
2020, Price
(in 1000 INR)
Sky EV
4,000
Fluent
3,000
i-gen
3,500
Krypto also conducted a market survey to identify which customers are likely to move to Electra, the responses were
collected and processed to identify the % people who will buy Electra
Will not switch
Will switch if car is cheaper than existing car
Will definitely switch
70%
25%
5%
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Question 2
Q2: Forecast of the revenue
Krypto CEO reached out to ZS to help them assess their revenue from Electra in India for next 10 years. This will
help Krypto in planning their promotions strategies, expansions plan, and portfolio diversification strategies.
Question
2) There was another competitor (Fluent) which launched their cars in India in 2008 and had a very similar
vehicle profile at the time to our company. The growth trend of Fluent is available in the below chart.
How much revenue Electra will be able to generate in 2030 - considering Electra grows at an average
growth rate (across 10 years) as Fluent.
Fluent’s YoY growth
20%
15%
12%
10%
8%
5%
5%
6%
5%
4%
3%
2%
2%
0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Fluents' growth
e.g.: 17% growth in 2014 represents YoY change in revenue of the company
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Notes:
1. General perception towards EVs is changing and we
expect a higher uptake (~1.4) in the average growth
from 2025
2. 2021 revenue for Electra to be leveraged from
Question-1
3. Another major competitor launch is planned for 2028
which leads to a expected slowdown in growth for
Electra and revenue is expected to become stagnant
from 2027 onwards
4. Fluent’s revenue in 2008 was ~ INR15 Million
Question 3
Q3: Marketing mix strategy
Electra needs help in streamlining their annual marketing budget (INR 10 Million) by achieving more impact and
sales growth from the same amount of money spent.
Question
3.1 (a) How will you allocate marketing spend across 5 channels (% split across channels)?
3.1 (b) What is the maximum revenue that can be generated from advertisement across each channel (in MM)?
3.2) Based on the quantitative data available, How will you tailor your messages for each of the channels to
target across segments?
Marketing Returns by Advertisement Channels (Forecast)
Expected Returns (in INR millions)
90
80
Events
70
Social Media
60
TV
50
40
Print
30
Online
20
10
0
10%
20%
30%
40%
50%
60%
70%
% Annual Adv. Budget
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80%
90%
100%
Question 3
Additional data shared by Krypto for Q3:
Early Adopters
Private
Business
Owners
Commercial
Use (Rental)
30%
10%
30%
15%
10-20
15-40
40-90
40-70
80-135
Age Group
25-35
35-50
26-30
25-45
25-50
Data Consumption
(in MBs/day)
300
200
400
200
300
Calls (mins/day)
30
60
40
80
90
Segment Name
Young
Corporates
C-Suite
Corporates
Size
15%
ARPU ($)
Time Spent (mins per week)
Time Spent with Major Media
500
450
400
350
300
250
200
150
100
50
0
Browsing Internet
120
60
90
5
120
15
15
90
Young Corporates
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60
30
180
15
30
30
C Suite Corporates
15
45
30
60
30
60
30
15
90
90
120
90
60
30
60
150
120
60
Early Adopters
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30
Private Business
Owners
Commercial Use
Communication
(Calling/Messaging)
Emails
Social Networks
Radio
Print
TV
Segment 2
Section 2
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Question 4
Q4A: Identify Key Cities for Launch
Background
Krypto Motors wants to roll out 5 experience stores in 5 key cities in India, in 2021. ZS has been asked to help
with the identification of these cities. The first 5 stores are very central to the launch strategy of Electra. Krypto
wants these stores to be present in the cities with most potential.
4.1) The approach Krypto is following is based on the weighted rank derived from the average household income and
the population of the city. Based on the below data which city should we recommend for launching the experience
stores?
City
State
Population
(2011 in Million)
Population
Rank
Per Capita
Income (INR)
Income
Rank
Weighted
Rank
Mumbai
Maharashtra
12.4
1
12,800
4
2.8
Delhi
Delhi
11.0
2
7,400
Bangalore
Karnataka
8.4
3
15,500
Hyderabad
Telangana
6.8
4
14,800
3
3.4
Ahmedabad
Gujarat
5.6
5
6,400
Chennai
Tamil Nadu
4.7
6
9,800
Kolkata
West Bengal
4.5
7
8,400
7
7
Surat
Gujarat
4.5
8
19,400
Pune
Maharashtra
3.1
9
10,500
Jaipur
Rajasthan
3.0
10
7,500
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Final Rank
Question 4
Q4B: Identify the Incentive Budget
Background
Krypto Motors wants is introducing a commission based incentive system for each car the sales rep will sell.
There are average 5 reps in each store. To promote a competition between the sales rep, each sales rep will be
ranked within the same store and the commission they will receive will be based on the rank. Exhibit A has the
% commission for each rank.
4.2) Below is the estimated car sales in Q1’2021 for Cities ABC and XYZ. Approx price for Electra is INR 15 Lakhs.
4.2 (a) Calculate the expected incentive payout for City ABC and City XYZ in Q1’2021
4.2 (b) What should be the total incentive budget for 2021 for all the 5 stores. You can assume average of City ABC
and City XYZ as average incentive per store.
Exhibit B: Q1’2021 Car Sales Estimation by Rep
Exhibit A: Payout Curve
Rank
% Commission
1
2.00%
2
1.50%
3
1.00%
4
0.50%
5
0.25%
City ABC
Rep A
Rep B
Rep C
Rep D
Rep E
Estimated Car Sales (Unit)
8
11
9
12
7
Rank
4
2
3
1
5
City XYZ
Rep F
Rep G
Rep H
Rep I
Rep J
Estimated Car Sales (Unit)
3
2
4
5
7
Rank
Pay out: The amount which will be given to the sales representative as a payment (salary + incentive / bonus)
Incentive Budget: This is maximum amount Krypto is planning to spend to incentivize Electra sales
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Question 5
Q5: Is this the right strategy
Background:
Krypto Motors feels that their launch strategy and incentive plan requires some changes and they want to
hire you as their consultants. They are re-evaluating their strategy to promote based on ranking and flat
commission approach and wants your suggestion on below challenges:
5.1) What could be other important parameters in selecting the cities for launching the experience stores?
How will you accommodate these parameters in selection process – how important these parameters will be
compared to each other?
5.2) What are the drawbacks of the current compensation plan?
5.3) What other way can you suggest for calculating the payouts to avoid these drawbacks?
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Segment 2
Section 3
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Question 6
Q6: Recommend car for middle income group segment
Background:
Vikram from sales team at Krypto plans to target upper middle-class population for its upcoming car launches. He
chooses Mumbai as the first city of launch
6.1) Recommend car with maximum seating capacity assuming customer has budget of 8 lakhs and can pay 4 lakhs as
down payment and rest of the price/expenses in maximum of 3 years from day of purchase.
Formula :
#1: On-road price = Ex-Showroom Price + Road tax + Insurance – Government subsidy
#2: Total cost incurred= { Down payment + (On-road price – Down payment) + (On-road price – Down payment)
*Overall Effective Interest }
6.2) Calculate the money you will spend after paying the down payment of the car in 4 years if you travel 11560
kilometers per year on average.
Formula:
Operational Cost = Total maintenance cost + Electricity Cost per KM * Total distance travelled
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Question 7,8,9,10
Dashboard Creation
Background:
Krypto’s Business Analytics team needs help with creation of BI dashboard that will help Krypto’s CEO
make strategic decisions necessary for the success of company. Kumar from IT team understands the
importance of accurate data and good database schema to derive useful business insights out of it. Help
Kumar solve below problems
7) Refer to Appendix 2 and recommend some of the quality checks you would put in place. Also, highlight the errors if
there are any.
8) Appendix 2 contains sample records for Sales data of last 2 years of the automobile industry. Create a relational
database of star schema from the data.
9) Create a dashboard including tables, charts, graphs etc. for the CEO of the company using the data given in
Appendix 2 having appropriate fields making it intuitive to track performance of Krypto in India.
10) Using Appendix 2, find out the cost price for Hatchback, SUV and Sedan.
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Appendix
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Hope you have completed the following steps
Submission Steps:
Step 1: The final report should articulate approach, assumptions and considerations used for each
of the 3 sections presented, and final solution in a PPT format provided. All 3 sections’ solutions
should be submitted on the Talview platform, as per the instructions shared
Step 2: Fill in all answers to the objective questions mentioned in the survey link by clicking here
Please note your submission will be eligible only on receiving the solution for all the 3 sections
and answers on survey link. Any missing section will lead to disqualification of your team.
Thank You
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