Ola Electric
Go-to-Market Strategy
By Nexus Consulting | Group B10
Problem Statement: Go-to-market Strategy for Ola Electric to sell 25,000 EV Scooters in
India within 12 months of launch.
1. Industry Analysis
2. Competitor Analysis
3. Consumer Analysis
4. Target Market & Geography
5. Pricing & Competitive Positioning
6. User Journey
7. Marketing Strategy
8. Sales Strategy
2
1. Industry Analysis
2. Competitor Analysis
3. Consumer Analysis
4. Target Market & Geography
5. Pricing & Competitive Positioning
6. User Journey
7. Marketing Strategy
8. Sales Strategy
3
Between FY 2016-2020, the 2-wheeler EV sales in India grew by 66% CAGR. The country
in FY2020 sold 152,000 EV units registering a 20% growth Y-O-Y.
Industry Level Challenges
o Higher dependence on import : primary components
such as lithium battery, motor ,cobalt etc are
imported.
o Current competition with ICE-2W: Many industry
leader in ICE-2W are waiting for right time to launch
the EV-2W alternative of their product.
o Lack of standardisation of hardware: Till now, there
aren’t any industry or govt standards for hardware of
charging EV-2W.
Source: 2-Wheeler EV India Market Outlook by JMK Research & Analytics
4
Battery cost accounts to ~50% of the total EV cost. The industry is seeing decline in
battery prices due to economies of scale with advancements in design and performance.
Market Level Challenges
• Fame-2 : Stringent criteria applicable for allowance of
subsidies
• High upfront costs: 60% costlier than 2W_ICE of similar
specifications
• High battery replacement cost: 40-45k after 4 years over
normal wear and tear of vehicle
• Low average: The EV-2W runs on average 75km-80km
on single full charge of the battery whereas an ICE-2W
runs around 300 km (assuming 5L tank capacity and
average of 60km/L)
• Lack of charging infrastructure: Till the end of 2019,
India has only 1332 public charging stations. Space is the
biggest constraint.
• Low resale value, Low pickup and low top speed.
Source: 2-Wheeler EV India Market Outlook by JMK Research & Analytics
5
SWOT Analysis – Ola Electric
Strengths
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High Production Capacity
Strategic Acquisitions & Partnerships
Investments/Funding and unicorn status
Self-owned Tech infrastructure
Government Support
Brand recognition
Ability to pivot
Hardware Software digital integration
Opportunities
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Growing EV market & Global expansion
Government's Support in India
Battery Swapping Ecosystem
Fast-charging networks
Make-in-India and Eco-friendly tag
Source: The Ken, Ola’s path to 10 million EV Scooters
Weaknesses
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New Entrant in the Market
Affordability of the Product
High Attrition in leadership
Aggressive timelines
Long approval timelines
Lost talent from acquisition
No battery swapping
Constant changing decisions
Threats
• Competition from traditional two wheelers
• Competition from already existing electric two-wheeler
brands
• Negative effects of the Covid pandemic
• Poor infrastructure and unplanned cities in India
• Price and Range anxiety
6
SWOT Analysis – Key Insights for Ola Electric
STRENGTHS
• High Production Capacity - World’s largest scooter manufacturing factory, annual production capacity - 10 million units
• Strategic Acquisitions - Acquisition of Etergo BV, an electric scooter OEM, based out of Amsterdam
• Strategic Partnerships - Tie up with ABB for robotics and automation solutions for the factory - Industry 4.0 principles
• Investments/Funding - Raised about USD 400 million in funding from Tiger Global, Matrix India, Tata Sons Chairman etc.
• Self-owned Tech infrastructure - Factory powered by Ola's own proprietary AI engine and Tech stack
WEAKNESSES
• New Entrant in the Market – Lack of relevant experience in the automobile industry
• Affordability of the Product – At the proposed price of the product, cheaper options are available for the consumers
• Aggressive timelines - The launch is happening within a year which may compromise on certain areas.
• No battery swapping - No battery swapping facility being adopted currently which is the current way forward for the
ecosystem to grow.
OPPORTUNITIES
• Growing EV market & Global expansion - India and international markets across Europe, the UK, Latin America, Australia,
and New Zealand to play in
• Government's Support in India - increased push for electric vehicles and home-grown technology in line with Prime Minister
Narendra Modi’s Atmanirbhar Bharat vision
THREATS
• Competition from already existing electric two-wheeler brands – Ola Electric is a late entrant in this segment in India
• Negative effects of the Covid pandemic and Poor infrastructure and unplanned cities in India.
7
1. Industry Analysis
2. Competitor Analysis
3. Consumer Analysis
4. Target Market & Geography
5. Pricing & Competitive Positioning
6. User Journey
7. Marketing Strategy
8. Sales Strategy
8
The Competitive Landscape in the 2-Wheeler EV India Market
Source: 2-Wheeler EV India Market Outlook by JMK Research & Analytics
9
The competitive landscape is divided in terms of Battery and speed.
More than 60% of the total 35 Models launched in the market are high speed electric
scooters with Lithium-ion battery.
• In terms of Battery, the Indian Electric Wheeler Market
is divided into two segments i.e., Lead based Battery
and Lithium-ion Battery. Lithium-ion Battery has the
greatest market share as they are light weighted, thermally
stable and supports fast charging. In term of battery life
also lithium-Ion batteries can last long for 10 years.
MARKET SHARE-HIGH SPEED
AMPERE
10%
ATHER ENERGY
12%
HERO
ELECTRIC
31%
Source: Bikewale.com
OTHERS
5%
OKINAWA
42%
• In terms of speed, The India Electric 2-wheeler market is
divided into two segments. I.e., High speed Electric 2wheeler market and low speed electric 2-wheeler
market. High speed Electric 2 wheelers are those whose
speed is greater the 25 KMPH and Low speed Electric 2
wheelers are those whose speed is less than 25KMPH.
Majority of the Indian Electric 2-wheeler Market is tilted
towards High-speed electric wheelers whose market
share is around 65%.
10
Distribution Network: Ola Electric should follow Ather Energy’s strategy for
the initial launch with focused presence in few cities and drive sales volume.
Operating States Count
No. of Dealers/Experience Stores
700
30
600
600
25
500
350
400
350
300
26
25
20
13
15
10
200
100
7
5
11
0
0
Hero electric
Okinawa
Ather
Ampere
Hero electric
Okinawa
Ather
Ampere
Sales Volume
60000
50000
50000
40000
40000
30000
30000
20000
20000
• Even though Ather operates in very few states with
limited number of dealer/experience stores, the sales
volume is good.
10000
0
Hero electric
Okinawa
Ather
Source: Official Company Website, Bikewale, Zigwheels
Ampere
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Key advantages of Ola Electric over its competitors
1. Closest player: OLA Electric scooter are the first in the electric 2-wheeler segments whose max speed is 100 KMPH.
Ather energy who is the OLA’s closest competitor can provide the max speed of 80 KMPH.
2. Storage Space: In terms of storage space, OLA has managed to provide the space of 50 Litres while its competitors are
able to provide the storage space ranging from 10 Litres – 25 Litres.
3. Battery: OLA Electric scooter comes with the 1.2KW ×3 swappable batteries which provides him the competitiveness in
terms of efficiency among his competitors.
4. Features: In term of features such as Touch screen display, GPS and mobile connectivity, the only competitors for OLA
are Ather energy. Ather Energy has two models in the market which have the same features as the OLA electric Scooter.
5. Charging Time: Charging time of 1-2 hours is something which is incredibly unique for OLA, as no competitors in the
market offers such a low charging time. As per the market reports OLA Scooter can charge up to 50% is 18 Minutes
which can provide the back up for travelling up to 75 Kms, provided rider maintains the low speed while riding.
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1. Industry Analysis
2. Competitor Analysis
3. Consumer Analysis
4. Target Market & Geography
5. Pricing & Competitive Positioning
6. User Journey
7. Marketing Strategy
8. Sales Strategy
13
Consumer Survey: Key Insights on Popularity, Consumption, and Brand Awareness
1. POPULARITY -Among 141 responses, 77.3% of the people
responded that they own a bike/scooty/Scooter(petrol) and 40.4%
of people use the two-wheeler on daily basis.
2. CONSUMPTION- On an average, respondent spent the
Rs.2000 monthly on fuel on a two-wheeler.
3. BRAND AWARENESS - Among respondents , Hero Electric
had the highest brand awareness, followed by the OLA Electric
and Ather Energy.
.
Source: Consumer survey, N=141 responses
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Consumer Survey: Key Insights on features in an EV scooter
4. FEATURES MATTERS THE MOST - Respondents rated
the “Distance covered in the single charge” as the most important
factors in an Electric 2-Wheeler Scooter. The Other important
factors were Aesthetics, Comfort, distance and Self-diagnosis.
5. FEATURES DOES NOT MATTER - Respondents does
not seemed to be too optimistic regarding features such as Touch
Screen, GPS and mobile App connectivity.
Source: Consumer survey, N=141 responses
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Consumer Survey: Key Insights on purchase decisions and buying process
5. BARRIERS IN MAKING PURCHASE DECISIONAvailability of charging station is one of the factors which acts as
a barrier in purchase of the Electric 2-Wheeler. Other factors such
as Availability of service centres and the Battery range are also the
factors which acts as a barrier in purchase of Electric 2-Wheeler
Scooter.
6. BUYING PROCESS - Respondents prefer to take test rides at
the showroom before making the decision to purchase an Electric
2-Wheeler. Apart from the test ride respondents do conduct the
research on automobile platforms such as bikewale.com and on
you tube before making their purchase decision.
Source: Consumer survey, N=141 responses
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For the past 12 months, the popularity index for Electric Scooter has been higher than
Electric Bikes as per the Google Trends Analysis.
Top 5 Cities (Last 12 months) Popularity Index
Electric Scooters
Electric Bikes
Bangalore
Surat
Thiruvananthapuram
Pimpri-Chinchwad
Navi Mumbai
Chennai
Mysore
Coimbatore
Kochi
Secunderabad
• The average popularity score for Electric Scooter is
39 vs. Electric Bike is 35.
• There was a surge in popularity during Jan-Mar
2021 period when India witnessed an ease in lockdown
restrictions and economic recovery.
Source: Google Trends Analysis as of 31st May 2021
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For the past 12 months, the popularity index for the Hero Electric Brand is 10X more than
Ola Electric and Ather Energy as per Google Trends Analysis.
Top 5 Subregions (Last 1 year) Popularity Index
Ola Electric
Hero Electric Ather Energy
Pondicherry
Orissa
Karnataka
Tamil Nadu
Haryana
Tamil Nadu
Karnataka
Pondicherry
Andhra Pradesh
Goa
West Bengal
Delhi
Maharashtra
Tamil Nadu
Kerala
• During Jan-Mar 2021 period, when the Indian economy
was showing signs of recovery due to easing of
restrictions, Hero Electric and Ola Electric showed a
huge spike in demand. However, the same wasn’t
reflected for Ather Energy.
Source: Google Trends Analysis as of 31st May 2021
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Key insights based on the 22 in-depth one-on-one consumer interviews conducted with
consumers between the age group of 25-60 from different backgrounds and cities.
1
Charging Infrastructure
The charging infrastructure remains a
key hurdle in the minds of the
consumers to switch to a 2-wheeler
EV. Consumers’ confidence will rise as
the charging infrastructure
development is highlighted.
4
Usage
The primary usage of the 2-wheeler
EV will be for commute, daily chores
within range of 20 kms maximum.
Consumers don’t mind switching
having an EV as a secondary means
of personal transport for this usage.
Source: 22 one-on-one Consumer Interviews
2
Range Anxiety
Consumers feel 2-wheeler EVs can
only be used for shorter rides and are
highly concerned about the range
provided by the batteries of these EVs
in a single charge.
5
Pricing
Consumers are willing to pay above
Rs.75,000 for a good quality EV
provided it meets all their requirements.
Only some are willing to pay in the
range of Rs.1.2-1.5 lakhs for an EV.
3
Safety
Consumers are concerned about the
durability and the safety aspects of
the 2-wheeler EV in comparison to
petrol-fueled bikes and scooters.
6
Brand Perception
Consumers don’t mind opting for a
better-quality EV product from a
new player compared to an average
quality product by an established
player in the market. EV technology is
quite new and hence, the old players do
not necessarily have an edge.
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1. Industry Analysis
2. Competitor Analysis
3. Consumer Analysis
4. Target Market & Geography
5. Pricing & Competitive Positioning
6. User Journey
7. Marketing Strategy
8. Sales Strategy
20
Target Market: We recommend that Ola Electric targets consumers aged 25-40 with mid to
high income range for its go-to-market plan.
Why this target market?
Target Consumer
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Age Range: 25-40
Income Class: Mid to High Income
Geography: Tier 1 /Metropolitan
Background: Working Professionals
Source: Consumer Survey Analysis
Based on the survey/interviews/discussions with Industry
experts, this segment:
• Understands the EV segment and developments
happening in this sphere
• Willingness to try newer products
• Digitally equipped
• Ready to spend if value proposition expected is offered:
performance, aesthetics, battery life
• Daily usage for office commute
• Easy to target through Digital Media channels
• First automobile buy is normally a two-wheeler
• Parent Brand Awareness index high – 97% users were
aware of OLA
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Target Geography: We recommend that Ola Electric starts with Tier 1 cities for its go-tomarket plan.
Why this target geography?
Based on Target Group identified,
• These cities have the higher density of TG
• Demand Availability and growth
• Growth rate of city
• Last Mile Support
• Awareness
• Charging Network viability
• Interest of people
As per Google Trends Analysis, Bangalore and Chennai
come in the top 3 cities for the popularity index for the last
12 months for Electric Scooters and Electric Bikes.
Karnataka and Tamil Nadu have delivered the highest
volume of sales in EVs for the last 3 years. Karnataka is also
the fastest growing market for EV in India.
Source: Google Trends Analysis as of 31st May 2021 and JMK Report on EV Outlook India
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1. Industry Analysis
2. Competitor Analysis
3. Consumer Analysis
4. Target Market & Geography
5. Pricing & Competitive Positioning
6. User Journey
7. Marketing Strategy
8. Sales Strategy
23
Pricing: We recommend that Ola Electric price its EV Scooter in the range of Rs.95,000 –
Rs.1,10,000 for its base model*.
Ola Electric Value Proposition: Sustainable and safe mobility for everyone.
• Based on the feedback from interviews/surveys, we saw that Ola Electric has a higher degree of
differentiation on performance, fast charging and aesthetics compared to other players in the market.
• Also based on the analysis of survey results, we saw that consumers gave high importance for performance
and comfort.
• We requested the consumers to quote a price, based on the value offered and we got the price around Rs
95000.
• In terms of features and performance, main competitor for OLA is Ather energy and they have priced
similar products for Rs.1.2 Lakhs – Rs.1.5 Lakhs.
• Summing it up all, we suggest Ola Electric to price anywhere around Rs.95,000 to Rs.1,10,000
Note: This pricing doesn’t include the subsidy applicable under the FAME-II scheme.
Source: Consumer Research Analysis, Bikewale.com
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Competitive Positioning: Price vs. Range
PRICE VS RANGE
In terms of competitive positioning of Range
Vs Price, Hero Electric has edge over Ola
electric and other competitors.
RANGE
Currently Hero Electric is offering the Electric
scooter at a price point of Rs.82,903 with a
range of 108 km/Charge while Ola electric
scooter is positioned to offer 100Km/charge at
a price point of around Rs.1,00,000.
PRICE
Source: BikeWale, Ola Electric specifications and prices are speculative.
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Competitive Positioning: Price vs. Performance
PRICE VS PERFROMANCE
In terms of competitive positioning of
Performance Vs Price, Ola Electric has the
competitive advantage over other players
PERFROMANCE
Currently Ola Electric is offering the Electric
scooter with a top speed of 100 Km/hr while
Other competitors are only able to give the
Top speed of 80Km/hr.
Ola Electric needs to use the performance as
one of the key points while positioning its
scooter to the customers.
PRICE
Source: BikeWale, Ola Electric specifications and prices are speculative.
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Competitive Positioning: Price vs. Aesthetics / Features
AESTHETICS/FEATURES
PRICE VS AESTHETICS
In terms of competitive positioning of Price
Vs Aesthetic , Ola Electric has the competitive
advantage over other players
Currently Ola Electric is offering the great
aesthetics and features such as Bluetooth
Calling, GPS and Self Diagnosis at a price
point of Rs.1,00,000. Same features are also
offered by the Ather Energy but at a higher
price point of Rs. 1.2-1.5 Lacs.
Since there is only one competitor which is
Ather energy providing the latest features, Ola
Electric needs to use the Aesthetics and
features as the key points while positioning its
scooter to the customers.
PRICE
Source: BikeWale, Ola Electric specifications and prices are speculative.
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Differentiation: We recommend that Ola Electric focuses on specifications such as motor
power, battery capacity, charging time, top speed for its communication strategy.
HERO ELECTRIC
SPECIFICATIONS
PHOTON HX
OKINAWA
OPTIMA HX(DUAL
BATTERY)
ATHER ENERGY
PRAISE PRO
ATHER 450 Plus
OLA ELECTRIC
ATHER 450 X
OLA ELECTRIC
MOTOR POWER
1200-1800 W
BLDC
550 W-1200 W BLDC
1000 W -2500 W BLDC
5400 W PMSM
6 KW PMSM
6KW, Brushless DC
Motor
RANGE
108 KM/
CHARGE
122KM/CHARGE
88KM/CHARGE
100 KM/CHARGE
116 KM/ CHARGE
100KM/CHARGE
SPEEDOMETER
DIGITAL
DIGITAL
DIGITAL
Touch Screen Oddometere,
Android OS
Touch Screen Oddometere,
Android OS
Digital Display, Touch
Screen
BATTERY CAPACITY
72V 26 AH
51.2 V 30Ah × 2
72 V 2Kw
2.9Kwh
2.9 Kwh
1.5 KW×3, Swappale
Battery
BATTERY TYPE
Li-ion
Li-Ion
Li-ion
Li-ion
Li-ion
Li-ion
BREAK TYPE
DRUM
DRUM
DISC BREAK - BOTH
SIDE
DISC BREAK - BOTH SIDE
DISC BREAK - BOTH SIDE
DUAL DISC BREAK
CHARGING TIME
8-10 Hours
4-5 HRS
2-3 HOURS
5-6 HOURS (Waterproof Battery) 5-6 HOURS (Waterproof Battery) 1-2 HOURS
KERB WEIGHT
116Kg
83 KG
150KG
108 KG
108 KG
74KG
ABS
NO
NO
E-ABS
No
No
No
LOAD BEARING CAPACITY
130-150 (2 Adults) 130-150 (2 Adults)
150KG
150-200
150-200
150KG
MOBILE APP CONNECTIVITY
NO
NO
NO
YES
YES ( Calling Feature, Bluetooth) Yes
GPS
NO
NO
NO
YES
YES
Yes
TOP SPEED
45KMPH
42KMPH
58KMPH
80KMPH
80KMPH
100KMPH
WARRANTY
3 Years
3 Years
3 Years
3 Years
3 Years
3 YEARS
PRICE
₹ 82,903.00
₹ 78,640.00
₹ 79,277.00
1.27 LAKHS
1.47 LAKHS
₹ 1,00,000.00
*POP refers to Points of Parity, POD refers to Points of Differentiation
Source: BikeWale, BikeDekho, Official Websites of players
POD*
POP*
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1. Industry Analysis
2. Competitor Analysis
3. Consumer Analysis
4. Target Market & Geography
5. Pricing & Competitive Positioning
6. User Journey
7. Marketing Strategy
8. Sales Strategy
29
Customer Journey: Ola Electric will sell its Electric Scooters through online platform
through their websites only* (later through app as well).
Book a Test Ride
Visit the Ola
Electric Website
3
4
Visit the
Experience Centre
1
Register using your
email address
2
*The scope of the GTM has been identified through primary research from an Ola Electric Executive.
5
Purchase Ola
Electric Scooter
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PROCESS
AWARENESS
CONSIDERATION
PURCHASE
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USER
ACTIONS
TOUCH
POINTS
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Become aware about Ola
Electric
Visit the website
Register
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Digital Ads
Bike Review Platforms
Press Release
Influencers
Youtube Channels
Ola Cabs App
Word of Mouth
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POSSIBLE
PAIN
POINTS
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Information on the website
is not enough
The resistance to register
using email ID
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Book a test ride
Visit the Experience Center
Interaction with Product
Specialist
Perform the Test Ride
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Remarketing Ads
Email Marketing
Digital Ads – Book your test
ride
Experience Center Visit
Interaction with Product
Specialist
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Too many steps to book a
test ride
Availability of dates & times
Experience Centre not close
enough
Product Specialist
interaction not meaningful
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Visit the Website or
log-in to the app
Choose the desired
model / variant
Select payment mode
Select Delivery Option
Make the purchase
Ola Electric
Website/App
Finance Partners
Modes of Payment
Pick up from the
Center or Delivery of
the Scooter
Model / Variant not
available
Waiting time or
delivery time too high
Payment mode not
available
Ease of financing
ADVOCACY
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Share experience or
review on Social Media
Word of Mouth
promotion
Referral Incentives
Engages with CRM
Manager
Customer Testimonials
Customer Relationship
Manager
Referral Campaign
Ola Electric EV Rider
Community
Not too keen on sharing
experiences with their
network
Reputation shouldn’t get
hampered
CRM Manager is not
responsive or supportive
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1. Industry Analysis
2. Competitor Analysis
3. Consumer Analysis
4. Target Market & Geography
5. Pricing & Competitive Positioning
6. User Journey
7. Marketing Strategy
8. Sales Strategy
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The Marketing Strategy must focus on removing the functional barriers (usage, value,
and risk) and the psychological barriers (tradition and image) to drive adoption.
Performance Marketing
Growth through Referral
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Search Engine Marketing
Google AdWords
Display & Discovery Ads
Facebook Ads, Instagram Ads
Influencers
Referral Campaign
Referral Incentives & Add-ons
Customer Testimonials
Organic Marketing
Ola EV Community
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Search Engine Optimization
Content Marketing
Podcast and blogs
YouTube Channel
Social Media Engagement
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Added benefits with other
service providers – ranging from
food delivery, e-commerce, OTT
Build a network of like-minded
people
Foster brand loyalty and
retention
33
Sales Strategy: A high quality product specialists' team combined with a superior experience
delivered to early-adopters through customer support will fuel the sales engine.
1
CRM System
Implement a strong CRM system to
personalize the user journey (from
website to purchase) and assist the
user at different stages in the sales
journey.
4
Ownership Models
Explore different ownership models
such as long-rentals and exchange
offers in addition to direct purchase to
make adoption easier for the target
market.
Source: Industry Experts Insights
2
Experience Centers
Launch Experience Centers in prime
locations in Tier 1 cities to educate
customers about EVs and provide an
in-depth experience about riding and
owning an Ola Electric EV.
5
Customer Support
Assign dedicated Customer
Relationship Managers to deliver a
superior after-sales experience as
they can create advocacy for Ola
Electric brand and drive revenue
growth in the long-term.
3
Product Specialists
Product Specialists understand the EV
technology in-depth and are
responsible to educate the customers
in the simplest way. Focus on hiring,
training, and their performance by
setting the right KRAs to grow sales.
6
Early-adopters
Focus on the experience of earlyadopters to ensure high satisfaction.
Building a strong community of
early-adopters can be instrumental in
shaping up the growth trajectory, and
drive word of mouth marketing.
34
Go-to-Market Plan Success Metrics
• Ola Electric captures 10% of the market share of 2-wheeler EV sales in India within 12 months of launch.
• Ola Electric at the end of 12 months is able to drive the sales at positive unit economics.
35
Thank You
Nexus Consulting