Shapes in Motion Pvt Ltd

Trust beyond the roads

Report By: 1. Saurabh P. Kankariya 2. Pankaj S. Thakur 3. Mayuri K. Langote

COMPANY PROFILE

Company Name:Shapes In Motion pvt ltd.

History:-

Shapes In Motion Pvt Ltd is the fairly glossy and based on bare-bones and is established in 2004. Based on consumer demand, we decided that building a small car would be the most practical new venture. So in 2009 we launched SIMREGAL , India's fully indigenous passenger car. We offer topquality products and services, because we are always thinking of our customers. Our explicit goal is to not only meet customer expectations but to exceed them.The company aims to increase its presence worldwide. The company manufacture this ca so that it is affordable to r all common people.

Company Head quarters and branches:Shapes In Motion pvt ltd has auto manufacturing and assembly plant in Dharwad in India.

Directors:1. Shreyans Vaidhya. 2. Raman Wadiya. 3. Anushree Laddha Company Business in brief:The company has a strong market position and operates a successful financial services business. The company aims to generate profitable growth and above-average returns by focusing on the premium segments of the international automobile markets. SIMREGAL will offer better pleasure to the driver and will be donning new interiors and exteriors as well.

BR

D PR FILE
and engineering servi es.

Shapes In Motion Pvt Ltd- Aut m bil

IDENTITY AND LO O:

Br

d D scription:

BRAND CONCEPT : The brand SIMREGAL whi h is a car launched in the year 2010 there are many myths regarding the brand name that how it came into existence who gave it. Many believe that it was decided by the VP marketing of our com any but actually it was given by our chairman Mr DiaFunsu, The brand SIMREGAL is formed in the following manner first three letters is the abbreviated name of com any Shapes In Motion and the rest is regal which is for luxury and prestige. In India we believed there is conception that the individuals affording car are luxurious and leave a royal life so we thought of providing the luxurious essence in cheap cost by the brand SIMREGAL.

BRAND PERSONALITY
Brand Personality refers to the context, qualities, and associations you want the target customers to build into their perception of the brand. The company mainly is focussed to the middle class of India. There is many more competition in the small car sector, but the company aims to have a car which can provide the best comfort with the least maintenance and the least possible cost. The company is obliged to have associations with some of its trust worthy distributers all over the globe and India.

Positioning St t

TAGLINE The tagline of the brand is

Trust

The tagline of the brand states trust

because according to the ethics and standard we follow and the legacy and prestige of our previous products we have our prime objective to satisfy our customers and have a good relation with them providing the best of service and hospitality we can.

   

nt:

roads
roads which was taken as a tagline

ond t

Target market:
.

Ref: Gov. Census of India

Considering the demands and demographic chart of India we thought of launching and establishing the market in India by our brand SIMR AL. After analysing the Indian

market condition we came to a conclusion that launch the car which is economical and even trustworthy and gain the confidence and have a great influence of our brand in market we will try to focus the middle class population in India which constitutes to the major part of Indian population. The brand SIMR look and cost efficient. AL assures providing a brand which is synergy of luxurious

Competitive Differentiation
The brand SIMR AL which will be launched will never digress from our code of

thics of providing consumer satisfaction and win their trust. The brand provid the es following subtle features This discerns it from other are: 1. We provide loan facilities for customers with the least interest. 2. The Brand is synergy of luxurious look and cost efficient. 3. We provide damage insurance for over two years after purchase. 4. We provide free servicing for over four years after purchase at our service centres across the country. 5. We will stand on the code of environment conservation. 6. We provide the best of service and hospitality to our customers.

The customers can buy the product at any of our leading show rooms in India and log on to our website for latest launches and details of facilities provided with the new launches we even have facility of Internet booking.

Our partners and promoters of brand are: 1. The American Society of mechanical Engineers. 2. URS. 3. Some of the local trust worthy distributers.

Communications strategy:
For the promotion of our brand and proper communication channel with the customer we will follow the following techniques: 1. Contact the advertising agencies for TV add. 2. Have banners of brand at the road side of highways. 3. Have promotional activities like sponsoring cricket tournaments. 4. Sign advertise contracts with the popular cricket players. 5. Sponsoring the formula 1 racing.

Responsibility:
By providing technologically advanced loan payment facilities which conform to stringent standards of efficiency and security we can make significant contribution to stabilisation and development.

Mar

ting Channel

Product Profile
Features
Following are some of t he features t hat make the SIMREGAL stand highlight ed amidst all ot her s mall car markets.
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More Power Max Power 51 BHP @5500 ROM. Max Torque 80Nm @ 3100 RPM. 5 Speed Manual Transmission with cable shift. Fuel Mileage of 27 KMPL as per ARAI testing. 0 to 100 KMPH in 13.3 sec only. Length 3620mm, compared to earlier Altos Length of 3495mm. 13 Inch heels compared to earlier 12 inch wheels. These 13 inch tyres are tubeless compared to the normal tyres in the 800 cc variant. Low NVH in class and low emissions High ground clearance = 160mm Turning Radius is 4.6 m BS4 Emission Norms complaint E-10 and ELV compliant SIMREGAL is being launched in three different variants.

Items/Variants AC with Heater Front Power Windows Cup Holders in Front Console IRVM Gear Shift Console Map pocket Integral with Driver & Codriver Seat Front Seat Headrests Rear Seat Headrests Passenger side Seat with Slider Front assist grips Rear assist grips

SIMRE AL Plain Basic Fabric pocket Integrated Yes Yes Integral feature through innovative suspension design Yes Yes

Striking Features
Clear Lens Headlamps Dynamic Front Grill & Bumper y Sparkling Tail Lamps y Vibrant Colors y Rotary Control for AC y Stylish Fabric
y y

Head lamp levelling Low Fuel Warning Lamp Rear Seat Folding

Dimensions
Dimensions 3495 mm 1495 mm 1590 mm 776 Kg 172 mm 2380 mm

Length Width Height Unladen Weight Ground Clearance Wheel Base

Model Variants
SIMREGAL SIMREGAL X SIMREGAL XX

Color Variants
Wine Red Carribean Blue Brilliant Yellow Superior White Silky Silver Pearl Silver Midnight Black Bright Red

Awards and Accolades

The first version that was launched by the company in 2000,SIMSTATE, stands tall as the most preferred automobile brand of over 23 lakh customers across India by the Awaz Consumer Awards'07.

SI

Helpline

1800 1800 180 (Toll-Free)

Benefits
One of the best things about SIM is the fact that it has authorized service centres all over India. Maintenance is low and the spare parts are easily available in the market. So you dont need to worry when it comes to maintenance and repairs of your car. Moreover, you are contributing to the ecological balance by reducing environmental hazards by driving a car, which takes less fuel and less emission. The body & bumper are painted in same color, which works on its favor. Space & comfort for the front seat is good. Its good for the city traffic even with the ac on.It is recommended for a family of 2-3 members. Be careful while overtaking with the ac on as it lacks power There are few drawbacks, which can be sidelined easily. First one is of lack of electronic power steering. Also there is a lack of leg room in the car. It does get a beating while driving in crowded places because of the absence of power steering pinches during such times. But while driving on a highway at a constant speed it does not make much of a difference. It gives a fresh new feeling on the Indian roads. The best thing about this car is its cute & smart looks. It is bound to stand out even when you park it next to a big car.

Unique Strengths
SIM True Value business expands the family of SIM customers, providing reassurance to existing SIM customers about resale of their cars and further emphasizes SIMs Commitment towards enhancing customer satisfaction by continuous association during the vehicle ownership life cycle. India's largest certified used car dealer network 154 outlets in 140 cities and growing All car related services under one roof professionally trained manpower Complete peace of mind
Crumple zone to absorb frontal impact A pair of ultra-high strength steel members built into the doors for additional protection against side-impact

Pricing
The standard model, the X and the XX are the 3 variants of the new SIMs SIMREGAL. The non AC standard version of the car comes with an ex-factory price of Rs 1.8 lakh and will cost Rs 1.92 lakh at showrooms, where the company is making the car. In Delhi, it will cost just over Rs 2.03 lakh (Rs 2.14 lakh in Mumbai). The AC version would be priced at Rs 2.30 lakh in Delhi and Rs 2.37 lakh in Mumbai, while the deluxe version would cost 2.7 lakh in Delhi (Rs 2.74 lakh in Mumbai). Much of India's low-cost production edge comes from cheap labour and a large part of the low-cost assembly in factories and plants is done through manual operations. However this situation is changing fast with companies wanting to increase productivity by automating

their lines. SIM cut costs by minimizing components, particularly steel, and taking advantage of Indias low production costs. Because of its size, it requires less metal, has a smaller and lighter engine than other cars, smaller tube-less tyres and a basic interior. SIM divided the components into two types proprietary designs and SIM Motors design. For proprietary design components, SIM went with established suppliers who then worked on the development from Indian technology centres hence saving further cost. The cost associated with employing engineers in international development centers was a costly affair which made SIMs use local design capabilities. For components and systems designed in-house, SIM Automobiles chose suppliers with strong process capabilities who could give valuable suggestions and improvements in the designs. Nearly everything has been sourced locally and the SIMREGAL boasts of greater than 95% of content sourced locally since day 1. SIM suppliers were an integral part of the design and development process. SIM not only worked on its own processes but also helped its vendors innovate. Instead of annual contracts, SIM went with long term volume contracts with its suppliers, driving down the costs even further. A three-shift operation and consolidated purchasing with suppliers allowed for a further reduction in costs.

Analogies
Base Model Plus Air Conditioner Plus Heater Plus Tinted Glasses Fully Loaded Plus Front Power Windows Plus Body Colored Bumper,Door Handle & ORVM Plus Central Locking Plus Front & Rear Fog Lamp Nano Nano Nano CX/LX Nano CX/LX Nano CX/LX Nano LX Nano LX Nano LX Nano LX Nano LX Maruti 800 M800 Std M800 AC Feature Not Available M800 AC M800 AC Feature Not Available Feature Not Available Feature Not Available Feature Not Available Alto Alto Alto LX/LXi Alto LX/LXi Alto LX/LXi Alto LXi Feature Not Available Feature Not Available Feature Not Available Feature Not Available SIMREGAL SIMREGAL Non-AC SIMREGAL X / XX SIMREGAL X / XX SIMREGAL X / XX Santro XX Santro XX Santro XX (Only Body Colored Bumper) Santro XX Feature Not Available

Swot Analysis
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research. Strengths: characteristics of the business or team that give it an advantage over others in the industry. y Weaknesses: are characteristics that place the firm at a disadvantage relative to others. y Opportunities: external chances to make greater sales or profits in the environment. y Threats: external elements in the environment that could cause trouble for the business.
y

Strength
y y

Major strength of SIM is having one of the largest networks of dealers and after sales service caters in the country. The Quality Advantage: SIMREGAL is having powerful engine which is far more better than other cars in the small car sector. Even the excellent body and the more consolidated look give SIMREGAL a niche among the small car segment.

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Good promotional strategy is adopted by SIM to transform its thoughts to the people about its products o SIMSTATE : The most comfortable Car even in long drives o SIMREGAL: The fuel efficient and affordable car o Availability of service stations even in the remotest place in the country. Refurbished Cars: MUL has also entered into second hand car market with a brand name SIMREGAL DAM MILEGA. Loyal Customer Base is another big strength of SIM. In JD Power survey, SIM has been awarded consequently 2nd year for best customer satisfaction. Strong Brand Value Availability of raw material.

Weakness

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Lack of having products in mid size car segment could result in shifting of loyal customers who has a desire to upgrade their cars. Labour Laws and Labour Unions are not in a good form in India. Exchange Rate Risk The company is exposed to the risks associated with fluctuations in foreign exchange rates mainly of import of components & raw materials and export of vehicles. The company has a well structured exchange risk management policy. The company manages the exchange risk by using appropriate hedge instruments depending on the prevailing market conditions and the view on the currency.

Opportunity
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SIM may encash the opportunity to enter again into the diesel segment of the cars to compete its nearest competitor TATA in diesel segment of small cars. SIM can start R&D on electric cars for a much better substitute of the fuel. Economic growth of the country is sound and promising in future. Liberal policies of GOI. Big Market: Domestic and Abroad

Threat
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Tata Motors is planning to launch a car with a price tag of Rs. 1 Lac and that could give a big impact on sales of SIM. HMIL is a challenger and trying hard to achieve number one position in the market. China may give a good competition as they are also planning to enter into car segment.

Financial Details
Total Assets:
The Shapes In Motion is having the total assets of Rs 1210 (12.1 billions).

Manufacturing Cost
The company has built its stature in India with the launch of SIMREGEL in 2010. The plant for the production of the cars was set up in Dharwad (Karnataka) with the incentives provided by the local state government owing to the generation of employment in the local region. The machinery and the labour that accounted for the SIMREGEL cost around 18% share in the total profits. Thus annually. So the manufacturing cost with the rent of land sum up to the total of 7 billion.

Marketing Cost
Being a low budget car with a considerably great mileage and stolid looks, the initial publicity hype was effectively provided by the media and it surely engendered a lot of curiosity about the peoples car SIMREGEL and too even before the launch. So the company SIM didnt have to spend a lot in the starting promotional events. With all this in mind 1 billion was spent into the promotional activity. Following were some of the promotional strategies adopted: 1. Considering the fact that televisions is having the greatest impact on the customers much money was spend on the advertisements with the tad line Trust Beyond the Roads. 2. The champions trophy and even some triangular series were sponsored (not as the main sponsor) as the promotional strategy. 3. Public support was achieved by giving one of the board post among the elite plane to the public with proper

Total Cost
Thus SIMREGAL has invested a total cost of 9 billion.

Sales
Total sales of the SIMREGAL till February 2011 is 59, 193 vehicles. On the lines of what we achieved in the case of SIMREGAL we are expecting to have the sales of our new product (bike) of over 1 Lakh in the first fiscal year.

Cost per unit product

The manufacturing cost comes out to be 10 billion / 5, 28,193 = Rs 1, 68, 938.

Balanced Assets
So the net assets left with the company are 12.1billion 10 billion = 2.1 billion.

Summary of the financial details

Data Total assets Manufacturing costs Marketing costs Total costs Sales Cost per unit product Balance assets Amount Spent 12.1 billion 7 billion 1 billion 9 billion 59,193 vehicles Rs. 1,68,938 2.1 billion