GOOD FOR ENVIRONMENT & CONSUMER’S WALLET
Q] What message does Hero Lectro’s ‘Badhao Tarakki Ki Raftar’ campaign deliver? Q] What was the budget of the entire campaign and how much ROI is expected through this campaign? Q] How important is it today to use eco-friendly modes of transport in India and do you think India is infrastructure ready to use e-cycles? Q] Looking forward, what innovative strategies will Hero Lectro implement to engage with audience?
We have two brands-Hero Lectro and Hero Lectro Cargo. While Hero Lectro is targeted towards recreation and commuters, Hero Lectro Cargo is specifically targeted towards people who are involved in moving goods. The positioning we took for Hero Lectro Cargo was to highlight the message ‘Badhao Tarakki Ki Raftaar’ due to the added advantages our brand Cargo e-bikes provide. Our cargo e-bike users witnessed an increase in capacity of carrying goods and reduction of cost in transporting it. Also, we have seen a rise in delivery of products at home due to last year’s pandemic.
The e-cargo bikes suit almost all kinds of vendors involved in transportation of products. Our products help in generating employment by catering to people delivering products for e-commerce platforms and food delivery apps as well. ‘Badhao Tarakki Ki Raftar’ campaign majorly focuses on spreading a message of cutting down on daily cost and increasing the income for consumers by using Hero Lectro Cargo.
Q] What was marketing mix of the campaign and whom did the campaign target?
Ideally, the target group is the gig economy workers who work as delivery agents for multiple brands. The great thing is that we are seeing an adoption from non B2B and non-food delivery sectors. We have seen adoption from teachers in college campuses for carrying books while moving around in the campuses. Majority adoption has been for people who want to use e-cargo bikes for making a livelihood in terms of being delivery agents and so on. Looking at the marketing mix, we have kept the entire campaign digital. We have used our social media platforms to promote the product. YouTube has played a major role in driving the message to our audience.
We have not yet finalized the budget of the entire campaign but we are investing significantly for promoting it on social and digital platforms. From ROI perspective, category growth has been 100% YOY. For us, the ROI will be mostly in awareness metrics and we will measure it through our brand track. Even if we reach a bump of typically 20-30% levels, it will be a significant number because the category is quite new.
The use of e-vehicles and e-cycles are very beneficial as it helps in reducing carbon emissions and congestion on roads. One of the important aspects is that it helps you save money which is spent on fuel. Moreover, users get an additional option of cycling that can help improve their health.
In terms of infrastructure, we have been working with state and central governments to provide more and more infrastructure for cyclists. Cycling lanes have come up in various states including Delhi, Bangalore and Gujarat. E-cycles, as a category, has been neglected in India so far but globally e-cycles and cargos are the number one option for vehicle in the e-space. In India, we have seen a lot more traction in two wheelers and four wheelers with Central and State subsidies. We are working with the governments to receive some positive response for including e-cycles and cargo e-cycles in the subsidy program category. Last year, Delhi government had announced incentives for e-cycles and we hope it materializes soon. It will help develop the infrastructure and affordability of these vehicles for customers.
Q] Whom does Hero Lectro consider as its competition in the market and what innovative strategies does your brand utilize to have an upper hand in the e-cycle industry?
Hero Cycles was first to launch e-cycles under Hero Lectro in India. We started three years back in the e-cycles segment. As a brand, we have been pioneers in cycles in India and globally. We currently have a significant market share of 70-75% of the entire e-cycle market in India. We are focusing on our marketing strategies to expand this category. There are other start-ups who have entered the market and have raised funds. We welcome them as well as the entry of these brands will spread more awareness and adoption amongst the customers. Our strategies which keep us ahead includes opening of an exclusive store which sells only e-cycles and cargo e-bikes. We have three such stores in Chennai, Delhi and Kolkata and intend to open another ten this year. We also have a new e-commerce website which will go live next month. With this, we wish to directly connect with customers and provide them with great experience on both offline and online platforms. Besides that, we have launched a new product line of electric MTBs (Mountain Bikes) and we have seen a great response to the product. It will be a great revenue driver for us going forward. We unveiled the #WantItFlauntIt campaign pre-Diwali with an aim to appeal to younger audience to adopt e-cycles as a way of life.
We are focusing on being associated with various initiatives associated with advocacy of e-cycles. We are tying up with many local associations and e-bike sharing platforms. The government is emphasizing on e-bike sharing hubs and we have become partners for many start-ups opening up in this space and are providing our vehicles for them. From a communications standpoint, the primary benefit that we highlight is environmental and health benefits and we will continue to focus on that going forward. Last year we did a campaign with NDTV titled ‘Cycle Of Change’ and we saw a lot of traction through it. This year too, we would be looking at creating a property which circles around how e-cycles have helped people transform their lives.
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