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Copyrights Reserved by NEEV 2011 Symbiosis Centre for Management & HRD BIZARRE Page 1 Copyrights Reserved by NEEV 2011 Symbiosis Centre for Management & HRD Growing a Premium Brand ANGEL Cabs Pvt. Ltd. Ms.Revathy Roy, a 47 year old woman entrepreneur started ANGEL Cabs Pvt Ltd. on the 8th march 2007. The company consists of female taxi drivers who ferry women clients around the city of Mumbai. The taxis cover the areas of Mumbai and Thane and also extend services for travelling from Mumba
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  Copyrights Reserved by NEEV 2011 Symbiosis Centre for Management & HRD BIZARRE Page 1  Copyrights Reserved by NEEV 2011 Symbiosis Centre for Management & HRD BIZARRE Page 2 Ms.Revathy Roy, a 47 year old womanentrepreneur started ANGEL Cabs Pvt Ltd. onthe 8 th march 2007. The company consists of female taxi drivers who ferry women clientsaround the city of Mumbai.Poor hygiene inside the regular (yellow black)taxis, guthka chewing and sometimes drunkmale drivers gawking at women passengersdisgusted her to the extent that she decided to launch her own cab service “by the womenand for the women”. Men are not allo wed toboard the taxi, while boys under twelve andsenior citizens are. Unlike a normal taxi thesecabs cannot be hailed, they need to bebooked before hand for fix duration or a routeand paid in advance.Ms. Roy, initially, started with two cabs andnow has a fleet of 18 cabs consisting of Wagon R and Versa. The cars are airconditioned and have feminine luxuries likewomen magazines, large mirrors, minicosmetic kit, nail clippers and talcumpowders.The taxis cover the areas of Mumbai andThane and also extend services for travellingfrom Mumbai to Pune during the day. Theservice can be availed at Rs 200 per hour andfor longer journeys at Rs. 20 per km and Rs 15for every additional Km. They also offer a planfor office girls who can pay a monthly rentalfor pick up and drop service from home tooffice. Of the 18, 9 cabs are always on themove to serve the bookings for the day whilethe remaining 9 have been rented to acompany for next six months.Her clientele consists of wealthy upper classprofessionals who wish to avoid the trouble of driving on their own but at the same timecannot afford a full time chauffer in a city likeMumbai. Several party girls and parents of theyoung daughters prefers using this service forbeing driven back home late at night. Parentsof small kids are also using this service as a carpool to have their kids dropped to school.These customers are willing to pay double thenormal taxi fare for conveniences that are onoffer. Growing a Premium Brand   ANGEL Cabs Pvt. Ltd.    Copyrights Reserved by NEEV 2011 Symbiosis Centre for Management & HRD BIZARRE Page 3 But the going has not been easy for the past 5months in which ANGEL has been in existence.In response to the advertisement of the ladydrivers, Ms Roy received 182 applications outof which she was able to select only 18. Theapplicants are going through 3 regress drivingtests in order to prove their drivingcompetencies. Ms. Roy intends to maintainthe high recruitment standards because she is unwilling to compromise her client’s safety. There are financial troubles too. Ms. Roystarted with just Rs. 55 in her pocket and afew well wishers by her side. Shecircumvented the need for large initial capitalby leasing the car from her friends, as she hadneither the money to pay interest nor anycollateral to keep.Even now all her cabs are leased. In additionto the EMI, she pays Rs 2500 per month percar as rent for using the car. The car ownermay or may not sell her the car at the end of 3 rd year at market rates. After paying the staff salary and expenses for fuel and spares, shehas little left for her own use. In fact she wasunable to pay her office rent for the first threemonths. Her profits come up to Rs 1000 percar per day which is used in repaying theloans. Needless to say she has little cash leftover for future expansion or publicity.Moreover due to the lady drivers her wage billis much higher as compared to a normal taxi.Unfortunately her taxis have not been arunaway success. Out of the 18, 9 are vacanton weekends due to no demand from officegoers who form a large customer segment.Moreover even on weekdays it is difficult tofind female customers who are willing to paydouble the regular fare. According to herthere are about six thousand private taxis onthe roads of Mumbai (in addition to theyellow black taxis), even if we assume that 10percent of these are used by women on anygiven day, she has a huge market to tap.Till now ANGEL cabs has not used anymedium to publicize itself. Awareness aboutthe service can be attributed to the word of the mouth publicity or to the cabs which arespotted on the roads. The informationavailable about them is through the media,which highlighted the company as an exampleof women empowerment.Undeterred by the existing conditions Ms Royhas ambitious future plans. She intends tostart her own driving school for ladies in Pune.She also intends to start taxi services in 4other cities in India namely, Delhi, Bangalore,Hyderabad and Kolkata with 10 cars per city.She also has plans of raising capital from themarket by launching an IPO in next 3 years.  Copyrights Reserved by NEEV 2011 Symbiosis Centre for Management & HRD BIZARRE Page 4 A market research survey showed that asignificant proportion of women are willing totry the taxi service but are reluctant due tohigh prices charged by the ANGEL. A sectionof women feel that fare should not be morethan 5-10 % of what a regular air conditionedtaxi charges. It was also discovered in thesame survey that the women do not mindbeing chauffeured by male drivers as long asthey behave professionally and the cabs arewell maintained. Two private taxi services-Taxi Gold and Meru Taxi have beenaggressively expanding their reach andacquiring more and more customers.All this spells trouble for Ms. Roy. Her targetmarket is indifferent to her unique sellingproposition, is deterred by her high fares; shehas ambitious plans to expand but little initialand working capital, no time and absolutelyno drivers to fulfill her plans.As a business consultant what advice wouldyou offer her?Identify and prioritize the problems sheshould address and how should she meet herinitial working capital needs till then?What should she do to manage and grow herbusiness?   Game specific Elimination Round Phase 1 : Case Study analysis submission. Campus Round: Top 5 teams to present at SCMHRD Note: Please make necessary assumptions where necessary  In General    Each team will comprise of 3 members from the same institute.    A student cannot be part of more than one team.    One team can submit only one entry.    Only students of full time MBA can register.    There is no restriction on the number of teams from an institute.    The participants should submit the executive summary in pdf format. Rules and regulations  
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