DNA AUTOMOTIVE TECHNOLOGIES

ADAS is a breakthrough technology in providing an effective mechanism for safe driving and has the
potential to become an aspirational feature that cars will in the future take up heavily. So, the very
first step for us is to patent this technology. Because we are aiming to expand in India, we will go for
an international patent even if we currently have a domestic patent.
We can then effectively chart out a course of action to enter India, keeping in mind the following
considerations:

A restriction of USD $2 Million for the first year of expansion. Since the international patent
was purchased to supplement our Indian entry, we will recover patenting cost right out of
the allocated expansion budget itself.
The severe economic inequality and clear gaps in purchasing power for vehicles in India.
The preferences and purchase of different types of vehicles is extremely pronounced in a
country like India. The different classes of vehicles sold will become the basis for developing
our targets.

PLAN OF ACTION AND TARGET MARKET

For the first year, the aim is to bring into market our technology and be extremely economical. Since
this is a new technology, we believe that the best way to enter India in this stage is through licensing
the technology directly to manufacturers. This would involve minimal cost save that of direct B2B
marketing and would generate sufficient revenues through contracts to enable wider and more
comprehensive expansion in the future.

Target segments and how we plan to acquire themWe have segmented the market into 3 different segments based on price range of the cars and into
2 segments based on our direct customers.
The target segments of ADAS hence are:
1. Business to business.
2. Business to consumer.
The B2B segment will involve tie ups with major car manufacturing companies like Maruti, BMW and
get our product, the rear camera, installed in their car models.
The B2C segment will involve dealing with the final consumers directly and providing the camera as
an 'add on' feature which can be installed in anyone's car directly.
Next, we have divided the market into segments on the basis of price of the cars.
1. Super premium models (above 20L)
2. Premium models (10-20L)
3. Generic models. (Below 10L)

SUKRITI CHOPRA
SUKRITI GOEL
TUSHAR BEHL

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Action plan for segment acquisitionOur main aim is to make our product a differentiating factor initially and then transform its image
into that of a necessity product gradually. We plan to proceed in a phased way.

PHASE 3 ( +1 year,
future course of
action)
PHASE 2 ( 6 months)

PHASE 1 ( 6 months)

Secondary stage
licensing, trickling
down to " premium
cars", longer term
contracts.

B2C targetting,
creating "add ons",
using revenues to
create an image of "
necessity product".

Primary stage
licensing, smaller
target of "super
premium cars" only

Phase 1 (6 months)
B2B marketing, targeting the super premium models.
In phase 1, the ADAS will be made available only in super premium range of cars. The cameras will
come fitted in new models of these cars. Here the marketing will involve B2B channels wherein the
super premium range of all the cars will be fitted with the camera.
To capture this segment, all the companies will be approached who will willingly install the product
in their super premium models to create a competitive advantage.

Phase 2 (6 months)
We plan to get the technology trickled down to the premium brands too thereafter.
Same B2B channels will be used to get the cameras installed in this segment. The idea is to move
towards making the product a hygiene factor for various car models.
Hence, the company focuses on super premium and premium cars via the B2B channels in the first
year of its operation.

Phase 3 ( Future course of action)

The market for our technology till this point will be exhausted. While we will not stop rolling out
manufacturing contracts, we can also allow companies to purchase these products to provide as
add ons at their dealerships. More has been discussed about this phase later in the case analysis.

SUKRITI CHOPRA
SUKRITI GOEL
TUSHAR BEHL

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BUDGETARY ALLOCATIONS
As discussed previously, for the first year, our aim is to be extremely judicious in our first year of
operations in India and then subsequently fund our added future expansion from contract based
revenues acquired in the first year. Henceforth, fund allocation for the futuristic third phase of
operation is not covered here.

INTERNATIONAL
PATENTING

OUTREACH
EFFORTS

($30000-35000)

($75000)

ENGAGEMENT
TEAMS

CONTINGENT
MONEY

($40000-50000)

($40000-55000)

As a result, first year will involve costs of :

International Patenting. Since we are recovering the patenting cost from $ 2 million, we will
first lock in the requisite amount for patenting and then allocate our funds towards various
activities. Since this is a new technology with immediate utility, we estimate our patenting
costs to lie between $30,000-$35,000. This amount will be locked in for the first year.

Outreach and Awareness Efforts. The funds we will need to create product awareness for
car manufacturers. Allocation of funds will be higher in first phase of operation than in
second because targeting the super premiums ensures that the premiums gain
information about the aspirational product which will later get converted to a necessity.
This would involve direct mails, product display runs (can be done privately for
manufacturers or at conventions for manufacturers), optimizing SEO organic search and
digital contact. In the super-premium segment, we expect private runs to be demanded
more. While outreach programs would not be restricted only to the manufacturers, costs
would run around $75,000 inclusive of activities for both super-premiums and premiums.

Engagement and Conversion Teams: This is the stage where we have displayed our products
and need active conversion into contracts. For this, we need on-ground engagement teams
for all manufacturers we will deal with who will undertake proposal designs, internal
lobbying and networking, negotiations and specialised analysis. Also, conversion would

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SUKRITI GOEL
TUSHAR BEHL

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create legal fee of entering into contracts. Since we are a startup with bare existence in
India, we will not hire a complete legal department, although we will hire full engagement
taskforces. We will consider setting up a full-functioning component of all departments only
after analysing our performance after first year. Thus, we will take support of corporate law
firms for this stage. This cost can lie anywhere between $40,000-$50,000.

Contingent Reserved Money: The remaining amount ( $40000-$55000) will be the money
reserved for taxes, negotiation blips ( contracts for lesser amount than needed) and
contingencies like governmental hurdles, contract violation lawsuits, exit cost money in
case of unexpectedly low performance in India.

CHALLENGES ANTICIPATED
Challenges facing ADAS are limited at this stage due to simple B2B dealing, however some of the
major threats could be:

Protection of intellectual property. IP plays an integral part in this business, because it is the
prime productive asset. Some problems associated could be problems with the patent
process, or the elongation of the patents cycle. This would increase the go-to-market time
for the product. Refusal of the patent application, though an unlikely possibility, would be
extremely harmful to the business

Political and Legal Issues: There has long since been a history of technology and FDI based
disputes in India. Although the present government seems keen to encourage foreing
investment, its aim at encouraging local technologies can hinder our plans to enter India.

Product Perception: This is a stage 3 challenge. The major challenge is that consumers might
perceive the equipment to be luxury. That is where the PR campaign to make people aware,
as well as the positioning of the product as a must-have, affordable luxury item is important.

FUTURE PLAN OF ACTION

This is the stage where we enter our third phase of expansion in India. We here need to continue to
find new takers for our technology, so we may contract existing contractors and non-premium
manufacturers to separately provide this technology as add-ons in their dealerships. In order to do
so, we need to incentivise manufacturers and persuade them that the technology is what customers
want and so is worth the additional amount to provide at dealerships.
Therefore, at this stage we enter B2C and create the separate demand by final consumers for ADAS
in their cars. For this we can undertake:

Safety Drive Campaigns and PR conferences.

Featured advertisement on forums like CarDekho.
Encouraging word of mouth information by tying up with car servicing companies.

So, we perceive this phased expansion to be extremely beneficial and low in risk for our product. Out
technology is unique and has immense scope. It is therefore imperative that we continue careful

SUKRITI CHOPRA
SUKRITI GOEL
TUSHAR BEHL

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expansion, keeping in mind contingencies, instead of aiming for the largest prize right in our first
year of expansion.
The phased approach will ensure a constant stream of revenue for us, which will help secure our
future expenditures of expansion.

SUKRITI CHOPRA
SUKRITI GOEL
TUSHAR BEHL

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