ACKNOWLEDGEMENTAll praises belong to almighty Allah who is the
supreme authority knows the ultimate relations underlying all sorts
of phenomenon going on in this universe and whose blessings and
exaltation flourished our thoughts, our ambitions and our modest
efforts in launching the ELECTRONIC BIKES (E-BIKES) in Pakistan. We
also offer our humblest thanks to HOLY PROPHET HAZRAT MUHAMMAD
(PBUH) who is the forever torch of guidance and knowledge for
humanity as a whole. We deem it our utmost pleasure to avail this
opportunity to express gratitude and deep sense of obligation to
our respected Aly Raza Syed for his valuable and dexterous
guidance, scholarly criticism, untiring help, compassionate
attitude, kind behavior and moral support. Through the Project he
helped us and guided us in every aspect, as that was a very new
experience for us.
BRIEF INTRODUCTIONThe face of auto industry that was redefined
with the invention of fuel-efficient fourstroke engine technology
is all set to see dawn of a new era in two-wheeler industry. It's
not petrol or diesel or any other fuel, but its electricity that
will initiate a revolution in two-wheeler industry in Pakistan. We
have introduced the new idea of Electric Bikes that are very
popular means of personal transport in the developed countries like
America, Japan and China. With the rising cost of fuel at
International and national level, increasing levels of pollution
and clogging in transport system specially in town areas, higher
running and preservation cost of vehicle, the electrically charged
bikes have very bright future in area of personal transportation.
The name of our e-bike is Bit - Bike. We have introduced some
models of e-bikes which are not only noiseless and zero- emission
vehicles but they cost you much lesser. The electric vehicle (EV)
technology comes with a complete power pack, which consists of
ultra motor, electronic controller, specialized battery and
charger. The technology is provided by Ultra motor that has been
already tested. So its safe. The Impulse Inertia technology used in
it provides much higher torque to the bike. Thus there is less
worry on the part of the driver except controlling it. This
electronic vehicle is coupled with the advantage of windings and
water proofing. But it will take time to give it a real test when
it will face the Pakistan environment. As it comes with a one year
warranty the chances are high to get an initial success on the
Pakistan roads, moreover the cost is too low. Though it seems the
idea is good but a complete success has to be measured on Pakistani
roads.
INNOVATION
Different Features:n n n n n
Charged on battery ( petrol free ) Cheaper As Compared to Other
Bikes Noise Free Automated Functions Comfortable Ride
We have launched our electronic bike in four attractive colors.n
n n n
RED BLACK PINK BROWN
Now we will explain the reasons for these selecting these
colors:Red color is the standard color used in bikes on road e.g.
Honda, Yamaha, and Kawasaki etc. It also looks very neat and eye
catching also and most of the boys who are very formal, studying in
colleges and universities like red color. The boys who are very
fashion oriented and stylish and like to be casual are often seen
enjoying ride with their friends like Black color. The Pink color
is launched especially for girls because most of the girls like
pink color and this color also reflect feminist. The Brown color is
liked by the boys who have age less than 18 years. This would help
the customers to choose their e-bike according to their personality
and liking.
DIFFERENTIATIONAs in the auto market of Pakistan, there has no
such bike been introduced that works through electricity that is
what makes our product different from other bikes. BIT-BIKE has all
those features that are completely different from other bikes that
run on petrol, gas and diesel.
The other points of difference BIT-BIKE has are:n n n n n n
Our product is much cheaper from other bikes. Is charged from
battery. It starts automatically by simply pressing the start
button. Maintenance expenses are easily affordable. It has tubeless
tires. It has digital meter.
NEED GAP ANALYSISGAP Analysis is all about what customer needs
and what the company is providing them. So for this reason we
conducted research in the market to find that what customers are
thinking about the bikes. Largely, people were not satisfied with
the bikes because of maintenance expenses, the bikes were too
expensive, all low quality parts available i.e. no genuine parts.
So in order to meet customer requirements regarding two wheelers,
we are launching e-bike that will complete the gap that restricts
the product to meet the requirements of customers.
How does our product/service fulfill this need?Our product is
rewarding customers by providing them with different features &
colors in bike. As customers wants different features and good
quality. So our product is satisfying the requirement of our
customer wants for satisfying them. Secondly regarding our
services, we are providing appropriate showrooms with at ease
environment according to the requirements of Customer. And we are
trying to give healthy environment in which every customer will be
given necessary service that he requires. The customers can contact
us through our telephone numbers and the calls will be free of
cost. Hence our product will meet all the requirements and values
of the customers.
Justification of Innovation Based on Need Gap Analysis:Our basic
point is to give consumer best quality, reliability, satisfaction
and concerning our product. Customers want to buy quality and
affordable ride. So to meet the standards of customers, we are
bringing innovative thought of bike with different features. So
based on our analysis we are providing different product in the
market for creating difference from other bike sellers, As the
people are familiar with one kind of bike only that runs on petrol,
gas and diesel and far more expensive than our product. So we are
pretty much sure that our innovation will be worth and people will
purchase it like hotcakes. The gap which was created in a market
segment containing those people who have money to buy bikes but do
not purchase because of its high maintaining expenses and the
increasing prices of petrol, gas and diesel. Those people will also
afford to buy our bike.
Current marketing situation expected market size and
potential:Currently in market there is no showroom for electronic
bikes in Pakistan. There are electronic bike providers in countries
like Japan, China, India and other European countries. But in
Pakistan there is no concept of electronic bikes. We are expecting
a good response from people because we are providing comfortable
ride, quality excellence, and unique features in a bike. We have
potential to provide people with all these things that would help
the customer convenience and our business run successful and
profitable.
DEEP-LIST ANALYSISThe word deep list analysis stands:
DEMOGRAPHIC ENVIRONMENT ECONOMIC ENVIRONMENT ECOLOGICAL
ENVIRONMENT POLITICAL ENVIRONMENT LEGAL ENVIRONMENT INFORMATIONAL
ENVIRONMENT SOCIAL ENVIRONMENT TECNOLOGICAL ENVIRONMENT
These are factors which are very important in launching a new
product. These factors will be further discussed relating to our
product.
1. Demographic Environment: The factors included in demographic
environment and are used in our product are: Youth and Old People
Educational groups Job Groups and small businessmen
Youth and Old PeopleThe population in Pakistan that purchases
most bikes are middle class level. Our product targeted area in
middle class are the youth and accordingly to the latest research
of world Pakistan has been ranked one of the top in most young
labour power i.e. consisting of young people. The youth are those
people who are young, energetic and very adventurous. Our product
will be a complete package for them. But we have also targeted old
people to an extent. The features in our product also fascinates
their benefits i.e. the old people are very sensitive and not
physically strong as compared to the young people. Our bike is
providing them with comfortable drive and soundless pollution.
There is no need for the old people to start the bike with
physically hard effort i.e. striking it with their leg but need to
simply press the start button and enjoy a comfortable ride.
Educational Class or GroupsThe customers who fall in the
category are students of colleges and universities. The students
who belong to middle class level are our main target customers.
They do not to go on vans or busses anymore because they will have
their favorite ride in their hands. The price is very economical
and the performance will also speak for itself. When speaking about
universities a majority that cannot be neglected are girls. The
special thing about a bike is that it fascinates the girl party.
After having interviews of girls who are studying in colleges and
universities were very excited and showed their favorable response
that a large numbers of girls will buy it.
Job Class and Small BusinessmanOur target market was youths but
the people are working in small companies and can buy bike but
cannot afford its maintenance expense are also target to some
extent. Our bike will be a good ride for them and it will also safe
them a lot of money in case of other bike was wasted. Small
business will also be a part of our innovation customers.
2. Economical Environment:In economic environment the major
factors which are of concern are as follows:
Distribution of Income
Saving Credit Availability
Distribution of IncomeIn economic environment the major concern
of importance is the economic condition of the customers because it
reflects the purchasing power of the customers and their moods
their choices, their personality and their status. There are three
markets low, middle and upper level. Our major targeting market is
middle level because the share of upper and lower level is
comparatively low as compared to middle level. Middle level
customers are more concerned about the product by keeping in view
its price.
Saving and Credit AvailabilityAs where economic conditions of
customers are concerned, we are well sure of this fact that our
targeting customers would have more savings because of less
maintenance expenses. And more power business does not deal on
credit basis. This will help our customers in making their economic
background more strong and their availability of credit will also
expand.
3. Ecological EnvironmentEcological Environment is mainly the
external factors that may affect our business. That is true because
our business could be affected due the change in external variables
which are follows:
Electricity Natural Calamities Waste Management Other
Factors
We will explain these factors one by one as
following:Electricity The first factor in ecological environment is
electricity which is facing scarce problem in Pakistan. Light is
going for almost eight hours a day by this you can understand that
it goes for almost half of the day. Our bike is charged by
electricity and will be affected if the electricity goes again and
again. For dealing with these factors we have made an innovation in
our product i.e. our bike will be charged in 3 hours and will cover
distance 70 k/ms. This is the difference which our product is
creating on the mind of customers.
Natural Calamities Weather has also affected on our product but
only to an extent for weather are in Pakistan but two main weathers
are given below. I. Summer II. Winter Our product is a nature of
ever green and is not that much affected by any season whether it
is hot green summer or it is month of December. Our product is a
necessity for the customers. Although in month of hot Summer and
cold Winter with dew the use of bikes becomes less. The benefits
that are provided by our product to the customers are far more
superior than those of other bikes. The customers will be more
attracted by our bikes. Wastage Management Another most important
factor of ecological environment is the wastage management. Before
starting or initiating any business proper suitable plan should be
made to deal with the problem of wastage. We have decided to keep
strict control on wastage control management. I.e. when the raw
material is purchased or imported the material checker will check
all the raw material and report in case of any defected raw
material so that it could be sent back as soon as possible .any
wastage in the process of making the product should be properly
disposed off. Other Factors The other factors that can affect our
business are Earthquakes and floods Twister.
4. Political Environment:It has political crisis since last
year. Due to that crisis the economics conditions have been down to
its knees and have been badly affected by whole economic setup. The
fore there have been political instability among major ruling
parties and due to this reason, the stock markets are going
downward and foreign investors have stopped investment in our
country, because of this our economy is being downward. So because
of this reason, small businesses in Pakistan are greatly affected
by government policies including taxes and subsidies. Government
has reduced subsidies and increased taxes. So every business is
being affected by this decision. Thereby political conditions
should be stable to improve economic condition so that small
business can also run up their business in effective way. Political
environment includes rules and regulations including taxes and
subsidies. 5. Legal Environment: Pakistan is an Islamic country and
due to being an Islamic country the rules and regulations are also
made by keeping in view our religion. Govt. has imposed ban on some
products that cannot be sold in Pakistan, e.g. beer and all other
products made from alcohols , meat of pig, etc. but the product
that our company has launched is electronic bike and there are no
such rules against it. We have been registered and authorized by
ISO to manufacture and sell our product all over Pakistan. We have
abided by all the legal requirements regarding our substitute
competitors because initially we dont have any direct competitors
in Pakistan who are manufacturing e-bike so we have this advantage
but we have made plans to counter them by keeping reasonable prices
and increasing benefits as the time passes. Main aim of our company
is to provide the customers a product that is fully pure following
the considerations of our country.
6. Informational Environment:Informational environment includes
how our company collects information about: Customers Suppliers
Government Regulation Policies Competitors There are different
variables about which company gets information. These variables are
very important because it helps company to be aware of the customer
needs and to plan their strategies accordingly. Customers Customers
are most important for our company. Our company gets information
about the customers, so that it can design the product according to
the customers wants& needs. If our company knows the needs
& wants of the customers then only our company can satisfy them
and that will also generate profit for the business.
Suppliers Supplies are also an important factor and if the
company does not have information about their suppliers then this
would create a negative impact on our production and for the
company. The company has to meet all acceptations of the customers
i.e. The production is dependent on the supply of raw material. If
the company has enough information about its suppliers then it
could differentiate between the quality of the raw material
provided its different suppliers. The main goal of our company is
to provide quality bike to our customers. So if not having
information about our suppliers can affect the quality of our
product.
Governmental Policy
Government regulations plays major role in any business.
Government regulation taxes and subsidies policies. These policies
have greater impact on any business; we need to get information
about govt. regulations so that we can run the business according
to govt. rules and regulation. We need to get information about
Government Rules and regulations. Competitors Company should also
have complete information about its competitors if it has to
compete with its competitors. True saying who ever has more
information has an edge on his competitors by the help of
information about our competitors we can differentiate our products
from them and this can help to increase our profit. It can also
help us to improve our business strategies to grow our business. 7.
Social Environment: The factors that are included in the social
environment of a product are: Level of Income Literate or
Educational Background Living and Working Conditions
Communities
Level of Income We have targeted mainly middle level market but
to some extent low and upper class level have been targeted. These
people have income level 20000 or plus. Though by looking at them
we have to fulfill the requirements regarding quality of our
products. Our
society has comprised mostly middle class. So we targeted the
middle class level of society.
Educational Background We have focused upon youngsters who are
literate and well capable of understanding what they are buying and
that whether it is of that worth. They would that ability to
compare the quality of the products that have been sold to them.
The people who are illiterate dont know what quality of a product
is and cannot even differentiate the product. So thereby we have
targeted educated people. Living and Working Conditions The people
living in Pakistan are Muslim and they all their values and their
beliefs. They have different style from people of Europe. They
dislike alcoholic products. As our company have targeted middle
class of the society because of being in majority, so it just to
overlook their living standards and working conditions. We have
opened number of small show rooms and designed our product
according to the living and working condition of the people of the
society. Communities Its the basic point while studying
environment. Its more important to observe the values. Norms and
culture of the society has great impact on our products. These
communities have different lifestyles and have the different norms.
Its the communities who tell the business that what is there
requirement according to the new trend of the society. Because in
society everyone wants that there should be innovative and
different products that are launched. As community plays the major
role towards the success and
failures of the business they are the ones who can recognize the
products more accurately and effectively.
8. Technological EnvironmentalAs technology is increasing say by
day. More and more innovative featured products are being launched.
Because there had always been a great demand by customers for
innovative products. We have purchase two machineries that will fix
the body parts of the bike just in 15 minutes i.e. we only have to
place the relevant body parts inside the machine and leave the rest
on it. The machine is purchased from CHINA and it is working well
condition after producing 80 bikes in almost 2days. Time taken to
make 80 bikes For 1 bike =15 minutes For 80 bikes =? Converted into
hours = 1200/60 = 20 hours Machine is working 10 hours in a day =
20/10 = 2 days =15* 80 = 1200 minutes
CORPORATE INTENT
Mission StatementOur mission is to provide better quality
product at reasonable price targeting middle level community and to
an extent upper tower community Corporate Goals &
Objectives
BIT-BIKE business is to manufacture a bike and market it in a
ways that would create a value which can be maintained for a long
period of time for our customers. BIT-BIKE gives more preference to
its customers and wants to build long relationship with them.
Here are some of its most important goals: Provide best quality
ride to its customers. To increase our products line so as to give
more choices to our customers. Providing safe and comfortable ride
to our customers. To expand our showrooms not only in Lahore but
all over Pakistan. Goals & Objectives of Sales: To increase our
profit by 15% margin in the very first year of launching. To create
10% market share and working well to take it further. To increase
our showroom as sale increases in potential areas.
Major Market Trends In this modern time, trend is being changing
day by day: if we talk about the major market trends the people
want innovation, require something new because of the advanced in
European countries. The different are variables of market trends
that have been discussed forward: Technology Oriented People living
in Pakistan are very fond of technology and want to se it whenever
given an opportunity. Our product is new door of technology for
bikes. Technology has been used in every expect and now it has also
been introduced in two wheelers. Fashion
Now a days people are becoming fashion oriented. As fashion is
changing day by day. People attitude are also changing day by day.
They like to use something new. Previously the customers who were
using petrol oriented bikes are sick of them and want to try
something different in bikes. The petrol oriented bikes are being
used in Pakistan since many decades. So by the launched of our
product i.e. bit bike that is new and innovative will become a
fashion symbol and everybody will go for it.
Customers Liking and Disliking The customers liking and
disliking are mattered a lot for us. We actually want to know what
customer feel about our innovation or product. Till now there was
no concept of whole new type of innovation in bikes hat are being
manufactured since many decades. People were not given any choice
and they had to buy those bikes as it was their need. Key Success
Factors These are deep areas that we much focus so that to achieve
our mission and vision. If there is any weakness in your key
success factors your other goals would also become weak. So fix
your key success factors before making other goals. These factors
are as follows:n n n
Quality Innovation and Different features Easy and comfortable
ride
Quality This is the factor that can lead our business to achieve
its goals and objectives effectively. By this you can understand
its importance. This factor can improve your product. People will
be attracted to our product if we are providing them more
quality.
Innovation or Different Features This is that factor which gives
your product an upper hand on other present bikes. The more
features will be provided to customers, the more they will pay for
it.
Easy and comfortable ride The third factor of our bike is its
comfortable seats that are specially designed according to the
doctors direction and its spatiality is that it prevents back pain
to customers even after constant ride of 9 hours. Our customers
health means a lot for us.
COMPETTIVE ANALYSISThe competitive analysis is about our
competitors i.e. who are our indirect competitors and substitutes
competitors.n
Indirect Competitors
1 Japan ( SHEEYON ) 2 China ( YATAI ) 3 India ( ULTRA HERO )
Substitute Competitors
n
1 Honda 2 Yamaha 3 Metro
4 Shaheen
MARKET PLAN TO LAUNCHIn market segmentation the whole market is
divided into different segments according to the customers needs
& wants. It basically includes those groups of customers who
have some needs and wants. There are four main segments that are
follows:n n n n
Geographic Segmentation Demographic Segmentation Psychological
Segmentation Behavioral Segmentation
Geographic Segmentation: Its basically divide the market
according to geographic area nation, state, region, countries,
cities. Our target area is the capital of Punjab that is Lahore. In
Lahore we have selected five major areas; Barkat Market Mac load
Road Saman Abad Road UET G.T. Road
These are the main areas in which we are segmenting our
showrooms. This is for our short term planning but in future we are
planning to expand our showrooms in major cities of Pakistan
including Islamabad, Karachi etc.
Demographic Segmentation: Demographic segmentation deals with;
Age Gender Income Education Occupational Social class
Age: We have targeted the two major ages according to our
products. o Youngsters o Elders . Age: above 15 years 20 years.
BIT-BIKE: Our product has targeted the customers who are young and
who are adventurous and innovative in nature. Age: 18 years to 30
years. The professional customers are also targeted so making it
for their convenience.
Age: 30 years plus Gender: Both males and females are targeted.
Income: As our target is middle class and to an extent the upper
class so there salary range should be at least o Minimum 20000 and
above
Occupation: o Students o Professional Education: At least they
should be literate so that differentiate between quality and fake.
Social class: We have targeted two main classes: o Middle class
Psychographic Segmentation:It is the science of using psychology
and demographics to better understand consumers. In this
segmentation the buyers are divided into different groups on the
basis psychology/personality, traits, lifestyles or values. The
targeted groups include: Believers Strivers Makers Survivors
Behavioral Segmentation:
In behavior segmentation customers are divided according to
there information about the product, attitude and response towards
the product. There are different segments in behavioral
segmentation which we have taken in consideration: Behavioral
occasions Benefits Usage rate Loyal customers Readiness stage
Behavioral occasions: The product is not only for specific but
is used for several occasions. People used it for routine and
non-routine tasks. Benefits: The main benefits provided by our
product are its quality, features, performance and reliability.
Usage rate: Usage rate for this product is high because as it will
be launched with the time passes it rate of usage will increase
continuously. Loyalty status: We want to build long relationship
with our customers. We emphasizes on providing quality to our
customers because we dont them to shift, switch or split from our
product.
Readiness stage: Our customer is aware of the product but not
know it will also be launched in Pakistan so early. For making our
we have made marketing plan to aware more and more customer about
our product
TARGET MARKET ANALYSISBIT-BIKE aims to expand its market by
promoting these different features in bit bike. Our survey has
indicated that there are no other showrooms that are providing
these kinds of bikes. Our product is targeting fitness, healthy and
tensionless life. We are using specific technique. Product
Specialization: Here we are using Product Specialization pattern of
target market selection. In this pattern, we are focusing on
product specialization. There is no such product available in the
market. So this is our differentiation from others. We are selling
these different features of bikes to several market segments. We
want to create strong reputation in this specific product in the
market. For that purpose we have to up-to-date with new technology
and strategy to improve our product. So thats why we can provide
our customers with high standards of quality of our products and
services.
Product Analysis (Marketing Mix) Brand NameThe brand name of our
product iss BIT BIKE
Logo
TM
Trade markOur logo is registered according to the companys
ordinance 1984 and Securities and Exchange Commission of Pakistan.
From SECP, our logo is registered trademark as you can see on the
top right of the logo above .
FAB AnalysisFeature Low Price Attribute Affordable Benefits More
people are willing to purchase our bit bikes according to the
situation in Pakistan because the fuel prices are touching the
sky.
Driving
Self Start
self start by pushing the button and the bike will start our bit
bikes is
Weight
Light
are light
weight. They can be moved easily from any place to
Speedometer
Digital
another. the speed in digits as well as the battery level gauge
and indication of gear in which the bike currently is.
Product RangWe have offering only one product Bit Bike. Which is
totally electric chargeable. We offer bit bike in different colors.
Red, Black, Pink and Brown .We wants to awareness to our customers.
In future our product developed market in Lahore, Islamabad,
Karachi and other cities of Pakistan.
Placement Strategies:Whole Selling We do not have any whole
seller because we have our own showrooms and our own employees are
running that. Distribution (Direct vs. Indirect) We have selected
direct distribution strategy for our product. We are selling our
product directly to our customers .Customers can visit our
showrooms and they can directly purchase bit bike from us.
Retailing Retailing means selling your goods and services directly
to your customer. We are selling our bit bike directly to our
customer at our showroom. We have no concept of whole selling. We
sell directly to our customers. Because we are providing goods and
services at our showrooms we directly purchases raw material from
our suppliers directly. Channels of Distribution: Channels of
distribution mean what channels we are using to sell our product.
We are using selective channels of distribution.
Selective channel distribution means that we have limited
showrooms in Lahore and opened in selective areas. After targeting
Lahore, we will introduce our product in other cities of the
country. Through selective channel of distribution: PROMOTION
STRATEGIES: In the marketing mix, promotion represents the various
aspects of marketing communication, that is, the communication of
information about the product with the goal of generating a
positive customer response. Promotion plays a vital role in
creating a specific image in its customers minds. According to one
marketing expert, Marketing is not a battle of products; its a
battle of perceptions We will be doing promotion through these
attributes: Product Positioning Strategy: Positioning is the act of
designing the companys offering and image to occupy a distinctive
place in the mind of the target market. Factors that are valued by
consumer while making decision are; Price Quality Availability
Durability Warrantee So we are launching our product with
reasonable price, fine quality, easy availability, and good
durability for designing the products offering in the minds of our
target customers. In the past there was no such idea about
chargeable bikes in Pakistan so our product has great value in the
market. Unique Selling Proposition (USP): What is USP? Unique: It
clearly sets you apart from your competition, positioning you the
more logical choice. Selling: It persuades another to exchange
money for a product or service. Proposition: It is a proposal or
offer suggested for acceptance.
USP is unique selling proposition that we are launching a
product which no one else is giving in the market. Credible
uniqueness such as, "Our product is the only one that offers
dynamic experience on the e-bike is appealing to the market.
Advertising Strategy: There are two strategies for advertisement.
Above The Line Below The Line
We are starting new business and right now we dont have that
much budget, so we are using this below the line strategy.
According to our budget, we are using brochures to advertise our
products. We distribute our brochures in different schools,
colleges, universities and buses. We are also continuous our
advertising campaign through banners in different places like Kalma
Chowk, Campus Stop, Multan Chungi, Anar Kalli, near UET and Akbar
Chowk. . Here more of the customers are being attracted toward our
product. These marketing strategies would help customer for more
awareness. As we are targeting Lahore only, so thats why we are
marketing via broachers, banners. As advertising on local T.V.
cable networks and F.M. stations is not too expensive so we also
decides to use local T.V. cable networks and local F.M. stations.
As more and more customers are conscious about the different brand
products, so thereby we have to be very specific upon our products
and their marketing strategies. Thereby, we have to more affective
towards our advertisement so that we can convince our target
customers towards our product. Advertisement Objectives: We are
introducing new product so our aim to create brand awareness and
knowledge for our product new features therefore we are going to
adapt informative advertising. We are launching innovative product
in Lahore, so thats why our major and important objectives are;
Customer awareness To capture 20% market share for the product and
to work to improve it further.
Achieve our target to meet the expanses in the first year
Customers Loyalty
Campaign Theme: The basic purpose of the campaign is to give the
awareness to the customers regarding the innovative product that we
are launching in the market. The better the campaign would be, more
the customers would be attracted towards the products. Reach: Our
target city is Lahore. We will advertise in different parts of
Lahore. Our marketing focus would be in these areas; Kalama Chowk
Johar Town Canal View Model Town Muslim Town Iqbal Town
We select above spots because these are most populated areas in
Lahore. Through most populated area our reach will become more
affective. Frequency: Our banners and broachers would be fixed for
at least three month to make awareness our customers. We select on
air time of our ads on local T.V. cable during the cricket match
more frequently. And ads on local F.M. stations evening time more
frequently. Media Vehicles:
Broachers Banners Local T.V. Cable Local F.M. Stations
Proper Budget Allocations advertisement: Our target city is
Lahore, and our marketing budget is 980,000 which are low. So
keeping in mind of that budget, we are going to market our product
with below the line strategy. In this, we are marketing through
broachers, banners. So we have allocated our budget according to
our marketing strategy. Thereby we have to be very specific
according to our advertising strategy. Slogan: Our slogan is given
as:
Lets GoDirect Selling Strategy: Direct selling strategy consists
of door to door selling and we are not adopting this strategy
because we are going to open four showrooms around different places
of Lahore. Our innovative products are available at our showrooms.
It wouldnt be available any where else. Push Vs Pull Strategy: We
re using push strategy because we are new in the market and our
bike are unknown to the consumers. As there is no specific consumer
demand of this product launch, so in our business the product and
the information are "pushed" to the consumer by promotion. We have
decided to market our product in specific areas of Lahore looking
towards our target customers. Promotional Materials There are four
promotional materials
o POS Terminals o Participation in Trade fair or Exhibitions o
Broachers, Leaflets o Banners POS Terminals: We are using POS
terminal in our promotional tools. Our POS terminals would be
available in our specific outlet. Participation in Trade Fair or
exhibitions: In future, we will try to participate in exhibitions
and trade fairs for promoting our products. We are not
participating currently in trade fair or exhibitions because of low
marketing budget.
Broachers, leaflets: We are using broachers and leaflets as
marketing promotional material to advertise our products. Banners
& Hoardings: We will also adopt banners as promotional tool
because we are new in the market. We need more and more
advertisement for making customers aware about our products. So
according to our marketing budget, we have selected these marketing
promotional tools to advertise our product.
PricingList Price Almost everyone agrees that the price of the
product or service is a key factor in the decision to buy. Price
affects both sales and volumes and profits and without the right
price, both sales and profits will suffer. So, under Pakistan
situation we decided to introduce our e-bikes in a low price to
attract the customers.
Retail Price At the start of our business and sales of our
e-bikes the price will be Rs. 23000 /- for the first 50 customers.
Discounts Discounts will be given to the customer and for their
convenience, bikes will be place in the departmental stores where
they will get the discount of 10%. Installments We are offering
installments to all the customers for their convenience. Rs.2000 /-
will be charged on per month basis. Bundling This offer is limited.
If any customer buys 3 or 4 bike, we will give 20 % discount on
that. Seasonal pricing We are planning to provide seasonal offer
price to our customers. Like in winter the price of our bikes will
be Rs.21000/Initial No profit We are not taking any initial profit,
just to gain more and more customers. Market Skimming: As we have
the new product in the market, we have the chance to take high
price because we dont have any direct competitor. We would like to
charge high price for a short period and after that, when were
established, we will lower the prices to retain our customer. In
Lahore, there are number of bike lovers.Its is very common you must
have heard that whenever theres something new product in a new
product they come into the market. Well try to catch as much
customer as we can and for retention, we would offer some cool
offers and reduce our prices.
Price elasticity of demandA measure of how much the quantity
demanded of a good respond to change in the price of goods,
computed as the percentage change in quantity demanded derived by
the percentage change in price. If we increase the price of our bit
bike the total revenue of our company decreases. When we increase
the price of from RS 23000 To 25000 , the demand of our bit bike
falls from 50 to 20 and total revenue of our company falls. Because
demand is elastic .If there is a reduction in quantity demand is so
great that is more than offset the increase in price . Thus an
increase in price of our bit bike reduced P*Q because the fall in Q
is proportionally greater than the price in P.
In elastic demand ( a price elasticity greater than 1), price
and total revenue moves in opposite direction. If the demand is
unit elastic ( a price elasticity exactly equal to 1) , total
revenue remains constant when the prices changes.
Consumer sensitivityOur consumer is not sensitive because if we
increase or decrease the price of bit bike. There is no impact on
customers what ever price is . Bit Bike is purely electric bike so
there is no consumption of fuel . Bit Bike is easily approachable
Pricing Method: We will take the cost plus method as we dont have
any such a direct competitor in the market so that this method
would be very suitable for us to compute the per unit price . We
have the simple formula by which we can calculated the per unit
price. Variable cost per unit Fixed cost Expected unit sales Unit
cost = variable cost +fixed cost Unit sales
People:Effective and successful of Bit Bike Company must be
extremely people oriented. They need to create an environment that
is conducive to innovation, productivity and high performance by
using their human skills along with their technical skills in areas
such as scheduling, procurement, cost estimating and budgeting,
monitoring, controlling and risk management and maintain their
technical and functional skills at the highest possible level while
attractive their softer skills to meet the challenges of today and
tomorrow. Skills Motivation, Collaborative leadership,
Communication, Commitment, Conflict resolution.
MANAGING DIRECTORMUHAMMAD ASIF
MARKETING MANAGERWAQAS KAMAL
ASSEMBLING DEPARTMENT
QUALITY ASSURANCE
MARKETING
DISTRIBUTION
WORKERS
ENGINEERS
WORKERS
WORKERS
List of the Managers and Workers Chief Executive Managing
director Marketing manager Assembling manager Quality check manager
Assembling workers MURTAZA ARSHAD MUHAMMAD ASIF WAQAS KAMAL IMTIAZ
ALI MUHAMMAD SHAHID
10 main workers 15 assistant workers 5 other workers
2ENGINEERS
PROCESS The sale process is quite simple. The only customer need
to enter to our outlet and order the desired color and style and it
is available in few minutes in exchange of some money. BIT-BIKE
will like to focus all their power on daily business operations and
serving existing client demands. It's critical to your success
however to focus on gaining market share from current possible.
As BIT-BIKE should develop a sales process that is right
business; here are some other points that BIT-BIKE will keep in
mind. BIT-BIKE should continuously improve sales skills and stay
open to new ideas. BIT-BIKE will make the sale it should be its
secondary objective and will help us build long-term relationships.
BIT-BIKE should contribute more than just a product.
Physical Evidence: Land and Building: We will acquire a building
which is spread in two canals from Gulshan-e-Ravi for Rs.
800,000.We select Gulshan-e-Ravi because it is an industrial area
where prices are relatively low. Show Rooms: We will acquire four
shops around Lahore for our showrooms on rent. Location and Sites:
Location is the most important part of the business. Without good
location, business cannot grow fast and successfully, so location
can bring much difference to a business. Location is a 1st step in
running a good business. So we select following sites for our
showrooms. Opposite Brkat Market right side of Leadership College.
Mac load road opposite of Makhdoom Corporation. G.T.Road near
U.E.T. left side of Bata Shoes branch. Main Samna Abad More near
Shezan Bakers
MARKET ENTRY STRATEGY:As we are opening a new outlet of Bit
Bike, thereby we are launching a new product according to the
customers needs and wants. The strategy we are using is the Flank
Attack There are two strategic dimensions in this strategy
Geographic Segmental
Geographic: Our target market is Lahore. Our main aim is to
introduce our product in that region where there are people are
getting much knowledge about gas and petrol bikes. But
mostly they want to get a rid of fuel consumption bike because
fuel consumption bike polluted the environment. So we are
introducing a new product that is much better in quality as
regarding to fuel consumption bikes. It saves the environment to
making pollute. Mostly young generation want to get some thing new
so our bit bike will satisfy their needs with better ways.
Segmental: Basically our target market is Lahore. We target the
middle and low level people of the market. As we know mostly
student in the morning they are waiting buses and other vehicle to
join them and reach their destination with in time, but mostly they
get late. So we will provide them facility of bit bike with a
reason able price. We use different channels of advertisement to
provide awareness of our product, because initially we introduce
our self with a great image of our product in the customers minds.
Launch Plan: There are two kinds of launch plans these are: Soft
launch Official launch Soft launch: In soft launch we are testing
our product so that we will put our product at our outlets and try
to our customers, also we offer our customer that we will provide
10% discount first 50 customers. If these strategies are not
successful then we step to other strategies. Official launch:
Official launch means that now we are ready to launch our product
in market. In official launch we are starting our business of Bit
Bike. We are launching three outlets in Lahore. In official launch
new marketing strategies, we use different channels of advertising
and promotion of bit bike. Events Marketing At Launch: At this
stage that we are new in the market so we do not have that much
budget to do any event marketing. We have to collect sufficient
budget to grow our business because we are now at growth stage. But
with the passage of time when our product will grow and
people will be aware of it then we can think about this event
marketing but now we is not doing any kind of event marketing.
Publicity & Public Relations activities: Publicity is being
done for the improvement of our brand and the success of our
company relation not only with customers and suppliers but with the
public as well. Here we are more concern about the customers
relationship regarding our product because they are the ones who
acknowledge our products more as compare to anything else. We are
new in this market so, we have to focus more on the public relation
for the awareness of the product. There are following activities
which we are going to do for public relation: Press Relations: It
means that presenting news & informations about the
organization in the most positive way. We will contribute our
little bit percentage of sale to promote our business and create a
positive image of our product in the mind of the customers. Product
publicity: Product publicity means that our sponsoring efforts to
publicize specific products. Obviously we will also sponsor
different programs to advertise our products. For creating product
publicity, we have designed a program. For this purpose, we would
go to different universities and colleges that would sponsor
different activities for students and other middle level people to
promote our products. Government rules and regulations: We will
join only those businesses which are fulfill the government rules
and regulation requirements. So we choose the business of bit bikes
that is fulfill the legal formalities. So government cannot disturb
our business. Marketing public relation: Its is also called the
publicity. Here we have to promote our new products and building
interest of people in our product. We can build interest of our
customers as providing a
discount to those regular customers who take one customer with
him, in the next purchasing time.
Gantt chart
What is SWOT Matrix ?The concept of determining strengths,
weaknesses, threats, and opportunities is the fundamental idea
behind the SWOT model. To present the model in a more
understandable way, scholars came up with so-called SOWT MATRIX.
SWOT matrix is only a graphical representation of the SWOT
framework
SO
strategies: Bit bike is new petrol free motorcycle company it
has the capability to attract more customer than the exiting
companies and SUGAICE have an opportunity to expand the business
& capture the market. S-t strategies: Loyalty of customers will
be the major strength for the company and Bit bike are increasing
their product lines that can prove to be a benefit in the coming
years. W-O Strategies Bit bike Gross Profit margin is low as
compared to invested capital and we can overcome this problem by
opening more show room in whole country which will help company to
increase its gross profit margin. W-T Strategies Bit Bike dont have
many show rooms and due to it the price of the product will be high
and some of the competitor will compare will price.
Financial Analysis:Following are our product financial analysis
given below.
One Time Expenses:One time expenses are those which occurs only
one time of the life of the company.
One Time Expenses
Item
Land and Building Plant and Machinery Furniture and Fixture
Equipmentvehicles Showroom Rent average Property Tax
Salaries per yearTotal Sum
Sum(Rs) 80,00,000 1,25,00,000 40,00,000 15,00,000 56,00,000
5,39,750 27,000 45,90,000 3,67,83,750
Fix Cost per yearItem Showroom Rent (Average) Property Tax
Sum(Rs) 5,39,750 27,000 2,50,000 45,90,000 54,06,750
Collaborative Networking Fee Salaries per yearTotal Sum
Variable cost per month
Material cost per unit:Material costing for per unitItem Qty 1 1
2 1 1 2 Per Item 4600 4250 1450 1650 400 1425 Sum 4600 4250 2900
1650 400 2850 1200 950 19,450
Main body Engine Battery Electric motor Seat Wheels and Tires
Light system head light indicatorsFinishing Total Sum Item
Cost of production per year for the 1500 units:
fuel Gas Bill Electricity Bills MaintenanceTelephone Bill Total
Sum
Sum($) 50,000 15,000 60,000 15,000 20,000 1,60,000
Cost of Production per yearItem
Main body Engine Battery Electric motor Seat Wheels and Tires
Light system head light indicatorsFinishing Total Sum Variable Cost
Fixed Cost Total cost
Qty 1500 1500 3000 1500 1500 3000 1500 1500
Per Item 4600 4250 1450 1650 400 1425 1200 950
Sum 69,00,000 63,75,000 43,50,000 24,75,000 6,00,000 42,75,000
18,00,000 1425000 2,82,00,000 19,20,000 54,06,750 3,55,26,750
-
-
Per unit cost ItemsTotal production cost of 1500 units in a year
Total fix cost for the year Total variable cost for the year Total
cost Total unit produce in a year Rs 2,82,00,000 54,06,750
19,20,000 3,55,26,750 1500 2368519450 4235 23685 3565 27250
Per unit costPrice Per UnitPer Unit Material Cost Fixed
+Variable Cost Total Profit Margin 15% Selling Price