SBJR Ultimate Aero Limited
“Make your home on road”
Table of Content
| Name: | Page: |
| Executive Summary | 4 |
| Introduction | 5 |
| Vision & Mission, Company Overview | 5-6 |
| Products/Services | 6-8 |
| Technology | 9 |
| Intended Market Environment | 10-12 |
| Competitors Profile | 13-17 |
| Industry | 17-18 |
| Business Model | 19 |
| Marketing and Sales Strategy | 20-23 |
| Product/ Operating Requirement: | 24-25 |
| Management and Personnel | 26 |
| Intellectual Property | 27 |
| Regulations/Environmental Issues | 28 |
| Critical Risk Factors | 29-30 |
| Startup Schedule | 30 |
| Financial Projections | |
| Distribution of Investment | 31 |
| Capital requirement & Investment | 31-32 |
| Forecasted Income Statement | 33 |
| Break Even Analysis | 34-35 |
| Questionnaire | 36-37 |
| Bibliography | 38 |
Executive Summary
Transportation engineering could change the way we live. Car industry is growing very rapidly in developed countries. There are plenty of opportunities to grow but entrepreneur have not come yet to establish a car manufacturing industry in Bangladesh. The crisis of fuel is coming out in such a manner that people could buy a car but they cannot afford to maintain that in daily basis. Price of fuel, gas & oil are increasing every week. So, SBJR Ultimate Aero Ltd. thinks to get rid of this problem to assemble solar cart to reduce the excessive demand of natural fossil fuel.
As a populated country in the South-Asia continent SBJR Ultimate Aero Ltd. is mainly focus on middle class people who are leading their life very simple. The main reason behind the selecting of middle class people is to add some extra assistance in their daily life which made their life easy, comfortable and colorful, like; save time, cost consumption, mental satisfaction etc. which will remove their daily monotony. There is no direct competitor for us inside Bangladesh as we are manufacturing cars but some competitor may reveal. : SBJR Ultimate Aero Ltd. will be the first car manufacturing company in Bangladesh. In this car industry in Bangladesh there are plenty of scopes to spread out and capture the 40% market of car sales.
Apart from this within 2022 SBJR Ultimate Aero Ltd. will do research and develop some upgrade technology due to the necessity of technological development like wind power technology. This is because this type alternate power helps the world to reduce pollution, also more effective rather than today’s car, behind this reason the it helps to reduce up to 95% fuel consumption which will Be great relief for our consumers.
This is a developing project of making solar car in Bangladesh. We have described every possible aspect setting up a car manufacturing company. Our predicting mind mapping would be effective when this dream project will see the light of reality.
Introduction
Bangladesh is a small & huge populated country in the 3rd world. So it is quite difficult to reach here every people to bring with solar power car for SBJR Ultimate Aero Ltd. just because of different kinds of critical issue. But time are changing, world is now facing endanger of climate change, in this situation Bangladesh standing in front of the row for this kind of upcoming calamities. On the other hand; developed countries government are not quite sincere about this for the huge emission of CO2, but victims are Bangladesh like countries that are located in coastal area. It’s because the temperature are increasing day by day, similarly sea level comparatively raising more. In these severe circumstances of present climate, SBJR Ultimate Aero Ltd. already take significant initiative for the welfare of world environment that is within 2015 “SBJR” will introduce the solar power car commercially. Motor car are increasing relatively price of oil and CNG also getting higher in present days. So it creates the demand of solar car internationally, which helps to remove extra human created temperature & makes people life easier.
Vision
SBJR Ultimate Aero Ltd. is promising to give safe home on road with maximum safety, high mileage and prestige; providing economy car with highest environment friendly mechanism and sophisticated long lasting drive.
Mission
SBJR Ultimate Aero Ltd. assembles superior cars with best machineries collected from different part of the world. By using modern technology and advanced knowledge of our engineers SBJR Ultimate Aero Ltd. is promising availability of every car accessories you need & facing the challenges of fuel crisis in the edge with minimum fuel consuming ride using solar system.
Company Overview:
SBJR Ultimate Aero Ltd. will empower the South-Asian auto-mobile market specifically Bangladesh auto-mobile market through the application of cost leadership strategy and latest auto-mobile technologies. The company will start to export their auto within 2025. Which will be the South-Asian’s leading provider of cheapest auto mobile cars and services, by 2040. SBJR initial investment will be 200 cores where 100 comes from 5 partners. Another 100 will invest IDLC finance limited specially on our Structure, power station, also in Machineries & Technology on the 8% interest rate which SBJR have to provide within 2035(within 20 years).
Products/Services:
§ SBJR Ultimate Aero Ltd. will introduce two types of auto-mobiles in the market of Bangladesh:
i. Personal car (Mars): These types of car will serve the middle class families whose don’t have the ability to purchase a recondition brand personal cars (Honda, Toyota, Mitsubishi etc). So middle class families’ people can afford a brand new solar car (Mars) in this market with least price from SBJR Ultimate Aero Ltd. This type of vehicle will be the key particular of SBJR business.
ii. Commercial transportation: These types of auto-mobile will satisfy the need of commercial purposes like pickup, mini-bus, taxi-cab etc.
§ Services: SBJR Ultimate Aero Ltd. will offer their customers with different type of services such as 4 years warranty, insurance etc.
§ Purchasing options: SBJR Ultimate Aero Ltd. will introduce affordable auto-mobiles by offering attractive financing options for both personal and commercial purposes. This will enable middle class families to make purchases in small monthly installments, in the same way that a consumer would buy an automobile in the United States. The services provided here will enable, motivate, and educate people to start new businesses.
§ Raw materials: The key components of SBJR Ultimate Aero Ltd. auto-mobiles and from where the raw materials will be managed by SBJR Ultimate Aero Ltd. auto-mobiles:
| Name of Categories | Name of Parts | Price in Japan | Quality | Price in China | Quality |
| Auto Chassis system | Auto Axle, Clutch, Brake System, Steering System, Suspension Parts, Transmission Parts etc. | $40-300 | High | $25-200 | Medium |
| Auto Engine & Engine Parts | Automotive Engine | $5000-30000 | High | $1000-10,000 | Medium |
| Cooling System | $10-150 | Medium | $2-100 | Medium | |
| Fuel supply System | $100-200 | High | $60-150 | High | |
| Exhaust system | $400 - 500 | Medium | $200-300 | Low | |
| Auto Electrical Products | Auto motors , Auto sensors, Other auto electrical products etc. | $100-300 | High | $50-200 | Medium |
| Auto Accessories | Auto Electronics, Auto exterior accessories, Auto exterior accessories etc. | $20-200 | High | $30-200 | High |
| Solar Array panel | solar 3 set(750 cells)/car, maximum point power trackers(125 volt/set) (MPPT), charge controllers, associated accessories | $1500-4000 | High | $265-1500 | Medium |
So from the above comparison we can see that buying parts from China is more cost effective than Japan. Thailand & India is another easy source of cheap car parts. But the problem is there quality is not that much good. So at present we are going to buy parts from China to avoid risk. We will produce only body kits of the auto-mobiles. We will use battery made by Bangladesh companies. Then we just assemble all the parts those imported from China and our own raw materials in our production system.
§ Shipping Cost: If we bring parts through air then our cost will be $2.3/Kg. And if we bring through ship then our cost will be $1.6/kg.
§ Import Duty: Import Duty of Engine and other related parts= Tk.25/unit. In case of most of the parts import duty will actually depend on the weight. The range of import duty of these kinds of parts is Tk.5 to Tk. 25 per Kg. But this may also vary on the specialty of the parts.
§ Beta testing: SBJR Ultimate Aero Ltd. will provide its first production 30 auto-mobiles to the government employees for 6 months. All 30 auto-mobiles will give to different sectors’ government employees for personal usages for the beta testing. After the 6 months beta testing SBJR Ultimate Aero Ltd. will take corrective action if necessary and then supply its products and services in the market of Bangladesh for the common people.
§ Future projection: In Bangladesh within 2018 we (SBJR Ultimate Aero Ltd..) will try to make fulfill our local demand . Afterwards we must strive to penetrate in south Asian countries, by providing different test in transportation within cheapest rate among the existed competitor & make to ensure the Brand value. Apart from this within 2022 we will do research and develop some upgrade technology due to the necessity of technological development like wind power technology. This is because this type alternate power helps the world to reduce pollution, also more effective rather than today’s car, behind this reason the it helps to reduce up to 95% fuel consumption which will Be great relief for our consumers.
Technology
According to the strategic plan SBJR Ultimate Aero Ltd. will introduced solar car first time commercially in Bangladesh. Beside this in Bangladesh SBJR Ultimate Aero Ltd. also doing their further research on wind energy, this is because whenever car running on the road wind will come automatically, but sun doesn’t stay all-time in the surface. Therefore, if solar reduced up to 50% cost on the other hand almost 90% oil cost can easily reduced by wind energy.
Additional research and development
Ø Emission Standards: With the help of automotive technologies, a check can be put on the emission of harmful pollutants such as NO2, particulate matter (PM) or soot, Carbon Monoxide (CO) or volatile hydrocarbons. As a result, it would be easier to lower down the pollution level and save the planet from global warming.
Ø Automotive Engine: It was human perseverance and determination to build something better and powerful that has finally paid off towards achieving the means of faster and more comfortable journey today.
Ø Suspension technology: The suspension system comprises of springs, shock absorbers and linkages. This system connects the vehicle to its wheels.
Ø Safety technology: SBJR Ultimate Aero Ltd. will lead the nation in road safety, with the introduction of seat belts, the roll out of drink driving technology and random drug testing; also give the Lane Departure Warning etc.
Ø GPS Technology: Built in road map of Bangladesh will be added in the car technology for the driver.
Intended Market environment
In view of the fact that a populated country in the South-Asian continent SBJR Ultimate Aero Ltd. is mainly focus on middle class people who are leading their life very simple. The main reason behind the selecting of middle class people is to add some extra assistance in their daily life which made their life easy, comfortable and colorful, like; save time, cost consumption, mental satisfaction etc. which will remove their daily monotony.
Distinguish between User and Consumer
Meanwhile SBJR Ultimate Aero Ltd. has decided within 2022 years to2025 years they will expand their business in South-Asia, by providing good looking cheapest among the competitors, that’s why In Bangladesh SBJR Ultimate Aero Ltd. will do their business especially in Bangladesh with focusing on business to consumer strategy, which means end user. Those people will directly use this car for their personal or business purposes. So in Bangladesh no existence of dealer, wholesaler, or commission broker of auto-mobile enterprise will happen in here.
Target market
The target market of SBJR Ultimate Aero Ltd. is to make the life style more flexible & easier in the middle class people class people in South-Asian continent. This helps the people to enjoy the modern lifestyle feelings in their daily life. Man and woman are both are our consumers. That’s why we are mainly focusing on the middle class people of Bangladesh firstly. At first our target market size will be small like we only want to capture 10% of market shares of the current auto-mobiles user with in 2016.
End user benefit
SBJR Ultimate Aero Ltd. has plan to provide lot of incentives for the end user basically who are like to buy the car from SBJR Ultimate Aero Ltd. Such kinds of benefits are:
§ Installment advantages
§ Directly handle the Brand new solar car
§ To provide an overview & indication of direction of car
§ Home service and repair
§ Available cars parts in any outlet
§ Extra solar power board
How & why end user buy the product
Moreover there is no existence of Business to business strategy that’s why SBJR Ultimate Aero Ltd. will start their business in BANGLADESH initially by 7 divisional big showrooms. For ex; Dhaka, Chittagong, Khulna, Sylhet end user can easily buy their preferable solar car from there.
Projected needs
For establishing a successful automobile company in Bangladesh, needs too things (support) from inside & country & also from government. These are,
Ø Huge capital & partners
Ø Government support & incentives
Ø To get the surety about raw- material of automobile and solar kits
Ø To get the specialist & also efficient worker from abroad & country
Ø Rapid and positive respond among the user before the penetration in the market.
Market opportunity
§ There is no local competitor (manufacturer) inside the Bangladesh, only the some branches are existed only in Dhaka city. This helps to SBJR Ultimate Aero Ltd. particularly in Bangladesh can emphasize to do the monopoly business theory.
§ Apart from this, as a Greenfield investment by negotiating with government SBJR Ultimate Aero Ltd. has the best possibility to get government subsidy & incentives.
§ The main thing in Bangladesh is most of the people are middle earners now established In Bangladesh after liberation war, which helps to do their business spontaneously.
§ Whenever lot of numbers of people working here automatically it will marketing man to man process which reduce the cost significantly.
For Business to Consumer Market:
Demographically
§ Age: 25to above age’s Middle class type people that can be both man and women is the main target market.
§ Income level: Otherwise couple of recent years ago Bangladesh people are continuously increasing their per capita income; despite to become poor many people are changing their life and also improving. People who are capable to earn yearly tk. 420,000 to tk. 1,000,000 they are the main target market.
§ Gender: Women’s education ratio is also increasing. So after completing the graduation, young men or women like to do job or started their own business, find out for them a regular basis income source. So that time people like this kind of vehicle with in low maintaining cost which is become planned by SBJR Ultimate Aero Ltd.
Psychologically
SBJR Ultimate Aero Ltd. will provide such kind of facilities which really helps consumers in too many ways. For ex;
ü Cheapest rate solar power energy facilities.
ü Introduced firstly Bangladesh people a brand new solar car.
ü Tries to brake the shackled tradition
ü To get extra ordinary design car body & solar.
ü End users can directly any type of available/ existed model car.
ü Hour’s repair and showroom services, also 4 Years warranties.
Behavioral:
SBJR Ultimate Aero Ltd. will look for Middle higher, middle lower, and middle class people, where 80% sales comes from themselves & 20% come from others(higher& lower class people). By given an acme solar car facilities SBJR Ultimate Aero Ltd. try to grab this people as a loyal user.
Competitors Profile
There is no direct competitor for us inside Bangladesh as we are manufacturing cars but some competitor may reveal in such case:
Foreign Competitors
In Bangladesh, Toyota has already captured lion shared of car importers. Nissan, Mitsubishi, Honda, Mazda & BMW are also striving to get into Bangladesh. In this situation, those companies may not have their HQ office in Bangladesh but their market would be hampered significantly.
Car Importers
People who are directly buying re-conditioned cars from abroad and selling these in Bangladesh they will be affected for our car manufacturing operation in Bangladesh. Car importers will lose their re-conditioned car market when the citizen of Bangladesh would buy brand new car with low cost.
SWOT Analysis
Strength:
£ Cost Leadership: As SBJR Ultimate Aero Ltd. will assemble cars in Bangladesh so it does not have to pay 400% imported taxes on every car. In that case price would be 4x less than the imported cars.
£ Customer Service: Providing superior service to our clients and customers, buyers’ satisfaction would be easier to achieve because other car importers do not provide free car servicing.
£ Car Accessories & Spare parts: After buying a car, owners think a lot that the accessories of their car is available or not. As SBJR Ultimate Aero Ltd. Bangladeshi brand, so owners won’t feel any problem about supply of SBJR Ultimate Aero Ltd. cars’ accessories & spare parts.
£ Fuel consumption: Price of fuel increasing day by day, as SBJR Ultimate Aero Ltd. solar car will be using less fuel to gain the initial speed and then 0% fuel consumption and long mileage so it would be our core competency.
£ New technology: SBJR Ultimate Aero Ltd. is introducing the unique latest technology in the car industry of Bangladesh. So that can be a competitive advantage over our competitors.
Weakness:
£ New Brand: SBJR Ultimate Aero Ltd. is a new car brand for customers so achieving loyalty could be the challenge.
£ Durability: Comparing the quality of Japanese cars, SBJR Ultimate Aero Ltd. may not be satisfactory.
£ Car Technicians & Engineers: Skilled Human Resources for such kind of operation is highly recommended. SBJR Ultimate Aero Ltd. may have scarcity of motor mechanics.
Opportunity:
£ Green Field Investment: SBJR Ultimate Aero Ltd. will be the first car manufacturing company in Bangladesh. In this car industry in Bangladesh there are plenty of scopes to spread out and capture the 40% market of car sales.
£ Foreign Currency: Surplus production can be exported to abroad to earn foreign currencies for Bangladesh.
£ Developed machine engineering: There are favorable resources in Bangladesh but due to no scope for blooming resources like motor experts are leaving their own nation and doing paid jobs in other nation. SBJR Ultimate Aero Ltd. could recruit them and make a skilled manpower on motor technology.
£ Tax Benefits: It’s a new industry in Bangladesh, so we might get tax rebate.
Threats:
£ Road construction: Poor condition of highway road car may not be lasted long as expected.
£ Government Rules & Regulation: Surplus cars are responsible for traffic jam, due to traffic jam & increased numbers of cars it may be tough to get permission to produce economic scales of cars.
£ Threats of Importers: Existing car importers could be settled a syndicate to kick out SBJR Ultimate Aero Ltd. from the car business. Importers might bribe the authority to create barriers for SBJR Ultimate Aero Ltd. operation.
£ Easy to copy: As we are only buying car machineries and assembling those machines to build a car so it’s very easy to imitate.
PEST Analysis
Ø Political: Since SBJR Ultimate Aero Ltd. operates in Bangladesh market which is politically biased, so it needs to pay close attention to the political climate but also laws and regulations while also paying attention to regional governing bodies. Laws governing commerce, trade, growth, and investment are dependent on the local government as well as how successful local markets and economies will be due to regional, national and local influence.
Ø Economic: Right now the economical situation is not stable because there is an economic recession due to the bubble blast in the share market of Bangladesh. So the purchasing power of the target market is decreasing day by day. This will affect the growth rate of SBJR Ultimate Aero Ltd. There is also a high inflation rate exist in this current economy. This will also affect the SBJR Ultimate Aero Ltd. Currency fluctuations can equate to higher or lower production cost for SBJR Ultimate Aero Ltd. vehicles which in turn affect profitability. It influences where capital investment will develop and prosper.
Ø Social: Undoubtedly, the beliefs, opinions, and general attitude of all the stakeholders in a company will affect how well a company performs. This includes every stakeholder from the CEO and President, down to the line workers who screw the door panel into place, from the investor to the customer, the culture and attitude of all these people will ultimately determine the future of a company and whether they will be profitable or not.
Ø Technology: SBJR Ultimate Aero Ltd. is ahead of the game in the technology field. The foundation of the company’s growth is depending on a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D”.. In all, an automobile manufacturer must change, adapt, and evolve to stay competitive in the automotive game and this is exactly what SBJR Ultimate Aero Ltd. will do with its’ rapid growth, and extensive research and development.
Ø Environmental: It’s a great threat for environment to build a car. To manufacture car lots of pollution is to be emitted in the environment. Plenty of CO2 and wastes are gathered so, SBJR Ultimate Aero Ltd. will be setting up environmental protected waste recycling machineries to reduce the danger of nature.
Uniqueness
The uniqueness of our product is we are using the Sun light energy in our product. This technology consumes the least amount of fuels which is the main requirement of the general people or our target market. So this can give us a competitive advantage over our rivals. We are just import parts and assemble those to complete a finished product which is easy to copy for our rivals. But the technology that we are using that means our expertise and solar energy technology is not much easy to copy.
Competitors’ reaction
The competitors will react immediately when we will launch our product. Because the market shares of our competitors will decline due to the cost leadership strategy that we are following. They will try to change their current strategy to grip their market shares. Some giant competitors may come forward in the sector of auto-mobile manufacturing. They can copy our technology but it will take a lot of time to go for production. That will be enough time for us to capture the maximum market shares of our competitors. In that time when our competitors go for production we can able to launch our next technology which gives us the advantage that gives not only maintain our satisfaction level of our existed market shares but also capture more new customers.
Industry
Current trend: In 2010 the tax amount was 400% on imported car. Currently demand for auto-mobiles is very high but the supply of car is not much because of tax in Bangladesh market. General people cannot afford a normal recondition old model car because of tax amount. Right now the industry is declining because off tax imposed on imported cars and the high price of fuel. General people want a good condition car in low price with a high mileage.
Previous trend (2006-2009): Recently fluctuating orders for the country's export-dependent garments industry is depressing sales of vehicles. According to previous data sales in the first four months of 2009 halved on the same period last year, after the first three months of 2008, when Navana sold more cars - 300 models - than in all of the previous year. Best selling models at Navana have included the Avanza 1.5L, which retails at US$22,200 in 2008.
Car dealers such as Navana see a solid long-term future beyond the current blip in sales. That is perhaps understandable given Bangladesh is predicted to post 5% GDP growth in 2009, according to the World Bank, despite the global recession. Most of the Toyotas on Bangladesh's clogged roads, however, are second hand, reconditioned imports shipped from Japan. Toyota has 80% of the market share. Toyota's dominance is likely to continue. The ubiquity of the brand means re-sale is easy, while "every roadside mechanic in the country knows how to fix a Toyota". Toyota tunes extra-rugged vehicles on a special assembly line for the market in south Asia, where highway quality remains patchy.
Bangladesh's preference for reconditioned cars is making life harder for brands trying to shake the Toyota stranglehold. Sales are down 20% so far in 2009 at Dhaka-based Multimode, which gets the bulk of its sales from supplying the fleets of government and multinational companies such as HSBC and Unilever in Bangladesh. Multimode sold 150 vehicles in 2008, 44 of them to the country's Ministry of Establishment, which runs its civil service.
Bangladesh's preference for reconditioned cars is making life harder for brands trying to shake the Toyota stranglehold. Sales are down 20% so far in 2009 at Dhaka-based Multimode, which gets the bulk of its sales from supplying the fleets of government and multinational companies such as HSBC and Unilever in Bangladesh. Multimode sold 150 vehicles in 2008, 44 of them to the country's Ministry of Establishment, which runs its civil service.
Duty on auto imports remains hefty in the country and fear a possible increase in June's budget could further dent sales in 2009. It was 137%. Meanwhile, leading Dhaka retailer Rangs Motors Ltd has ditched China brand Geely in favor of India's Mahindra. Geely quality have been impressed by the "durability" and fuel efficiency of the Mahindra Bolero SUV: 100 vehicles have been sold since early 2008. India has no favorable trade terms with its neighbors. That means the 2.5L Bolero's 4 million Taka (US$59,500) price tag is inflated by 200% tax.
But local purchasing power is "increasing like crazy," that means people are more interested to buy a personal cars for their family. So the local demand of the car increasing day by day.
Business Model
Marketing and Sales Strategy
SBJR Ultimate Aero Ltd. projected marketing product in Bangladesh is solar car. Among the thousand [1000] people only 2 people are capable to use car in Bangladesh. [According to Wikipedia 2008]
However, these pre-financing solar power car business plans will be expensive. Furthermore, customers will have to pay half of their installments before receiving any car. SBJR Ultimate Aero Ltd. recognizes that this will initially dissuade many competitors rather users.
v The layout of basic marketing and sales strategies are given below:
| Category: | Strategy: |
| Target Market | Middle class people who are able to with incomes between tk. 4,20,000 to tk. 10,00,000 yearly with an emphasis on male & female both between the ages of 25 to above |
| Positioning Statement | The best looking and with a solar engine car Initially penetrate in Bangladesh & in future it will spread in South Asia. |
| Offering to customers | Add two lower-priced models and one higher priced model with different colors and facilities. |
| Price Strategy | Car price 25% less than our closest competitor |
| Distribution | Divisional showroom across the country which directly established by SBJR Ultimate Aero Ltd. like e.g. Dhaka, Chittagong, Rajshahi, Sylhet etc. |
| Sales Strategy | Expand by 5% for this product line, hire a national account manager |
| Service Strategy | Available through all major box chains, beside its divisional showroom. Ex: Coxabazar Nowakhali, Comilla, Dinajpur, Jossore, Shirajgonj etc. |
| Promotion Strategy | Develop a new campaign that focuses on the positioning, emphasize précised price and designer look & facilities |
| Marketing Research | Conduct customer audit and identify new market opportunities |
Distribution Strategy
Ú The community center [warehouse] will be constructed beside the administrative office of SBJR Ultimate Aero Ltd. in mongla, which is located at Khulna & that will be known as distribution hub.
Ú Most of the components of the solar electric kits will be shipped by sea from suppliers in the china or Japan to the Indian Ocean port of Mongla, and then trucked overland to factory.
Ú SBJR Ultimate Aero Ltd. will also attempt to identify reliable suppliers in China to reduce its dependence on overseas shipping upon arrival in Mongla.
Ú When user have satisfied their payment schedules, they will be cordially thanked for their business, and invited to pick up their car from the Divisional showroom of Bangladesh.
Ú At this time, SBJR will provide written instructions on how to install and maintain their brand new car systems. During their payment period, and throughout their duration of ownership, all SBJR Ultimate Aero Ltd. customers will be invited to attend free educational workshops on using, maintaining, optimizing, and expanding their solar car electric systems.
Marketing budget
SBJR Ultimate Aero Ltd. mainly wills focus on online marketing. By how they can able to reach all over the world and send a message that in near future SBJR Ultimate Aero Ltd. will coming their country with solar power car, which give the world a new dimension for going to get perfect world, because world now endanger in pollution, and green house effect, it will give the world a green & safe earth.
The first year marketing budget before penetration is approximately tk.8000000 up to opening ceremony. From next years it will be reduced at 15% yearly subsequently consecutive four years.
| Item | Date Completion | Cost | Measure of Success |
| Website build | Mid 2014 | Tk. 10000-15000 | Number of hits at 2,000 per month |
| Paid search engine advertisement to increase exposure | Last 2014 | Tk. 500000 | All sites listed carrying web link |
| Cost to pressure test operations | Last 2014 | Tk. 300000 | Smooth performance of B&C |
| Color brochure printed and distributed throughout region | April 2015 | Tk. 200000 | All sites carrying information in Divisional location |
| Advertisement in online and other media & travel magazines | From the march of 2015 | Tk. 1500000 | Monthly slot secured for five months. Advertorial accepted |
| Newspaper advertisement for local paper | 16th April up to june 2015 | Tk.1,2000 | To increase the sell |
| Site hosting costs | 1st June | Tk.165000 | Secured and feature on first page of Google search |
| Advertising and editorial in New year Program | 1th January | Tk. 2500000 | Feature article |
| Grand Opening | 1st june | Tk. 400000 | 200 people in attendance |
| TOTAL | | Tk. 5700000 | |
Pricing Strategy
§ SBJR Ultimate Aero Ltd. will price their solar as low as possible while still yielding an attractive profit. Prices for solar car have been set at the higher end of the market as the User base is seen as in the mid to higher socioeconomic sector.
§ Pricing scheme is based on a type based per solar car, which includes Warranties. Prices for festival are 10% lesser than normal, and when government like to buy more a discount of 15% will be applied.
§ As there is not a high level of seasonality for customer coming to the region prices are set the same year round except for special events (Christmas/New Year/Eid/Pooja) when a 10% surcharge is applied. So cost per car is given below;
| SL no. | Particulars | | Amount (BDT) |
| 1 | Auto chassis system | | 12000 |
| 2 | Auto parts & Engine | | 434000 |
| 3 | Auto electrical product | | 12000 |
| 4 | Auto accessories | | 12000 |
| 5 | Solar battery maintainer | | 20000 |
| 6 | Shipping cost, Import duty, Govt. tax, Assembling cost, Warehouse & Showroom maintenance , Marketing, Distribution & promotion cost,& miscellaneous etc. | | 110000 to 135000 |
| | Total cost | | 600000/625000 |
The price list (including VAT) for 2015-16 has been set at:
| Type of Car | Amount /car |
| Personal solar (mars) | tk.750000 |
| Commercial solar | tk. 1200000 |
Warranties
SBJR Ultimate Aero Ltd. become delighted to provide 4 wears warrantee, within this any kind of unavoidable circumstances if happens SBJR Ultimate Aero Ltd. will do everything according to their promising condition. Beside the car SBJR Ultimate Aero Ltd. will get an extra solar power board for any kind of accident or emergency they can they can able to use this to recover difficulty or critical circumstances.
Product/operating requirement:
¤ Land requirement: We will take lease 100 bighas near by the port which is situated by the river. Because if we go for purchasing it will cost us a lot but in the other hand leasing is much less financing that will help us to reduce the amount of startup investment money. We are legally leased the physical premises of our plant from the government.
¤ Location selection: Our car manufacturing plant will be in the Mongla port, Khulna, Bangladesh. By select a remote area we can get some advantage such as the transportation cost will low in case of importing, the land cost will low, we can get different subsidies from the government due to develop the infrastructure of that area, also for enjoying the tax holidays or advantages we select this remote area. The size of the manufacturing plant will huge.
¤ Waste disposal plant: we can use the river for wastes after refining. So we have to set a complete waste disposal plant.
¤ Warehouse: There will be two warehouses, one for the inventory (150 car parts) and another for the final finished goods (100 auto-mobiles).
¤ Manufacturing house: There will two manufacturing house, one for personal auto-mobiles and another for the commercial auto-mobiles.
¤ Employee quarters: We will create accommodations for the employees of our companies for reducing the immobility of skill labor problem or barrier.
¤ Energy plant: There will be an energy plant own by us for the (24*7) hour’s support of electricity. So there will be a continuous production.
¤ Manufacturing process: The manufacturing process is not like so much easy but also not so hard to perform by our work force.
¤ Availability of Suppliers: The source of supply is available for us. We will order our requirements about the parts and our supplier will deliver the order right way. Our main suppliers are GkL ltd, SU-NA-SI; True parts ltd from China etc. and main suppliers from Bangladesh is Rahimafrooz ltd.
¤ Machineries: We have a capacity or necessary machineries and tools to support of producing economic of scale. So that our production cost per unit will be low.
Product life cycle
Management and personnel
This is the business structure of the SBJR Ultimate Aero Ltd.
Intellectual Property
The main objectives of the Import Policy are given bellow:
(a) To make Import Policy Compatible with the changes in the world market that have occurred as a result of the introduction of market economy and signing of the GATT Agreement
(b) To simplify the procedures for import of capital machinery and industry with a view to promoting export
(c) To ensure growth of the indigenous industry and availability of high quality goods to the consumers at a reasonable price.
Achievement of the aforesaid objectives will depend on the help and cooperation of other relevant Ministries, Divisions of the Government and the Trade Organizations in the private Sector.
| Proposed Logo for Trademark |
Trade License is being introduced in Bangladesh under the City Corporation Taxation Rules, 1983 . It is issued when any entrepreneur applied through the license form . The process is managed by the City Corporation or city council where the business exists. A license is issued exclusively in the name of the licensee and such license is not transferable. The licensee shall not use the license for any other purposes, except for the purpose and nature of profession, trade or calling it was issued.
A renewed Trade License is provided by the concerned staff of the zonal taxation office. A fee for trade license has to be deposited at any Bank as indicated on the Trade License form.
ü License Name: Trade Marks Registration
ü Licensing Body: Department of Patents, Designs & Trademarks (DPDT)
ü License Name: Trade License for a Manufacturing Firm
ü Licensing Body: All City Corporations, Municipalities & Union Parisads
ü License Name: Import Registration Certificate (IRC)
ü Licensing Body: Office of the Chief Controller of Imports & Exports (CCI&E)
We will do all these necessary stuffs for protecting our intellectual property. SBJR Ultimate Aero Ltd. will conduct a research on wind energy power to run a car. So we will take all steps to protect this technological research for specific time line.
Regulations/Environmental Issues
§ Ecological concern: Through warehousing & manufacturing, waste pollutes the environment. So that we will keep our warehousing in the far-off area to assenting impacts of ecological concern. Due to waste pollution we have to setup waste disposal plant that added us an extra cost to us.
§ Political issues: For the citizens of Bangladesh, we have to face some political factor that might be obstacle for forwarding our business. In addition, the political conditions are not stable, which is badly needed for long-run performance of business.
§ Climate issues: As plan to compose solar configuration in car, some problems may arises through climate changes. Because, the solar system will run by consuming energy from sunlight.
§ Duty fee: Income tax on imported auto-mobiles would be highly imposed by government that will affect positively to draw our prospects.
§ Land dealing: As a car manufacturing company, some large places will need to meet our requirements. But, here might be quite harsh to deal with our requirements as workplace & storing.
§ Lack of knowledge about the auto-mobile industry among the general people will affect negatively.
§ New technology adoption tendency also is an important factor that can affect the prospects of our firm.
Critical risk factors
Critical risk faced by SBJR Ultimate Aero Ltd. in present and future:
¥ Investment requirement is high for our company. So it is a risk for us. So we are going to solve this problem by offering the investor a high return.
¥ Capital requirement for future expansion is also high. So this is also a big risk for us in near future. To solve this problem we will enter in the primary share market and secondary share market of Bangladesh.
¥ Currency fluctuation is a great risk which will add more cost for our industry. If there is any kind of fluctuation in currency between Bangladesh and imported country that will affect our production cost. By the previous statistical data, every time there is depreciation in value of taka. If that is happen it will affect negatively toward our industry production cost because of paying more for the same product in the value of taka. For hedging this risk we are going to use different types of financial derivatives tools.
¥ Skilled Human Resources immobility is also risk for us. SBJR Ultimate Aero Ltd. may have scarcity of motor mechanics. So we are going to solve this problem by arranging accommodation facility for them.
¥ Surplus cars are responsible for traffic jam, due to traffic jam & increased numbers of cars it may be tough to get permission to produce economic scales of cars. For solving this problem we will go for export our car in the South Asian market so that we can produce economic scales of cars and minimize our per unit cost.
¥ Existing car importers could be settled a syndicate to kick out SBJR Ultimate Aero Ltd. from the car business. Importers might bribe the authority to create barriers for SBJR Ultimate Aero Ltd. operation. We will go for a very hard and authoritarian agreement with the authority. So we can do our business legally.
¥ As we are only buying car machineries and assembling those machines to build a car so it’s very easy to imitate. But the technology we will use is difficult to copy. For solving this risk we will setup a very rich and strong research and development department which will responsible for the continuous improvement in the technology.
¥ SBJR Ultimate Aero Ltd. is a new car brand for customers so achieving loyalty could be the challenge. To solve this risk we are using the rapid scheme strategy for making a strong marketing plan.
¥ Unstable economical situation is critical risk for us. Our target market income level may be decrease due to recession. To solve this kind of future risk we are offering our customers many financing option. So that, they able to purchase a car in credit.
Startup schedule
At first we will do all the necessary agreement with the authority. Then we will search for the investment amount for the project. When we have enough money to invest in the business plan, we are going to lease our land for the project by the necessary lease agreements. Then we will go to contract to our suppliers. Then we will take necessary step to build our plant buildings and develop the infrastructure of the plant. After that we will recruit the best management and personal according to our requirements. Then we will order our necessary parts for the auto-mobiles production. After all of this we will go for our production of first solar auto-mobiles in the history of Bangladesh auto-mobile industry.
Financial Projections
Distribution of Investment
100 cores taka will be contributed by 4 partners of SBJR Ultimate Aero Ltd. This contribution margin is given below;
| No. | Investors Name | Investing Money | Contribution Margin |
| 1 | Saimun (S) | 250000000 | 25.00% |
| 2 | Bappy (B) | 250000000 | 25.00% |
| 3 | Joy (J) | 250000000 | 25.00% |
| 4 | Robin( R) | 250000000 | 25.00% |
Capital requirement & investment
Usually automobile industry deals with huge capital needs. For establishing perfectly this solar car industry SBJR require approximately 500-700 cores taka which is only for doing business in Bangladesh. But here we will got huge opportunity ,Just because they don’t have to buy the land, that’s why our initial investment would be around 200 Cores ,where 100 cores comes from four partners & another 100 comes from Financing Company or bank.
The initial investment of SBJR Ultimate Aero Ltd. is given below:
| SL no: | Investment sector | Amount (BDT) |
| 1 | Land leasing 2015-2040 (for 25 years) | 20 core |
| 2 | Factory & Employee accommodation infrastructure | 35 core |
| 3 | Power station | 20 – 25 core |
| 4 | Machineries & Technology | 40- 50 core (45 app.) |
| 5 | Insurance expense (20 years) [200000 lacks yearly in 5 companies] | 2 cores |
| 6 | Contractual agreement (with personnel & Auto accessories providing companies inside Bangladesh) | 13-15 core |
| 7 | Showroom establishing(rent) & Service center cost | 5 core |
| 8 | Marketing, distribution & promotional investment before penetration(selling) | 8 core |
| 9 | Car carrier vehicles (8-10 vehicle per price 2 core) | 16-20 core |
| 10 | Cash for Running operation | 25 core |
| | Total | 200 Core (approx.) |
Forecasted Income Statement
| Year: | 2016 | 2017 | 2018 | 2019 | |
| Turnover: | | | | | |
| Regular | 675,000,000 | 1,050,000,000 | 1,800,000,000 | 2,025,000,000 | |
| Special (Occasional) | 67,500,000 | 135,000,000 | 162,500,000 | 202,500,000 | |
| Net Turnover | 742,500,000 | 1,185,000,000 | 1,962,500,000 | 2,227,500,000 | |
| Expenses: | | | | | |
| Raw material expense (54%) | 400950000 | 639900000 | 1059750000 | 1202850000 | |
| Insurance expanse | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | |
| Power station maintenance | 1,250,000 | 1,250,000 | 1,250,000 | 1,250,000 | |
| Stuff & employee expenses | 40,000,000 | 40,000,000 | 40,000,000 | 40,000,000 | |
| Marketing Cost | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |
| Maintenance Cost (disposal plant, manufacturing plant, accommodation) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |
| Accumulated Depreciation | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |
| Lease rent | 8,000,000 | 8,000,000 | 8,000,000 | 8,000,000 | |
| EBIT | 91,300,000 | 294,850,000 | 652,500,000 | 774,400,000 | |
| Financial Expenses (8%) | 58,000,000 | 58,000,000 | 58,000,000 | 58,000,000 | |
| EBT | 33300000 | 236850000 | 594500000 | 716400000 | |
| Tax Exp. (0%) | 0 | 0 | 0 | 0 | |
| Net Income | 33300000 | 236850000 | 594500000 | 716400000 |
Break Even Analysis
For 1st year:
Fixed cost: 308,250,000
Variable cost: 400,950,000
Net Turnover: 742,500,000
CM: 1-(400,950,000/742,500,000)
=46.00%
Break Even point: (308,250,000/0.46)
= 670,108,696
Unit sale estimated: 670,108,696/750,000
=894 cars
According to 1st year Break Even Analysis, we have to sell 895 cars at least. After that we will get profit.
For 2nd Year:
Fixed Cost: 308,250,000
Variable cost: 639,900,000
Net Turnover: 1,185,000,000
Contribution Margin: 1-(639,900,000/1,185,000,000) =46.00%
Break Even Point: 308,250,000/.46= 670,108,696
Unit sale estimated: 670,108,696/750,000= 894 cars
According to 2nd year Break Even Analysis, we have to sell 894 cars at least. After that we will get profit.
For 3rd year:
Fixed Cost: 308,250,000
Variable cost: 1,059,750,000
Net Turnover: 1,962,500,000
Contribution Margin: 1-(1,059,750,000/1,962,500,000) =46.00%
Break Even Point: 308,250,000/.46= 670,108,696
Unit sale estimated: 670,108,696/750,000= 894 cars
| Year: | 0 | 1st | 2nd | 3rd | 4th |
| Cash flows: | -1,000,000,000 | 33,300,000 | 236,850,000 | 594,500,000 | 716,400,000 |
| Cumulative Cash flows: | -1,000,000,000 | -966,700,000 | -729,850,000 | -135,350,000 | |
According to previous 3 years Break Even Analysis, we have to sell at least 894 cars every year. After that we will get profit.
So, payback period: 3 + (135,350,000/ 716,400,000)
= 3.2 years
According to payback period, we need to sell at least (3.2*894) = 2861 cars to reach at the Break Even point.
So, our Break Even Sale Point should be (2861*750,000) = 2,145,750,000 tk.
Questionnaires
1. Do you a car user?
o Yes o No o Sometime
2. Is car has become needs or hobby for a person present days?
o Strongly agree o Agree o Moderate o Disagree o None
3. As an end user what type of car do you prefers most?
o Reconditioned car o Brand new car o None
4. What is the primary need from a car when you are customer?
o Swift and comfortless o Design o Fuel efficiency o Technology system
o None
5. In today’s world what is the highly expectation from a car in Bangladesh?
o Fuel efficiency o durability o Speed o Technology system o safety system
o None
6. What is the primary barrier for a customer when they want to buy a car?
o Price o Imperfect design/color o Shortage of car/accessories o Maintenance
o Tax
7. For how long do you like to get a car warrantee?
o 1 years o 2 years o 3 years o 4 years o None
8. As a customer how much price would you like to prefer most?
o 100000-500000 o 500000-1000000 o 1000000-2000000
o 2000000-above
9. What do you know about solar car?
o Good o Neutral o Bad
…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..
10.Do you think that is it applicable in the present situation of Bangladeshi market?
o Strongly agree o Agree o Moderate o Disagree o None
Bibliography
www.winstonsolar.org
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