Business Plan: Bhromon

BANGLADESH UNIVERSITY OF PROFESSIONALS

Term Paper
Business Plan: Bhromon
Course: Entrepreneurship
EPD3501

SUBMITTED TO
Asst. Prof. Md. Ahasan Uddin
Faculty of Business Studies (FBS)

SUBMITTED BY
SADIA AFRIN ANIKA B17231017
MUSHFIQUR RAHAMAN B17231033
RAFI NIAZ KHAN B17231047
AHMED SIYAM BIN FERDOUS B17231073

Program: BBA (General) Section: A Batch:

2017 Dept. of Business Administration-
General

29th April, 2019, Monday

 ACKNOWLEDGEMENT
At the exceedingly beginning we would like to convey our deepest gratitude and humble
submission to the Almighty Allah for whose blessing we were able to accomplish the assigned
task with in the deadline.
We would like to extend full gratitude to our honorable faculty Asst. Prof. Md. Ahsan Uddin,
for providing us with necessary instructions and guidelines for the successful completion of this
term paper.

We would also like to express our deepest appreciation to all those who provided us with the
possibility to complete this report.

We sincerely believe that the road to improvement is never ending. Hence, we shall look forward
to and gratefully acknowledge all suggestions received for our future endeavors.

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Letter of Transmittal
April 15th, 2019
Md. Ahsan Uddin
Assistant Professor
Department of Business Administration-General
Bangladesh University of Professionals (BUP)

Subject: Letter of Transmittal for submission of term paper

Respected Sir,

With great pleasure, we are submitting our term paper on the topic “Business Plan: Bhromon”.
While preparing this report, we have made sure to follow the given instruction and guidelines,
which we are immensely grateful for.

This report has been completed by the experiences we have achieved during our research. It will
be helpful to enlighten our future and knowledge well. We hope this report will be informative as
well as comprehensive.

We express our utmost gratitude to you for dedicating your valuable time, expert guidance and
support. We shall be pleased to answer any sort of query you may have regarding this topic.

We hope with great anticipation that you would like and accept our term paper, looking forward
to your co-operation.
Thanking you,
On behalf of the group,

-------------------------------
Sadia Afrin Anika
Roll Number: B17231017
Section: A, BBA General 2017

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 EXECUTIVE SUMMARY

As a requirement of this course “Entrepreneurship” this report has been prepared on the proposed
topic “writing a business model”. The objective of this study is to design a business model which
will be sustainable as well as profitable.

This report shows the business model of a ride sharing app named Bhromon. For the purpose of
this report, we have done market research and found that Uber Moto is the market leader with
45% market share. The next in position is Pathao with 40% shares.

Bhromon will be targeting those areas which still do not have bike sharing services. As Bhromon
will be supplying riders with bikes and also help maintain them, it will become the first ride
sharing service available in those areas. Other than that, this company will also provide
investment opportunity to invest on the bikes that are used by the company.

Our marketing campaign will be focusing on road safety. The aim of this campaign would be
sending a social message to people in order to make them aware of the traffic laws and creating
mass awareness.

The mission of Bhromon is to provide the safest rides. And the vision is to become the market
leader 10 years. Keeping this in mid, our marketing strategy will be based on cost leadership.
Which means we will be providing our services at a cheaper rate compared to our competitors.

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TABLE OF CONTENTS
EXECUTIVE SUMMARY ................................................................................................................................. iii
1.0 RESEARCH METHODOLOGY .................................................................................................................... 1
2.0 OBJECTIVE OF THE STUDY ....................................................................................................................... 1
3.0 STARTUP OVERVIEW ............................................................................................................................... 2
4.0 SITUATION ANALYSIS .............................................................................................................................. 3
4.1 SWOT ANALYSIS OF BHROMON .............................................................................................................. 3
4.2 PESTEL ANALYSIS OF BHROMON ............................................................................................................ 4
5.0 COMPETITOR ANALYSIS .......................................................................................................................... 5
6.0 COST ANALYSIS OF COMPETITORS.......................................................................................................... 6
7.0 BRAND DETAILS ....................................................................................................................................... 7
7.1 MISSION AND VISION OF BHROMON ..................................................................................................... 7
7.2 BRAND PERSONALITY OF BHROMON ..................................................................................................... 8
8.0 TARGETING AND SEGMENTATION .......................................................................................................... 9
8.1 INVESTORS AND FUNDRAISING .............................................................................................................. 9
8.2 TARGET MARKET .................................................................................................................................. 10
8.2.1 RIDERS ............................................................................................................................................... 10
8.2.2 USERS ................................................................................................................................................ 11
9.0 TARGET AREA ....................................................................................................................................... 12
10.0 MARKETING CAMPAIGN .................................................................................................................... 13
10.1 ROAD SAFETY CAMPAIGN .................................................................................................................. 13
10.2 BTL CAMPAIGN .................................................................................................................................. 14
10.3 ATL CAMPAIGN .................................................................................................................................. 16
11.0 CAMPAIGN BIG IDEA .......................................................................................................................... 17
12.0 BUDGETING AND FEASIBILITY ............................................................................................................ 18
13.0 CAMPAIGN MATRIX ........................................................................................................................... 20
14.0 TIMELINE ............................................................................................................................................ 21
CONCLUSION.............................................................................................................................................. 21

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1.0 RESEARCH METHODOLOGY
The data mainly has been collected through the secondary source that is the websites of Uber,
Pathao, Shohoz and other websites like Obhai to extract more information about ride sharing
service. The operating procedures and management structures of these ride sharing services were
properly and extensively analyzed. Though most of the information were collected through
websites, some of the information came directly from their existing customers.

2.0 OBJECTIVE OF THE STUDY

In this report the ride sharing services of Bangladesh are examined thoroughly. Next the core
problems faced by their customers are identified. Then they are analyzed and after a thorough
interpretation of these shortcoming a few solutions in the form of new added features have been
given through the newly established prototype. The difference between the existing features of
current ride sharing services and the re-engineered and new features of the prototype Bhromon
will show how the new business we are planning to launch, will make the customers appreciate
ride sharing services even more. Through the pictorial representation of the prototype, a vivid
idea of how customers will be able to use Bhromon has also been portrayed. The feasibility of
this project along with a grand marketing campaign has been shown to portray the probability of
success of this project.

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3.0 STARTUP OVERVIEW
Bhromon is a round the clock, round
the year motor bike sharing application
that is committed to keep the roads of
Bangladesh safe for everyone. What
makes Bhromon different from the
other apps of similar sort is that it
operates 24/7 unlike all the other
competitors such as Uber Moto, Pathao
and Shohoz. Another thing that
separates us is that drivers do not need
to own their own bikes.
There are a lot of skilled drivers out there
who cannot afford their own bikes and
these are the driver's we will be targeting
as our riders. The company will buy the
bikes after raising funds from the
investors and then, the bikes will be
provided to the riders. The riders
need to maintain a minimum of 45 rides per week in order to maintain their status as an
employee of Bhromon. We have decided to give out 65% of net profit to the shareholders, 25%
will be reserved for the company, 10% for the riders and the rest 5% will be used for
maintenance of the bikes.

The bikes would be parked at the respective offices' garages and the rider would collect his
assigned bike from the office at their assigned times. If a driver maintains the threshold of rides
per week and is able to keep a rating of 4.5 stars or above, the riders would be able to keep the
bikes to themselves for as long as they would stay an employee at Bhromon. This means that
they don't have to come pick up the bike from the office parking lot or return the bike to the
office after their working hours.

We would primarily focus on road safety as our go to campaigning motto, as it has become a
burning issue in the last few months in the territorial region of Bangladesh. We have also
decided to buy a uniform resource locator for our website which we plan on using for the initial
registration process of our potential employees/riders.

Leaflets would be distributed to the local tea stalls and we plan to advertise this on newspapers
and social media. We plan on launching this service across the 11 metropolitan cities across the 8
divisions. We aim to become the number one bike riding service in the whole country within 10
years from our inauguration.

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4.0 SITUATION ANALYSIS

4.1 SWOT ANALYSIS OF BHROMON

STRENGTH
 Availability of the service: The service provided by the Bhromon app will not be
confined within the major cities like Dhaka, Chottogram and Sylhet. Rather the services
will be expanded to those areas which do not have any ride sharing services

 Provision of bike: our company will provide bikes to interested drivers. Unlike Pathao or
 Uber, who only hire people who have their own bikes.
 Investment: This platform allows people to invest on bikes that are provided by the
 company. As a result people can earn profit by staying at home.
 Maintenance: the company will take the responsibility of bike’s maintenance and
management.
WEAKNESSES
 Lack of exposure: Since Bhromon is a new entrant in the market, it does not have the
 exposure it needs to be popular.
 Financial constraints: Being a new company, Bhromon might face financial constraints
to fulfill its budget.
OPPORTUNITIES
 Reaching the untapped market: Bhromon wants to expand in regions where there is no
ride sharing service provided.
THREATS
 Strong competitors: There are already many established market players like Uber,
 Pathao, Shohoz, Obhai etc. They are very popular in the market.
 Negative customer attitude towards ride sharing services: Many people have a
concern of safety and security for the ride sharing services.

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4.2 PESTEL ANALYSIS OF BHROMON

POLITICAL FACTORS

 Bangladesh being a politically unstable country it might be troublesome to attain the

expected result with the permission of the political parties. To maintain a good relation is
of the outmost importance
ECONOMICAL FACTORS

 Bangladesh being lower middle income country start-up businesses are harder to become
successful. But if the business can create the demand among the consumer base through
proper marketing it becomes a lot easier to succeed as the country has a huge population.

SOCIAL FACTORS

 Bangladesh in the recent years has become familiar with ride sharing services. So it
should be a relatively easier task for Bhromon to be accepted.
TECHNOLOGICAL FACTORS

 Bangladesh though far from digitalization its people are adept enough to use ride sharing
services through mobile applications.
ENVIRONMENTAL FACTORS

 The climate and environment of Bangladesh is perfect for our ride sharing service

LEGAL FACTORS

 The legal documents if maintained it causes no legal problem to maintain a ride sharing
service business.

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5.0 COMPETITOR ANALYSIS
From the market research we can see that Uber Moto has the highest market share. And thus it is
the market leader with around 45% shares. The market challenger is Pathao with 40% shares, the
second highest market shares. Other than this there are Shohoz, Obhai and other apps. These
leading ride sharing companies provide service only in the major cities of Bangladesh such as-
Dhaka, Chittagoang, Sylhet etc. But other major and metropolitan cities also have demand for
such services.

50

45

40

35

30

25

20

15

10

0
Other Shohoz Pathao Uber Moto

FIG:Graphical representation of the competitor’s market shares(in percentage)

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6.0 COST ANALYSIS OF COMPETITORS
We have conducted a research and survey to find how cost effective our competitors
are. The details for a distance of 7.5km on a normal day in Dhaka city is given below:-

***This is
just an
estimated
costing,
UBER MOTO PATHAO BIKE SHOHOZ RIDES
the prices
may vary
195BDT 128BDT 128BDT based on
rush hour
and
availability
of rides.

Uber Moto Pathao Bike Shohoz rides

Base fare 30 25 25

Per Minute 1 0.5 0.5

Per KM 12 12 12

***Per BDT

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7.0 BRAND DETAILS
We have decided to go with the name Bhromon which translates to the term travel in English.
We have collectively decided to go with the tagline "Glide with our ride" for our company.

Our logo consists of a vector of 3 pyramidal shapes with a bike rider, riding a motor bike in the
middle of the pyramids with 'BHROMON' written in the middle as shown in the included picture.

Our services are going to be of the best quality. Our pricing will be affordable and reasonable
matching with Pathao( Base far 25BDT, Per Minute 0.5BDT and Per KM 12BDT).

Our promotions will be mainly focused on ATL, Print Ads and the campaign. Our service
providers will be experts available on the helpline 24/7 and the riders will be picked through
proper screening.

Our services will be smooth and easily accessible. Our services will be available in the 8
divisional and 11 metropolitan cities of the country.
Our mobile application will be user friendly and available on the Appstore and Googleplay.

Our main objective would be to make ride sharing available in every part of the country and help
unemployed people without capital to have a scope to earn, and also giving anyone and everyone
the opportunity to invest in a profitable investment.

7.1 MISSION AND VISION OF BHROMON

Mission: To provide the safest rides at affordable prices.
Vision: To make ride sharing service accessible to everyone & be the market leader in 10 years.

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7.2 BRAND PERSONALITY OF BHROMON
The brand personality is perception of a brand towards its consumers and potential consumers. It
is how the brand is perceived as a person with a personality of its own. Every brand has their
own personality. T create a brand personality which creates a bond with the customers is very
important as it leads to a profitable relationship. The brand personality of Bhromon will be that
of a young adult aged around 25-30years. The brand will hope to connect with its customer base
through its brand personality.

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8.0 TARGETING AND SEGMENTATION

8.1 INVESTORS AND FUNDRAISING

The Seed money required for the startup needs to be gathered through investors. We have given
the overall seed money required, including the marketing aspects has been given ahead. But
acquisition of funds to helps us build the startup is an immense challenge. There are various
options for securing capital for our business which we have taken into consideration.

The three main investor groups that we are aiming for are Rich Economic Middle Class, Upper
Middle Class and Middle Middle Class. We will go for equity based funding through
crowdsourcing and other means.

The people who have invested will be able to track their bike real-time through the app interface
and also keep track of their investment stats. The platform will allow people to invest on bikes
that are provided by the company. We will own the bike along with the individuals who will
invest on the bike. The company will take the responsibility of Bike Maintenance, Business
Management and Financial Transparency.

The Profit Sharing from the earnings will thus be shared in the following way:

Riders 10% Commission, Bhromon 25% of Profit, Investors 60% of Profit, Rest 5% will be kept
for maintenance.

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8.2 TARGET MARKET
Since a target market is a group of consumers or organizations most likely to use our company’s
service, thus we have identified it based on the Users and the Riders. We have made the
marketing campaign based on these two target markets. The two separate base of consumers are
further divided into 3 different segments for better analysis and marketing.

8.2.1 RIDERS
The primary target for riders are the Unemployed Youth. They are someone within the age group
of 18-24 who does not have a job but are actively seeking work. There are about 4.4 million
Unemployed Youths in Bangladesh, so that gives us a huge market to recruit riders.

The Secondary target are Unemployed Middle Class men. This includes people having lack of a
source of income to maintain their family. So we want to give them a chance at recruitment with
the mane requirement being able to ride a bike.

The other group we are also targeting are Part time Office-University going men. Having a part
time job on the side will definitely attract and serve our cause greatly.

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8.2.2 USERS
The primary target for users are Students. From our market research and competitor analysis, we
have found that the students use ride sharing, mainly bikes for their daily transport convenience.
Thus, a huge portion of our marketing are also aimed at them.

The secondary target users are office going middle class men. Those who don’t own bikes but
depend on public means of transportation to reach their destination. This platform will help them
reach their destinations more easily.

Other than that we will also target people who look for convenience in their daily routine. This
may include those who want to cover long distances in short time by avoiding the traffic jab
stricken city. Or those who want to reach short distances with ease too.

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9.0 TARGET AREA
From our market and competitor analysis, we can see that Uber, Pathao and other ride sharing
services are available in few main cities of the country because of the availability bike riders there.

As a result they at the moment cannot expand their market to other Metropolitan cities of the
country due to lack of bike riders in those cities. Thus Bhromon will be targeting those areas
which still do not have bike sharing services. As Bhromon will be supplying riders with bikes
and also help maintain them, it will become the first ride sharing service available in those areas.

Our main focus thus will be in the 11 Metropolitan Cities, with our first focus reaching the 8
Divisional Cities in the initial Phase, and afterwards expanding to the rest cities.

Bhromon service will be available in the saturated bike sharing service cities such as Dhaka,
Chittagong and Sylhet too.

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10.0 MARKETING CAMPAIGN
We plan to undergo a heavy marketing campaign to make our target market (both users and
riders) aware of our service, and make them use it in the long run. We have ATL, BTL and
Social Media Campaigns for this, which are described below.

10.1 ROAD SAFETY CAMPAIGN

In order to create a buzz among the customers, we'll promote our app in the most widely used
Social media platforms such as Facebook, Instagram with the tagline

Campaign will be a social movement for safer roads. Its main goal would be making the general
people aware about the importance of maintaining traffic laws. The campaign will also create a
voluntary organization which will help maintain traffic laws and conducts social movement
about safer roads around the country.

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10.2 BTL CAMPAIGN
Leaflets and Posters
We will have leaflets and Posters distributed in the major concentrated zones of our target areas.
They will target Users, Riders and Investors individually. These are shown below:

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Helmets and Stickers

We will have Helmets with our Brand name on it to bring a connection with safety. Also Car
Stickers will be provided to further increase brand recognition.

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10.3 ATL CAMPAIGN
Newspaper Advertisement
Show Ad regarding our service to potential users and riders in the target areas.

Social Media

We will utilize online platforms like Facebook, YouTube and Google Ads to boost our recognition.

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11.0 CAMPAIGN BIG IDEA
The Big Idea for our Road Safety Campaign is Safety First, Bhromon Glide with our Ride.
A demonstration of this is further given in the marketing campaign sector.

The campaign that we are willing to launch would be a social movement for safer roads across
Bangladesh. Road accidents alone have put an end to the lives of 7796 people in the calendar
year 2018 according to The Daily Dhaka Tribune. We believe that one death on the road is too
many and thus we would like to shed some light on this issue. Reckless driving, not putting on
seat belts, not using the zebra crossing and over bridges/underpasses, driving above the speed
limit are some of the primary causes of road accidents. The campaign's main goal would be
making the general people aware about the importance of maintaining traffic laws. The campaign
will also enable us to work with a voluntary organization which will help maintain traffic laws
and conducts social movement about safer roads around the country.

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12.0 BUDGETING AND FEASIBILITY
The budget is the most important part of any start-up as it signifies and defines the probability of
the feasibility of the entire project.

BDT 13,979,688
The entire Campaign budget has been made for just one calendar year.

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 Initial Investment
Fixed Costs Per Unit Cost (Year) Total Cost
Motorcycles(400) 135,000 54000000
Campaign Cost 13979688
Total Fixed Cost 67979688
Operational Costs
Office Rent 8 Units 360,000 2880000
Salaries and Wages 48
persons 300,000 14400000
Maintenance 400 Bikes 1,000 400000
Garage Rent 180000 1440000
19120000
Total operational Cost
Total Initial Cost 87099688
Required Cost

Considering increase in sales per year to be 20% (Based on Market Research)

We get the following approximate Inflows and Outflows Forecast for 8 years

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

Sales 20000000 24000000 28800000 34560000 41472000 49766400 59719680 71663616
Initial Fixed Cost (67979688) NA NA NA NA NA NA NA
Yearly Operating
Cost 19120000 19120000 19120000 19120000 19120000 19120000 19120000 19120000
Total Revenue -67099688 4880000 9680000 15440000 22352000 30646400 40599680 52543616

Financial Feasibility
Payback Period= 2+ (23,979,688/28,800,000)= 2.833 years.

CM= Sales- V.C= 20,000,000- 19,120,000= 880,000

PV of all outflows= 67,979,688

PV of all Inflows= 220,509,552.1

NPV= 152,529,864.1

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13.0 CAMPAIGN MATRIX
The campaign matrix is very important for any sort of marketing campaign as it shows how
every minor details. It helps to understand the cost of converting a potential customer to a proper
customer. It also helps to monitor certain activities and understand which Ads, TVCs, ideas etc
are doing well. All in all it helps to maintain stability of the campaign and understand how far it
has reached. From the budget and our hypothesis we should be able to reach 20million people in
just one calendar year.

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14.0 TIMELINE
We have made a timeline for one calendar year which will contain all the details and distribution
from the prelaunch to the marketing campaigns. Our Metropolitan activation will begin from
July. Our push sms and e-mails along with digital marketing will continue throughout the year.
Print ads and the BTL campaign will go on for most parts of the year.

After one year we hope to be well recognized throughout the country. The recognition will help
us to become the market challenger in the major cities of the countries. But our prime focus will
be on the untapped market of the metropolitan cities of the country where we will have the first-
movers advantage. This should bring help us to become market leaders by 2025.

CONCLUSION
Bangladesh is one of the fastest growing economies in the world. With the population increase,
the opportunities to generate profits are also going up. Transportation system in our country is
among the most underdeveloped in the world. Bike ride sharing in our country, where there
always seems to heavy congestion of traffic is a go to option for a handful of people. Although
this concept isn't unique but we have incorporated all the elements necessary to make it as
convenient and as safe as possible to the users. This project would also be very beneficial to the
skilled but poor drivers and thus help in creating employment. If we could materialize our
dreams for this project, we do not doubt for a second that this project would be a whopping
success. Hopefully, in 5 years or less from now on, we would be the market leaders in this sector.

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