Automobile Industry in Bangladesh

Heaven’s Light is Our Guide
RAJSHAHI UNIVERSITY OF ENGINEERING & TECHNOLOGY
A BUSINESS PROPOSAL REPORT
ON
AUTOMOBILE INDUSTRY IN BANGLADESH
Prepared by
Ahmed Sobhan Abir Md. Rakib Miah
Roll No. 145011 Roll No. 145014
Md. Nazmul Ahsan Shairan Md. Hasibul Hasan Santo
Roll No. 145012 Roll No. 145015
Department of Industrial & Production Engineering

March, 2019
CANDIDATES’ DECLARATION
This business proposal work is done under the supervision of the teachers of Department of
Industrial & Production Engineering, Rajshahi University of Engineering & Technology for
the partial fulfillment of the requirements for the Degree of Bachelor of Science in Industrial
& Production Engineering.
It is hereby declared that this report or any part of it has not been submitted elsewhere for
the award of any degree or diploma.
………………………………….
Ahmed Sobhan Abir

Roll No. 145011
…………………………………
Md. Nazmul Ahsan Shairan

Roll: 145012
………………………………….
II
Md. Rakib Miah
Roll No. 145014
………………………………….
Md. Hasibul Hasan Santo

Roll No. 145015
III
ACKNOWLEDGEMENT
At first all praises are given to the almighty Allah with thanks and great respect for the
successful completion of the case study by His grace and mercy. Authors express their
heartiest gratitude and profound honor to the teachers of Department of Industrial &
Production Engineering, Rajshahi University of Engineering & Technology, for their
tremendous help and proper guidance, encouragement and supplying with informative
materials and help us to complete this report in scheduled time.
IV
ABSTRACT
The demand for automobiles in Bangladesh is rising with each passing day. But most of
them are imported. In this business proposal, a business plan is made describing the
opportunities and strategies to build a profitable automobile manufacturing company.
According to the manufacturing process, resource requirements and scheduling are
described. Marketing strategies are set with respect to the target customer. Net income and
payback period are also calculated along with break-even analysis. Details budgeting and
sales projection are done for the first several years. Finally, potential problems and their
solutions are also discussed.
Keywords: Automobile Industry, Business Proposal, Income Statement, Marketing

Strategy.
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CONTENTS
ACKNOWLEDGEMENT
ABSTRACT
LIST OF TABLES AND FIGURES
CHAPTER
INTRODUCTION
CHAPTER 1: SITUATION ANALYSIS
1.1 Industry Analysis
1.1.1 Market Characteristics
1.1.2 Automobile Companies & Brands in Bangladesh
1.1.3 Global & Domestic Sales Status
1.2 Competitive Analysis
1.1.1 Key Benefits to the Customers
1.3 Customer Analysis
1.4 SWOT Analysis
CHAPTER 2: OBJECTIVE
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2.1 Corporate Objective
2.2 Marketing Objective
CHAPTER 3: MARKETING STRATEGY
3.1 Market Segmentation Strategy
3.2 Targeting Strategy
CHAPTER 4: MARKETING PROGRAM
4.1 Marketing Mix
4.2 Loyalty Program
4.3 Customer Service and Support
4.4 Personal Selling
4.5 Trust and Credibility
CHAPTER 5: IMPLEMENTATION PLAN
5.1 Product Design and Development
5.1.1 Manufacturing Process of Automobile
5.2 Marketing and Sales
5.3 Resource Requirements
5.4 Scheduling
CHAPTER 6: PERFORMANCE EVALUATION AND MONITORING
6.1 Monitoring Ad Campaigns
6.2 Profit and Loss Statements
6.2.1 Income Statement
6.2.2 Payback Period and IRR
6.2.3 Break Even Analysis
6.3 Meeting Schedule
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6.4 Sales Force Evaluation
CHAPTER 7: FINANCIAL INFORMATION
7.1 Financial Capsule
7.2 Financial Assumptions
7.3 Budget
7.3.1 Raw Material Budget
7.3.2 Infrastructure and Equipment Budget
7.3.3 Administrative Budget
7.3.4 Advertisement Budget
7.3.5 Selling Expense Budget
7.3.6 Manufacturing Overhead Budget
7.4 Sales Projections (7 years)
CHAPTER 8: CONTINGENCY PLANS
8.1 Symptoms of Failure
8.2 Alternative Strategies
8.3 Potential Problems and Solutions
CONCLUSION
BIBLIOGRAPHY
LIST OF TABLES
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Table No. Table Name Page No.
LIST OF FIGURES
Figure No. Figure Name Page No.
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INTRODUCTION
Transportation plays a very important role in the development of a society as demand for
transportation increases along with development. It is one of the major industrial sectors of
an economy. Over the years, Bangladesh achieved considerable economic growth (GDP
more than 7 percent) with the stable unemployment rate and a rise in foreign investments.
As a result, the purchasing power of individuals has risen along with the demand for cars,
motorbikes and commercial vehicles. The demand ranges from luxury inter-district buses to
small sedans. To meet these demands, Bangladesh has to depend on imported vehicles as
they are not manufactured in Bangladesh. A huge number of vehicles are imported every
year, which includes reconditioned cars, spending a huge amount of foreign currency (Board
of Investment Bangladesh, 2017). The wide variety of brands of vehicles, whether
commercial-heavy or light motor vehicles, are imported by Bangladesh and the countries of
origin mainly include countries like Japan, India, South Korea, China, Germany, France,
Malaysia, UK and USA (International Trade Centre, 2002). Among the importing countries,
Japan and India are the top sellers of vehicles to Bangladesh. To restrict the import of
vehicles, the government has imposed taxes on imported vehicles increasing the price which
made it harder to afford by the middle-income earners. This calls for an initiative to be taken
to develop the automobile industry to manufacture vehicles at a reasonable price.
1. SITUATION ANALYSIS
1.1. Industry Analysis

1.1.1 Market Characteristics
The automotive industry in Bangladesh is the third largest in South Asia. Bangladesh has a
few large car plants which assemble passenger cars from Mitsubishi and Proton, as well as
commercial vehicles from Hino and Tata. Motorcycles, auto rickshaws and the locally
designed Mishuk three-wheeler are manufactured in Bangladesh.
The first Bangladeshi car has been made naming Sobari (Meaning: 'For All' in Bangla). The
Sobari family car has been made in Obhoynagor, in Jessore district, and costs only 6 lakhs
and 45 thousand taka. Apart from the engine, which was made in India, everything else in
the Sobari family car has been made locally (Kamal, 2014). Then again, a Swedish
automobile giant Volvo Group will market new generation trucks in Bangladesh, in a joint
venture with Indian Eicher Motors. With the launch, the Eicher brand enters a new phase of
growth and consolidation in the commercial vehicle market. The distributorship of Eicher
Trucks in Bangladesh is managed by Runner Motors Limited, an arm of Runner Group
(Business Intelligence Bangladesh , 2017).
Pragoti Industries Limited (PIL) is the oldest and largest automobile assemblers in
Bangladesh. The company has assembled over 50,000 vehicles since its inception in
1966. In February 2010, Japanese car manufacturer Mitsubishi officially proposed to the
Bangladesh government to locally assemble the Mitsubishi Pajero Sport in collaboration
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with Pragoti. Operations commenced in August 2011, with an annual production output of
around 500 units.
In 2009, the Malaysian Agate Group proposed to build a car manufacturing plant in
Bangladesh in cooperation with Walton, which itself is preparing to produce motorcycles. In
the same year, car manufacturing company TagAZ announced that they would build their
third factory in Bangladesh, aiming for exporting. The plant is to be completed by 2012.
In March 2015, PHP Group and Proton announced plans to assemble Proton cars in
Bangladesh. A new Tk 400 crore assembly plant would be constructed in Chittagong to
facilitate an annual production output of 1,200 units. In May 2017, PHP Automobiles
launched the Bangladeshi-built Proton Prevé. The company intends to market the Prevé as
an alternative to used imported cars which dominate the local market.
PHP, a business conglomerate based in Chittagong, signed a deal with Malaysian

automobile manufacturer Proton to set up an industry with a capacity of manufacturing
1,200 cars per year. The company is investing TK 400 crore in the project employing several
hundreds of workers with 50 engineers (Dhaka Tribune, 2015). Furthermore, in 2015 three
car manufacturing companies - Zinwa, BMG, & KRW, from South Korea have collaborated
with Ena Group to manufacture battery-driven auto car (automobile) in BSCIC industrial
estate in Rajshahi city. There will be Lithium battery in the car which will run at least 100
kilometers, charging only once. It will cost around US $18,000 or Tk.1, 200,000.
Even Society of Indian Manufacturers (SIAM), an apex industry body representing leading
vehicle and vehicular engine manufacturers in India, is forwarding their helping hand
towards Bangladesh to strengthen their automobile manufacturing base. SIAM hosted the
first-ever three days Indo-Bangladesh Automotive Show in the city to unite automotive
industries of both countries (The Daily Sun, 2016).
In August 2018, Foton Motor, a Chinese vehicle manufacturer, announced to set up a plant
in Bangladesh by next year to assemble commercial vehicles in a joint venture with ACI
Motors. Bangladesh started manufacturing of Motorcycles in 2000's. Walton made the first
production of motorcycles in the country. Runner Automobiles was the second company to
manufacture motorcycles in Bangladesh which was started in 2012. After then many other
local companies got engaged in producing of motorcycles. Some local companies like
RoadMaster Motors, Jamuna Automobiles are few of them.
In 2014, Hero MotoCorp made a re-enter in Bangladesh market with the hands of local
Nitol-Niloy Group and expressed their interests to set up a manufacturing plant in couple of
years. In 2017, Hero MotoCorp launched their motorcycle manufacturing plant in a joint
venture with their local partner Niloy Motors (A subsidiary of Nitol-Niloy Group).
In 2016, Runner Automobiles signed a collaboration agreement with UM Motorcycles to

manufacture UM motorcycles in Bangladesh under the name of UM-Runner . The
motorcycles will be manufactured at Runner’s motorcycle manufacturing facilities at
Bhaluka while UM International LLC will provide R&D support in technological &
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engineering fields as well as global component sourcing. Bangladeshi manufactured UM-
Runner motorcycles entered the market in the second quadrant of 2018.
In September 2012, A joint venture deal was signed between Honda and Bangladesh Steel
and Engineering Corporation to form Honda's first Bangladeshi subsidiary Bangladesh
Honda Private Limited (BHL). Honda has 70% stake in the joint venture.
After then, Honda committed to set up a motorcycle manufacturing plant in the country. In
November 2017, Honda made a groundbreaking ceremony to mark the start of construction
of their motorcycle manufacturing plant in Munshiganj District, Dhaka
Division in Bangladesh. In November 2018, Honda launched their first motorcycle
manufacturing plant in Munshiganj.
1.1.2 Automobile Companies & Brands in Bangladesh

In Bangladesh, there are few large car plants which assemble the Mitsubishi Pajero Sport,
Hino bus, Tata bus & motorcycles etc. Some top automobile assembling & manufacturing
companies are Uttara Motors Ltd, Nitol Motors Ltd., S.R Motors Ltd., Akij Motors, Pragoti,
Bangladesh Machine Tools Factory, Aftab Automobiles, TVS Auto Bangladesh Limited,
HS Enterprise, TATA Motors Bangladesh (Joint Venture with Nitol- Niloy Motors Ltd),
Atlas Bangladesh Ltd., Walton Hi-Tech Industries Limited, Runner Automobiles, Singer
Bangladesh Limited, Bangladesh Honda Private Limited, Rangs Motor's Ltd., Rahimafrooz
Globatt Limited, Chisti Engineering & Mechanical Works, Jonata Auto Mobile Parts, Ifad
Autos Ltd.
Table 1 illustrates some automobile products in Bangladesh & their Brand names -
Products Brand Name

Heavy Bus Hino, Isuzu, Volvo, Scania, Hyundai, Tata, Mercedes Benz etc.
Mini Bus Hino, Mitsubishi, Isuzu, Toyota, Sawraj Mazda, Tata, Eicher etc.
Microbus Nissan, Mitsubishi, Toyota etc.
Heavy Truck Hino, Tata, Bed Ford, Isuzu, Ashok Leyland
Mini Truck Hino, Tata, Mitsubishi, Isuzu, Toyota, Eicher, Sawraj, Mazda etc.
Toyota, Mercedes-Benz, Nissan, Mitsubishi, Ford, Daewoo,
Motor Car
Proton Saga, Proton Wira, Hyundai, BMW, Maruti Suzuki etc.
Four Wheels Toyota, Tata, Mitsubishi, Nissan etc.
Auto Tempo Bajaj, Krishan
Scooter Bajaj, Krishan
Honda, Xingfu, Jialing, Zongshen, Yamaha, Suzuki, Hero, TVS
Motor-cycle
Victor, Bajaj, Vespa etc.
Light & Heavy Nissan, Daewoo, Hyundai, Volvo, Ashok Leyland, Tata, Hino,
Commercial Vehicles Mitsubishi etc.
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Farm & Agricultural
Hyundai, Daewoo, Dongfang, Dong- chang etc.
Vehicles
Table 1: Some Automobile products in Bangladesh
1.1.3 Global & Domestic Sales Status:

In the Global perspective, in 2016, there has been growth in the sales of cars which has been
led by China, the largest growing economy in the world, who gained 13 percent sales with
3.2 million additional vehicles. Among other major economies, the European Union and US
market gained 1.1 million or 7 percent and 70,000 or 0.4 percent sales, respectively (Scutt,
2017). The overall sales of vehicles have increased from 90 million in 2015 to 94 million in
2016 (OICA, 2017). According to the world cars brand ranking 2017, using data from
Mobility Database, it has been found that Toyota, the market leader, achieved 1.35 million
units sales (+8.7 percent) along with 9.5 percent global market share in the first two months
of 2017, followed by Volkswagen with 1.036 million sales (+2.1 percent) and Ford 896,000
sales (-2.9 percent) (Focus2Move, 2017).
Nevertheless, Bangladesh is also facing a rise in the demand for motorized vehicles. In 2015,
a total of 0.32 million vehicles has been registered in Bangladesh according to the list given
in the official website of Bangladesh Road Transport Authority (BRTA). In 2016, there has
been an increase of registered vehicles totaling 0.42 million vehicles. For the last couple of
years, it has been increasing as per the data. The latest update shows that in the first two
months of the year 2017, 69,198 registered vehicles have been listed.
1.2. Competitive Analysis

The closest competitor of our car is Maruti Suzuki Alto 800 which is 4.5 times of its price.
Suzuki is aware of the gap and is working arduously to improve its current care lineup. It
will focus on achieving the practicality and efficiency of our car without compromising on
safety and quality. However, Maruti Suzuki is not in a position to reduce the price of Maruti
just for the sake of competing with our car.
1.2.1 Key Benefits to the Customers

Affordable: Our car is priced around BDT 2,00,000. This price tag is almost 4.5 times lesser
the price of the current cheapest car in Bangladesh, Maruti Suzuki Alto 800, which is priced
around 9 Lakhs. Our car is ideal for two-wheeler owners looking forward to switch to 4
wheelers. It’s also suitable for women, who would find driving a car safer than driving a
scooter or using a cab rickshaw or local transport.
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Fuel Efficient: Our car has a mileage of 26km/ liter .This makes our car a fuel efficient
vehicle, which will save money in the long-term. This mileage comes with a powerful
engine of 623 cc with a maximum speed of 105 Kilometers per hour.
1.3. Customer Analysis
Demographics
Age From 35 to 55
Gender Majority are male
Social status Successful, motivated, and educated
Ethnicity All people
Income BDT 5,00,000 – 7,00,000 per year
Table 2: Demographic Customer Analysis
Table 2 illustrates the demographic analysis of our customers. The age range of the targeted
customers is 35-55 years old. Major customers are male. Customers income range is 5-7
lakh taka per year.
Psychographics
Lifestyle Fast paced and always on the go.
Attitudes and beliefs Cars are need to maintain a good life.
Perceptions This car is cheaper and comfortable than a bike.
People who feel they are busy and need to travel

Personality
frequently with family members.
Table 3: Psychographic Customer Analysis
Table 3 illustrates the psychographic analysis of our customers. Generally fast paced
persons need automobiles to travel frequently. So they are our potential customer. They
need cars to maintain a good life. Whether they think to buy a motor bike, they can easily
buy our car within the almost same price.
1.4. SWOT Analysis
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Strength:
1. Evolving Industry: Automobiles symbolizes autonomy & economic development. It
allows citizens to live, work & travel in ways that were unthinkable a century ago. Almost
each automobile journey ends with either an economic matter or several other benefits to
the quality of life.
2. Transferring Growth to Asian Markets: Even though American & European market is
the rhythm of the automobile industry. However, the spotlight is shifting to developing
markets like China, India, Bangladesh & other Asian nations. This is because of the increase
in disposable earnings, shifting the way of life & constant economic situation.
3. Increasing Demand of Luxury Commercial Automobiles: Automobile companies like

VOLVO, BMW, Scania, Hyundai, & Mercedes-Benz are betting high & are aiming to the
developing countries due to the rise in demand of luxury public transportation system.
4. Manufacturing Benefits to Control Expenditure: Automobile companies are building

their plants in developing nations like Bangladesh, India, & China as they have economical
labor force which leads to lower manufacturing cost.
Weakness:
1. Efficient Labor Crisis: The crisis of efficient labor is a major weakness for the
automobile industries in Bangladesh.
2. Higher Investment & Switching Cost: The initial investment is very high in the
automotive sectors. If someone starts their business then they can't easily leave to other
business. This is one of the major weaknesses for this sector.
3. Environmental Concern: Vehicles are the main reason of air pollution in Dhaka city.
Mainly vehicles that run on diesel, pollutes the air in large level. In Bangladesh, there is
perhaps no single electric car charging station & the environmental awareness is not that
much. So it may take a long time for Bangladesh to start importing electric cars.
4. Policy Support: Government policies & initiatives are not enough for the growth of
automobile industry. Regulations like excise duty, higher taxes & volatility in the fuel prices
are some factors which always affect the growth of the industry.
Opportunity:
1. Strategic Alliances: Making strategic alliances can be a smart strategy for automobile
companies. By using specialized capabilities & partnering with other companies, they can
differentiate their products.
2. Foreign Investment: Many foreign investors have nominated Bangladesh as a country

of safe investment. But no car industry has been established. This is a huge opportunity for
automobiles industry to increase its production line in the country.
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3. Increasing Demand: Since the population of this country is increasing day by day, the
demand for the automobile is also increasing. At the same time, the number of middle-class
families with more disposable income is increasing. This is also an opportunity.
Threat:
1. Intense Competition: In Bangladesh, the number of competitors in the automobile sector
is increasing day by day. This is a major threat towards the advancement of the industry.
2. Volatility in the fuel Prices: From the passengers perspective, fluctuations in the fuel
prices remains the determining factor for its growth.
3. Economic Uncertainty: Macroeconomic uncertainty, depression, idleness & other

economic issues which may frighten the automobile industry in Bangladesh for a long
period of time.
4. Higher Cost: Higher fixed cost, raw material price, and higher investment in research &
developments are important factors for the growth of the industry.
5. Government Regulations: The rules & regulations imposed by the government are not
so inspiring for the automobile industry. The ever increasing tax rate is also another threat
for the automobile industry.
6. Political Unrest: The political unrest not only creates a threat to the automobile industry
but also almost all industries in Bangladesh.
2. OBJECTIVE
2.1. Corporate Objective

To provide cheapest car ever to middle class with same petrol emission as a motor bike.
2.2. Marketing Objective
Short-term (upcoming year)

 Acquire 30% of the market share within the first year of operation.
 Marketing blitz within the first year to reach newspaper, local internet ads, radio stations,
flyers, and pamphlets.
 Integrate customer satisfaction and suggestions into future development to achieve 95%
satisfaction within the first year.
 Gain at least 100 new clients per month in the first quarter.
Long-term (5 to 7 years)
 Acquire 50% of the market share by year 5
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 Become the top selling brand in our market in year 5
 Build strong ad awareness over next three years
 Increase profit margin by 25% by the end of year 7
3. MARKETING STRATEGY
3.1. Market Segmentation Strategy

Geographic Segmentation
Geographical segmentation is one of the most important basis of segmentation of the
automobile sector, especially in over populated countries like Bangladesh, where the
conditions are different in each regions.
Taking the segmentation in Bangladesh itself, we find that we should focus on developing
cities and townships where the road transportation system is good enough for cars and the
customers have the resources to buy it.
On the other hand, commercial vehicle companies would segment the market on the basis
of concentration of industries in different regions.
Demographic Segmentation
Another important basis for segmentation of the automobile sector is demographic
segmentation. Demographic segmentation provides a base marketing of products according
to the income, status, age etc.
We should focus on the segment of the people belonging to the middle class and here comes
lies the demographic segmentation. On the other hand, luxury car manufacturers would
focus more on the high income segment.
Similarly, demographic segmentation plays an important role in the two wheeler market.
Bike manufacturers generally target usng to middle aged people. More and more
manufactures are coming with automobiles for women, which have special features and are
easy to use.
According to the age of the target market group, automobile manufacturers would come up
with different color variants, for instance bright and flashy colors for the usng and vice
versa.
Psychological segmentation
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Based on psychological segmentation, automobile manufacturers come up with different
variant of the models of their products. This has been largely seen in the case of cars, where
companies generally come up with two or three variants of the same model, and it has been
observed by industry analysts that the variant of the medium variant of the model sells the
most.
Tag-lines such as “Men are Back” (used by Maruti Suzuki for the launch of a new car) and
“Definitely Male” (used by Bajaj for a popular bike) target a particular category of
individuals and help to increase sales and popularity in that segment.
Manufacturers of luxury cars like Ferrari, Porsche, etc target the section of the society with
a large disposable income and high status, and this can be achieved by psychological
segmentation.
Behavioral segmentation
Behavioral segmentation is done on the basis of the benefits sought, loyalty status, etc. This
is another important means for segmentation in the automobile sector, and taking yet again
the example of a car, Daimler, the manufacturer of luxury car Maybach, customises the cars
according to the needs and requirements of the products.
3.2. Targeting Strategy

Online Marketing:
1. Making sure that the business shows up in local search results
2. Promoting advertisement in different highly visited websites.
3. Advertisement in social media especially in Facebook and Youtube.
4. Using Cloud-based Communication Tools for Outbound Marketing Calls and SMS.
5. Encouraging clients to write online reviews.
6. Pairing up with online auto repair service network.
Promotion on Sale
1. Giving out pre-loaded gift cards for service discounts.
2. Encouraging to return visits with a loyalty/rewards program.
3. Focusing on the customer experience to drive loyalty.
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Traditional Marketing
1. Giving advertisement in newspapers and televisions.
2. Sending out press releases.
3. Becoming a hub for the automotive community.
4. Making partner with local schools to educate students on driving and car care.
3.3. Product Life Cycle

Pioneering stage
At the pioneering stage, we will promote huge amount of advertisement through the social
media. We will use Facebook via car buying and selling “Groups” and “Pages”. It is less
costly but effective way to get close to the target customer. We will make press releases
about the upcoming car.
Competitive stage
At the competitive stage, we will make discount offer if the customers refer others to buy
our car. We will make several distribution center to cover the urban areas. Social marketing
will be continued and television advertisements will be also promoted.
Retentive stage
At the retentive stage, we will try to make social awareness about car accidents by arranging
programs and seminars. We will encourage people to drive vehicles only when they are
skilled and have license. More models will come in market according to the customer
preference.
Core Strategy
The key success of car manufacturers lies not only in having good products but also in being
able to provide the customer with the level of service they desire, because of increasing
competitiveness in the automobile industry. Car manufacturers have to understand the
significance of marketing concept and of what consumers think, what they want, how they
work and how the personal and group influences affect the consumer decision making
process in order to serve their customers by developing quality products and services and
selling at a price that gives consumer high value.
Understanding how consumers make purchase decisions can help car manufacturers in
several ways. If a marketing manager knows through research that fuel mileage is the most
important attribute for a certain target market; the manufacturer can redesign the product to
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meet that criterion. If a car manufacturer cannot change the design in the short run, it can
use promotion in an effort to change consumers’ decision making criteria. For example, a
car manufacturer can advertise a car model’s maintenance-free features while downplaying
fuel mileage.
Being a developing country, most Bangladeshi people are not able to buy a car though it is
their necessity for various purpose. So our core strategy will be highlighting the economical
price of our car to grab the market share. At present, most middle class people are active in
social media and many of them spend a lot of time in it. So our core strategy will be
promoting our product in social media. But only social media will not be able to reach the
middle aged customers. So we will use newspaper advertisement to announce different
selling offers and discounts at various occasions.
4. MARKETING PROGRAM
4.1. Marketing Mix

Marketing strategies are often designed to influence consumer behavior and lead to
profitable exchanges. Each element of the marketing mix can affect consumers in different
ways (Peter and Donnelly, 2004). There are individual and environmental influences that
have an impact on the choice method of consumers. Individual characteristics represent
motives, values, lifestyle, and personality; the social influences are culture, reference teams,
and family. Situational influences, like a consumer’s money condition, additionally
influence the consumption choice method. The present study has incorporated several
elements, which influence customer decision-making like values, lifestyle, temperament
and culture.
Marketing will begin with a blitz of local advertising to announce the manufacturing of the
cheapest car in this country. This will ensure brand notification and recognition and will
directly influence decisions over other competitors. Local advertising includes social media
at a minimum; and if cost effective, will include Television.
The brand will be distinguishable amongst other competitors and will provide good aesthetic
outlook with basic necessities. Prices will remain low by saturation into the market and
focus will be more on volume than net profit.
Customer feedback and monitoring of sales will be taken into effect when discontinuing and
adding new product lines. Also, before a product is about to be discontinued, it will be
announced on the website to see if there is still an interest.
Pricing will be 10-15% lower than competitor’s price as long as it is still marginally
profitable. Price will be determined by market survey and demand of the individual items.
The pricing strategy will be market penetration with having the lowest price. Volume over
individual net is the goal, this will be a direct part of the marketing as we will advertise the
lowest price around.
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Prices will be determined according to various festivals and occasional seasons. Price
discount will be considered for repeat customers and rewards members. Sales locations will
be available for urban areas where there are potential customers.
4.2. Loyalty Program

The loyalty program will be a simple punch card system. After referring three customers
with successful selling, a customer will get special discount offer and surprise gift. If anyone
purchase three cars, he will get a certain amount of discount for lifetime and free car
servicing for a certain limit of time.
4.3. Customer Service and Support

When consumers learn about vehicles by brand, features, and price, they now spend most
of their time online instead of visiting dealerships in person. Most companies have websites,
but few are fully integrated into customers’ entire experience. Customers expect the same
retail experience they enjoy when buying other consumer goods. Making appointments,
checking inventory availability, and chatting live to a real person are all important elements.
It’s even more important for the website to be mobile-friendly. So we will build a user-
friendly website with sufficient information to maintain the online support system.
We will have customer support call center to help them immediately by giving necessary
information. If anyone falls in a problematic situation with the car, the technician will be
able to give suggestions.
4.4. Personal Selling

An indifferent receptionist, a pushy salesperson, or a poorly maintained environment signals
to the prospective customer that a dealership isn’t for them. Customers expect a low-
pressure, personalized omnichannel experience that puts them in control of the process.
They receive convenient, personal service from other industries like retail, banking, and
insurance; and they bring those expectations to the showroom. And future changes in
ownership model mean customers could potentially spend more time in a retailer’s location
over the years, not less. If they’re anticipating a multiyear relationship, the first visit is an
audition.
Test drive is the opportunity to impress a customer and make the sale. The sales channel
may have been digital; the nature of ownership may evolve; but this is always the hands-on
tipping point. Yet so many company fail to stand out in this critical moment.
4.5. Trust and Credibility

It goes without saying that the auto industry is all about people, with business being done
face-to-face, personal relationships forged for the long term, and so on. We will Try and
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mimic person-to-person showroom engagement as much as possible. Sales staffs will be
sharp enough to know that every visitor should not be handled the same way.
Trustworthiness is a cornerstone of credibility. Consistency is also remarkable in regards to
staying engaged digitally and socially. People desire to be understood, so the first step of
credibility is to demonstrate they sincerely understand where the client is at, their feelings,
and what they are experiencing. Then the car needs to be demonstrated that they can guide
their client, by walking with them, to a desired outcome or vision that the client feels is
unattainable on their own.
5. IMPLEMENTATION PLAN
5.1 Product Design and Development
5.1.1 Manufacturing process of automobile
1. The Chassis Production Unit
Building a frame or body is most challenging work. An automobile’s body is made up of
aluminum rather than steel which makes the body stiffer and saves the cars weight. There
are around 2000 welds in chassis production which only well skilled workers can perform
it. The chassis is produced by stamping and metal forming processes.
Development and approval of the stamping dies are the most expensive and time -
consuming efforts during a new vehicle design and launch. For the die making process,
stamping engineering starts with the desired panel shape provided by the designer in a CAD
file, in addition to the sought panel mechanical properties such as dent resistance (i.e. yield
strength). Then, the engineers start with the material selection, i.e. selecting the steel grade,
thickness and heat treatment from what is typically provided by the steel mill.
The stamping process starts with the steel and aluminum coils provided by the mills with
specific thickness, surface topography, widths, and heat treatments. Additional inputs to the
stamping press are: the die (toggle, progressive), the lubricants (water or oil), the tonnage
conditions, and other process settings such as clearances. Generally, the stamping process
constitute following main operations; blanking (or blank preparation), stamping (forming),
and assembling activities.
Figure 1 illustrates the sequence and basic steps in the stamping line. Before doing the press
operation, we need to blank the raw plain steel and store them. Then it goes to the sheet
feeder pre-bend is occurred. After that, it is pressed in a stamping press. Finally it is trimmed
and pierced.
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Figure 1: The sequence and basic steps in the stamping line
The joining activities involved in the automotive body – weld or body - shop area. These
activities are mainly:
1. The fusion - based joining steps achieved through the metal inert gas (MIG),
tungsten inert gas (TIG) welding and the resistance seam, projection, and spot
welding schemes. The fusion welding is done in automated, semi - automated, and
non - automated fashions.
2. Adhesive bonding is also applied to join the door inners and outers through the
hemming process in addition to many other applications. Recent advances in the
automotive joining technologies is friction stir welding (FSW).
The automotive welding practices focus on the utilization of resistance welding and arc
welding techniques. Additionally, some brazing and soldering processes are used. The
brazing joins the materials through their coalescence by raising the joint temperature to
brazing level in the presence of a filler metal, which is distributed through the capillary
action into the joint. The difference between soldering and brazing is in their filler metal
melting temperature. However, both soldering and brazing find limited applications in
automotive production.
The automotive industry focuses on the MIG or gas metal arc welding (GMAW) and TIG
welding. These welding techniques join metals by heating the panels to their melting point
with an electric arc.
3. The Electrocoating or E-Coating process

After chassis production, the car’s body is moved to another unit where it is protected by
corrosion. The body is submerged in chemical where it is rotated in 360 degrees to get coated
from inside and outside. The coating is of: nickel, manganese, zinc. Then the car is emerged
23
in an electrical charge solution where these coating sticks to the body like a permanent
magnet and prevents it from rusting.
Figure 2 illustrates typical activities in a painting booth. At first there is a pretreatment
process where cleaning and drying operations has taken place. Then E-coat is done by
electro-deposition process. After that, sealing process is accomplished. Before clearing the
coat process, there are two process named primer coat process and base coat process.
Figure 2: Typical activities in a painting booth

4. The Pre-Assembly
Here the workers build the major components of car like: doors, instrument panel and
engine. The workers polishes the body and makes a perfect finish. Then an inspector
inspects it and even the slightest and minor mistakes doesn’t moves the car to another unit.
Figure 3 illustrates a layout for trim assembly area. There are engine assembly line, door
assembly line, door attachment line, seat attachment line etc.
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Figure 3: Layout for a trim assembly area
5. The Final Assembly Line
The final assembly line is later divided in 7 units:
Unit 1: Associates installs blocks of high density foam and thin sound proofing sheet like
material to prevent low and high frequency noise.
Unit 2: Wiring is done all over the body which powers and controls cars all electronic
components
Unit 3: The technicians installs strong and stiff instrument panel made of cast magnesium
weighing up to 15 pounds.
Unit 4: In this unit two skilled technicians attaches engine to the chassis and provides heart
to the body.
Unit 5: Here technicians manually installs the car window as well as windshields.
Unit 6: Installation of the seats.
Unit 7: Car’s wheels are mounted.
6. Testing area
Several tests are performed such as –
1. Car’s alignment test

2. Wheels and turning radius test
3. Headlight test
4. Side-slip test
5. Engine drum test
6. Suspension test
7. Brake test
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5.2 Marketing and Sales
Initially the target customer will be the middle class people who feel that they are busy and
need to travel frequently with family members. They need cars to maintain a good life but
it is not economical for them to buy existing cars in the market as the price is quite high.
We will reach our potential customer by focusing that our car is cheaper and comfortable.
So instead of buying a bike, one can easily have a car.
Luxurious facilities will be excluded initially to reduce the manufacturing cost. So
customers can get a car at very low rate without compromising performance, speed and fuel
consumption.
Online marketing will be our primary target. It has lower cost but huge amount of customer
engagement is possible. We will make advertisement in the most prominent websites. The
detailed information will be in our own website. As there is a significant impact of audio-
visual content, we will continue our advertisement through facebook, youtube and other
social media by making different types of amazing contents.
Customer’s orders will be sent from the computers of the different dealerships to the
computer at the head office. Then the information in the orders will be passed on to the
appropriate staff in charge, who will give the instructions for production to the factory.
Orders received from customers all over Bangladesh and orders from overseas will be
passed on one by one to the factory.
After being finished and will be then loaded onto special trucks known as car carriers for
transportation. For dealerships in Bangladesh, the cars will be transported all the way on the
same truck, but for export, a ship will be used. First the cars will be taken to the port on a
car carrier, than a special ship for transporting cars will be taken them to other ports. From
there, they will be taken again by car carriers to the dealership, and from the dealership they
will be delivered to the customer.
For advertising and promotion we will give advertisement in newspapers and televisions,
by sending out press releases, we will broadcast our latest news in the media. We will
become a hub for the automotive community. We will also make partner with local schools
to educate students on driving and car care.
In case of online marketing, we will make sure that the business shows up in local search
results. We will promote advertisement in different highly visited websites especially in
social media such as Facebook and Youtube. We will also use cloud-based communication
tools for outbound marketing Calls and SMS. Encouraging clients to write online reviews
will make great impact to influence the customers to buy our product. We will also pair up
with online auto repair service network.
In case of sales promotion, we will give out pre-loaded gift cards for service discounts. We
will encourage to return visits with loyalty/rewards program.
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5.3 Resource Requirements
Although the bulk of an automobile is virgin steel, petroleum-based products (plastics and
vinyls) have come to represent an increasingly large percentage of automotive components.
The light-weight materials derived from petroleum have helped to lighten some models by
as much as thirty percent. As the price of fossil fuels continues to rise, the preference for
lighter, more fuel efficient vehicles will become more pronounced.
A large number of component parts go into assembling an automobile. Beyond the big basic
building blocks such as engines and transmissions, there are the interior parts such as
instrument panels, seats and HVAC systems, along with all the necessary wiring to tie them
together. Over the years, the materials used to build these various component parts have
changed somewhat, but the overall bulk of what goes into automotive manufacturing has
remained largely the same.
Figure 4 illustrates the overall material flow within the automotive manufacturing chain.
Here we can see that the required materials are -
1. Steel sheets
2. Aluminum sheets
3. Injection molded plastic parts
4. Iron
5. Aluminum
6. Copper
7. Brass
8. Zinc
9. Glass
10. Plastics pellet
11. Rubber pellet
12. Petroleum
13. Natural gas etc.
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Figure 4: The overall material flow within the automotive manufacturing chain
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Forming
No. of Blanking Stamping
Part Description
Parts Length Width Area Used Surface
[mm] [mm] [m2] Area [m2]
Front Door 2 1200 650 0.78 0.698
1200 1200 1.44 0.761
Rear Door 2 1100 700 0.77 0.49
1200 1100 1.32 0.549
Hood 1 1778 1270 2.258 1.957
1778 1270 2.258 0.979
Trunk 1 1500 850 1.275 1.062
1500 850 1.275 0.531
Floor Pan 1 2350 2000 4.7 3.41
Rear Wheel Well 2 1100 700 0.77 0.578
Trunk Pan 1 2000 1750 3.5 1.99
Firewall 1 800 1700 1.36 1.05
Rear Bulkhead 1 1550 1800 2.79 1.78
A Pillar 2 800 200 0.16 0.115
B Pillar 2 250 1000 0.25 0.199
C Pillar 2 350 1000 0.35 0.123
Roof 1 1600 1300 2.08 1.753
Body Side Outer 2 3500 1250 4.375 1.667
Rockers 2 1800 210 0.378 0.362
Front Fender 2 1350 800 1.08 0.439
Roof Cross Members 2 1200 200 0.24 0.196
Table 4: Material Required for Blanking and Stamping Operation with respect to unit
production
Table 4 illustrates the material required for blanking and stamping operation with respect to
unit production. We have to use the materials in this proportion to manufacture the above
mentioned parts.
Independent Variables
Operation
Variable Units Value
Forming Blanking Final Part Area (Top) m2 1.667
length of Blank m 3.5
29
Width of Blank m 1.25
Parts Blanked/min part/min 8
No. of Times Blanked 1
Stamping No. of Times Stamped 1
Parts Stamped/min part/min 8
Joining Spot Welds No. of Spot Welds 500
Arc Welds Length of Arc Welds m 0.003
Electrode Diameter mm 2
Wire Feed Rate m/s 0.148
Gas Flow Rate cfh 25
Travel Speed m/s 0.072
Current Amps 300
Voltage V 26
Laser Welds Length of Laser Welds m 0.254
Travel Speed m/s 0.072
Adhesive
Length of Joint m 9
Joints
Price of Adhesive BDT/gall 25000
Table 5: Detailed Calculation for Outer Body Side
Table 5 illustrates a detailed calculation for outer body side of an automobile. There are
different types of operations such as blanking, stamping, spot welding, arc welding, laser
welding etc. The specifications are listed in the table.
5.4 Scheduling
Figure 5 illustrates a Gantt chart. First of all individual tasks are listed in the task name
column. The start date determines the start position of the task bar and End date determines
the end position of the task bar. The duration of a task determines the length of task bar.
Here type of duration as a number of day. Rough planning will be done in the first three
months. 3-6 months will be needed to complete incorporation of the company. It includes –
 Business License – This is required for a sole proprietorship and can be obtained from
the city or county clerk.
 Tax Identification Number – We must apply with the IRS for a tax identification number
if we have any employees or if we organize as a corporation. If we organize as a one-
person sole proprietorship, our Social Security number is our tax identification number.
If we organize as a partnership, we must apply with the IRS for a partnership
identification number.
 Labor Commission Registration – If we employ workers in a manufacturing operation,
we must register with the Labor Commission through the Department of Labor.
30
Duration
Task Name Start End
(Days)
SL. No.
1-Apr-19
30-Jun-19
24-Jun-20
19-Jun-21
14-Jun-22
28-Sep-19
27-Dec-19
22-Sep-20
21-Dec-20
17-Sep-21
16-Dec-21
12-Sep-22
26-Mar-20
21-Mar-21
16-Mar-22
1 Rough planning 1-Apr-19 30-Jun-19 90 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0

2 Time to complete incorporation of the company 30-Jun-19 27-Dec-19 180 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0
3 When will management team be hired 30-Jun-19 28-Sep-19 90 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0
4 Raw material collection 28-Sep-19 27-Dec-19 90 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0
5 Human resource collection 28-Sep-19 27-Nov-19 60 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0
6 Equipment Installation 27-Nov-19 24-Jun-20 210 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0
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7 Building Infrastructure 27-Nov-19 21-Nov-20 360 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0
8 Prototype design 21-Nov-20 20-Jan-21 60 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0
9 Prototype production 20-Jan-21 20-Apr-21 90 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0
10 Prototype testing and finalization 20-Apr-21 19-Jul-21 90 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0
11 Mass production 19-Jul-21 15-Jan-22 180 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0
Figure 5: Gantt Chart for the Project

12 Quality check 17-Sep-21 16-Mar-22 180 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0
13 The projected date for the product to hit the market 15-May-22 14-Jul-22 60 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0
14 When will orders be able to be placed 20-Apr-21 17-Sep-21 150 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0
15 When will orders be able to be delivered 14-Jun-22 12-Sep-22 90 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1
 Using Permit – This may be required for home-based businesses in areas zoned for
residential if us plan to operate our shop on the same property on which us live. Contact
the city zoning board for a use permit.
3-6 months will be taken to hire management team. Raw material will be collected within
the next three months. In the meantime, others employees and labors will be recruited.
Almost one and half year will be needed to collect and install the equipments and
machineries. 20 months will be taken for building necessary infrastructure. A prototype
will be designed within 20 to 22 months. Prototype will be produced in 22-25 months.
Prototype testing and finalization will be done in 28 months. We will start mass
production in 34 months. Within 40 months our product will be available in the market.
6. PERFORMANCE EVALUATION AND MONITORING

6.1 Monitoring Ad Campaigns
The procedure we will follow to monitor ad campaign is as follows-
1. Defining the channels we want to track
To measure the success of our ad campaign, we will divide our marketing derived traffic
into subgroups that are more typically referred to as channels such as-
 Direct – These are potential customers that find our business in a direct manner
without being directed there by other parties. An example of this is a person that saw
our web address on a print ad and typed it into their web browser to get information
about our product.
 Referral – These are potential customers that find their way to our site via a third
party that did not use a social media site or a search engine to get to us. Maybe our
company will give the third party something like a referral bonus for this or we have
a mutual agreement to have links to each other’s sites on our individual websites.
 Organic – This is people that find our company through search engine such as
Google. They generally were looking for a type of product or service our company
offers, but they were not specifically looking for our company. Many times there
will be a UTM (Urchin Tracking Module) parameter that is set up to help them find
us.
 E-mail – These potential customers are people that came to us through such things
as an e-mail campaign that we put on.
 Paid – These are potential customers that came to us as a result of an ad campaign
that we paid for such as a print ad in a newspaper or an ad on a web content site.
 Social – These are people that found us while surfing through social media sites
like Twitter and Facebook. There are hundreds of websites which fall into this
category.
 None – This is a catch-all category (it does not necessarily have to be called “none”)
that all the people who find us through other channels than those mentioned above
are placed.
2. Defining the Marketing Metrics We Want to Measure
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Marketing metrics are simply a collection of numerical data that allows us to get some
perspective on a marketing campaign to see if it met the goals our company set for it. There
are several different ways we can generate data with which to form a specific metric. Here
are a few ways in which this will be done:
 Web content – This is the study of how effective what we place on our website is
at both informing the people who visit the site and getting them to take some action
as a result; this shows that the quality of the content actually was good enough that
those people followed along all the way to the actionable task us set.
 Lead conversion – This is gathering data on people from the first time they come
into contact with our marketing strategy and then follows them all the way through
the different stages of the lead generation process. This includes the initial contact,
then on to being a sales prospect and all the way to becoming an actual customer.
This metric will track where we lost potential customers in the lead process and help
us develop theories as to why.
 Individual visitors – This is data that tracks when an individual user first visits our
website during a specific period of time and how many times that same person came
back to visit it again. This metric lets us see how effective each phase of a specific
marketing plan was.
 Tracking new visitors versus returning one’s – This metric helps us to establish
how effective new site content drives traffic to our website. This is one method that
is not easy to get accurate. It is sometimes best done by actually asking the people
who visit our website why they came there the first time or what it was that peaked
their interest to make them come again.
 Click through rate (CTR) – This most likely will include a web page on our site
that has an action that needs to be performed in order for the viewer to proceed along
further in an information gathering or sales process. It will measure such things as
how many people visited the webpage and went no further or how many people
visited the web page and initiated the actionable step.
 Bounce rate – This is the metric that causes many marketers or web content
developers to lose their job or get demoted. It is compiled data on how many viewers
go to one of our web pages and then leave without visiting anything else or taking
any actionable steps.
 Page views – This metric measures a number of pages each visitor to our site looks
at. Us can also do such things with it as learn how much time a visitor spent on a
webpage to get a feel for which ones were appealing to them. The more times a page
was viewed, and the longer people viewed it could help us measure a marketing
campaign’s success even if no action was performed by the user.
 Search engine referrals – Many search providers such as Google have special ways
to track what keywords people used that landed them on our site and which search
engines directed those same people to us.
 Social media effectiveness – We will use such things as ‘likes’ on Facebook and
‘mentions’ on Twitter to measure the effectiveness of our advertising there. There
are also other tools built into social media sites for tracking purposes too.
 Word-of-mouth – Maybe the age of the door to door salesman has come to an end
but never overlook direct customer feedback when establishing the effectiveness of
our marketing campaigns. Some ways in which consumers were led to becoming
customers of our product or service will never be known unless we ask them. We
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can do this by using such things as a follow-up surveys or asking a question on the
purchasing form.
3. Measuring Our Campaigns

Once we have done the planning for how us will track and measure our marketing campaign
as well as set the parameters for it, and then it is time for the actual tracking to take place
once our campaign has gone into effect.
 Measuring our “search” marketing performance – Google Analytics is very

necessary to measure traffic and other data that has to do with the traffic pertaining
to our website, but it alone is not enough anymore. Here are some other things that
pertain to search functions that are very relevant to marketing strategy.
 SEO Position – For years many businesses have been obsessed with site
ranking but that is starting to change as search engines like Google are
constantly changing the way searches are done when using them. But make
no mistake about it; SEO ranking is still very important.
 Pay-per-click ads – This is best done by what is known as ‘Dynamic
Number Insertion’. It is a code that is imbedded into a webpage that will help
us to track conversions from all of our tracking resources.
 Measuring the Effectiveness of Our Social Media Marketing – All of the major
social media sites have built-in analytics that helps us track the effectiveness of our
posts and other messages that us put on them.
 Measuring Print Ads and Other Media – This is done by making a dedicated webpage
on our site that can only be linked out of so us know what the source for those links are.
Setting up tracking URL’s is also a good way of doing this type of thing.
4. Tools For Measuring The Effectiveness Of Marketing Campaigns

Here are some tools that we will use tracking the effectiveness of our marketing campaigns-
 Google Analytics
 Kissmetrics – Funnel Reporting
 Marketo
 RapidMiner
6.2 Profit and Loss Statements

6.2.1 Income Statement
Table 6 illustrates the cost of goods manufactured, cost of goods sold and the income
statement for the first seven years of our production. The calculations shows that net income
i.e. net profit is 9-15% of total sales for the first four years. Then it is increased to more than
21% in the seventh year. The reason is that fixed costs are not increasing in proportion to
the production level although variable costs are linearly increased.
34
1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year
Raw material Inventory at the
0 100,000 100,000 100,000 100,000 100,000 100,000
beginning of the year
Raw material purchased 51,250,000 74,750,000 100,500,000 124,750,000 149,000,000 175,250,000 200,500,000
Raw materials available for use 51,250,000 74,850,000 100,600,000 124,850,000 149,100,000 175,350,000 200,600,000
Raw material Inventory at the end of
100,000 100,000 100,000 100,000 100,000 100,000 100,000
the year
Raw material used in Production 51,150,000 74,750,000 100,500,000 124,750,000 149,000,000 175,250,000 200,500,000
Direct labor 20,400,000 29,900,000 40,200,000 49,900,000 59,600,000 70,100,000 30,000,000
Utility 7,500,000 9,350,000 12,500,000 15,500,000 18,000,000 22,000,000 25,000,000
Depreciation 15,500,000 20,500,000 26,500,000 30,500,000 38,500,000 45,500,000 48,500,000
Insurance 3,000,000 6,500,000 8,000,000 9,000,000 9,500,000 10,000,000 10,500,000
Indirect labor 16,500,000 26,500,000 32,500,000 35,500,000 40,500,000 46,000,000 56,000,000
Maintenance 3,500,000 7,500,000 9,550,000 9,750,000 9,900,000 10,000,000 11,500,000
Total Overhead cost 46,000,000 70,350,000 89,050,000 100,250,000 116,400,000 133,500,000 151,500,000
Cost of goods Manufactured 117,550,000 175,000,000 229,750,000 274,900,000 325,000,000 378,850,000 382,000,000
Finished good inventory at the
35
0 2,341,137.12 1,714,552.24 2,754,509.02 2,181,208.05 0 476,309.23
beginning of the year
Goods available for sale 117,550,000 177,341,137 231,464,552 277,654,509 327,181,208 378,850,000 382,476,309
Finished good inventory at the end of
2,304,902 1,779,343 2,878,912 2,225,687 0 540,442 1,430,709
the year
Cost of goods sold 115,245,098 175,561,795 228,585,640 275,428,822 327,181,208 378,309,558 381,045,600
Sales 200,000,000 300,000,000 400,000,000 500,000,000 600,000,000 700,000,000 800,000,000
Gross margin 84,754,902 124,438,205 171,414,360 224,571,178 272,818,792 321,690,442 418,954,400
Administrative Expense 28,500,000 38,500,000 47,000,000 57,000,000 67,500,000 78,500,000 98,500,000
Selling Expense 16,320,000 24,650,000 28,320,000 35,320,000 40,500,000 44,000,000 54,000,000
Advertisement Expense 11,500,000 17,500,000 25,500,000 32,500,000 40,500,000 45,500,000 55,500,000
Reasearch and Development 9,000,000 12,000,000 17,500,000 19,500,000 20,500,000 22,500,000 28,500,000
Total Non-manufacturing Expense 65,320,000 92,650,000 118,320,000 144,320,000 169,000,000 190,500,000 236,500,000
Net Operating Income 19,434,902 31,788,205 53,094,360 80,251,178 103,818,792 131,190,442 182,454,400
Income Tax 971,745 1,589,410 2,654,718 4,012,559 5,190,940 6,559,522 9,122,720
Net Income 18,463,157 30,198,795 50,439,642 76,238,620 98,627,852 124,630,920 173,331,680
Net Income as percentage of sales 9.23% 10.07% 12.61% 15.25% 16.44% 17.80% 21.67%
Table 6: Income Statement (BDT)

6.2.2 Payback Period and IRR
Table 7 illustrates the payback period and the Internal Rate of Return (IRR). The payback
period is 5.21 years that means we will be able to recover our investment within 5 years and
3 months if we can produce and sell the desired amount of cars.
Initial Payback
Cash outflow Cash inflow Net cash flow Cumulative net
Investment Period IRR
(BDT) (BDT) (BDT) cash flow
(BDT) (years)
(300,000,000)
1st year (183,941,745) 200,000,000 16,058,255 (283,941,745)
2nd year (269,239,410) 300,000,000 30,760,590 (253,181,155)
3rd year (350,724,718) 400,000,000 49,275,282 (203,905,873)
5.21 13.55%
4th year (423,232,559) 500,000,000 76,767,441 (127,138,432)
5th year (499,190,940) 600,000,000 100,809,060 (26,329,372)
6th year (575,909,522) 700,000,000 124,090,478 97,761,106
7th year (627,622,720) 800,000,000 172,377,280 270,138,386
Table 7: Payback Period and IRR
6.2.3 Break-Even Analysis
Figure 6: Break-Even Analysis for 1st Year
Figure 6 illustrates the break-even point for the 1st year production. During this period, we
will sell 1000 units of car and the break-even point is 856 units and the break-even selling
amount is BDT 171,261,538.
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Figure 7: Break Even Analysis for 2nd Year
Figure 7 illustrates the break-even point for the 1st year production. During this period, we
will sell 1500 units of car and the break-even point is 1254 units and the break-even
selling amount is BDT 250,769,231.
Break Even Break Even Total Selling Total Selling
Year
(Units) (BDT) (Units) (BDT)
1st Year 856 1000 200,000,000
171,261,538
2nd Year 1254 1500 300,000,000
250,769,231
3rd Year 1595 2000 400,000,000
319,030,769
4th Year 1881 2500 500,000,000
376,261,538
5th Year 2195 3000 600,000,000
439,076,923
6th Year 2492 3500 700,000,000
498,461,538
7th Year 2985 4000 800,000,000
596,923,077
Table 8: Break Even Analysis for first 7 years

Table 8 summarizes the break-even points for the first 7 years of production.
6.3 Meeting Schedule
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Preparing meeting schedule helps us make sure we are on track to meet each milestone and
enables us adjust the plan as necessary. Following steps will be followed-
1. Creating a List of Accomplishments and Shortcomings

It’s important to evaluate where we have been before we can figure out where we are going.
We must know what worked and what didn’t. So we will take an honest look at our business
and create a list of what we did well (accomplishments) and what didn’t go so well
(shortcomings). We will go through accomplishments first and write a large list on a white
board. Then we will take a picture so nobody has to transcribe the list while we are shouting
out answers. Inevitably, during our discussion of shortcomings, we will remember other
accomplishments so we have a blank space on the white board to write those down. We will
encourage our staff to speak without feeling shy about the answers. How comfortable they
are in sharing their thoughts is a reflection of our company culture.
2. Reviewing Company Values
Everyone at our company will be a framed list of company values in their office. The list is
simple, about 4 lines. It provides a lens from which we can ensure that new goals are in line
with what is important to us. This part of the strategy meeting agenda is usually fairly quick,
but it is an important reminder that sets the stage for the next series of topics.
3. Answering The Strategic Planning Questions
This is the longest portion of our strategy meeting. Talking about SWOT – strengths,
weaknesses, opportunities, and threats. Looking at our competitors to see what they are
doing better than us and how we can change to compete.
4. Ranking Each Task by Difficulty, Value and Priority
Once we have a detailed list of ideas for the next 12 months, we need to prioritize them.
Every company has limited resources. If we focus on irrelevant activities, we will limit our
growth. Setting priorities is an essential part of our strategy meeting agenda.
Next to our newly created list of goals, add three columns: difficulty, value, and priority.
We will assign a number from 1-10 for difficulty and value and 1-3 for priority.
5. Setting Milestones and Assign Accountability
We will create a spreadsheet for each quarter that lists each task and who is responsible for
working on it. Then we will add deadlines and milestones so we can tell if we are on track.
6. Monthly Meeting
We will not invest all the time to hold a strategy meeting and then let our action items sit on
a shelf collecting dust. We will arrange a monthly meeting to review our strategic planning
goals. This means we will have just 3 meetings per quarter. We will use these high level
meetings to make course corrections and adjustments to our plan.
38
We will also meet weekly to go over specific tasks that dive into the details of each high
level goal. These weekly meetings supplement that strategic topics covered in each monthly
meeting.
Over time, we may find that some of the goals from our strategy meeting are no longer
appropriate. We will be flexible enough to recognize that we may need to make changes
before our next business plan meeting.
6.4 Sales Force Evaluation

1. Gathering Information
The individual salesperson will provide much of the information upon which evaluation will
take place. They will provide head office with data relating to sales achieved by product and
customer, a daily or weekly report of the names of customers called on and problems and
opportunities revealed, together with expense claims. Such information will be
supplemented by sales management during field visits. These are important in providing
more qualitative information on how the salesperson performs in front of customers, as well
as giving indications of general attitudes, work habits and degree of organizational ability,
all of which supplement the more quantitative information provided by the salesperson.
Market research projects can also provide information on the sales team from customers
themselves. A specific project, or a more general one which focuses on the full range of
customer–seller relationships, e.g. delivery, product reliability, etc., can provide information
on salespeople’s performance. Finally, company records will provide a rich source of
information for evaluation. Records of past sales levels, calls achieved, expense levels, etc.
can provide bases for comparison and indications of trends that can be used both for
evaluation and objective setting.
2. Quantitative Measures of Performance
Assessment using qualitative performance measures falls into two groups. For both groups,
management may wish to set targets for their sales team. One group is a set of input
measures which are essentially diagnostic in nature – they help to provide indications of
why performance is below standard. Key output measures relate to sales and profit
performance. Most companies use a combination of input (behavioral) and output measures
to evaluate their salesforces.
Specific output measures for individual salespeople include the following:
 Sales revenue achieved

 Profits generated
 Percentage gross profit margin achieved
 Sales per potential account
 Sales per active account
 Sales revenue as a percentage of sales potential
 Number of orders • sales to new customers
 Number of new customers.
39
All of these measures relate to output. The second group of measures relates to input and
includes:
 Number of calls made

 Calls per potential account
 Calls per active account
 Number of quotations (in part, an output measure also)
 Number of calls on prospects.
A further group of quantitative measures will explore the remuneration which each
salesperson receives. The focus will be on expenses and compensation. With respect to
expenses, comparisons will be made between salespeople and between current year and last
year. Ratios which may be used include the following:
 Expenses/sales revenue generated

 Expenses/profit generated
 Expenses per call
 Expenses per square mile of territory
7. FINANCIAL INFORMATION
7.1 Financial Capsule
Financial Capsule is also known as flash numbers. Financial information included in an
offering document for a securities offering that covers a time period more recent than the
periods covered by the latest full financial statements in the offering document and that is
neither audited nor reviewed by accountants.
The American Institute of Certified Public Accountants has issued a white paper that is
generally referred to by counsel and auditors when discussing whether auditors can provide
the initial purchasers or underwriters of a securities offering with comfort on fourth quarter
and full-year capsule financial information.
Table 9 illustrates the financial information for the first 7 years of production -
Net Net Income

Sales Gross margin Operating Net Income as
(BDT) (BDT) Income (BDT) percentage
(BDT) of sales
1st Year 200,000,000 84,754,902 19,434,902 18,463,157 9.23%
2nd Year 300,000,000 124,438,205 31,788,205 30,198,795 10.07%
3rd Year 400,000,000 171,414,360 53,094,360 50,439,642 12.61%
4th Year 500,000,000 224,571,178 80,251,178 76,238,620 15.25%
40
5th Year 600,000,000 272,818,792 103,818,792 98,627,852 16.44%
6th Year 700,000,000 321,690,442 131,190,442 124,630,920 17.80%
7th Year 800,000,000 418,954,400 182,454,400 173,331,680 21.67%
Table 9: Financial Information for 7 years
7.2 Financial Assumptions
 The first key assumption is the rate of return we use for the growth of our investment.
 The second key assumption is on the rate of inflation.
 The third assumption is the standard deviation used for investment returns. Typically
higher investment rates of return indicate a higher standard deviation. The higher the
standard deviation, the more volatile the portfolio returns are expected to be.
Volatility can often lead to a lower probability of success.
 Market conditions is expected to steadily increase by 15% per year
 Equipment performance/durability will result in a lower operations cost after year 2
7.3 Budget
7.3.1 Raw Material Budget
1st Year 2nd Year 3rd Year 4th Year 5th Year
Steel Sheet 598.5 808.5 987 1,197 1,417.5
Plain Steel 256.5 346.5 423 513 607.5
Cast Iron 85.5 115.5 141 171 202.5
Non Ferrous 128.25 173.25 211 256.5 303.75
Plastics 128.25 173.25 211 256.5 303.75
Rubber 85.5 115.5 141 171 202.5
Others 142.5 192.5 235 285 337.5
Total 1,425 1,925 2,350 2,850 3,375
Table 10: Raw Material Budget (BDT in billion)

Table 10 illustrates the budget for various types of raw materials we will use in production
for the first 5 years. The major portion of the budget is for steel sheet and plain steel. Others
raw materials include cast non-ferrous materials, plastics, cast iron, rubber etc.
7.3.2 Infrastructure and Equipment Budget as Initial Investment
Operation Equipment Amount
41
Press 25,000,000
Stamping Die 10,000,000
Others 5,000,000
Welding
Joining 30,000,000
Machine
Machine Setup 15,000,000
E-coating
Material 5,000,000
Pre-assembly Setup 5,000,000
Assembly Setup 5,000,000
Total 100,000,000
Land Cost 140,000,000
Building Cost 60,000,000
Total 200,000,000
Total 300,000,000
Table 11: Infrastructure and Equipment Budget (BDT)

Table 11 illustrates the infrastructure and equipment budget. There are different types of
equipments and machineries to perform stamping, joining, e-coating, pre-assembly and
final assembly. The costs for these equipments are shown in this table. Land cost and
building cost are also included.
7.3.3 Administrative Budget
Employee
19,950,000 26,950,000 32,900,000 39,900,000 47,250,000
Salary
Human
3,420,000 4,620,000 5,640,000 6,840,000 8,100,000
Resource
Utilities 3,705,000 5,005,000 6,110,000 7,410,000 8,775,000
Others 1,425,000 1,925,000 2,350,000 2,850,000 3,375,000
Total 28,500,000 38,500,000 47,000,000 57,000,000 67,500,000
Table 12: Administrative Expense Budget (BDT)
42
7.3.4 Advertisement Budget
Table illustrates the advertisement budget for the first 5 years -
Print 1,725,000 2,625,000 3,825,000 4,875,000 6,075,000
Radio 1,380,000 2,100,000 3,060,000 3,900,000 4,860,000
TV 1,150,000 1,750,000 2,550,000 3,250,000 4,050,000
Social Media 4,945,000 7,525,000 10,965,000 13,975,000 17,415,000
Online
2,300,000 3,500,000 5,100,000 6,500,000 8,100,000
Advertisement
Total 11,500,000 17,500,000 25,500,000 32,500,000 40,500,000
Table 13: Advertising Budget (BDT)

Table 13 illustrates the budget for advertisement in different media such as print media,
radio, television, social media and online advertisement. Among all of them, we will
always focus on social media platform such as facebook, youtube and so on.
7.3.5 Selling Expense Budget
Store displays 3,264,000 4,930,000 5,664,000 7,064,000 8,100,000

Sales staff
4,080,000 6,162,500 7,080,000 8,830,000 10,125,000
salaries
Rent expense 5,712,000 8,627,500 9,912,000 12,362,000 14,175,000
Store supplies 1,958,400 2,958,000 3,398,400 4,238,400 4,860,000

Sales staff
1,305,600 1,972,000 2,265,600 2,825,600 3,240,000
commissions
Total 16,320,000 24,650,000 28,320,000 35,320,000 40,500,000
Table 14: Selling Expense Budget (BDT)

Table 14 shows different types of selling expenses such as store displays, sales staff
salaries, rent expense, store supplies and sales staff commissions.
7.3.6 Manufacturing Overhead Budget
Manufacturing overhead budget for 5 years
43
Utility 7,500,000 9,350,000 12,500,000 15,500,000 18,000,000
Depreciation 15,500,000 20,500,000 26,500,000 30,500,000 38,500,000
Insurance 3,000,000 6,500,000 8,000,000 9,000,000 9,500,000
Indirect labor 16,500,000 26,500,000 32,500,000 35,500,000 40,500,000
Maintenance 3,500,000 7,500,000 9,550,000 9,750,000 9,900,000
Total 46,000,000 70,350,000 89,050,000 100,250,000 116,400,000
Table 15: Manufacturing Overhead Budget (BDT)

Table 15 illustrates the manufacturing overhead budget that includes factory utility,
depreciation, insurance, indirect labor cost and maintenance cost.
7.4 Sales Projections (5 years)
Table 16 illustrates the number of cars that will be sold and corresponding selling price for
the first seven years -
Net Net
No. Gross
Sales Operating Net Income Income as
Year of margin
(BDT) Income (BDT) percentage
Cars (BDT)
(BDT) of sales
1st
1000 200,000,000 84,754,902 19,434,902 18,463,157 9.23%
Year
2nd
1500 300,000,000 124,438,205 31,788,205 30,198,795 10.07%
Year
3rd
2000 400,000,000 171,414,360 53,094,360 50,439,642 12.61%
Year
4th
2500 500,000,000 224,571,178 80,251,178 76,238,620 15.25%
Year
5th
3000 600,000,000 272,818,792 103,818,792 98,627,852 16.44%
Year
6th
3500 700,000,000 321,690,442 131,190,442 124,630,920 17.80%
Year
44
7th
4000 800,000,000 418,954,400 182,454,400 173,331,680 21.67%
Year
Table 16: Sales Projections for 7 Years
Table 16 illustrates the sales projections for the first 7 years of production along with gross
margin, net operating income and net income.
8. CONTINGENCY PLANS
8.1 Symptoms of Failure
Declining Sales
Success for our business means increasing sales each year and at an ever-increasing rate. If
the rate of sales growth slows significantly or even worse, if sales decline year-over-year, it
could mean our company is in danger of failure. The situation may be remedied by making
changes to the company's marketing strategies and methods and by refocusing the message
it delivers to customers to persuade them to buy. Declining sales could be a result of a
change in customer tastes and preferences, or the company's products may be on the
downside of their life cycles. In either case, to avert eventual failure of the business, we
must change the features of our product to offer those more in line with customers' up-to-
date preferences.
Rise in Customer Complaints
A significant increase in the number of complaints received from customers because they
are not satisfied with their purchase or the post-purchase service they received is an early
warning sign of potential trouble for a company. A drop in customer satisfaction can quickly
turn into a drop in customers. Dissatisfied customers no longer purchase from us and tell
others about the negative experience they had. The business owner and her staff need to find
out the primary causes of customer dissatisfaction and implement changes in the company's
operations to address them.
Cash Deficits
We may find that certain months of the year are better than others in terms of cash flow -
the money collected from selling the company's products. Our company may encounter a
month in which it experiences a cash deficit when the company's expenses exceed the cash
that it earned. A one-time deficit can be remedied by drawing down the company's credit
lines. Persistent deficits over a period of months, however, point to serious issues with the
business. If our company exhausts its cash reserves or borrowing capacity, it will likely fail.
Loss of Key Customers
A business that relies on a small number of key customers for the bulk of its revenue can be
in serious trouble when it loses one of these to a competitor. It could be a sign that
competitors have come out with superior products. The business owner needs to quickly
45
identify the reasons that longtime customers are leaving and make changes to the company's
strategies to prevent the further loss of customers.
Drastic Spending Cuts
To a company's employees, competitors and vendors, a CEO's decision to reduce the
workforce or administrative staff levels is a sign that the financial condition of the company
is deteriorating and there is potential for business failure. Cutting costs only works to a
certain extent; it is a short-term remedy for a cash deficit position rather than a solution to
restore the company to growth and financial health. For example, cutting the marketing
budget can lead to further loss of market share, lower sales and an increased chance the
business will not survive.
8.2 Alternative Strategies

Analyzing Competitors’ Strategies
We will analyze the strategies of our competitors and how successful they have been. In
every industry and market niche, there are companies that are winners and an important
reason is the success of their marketing strategies. For example, a business owner who sees
that the strongest competitors emphasize social media to generate customer leads should
determine whether her own social media strategy is effective. He may have to change the
methods he uses, such as developing and promoting a blog to establish herself as an industry
expert in the eyes of customer prospects.
Evaluating Strategic Success
Developing a new marketing plan requires evaluating what strategies worked well in the
previous year’s plan. We will discard strategies that did not work well or retool them. For
example, if our internet advertising campaign will not effective, we will shift these money
to print advertising instead. Or we will change the keywords used in the ads to better reach
the company’s target customers.
Considering Available Resources
Like every business, our marketing budget is limited, and it is critical that every strategy
implemented has the potential to generate greater revenues than the year before. When
preparing a strategic plan, we will look at the previous year’s marketing expenditures and
marketing staff levels to whether we can afford to increase them and by how much.
Identifying alternative plans involves making difficult choices about what the company can
afford to do. It is likely we will identify more strategies with great potential than we have
the resources to implement.
Strategic and Tactical Experimentation
Part of the growth process for our business is the evolution of the company’s marketing
strategy. The company’s target markets, distribution channels and marketing message all
change over time. Keeping the company growing at a fast pace requires strategic
experimentation, trying different strategies and action plans than the company used in the
past. Not all of these experiments will be successful. We will limit the risk associated with
46
new strategies by implementing them cautiously. For example, a strategy to market in three
additional region could be implemented one region at a time, and one city at a time in each
region. If the initial market expansion efforts pay off, we can accelerate the timetable.
Set Growth Objectives
Our long-term vision shapes the strategic plan alternatives we consider. If we believe it is
imperative to grow rapidly and capture market dominance before competitors are able to,
the strategies we consider may be different than an owner who seeks steady but slower
growth. In the first case, we may have to implement a large-scale advertising campaign,
which may require obtaining additional capital to implement. The slower-growth path could
emphasize building the business through word-of-mouth referrals from satisfied customers,
while paying for the marketing program with internally generated cash.
8.3 Potential Problems and Solutions

Lack of Finances
Cash flow is essential for startups to survive. One of the key challenges that the businesses
face today relates to finances. As income increases, the expenditures also increase and to
top it all, startups rely heavily on investors who provide them strong financial support. When
such situations arrive, startups are the first ones who lose on properly managing their
finances, and eventually succumb to the pressure. While entrepreneurs have to make sure
that they have enough funds to go around, in the meantime, they also have to pay their
employees, contractors, mortgage, and grocery bills.
Solution
As a rule of thumb, startups should always find ways of minimizing their costs. Invoice
factoring is another way of speeding up the account receivable processes in startups. In this
digital age when invoice payments are made through mobile phones, there is no harm to
request immediate payments from clients. It is also very important to secure credit before
any business needs it as they can easily find out how much cash they will likely need to
survive. Finally, using accounting software to keep tab on money coming in and out of the
business is also a good idea.
Poor Business Planning
Proper planning is the key for startups to get their businesses off the ground. In this
technological landscape, writing a formal business plan based on a vague requirement of
some institution is suicidal. Due to poor planning, many businesses fail in the very first year
because they do not effectively factor in challenges and pitfalls. Even if the startups have
innovative ideas and ambitions, but their business plans lack perspective, they are doomed
to fail or they have to continuously devise and change them.
Solution
Before launching the business, it is important for startups to carry out a thorough research
by investigating from suppliers to taxes to competitor prices. This approach is the bedrock
for a successful business, which needs to be viewed in holistic way so that vision for the
47
product is aligned with the identified target audience. Writing effective business plan helps
startups to define what the business is, the market it serves, how it will conduct operations,
and the money it will make and spend.
Lack of Proper Marketing Strategy
It is always a challenge for startups to figure out best ways to market their products or
services. The fact that small businesses need to maximize their return on investment with
efficient and result oriented targeted marketing also makes them vulnerable in terms of trust
they have develop vis-à-vis customers. Without putting a comprehensive marketing strategy
in place, companies’ profits take a steep plunge.
Solution
Today’s digital technology has opened a broad spectrum of avenues for marketing in the
form of electronic, print, online, mobile, and video advertising. Startups more than ever need
to be adept at creating innovative marketing plans, placing advertisements, and letting
people know the worth of their products or services. To put it simply, a good marketing
strategy has vision, mission, and business goals. It should be able to explain the position and
role of a business’s products in the market. Proper marketing strategy fundamentally entails
efficiency with which customers are approached and encouraged their future loyalty towards
the product.
Lack of a Dedicated Team
Due to the lack of a proper team, our business will suffer immensely. Lack of commitment
aggravates frustration in the organization which quickly escalates into an open conflict. If
the team members start making under commitments due to the fear of being responsible or
blamed for failure, businesses will never achieve their goals.
Solution
A dedicated team with a diverse skill set is very important for the startups to grow and
succeed. There should be a proper synergy, coordination, and communication among the
members of a team. Any team is formed by the individuals who have different range of
capabilities with identical focus. This arrangement allows the members to help each other,
learn from each other, and put a concerted effort in order to achieve success. Diversity and
dedication of a team drives innovation.
Fierce Competition
Competition is the most inevitable challenge that startups face. In fact, startups have to bear
the brunt of facing two-way challenge: one coming from monopolistic businesses that have
dominated the market and making difficult for newcomers to emerge. Second, there are
countless startups that are launched regularly in the market having innovative ideas, so it is
highly likely to get swallowed by the shadow of other startups.
Solution
The good thing of competition is that it forces the businesses to come out with the best.
There is, in fact, a whole gamut of opportunities exist for entrepreneurs because switching
costs for most customers are low and many are willing to try new, relatively untested
48
products or services. To overcome competition, startups should research and analyze their
niche industry; should be unique and different in approach; and should be able to create,
implement, and track their business and marketing plan.
CONCLUSION
Considering few market realties; many more people are buying cars now than even few
years ago and this number is growing exponentially. One of the reasons is the continuously
increasing income level of the Indian consumers with the growth in the national economy.
This can be manifest by the increased affluence of the growing Indian middle class category,
ending in a very huge growth in personal vehicle possession. Research indicates a rise in
the consumption level of the Bangladeshi consumers and shift in the consumption pattern
from necessities towards discretionary consumption which include expenditure on
transportation in the form of passenger cars. There is a change in spending habits of the rich
urban households which converges with that of their counterparts in developed countries
and their priority expenditure includes purchase of branded apparels, foreign vacations and
purchase of passenger cars. Other reasons include availability of easy consumer financing,
tendency of the people to rely more on their personal vehicles and reduction in the prices of
the passenger cars. Intensifying global competition in the automotive industry and
constructing of pieces, and emphasizing the survival and viability of an industry's ability to
compete depend on its ability to compete. In this regard, countries are required to have
access to the latest technological findings, reduce the costs and prices, and improve product
quality. Bangladesh needs to put some effort to expand heavy industry as it can contribute
to economic development. The development in shipbuilding industry is an encouragement
indicating that there is a huge potential in developing other areas of heavy industry and
automobile manufacturing is one of them. The market condition is matured enough to go
for manufacturing import-substitute vehicles of different categories, bus, mini-bus, truck
and especially sedan for personal use.
49
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in-bangladesh/
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Future. Netherlands: Springer.
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Automobile Industry in Bangladesh - A Business Proposal

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Automobile Industry in Bangladesh - A Business Proposal

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Heaven’s Light is Our Guide

RAJSHAHI UNIVERSITY OF ENGINEERING & TECHNOLOGY

A BUSINESS PROPOSAL REPORT

Ahmed Sobhan Abir Md. Rakib Miah

Roll No. 145011 Roll No. 145014

Md. Nazmul Ahsan Shairan Md. Hasibul Hasan Santo

Roll No. 145012 Roll No. 145015

Department of Industrial & Production Engineering

Ahmed Sobhan Abir

Md. Nazmul Ahsan Shairan

Md. Hasibul Hasan Santo

Keywords: Automobile Industry, Business Proposal, Income Statement, Marketing

LIST OF TABLES AND FIGURES

CHAPTER 1: SITUATION ANALYSIS

1.1 Industry Analysis

1.1.1 Market Characteristics

1.1.2 Automobile Companies & Brands in Bangladesh

1.1.3 Global & Domestic Sales Status

1.2 Competitive Analysis

1.1.1 Key Benefits to the Customers

1.3 Customer Analysis

1.4 SWOT Analysis

2.2 Marketing Objective

CHAPTER 3: MARKETING STRATEGY

3.1 Market Segmentation Strategy

3.2 Targeting Strategy

CHAPTER 4: MARKETING PROGRAM

4.1 Marketing Mix

4.2 Loyalty Program

4.3 Customer Service and Support

4.4 Personal Selling

4.5 Trust and Credibility

CHAPTER 5: IMPLEMENTATION PLAN

5.1 Product Design and Development

5.1.1 Manufacturing Process of Automobile

5.2 Marketing and Sales

5.3 Resource Requirements

CHAPTER 6: PERFORMANCE EVALUATION AND MONITORING

6.1 Monitoring Ad Campaigns

6.2 Profit and Loss Statements

6.2.1 Income Statement

6.2.2 Payback Period and IRR

6.2.3 Break Even Analysis

6.3 Meeting Schedule

CHAPTER 7: FINANCIAL INFORMATION

7.1 Financial Capsule

7.2 Financial Assumptions

7.3.1 Raw Material Budget

7.3.2 Infrastructure and Equipment Budget

7.3.3 Administrative Budget

7.3.4 Advertisement Budget

7.3.5 Selling Expense Budget

7.3.6 Manufacturing Overhead Budget

7.4 Sales Projections (7 years)

CHAPTER 8: CONTINGENCY PLANS

8.1 Symptoms of Failure

8.2 Alternative Strategies

8.3 Potential Problems and Solutions

Figure No. Figure Name Page No.

1.1. Industry Analysis

PHP, a business conglomerate based in Chittagong, signed a deal with Malaysian

In 2016, Runner Automobiles signed a collaboration agreement with UM Motorcycles to

1.1.2 Automobile Companies & Brands in Bangladesh