ACKNOWLEDGEMENT

We the students of MBA DAY III B would like to show our gratitude to Allah Almighty
to whom all praise is due. Secondly we are extremely grateful to our course instructor
Mr. ……… for giving us the opportunity to work as a team in this project. We are
grateful to him for his invaluable help and advice without which this report would not
have been possible.

Most importantly we would like to thank the entire Management Team BUKHARI
GROUP for giving us the opportunity and the time to study their marketing functions,
practices relating to METRO CAB. Last but not the least we would like to thank Mr.
Shahid Rafiq Vice chairman EUROPCAR and BUKHARI GROUP or giving us the
time and opportunity to conduct an interview. We are grateful to him for answering our
innumerable questions and queries with utmost patience and forbearance. Without his
help and guidance our report would not have been culminated.
Lastly we would like to excuse ourselves for any grammatical errors and also if there are
any queries, we shall be looking forward to answer them at any time.

1
 EXECUTIVE SUMMARY

“Commitment to provide prompt and best available services to its valued

clients in the country”.

Metro cab was launched in an environment where there is a consistent and rapid increase
in the flow of traffic in Karachi. Statistics show that there are 48,350 taxis and yellow
cabs registered with the provincial Excise and Taxation Department in Karachi. Most of
the people perceive that ordinary taxis are cheaper than the Metro cab service but they
have to be made to understand and comprehend the risk of traveling in a local taxi and
the quality of the service provided by independent taxi drivers. A trust in the current and
potential consumers is to be developed that they are not being over charged by this cab
service and that it’s pricing may seem to be expensive but is fully justified once we look
at the safety precautions taken and the arrangement made by the registered Metro cab
service.

Our marketing plan constitutes thorough analysis of the segmentation, targeting and
positioning strategies executed by Metro Cab. We have also defined and explained our
service in terms of its benefits and features. Further more we have incorporated a
marketing strategy and a future analysis which is being carried out by Bukhari Group.
This report has played a vital role in enhancing our marketing knowledge in a practical
environment.

2
 COMPANY PROFILE
Bukhari group is a private company which offers services in
the fields of traveling and transportation. Bukhari Group offers
travel consultancy services, renting transportation modes such
as private road vehicles comprising of cars and an independent
airport cab service. Bukhari group offers:

 Bukhari travel agency

 Europcar (rent -a- car)
 Metro cab service

MISSION STATEMENT

“Commitment to provide prompt and best available services to its valued

clients in the country”.

Bukhari Travel Agency

Mr. Mohammed Rafiq Khan established the company under the name of “BUKHARI
TRAVEL AGENCY” in 1986. With the passage of time as the name Bukhari travel grew
more and soon become one of the prominent travel agency in Pakistan. This endeavor has
encouraged them to think for more extensions. At present, Bukhari travel agency is a
renowned name in this service sector which has allowed them to add more business in
their portfolio.

3
 EUROPCAR INTERNATIONAL

Europcar International is a corporation working under the existing laws of France with a
Share Capital of FRF 1,000,000,000/- having its registered office at 3 Avenue du Centre,
Guyancourt 78881, St. Quentin-enYvelines, France registered with Commerce of
Versailles bearing Ref. No. B 542065305. It is the largest car rental company of
European origin. Founded in Paris in the year 1949 that covers 110 countries and
territories of Europe, Africa, Asia Pacific, Caribbean, Middle East, India, Mexico, &
Pakistan. Europcar Pakistan possesses a very good team of trained, cultured, educated,
mannered personnel having well equipped with the driving skills.
Europcar Pakistan provides of its efficient transportation services by its convenient
located offices and a wide range of selection of quality vehicles i.e. Toyota Corolla,
Toyota Coaster, Toyota Hiaces, Honda Accord, Honda Civic, Suzuki Cultus, and
Daihatsu Coure of latest models at reasonable prices.

METRO CABS
In August 2001, a government body namely KPTS (Karachi Public Transport Society),
floated tenders to encouraged groups to participate for the introduction of new
transportation service as per government’s scheme for the development of Karachi in the
new millennium.
Bukhari group participated in it and finally got the proposal. Hence, under the name of
“METRO CAB”, the Bukhari Group launched the first international standard airport taxi
service of Pakistan in Karachi with 35 cabs.
At present, METRO CAB is operating with 120 cabs in Karachi,
35 cabs in Islamabad and 15 cabs in Lahore. Mr. Shahid Rafiq, the
current Vice President of the Bukhari Group, is very much
confident that with the passage of time and Pakistan being a
developing country the future is all metro cabs.

Mr. Shahid Rafiq

4
 (Vice chairman- Bukhari Group)

Bukhari Group’s Partner

Toyota central motor proves to be a supportive and a lucrative partner for Bukhari group
since they stepped into the league of a rent-a- car service business.
They support them in acquiring Toyota corolla cars on lease basis which helps them to
carry their rent-a-car business but their metro cab service is dependent on this. In the near
future, Toyota central motors is also planning to help Bukhari group to extend for more
services which will not only benefit the group only but also be a beneficial factor for the
Toyota motors as well.

5
 SITUATIONAL ANALYSIS
The situational analysis for metro cab can be bifurcated to the following segments

 Current market situation

 Competitors’ analysis

 Product analysis

CURRENT MARKET SITUATION

Present State of Affairs

The commuting industry of Pakistan is in dire state and needs radical reforms. Over the
last fifty years the people of Pakistan are not particularly happy with the conditions of the
busses, taxis, auto rickshaws and other automobiles used for traveling. Pakistan is a
growing economy with a tremendous GDP growth rate of 8.5% recorded in the last fiscal
year. Thus the people of Pakistan need to work hard to make Pakistan prosperous and
economically independent. The citizens would have to increase their productivity by
reducing their traveling time.

Statistics show that there are 48,350 taxis and yellow cabs registered with the provincial
Excise and Taxation Department in Karachi. Of the 23,650 registered yellow-black taxis,
10,000 each are registered under the serial number JL and JM, while 3,650 are registered
under JN serial number. Similarly, of the 24,700 registered yellow cabs, 10,000 each are
registered under PL and PG, 4,600 under PH and 100 under the NL serial number.

Environmental Factors

Metro cab was launched in an environment where there is a consistent and rapid increase
in the flow of traffic in Karachi. Keeping and fulfilling the societal need was an arduous
task which was be set by many hurdles. But the major hurdle was that the travelers
preferred the public busses as a safe and relatively inexpensive means of commuting.

6
Thus keeping this in mind, a marketing plan was created and is in the middle of being
properly launched that will make people realize that they are cutting down on their
productivity by traveling through the local bus system and undergoing a hectic and
troublesome journey through a public bus.

But there was a market for the cab companies although the market is small and needs to
be further developed. At present this market s further eroded by the local taxi system of
Pakistan.

Social Factors

Most of the people perceive that these taxis are cheaper than the cab service of a
registered company but they have to be made to understand and comprehend the risk of
traveling in a local taxi and the quality of the service provided by independent taxi
drivers. What’s important now is to develop trust in the current and potential consumers
that they are not being over charged by these cab services and that their pricing may seem
to be expensive but is fully justified once we look at the safety precautions taken and the
arrangement made by the registered service providers.
Examples are trained drivers and safer cars etc.

The market consist of people who belong to the affluent call of the society, or people who
use cab services occasionally thus making it economically viable for themselves to afford
it once it a while.

Economical Factors

A growing economy like Pakistan with a steadily rising per capita income this market is
sure to increase in volume in the very near future. Thus the Pakistani market is still in its
initial stages and needs to be educated, thus a potential of developing a huge market exist
for the registered cab service providers. What is important is to make sure that the
travelers understand the fact that cab service providers are offering a much better means
of commuting. The Pakistani market is growing at a rapid pace due to exponential
increase in the population, once awareness spreads about the safety on roads and the

7
general economic condition of the public improves the market will be set for making the
most use of these reliable cab service providers.

A driver of a Metro Radio Cab is paid Rs.2, 300 a month and 10% commission but even
then he is happy with his job and never wishes to drive a yellow cab because of the bad
reputation it has earned. They feel they are paid less but they earn respect more because
they are mannerly and educated and customers never fuss or argue over the fare because
they trust them.

8
 GOALS AND OBJECTIVES

The company believes in aggressively expanding its business to have year on year growth
in revenues and profits. Thus it has worked out for it self a list of goals and objectives,
that will help the company to remain focused and goal orientated.

Increase contracts with companies

As business plan strategy, the company plans to come in touch with as many companies
as possible and develop business relation ships with them. The company realizes that
there are many multi national companies and other local giants that have to be tapped to
generate considerable revenues. The immediate short term goal is to sign contracts with
local and foreign giants. These contracts will allow the metro cab service to serve the
employees of top notch companies and thus snatch a huge market share from other cab
companies.

Increase local usage

The company wants to significantly increase its consumption by the local public. Metro
Cab understand that how important are the individual customers to its business. The
company understands that it has to continue to provide quality service at a good pricing
so that the common man is comfortable using the service and thus increase it usage. For
this purpose the company’s service is always under check so that the services can be
made more appealing to the common man.

Increase its market share and improve its market standing

Metro Cab Company wants to increase its revenues manifolds by end the current fiscal
year. The company recognizes the fact that this is not possible with out taking drastic
measures to increase it market share. At the same time the company aims to reduce it

9
operating cost so that it could see a surge in its profits. But this would be done without
affecting the quality of service provided by the company. Thus the company plan to
launch internal training programs for its staff member so as to keep the employees
updated with the changing times and also to further improve the quality of services. All
these measure are aimed towards developing a huge market presence and market standing
of their services.

10
 COMPETITOR ANALYSIS

The completion for Metro Cab can be bifurcated into:

 Direct
 Indirect

Direct Competitors
The direct competitors include:

 City Radio Cab

 Karachi Cabs

City Radio Cab Service

It is operated with the booth it has in Karachi Cantt station. It has 11 Toyota Corolla
(XLI) 1300cc CNG fitted cars and they charge on the following rates.

 Cantt Station to City

Rs. 15/- per km. (Minimum charges Rs. 150/- with in 10 k.ms)

 From City to Cantt Station

Rs. 250/-

 City to Airport drop

Rs. 250/-

 Full Day
8 hours + 100 k.ms (free) = Rs. 1600/-

11
This taxi also offers services from Karachi Cantt to Gawader city as well. City Radio Cab
service is paying its drivers a basic salary of Rs. 2600 per month plus a 15% commission.
Mr. Mohammed Jamal, a private businessman and owner of City Radio Cab service,

looks after the affairs of the service from his office located at the Cantt Station.

Karachi Cab Service

Karachi cabs are operating from the offices in airport and Clifton, block 9.
They are operating with a fleet of 20 cars, all Nissan Sunny 1600 CC (model 2005), they
charge on the following rates.

 Airport to city
Rs. 15/- Per km. (Minimum charges up to 10 km. Rs. 150/-)

 Full Day
Rs. 1500/-(Including Fuel Charges 8 hours & 100 k.ms)

 City to Airport
Rs. 250-(Including Calling Charges)

This service is owned by another private party, which wants to exceed with a motive to
bring development in the Karachi transportations services.

Indirect Competitors
The indirect competitors include:

 Black cabs
 Yellow Cabs

12
BLACK CABS

These are one of the oldest Cabs one can find in the city of Karachi.
They are of very old Toyota Corolla model, mostly on LPG fuel,
which is injurious to health. They don’t charge a uniform fare rate. The
taxis are not clean and the drivers are not trained.

YELLOW CABS

The Prime Minister Nawaz Sharif started this taxi service in the early
90s. Government provided taxies on soft loan basis to reduce
unemployment. This scheme was misused and half of these taxes were
painted and converted to private cars.

The remaining being operated as taxes and they are not in best of their features as well,
no yellow Cab has air condition left. Their drivers are not trained as well and there is no
fixed fare rate charging system too, very less attention is paid to the maintenance of the
taxis.

13
 PRODUCT ANALYSIS

Metro cab is a convenient cab service which aims of providing customers with maximum
satisfaction. At present Metro cab is operating with 120 cabs in Karachi, 35 cabs in
Islamabad and 15 cabs in Lahore with a centralized booking system.
The product analysis of metro cab can be classified on the basis of

 Product Features
 Product Benefits

Product Features

Metro cab service comprises of the following features:

 Toyota corolla XLI, 1300CC and 1600CC.

 Fully air- conditioned.

 Comfortable seats.

 Security system.

Product Benefits

The product benefits include:

 24 hours customer service

 Accessibility

 Security

 An experience of comfort

14
 SWOT ANALYSIS

Our interview with the vice chairman of Bukhari group lead us to the following
conclusion regarding the SWOT analysis for metro cabs, featuring key strengths,
weaknesses, opportunities and threats.

Strengths
 Market leader
 Highest number in terms of fleet
 Vast area coverage
 Presence of booking office at airport ( main area for target market)
 Allocation of budget for starting new projects
 Good service

Weaknesses
 Arduous task to maintain standards
 An increase in traffic flow.
 Success dependent on broad awareness of service
 Limited advertisement

Opportunities
 The planning of introducing new metro cabs for city use, in Mehran competing
yellow and black cabs.

15
 Plan to extend the coverage , in terms of increased number of fleet in Lahore,
Islamabad and other parts like Peshawar etc
 Service that differentiates costumers from that of the competitors
 Ability to secure an ad agency to do the creative development.

Threats
 As other market players observe the growing prospects of this business, new
competitors are entering the field reducing the scope of revenues.

16
 SEGMENTATION

The segmentation variable for the taxi users in a Karachi environment is based upon
demographic variables, which are explained as follows.

Business Travelers
Businesses travelers include those users of taxi who frequently commute to and fro
Karachi for business and vocational purposes. They are always in a hurry to reach the
airport in a convenient and timely fashion. They don’t like the hassle of negotiating with
drivers on the subject of fares and they do not prefer traveling in the yellow and black
taxis prevalent in Karachi.

Affluent travelers
They include those travelers who belong to a high class who have their conveyance but
due to some unprecedented events or emergencies are forced to resort to this
transportation means. For this segment of taxi users price or charges is not an issue they
consider convenience and class as the primary objectives.

Middle Class
This segment is that social stratum of society, which earns a respectable income and is
able to travel to their offices through the means of a taxi. This segment considers price as
the main point of comparison rather then comfort and convenience as opposed to the
affluent travelers.

17
Middle Class with no Conveyance
This segment belongs to an average income bracket with large families. They commute
as a family unit in taxis on important occasions. This segment when undertaking a
transportation decision consider price as the vital prerogative and do haggle with the taxi
drivers for achieving their goal.

18
 TARGETING

The prime target audience of metro cab is the upper middle class, or generally classified
business travelers and executive who want to travel to the airport with convenience.
These individuals are pressed for time and they need time saving solutions to fulfill their
traveling needs. The individuals primarily the business travelers and executives belong to
that social stratum of society who is conscious of their appearance and image portrayed in
society. So they use those products and services that depict their status in society.

Metro Cab targets those individuals who always favor class, cleanliness and convenience
at reasonable price. Additionally, these individuals are willing to pay a premium if they
are extended a quality traveling experience. The yellow and black cabs lacked the
features of quality and convenience.. Mr. Shahid Rafiq is optimistic about the fact that
with the passage of time, as people become aware, the future of metro cabs will be
extendable not only to the primary audience but also more and more people will be
attracted towards this service which will result in the broadening of its target market.

19
 POSITIONING

Metro cab positioned itself on the basic strategy of capturing an unidentified position i.e.
transportation service of international standards which yellow and black cabs services
lacked in this perspective.
Karachi the largest metropolitan city of Pakistan, there had always been a space available
in terms of extensions and improvements. The management of Bukhari Group conducted
a thorough research, made a business plan and finally launched the Metro Cab which was
a roaring success.
Karachi is consistently plagued with an increasing flow of traffic; this opportunity has
encouraged new players to think of new strategies in terms of entering the transportation
industry with new innovations, hence moving and accelerating to gain more revenue.
Bukhari group had the edge of being the initiator in devising a strategy, which focused on
the unoccupied space hence launching the product, and soon emerged as the market
leader. This however, encouraged more players to enter the market thus increasing the
competition to a high degree.
Mr. Shahid Rafiq is unworried about the new players entering the market and according
to him, the traffic volume in Karachi is very high so new players are encouraged to enter
the market and consequently this will serve as a catalyst to change the transportations
culture of Pakistan.

20
 MARKETING MIX

PRODUCT
The product that we have been assigned is a service which is primarily a transportation
service. It was incepted for the convenience of the people. The conveyance that is being
used for this purpose is Corolla XLI. Up till now there are 170 Corollas of 1600 and 1400
cc in the fleet of “White Metro Cab”.

PRICE
The pricing strategies that White Metro Cab is using are;

 Rs.15 per Km
 It can be hired from anywhere in the city through a telephone for a mere amount
Rs.50 and thus can be used as a private car.
 A charge of Rs.300 is prevalent from anywhere in the city to airport.

PLACE
This service is being operated from,

 Airport.
 Nisar Shaheed Park at Defence Phase V.

PROMOTION

21
In promotion, Bukhari Group’s main focus is on publicity and print media. Initially they
began with publicity and got the fair response too. But soon they realized the importance
of print media, because they know that the frequency of advertisement being noticed and

the reach ability has more impact than other promotion strategies. That’s why they
started massive advertising through print media i.e. newspapers and billboards.

MARKETING STRATEGY

Following are the marketing strategies tools for the promotion of the metro cab.
1) Print media.
2) Radio.
3) PR activities.

PRINT MEDIA
Print media plays an important role for generating awareness as well as delivering
information about the product and services. Now we need to know how many types of
print media metro cab should use to promote.

1) Brouchers.
2) Newspaper Ads.
3) Magazines Ads.
4) Bill Boards.

BROUCHERS
Introductory brouchers plays an important role in describing company’s goal and
objectives. They are very much precise and limited in nature. Owing to their limited
scope we need to be very careful.

22
NEWSPAPER
As we all know newspapers in comparison to brouchers have greater coverage and
frequency but on the other hand they are more expensive therefore metro cab should
concentrate on their budgeting of print media.

MAGAZINES ADVERTISMENTS
Specialized magazine advertisements can be used to communicate the target audience.
Magazines like businessman, economist, etc would be utilized for this purpose.

BILL BOARDS
Placement of bill boards at the prime locations of the city for most of the customer who
needs comfort and luxury in the cab services are their major concerns like they should go
for Cantt, airports, railway stations etc.

RADIO
Metro cab should also go for the TV commercials at different channels at prime hours to
deliver their message more specifically like at news hours and business hours. For radio
they should go for the channels which are listened mostly by the youth and the corporate
people.

PR ACTIVITIES
For PR activities, metro cab should sponsor some business forums and shows to promote
and also organize some social events to gain people attentions.

23
PRODUCT LIFE CYCLE

24
 Since metro cab has just passed the level of introduction and entering to a growth stage so
we place our product in the middle of the two phases.

BCG MATRIX

High

Low

High Low
Grow
25
 Future analysis

From the future perspective, the parent company is looking forward for an expansion
program is terms of introducing new model Alto VXR as cabs under the banner of metro
cabs for competing against yellow and black cabs directly.

The company is also planning to increase the number of fleets and also to expand its
coverage to Azad Kashmir and Quetta with the help of its business partners that are
Toyota Central Motors.

Mr. Shahid Rafiq is confident that if the government continues to provide encouragement
in this sector we, including other services would be motivated to add further value to the
existing service.

26