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TWIN RIDER 

CNG BIKE

Presented By:

1.Syed Ahsan Qadri

2.Muhammad Nadeem Haider 

3. Saqib Munair 

4. Syed Abid Nasir 

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HOW CNG BIKE IS AN

INDUSTRIAL PRODUCT?

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MISSION STATEMENT

 

We ride in the eyes of our customer by

delivering quality and environmentalfriendly product.

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VISION STATEMENT

 

To bring a change and innovation in the

  present market by meeting industrialcustomer’s requirement and setting higher 

standards of our product. And bringing new

  products for different segment withcapturing maximum market share.

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SCHEME OF PRESENTATON

INTRODUCTION.

STATEMENT OF FINANCING NEED.

EXTERNAL ENVIRONMENT

ANALYSIS.

INDUSTRY & COMPETITOR ANALYSIS.

COMPANY ANALYSIS SWOT.

SEGMENTATION.

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SCHEME OF PRESENTATON

PRODUCTION PLAN.

OPERATIONAL PLAN.

MARKETING PLAN.

PRODUCT TACTICS.

PROMOTIONAL TACTICS.FINANCIAL PLAN & BUDGETING.

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FINANCING

60% Equity.

40% Debt.

Government Support

SALE’S TREND & EXTERNAL

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SALE’S TREND & EXTERNAL

ENVIRONMENT ANALYSIS

2003-07

500,000356,082186,209128,564TOTAL

120,000109,93235,0009,000CHINESE

20,0009,0825,0005,000SUZUKI

60,00046,67329,00024,500YAMAHA

300,000190,395117,20990,064HONDA

2006/072005/062004/052003/04MODEL

SALE’S TREND & EXTERNAL

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SALE’S TREND & EXTERNAL

ENVIRONMENT ANALYSIS

2003-07

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2003/04 2004/05 2005/06 2006/07

Sales Trends of the Industry (in Units)

HONDA

 YAMAHA

SUZUKI

CHINESE

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MARKET SHARE

4%

12%

60%

24%

Honda

 Yamaha

Suzuki

Chinese

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INDUSTRY ANALYSIS

Price Cut downs

Extreme Competition

CNG Bike (New Venture)

High Demand

Market GrowthEconomic Boost

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SWOT ANALYSIS

STRENGTHS

Product:

First time CNG bike in Pakistan.

Low development cost.

Low maintenance cost.

Easy availability of spare parts.

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SWOT ANALYSIS

Price:

Very competitive price.

Reasonable price of spare parts.

Place:

Major towns and cities of Pakistan.

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SWOT ANALYSIS

People:

Highly qualified,committed staff.

Technological and managerial expertise.

Trainings & R & D.

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SWOT ANALYSIS

WEAKNESSES

Limited Investment.

 No safety measures installed against bike

snatching.

Giant Competitor Entry

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SWOT ANALYSIS

OPPORTUNITIES

Growing market for motorcycle – 

Estimated bikes 600,000-650,000 by the endof 2008 compared to 500,000 in 2007.

Cost effective CNG bike, attractingindustries.

High Petrol Prices

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SWOT ANALYSIS

THREATS

Competitors launching new models with

stress on reduced price.

 New competitors bike can enter into CNG

segment with high budget.

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TARGET MARKET ANALYSIS

Banks.

Pharmaceutical Companies.

Restaurants.

Sales Organizations.

Courier Companies.

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TARGET MARKET ANALYSIS

Approximately 35 Banks in Pakistan.

885 Nationwide branches (ABL).Standard Chartered (34 cities).

108 Pharmaceutical Companies in Karachi.

20 Branches of KFC in Karachi.100’s of Sales Organizations.

TCS has 5000 employees.

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SEGMENTATION

Working Class.

Measurable, Relevant & Operational.

 

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POSITIONING

Functional Positioning.

More for less Positioning Strategy.

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PRODUCTION PLAN

Manufacturing Process

Physical Plant

Machinery & Equipment.

Raw Material Suppliers

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OPERATIONAL PLAN

Services at Karachi, Lahore & Peshawer.

 Nation wide Network 

Just in Time (JIT)

Supply & Value Chain

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MARKETING

PLAN

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MARKETING PROCESS

PRODUCT TACTICS.

PRICING STRATEGY.

ACTION PLAN.

BUDGETING.

MEASUREMENT.

CONCLUSION.

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PRODUCT TACTICS

First time CNG bike in Pakistan.

Durability & Reliability.Low development cost.

Low maintenance cost.

Easy availability of spare parts.EIV for the first time in CNG bikes.

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PRICING STRATEGY

COMPETITOR BASED PRICING

STRATEGY

Reasons:Large number of competitors.

Price reduction by competitors.

Monopolistic competition situation.

Low priced Chinese brand.

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TWIN RIDER VS COMPETITORS

PRICES.

40,000TR-100Twin Rider 7.

40,000QG-100Qingqi6.

60,000Sprinter 110Suzuki5.

59,000Shogun 100Suzuki4.

57,000Excellence 100Yamaha3.

55,000Royale 100Yamaha2.

60,000CD 100Atlas Honda1.

Price in PKR BrandManufacturer Serial no.

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MARKET PENETRATION

PRICING

Twin Rider sets market penetration pricing

strategy in order to

Capture the market share.

Attract large number of customers.

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PROMOTIONAL STRATEGY

Trade Shows.

Catalog & Data Sheet.

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ACTION PLAN

LAUNCHING

Introducing CNG bike when petrol prices

are on fire.

VENDORIZATION

Higher profit margin by getting supportfrom more vendors in future.

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ACTION PLAN

 NEW BRANDS

Penetration into attractive and vacantsegment like Twin Rider the concept of CNG bike.

EXTENSIVE PROJECTS

Meeting high demands, increase profit andmore contribution in economy.

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BUDGETING

1 MillionAfter Sale Service4.

150 MillionDevelopment5.

50 MillionMarketing &Advertising3.

250 MillionPlant assets+Assy plant2.

500 MillionTotal Budget1.

Amount in PKR Budget Allocated for Serial no.

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MEASUREMENT

Twin Rider’s points of measurement are

Target is sales of 50,000 for 1st year.

Company profit should be 15%.Customers satisfaction surveys.

Market Leadership through CNG bike.

More innovative Products

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FUTURE PLAN

Increased Volume

Low Cost Supplier 

Technological Innovations

Merger 

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FINANCIAL PLAN

Total Fixed Cost for 1st Year = Rs. 620 Million

Variable cost / Unit = Rs. 15000/unit

S.P / Unit = Rs. 40000.

Break Even Point for 1st Year = TFC/(S.P/Unit-V.C/Unit)or TFC/Contribution Margin

Q (Break Even) = 620000000/(40000 – 12000)

= 24800 Units.

Q b.e In Rs = 24800 * 40000 = Rs. 992 MillionOur Target for 1st year = 50000 bikes Sale

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FINANCIAL PLAN

CEO

(Dir Tech & SCM)

Dir Mktg & Admin.Dir Finance & Prod

0

500000000

1000000000

1500000000

2000000000

2500000000

1 2 3 4 5 6 7

TFC

TC

TR

0 5000 10000 20000 24800 30000 50000

Break Even

Point

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PRACTICAL EXAMPLE

Cost of 1 lt. Petrol = PKR 65.89

Cost of 1 Kg CNG = PKR 37

In 1 lt. Petrol = 45 Km

In 1 Kg CNG = 80 Km

Paying PKR28.89 LESS

&

Travelling 35Km MORE

 

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PRACTICAL EXAMPLE

On Average:

1 Rider travels 1000Km / Month.22.5 lt. on Petrol bike. (Cost PKR 1482.5)

12.5 Kg on CNG bike. ( Cost PKR 465 )

SAVINGS PER RIDER PKR 1017.5

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PRACTICAL EXAMPLE

Considering TCS with 2000 Riders.

2000 * 1017.5 * 12 = PKR 24,420,000 Total Cost of 2000 Bikes = PKR 80,000,000

Average Life = 4 years

4 * 24,420,000 = PKR 97,680,000

TOTAL SAVINGS = PKR 17,680,000 

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THANK YOU