COURSE CODE: MGT368.

Submitted to: Mohammad Asif Gazi (MAG); Lecturer, Management Dept. North South University

Date: 27/11/2019

Group Members:

SL NAME ID
1 Shararanjum jawad 143028030
2 Tanvir Ahmed 1520720630
3 Mst. Sharnaly Akter 1610370030
4 Jannatul Nayeem 1611482030
5 Saqlain Hossain Chowdhury 1721341030

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 INTRODUCTION

With the revolutionary technology in automobile industry Motorbike has been evolved to its finest form
all over the world. The wave of this trend has swung people of Bangladesh too. As entrepreneurs are the
people seeking for opportunities, they made the best use of it in Motor Bike Industry. Unlike 90s, trend of
sports bike has been introduced in Bangladesh already which opened the door for many forms of business
and start-ups. “Right Stop” is a business that import sports bike (R15, Suzuki Gixer and Honda CBR)
gears and accessories directly from Indonesia legally and sell it as both wholesale and retail sale. Availing
different gaps and overcoming multiple barriers, this company is providing authentic products with much
lower price which has already captured positive reputation and forward momentum.

NAME AND ADDRESS OF THE BUSINESS:

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NAME: Right Stop Motor Gear & Accessories
LOCATION AND CONTACT DETAILS:

FACEBOOK PAGE: www.facebook.com/rightstopmotorgear&accessories

NAME AND ADDRESS PRINCIPAL:

NAME ADDRESS
Shararanjum Jawad 17/16 Akhoy das lane, Gandaria, Dhaka

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NATURE OF BUSINESS
The business is a form of sole proprietorship. “Right Stop” is driven by dedication to service, the pursuit
of opportunity and commitment to the best. This is the spirit that has urged the company onward from the
beginning. Previously motorbikes from only India and Japan were prevalent in Bangladesh. Since 2016
Indonesian Bike has been introduced into Bangladeshi market. For example-Rancon is brings Suzuki,
ACI brings Yamaha. However, they cannot provide the after sales service as they have shortage of
products supply. The people who are bringing such Indonesian Bike parts are less in number and “Right
Stop” is one of them who is importing those parts. Its main aim is to sell OEM spare parts such as
Headlights, Air filter, Looking glass, CDI, fuel injector, Carburetors, Brake fluid, Indicators, Armatures,
and many more to the people who uses those Indonesian Bike.

STATEMENT OF FINANCING NEEDED

As an importer and seller, the company needed sufficient amount of money due to get quality raw
Materials to ensure quality brand products. For the financing of the business, it required BDT. 75, 00,000
BDT 50 lacs was contributed by the owner and rest 25 lacs were Bank loan. (Sonali Bank)

DETAILS TK
Rent 30,000
Land and Showroom Development 20,00,000
Office Equipment 3,00,000
Loan Interest 12,000
Total 23,42,000

STATEMENT OF THE CONFIDENTIALITY

“All the information of this business plan report is completely confidential. Without the permission
of the owner of this business plan, readers are requested not to disclose or use any information to
the other sources. The confidential business summary cannot be reproduced, duplicated or
revealed, in whole or in part, or used in any other manner without prior permission from the owner
of the business. Besides, all information of this business plan should be kept in confidential. We are
considering this business plan as an important document and we also expect everyone should
evaluate its importance as well.”

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 EVIDENCE OF A STRONG TEAM, WITH
THE RELEVANT SKILLS / EXPERIENCE

PERSONAL REASON TO THINK ABOUT THE VENTURE:

1. One of our group member is the owner of this business. (Mr. Jawad)
2. We have 3 bikers in our group that worked as a fuel of this thought which originated from
passion.
3. We experienced lack of availability, authenticity, reliability and efficient price of different gears
and parts while maintaining own bikes.
4. As per suggestion of our respected course faculty member, we realized that we have much more
knowledge about this industry rather than a business from scrap.

SKILLS THAT CAN CONTRIBUTED IN THE VENTURE:

1. Entrepreneur: Our own, Mr. Jawad has the experience and market knowledge that helped.
2. Understanding the demand of bikers from their perspectives (being a biker)
3. Past Market Knowledge: scarcity of OEM products in the marker.
4. Good link ups and relationship in supply chain.

JUSTIFICATION:
1. Past Experience and market knowledge of the industry helped to sort the market gap out and
exploit the new opportunity found.
2. Knowledge about the demand of customers, high pricing of dealers and unavailability of
sufficient and compatible product helped generate this venture.

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 Clear evidence of a problem worth solving

COMMERCIAL VIABILITY:

About 66.7 percent people are interested to use this this company’s spare parts. And about 34.3 percent
people are interested to use the product of ACI and RANCON which are the main competitors of this
business.

From the research of our primary data about 66.7 percent people are interested to use “Right Stop’s”
products. As well as the secondary data which we are collected it says that within 1 year 5 lack active
bikers will increase in the Dhaka city only. So, we are optimistic about the success that this business will
grow.

We also belief that the company’s product will generate profit because it is offering the bikers of our
country with the spare parts that no other company can offer with such a low price. It can offer such a low
price because it doesn’t have so much employee costs and it doesn’t have to maintain warehouse that
other companies (e.g. ACI motors) do. That is, the reason it can offer low price and it has a competitive
advantage over other companies.

As this business is all about spare parts and these products are premium and these products are not very
much available in the market and the pricing are very high. Now people don’t need to wait for this and
they can get all of the products they want under the one shop and with such a low price that price doesn’t
offer in any other company. So that makes a unique value to customers compare to other companies. So,
it has a huge positive response which will make it clear that it can run the business successfully.

MARKET GAP:

For the market gap we think that there is nothing in the market that offers this much low price and quality
that we offer for the spare parts to the people.People are not very much interested to buy premium
segment bikes like Yamaha R15,Honda CBR, Suzuki GSX-R because of the high pricing of the spare
parts that company offers.So our main goal is to introduce our product and filling the gap of pricing so
that people don’t have the hassle of high pricing.

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RESEARCH DATA AND JUSTIFICATION:

After completing our primary research, it is clear to us that about 66.7 percent people are interested to use
our product to get such a low price.

We asked people that if they are interested about our products then that would they think?

And about 66.7 percent people replied with the positive. And we are optimistic that if 66.7 percent people
are willing to use our product then in recent future the number will increase definitely. After analyzing
the market we find that no other company offer such a low price for the unique products which we offer.
And we come up with something new.

As we finished to do our primary data and we get a huge response and opportunity from the market and
we find the same statistics from our secondary data as well.

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 BUSINESS ENVIRONMENT ANALYSIS/
EVIDENCE OF MARKET OPPORTUNITY BY
RESEARCH

KEY FINDINGS: PESTEL analysis, Porters’s five forces and SWOT analyses are done basing on
following secondary data and primary data (Knowledge of the owner and other bikers of our group)

1. National Trend and International trend:

a. This industry is ever booming both in national and international level.
b. Different racing competitions act as factors to expand market.
c. Economy if Bangladesh is developing, purchase power of customer is increasing.
(Sources:
https://www.motorsportmagazine.com/opinion/motorcycles/motogp-versus-tt
https://motorcyclesdata.com/2019/10/15/world-motorcycles-market/
https://www.marketresearchreports.com/motorcycles
https://www.bikebd.com/bd-riderz-club/)

2. Industry sales over past 5 years:

a. 1000 bike sales per week where as before 5 years it was 100.
(Sources:
https://www.thedailystar.net/shift/bangladeshi-motorcycle-industry-revs-toward-record-numbers-
1586890
https://www.thedailystar.net/supplements/bikes-ridesharing/news/the-motorcycle-boom-
bangladesh-1776466)

3. Anticipated growth:
a. Estimated: 5%
https://idlc.com/mbr/article.php?id=160

4. New entries in past 3 years:

a. Only the legal dealers and illegal entrants.
https://www.bikebd.com/all-motorcycle-showrooms-in-bangladesh-addresses-phone-no/

5. New product lines:

a. New versions of bikes with new accessories. (e.g. Fuel injector of R15 V2 is different from
that of R15 V3)
https://www.thedailystar.net/shift/news/top-five-sports-bikes-bangladesh-1698034

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6. Nearest competitors:
a. ACI Motors, Suzuki Flagship, Honda Wings BD Ltd. Khaja Motors and Sajib Motors
http://www.addressbazar.com/Article_Title_Body.php?Sub_Category_ID=66
https://www.bikebd.com/honda-motorcycle-bangladesh-address/

7. Competitive advantage:
a. Low price.
b. Authentic product.
c. Availability of all accessories (rare in even Dhaka).
d. Authorized.

http://www.bangladeshcustoms.gov.bd/trade_info/duty_calculator
http://www.brta.gov.bd/site/view/legislative_information/-

8. Sales growth of competitors:

a. Increasing with the booming of the whole industry
https://www.bikebd.com/yamaha-motorcycle-showroom/

9. Trends in specific market area:

a. Modification.
b. Availability.
c. Service.
https://www.techsciresearch.com/report/bangladesh-two-wheeler-market/3188.html

10. Customer profile:

a. Aesthetic and sporty minded.
b. Customers (price sensitive)
c. Consumer (Quality oriented)
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3272187

11. Uniqueness of customer profile:

https://carbiketech.com/sports-bike-racing-sports/

12. Evidence of acceptance:

a. Facebook page rating:4.9/5; Likes: 17000
https://www.facebook.com/rightstopmotor/

13. Customer size, Growth rate and profitability:

a. Premium customers.
b. Expanding market.
c. 10% profit on each product.
https://www.motorcyclevalley.com/info/showrooms/

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 PESTEL Analysis
The macroeconomic factors that this is going to face can be easily pictured through PESTEL analysis,
namely- Political, Economic, Social, Technological and Legal factors.

POLITICAL FACTORS:

1. New traffic rules-2019: According to the new traffic rules implemented in the country, the whole
transportation industry is like an oxymoron which illustrates as overall benefit for the
infrastructure of transportation system and general mass people and at the same time it’s a thwart
towards business because, people are less likely to purchase a new vehicle knowing the facts that
tentative costs for obeying strict rules is higher. However, while considering our business, it has
little impact too.
(Source: BRTA)
2. Taxation: As the vehicle tax in Bangladesh is much higher than that of the other countries, so, the
number of people who purchases a sports bike is also less. However, the existing market is good
enough to make handsome profit
(Source: Bangladesh Tax)

ECONOMIC FACTORS:

1. Since we are selling parts and accessories of all sports bike (note: price of sports bike is much
higher than average bikes), so, Economy has much to do with it. As we know that income per
head is booming with time, so, it helps people more to have a personal bike which ultimately is
an opportunity for expanding market.

SOCIAL FACTORS:

1. It is evident that people with high esteem value in Bangladesh and passion purchases a sports
bike rather than an ordinary one. Experiment shows that, this particular trait is aligned with
loyalty. (e.g. “Apple” product users usually don’t shift the brand). So, this is an opportunity for
our business to get a constant and profitable market segment.
2. Frequent bike accident discourages people to purchase a motorcycle. This is tentative challenge
for the whole industry.

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TECHNOLOGICAL FACTORS:
1. Facilitated with modern technology new versions, modifications, and new product lines are
introduced in automobile industries which helps our business to bring new products to sell.
(Example: New LED lights).

ENVIRONMENTAL FACTORS:
1. Since all the sports bikes run with octane or petrol (non-renewal energy), it is environmental
degradation. But, from the perspective of Bangladesh, people are comfortable with this. Even if
the trend changes, bikes are expected to be there. So, there might be replacement of product line
but the business feasibility will remain intact.
2. We sell different types of silencers which filters the smoke emitted from engine. This aligns with
supportive environmental revolution.

LEGAL FACTORS:
1. Trade license, Import license, tax policy and local communities are the greatest barriers in this
business. Since we’ve already overcome these stages (please check attached documents), it is also
a barrier for new entrance.
2. Most parts and accessories don’t import rather they purchases through other third parties (e.g. us).
So, competition is less in this sector.
3. Being very practical, it is also evident that, there are few hidden costs like satisfying Police while
shipment, satisfying local commissioner etc.

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 PORTER’S FIVE FORCES
1. COMPETITION IN THE INDUSTRY:

a. As described in “Legal factors” of PESTEL analysis, due to multiple legal barriers (e.g.
import license) there are few competitors in the market. Those are the dealers of Yamaha,
Suzuki and Honda Company in Bangladesh who have import license. Currently, there are 33
Yamaha dealers 91 Suzuki dealers and 102 Honda dealers.
b. Apart from dealers, it is “Right Stop” who first started importing sports bike parts and
accessories in Bangladesh legally (with import license) and selling it as wholesalers and
direct consumers. There are few illegal luggage party, and small parts tracker who captured
little amount our targeted customers. (e.g. Khaja Auto, Sajib auto)

2. POTENTIAL NEW ENTRIES:

a. Entry barrier in this industry is heightened by several legal factors.

b. There is no payment gateway other than (L/C and TT) while importing from Indonesia which
most people find it very inconvenient. Most people go with the traditional approach (third
party) which increases their costs.

3. POWER OF SUPPLIERS:

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 a. Power of suppliers is much higher from the warehouse of Indonesia which restricts “Right
Stop” to negotiate with price.
b. Again, power of supply channel is stronger which has a positive impact on this business.
4. POWER OF CUSTOMERS:

a. Power of customer is less as all the wholesalers have to purchase either from dealer (costs of
which is higher) or from luggage party (legal barrier) if they do not import.
b. Consumers are most likely to purchase from “Right Stop” as they have the knowledge of
originality of the products.

5. THREAT OF SUBSTITUTE PRODUCTS:

a. In spite of possessing threat it is an opportunity for “Right Stop” as most parts of accessories
of sports bikes are very sophisticated and they have to purchase it pairs (e.g. indicators).
Again, parts of one bike doesn’t suit with others (e.g. CDI)

SWOT Analysis

STRENGTH:

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 1. First-movers advantage: Since “Right Stop” is one of the first movers of sole proprietorship bike
parts and accessories importer it has the first-mover advantage of captured market, acquired
knowledge, supply relationship and other important built link ups.
2. Authorization: “Right Stop” has the legal authority of importing and selling bike parts and
accessories whereas apart from dealers other similar businesses purchases through third party.
Therefore, this company has huge control on price that helps to dominate the market.
3. Locality: Since different small parts shop owners can avail products from at much lower costs
than that of dealers (almost half) therefore, customers are happily retaining with this company.
4. Popularity: Facebook page shows the actual popularity of “Right Stop” where it has a rating of
4.9 out of 5 with 17k+ likes. This trait helps in sales and marketing.
5. Experience and Knowledge: Having started the business earlier, “Right Stop” has acquired
enough knowledge about the market gaps and loops. (e.g. pick time/customer retention strategy
etc.)

WEAKNESS:
1. Smaller Investment: “Right Stop” is a sole proprietorship. Due to this the investment was small
and sometimes it becomes a challenge for growth of this business.
2. Demand-Supply match: Sometimes demand is much higher and shipment is late. Due to
mismatches of demand and supply again sometimes it becomes a challenge to manage and retain
customers.

OPPORTUNITY:
1. Trend: The new trend of sports bike with style has flourished the market more than ever before.
This is a huge opportunity to exploit the expanded market size. From a study of sales of Motor
bikes it is evident that the growth (sales volume) is estimated to be 5% every year. More than

2. Few global factors such as- “MotoGP”, “Isle of man” etc. are encouraging youths to be more
inclined towards sports bikes.
3. Targeted consumers in this industry is less price sensitive rather they are quality and authenticity
oriented. Since, “Right Stop” is importing products directly from the warehouse from Indonesia,
it is an opportunity for perfect positioning of the brand and earn loyalty.
4. Due to lower price than that of the dealers’ customers (wholesaler) are being more oriented
towards “Right Stop”

THREAT:
1. Due to luggage party and some illegal parts traffickers, few portion of the market is being taken
away as they can ever avail products at much lower price since those people don’t have to pay
tax.

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 Business Model

PRICING MODEL:

Price is set in a way that the company can avail 10% profit on each product. Costs include the
transportation cost, Rent, Maintenance, Utility bill and miscellaneous.
Sample Example:

SUSTAINABILITY:
1. 100% Authorized and legal business.

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 2. Popular business.
3. This industry is expanding.
4. Entry Barrier

ECO-FRIENDLY:
1. Nothing to do with eco-harming since it sells the authorized products.

ETHICAL:
1. Charging less price than the dealer maintaining legal regulations and facilitating customers with
availability of quality products ensures the ethical strength of the company.

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 Description of new ventures

NAME OF THE BUSINESS:

The name of our business is "Right stop symbol of excellence". Which stands for reduce the cost of
bikers.

ADDRESS OF THE BUSINESS:

We are going to settle our office in 23/1 Sikkatuli Lane near the Bongshal Area.

MISSION
The main focus is to provide the original & appropriate parts of bike which is not that available in
Bangladesh. It reduces the cost of bikers besides providing them original parts. It also increases the
availability of original parts which can reduce the accident rate in Bangladesh and can give more safety to
the bikers. So, the mission is to give security and safety with original parts of bike.

VISION

To minimize the cost and maximize the availability of original parts of bike in Bangladesh.

PRODUCT

The name of the parts are Break-pad, Indicator, Air filter, Clutch cable, Body plastic parts and Engine
parts is our main product. There are also so many small parts of bike which is also very essential. But we
focus on some major parts, which is difficult to find out the original one in Bangladesh. We want to
import the original parts from Indonesia which is very rare in Bangladesh. There are so many duplicate
parts from India, Japan and China all over Bangladesh. But we want to give the original parts to the
consumers through our products. We can also charge them the reasonable cost for this original parts.
When we will start our business, we will import the similar parts with higher rate through FedEx and air
cargo. Then we got some improvement and decrease our import cost through ship.

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SURVIVE
We also provide services though fitting the parts in customers bike. We also change the parts which was
taken from us and give the best suggestions for their bikes equipment. We are 24hr available for
customer services in our online page. For selling product and providing services we must need official
trade license which we have already managed. We also managed the TIN Certificate. The TIN helps the
IRS keep track of these entities and manage the tax accounts. Corporations, partnerships, estates, trusts, as
well as sole proprietors and other individuals, must use these numbers when filing tax returns and other
tax-related documents. Our business is required to receive a VAT registration certificate. To continue our
normal business operation including participation in tender, banking activities and export and import, we
applied for VAT registration and receive a Business Identification Number (BIN).

SIZE OF THE BUSINESS

Our business was going to be a small business at very first. We are in total 5 partners in our business and
we are investing 10 lacks taka as our capital amount. We sell our product physically in our shop inside the
Dhaka city like Bongshal. The showroom is our own place which is one of our partners land. But the
warehouse is leased for 10 years. We try to our products through online, so that people from other
division and cities also can buy our product. We will send our product through courier service on the
other division like Chittagong, Khulna, Rajshahi, Sylhet, Comilla, Barisal.

OFFICE EQUIPMENT
Our office is a small office. But the size of warehouse is standard. So, we need a very small amount of
equipment which is already been purchased. The office equipment are below-

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1. Table
2. Chair
3. Computer
4. Air conditioner
5. Light
6. Fan
7. Fire extinguisher
8. Telephone
9. Internet connection
10. Sofa.
At the very early state of our business we had to experience some obstacle to run our business smoothly.
Sending money was a big problem then. Since Indonesian Bank doesn’t accept LC from our country, it
was a big challenge to buy the product from there. But thankfully we had come a solution. Another
obstacle was Language. They struggle to speak in English. So keeping good communication was a big
challenge as well. But as our business carried on, this problem also got solved.
Now after successful implementation of our business we want to focus on the long run status. With a view
to survive in the long run we have to experience extension of our business. Available bank loan with
reasonable interest rate should be a great help to implement our plan. Expansion of selling zone besides
adding variety of products might keep our demand upward. Furthermore Besides Bongshal, there are
other areas popular as bikers hub, such as Bangla motor. We are looking forward to target these types of
prospective locations for the convenience of our business. Collaboration with Franchise is also in our plan
to implement in near future.

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