United International University

Course Title: Service Marketing

Course Code- MKT 4102
Section- A

Report on
Developing a service marketing plan for service marketing start up

Submitted to
Muhammad Hasan Al-Mamun
Assistant Professor
Submitted by
Name ID
Sadman Sharar 111 161 148
Borhan Uddin 111 161 375
Sristy Saha 111 161 394
Tasnia Khan 111 161 011
Sabrina Sayda Purni 111 161 120
Md Shorifur Rahman 111 161 157

Letter of Transmittal
13th December 2019
Muhammad Hasan Al - Mamun
Assistant Professor
School of Business and Economics
United International University

Subject: Submission of the report on “Developing a Service Marketing Plan for service
marketing start up‟

Dear Sir,
Here is the report you have assigned us as a partial fulfillment of the course on
developing a service marketing plan for a service marketing startup. We have completed work
respectively. We have given our utmost effort to collect all the necessary information to
complete the report.
We therefore hope that the marketing plan that we have developed is on perhaps to your
expectation. It has been a great experience for us doing the report and we have tried our best to
put everything which is related to the report.

Sincerely yours,
______________________
Sadman Sharar
111 161 148
On behalf of Group

Acknowledgment
At the very outset, I would like to praise our gracious and beneficent Almighty due to provide us
enough strength, patience, courage and ability to work on for this report.
We would like to take this opportunity to express our profound gratitude and deep regard to our
honorable faculty, Assistant Professor, Muhammad Hasan Al-Mamun, for his guidance, valuable
feedback and constant encouragement throughout the duration of the project. His valuable
suggestions were of immense help throughout our project work. His perceptive guidance kept us
working to make this project in a much better way. Working under him was an extremely
knowledgeable experience for us.
 Description of the core service offering
The transport system of Bangladesh consists of roads, railways, inland waterways, two seaports,
maritime shipping and civil aviation catering for both domestic and international traffic. The
development and maintenance of transport infrastructure in the county are essentially the
responsibilities of the public sector.

A motorcycle often called a bike, motorbike, or cycle is a two-or three-wheeled motor vehicle.
Motorcycle design varies greatly to suit a range of different purposes: long-distance travel,
commuting, cruising, sport including racing, and off-road riding
More than half a dozen firms are establishing facilities to assemble and manufacture two-
wheelers in Bangladesh. Till now Runner Motors and Walton is the local motorcycle
manufacturer in Bangladesh. Apart from that the motorcycle industry is dominated mostly by
Indian motorcycle brands.

Bangladesh, a small South-Asian country, the most densely populated country in the world,
inhabiting 164.7 million people, and approximately 60.65 million urban population. From the
country’s independence in 1971 to the present day, Bangladesh has gone through a massive
economic and social transformation- averaging 5.69 percent in GDP growth rate, and it continues
to maintain higher than 7 percent. As a result, Bangladesh was dubbed as ‘Rising Tiger’ or in
other words, next investment destination.
Many local and international investors are showing interest in investing in various sectors in
Bangladesh. Especially, with the reduction of import duty and VAT on imported motorcycle
parts and app-based ride-sharing service fueled incredible demand for motorcycles.
Consequently, motorized vehicle assembly and manufacturing are one of the sectors that have
been growing mind-bogglingly fast. To grab the opportunity, many well-known local and foreign
motorcycle companies have set up their factories and supplying those demands.
According to a report, the motorcycle market has grown by 50 percent in just a year, and the
market should maintain this growth until 2019
.
Many companies sell motorcycles in the Bangladeshi market and Rancon Motor
Bikes Limited (RMBL) is one of them. According to the regional sales manager, RMBL had
managed to sell more than 17 thousand units of SUZUKI motorcycle in 2017 with 4 percent of
market share. The company is expecting to sell 28,600 units of the motorcycle by the end of
2018.

This sale projection may seem lofty however, RMBL has been investing heavily to achieve
that goal e.g. dividing the market into 4 main regions and giving responsibilities to individual
manager to each region

In this huge Market we target that (gear x) a bike garage.

This is not an ordinary garage because we will offer extra service with it.
Something people face a problem when they are going to the office or any important meeting,
and we all know a problem can create at any time. Suppose a man is hurrying in going to the
office and that time he faces some problem in his bike. So he has to make sure that his bike has
to be repaired and also he has to go to the meeting at the right time. But if then bike goes for the
garage it will need minimum 1-2 hours. Then what he can do..?

So here comes our plan. If someone faces this problem and comes to our garage we will fix his
bike and save his time we will giving another bike to go and complete his work. After repairing
his bike our delivery man will go and deliver his bike and also bring our bike which one we are
giving it to him.we can track the movement through an app. in this app we will provide more
services. A biker can think that when he was absent the worker can provide low-quality
products/services. And now charging high price .for remove this kind of doubt/problem we will
send her every video clip which we recorded on the garage when his bike has entered the garage
our c c cameras. is going on and the whole service was recorded and when the service is done
and the bike was delivered in that app the video clip will be going on the bike owner then the
bike owner can easily watch the video and understand that we are very loyal to the customer. and
we serve as good as we can and his bike is ok now. through this app, we will provide another
service which one is the notification for his Mobil change and the kilometer reminder. By using
that if we sell our bike accessories thing like gloves, helmets at a reasonable price. through that
app the people can easily contact us .they can message us and share their opinion or any other
thing which one they needed.
so special we have two kinds of services for one we deliver the bike and the second one we will
get connected with people through the app and by this app, we can also sell accessories and we
will notify the biker to change his mobile and repairing services. we can send the video clip with
an app for increasing more loyalty. Customers can easily contact with gear x garage...
 Market segmentation

Market segmentation is the process of dividing a market of potential customers into groups, or
segments, based on different characteristics. The segments created are composed of consumers
who will respond similarly to marketing strategies and who share traits such as similar interests,
needs, or locations. Market segmentation makes it easier for marketers to personalize their
marketing campaigns.
For our company, we segment the market into 4 types 

1 Geographic  
2 demographic
3 psychographic
4 behavioral

Geographic- manly we set up our shop in Dhaka city, where the average use of motorbikes is
70%. In the backdrop of Dhaka city’s fabled traffic mismanagement and congestion, motorcycles
offer a more affordable alternative to its counterpart–cars. The rising middle class of Bangladesh
has been a significant driving force behind the motorcycle industry’s phenomenal rise as bikes
are cheaper, easier to maintain and faster to navigate with than cars. Since 2010, the number of
motorcycles in Dhaka alone has more than doubled to roughly 469,888 units

Demographic -Demographic segmentation is market segmentation according to age, race,

religion, gender, family size, ethnicity, income, and education. Demographics can be segmented
into several markets to help an organization target its consumers more accurately. 
Our target is mainly the young generation. Age 19-35. 
 
Psychographic-Psychographic segmentation is a method used to group prospective, current or
previous customers by their shared personality traits, beliefs, values, attitudes, interests, and
lifestyles and other factors. These characteristics may be observable or not.
For this, we create the delivery service so that we can earn their loyalty and their beliefs on our
work

We believe that is a customer satisfied then he will bring more customer and if we earn his belief
then he will spread positive word of mouth. Which is very important for a startup business.
Behavioral-Behavioral segmentation is defined as the process of dividing the total market into
smaller homogeneous groups based on customer buying behavior. Behavioral segmentation is
done by organizations based on buying patterns of customers like usage frequency, brand
loyalty, benefits needed, during any occasion etching this segment we divide our customer into 2
types.
  1-who will come only for the repair their bike.
2- Who will repair and also buy the accessories from our shop. Like engine oil, helmet, gloves,
etc.

Positioning 
A positioning strategy is when a company chooses one or two important key areas to concentrate
on and excels in those areas. ... An effective positioning strategy considers the strengths and
weaknesses of the organization, the needs of the customers and market and the position of
competitors.
For positioning in customers' minds, we will recur educated employees who will understand the
customer's emotions of his bike then provide the services. 
 

Targeting 
The selection of potential customers to whom a business wishes to sell products or services. The
targeting strategy involves segmenting the market, choosing which segments of the market are
appropriate, and determining the products that will be offered in each segment.
Our main target is the bike user who is 
 
 

1. Use a bike for the job

2. University going students 
3. The Speed Freak
4. The Road Trip
5. Tourist biker 
 Marketing Goals & Objectives of GearX
Gear X is a Hi-Tech motorcycle service center which can be distinguished from other
conventional service centers by its nature, diagnostics equipments and ensured quality &
reliability. We are committed to Our Customers & we run our shop on one basic principle...
Customer Service First!
Goals
 To repair on average 100 motorcycles per week
 To increase the number of repair jobs we do per week by 30 percent by May 1

Objectives

The objectives of GearX are:

 Capture the majority of the used motorcycle business in Dhaka City.

 Offer our customers a superior service, at a low price.

Mission

The mission of GearX is to become the primary resource for used motorcycle parts in Dhaka
City

Keys to Success
The keys to success for Recycled Riding Dreams are:

 Customer referrals.
 Exceeding the customer's expectation for quality, timeliness and price.
 Market Analysis
Customer Analysis

Over the past five years, biking has developed an entirely new customer base among Generation
Y, ages 19-35.  Last year, motorcycle sales for this age group were twice that of young men, ages
18 to 25. These two groups represent 80% of motorcycle sales. In Bangladesh, now more than
1,000 bikes are sold daily, which was just half of daily sales five years ago, according to data
collected from industry insiders.

The dividing market segmentation suggests that there is a large market for used motorcycles and
motorcycle parts, especially among experienced bikers. This is particularly important because
the experienced customer will seek out a shop where the owner has a reputation for quality and
service in the motorcycle community.

Competitive Analysis

Since, we are the largest service centre with proving more facilities in Dhaka city, so we have no
competitors yet now.

But yes there is trusted bike centre in Dhaka city which is Spanner but they targeted only for
customers who are using Suzuki Bikes.But we targeted all categories bikes like ( Lifan, Yamaha,
Honda, Taro Gp )
 Environmental Analysis

Environmental analysis is a strategic tool. It is a process to identify the external and internal
elements, which can affect the organization’s performance. Environmental analysis helps in the
detection of the threats at an early stage, that assist the organization in developing strategies for
it’s survival. These evaluation are later translated into the decision-making process. The analysis
helps align strategies with the firm environment.
For proper functioning GearX, and in situation like new equipment, gadgets, product launch
apart from analysing the internal factors such as finance, resources, human capital GearX
required to analyse the macro-economy factors. The advantage of this analysis is that it helps to
minimize the threats and maximize the profit. Environmental analysis includes:

 Political and Legal Factors

 Economic Factors
 Technological Factors
 Social and cultural Factors

Political and legal Factors:

Political factors concerns with the degree of government interference in a country. These
includes tax, policy, tariffs, trade restriction, labor law, and political stability. Legislative
changes take place from time to time. These change affect the business environment. After
every election government can change as well as the mode of rules, regulation and laws can be
changed. Any unstable situation like- strike, violence etc will hamper our business. We will try
to maintain all the rules and regulations regarding our business and human safety issues.

Economic Factors:
Economic factors involve all the determinants of the economy and its state. Economic factors
includes economic growth of our country. These are the factors that can conclude the direction in
which the economy might move. So, business analyze this factor based on environment. It helps
to setup strategies in line with changes.
Inflation, interest, disposable income of buyers, credit accessibility, unemployment rates
monetary or fiscal policies, foreign exchange rate etc economic factors will affect our business.
Inflation, interest and exchange rates have major impact in the operation of our
business.Exchange rates affect export and import of our company. And interest rates impact
companies capital cost and directly impact on the growth and expansion of our company.
Now-a-days the purchasing power of our people is increasing and as a result itseasy for them to
get our service. We are going to provide our service and gadgets with quite reasonable price so
that our customers will not feel too much pressure to avail our service. As we’re giving a
showroom, we will hire employees and thus unemployment rate can be decreased.

Technological Factors:
Day by day technology is advancing. This factor defines the resources available to operate
business. This is the most challenging factor for a business because growth of the company
depends on the ‘innovation’ and for innovation, the use of technology is very much important.
Performing environmental analysis on these will help people to stay up to date with changes.
Technology changes every minute. That’s why companies must stay connected all the time.
Technology factors helps us to know the consumers react to various trends.
Some technology factors include:
 Research and Development ( R & D ) activities
 Automation
 Rate of technology change
 Innovative technological platforms
 New discoveries

In this era everyone uses mobile phone. We track our movement through app. A biker can think
that when he was absent the worker can provide low-quality products/services. And now
charging high price .for remove this kind of doubt/problem we will send her every video clip
which we recorded on the garage when his bike has entered the garage our cctv cameras. is going
on and the whole service was recorded and when the service is done and the bike was delivered
in that app the video clip will be going on the bike owner then the bike owner can easily watch
the video and understand that we are very loyal to the customer. and we serve as good as we can
and his bike is ok now. through this app, we will provide another service which one is the
notification for his Mobil change and the kilometer reminder. By using that if we sell our bike
accessories thing like gloves, helmets at a reasonable price. through that app the people can
easily contact us .they can message us and share their opinion or any other thing which one they
needed.
Social and cultural Factors:
Social cultural factors vary countries to countries. social values, beliefs, religion and culture
affects business. The social factors might ultimately affect the sales of products and service. we
are going to consider several factors here and they are-
 The social lifestyles
 The gender and connected demographics
 Age distribution
 Career attitudes
 The cultural implications
 Domestic structure

Now a days uses of motor bike is increasing and maintaining good condition of bike is taking it
to an auto repair shop regularly. We ensure that our customer gets the best service. There will be
great possibility of our business to bring out a new healthy and environment friendly social life
style
 SWOT Analysis

SWOT analysis is a strategic planning technique used to help a person or organization identify
strength, weakness, opportunities and threats related to business competition or project planning.

Strength
1. High quality facilities: A business with high quality will meet or exceed customer
expectation whilst remaining economically competitive. Service quality increases
profitability and long term economic competitiveness. Gear X provide workshop for their
customers where the customer can comfortably get their service and can purchase many
equipment. When the customer give their bike to the company for servicing,the company
will provide a temporary bike for the customer.
2. Silled technician: Gear X is very careful about their technicians. Because if the
3. technicians have not that much skilled then the service quality will be low. Skilled
technician can increase the productivity quality.
4. Provide video documents: Gear X provide a video to the customer. They make the video
while they do the servicing of customers bike and they will provide to the owner of the
bike. So that customer can easily trust on their service quality.
5. Application: Gear X create an application for their customer where the each customer
have a different ID and the customer will get notification in their service period. The
customer will get notification for the discount offer and new services.
6. 9 hours service facilities: Gear X provide 9 hours service facilities for their customer.
7. Employee’s satisfaction: Gear X always tries to increase their employee’s satisfaction.
So that the employee’s turnover rate will be low and productivity will be high.

Weakness
1. Trust issue: Gear X is a new service company so the customer have less trust on their
service quality.
2. Need large investment: Gear X tries to provide high quality service. So they need large
amount of financial support.
3. Dependent on bike: Gear Xonly focus on bike so it can be a weakness for them.
Opportunities
1. Create employment: Gear X is a new company so it creates opportunity for the people
to earn money. The benefits of job creation is to maintain a healthy economic growth.
When jobs are created our economic also grow, and whenever people are working and
able to provide for themselves, the morale increases and this stabilize.

Threats
1. High price: Gear X provide different types of services and tries to provide the high
quality service.
2. Technological: Modern technologies are updating day by day very fast and it’s making
our lives very easy to live but there are cons and threats also which can harm our
personal, professional and social lives.
3. High expectation: Gear X offering so many new experiences to their customers. So the
expectation level will be high. If they can’t provide the best quality service then it will be
a big threat for Gear X.
4. Competitor: In this current situation we don’t have any competitor but in future many
competitor may arise. So it can be a threat for Gear X.
 Developing the service marketing Program
The marketing mix is a tool to help to determine product or brands offering. The tool guides a
marketer to create a marketing plan that puts the product in the right place at the right time and
at the right price also taking into consideration the service aspects of the business.

Product :
Product refers to the goods and services that offered to the customer, that will fulfill the needs
wants and demands of the customer. Here gear X try to provide some unique services to their
customer. As we know it’s a bike garage. We repair all kinds of bike here. We provide some
unique services as well. For example if a customer especially the office going people, is in a
hurry and suddenly he is facing problem with his bike and comes to our garage, we give him
another bike to reach his destination and take his bike to repair it. Here we are repairing the
customers bike also giving him some extra facilities for reaching the destination by giving him
another bike.
We also provide genuine mobil and ceramic coating. Nowadays it is very rare to get genuine
mobil.

Price:
Adjusting the price of a product also shapes the whole marketing strategy and affects the sales
and demand of the product or service. Pricing forms the perception of a new product in a
customers eyes. We will try to provide our service at a minimum range. In gearX we will provide
general service at 799 taka, premium service for sports bike service 999 taka and for bike wash
99 taka.

Place:
Placement is an important part of marketing for any product or service. The position and
distribution must be handled in a way that the service in accessible to potential customers where
they find it easiest to reach and get the service. In Bangladesh most of the roads are broken. Bike
riders are one of the sufferers of this. So gearX will be placed where customer can easily reach
within a very short time. And we will try to place it in a road side, or in any corner of the
highway so that anyone can see it easily when they are searching for a garage.
Promotion:
Promotion means a company’s communication towards its customers and the companies offering
to a customer . This includes advertisements, Brandings, Public Relations, social media
outreach , Special offers Etc. The promotion part must catch attention to the targeted customers.
Since we are providing some unique services so we will promote as much as possible so that
customers get to know about our product and services. For this we can use social media, one of
the biggest platform for advertising. we can also promote our product or services through
showing a TVC to the customers. When the customers will come to the workshop there will be a
TV screen where a tvc will be played and the tvc is about our new services, accessories etc.

Process:
The system and processes in the organisation need to be tailored to fit the employees’ needs in
order to optimize the result of the service in a way that it’s as quick, reliable and risk-free as
possible to minimize costs and make the experience pleasant from the customer’s point of view
because it’s the service they’re paying for. In gearX we will provide the service by repairing the
bikes. We will also provide them another service which is we will notify our customers to
change their mobil through app and sms. So here we can say we are following a process to
deliver our service to our customers through repairing, notifying and selling accessories.

People:
In marketing mix people means the assigned person from a company who interacts with direct
customers of a product or service. The employees of a business are vital in marketing activities
because it’s eventually them who deliver the service and service can be perceived as important
an offering as the company’s products. In gearX our employees will be highly skilled and
knowledgeable. We will assign those employees who are expert in various kinds of works. So
that if a customer comes with a critical problem, our employee can solve that problem.

Physical evidence:
Physical evidence is the exact location where the product or the service is delivered from. The
physical evidence is the customers experience while purchasing or taking delivery of their
desired product. This includes the environment of where the product is displayed, Experienced
by the potential customers. Since our main service is we will repair the bikes, so if any customer
wants to wait there until his bike gets repaired he has to wait somewhere. So we will provide a
convenient waiting room for these kind of customers. Where they can sit, watch television, read
magazines. As we said we will arrange a tvc where they can watch it and get to know about our
other services and accessories.
 Financial Analysis

Financial Process of funding

The biggest challenge for us can be to get funding required to launch and grow our business.
Also It becomes hard to get loan from Bank for starting a new business, banks look for business
who has experience and good amount of cashflow. For our business we would need to acquire a
building with free open space, this would cost us around 2 lac tk, landowners usually want this
amount of money in advance, beside these there is monthly rent for the shop. Also we will have
to buy instruments for bike servicing, cc camera, furnished furniture’s, personal computers, air
condition. If we sum up the amount we find that we need capital around 6 lacs tk.
We are 6 partners planning to invest 6 lac taka, where each member will invest 1 lac. Every
member will acquire this money from personal savings and loan. For small inexperienced
company like us it would be difficult to take loan from Bank for our business. All of our
members may acquire loan from his or her friends and family if additional funding is needed.
Members are liable to that party for taking the loan as it is their personal loan. We may also
invite friends and family to invest in the business. If business succeeds a return will be given to
these risk takers.
We will hire employees to look our business but problem can be we are 6 members,
inexperienced, don’t have skills in this business and anyone can get busy but now is the time we
need to jointly commit to share the passion, vision, long term opportunity and risk, we win or
lose. We are very clear that partner should stay no matter what. We will face rough times and
need to get through together. Nobody can afford to let the comp[any down.
Predicted Financial Performance
Our charges for different types of service are given below
Service Types Amount

General Service 799 TK

Premium Service for 999 TK

sports bike
Bike wash 99 TK

If we can give general service to 10 bikes on average daily our cash inflow from this would
be 7990 Tk per day
If we can give premium service to 5 bikes on average daily our cash inflow from this would
be 4995 Tk per day.
If we give 10 bike wash daily our income from this would be 990 Tk per day
Below is estimated cash inflow:
Service Cash in flow per day (in taka) Cash inflow per month (in taka)
General Service (10 bikes) 7990 207740
Premium Service (5 bikes) 4995 129870
Bike Wash (10 bikes) 990 25740

Total 13975 363350

Per day our total cash inflow would be TK 13975. If we give 26 days service in a month our
total amount would be 363350 tk. Our variable costs are salaries and wages, rent, electric bills,
water bills, internet bills. Total amount for our cost is estimated to be 2.5 lac tk only, if we
subtract this amount from total cash inflow we will have around 163350 tk net income in our
hand. If we divide this amount between our partners each partner will get 27000 tk share from
profit. In 4 months each partners will be able to claim their investment money.
 Conclusion
We hope our marketing plan will be like by everyone and we hope will be able to attract
customers by meeting their expectations. We will try our best to make customers happy.