TWIN RIDER

CNG BIKE

Presented By:
1.Syed Ahsan Qadri
2.Muhammad Nadeem Haider
3. Saqib Munair
4. Syed Abid Nasir
HOW CNG BIKE IS AN
INDUSTRIAL PRODUCT?
MISSION STATEMENT

We ride in the eyes of our customer by

delivering quality and environmental
friendly product.
VISION STATEMENT

To bring a change and innovation in the

present market by meeting industrial
customer’s requirement and setting higher
standards of our product. And bringing new
products for different segment with
capturing maximum market share.
SCHEME OF PRESENTATON

INTRODUCTION.
STATEMENT OF FINANCING NEED.
EXTERNAL ENVIRONMENT
ANALYSIS.
INDUSTRY & COMPETITOR
ANALYSIS.
COMPANY ANALYSIS SWOT.
SEGMENTATION.
SCHEME OF PRESENTATON

PRODUCTION PLAN.
OPERATIONAL PLAN.
MARKETING PLAN.
PRODUCT TACTICS.
PROMOTIONAL TACTICS.
FINANCIAL PLAN & BUDGETING.
INTRODUCTION
Twin Rider Ltd Pakistan based Company.

100cc CNG bike.

Local manufacturing capabilities.

Partnership Based.
FINANCING
60% Equity.

40% Debt.

Government Support
SALE’S TREND & EXTERNAL
ENVIRONMENT ANALYSIS
2003-07
MODEL 2003/04 2004/05 2005/06 2006/07
HONDA 90,064 117,209 190,395 300,000
YAMAHA 24,500 29,000 46,673 60,000

SUZUKI 5,000 5,000 9,082 20,000

CHINESE 9,000 35,000 109,932 120,000
TOTAL 128,564 186,209 356,082 500,000
SALE’S TREND & EXTERNAL
ENVIRONMENT ANALYSIS
2003-07
Sales Trends of the Industry (in Units)
350,000

300,000

250,000

200,000
HONDA
150,000
YAMAHA
SUZUKI
100,000
CHINESE
50,000

0
2003/04 2004/05 2005/06 2006/07
MARKET SHARE

24%
60%

Honda
4%
12% Yamaha
Suzuki
Chinese
INDUSTRY ANALYSIS

Price Cut downs

Extreme Competition
CNG Bike (New Venture)
High Demand
Market Growth
Economic Boost
SWOT ANALYSIS
STRENGTHS
Product:
First time CNG bike in Pakistan.

Low development cost.

Low maintenance cost.

Easy availability of spare parts.

SWOT ANALYSIS
Price:
Very competitive price.

Reasonable price of spare parts.

Place:
Major towns and cities of Pakistan.
SWOT ANALYSIS
People:
Highly qualified,committed staff.

Technological and managerial expertise.

Trainings & R & D.

SWOT ANALYSIS
WEAKNESSES
Limited Investment.

No safety measures installed against bike

snatching.

Giant Competitor Entry

SWOT ANALYSIS
OPPORTUNITIES
Growing market for motorcycle –
Estimated bikes 600,000-650,000 by the end
of 2008 compared to 500,000 in 2007.

Cost effective CNG bike, attracting

industries.

High Petrol Prices

SWOT ANALYSIS
THREATS
Competitors launching new models with
stress on reduced price.

New competitors bike can enter into CNG

segment with high budget.
TARGET MARKET ANALYSIS
Banks.

Pharmaceutical Companies.

Restaurants.

Sales Organizations.

Courier Companies.
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.
SEGMENTATION

Working Class.

Measurable, Relevant & Operational.

POSITIONING

Functional Positioning.

More for less Positioning Strategy.

PRODUCTION PLAN

Manufacturing Process

Physical Plant

Machinery & Equipment.

Raw Material Suppliers

OPERATIONAL PLAN

Services at Karachi, Lahore & Peshawer.

Nation wide Network

Just in Time (JIT)

Supply & Value Chain

MARKETING
PLAN
MARKETING PROCESS
PRODUCT TACTICS.
PRICING STRATEGY.
ACTION PLAN.
BUDGETING.
MEASUREMENT.
CONCLUSION.
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.
PRICING STRATEGY
COMPETITOR BASED PRICING
STRATEGY
Reasons:
Large number of competitors.
Price reduction by competitors.
Monopolistic competition situation.
Low priced Chinese brand.
 TWIN RIDER VS COMPETITORS
PRICES.
Serial no. Manufacturer Brand Price in PKR
1. Atlas Honda CD 100 60,000
2. Yamaha Royale 100 55,000
3. Yamaha Excellence 100 57,000
4. Suzuki Shogun 100 59,000
5. Suzuki Sprinter 110 60,000
6. Qingqi QG-100 40,000
7. Twin Rider TR-100 40,000
MARKET PENETRATION
PRICING
Twin Rider sets market penetration pricing
strategy in order to
Capture the market share.

Attract large number of customers.

PROMOTIONAL STRATEGY
Trade Shows.

Catalog & Data Sheet.

ACTION PLAN
LAUNCHING
Introducing CNG bike when petrol prices
are on fire.

VENDORIZATION
Higher profit margin by getting support
from more vendors in future.
ACTION PLAN
NEW BRANDS
Penetration into attractive and vacant
segment like Twin Rider the concept of
CNG bike.

EXTENSIVE PROJECTS
Meeting high demands, increase profit and
more contribution in economy.
 BUDGETING
Serial no. Budget Allocated for Amount in PKR

1. Total Budget 500 Million

2. Plant assets+Assy plant 250 Million

3. Marketing &Advertising 50 Million

4. After Sale Service 1 Million

5. Development 150 Million

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
FUTURE PLAN
Increased Volume

Low Cost Supplier

Technological Innovations

Merger
 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 Million
Our Target for 1st year = 50000 bikes Sale
 FINANCIAL PLAN

2500000000 CEO
Break Even
(Dir Tech
Point
& SCM)
2000000000

1500000000 TFC
Dir Finance & Prod Dir Mktg & Admin.
TC
1000000000
TR
500000000

0
0 5000 10000 20000 24800 30000 50000
1 2 3 4 5 6 7
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
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

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
THANK YOU