Eship Assign

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Table of ContentsExecutive summary ....................................................................................................................................... 3

Mission .......................................................................................................................................................... 3

Objectives ..................................................................................................................................................... 3

PBC Summary ................................................................................................................................................ 4

Ownership ..................................................................................................................................................... 4

Start-up summary ......................................................................................................................................... 4

Start-up Funding ........................................................................................................................................... 5

Products ........................................................................................................................................................ 6

Protective clothing and safety gear .......................................................................................................... 6

Armoured Gloves .................................................................................................................................. 6

Winter/insulated gloves ....................................................................................................................... 6

Full-body armour .................................................................................................................................. 7

Waterproof riding pants ....................................................................................................................... 7

Elbow guard .......................................................................................................................................... 8

Knee guard ............................................................................................................................................ 8

Spine/back guard .................................................................................................................................. 9

Helmets ................................................................................................................................................. 9

Motorbike disk locks ............................................................................................................................... 10

Stickers (for promotion) .......................................................................................................................... 10

Services ....................................................................................................................................................... 11

Complaints against manufacturers ......................................................................................................... 11

Detailed comparison of motorbikes ....................................................................................................... 12

Market analysis ........................................................................................................................................... 13

Competition ............................................................................................................................................ 13

Market segmentation ............................................................................................................................. 13

Marketing strategy .................................................................................................................................. 14

Sales ............................................................................................................................................................ 15

Strategy ................................................................................................................................................... 15

Forecast ................................................................................................................................................... 16


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Finance ........................................................................................................................................................ 17

Short term ............................................................................................................................................... 17

Long run .................................................................................................................................................. 17

Breakeven Analysis ................................................................................................................................. 17

Recent achievements .................................................................................................................................. 18

Signing of MOU with SMILE. ................................................................................................................... 18

Honda Atlas factory visit ......................................................................................................................... 19

Metro car and bike show ........................................................................................................................ 19

PBC annual mega meet 2012 .................................................................................................................. 20


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Executive summary

Pakistan Bikers Club (PBC) will offer quality safety gear and motorcycle accessories to a growing market

of motorcycling hobbyists. For beginners, PBC offers a platform for learning safe riding techniques as

well as all the basic riding gear. For the experienced biker, the advanced biking gear like full bodyarmour jackets will provide greater safety. PBC will also assist in motorcyclists register their complaints

against the two Japanese motorbike manufacturers in Pakistan, namely, Atlas Honda and Pak Suzuki.

Over the past ten years, biking has developed an entirely new customer base among the youth of

Pakistan, ages 22 to 32. Last year, motorcycle sales for this age group made up almost 80% of

motorbike sales. There have been a big boom in the sales of motorcycles in Pakistan in the recent years.

In Lahore alone the motorcycle sales exceeded 18,350 units in December 2012 and sales are predicted

to grow by 35% this year.

Lahore is a city of more than 10 million residents and has more than 116 different motorcycle dealers

operation in it. Of these the largest three (by sales volume) are; Atlas Honda, Road Price and Metro.

There has been a growing demand in the market for motorcycles and there are more on Lahore roads

than all other vehicles combines. Despite of this fact, two wheelers industry is largely ignored in terms of

basic education (on riding a bike) and proper safety gear. PBC will cater to the demand of motorcycling

gears and equipment.

My main source for motorcycle sales figures was Mobile Magazine (http://mobileworld.com.pk/)

Mission

It is PBC mission to provide quality motorbike equipment and safety gear at a reasonable price. The

most important thing to remember is that every customer must be satisfied with our services.

Objectives

Establish a medium direct communication with dealers and motorcycle owners Ensure that the customer's needs are met and maintain a 90% customer retention ratio. Reach profitability by year two.


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PBC Summary

We started initial work beginning in 2010. The aim was to cater to the mostly ignored motorbiking

market in Lahore. We planned to provide products and services that are available to bikersinternationally. Our plan was to source these products from Sialkot where they are being made on order

for export only. The initial financing was done by the founding members.

Ownership

The founding four members, Zahid Malik, Talal Malik, Imran Bhatti and Foad Ahmed, will retain the

ownership and divide the profits equally among themselves.

Start-up summary

In the beginning we realized that the 2 wheeler industry in Pakistan works mostly via grapevines and

networking. So we started working towards establishing a network of contacts which would ideally

include:

Retailers Manufacturers Biking enthusiast Everyday bikers (commuters) Established names in motorbiking in Pakistan

We started arranging for various GTGs (get togethers) for bikers with the aim to interact and build a

network for our products. To keep our products a bit separate from the club, we branded them as PBC

MotorSports.

Initially all costs were covered equally by the 4 founding members. We decided against charging fee for

our club GTGs as to attract maximum number of interest and participants. We did however startedcharging rs.150 our members. This fee was one-off and covered the cost of providing an ID card to the

member.


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Start-up Funding

Start-up Expenses to Fund PKR 9,500.00

Start-up Assets to Fund PKR 60,500.00

Total Funding Required PKR 70,000.00

Assets

Non-cash Assets from Start-up PKR 5,000.00

Cash Requirements from Start-up PKR 55,500.00

Additional Cash Raised PKR 0.00

Cash Balance on Starting Date PKR 55,500.00

Total Assets PKR 60,500.00

Liabilities and CapitalLiabilities

Current Borrowing PKR 0.00

Long-term Liabilities PKR 0.00

Accounts Payable (Outstanding Bills) PKR 0.00

Other Current Liabilities (interest-free) PKR 0.00

Total Liabilities PKR 0.00

Capital

Planned Investment

Founding member 1 PKR 15,000.00Founding member 2 PKR 15,000.00

Founding member 3 PKR 15,000.00

Founding member 4 PKR 15,000.00

Additional Investment Requirement PKR 0.00

Total Planned Investment PKR 70,000.00

Loss at Start-up (Start-up Expenses) -PKR 9,500.00

Total Capital PKR 60,500.00

Total Capital and Liabilities PKR 60,500.00

Total Funding PKR 70,000.00


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Products

PBC offers many products. Below is the current portfolio. They source all their products from Sialkot,

Pakistan. We plan to set up our own production unit once we have enough sales to justify such a large

investment

Protective clothing and safety gear

Armoured Gloves

Winter/insulated gloves


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Full-body armour

Waterproof riding pants


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Elbow guard

Knee guard


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Spine/back guard

Helmets

PBC is selling Avex branded helmets in partnership with Matkhdoon Autos (They are Atlas Hondas

oldest retailers in Pakistan. They have been with Honda since 1975 and then with Atlas Honda).


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Motorbike disk locks

Stickers (for promotion)

We do not charge for these stickers and they are given out at GTGs for promotion of the club. However,at time we have had charged for these stickers.


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Services

Complaints against manufacturers

In Pakistan, the concept of after sales is literally non-existent when it comes to motorbikes. And thosefew manufacturers who claim to offer after sales service, like Pak Suzuki and Atlas Honda, are actually

running a sham. They hardly ever honour their warranties. PBC provides a platform for bikers to register

their complaints. We then write to the respective manufacturer about the issue and send a copy to their

parent company. Like in case of Pak Suzuki, one of our members had a problem with his new Suzuki

GS150 motorcycle. The frame was found to be bent and Pak Suzuki were making excuses for

replacement. They wanted to ride out the warranty period and then charge the customer. So we wrote

a letter to them and forwarded the same to Suzuki Japan. Within 2 weeks we have had a call from Pak

Suzuki head office in Karachi and the matter was finally resolved.


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Detailed comparison of motorbikes

We also offer comparisons between various bikes. Below is a sample of one of our comparisons relating

to the 100cc motorbike category in Pakistan.


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Market analysis

Competition

At the moment there are no other safety gear sellers in Pakistan. Usually riders buy gloves (not proper

riding gloves) from Anarkali, Lahore. There are also a few higher cc bike importers in Lahore who stock

such safety gear. But the price of these items is comparatively quite high as they have to include cost of

freight and 49% import duty.

PBC, on the other hand, sources its products from a small group of manufacturers in Sialkot, Pakistan.

These manufacturers only produce on orders from other countries. We aim to show these

manufacturers that there is demand for such products within Pakistan.

Market segmentation

Retailers It was important to target these are they are the front-men representing the company,whose products they sell, and are also the people whom the average bikers get in contact with

when he wants to buy a bike. So they were the people we contacted in order to facilitate discounts

for our club ID card holders.

Manufacturers We were surprised to learn that over 200 bike manufacturers operate in Pakistan,116 in Lahore alone. It is important to get in touch directly with the manufacturers as retailers are

often reluctant to pass on quality claims to the manufacturer. It is important to learn about their

strategies and also convey the message of the average biker in Pakistan.

Biking enthusiast These are the people who ride motorbike by choice (in contrast to by need).They can afford to buy a car but instead they prefer riding on 2 wheels. Usually they do interesting

short and long tours. If we can get them to use our product like body armour during their trips it

will largely help in gaining publicity and also generate a, hopefully, positive word of mouth

feedback.

Everyday bikers (commuters) These are our target market as they ride to and fro work. Theymake the largest segment of bikers in Pakistan. We need to educate them the need for safety gears

and proper motorbiking equipment.

Established names in motorbiking in Pakistan There are bikers in Pakistan who have done a lot topromote biking, two prominent names of todays generation are Farid Dogar (owner of Will Bikes in

Lahore) and Muhammad Iqbal Ghangla (from Multan who has covered all of Pakistan in just 29

days).


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Marketing strategy

Advertising with retailers PBC is actively meeting with motorbike retailers in Lahore in order to letthem know of our products and services. Some are now even displaying our products at their shops.

GTGs Get together are the best way to meet riders informally and tell them about PBC. This iswhere we also generate and update our mailing list. It also gives bikers a chance to learn from those

who are more experienced.

Exhibitions The most recent exhibition attended by PBC was at Johar Town where we got toshowcase our safety gears.

Motorcycle and car shows PBC has attended various car and bike shows like the one held lastmonth at Metro, Thokar, Lahore. In such events we also get good media coverage.

Newsletters We send out a monthly newsletter to all those in our mailing list. Telling them aboutwhats happening in the motorbiking industry and about our upcoming activities and products.

Website It is very important to have a website as it makes it easy for everyone to contact you andalso see what you offer. Website can also be a source of income through online advertising. But for

that we would require a lot more active users, which will hopefully come in the future

Social media A social media presence on facebook and twitter are a must for every small and bigcompany. The trend has been going around the world for a while and has recently also become

popular in Pakistan.

Magazine deal PBC has struck a deal with Mobile World. The deal is such that PBC must sell acertain number of copies to their members and in return we get an exclusive page every month.

Rallies Once in 3 months we organize rallies with various groups like Punjab Traffic Police andMetro motorcycles. The aim of these rallies is to highlight the importance of safe riding. By the way,

did you know that the speed limit throughout canal road is just 60km/h?!!

Donate a helmet campaign This is one of PBCs oldest campaign. At our GTGs we always ask ourmembers to donate helmets that they do not use. Then when we have enough helmets (at the

moment we have decided to have at least 30 helmets) with help of Punjab Traffic Police, riders who

are not wearing helmets are stopped but instead of a challan they receive a free helmet.


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Sales

Strategy

The sales strategy that PBC is to develop an awareness of safe riding in the biking community. We will

target our the segment of market as per mentioned above 9i.e. retailers, manufacturers etc). We plan

to develop a website exclusively for our products by name www.pbcmotorsport.com .


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Forecast

PBC believes that they can grow immensely in the future as the result of increased safety awareness

among bikers in Pakistan. And also, we do not have any direct rivals.

Sales Forecast

Year 2013 Year 2014 Year 2015

Sales PKR 250,000.00 PKR 290,000.00 PKR 340,000.00

Online advert revenue PKR 0.00 PKR 0.00 PKR 12,000.00

Total Sales PKR 250,000.00 PKR 290,000.00 PKR 352,000.00

Direct Cost of Sales

Administrative costs PKR 50,000.00 PKR 75,000.00 PKR 90,000.00

Online webiste PKR 5,000.00 PKR 5,000.00 PKR 5,000.00

Total PKR 55,000.00 PKR 80,000.00 PKR 95,000.00

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2013 2014 2015

Sales

Online ad sale

Admin cost

Website


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Recent achievements

Signing of MOU with SMILE.


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Honda Atlas factory visit

Metro car and bike show


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PBC annual mega meet 2012

PBC sponsored trips

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