Final report on CNG Trac Kers (Final)

I. Executive Summary

This business plan has been created in order a marketing plan on

a new and innovative CNG transporting service system in Dhaka

called CNG TracKer’s. CNG TracKer’s is a service for the people

of Dhaka to book an auto rickshaw for local travel, simply by

dialing a phone number (2648-CNGT). The CNG TracKer’s group would

install a GPS tracking device in their associated CNGs. With the

help of this GPS tracing device CNG TracKer’s would be able track

all the movements and locations of the CNGs.

When a customer calls the CNG TracKer’s call center, a trained

customer service associate receives the call and notes down the

passenger's details such as their pick up location, contact

number and the drop off location. These details are then via SMS

to the CNG TracKer’s auto rickshaws closest to the customer’s

pick up location, who are presently not ferrying a customer (This

helps to connect a passenger with an empty auto rickshaw at the

earliest). When the auto rickshaw driver reads the SMS, he

presses a button on the CNG TracKer’s GSM tracking device.

Instantly, a confirmation is sent to the customer with details of

the CNG TracKer’s auto rickshaw driver such as his name, contact

number and auto rickshaw registration number. Simultaneously, an

SMS is sent to the auto rickshaw driver with the passenger's

details so that he can reach the pick up location on time.

Business Plan on CNG TracKers

This business plan has been divided into several categories.

Giving its reader a complete and concise impression of what CNG

TracKer’s is all about. How it is going to implement its ideas

into reality. How it has segmented the market. What are the

strategic decisions that should be made based upon thorough

research.

The plan discusses the marketing plan, operations plan,

organization and management plan. Some key financial aspects of

the services are evaluated giving estimation of the gross

expense, revenues, profits and breakeven point of the

organization.

II. Brief Description of thebusiness

Entrepreneur Susama Nasrin SumiAlamgir HossainMd. Omar FarukMazharul IslamRuhul Amin

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Em ployees Skilled Sem i-skilled UnskilledPermanent 12 3 N/ATemporary N/A N/A N/ATotal 12 3 N/A


1. Name: CNG TracKer’s

2. Nature: Transportation Service

3. Sector/Industry: Transportation

4. Mission: Through the CNG TracKer’s we are promising to deliver

our customers with convenience, comfort and secured journey…

all along and everyday.

5. Objectives: To increase the worth of the company by 3 times in

10 years by expanding all over Bangladesh and creating value

for the customers.

6. Employment Status:

7. Brief Introduction of the Entrepreneurs:

No.

Name Education

OtherExperience

BusinessExperience

Ownership

01 Susama NasrinSumi

MBA N/A N/A 20%

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SERCVICE CONTACT 2648E-M AIL www.CNG [email protected] EBSITE www.cngtrackers247.com

CNG TracKers 24-7 contact Services


02 AlamgirHossain

MBA N/A N/A 20%

03 Md. Omar Faruk MBA N/A N/A 20%04 Mazharul Islam MBA N/A N/A 20%05 Ruhul Amin MBA N/A N/A 20%

8. Type of Ownership: Partnership

9. Total Investment:

InitialInvestment

Fixed Asset Current Asset Total

1930000 BDT Included ininitial

investment

5, 70,000 BDT. 25,00,000 BDT

10. Loan and Equity:

Loan Equity Total5,00,000 BDT 20,00,000 BDT 25,00,000 BDT

11. Potential Market:

Page | 4

Local InternationalDhaka None


III. Description of the Service

CNG TracKer’s is a service for the people of Dhaka to book an

auto rickshaw for local travel, simply by dialing a phone number

(2648). The CNG TracKer’s group would install a GPS tracking

device in their associated CNGs. With the help of this GPS

tracing device CNG TracKer’s can track all the movements and

locations of the CNGs. We define the service as three easy steps

below:

PHASE 1: When a customer calls the CNG TracKer’s call center, a

trained customer service associate receives the call and notes

down the passenger's details such as their pick up location,

contact number and drop off location.

PHASE 2: These details are then sent via SMS to the CNG TracKer’s

auto rickshaws closest to the customer’s pick up location, who

are presently not ferrying a customer (This helps to connect a

passenger with an empty auto rickshaw at the earliest). When the

auto rickshaw driver reads the SMS, he presses a button on the

CNG TracKer’s GSM tracking device.

PHASE 3: Instantly, a confirmation is sent to the customer with

details of the CNG TracKer’s auto rickshaw driver such as his

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name, contact number and auto rickshaw registration number.

Simultaneously, an SMS is sent to the auto rickshaw driver with

the passenger's details so that he can reach the pick up location

on time.

IV. Technical Plan

4. In-depth Stages in service process:

When a customer calls the CNG TracKer’s call center, a trained

customer service associate receives the call and notes down the

passenger's details such as their pick up location, contact

number and drop off location. These details are then sent via SMS

to the CNG TracKer’s auto rickshaws closest to the customer’s

pick up location, who are presently not ferrying a customer (This

helps to connect a passenger with an empty auto rickshaw at the

earliest). When the auto rickshaw driver reads the SMS, he

presses a button on the CNG TracKer’s GSM tracking device.Page | 6


Instantly, a confirmation is sent to the customer with details of

the CNG TracKer’s auto rickshaw driver such as his name, contact

number and auto rickshaw registration number, which are later

stored to the server’s customer database. Simultaneously, an SMS

is sent to the auto rickshaw driver with the passenger's details

so that he can reach the pickup location on time.

The payment process is done checking the location, meter fair,

time along with the service charge taken. This updated

information are then stored to the data base and account balance

is updated, simultaneously under the registration number of each

CNG.

V. Marketing Plan

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We as CNG TracKer’s strongly believe that, clear understanding of

the market is necessary to build the marketing plan. That is why

marketing research is very important which the very base of any

marketing plan is. The current transportation condition and

facilities of our country is not up to the mark to ensure the

quality and commitment we are promising as CNG TracKer’s. This is

not merely of our statement, but the result of the marketing

research. The research and analysis also helped us determining

our Key competitors, targeted segments and setting up the

strategies.

5.1 Major Competitors and their Market Positions:

Since, our company CNG TracKer’s and the CNG GPS Tracking service

is totally new in our country currently we do not have any direct

competitors in market. But there are some indirect competitors

exist in the current market. They are already established,

influential and popular in terms of rendering services because of

incurrence of technological infrastructures, other popular and

available public transport facilities. We have identified some of

key indirect competitors:

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Rank Indirect Competitors1 CNG Owners (Associations)

2CNG garage Owners (Selected

locations)

3Public Transports (along the

selected routes)

4Taxi Cabs (Black, Blues,

Yellow)


5.2 Comparison of Services:

Service marketer frequently complains about difficulty of

differentiating their service because of deregulation in

communication, transportation, energy banking which results in

intense price compaction. However in our service we will

differentiate our service through people, process and physical

evidence that will add value to the consumer. Our competitors are

cashing on to the current road and highway conditions, traffic

rules, laws, and most prominently the huge traffic load on roads

(especially at peak office hours). But we are dealing with the

positives in terms of value propositions of the customers. Thus

the primary service package of our company is to provide

comfortable, affordable and most prominently quick transportation

services through ensuring availability of CNG’s, thus dealing

with the most basic expectations of the consumers. These will be

our core competences. Moreover, we clearly know that we have to

share the same customer bases with our competitors, thus

operating onto the existing market the service different ion

(from them) would be the ultimate key (which would also be our

competitive edge)

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We will also try to cash on to the threats and hassles of regular

transport facilities (Like Bargaining, price and usage of

meters).

5.3 SWOT Analyses of our services:

S (Strength)

Analyzing a product or service with the current market situation

is known as SWOT analysis. In this we discussed about the

strengths & weakness we have, the opportunities we have in

present market and the external internal threats which will

create obstacle.

Timing: Dhaka city, the 22nd largest populated city around the

world containing 9 million of people. Everyday people need

transportation to go to their work place, school, college & other

places. But every day in the morning they have to go by standing

in crowded bus. Most of the medium level job holders use buses.

Female job holders travel by CNG Auto rickshaw on the way to

their work place. There 1 million vehicles running in Dhaka city

among those 300,000 vehicles are CNG fueled which includes Taxi

cab & CNG Auto rickshaw, so the quantity of CNG Auto rickshaw

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Criteria CNG TracKers Competitors (Regular CNG's)Values Comfort, convenience, assurance , reliability Bargaining, HasselDemand Safety (Road and Protection) Not SaferRegular fare M eter fare M ore than M eter (CNG's)Trip Go anywhere within Rout Not to all locationsAvailability Specific CNG counters Non assurance over availabilityLoyalty Status Higher LowerTrip, charge within range Excess (Beyond meters)


much lesser then the demand. So the people have to wait & bargain

with the drivers. Sometimes they reach late to the workplace only

for not having CNG at proper time. Our service is to provide CNG

at proper time. As we will contact with those drivers who will be

near to the location of the customer so customers will get their

ride at proper time. By maintaining time we can grab maximum

market share.

Fare rent: Our customers only have to pay the fare determined on

the meter of the CNG Auto rickshaw so there will be no bargaining

about the fare of the ride. And we will charge only 39 TK as our

service charge so it will be easier for our customers to pay.

Services to customers: Same as meter fair, convenience and

availability, safety and security, call book services and safer

trip.

W (Weakness)

Huge traffic: Dhaka city is a city of traffic. You will not find

a single day without traffic jam at the street. And this traffic

jam is a great threat for our service. If the driver gets unable

to reach to the location of the customer timely because of

traffic jam then the customer will naturally cancel the booking

and the expense will become loss for our organization.

Fuel Price: Increasing gas price is one of the important problems

for our organization. Within last few months the gas price

increased two times in our country. So it is uncertain when the

gas price will increase again. If gas price increases then it’s

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obvious that the CNG fare will also increase & the drivers will

claim extra fare from the customers. According to our policy

customer will pay the fare claimed in meter & also the service

charge but if the gas increases then the customers might lose

interest to take our service.

Network system: We will use GPS system for locating our customer

after getting booking. So it’s a technology based service we are

providing. But because of weather problem the GPS might not work

properly so thus we might lost the location of our expected

customer.

O (Opportunities)

First time in region: As it’s totally a new & unique service in

our country so we think it will be popular. In a crowded city

like Dhaka the number of Taxi cab & CNG Auto rickshaw is far less

than the demand. Getting a CNG at proper time is becoming golden

egg of goose nowadays. So, providing a ride at a proper time will

be great opportunity in this situation.

Technological advancement: As we mentioned earlier that our

service is a technology based service, there will be GPS system

in the CNG Auto rickshaw so that the driver can trace the

location of the customer easily. However, the most important

thing is that our government has already launched 3G technology

in our country from the middle of the month January in 2012 (with

Teletalk). As this the era of 3G & 4G technology, so it will be

easier for us to cope up with the technology. Also it will be

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helpful for us to get license as because our government is

determined make Bangladesh digital.

Time schedule: Office hours, exam periods are main time for

providing our service, because nobody wants to be late to its

working place, especially during the time of S.S.C. & H.S.C.

final exam most of the students go to the exam center by CNG. So

they will be helpful if they get a CNG Auto rickshaw at their

need. In Dhaka city traffic jam occurs at the time o office hour.

People leave their residence one or half hour earlier in order to

avoid traffic jam. By our service they will get a ride in proper

time & they can manage their time properly.

T (Threat)/C (Challenges)

Government rules and regulations: Our business will be more or

less influences by the “mileage” (meter rent/distance) determined

by the Government, thus we won’t be able to alter it frequently.

Strike: On strike days travelling by CNG Auto rickshaw is risky.

People might get injured at anytime. On those days our services

remain closed.

Bad weather: In bad weather there will be less amount of CNG Auto

rickshaw are available in streets. They might claim some extra

unethical charge which might hamper to our organization.

Soaring Gas prices: Raising gas price will raise the fare of CNG,

which is also a threat for our organization.

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Locating Customers: Getting a driver near to the location of a

customer sometimes become difficult. On that case we will have to

refuse those bookings which will hampers to our organization.

Off-peak: At off-peak times there will be lesser customers than

expected.

5.4 Marketing Area:

For our convenience of operations we have planned to divide the

whole Dhaka city into 4 different Zones, form 4 different angles.

We are planning our head office to be located at any central

locations like in Matijheel. This central office will be used as

the call centers, central IT hub and GPS tracking centers for the

service, from which all the operations will be controlled and

monitored. There will be 4 more different CNG service

distribution centers (without Matijheel) /CNG Stands at the

scattered locations in: Gajipur (N), Jatrabari-Sadarghat (S-W), Mirpur (W),

Khilgaon (E) centering Matijheel. The services will be operated

connecting routes and roads for these 4 major locations.

5.5 Target Customers:

Market Segmentation:

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Division (***) DhakaAreas (***) M ajor routes of selected places

Social Class (***) Upper M iddle class and middle classLife style Busyness, urgency, lavish and RoutinedBenefits Quick, Convenient, Smart and Safe

Loyalty status Strong and Committed

Geographic

Psychographic

Behavioral


In market segmentation, we will be targeting all the segments of

people according to their needs and wants. The following table

shows the market segmentation.

Since our service involves the very

new GPS tracking system and high

tech services which is very new in

the market typical service also

follows the segmentation pattern

throughout the “Technology Adoption Life

Cycle”. We will initiate our high tech

services, primarily focusing on to

the “Innovators” (as our primary customers who will pursue our

service aggressively, and with due interests primarily like:

Office going peoples) and subsequently the “Early Adopters “or

“Visionaries” (habituated customers who will take our new

services especially referring from the innovators like: Students

and distant travellers).

Targeted market:

From the above market segment, we have chosen to concentrate on

Income and Occupation from Demographics segment, Social Class

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from Psychographic segment and areas from Geographic. Since our

service variability is very low (No differences), initially, we

are actually planning to offer our services through the

“Segmented marketing strategy” to the segments we have already

selected.

Considering that our ideal customers will be the ones who belong

to the upper middle class and middle class of the social status

irrespective of where they are living within the Dhaka city

(Initially). Our focus will be primarily on the corporate sectors

(Innovators) and to the educational institutions (schools,

college, and universities as early adopters), where the quality

assurances along with time and urgency plays critical roles. More

acutely, our focus will be on some occasional days like

examination dates, traditional days etc.

5.6 Pricing:

As a part of our business, our intention will be to think from

both of the perspectives of value exchange mechanisms, so, to

settle prices considering our market conditions and associated

operational expenses and the ability of our target. Since, ours

is a service based business there would be very little options

for us to differentiate the prices and also alter it according to

the segments especially considering the beneficiary status of the

business. We would try to maintain our level best to keep the

price constant, irrespective of increase of gas cost, and

Page | 16


different variable costs including maintenances and repairing

costs etc.

Pricing Approach

To set easier means of calculating return and we will follow the

most convenient “cost based pricing approach” to project level of

pricing from the Breakeven point. Where at first we will

determine the total cost incurred for providing the service plus

adding a certain percentage from the profit margin (See pricing

strategy).

Thus, to earn maximum revenue our target will be to minimize the

cost of our phone service operators through negotiation. Thus we

will try to make contract as lower price as possible since, we

will cover the most of Dhaka city areas, including some key areas

and routs where our targets at time would be widely available, we

strongly believe that, due to the cost based price setting

strategies, pricing competition with our existing competitors

(indirect) will be minimized.

Pricing Structure:

As soon as the customer calls to our “call centers” there will be

certain added charge for the calling which will be based on “Odd

pricing method’’ (Tk. 33.99). The marginal amount of 18.99 Tk.

will be delivered to the “CNG TracKer’s” service accounts balance

automatically as quickly the service is contracted. Thus the

sales datasheet will be automatically updated and finally the

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Rests will be provided to the service associates as commissions.

(Eg: Call service providers for using their networks).

Our pricing structure will be wholly based on some earnings

sources covering direct expenses from the services. Moreover,

here will be different fixed charges of payments (certain

percentages) for different route which would be taken from the

earnings of the Drivers, which would be very nominal (10% to 15%)

and on Avg. 7.5%, depending on distances (Meter fare).

Pricing StructureFROM SERVICE (Tk.) FROM OPERATIONS (Tk.)

Servicecharge

Total(Fixed) Route

Charge on Meter Trips(%) on Avg. 200

tk./Trip TOTAL

18.99 18.99Route 1 =200*7.5%=15 33.99

The service price irrespective of the routs will be same, but an

avg. 7.5% will be added on the respective meter rent, thus will

be different from rout to route (distance coverage and required

time).Below we are giving the pricing structures for a single

route:

[Note: The other 3 routes will be obliged to follow the similar pricing pattern]

[The rest of the fare [200-(200*7.5%)] =185 will be provided to the drivers]

5.7 Marketing Strategy:

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Promotional strategies and actions:

As the CNG TracKer’s we want to see each travelers as our value

added customers, not only for the travelling but also for the

lifetime. We think our promotional mediums will be very much

helpful in this regard to build the rapport and long term

customer relationship, which is the basis of marketing. Moreover

we will be able to provide the customers information about our

services, feature and grievances through different promotional

mediums. Although, we have no plan to be too much creative, as we

want to exploit the most out of the competitions within the

existing popular mediums. Planning these overall we thing the

segmented promotional method would be the best for us.

We thing the cheapest medium should be the priority to start for.

That’s why social mediums, selected popular local sites and then

our websites will be good options to start at first hand. That’s

why we will be having our personal online site

www.cngTracKer’s247.com, where we will provide necessary information

needed for customers’ convenience. At the beginning we will be

using a huge sum of money on our promotional activities. Thus we

have a plan to use “Above the line promotional mediums” like

newspapers, magazines satellite televisions, social mediums and

bill boards for the advertisements. TV advertisements will be on

the on the “Giant roadside open screen TV” mostly at the peak

travelling hours, and between the prime news and popular shows

(Like celebrity shows, talk shows), intending solely to our

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targeted customer bases, who will mostly be accessed through such

strategies so that our message is properly conveyed to them.

Besides, of our selected routes billboard advertising of our “CNG

TracKer’s” will be also be undertaken in the commercial and high

class areas of the city like Motijheel, Karkrail, Paltan, Baily

Road, Sonargaon Road, Dhanmondi, Bijoy Sharani, Banani, Gulshan,

Uttara, Baridhara, including our selected routes. Since, we are

operating on the geographical segmented basis we will use the

personal selling mediums like leaflets and brochures.

As we grow big, we also have plans to increase sales promotions and

using more acute “below the line mediums” like promoting

registered “traveling pass”, “Off peak discounts”, organizing

“CNG parade” semi-annually. Moreover, we will also update the

service features our website (www.cngTracKer’s247.com) to draw

the potential customers, besides rendering services online.

On the growing phases of our business, as a part of the more

expensive strategies, our plan will also include signing contract

with a celebrity to become the Brand Ambassador of our “CNG

TracKer’s”. We strongly we believe this will be a very useful

strategy as the life style of most people over the globe is

highly influenced by that of the celebrities. Our promotional

strategies and action program is completely based on fulfilling

our objectives that will lead us to our final goal. Moreover, the

strategies that are implemented will help us capture the market

share.

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http://www.cngtrackers247./


Positioning strategies:

Our first concern is our customers and the quality of service we

deliver. The best approach to keep our customers satisfied is to

provide them with the highest service and our service is

differentiated on quality, commitment, conveniences, reliability

and safety. Considering that, as a part of fitting the best

advertisement strategies we can focus onto the “Customer context”

thus can using the real life situations to promote our company.

For e.g.: using context locations of obscured areas (unsafe) or,

locations where traffic jam is prominent we can advertise our

product.

Pricing strategies:

We plan to set our pricing strategies based on our business

operations and objectives. Since for such huge initial costs of

the technology intensive businesses and segmented operations

initially, as a new service provider we will try to cover the

fixed costs as quickly as possible charging higher prices from

our customers to skim through the revenue layer, from our

selected customer base and operational areas but, with sufficient

values in turn. Moreover we think that, currently our closest

competitors CNG’s are already charging higher (even double or

more, beyond meter price). So, there are no points, that our

price will inflict our customers negatively.

But once, we will be able to expand ourselves to more areas, we

have a plan to set our pricing strategies considering expansions.

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This can only be earned through creating demand for our services

to the mass level beyond the segments or, within the segments

more intensively. Thus, adopting “Zone based pricing strategies

“we would try to review our unit pricing adjusting to zones and

reduce the price slightly diverging from the skimming strategies

to more onto the penetrations. We believe, the strategy will

indirectly create pressures on our key competitors to reduce

their prices if we can ensure the availability of the quantity in

future. It will be more effective considering the huge “price

sensitiveness” of the customers. Another thing is that as we set

our price low as a result sales will increase and will reduce our

distribution, production and promotion cost for our service. It

will increase our profit as well, which would be mandatory for

our growth and sustenance.

Service distribution strategies:

We have currently planned to offer our services primarily to some

selected routes (regular and remindful) of Dhaka city by

considering the most hectic and busiest locations at the peak

hours like commercial areas, educational institutions, railway

and bus stations and airports, where the urgency is very much

likely. For example we have targeted these 4 routes in Dhaka City

are very much of such concern selecting 4 key locations which

will be acting as the junctions:

Rout 1 Mirpur-Gulistan -Jatrabari

Rout 2 Matijheel -

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Uttara- TangiRout 3 Khilgaon-TangiRout 4 Sadarghat-Khilgaon

Now, to render our service more efficiently; moreover in each of

this place we will have a CNG stand, so that the drivers can

quickly travel to grab the nearest customers. Moreover, vital

role in the transportation service because it’s very important

for “CNG TracKer’s” to identify the peak locations and time

period of different locations.

Market expansion Strategies:

Our future plan will be wholly intended to recognition, growth

and sustenance in the broader marketing environment. We as a

partner will always contribute a certain percentage of our

earnings to the business growth and development thus will try to

avoid the excess burden of debt for the growth. Once, we will be

able to establish ourselves in the market we have a plan to

provide “undifferentiated services” irrespective of any

profitable and value driven segments primarily across Dhaka and

then to whole Bangladesh. Our future plan will be to increase the

service stations and routs along with the no. of CNG’s. Moreover,

to recognize our service to the potential and untouched segments,

our target will be to provide the customers with online booking

service beyond the call center services. We believe that

technology is the cheapest but fastest means of growth. So, we

have a plan to build more Service stations, establish our own

network towers and modernize our services removing the

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experimented drawbacks and most importantly our customer service

centers beyond Matijheel and include websites Moreover visiting

our company website, one can enter details of their locations.

Lastly we have a plan to be listed for the stock market to issue

our stocks at capital market. Considering the facts that, the

Dhaka city dwellers prefers constant personal transports more

frequently to travel (with increasing no. of private cars) we

also want to go for the CNG contract business especially when we

will have good number of CNG’s to operate. We expect, this will

be a constant and big source of revenue which will add value to

our material growth.

5.8 Marketing Budget: (Monthly)

5.9 Risk of Business:

Non- Association and co-cooperativeness

Drivers Strikes

Rise of Fuel prices

Huge Expenses

Dependency on services and promotions

Lack of Political influences

Liquidity crisisPage | 24

Item BudgetAdvertisement (TV, newspaper, radio, Billboard) 30000Online advertisement 3000Direct Promotions (Hiring sales person, brochures, leaflets 17000Distributions 30000Sales Commission 20000

Total Tk. 100000


Flood and available road conditions

5.10 Seasonal Trends:

HoursW eek Days W eek ends

Peak Hours 7:30 AM -9:30AM , 4 PM -6 PM to 9:30PM 12:30PM -4:30Off –Peak Rests 8AM -10:30AM ,

RestsEid, Puza, Shopping,

Regular Seasonal

VI. Operations Plan6.1 Service Implementation Schedule:

6.2 List of Fixed Assets and their Depreciation:

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Fixed Assets Quantity Price (in BDT) Durability of Assets Depreciation (BDT)M obiles 30 150000 5 years 7500GPS device 20 120000 5 years 12000Call centre accessories 20 100000 5 years 5000Computer & accessories 15 200000 5 years 10000Router 2 50000 5 years 2000Hub 2 50000 5 years 2000Furniture 20 500000 5 years 5000Generator 1 500000 8 years 10,000Air conditioner 3 150,000 5 years 15000

Total 1,820,000 68500


6.3 Cost of Raw materials:

Since, we are buying all the produced things from the

manufacturer; the costs of raw materials are not applicable as

our cost.

6.4 Production Cost:

Since we are in service oriented business, we don’t have anyproduction costs.

6.5 Repair and Maintenance Cost of Fixed Assets:

6.7 Workforce engaged in service:

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Fixed Assets Repair & M aintenance Costs per year

M obiles 3000GPS device 3000Call centre accessories 10,000Computer & accessories 50,000Router 1000Hub 1000Furniture 5000Generator 50,000Air conditioner 20000

Total 143,000

Description AmountAdmin officer (1*15000) 15000IT engineer (1*15000) 15000Call centre executives (10*10000) 100000Guard (2*5000) 10000Floor staff (1*5000) 5000

Total 145000


6.8 Service Overhead cost:

6.9 Inventory Management:

We don’t have any inventory management process to follow. The

reason is that we are in a service oriented business.

VII. Organizational and Management Plan

7.1 Organizational structure:

Sl. Name Experience Qualification

1 Susama Nasrin Sumi None MBA2 Alamgir Hossain None MBA3 Md. Omar Faruk None MBA4 Mazharul Islam None MBA3 Ruhul Amin None MBA

7.2 Associating with Organizations:

We will try to be affiliated with Grameen Phone because we would

use their service in our call center, considering their network

strength and technical infrastructure.

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Description References CostUtilities 5000Depreciation of fixed asset Operation plan 53500

Repair and M aitenance cost Operation plan 123000Rent 300000Others 10000

Total 491500


7.3 Succession Planning:

There are five partners involved in this business venture and

they all have equal share and rights in it. If a partner is

absent for any reason the other four will share the work load and

responsibility amongst themselves.

7.4 Business Start-up activities and Costs : (Tk.)

Sl. Business start-upactivities

Time Cost

1. Business plan preparation 5 months 200002. Registration and license

for business3 months 10000

3. Application for loan 1 months 100004. Contract/Agreement 1 months 50005. Purchase of Rent(one

time)2 months 25,000

6. Connection of utilities 1 months 10007. Recruitment 2 months 10,0008. Initial Advertisement and

promotion1 months 100,000

Total 16 months 181000

7.5 Office Equipment (fixed cost): (Tk.)

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Sl. Fixed Asset Cost Duration Depreciation1 Stationaries 1000 N/A N/A2 Stand fans 8000 2 years 8003 Ceiling fans 10000 2 years 10004 Furniture 50,000 5 years 5000

Total 69,000 6800

7.6 Salary of the employees: (Tk.)

Sl. Designation Salary (yearly)1. Engineer 150002. Admin Officer 150003. Guard 100004. Floor Staff 50005. Call Centre Executives 100000

Total 145000

7.7 Administrative Expenses: (Tk.)

Sl. Description Cost1. Depreciation of office

equipment6800

2. Salary of employees 1450003. Office Rent 25,0004. Office Utilities 50005. Stationaries 1000

Total 182800

7.8 Monitoring and Evaluation (M&E):

All the partners of the business will monitor the activities of

the call centre on a daily basis, according to their convenient

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schedules. A meeting will hold on every week consisting of all

the assigned partners and employees to discuss about the

prioritized and pre planned agendas. The feedback and decisions

will be announced on every 3 months.

7.9 Business Social Responsibility (BSR):

As a part of our social responsibility we will try to use slogans

addressing contemporary social issues by painting them on the

body of the CNG’s. As, one our intention is to provide safer trip

to the Customers, we will also arrange CSR activities concerning

help and fund raising for the peoples injured and affected

through road accidents. They will also get 20% discount on every

Trip, issuing and registering with proper medical certificates

and documents. Moreover we will also seek collaborations with the

platforms like “Nirapod Shorok Chai” to make people and drivers

aware of traffic rules along with driving and road hazards. We

may also use the SMS services collaborating with different

cellphone operators.

7.10 Research and Development (R&D):

We have developed a questionnaire to get a snapshot of the

potential customers and what is their stand on this whole concept

of CNG TracKer’s.

7.11 Training & Development: Page | 30


We would provide a brief training to the call centre executives

on how to deal with the customers. We’d also provide training to

the hired CNG drivers on how to communicate more effectively with

the customers.

VIII. Financial Plan

8.1 Start up expenses and assets: (Tk.)

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Items Amount (tk.) M obiles 150,000GPS device 120,000Call centre accessories 100,000Computer & accessories 200,000Router 50,000Hub 50,000Furniture 500,000Generator 500,000Air conditioner 150,000Registration 10,000Initial Advertisement & Promotion 100000

Total 19,30,000

8.2 Start up capital: (Tk.)

8.3 Initial Balance sheet: (Tk.)

Assets Amount Owner’sequity +

Liabilities

Taka

Mobiles 150000 Owner’scapital

20,00,000

GPS device 120000 Bank loan 5,00000Call center accessories 100000Computer & accessories 200000Router 50000Hub 50000Furniture 500000Generator 500000Air conditioner 150,000Registration 10,000Initial Advertisement and promotion

100000

Cash 570000Total 2500000 25,00,000

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Owner’s capital 2000000Bank loan 500000

Total 2500000


[N.B- We will keep BDT 5, 70,000 as cash to maintain our instant cash need]

8.4 Cost Analysis: (Tk.)

Fixed cost:

Items AmountRent 25000Salary 145000Utilities 5000Benefits to drivers

16000

Total 1,91,000

Variable Cost:

Items Amount (Tk.)Messaging cost to CNG’s 2/msg. or per

tripCommission to GP (GrameenPhone)

5 /msg. or pertrip

Total 7/msg. or pertrip

Calculations:

Total Cost= Fixed Cost + Variable Cost per unit * Quantity=191000 + 7 * Q

8.5 Revenue Analysis: (Tk.)

8.6 Break Even Analysis: (Tk.)

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Amount (Tk.)Price 33.99

Total Revenue 33.99 BDT * Q


BE Quantity:

BE Quantity = Fixed Cost/ (Price per unit-Variable Cost per unit)

= 191000/ (33.99-7) = 7077 Trips

BE Amount:

BE Amount = Break Even Quantity * Price per unit

=7077*33.99 Tk. = 240547 Tk.

Graph:

8.7 Sales Forecast:

We consider that, Since each of the CNG’s can make on an average

10 Trips/day, So, 20 CNG’s can make on an average 200 trips a

day, which means 200 service calls (if none is rejected). We

consider increase two route per month (after the 2nd month) and

thus estimate that; trip per CNG would increase by 10. So, for

all the CNG’s the overall trip on an average would increase by

(20*10*30) =6000 in each month. We also forecasted that, after

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Description M onth 1 M onth 2 M onth 3 M onth 4 M onth 5 M onth 6 M onth 7Qt (Trips) 6000 6100 6300 6500 6800 7000 7200Price 33.99 33.99 33.99 33.99 33.99 33.99 33.99

Total cost 233000 233700 235100 236500 238600 240000 241400Total revenue 203940 207339 214137 220935 231132 237930 244728


some month considering demand we might need to decrease the no.

of trip and thus increase by 100 (for a month). Then afterword,

we will again continue with the desired extensions.

So, considering the above cases, in the 7th month, of our

initiation of operation we would be able to reach the Break Even.

IX. OTHER COURSES OF ACTIONS

9.1 Environmental issue:

The CNGs in our fleet would go regular maintenance and monitoring

to make sure it runs efficiently and doesn’t cause much harm to

the environment.

9.2 Ethical issue:

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Description M onth 1 M onth 2 M onth 3 M onth 4 M onth 5 M onth 6 M onth 7Qt (Trips) 6000 6100 6300 6500 6800 7000 7200Price 33.99 33.99 33.99 33.99 33.99 33.99 33.99

Total cost 233000 233700 235100 236500 238600 240000 241400Total revenue 203940 207339 214137 220935 231132 237930 244728


Our CNG drivers would make sure to return any belongings of the

passenger if s/he drops it in the CNG accidentally.

9.3 Legal issue:

We will comply with all existing policies and rules of

government. We will give tax to the government and also obey the

rules of society.

9.4 Intellectual issue:

We will patent our name as well as our logo to protect from

others.

9.5 E-commerce:

We’d launch a website in due time to aware internet users and

promote our services through our website and social medias like

Facebook.

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X. Conclusions:

This is a very ambitious project which promises to give a

positive return on the seventh month from the day of inception of

the business. It would require a lot of management skill from the

partner’s part to orchestrate the business and implementing the

business plan. If this business holds it would definite have a

positive impact on commuters of Dhaka. Travelling within Dhaka

would be very fast and quick for only a small fee and there is a

guarantee that you won’t be late for work just because you

couldn’t find transportation; even if it’s a rainy day. To make

this model successful hiring the right group of CNG drivers is

crucial for our business because ultimately them that we have to

count on to deliver the service. This project might seem far-

fetched; however if it’s implemented correctly then this could

prove to be a profitable business and plant our root firmly as an

early entrepreneur.

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Final report on CNG Trac Kers (Final)

Documents

Transcript of Final report on CNG Trac Kers (Final)