But still there is a problem. The problem lies with the technology. Nobody can claim that these technologies will never fail. Due to mechanical fault, poor maintenance, overuse, overage, misuse etc these failures occur. Though we are aware of these and may take preventive and reactive measures to avoid those situations but these failures are still day-to-day phenomena. Think about a situation – where your personal vehicle becomes out of order on the highway in a remote place. If so, what is the remedy? There are some arrangements by the Government.
However, that could not earn the faith of the public. Thus, in our case, this aspect is still remaining uncared. The astute investors could have identified the need of assistance in such situation in many countries. The effort of our new service oriented firm Safejourney is to care these aspects. The purpose of this plan is to analyze the strategic and situational aspect of the firm and focus market product, marketing mix and thereby project a detailed marketing plan of the firm. The scope of this plan will be limited to the following: Concept Development Process • Company Description • Strategic Analysis • Situation Analysis • Market Product Focus • Marketing Mix • Financial Analysis • Organization • Implementation • Evaluation and Control While formulating the plan firstly our effort is to highlight the concept development process, followed by the orientation with the company. Then Mission, goals and core competency of the organization will be covered under strategic analysis. Thereafter, analytical part of the plan will include – SWOT, industry, competitor, company and customer analysis.
The market, product and financing objectives of the organization and also target market identification will be the contents of the product market focus. This part will also mention the Unique Selling Proposition [USP] and positioning plan of the organization. Then under the marketing program 4 P’s i. e. marketing mix will be illustrated. The financial analysis and organization’s planned set up will be discussed followed by the implementation plan. Finally, the evaluation and control measures will be pen-pictured. We have carried out a detailed study, which was a combination of primary and secondary data analysis and empirical study.
Our contact method was mainly in the form of personal interviews with the competent official of the concerned authority, and collecting public views associated to this sector. We have also conducted the market survey deliberately, carried out various statistical analyses by testing related hypotheses. Collection of associated data from Bangladesh Road Transport Authority and Bangladesh Police [traffic control] were also a part of the survey. Thereby, we have found it is feasible to serve the victims of the roads. 2. CONCEPT DEVELOPMENT PROCESS 2. 1 The Idea Generation
Bangladesh is a third world developing country. The country’s GDP is not again encouraging. Therefore, the people cannot always effort to have all first hand / brand new vehicles of any sorts. The used vehicles are not always reliable and often found to be out of order. Moreover, poor infrastructure of the country has also strong influence to cause such failure – a fatal accident is not also an exception to it. The arrangements offered by the Government to support such cases are often seem to be inadequate, time consuming, costly and failed to earn confidence.
Thus, there is always a need to support those victims in terms of mechanical, medical, psychological and emergency assistance. This led us to create the idea of a service organization to support in this regard. 2. 2 Concept Development The concept of providing necessary service by Safejourney is to have number of Highway Mobile Patrols [HMP] and Static service points at regular intervals. Maintaining a reliable communication network, our teams will be called by our valued customers and in response, will be capable to reach the spot within 30 minutes. Service charge will be collected depending upon the degree of assistance rendered.
Membership will be offered on the basis of annual subscription. 2. 3 Nature of Service Safejourney will have the capability to offer the following services: Small scale repair work on the spot. Medium scale repair work at the static service points (Towing facilities will be included) Large scale repair work at the zonal workshops (Towing facilities will be included) Available at the static service points. On call. First aid will be provided on requirement. Evacuation support:Will be provided on emergency basis. 2. 4 Investment/Benefits/ Commissions/ Business 2. 4. Investment Concept 1Invest to purchase vehicles, repair machineries, establishment of Head offices, zonal workshops & static service points. Concept 2Invest to establish versatile communication network. Concept 3Invest in acquiring required manpower. Concept 4Invest in promotional and social activities. 2. 4. 2 Benefits Concept 1Earnings from membership charges. Concept 2Earnings from service charges. Concept 3Earnings from charges of emergency support. 5. Time Frame Concept 1To provide services round the clock. Concept 2To reach the spot within 30 minutes after calling.
Concept 3To provide medical and emergency support as and when required. 6. Number of Outlets /Service Points Concept 1To arrange service facilities in the major highways. Concept 2At least two mobile patrols under each static service points. Concept 3Static service points are to be established every after 70/80 km. Concept 4Zonal offices are to be established near the major cities. Concept 5Head office is to be established at Dhaka. 3. Company Description 3. 1History Although it is new for the country like Bangladesh, service organization as Safejourney is not a new venture in the world.
In Germany, there is such an organization known as “Allgemeiner Deutscher Automobile- Club” in short ADAC operating for more than 40 years. Earning the confidence and faith of the public is the first and foremost criteria for most of the businesses success. If one can achieve it, other part of the business becomes much easier. The newly established firm Safejourney is the pioneer in Bangladesh in this field. 2. Name The legal name of the firm is SAFEJOURNEY BANGLADESH PRIVATE LIMITED and the motto of Safejourney is Destination Guaranteed... 3. Purpose
The purposes of Safejourney are described as follows: ? To provide quality repair and recovery services to the vehicles on the prescribed highways. To support the under mentioned services in emergency: a. Providing First aid to the accident Injuries. b. Evacuating the serious cases to the nearest hospital/ clinic. c. In case of criminal act, providing support by informing highway Patrol Police. d. To provide transportation service to anyone on payment only in emergency cases. ? In future we plan to render our communication network facilities to the transport companies. 4. Functional Activities
Safejourney has started her journey to serve the victims of the roads and persons in emergencies. On receiving the call from the customers our control station will intimate the matter and appropriate location to the responsible zonal office and / or static point keeping divisional office informed. The zonal office or static points will than direct the nearest Highway Mobile Patrol (HMP) to the spot. HMP, upon initial investigation will render effort to repair the necessary defects. If the case appears to be relatively difficult, the vehicle will be towed to the respective static point.
Likewise, major cases will be handled by the zonal workshop. In simple cases, on completion of the necessary repair jobs the customer will pay the bill prepared by HMP as per prescribed price chart. The members will get the discount if he/she possesses the Safejourney ID Card. In case of major / difficult cases the customer may pay in the head office or any of the zonal offices. A diagrammatical presentation of functional activities is as in Appendix A 3. 5 Organization It is essential to have a very well structured organisation to achieve the success in any kind of business. Thus, Safejourney has taken all out effort o organize both the administrative and functional aspects in order to ensure a quality service, secured and unbroken flow of information, good administration, better co-operation and co-ordination. Therefore, overall planning, organizing, leading and controlling aspects of Safejourney are vested on the head office. Under head office there are various departments for looking after the administrative perspectives of the firm. Moreover, our service areas are divided in three divisions. The divisions are again subdivided into area/zones to have a better control of the functional perspective of our organisation.
However, a detail of Administrative Organisation of Safejourney is illustrated in Appendix B and Functional Organization of Safejourney is illustrated in Appendix C of this plan. 6. Establishment and Number of Outlets/Service Points We have offered initially three major route of the country. The routes are as follows: • Dhaka – Chittagong Road • Dhaka – Bogra – Rajshahi Road • Dhaka – Jessore – Khulna Road Our head office is located in Dhaka, whereas the Divisional offices are in Chittagong, Bogra and Jessore. Detail of the Zonal Workshops, Static service points and outlets are presented in Appendix D of this plan. . 0 STRATEGIC ANALYSIS 4. 1 Mission Reaching our customers with in 30 minutes after calling at anytime on the highways when someone gets stuck with his/her vehicle and repair it to make him/her feel safe. 4. 2 Objectives 4. 2. 1 Financial Objective • To earn an annual rate of return on investment at 20%. • To Make Profit 20% above sales. • To reduce the amount of investment capital where possible. • To acquire 3500 members by year 5 • To reach at the breakeven point by year 5 • To achieve 80% of the market share by year 2008. 4. 2. 2 Marketing Objective • To repair 30 vehicles per route each day. To provide better quality service than the potential competitors. • To provide superior and timely repair • To achieve strong brand name. • To establish capable and systematic service outlets at each 60-80 km intervals. • To ensure wide geographic coverage than rivals’ and potential competitors. • To ensure higher level of customer satisfaction. • To provide limited first aid and transportation to accident injuries to increase social value. 4. 3 Core Competency and sustainable competitive advantage Core competency means the achievement of significant competitive advantage by a firm over its rivals.
Our core competency will be reaching in time to the customers and providing services of better quality than our competitors. 4. 3. 1 Reaching in time to the customers: We will have number of service centers each after 60-80 km. So, any one calling us over mobile/ T & T phone, we will ensure our presence with in 30 minutes. This will make the customers feel safe and confident about our organization. 4. 3. 2 Providing better quality service: At present our main competitors are the old aged roadside or sub-urban based repair workshops. Our services will be provided in time with the modern equipment and of course we will maintain our quality. . 3. 3 Pioneer advantage: Though there are number of repair workshops but we are the first to provide on call services on the highways with fast speed and responsibilities. At present we don’t have much strong competitors, but even new competitors enter, we will have customer’s preferences as we are the first in this business. We will already have lot of members and hold the lion share of the market. 5. 0 SITUATION ANALYSIS 5. 1 SWOT Analysis 5. 1. 1 Strength: Main strengths of "safe journey” are identified as follows: 5. 1. 2. Weakness: The weaknesses are as follows: business is based on happenings of some eventualities . 1. 3. Opportunity: Opportunity means where the company can operate profitably. The Opportunities of safeJourney are as follows: 5. 1. 4 Threat: The happenings which may create obstruction in achieving our business objectives are as follows: 5. 2 Industry Analysis “SateJourney “is a service oriented organization. There are many others who provide the same services to the customers. There are many workshops located in the rural, suburban or urban areas. The rural or suburban based workshops are old aged, that doesn’t have any efficient system of identifying the problems and repairing those.
There are few big sized workshops in the city areas but they hardly provide on call service. They also don’t have an efficient way of dealing with the customers. As a whole in the industry nobody is holding absolute supremacy. ‘Safe Journey’ will enter the business considering the aspects of winning customers’ mind. The competitors will not affect its operation and business objectives. The local workshops are weak but close competitors. City based service centers are strong but distant competitors, so ‘SafeJourney ‘will enjoy almost monopoly in the rural highways and likely to face pure competition in the urban areas. . 3 Competitor Analysis 5. 3. 1 Brand Competitor: SafeJourney is the first company to provide mobile repair service and serve the customers even in the remote place on the high ways. Thereby at present we don’t find any brand competitor of ours. 5. 3. 2 Industry Competitor: Our service is based on repair services of the automobiles. There are many other small or big workshops providing the same kind of services. So they are our industry competitors. 5. 3. 3 Form Competitor: This service provides the need for safety on the high ways by repair and maintaining vehicles.
There are few other workshops other than automobile workshops that also carryout some sort of repair works like motor cycle or bicycle repair. They are our form competitors. 5. 3. 4 Generic Competitor: Ours generic competitors would be anyone taking away our customers. The roadside restaurants, tower vehicles, public transports are few of our generic competitors. 5. 4 Company Analysis Our company will have numbers of static points (service centers) each after 60-80 km distance on the highways. Those static points will remain under direct control of Head office located at Dhaka.
We will also have offices in other major cities. They will deal with membership, complains, suggestions for operation and future expansion of the business. 5. 5 Customer Analysis 5. 5. 1 On the basis of buying Roles 5. 5. 2 On the basis of customer Buying Behavior Our service falls in the complex buying behavior group as it is a high involvement service. Customers normally don’t come to the workshops unless they need it. Again for yearly membership one has to pay Tk5000. Thereby, it is a service that involves a good amount of money. Customers will think twice to be a member of Safejourney.
Thus, our customers buying will follow complex buying behavior. 6. 0 MERKET PRODUCT FOCUS 6. 1. Financial, Marketing and Service Objective 6. 1. 1 Financial Objective 6. 1. 2. Marketing Objective. 6. 1. 3. Product / Service objective 6. 2 Target Market 6. 2. 1. The Selection of Target Market The Underlying logic and hypothesis dictated us to select the specific target markets: 6. 2. 2. Market Segmentation To attain the objective of our business plan, bases for our market segmentation is Demographic and psychographic factors. Under the demographic, the segment variables are social class and occupation.
In social class the upper class and upper middle class is our focal point. And under occupation we have mainly focused to the business class. Under the psychographic bases we have considered the social values to be our main segment variables. People who are highly security concerned and highly time concerned are the point of concentration here. 6. 2. 3 Specific Target Group Basing on our logic/ hypothesis, our market segmentation has led us to select the following specific target groups as our customers: Private car owners. Business class traveling in personal/ official car.
Taxi cab companies Transport owners/ Agencies. The target groups as per the segmentation can be categorized as under: |Market segment |Customer group | |Market segment 1 |Private car owners | |Market segment 2 |Business class | |Market segment 3 |Transport owners/Agencies, Taxicab companies. 6. 2. 4 Effectiveness of the Targeted Market Segment. Effectiveness of the segmentation can be measured using five useful criteria. These are Measurability, Substitutability, Accessibility, Differentiability and Actionable criteria. Testing of our segmentation based on these criteria is shown as under: Market Segment |Measurable |Substantial |Accessible |Differentiable |Action-able | |MS 1 |Very Good |Large and highly |Easily Accessible |Good |Effective and | | | |profitable | | |feasible plan can | | | | | | |be formulated | |MS 2 |very Good |Large and Profitable |Accessible |Good |Effective and | | | | | |feasible plan can | | | | | | |be formulated | |MS3 |very Good |Very Large and profit |Accessible |Good |Effective and | | | |able | | |Feasible plan can | | | | | | |be formulated | 6. 3 Point of Difference One of the most important factors for launching any new product/ service is the points of differentiation. We will differentiate our service from the competitor in respect of service, personnel and image differentiation. 6. 3. 1 Service Differentiation The key to success of our business will lie in adding value to the services and continuous improvement of quality. SafeJourney will differentiate its service from others in respect of following attributes: Ordering Ease |Any one facing the problem in highway can easily call us | | |simply making a phone call. Need not to take the trouble of | | |searching around miles together for someone leaving the | | |vehicle in uncertainty. | |Delivery |The mobile workshop of SafeJourney will be committed to solve | | |the problem in a speedy manner with adequate care and | | |accuracy. |Special service and Maintenance |Any one calling SafeJourney for a mechanical problem of | | |vehicles will be provided with free wind shield wash to that | | |vehicle and the assurance will be provided that any further | | |problem for same reason will be given free service in that | | |particular journey. | 6. 3. 2 Personnel Differentiation ‘SafeJourney’ will gain a strong competitive advantage by developing a better-trained people. For attaining this we will emphasize on the following aspect: Competence: The engineer/ mechanics of ‘safeJourney’ will possess the required skill and knowledge to deal with any mechanical/ technical problem of any type of vehicle. The mechanics will be grouped in such manner so that they can deal with any problem of the affected vehicle for which they are called for. ? Courtesy: The employees of our service will be trained to behave in a friendly, respectful and considerate manner in response to any problem given by the customer. ? Credibility: The trustworthiness of the service will be developed by providing price rate card from the company along with the specific identity card for the employees. ? Responsiveness: The Company will have a quick response in any call by sending the mobile workshop within half an hour on the spot. Communication: ‘Safejourney’ will keep the system of communicating about any problem/ comments by giving a comment card while solving the vehicle problem. This will be used by the management for further improvement of service. 6. 3. 3 Image Differentiation Our service will give adequate emphasis on building an image of quick and quality service. To do this, we will express our messages in symbols, written and audiovisual media, different events and also by employee behavior. 6. 3. 4 Unique Selling Proposition (USP) This is the factor which will attract the customer to accept our service rather than the competitors. We will concentrate on the following USP of our service. Caring about customer's time. Greater attention on safety measures. First to provide reliable mobile repair/ recovery service in the country. 6. 4 Positioning To attain a distinctive position in the customer’s mind we will give adequate emphasis on our unique selling proposition. We will create an image of the company by promoting the idea "SafeJourney--for people who cares about time and safety". 6. 4. 1 Positioning strategy For attaining the desired positioning in customer's mind we will adopt the double benefit strategy. We will claim two benefit in this regard: The fastest. The safest 7. 0 MARKETING PROGRAM 7. 1 Service Strategy 7. 1. 1 Type of Service This is a utility service for providing mobile mechanical/ technical support to the vehicles facing problems in highways.
This will ensure a quick and easy service which will allow the travelers to reach to their destination safely without wasting the time. 7. 1. 2. Features of service The service will be provided both in membership and non membership basis and have the following features to provide: Repair and Recovery a. The first effort will be given to reach to the spot with mobile workshop by half an hour of receiving any call. b. The main effort will be in repairing the vehicle on spot as quickly as possible. c. Relatively difficult cases will be handled by the static service point d. In case of major difficulties the option will be given to deliver the vehicle to the desired destination after necessary repair works. Emergency Service a.
Providing first aid to the accident injuries. b. Evacuating the serious cases to the nearest hospital/ clinic. c. In case of criminal act, providing support by informing highway Patrol Police. d. To provide transportation service to anyone on payment only in emergency cases. Communication service a. The company will establish an internal communication system for its operation. b. The company will render this facility to be used by the transport companies on the basis of payment. 7. 1. 3 Brand Name The brand name of the service is given ‘SafeJourney. ’ This is done to create a favorable brand image and brand familiarity by adding the safety as a sensitive issue.
All necessary exposure and promotion activities will be done to uphold the different attributes, benefits and values related to the brand. 7. 1. 4 Special / After Service offer To create favorable positive response to the mind of customers the following special offerings will be kept: ? The provision will be kept to provide free windshield wash for the vehicle where applicable. ? Once given service by any mobile workshop the free service guarantee will be given if any problem faced for same reason in that journey. ? For dealing with the emergency situation, the service will be rendered 24 hours. 7. 1. 5 Sources of Spare parts Contacts will be made with the authorized dealer of various motor parts to keep the supply of spare parts available.
The amount of the various spares parts inventory will be decided basing on the requirement. 7. 2 Price Strategy 7. 2. 1 List Price Transparency in transaction is considered as one of the most important issues of our business policy. To maintain the trustworthiness and transparency, list price of all types of service will be kept/ hanged with the mobile service team and other service centre. The list price will be also published in the advertisement in print media. A minimum fixed charge of Tk. 250 will be charged for every vehicle calling for service. Other charges will vary basing on the intensity of the job. A model of list price is shown as under: PRICE LIST SERIAL NO |SERVICE DESCRIPTION |PRICE | | | |(In Taka) | |01 |Call charge |250 | |02 |Membership Subscription |5000 | |03 |Servicing |250 | |04 |Oil change |100 | |05 |Air Lock Clearance |250 | |06 |Fuel line Clearance |250 | |07 |Tappet Clearance |800 |08 |Cylinder Head Leakage Repair |1000 | |09 |Timing |2000 | |10 |Spark Plug Change |600 | |11 |Self Starter |500 | |12 |Fuse Box |100 | |13 |Carburetor Cleaning |200 | |14 |Gear Box Repair |500 | |15 |AC pump Repair |300 | |16 |Break Repair |500 | |17 |Steering Gear Repair |500 | |18 |Electric Circuit |250 | |19 |Lighting |250 | |20 |Spare parts |As per mkt price | 7. 2. 2 Discount To Increase the membership number and attract the customers a 65% discount will be given to the members of safeJourney. 7. 2. 3 System of payment The Payment system will be on the basis of cash payment before delivery. However, the payment may be made at any zonal / area offices also. 7. 2. 4 Different Price strategy. We plan to adopt different price strategies in different situation. ? At Launching Stage.
As this is a new service in this country, our company being first to enter in this business will have a pioneer advantage. And as we will not have any brand competitor at this stage so we will adopt cost plus policy at this stage. The assumption led us to follow this policy is the substitute awareness effect which tells that customers are less price sensitive when they are less aware of substitutes. ? At Brand competitive Stage. In Brand competitive stage it is likely that new entrants will also come in this business. If we face challenges by the new entrants in terms of price strategy, we will face this by adding new values and better quality through more promotional activities.
As the new entrants are likely to face huge amount of initial investment expenditure, it is likely to be difficult for the competitors to snatch our significant market share. Again a substantial amount of revenue in the business will come through the membership subscription which is given yearly. So due to involvement of high switch over cost customers are less likely to switch over to new competitors. ‘The difficult comparison effect’ of price sensitivity also supports our strategy as it speaks -- customers are less price sensitive when they cannot easily compare the quality of substitutes. However in this stage we may have to go for the price cut strategy basing on the market condition. 7. 2. 5.
Pricing Method Basing on the market survey and the result of our hypothesis we have used a combination of both perceived value pricing and going rate pricing method to select our price. 7. 3 Promotion Strategies Promotion is considered as one of the greatest market winning factor to increase the sales of own product/ service. It consists of different promotion mix i. e. advertisement, Sales Promotion, Personal Selling, Direct Selling and Public Relation (PR) . The promotion activities also varies basing on the product/Service life cycle through which a product/ service comes from introductory stage to growth, maturity and at last at declining stage.
So our promotional activity will also vary in response to different life cycle of our service in following ways: 7. 3. 1 Introductory Stage In this stage our main strategy will be to create the customer awareness about the brand name of our service. Since the service involves the complex buying behavior, the main emphasis will be given to the print media. The promotional activities include: Regular advertisement in daily newspaper and magazines. Using Billboard in the entrance and exit of the petrol pump. Using Billboard in highways with repeated intervals. In TV and radio highlighting our USP during the commercial slot. ? Providing attractive and colorful posters, calendars etc to the car sales centre. 7. 3. 2 Growth Stage
At this stage the strategy will be to create brand familiarity to keep the present customers satisfied and to attract the new customers. This will be done as follows: ? Differentiation advertisements in both print media and loud media frequently. ? Create value chain for the existing members by sending small gifts like calendars, cards etc containing the brand symbol Arranging different types of PR programs. 7. 3. 3Maturity Stage At this stage the strategy will be to keep the people conscious about our product by various remainder advertisement and other programs It includes: Remainder advertisement in both print media and loud media. ? To increase brand preferences providing advertisement with celebrities. Arranging various PR Programs.
Sponsoring different games/ sports cultural programs etc. 7. 3. 4 Decline stage Starting from the maturity stage onward, the amount of our market share is likely to decrease. At decline stage it will tend to reduce more. But the human psychology about time and safety will always exist. The market is also likely to expand. Even though, the company may face difficulties due to more number of competitors. To overcome the problem, the following strategy will be adopted: Providing new features to the customers by making differentiation. Giving reminder advertisement both in print and loud media Arranging PR programs using satisfied customers etc. 7. Placement (Distribution strategy) The Placement strategy is very important to ensure that the company’s product/ service are passed through the right channel to achieve the objective of the company. 7. 4. 1 Places to Serve Initially the service will be started only in three important routes. These routes are: Dhaka - Chittagong highways. Dhaka – Jessore - Khulna highways Dhaka – Bogra- Rajshahi highways Subsequently basing on the feedback and market condition the number of routes will be increased. 7. 4. 2 Channel Strategies The channel of our service will be direct. ? Head office -Zonal service centre - Static Point- Mobile service workshop We will also increase the number of zonal offices/ service centre to most of the district towns. ? We will also acquire the local agency to act as the local representatives in zonal offices. ? The detail distribution channel is illustrated in Appendix E. 8. 0 FINANCIAL DATA AND PROJECTIONS | | | | | | | | | | | | | | | | | | | | | |8. Initial Investment | | | | | | | | | | | | | | | | | | | | | | |Fixed Expenditure | | | | | | | | | | | | | | | | | | | | | | |Item | | | Tk in Lacs | | | | | |Construction/Office | | |7 | | | | | |Office Furniture | |7 | | | | | |Vehicle Procurement | |223. 4 | | | | | |Tel/Mobile | | |9. 4 | | | | | |Tools and Equip | |25 | | | | | |Promotion | | |10 | | | | | |Training | | |3 | | | | | | | | | | | | | | |Total | | |284. 54 | | | | | | | | | | | | | | 8. 2 Yearly Expenditure | | | |Tk in Lacs | | |Salary | | |85. 3 |Details Shown in Appendix F | |Tel Bills | | |9. 48 | | |Fuel | | |35 | | |Rent-Office/Outlets | | |81. 4 | | |Promotion | | |12 | | |Electricity/Gas/Water |5. 64 | | |Miscellaneous | | |6. 4 | | | | | | | | |Total | | |235. 69 | | | | | | | | 8. 3 Projected Yearly Return in 5 Years From providing highway Service | | | | |Yearly |In 5 Years | |Per Day 30 Cases X 3 Routes X 500 X 365 |164. 25 |821. 25 | | | | | Tk in Lacs From Membership Charges Year | | |Tk in Lacs | |Year 1 |1000 |5000 |50 | |Year2 |2000 |5000 |100 | |Year 3 |3000 |5000 |150 | |Year 4 |3500 |5000 |175 | |Year 5 |3500 |5000 |175 | | | | | | |Total income in 5 Years 650 | 8. 4 Calculation of Payback Period | | |Taka In Lacs | | | | | | | | | |Year |1 |2 |3 |4 |5 |6 | | | | | | | | | |Opening Bal |-284. 54 |-305. 98 |-277. 42 |-198. 86 |-95. 3 | | |Cash out flow |-235. 69 |-235. 69 |-235. 69 |-235. 69 |-235. 69 |-235. 69 | |Cash in flow |214. 25 |264. 25 |314. 25 |339. 25 |339. 25 |339. 25 | |End Bal |-305. 98 |-277. 42 |-198. 86 |-95. 3 |8. 5 |103. 56 | | | | | | | | | | |Fraction of years=330. 99/339. 25=. 975 Years. | | | | | | | |Total Pay back Period =4+. 975=4. 975 Years. | | 8. 5 Projected Profit |Expected profit in year 5 = Tk 8. 25 Lac | |Expected profit from year 6 onwards = Tk. 103. 56 Lac | 9. 0 IMPLEMENTATION PLAN
Implementation is the key success factor for any business. The business planning may be the best but if implementation plan is wrong the business will fail to achieve its objectives. To achieve our business objectives we plan our business in the following way: 9. 1 Services Strategy Safejourney will provide services to the customers as and when they call. Someone may get services if they come directly to the static points. Our efforts will be to establish strong communication network to reach our customers using existing T & T facilities and mobile networks. We will also have our own communication network to ease our customers to reach us at anytime.
Practice of mobile patrol on the highways to find out and meet any eventualities will also be there. Besides repair, we also plan to provide some additional services in following ways: (1) For ensuring smooth first aid service, our employees will be specially trained on first aid. (2) Delivering the vehicle at desired place after repair will be accomplished with the necessary co-ordination with zonal offices. (3) Evacuation to accident injuries will be provided by maintaining a good will and liaison with the local hospital and clinics. (4) On establishing our own communication facilities it may be rented to the transport agencies. 9. 2 Price Strategy
As it was stated earlier, services will be provided on the basis of payment and we will have separate price strategy for our members and non-member customers. On accomplishment of any service, the senior mechanics will calculate the price basing on the minimum call charge, price of spare parts, membership discount rate and services as per price table and make the bill to the customer. Customer may pay the bill in cash on the spot or any of our offices/outlets. In the later case, the vehicle will be delivered only after the confirmation of the payment of the due bill. To deal with the competitors in the competitive stage, SafeJourney may also change the service charge or membership subscription as the situation demands but the quality will not be compromised in any case. 9. 3 Promotion Strategy:
To implement our business strategy we will go for rapid skimming. For this we will spend an amount of Tk 1,000,000 as we launch the service. In addition to it an amount of Tk 12, 00,000 will be spent on promotional activities per year. In this regard maximum emphasis will be given to print media and using the billboard. We plan to provide advertisement on web sites also. 9. 4 Distribution Safejourney is taking all out efforts to establish a smooth, secure and effective distribution channels. Members will be enrolled either by the zonal offices directly or through local agents and few selected petrol pumps. The selected petrol pumps will be considered as exclusive distribution means. 10. 0 ORGANISATION
The Head office of Safejourney will be established in Dhaka. The whole organisation is headed by Managing Director (MD). The MD will look after the overall planning, organizing, leading and controlling aspects of Safejourney. There are total six departments in head office, which are as follows: • Operations and Planning • Technical Support • Administration and Medical • Management Information System • Accounts and • Human Resource Management Under the department of operation and planning there will be one control station on for 24 hours. The three Divisional managers are responsible to control the three routes under the supervision of Operation department.
Dhaka – Chittagong route looked after by Divisional Manager –1 (Chittagong) Dhaka – Bogra-Rajshahi route looked after by Divisional Manager –2 (Bogra) Dhaka – Jessore-Khulna route looked after by Divisional Manager –3 (Jessore) Under each Division there are three zonal offices and under the zonal offices there are three static points each. Each static point is equipped with at least two Highway Mobile Patrols. 11. 0 EVALUATION AND CONTROL To learn how well the company is running, we must evaluate the present strategy. Accordingly management will be taking decision on what should be done. For that we will evaluate our performance by finding the information of following aspects: 1] Is the competitive approach of the company is correct?  Could we differentiate our services from our rivals?  Could we provide our services at a broad spectrum or to a niche?  Is the geographic coverage of our services correct?  Are the functional activities of the company correct?  Could we make expected return/ cash flow?  What is the company’s image and reputation with the customers and competitors?  Could we make continuous improvement of our performance? We will also carry out evaluation of information continuously. This will help us to take timely decisions. We plan to carry out analysis of information on the following manner: 1] Daily earnings and expenses report.  Total number of customers per day. 12. 0 CONCLUSION Continuous improvement and development of new offerings is an essential part for any business success in the present world. Everyday people in the business world seek for new opportunity and spending millions in this purpose. The overall paper is developed highlighting all the detail that is required to do a successful marketing of a new offerings. The alternatives are highlighted and the provisions are kept open to carry out the necessary adjustments as the market dictates. Proper implementation of the plan can make the service-SafeJourney a successful one.