PROJECT ON MARKETING MANAGEMENT

SUBMITTED TO PROF -VAISHALI KADAM

PRESENTED BYVicky Minal Nikhil Ajay Prashant  Rohit  Bharat

IDEA GENERATION
 Baby Face Wash.  Automobile modification.  Customized Choppers.

FEASIBILITY STUDY
 Technical feasibility.  Financial feasibility.  Managerial feasibility.  Market feasibility.

SURVEY ANALYSIS
Do you know choppers?

Yes (85%) No (15%)

Would you prefer Customized Bikes?

Yes (77) No (23)

What features do you expect from following?

Fog Lights (55) Separate Gear Box (10) Smoke Tyres (20) Triple Tyre (5) Any other (10)

Do you prefer state traveling on bikes?

Yes 13 N 87

MAKET SHARE AND DOMINANCE

FACTS
 The total sale of two wheelers in India has touched a figure of 7.86 million units by March, 2009, up 11.42% 7.05 million.  The production of two wheelers in India is expected to reach a staggering 17.85 million units by 2011-12.  The two-wheeler production capacity is to reach 22.31 million units in 2011-12 compared with 10.78 million in 2008-09.

 India is likely to export 1.39 million two-wheelers in 2011-12 compared with 590,000 in 2008-09.  Total investment for new capacity generation in twowheeler segment is likely to be more than $2.2 billion (INR10, 000 crore).  Hero Honda, Bajaj Auto and TVS Motor remain the leading players in terms of sales and popularity of their two wheelers.

MARKET SHARE OF MOTORBIKE PLAYERS IN INDIA

HONDA (46) AJAJ ( ) RE ( ) OTHER ( )

LOCATION
Factory
1) M.I.D.C, DOMBIVALI INDUSTRIAL AREA District: THANE. Pin Code: 421203. (3,000 Sq.ft)

Showrooms
1) 2, Davar House, 197 Dr D. N. Road, Fort, Mumbai 400 001. (700 Sq.ft) Next to Reliance Trendz, Hill Road, Bandra, Mumbai 400 050. (750 Sq.ft)

2)

INFRASTRUCTURE ADVANTAGE
Our factory is located in Dombivali MIDC Industrial estate and it has MSEB connection for 24 hrs electricity at cheaper cost and 24 hrs water facility. Our Showrooms are located at one of the posh areas in Mumbai i.e. Fort and Hill road. So it is located as per our Target Audience that will be High and Higher-Middle class.

PERSONNEL REQUIRED
Des
act Technical engineer Labour (skilled) Helpers Cleaner
*8am 6pm

at

Qua t t
5 15 12 2

Sa a
45,000 15,000 4,500 1,500

ta
2,25,000 2,25,000 54,000 3,000 5,07,000 1,10,000 12,000 90,000 60,000 18,000 2,90,000 7,97,000

Showroom Bike Designer Receptionist Sales executive Supervisor Helper cum cleaner
*11am 10pm

2 2 6 2 4 50

55,000 6,000 15,000 30,000 4,500 ---

Tota

SUPPLIERS PROFILE
 Stainless Steel (for body of choppers)

 Imports from(Pa
Engine

We h Enterprise Co., Ltd. [Taiwan] ).

 Other Materials
Seat cover Lights Tier Petrol tank Others  Sanjeev Motors [Mumbai, India], EXL Industries [Delhi, India]

PRODUCT
 Customized bikes.  Combination of parts
    Bikes designs from (A-J) 5 types of Engines. 5 types of seats. 25 types of Graphics.

Branding.

SWOT ANALYSIS
Strength
Customized bikes. Choppers Personal attention. Increasing trend of active lifestyle.

Weakness
Lengthy procedure. No specific model. Price variance (High).

Opportunities
Franchising. Modifying bikes. Branding models.

Threats
Increasing competition. Fluctuation in economy that affects discretionary spending.

Customer enters the showroom Welcomed by the sales executive Initial conversation with customer Will be shown sample bikes Then LCD display of bikes Interested customer will place order Transmitting order to factory Placing the order for parts ahead Getting delivery of order Assembly and production process Transporting bike to showroom Delivery of bike After sales service

PROMOTION STRATEGIES
Exhibition for bikes bikes.

Display at various shopping malls

SPONSORING NEXT ~ROADIES

7.0

AFTER SALES SERVICE

 1 years OR 1,00,000 km warranty.  First 3 servicing free.  Any time, any where towing service (only in Maharashtra).

LEGAL PROCEDURES
Shops & Establishment Act (Gumasta license) Maharashtra Partnership Act VAT Registration (sale above 5 L) Formalities for MSEB electricity connection Formalities for BMC water connection

SCHEME OF CHOPPERS LEAGUE

Particu ars Land and Building
Factory Showroom

Amount
1,00,00,000 7,00,00,000

Machinery and equipments Other fixed investment

LCD screen with software Interior with Furniture Preliminary expenses (L.C)

10,00,000
4,50,000 50,00,000 1,00,000

Total fixed investment (non recurring cost)

8,65,50,000 (Approx. 8.5 cr)

Particulars
aw Material
Engines Steel Seats Brakes Lights Wheels Miscellaneous (screw, gasket, others)

Amt. (pm)
,00,000 3,50,000 75,000 50,000 30,000 1,25,000 1,00,000

Other Expenditure
Power and water charges Transport Maintenance Salary & Wages Advertisement expenses Others (phone, etc.) 20,000 50,000 10,000 8,00,000 1 ,00,000 0,000

Total recurring expenditure

35,00,000

Working Capital for 3 months ecurring expenditure * 3 Total Investment required Non recurring expenditure (Assets) Working capital for 3 months

Amount 1,05,00,000 Amount 8,50,00,000 1,05,00,000

Total 9,55,00,000

SOURCES OF FINANCE
Source Long term
Paid up capital Borrowed from banks 5,30,00,000 55.53 ,00,00,000 2.02

Amount

Proportion

Short term
Trade dues Advance from customers 15,00,000 1.37 10,00,000 1.08

Total

9,55,00,000

REPAYMENT SCHEDULE
Loan we have taken will be repaid in a period of 4 years. Yearly installment for our loan amount of 40 million @ 15% will be as per the table given below :Year 2010 2011 2012 2013 Total Principal repayment 1,00,00,000 1,00,00,000 1,00,00,000 1,00,00,000 4,00,00,000 Interest 0,00,000 5,00,000 30,00,000 15,00,000 1,50,00,000 Total EMI 1,60,00,000 1,45,00,000 1,30,00,000 1,15,00,000 5,50,00,000

Fixed cost Depreciation on machinery @10% Depreciation on equipment Maintenance Water charges Salary Promotion cost Electricity Installment of loan Sundry expenses

Amount 70,000 30,000 50,000 10,000 8,00,000 1,68,00,000 2,00,000 1,60,00,000 40,000

Total
Variable cost Cost of raw material Transportation cost and Octroi Total

3,40,00,000

11,00,000 3,00,000 14,00,000

EXPECTED SALES
 Per month sale in units  Average price  Total sales  Sale per annum
18 Rs.3,00,000. Rs.54,00,000. Rs.6,48,00,000

BREAK EVEN ANALYSIS

 We will reach the break even after sale of our 154th unit.  At this point our total sale will be 4,62,00,000.  Which will be sold in the ninth month of the first year of our business.