“Your Safety, Our Responsibility”
Principle of Entrepreneurship (BUS 321)
Final Term Paper
Submitted to
Raisa Tasneem Zaman
Lecturer, BRAC Business School
Submitted by
Name
Farhan Ul Ismail
Ireen Rahman
Asmaul Hossain Sumon
Riffatun Islam Nishat
Rabita Khatun
Ashish Bhuiyan
Tonoy Mitra
Shashwato Pratik
Mafuza Afrose Anny
ID
16304142
16304139
16304112
16304174
16304116
16104068
16104072
16104079
16304111
Submission Date: 22nd November, 2018
TABLE OF CONTENTS
1.
Executive summary ...................................................................................................................... 1
2.
Business Model Canvas ................................................................................................................ 2
3.
Feasibility Analysis ....................................................................................................................... 4
A. PORTER'S FIVE MODEL…………………………………………………………………………………………………..4
B. MULLIN'S SEVEN DOMAIN MODEL…………………………………………………………………………………..5
4.
Competitor &Target Analysis ....................................................................................................... 8
5.
Market Mix ................................................................................................................................. 10
6.
Promotional Activities ................................................................................................................ 12
7.
Financial Analysis & Projection .................................................................................................. 14
8.
Future Development .................................................................................................................. 16
9.
C ONCLUSION …………………………………………………………………………………………………………….. 17
Executive Summary
“MANOBI” microbus service is only for the female university
students. Our motto is to provide safe and hassle fee microbus service. To start this
microbus service we have done some works. Firstly, we have created a business canvas
model, which help us to know how we can connect with our customer. Secondly, we
have done feasibility analysis where we used Porter’s five-model and Mullin’s seven
domain model. Porter’s five-force model helps us to know how attractive the industry
and Mullin’s seven domains model helps us to understand the influence of seven factors,
which is responsible how successful our business can be. Moreover, we have done
competitor and target analysis. From the competitor analysis, we come to know that
“Obon” is our competitor and from target analysis, we come to know that from which
area customer wants our microbus service. To aware customer about our business, we
are doing both online and offline promotional activity. For online promotional activity
we will use Social media which is good platform for online advertisement and we will
provide leaflets to students and set up a booth in front of the University for Offline
Promotion. We have break down our financial analysis into three part and they are
income statement, Break-even point and Return on investment. Form income statement
we can know about the net profit or loss, Break-even point helps us to know the number
of units must sell and Return on invest help us to measure the amount of return on our
investment. We also have some future development ideas for our business. We will
provide our service to other university female students if we get a positive response.
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Business Model Canvas
A business model canvas is a strategic management and template for developing new
and existing business model. Business model is like a blueprint for a business by which
people can described about their business in a nutshell. We also made a business model
canvas for our business.
Key Partners
Key Activities
Value Proposition
Customer
Customer Segment
Relationship
 Unique
 Mobicash
service
 Marketing
 Refill
 Automobile
workshop
 Filling Station
Key Resources
 Micro-bus
Safety
&
Hassle free
Channel
www.manobibd.com
Niche
Market
 People
 Data
Cost Structure
Revenue Streams
 Staff salary
 Online advertisement
 Maintenance expense
 Ticket selling
 Marketing expense
1. Customer Segmentation: We are segmenting our customer by niche market. As
our service is only for female university students, so we are specifying the customer.
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2. Value Proposition: By our service we are providing a safety and hassle free
journey to the female which will solve the problem of those who are using public
transport as well as it also satisfy them.
3. Channel: For reaching to our customer we are using a web page
(www.manobibd.com) to get their opinion about our service. So, for building up a
communication with our customer we are following owned channel instead of partner
channel.
4. Customer Relationships: To establish a relationship with customer we are
following automated service where we are providing “Mobicash” by which customer
can pay the money. Also, we are providing Refill system by which they can replenish
the money.
5. Revenue Streams: We will generate our revenue through selling ticket and
give advertisement of other companies’ product in our web page.
6. Key Resources: As key resources, we have microbus, people and database
for our business.
7. Key Activities: Through our service we are trying to give a safe ride to the
female passenger. Female are facing many problems when they travel in the public
transport so, for this we are coming up with this idea for female. For reaching to the
customer we will promote our service by marketing.
8. Key Partners: For key partners we are making buyer-supplier relationships
with automobile workshop and filling station. By this we can get the raw materials at
cheaper rate.
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9. Cost structure: In our business staff salary, maintenance expense and
marketing expense will be our cost.
Feasibility Analysis
The Five Competitive Forces Model
1. Threat of New Entrants: Ride sharing companies are emerging in
Bangladesh. Various companies are offering different facilities to their customers.
However, female microbus service is completely new solution, which is offering
secure service for female students. The cost of capital needed to enter in this market is
high. So, the threat for new entrants in this sector is low. The risk is high in this
sector. So, one cannot easily enter in to this market. In order to enter they need to
have a huge capital. So, in our perspective threat of new entrants are low.
2. Threat of Substitutes: The problem of moving female students in local
buses are painful and unsecure. Therefore, the idea of female microbus service is a
solution for them. The idea is sustainable and other companies are in the market with
different solution. So the treat of substitute is high. In other words, there are many
companies who have capital can easily enter in to the market as this could be a big
market for them. Many companies are coming up with different ideas to solve
problems of targeted consumers. As like Shuttle, they are offering Microbus service
to students by charging high price. The industry is growing rapidly and considering
profitability of this sector threat of substitutes are high.
3. Rivalry among Existing Firms: Our Company is offering female students to
have a secure and better journey to reach their university. There is a huge number of
bus services that are operating in Dhaka. Though none of them are offering secure and
safe service, but they are offering low price and available service to the consumer. So,
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there is a moderate competition in this sector, as we are offering safe and secure
service at a medium price to only the female students. Though, other companies are
coming up with different ideas to give the females better service, they are offering
high price. So, rivalry among existing firm is moderate.
4. Bargaining Power of Suppliers: Suppliers can suppress the profitability
of the industries to which they sell by raising prices or reducing the quality of the
components they provide. In case of female microbus service, business our suppliers
are people who sell oil, raw materials for micro-buses etc. and bargaining power
suppliers can be measured on the basis of supplier concentration in the industry. In
our case the concentration of suppliers is high which makes the bargaining power of
suppliers lower.
5. Bargaining Power of Buyers: Buyers can suppress the profitability of the
industries from which they purchase by demanding price concessions or increases in
quality and buying power of buyers can be measured on the basis of the buyer group
concentration. In case of our idea, the number of buyers is higher as there are many
female students who want this service. So, the buying power of buyers is lower.
Mullin’s Seven Domains Model
Mullin’s Seven Domain Model helps to understand the influence of 7 major
factors which is responsible for a successful business. According to this model, our new
service oriented business venture “MANOBI” can be divided into 7 domains. Four of
them at the “Micro (Small-scale)” and “Micro (large-scale) faces of the market and
industry, and other three are concerned about the team that works in the company.
The Seven Domains of Attractive Opportunities
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1. Market Attractiveness: The demand of female bus or microbus
service is high in the market because now a day’s female person are working outside or
going to college, universities. But, unfortunately it is very tough to get bus for travelling
to their destination. That’s why, the demand of this market is so high. Moreover, the
number of customers or passengers are more because everyone are following the new
trend to cope up with the world. For this reason, we will provide microbus for female
students with safety and security.
2. Target Segment Benefits and Attractiveness: We have initially
segmented the target market for female students of BRAC University. We are focusing
on a small group because female students need this service to go to their class in time.
We did an online survey by which we came to know about the demand of this service
and our service will be expanded later on the demand of other private university which
will be help to attract more female students into our service.
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3. Industry Attractiveness: For our business, we do not have entry
barrier because there is no other company are providing female microbus or bus service.
That’s why the entry barriers and competition is low at this moment. But, we have the
high barging power with the female passengers because they do not have other option
to go to their destination with proper safety. For this reason, their barging power is low.
4. Sustainable Advantages: We will follow USP (Unique Selling
Point) for creating value for our customer because we will provide a safety and hassle
free transportation to the female students. Besides that, we want to expand our service
to other private university for fulfilling the same motive as well as create value for
female students for all private university.
5. Mission, Aspiration, Propensity for Risk: Our team members are
committed to the female microbus service as well as passionate to achieve the success
because this business will open a new opportunity for us to reach to a proper goal. We
have a strong coordination because we have some female members in our team who are
facing the same problem that others are facing daily. It is an opportunity for our team
to work for open up a platform for girls which will solve a social problem.
6. Ability to Execute on Critical Success Factors: One of our team
member have a vast knowledge about the routes of Dhaka city. He has the information
about the routes which are more safe and time saving. He will share all the information
and experience with the driver so that we can provide more secure and a comfortable
journey.
7. Connectedness Up, Down and Across Value Chain: We will
maintain a strong and good relationship with our customers, investors, suppliers and
competitors. They are the main part of our business. The relationship between
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customers and drivers or us has to be strong, otherwise they will not feel comfort at all.
Besides, we will have to maintain relationship with suppliers who will provide us
different types of raw materials such as microbus, fuel, battery, AC etc. The most
importantly competitors. As our present competitor is “O Bon”, so we will always need
to make a competitive relationship for cope up with the market demand.
Competitor & Target analysis
Competitor analysis:
There are three competitors factor of our business. They are “O Bon”, “Lily”
and “BRTC”. Among these three “O Bon” is most competitive business for our business.
This service is for female and it is providing exceptional features. Also it is available in
many locations. They has more competitive advantages and good financial condition
which helps them to earn their reputation.
So, to grab customers and gain our reputation we have to come up with new
unique ideas because we know nowadays “O Bon” is in very good position
Target analysis:
We are introducing female microbus service “MANOBI” for those students
who might not manage or bear expense of CNG or other vehicles daily. It will be
available from BRAC University to different locations for BRAC University female
students. This service will mostly help those students who are mainly depend on their
family income. We mainly targeted those students who lives in Mirpur, Mohammadpur,
Dhanmondi, Mouchak and Uttara. According to our survey almost 27.6 % students
from Mouchak want to take our service. After conducting a survey 117 female students
share their comments and shows their willingness to use this service. So, if we able to
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arrange this service effectively this market will be quite big.
From our survey we found some data and information and we are showing it
by some chart and graphs.
Survey for pick-up point
Units
40
30
20
10
0
Dhanmondi
Mirpur
Mohammadpur
Mouchak
Uttara
Pick- up point
Pick-up Time for morning
28.80%
71.20%
100%
0%
Percentage
7.30-8.00pm
8.30-9.00pm
Education Qualification
Below S.S.C
S.S.C
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Percentage
Page | 9
100%
Pick up fom University
39%
61%
2-3pm
4.30-5.30pm
Pay ment Mathod
4%
2%
94%
Cash
Card
Mobi cash
Price consumer willing to pay for Normal Service
Price
50
40
30
20
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Percentage
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Marketing Mix
Product:
“MANOBI” offering a safe and hassle free transportation for female university
students. We hope that our high quality service and pleasant customer service will
help us to get repeat customers and it will build our reputation. The five levels of our
products are:
Core benefit: Transportation
Basic product: Micro-bus
Expected product: AC, Clean environment, comfortable seats
Augmented product: Free Wi-Fi
Potential product: Snacks
Price:
Pricing of our service will not be tricky, it’s actually customer preferred price.
Though we are providing high quality service, we might demand for premium price
but we will go for value based pricing strategy. So our pricing is standard and it is
estimated by the customers through online survey. Besides, our charging price is
lower than the competitor’s price.
Promotion:
We will be doing some activities to promote our service. We will focus both online
and offline promotion.
Advertisement; we will make people aware of our service through advertisement. For
this, we are planning to advertise on daily newspaper and BRACU express.
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Social Media: Nowadays social media is the best place to promote and grabbing the
attention of people. We will post in our personal Facebook, Twitter, and Instagram
account and also share it on the different groups, pages of our university and clubs.
Leaflet: We will also provide leaflets to the university students which will give them a
clear idea about our service.
Place:
Our approach of distribution will be direct selling. We will serve directly to our
customers and maintain all the process efficiently. We believe that it will be our
advantage as it will help us to build up a healthy relationship with our customers and
we will better understand their changing needs.
Promotional Activities
Choosing the right platform for marketing helps to make connection with
the customers easily. For the business promotion, we will follow two ways. We will
promote our business through both online and offline.
For Online marketing we will take the help of social media. Firstly, we
will create an event in Facebook. All the details about our project will be given there.
We will request to the audience to share the event and for this we will give an offer that,
the person who share the post most will get their first ten rides free from us. Secondly,
there are many groups for BRAC University students in Facebook such as group of
different clubs, different activities group etc. We will post there about our project so
that people can get to know more about it. In addition, we will also share our
information in different girls group so that we can get connected with more people.
Along with this we will try to make a contract with some public known female bloggers
who will help us in promoting our business. Then, we will post about our service as
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story in Instagram, snapchat etc. Inspiring active engagement from users, these kind of
stories come for a short 24-hour period and after that they disappear for good. The
limited availability encourages people to view the content before it’s gone.
For offline promotion first, we will provide leaflets to the university
students. Then, we will make a contract with the printing press that whenever we will
need something to be printed for our business we will get it done by them. So for the
loyalty towards them, they will be agree to give us some discounts. It will be helpful
for our business to reduce cost. Finally, we will give a booth in the university premier
for signup where we will provide membership cards to the first 50 students for free
based on their signup.
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Financial Analysis and Projection
“Manobi” Female Service
Income Statement
For the end of the year
Total
Sales:
Ticket sell
A dvertisem ent
Less: V ariable Cost
W ages
CN G
O ctain
O thers
Less: Fixed Cost
Battery
M obilchange
Filter
A ir filter
A C filter
Sevicing
Cng oilm aintainance
G PS
G PS bill
A pp develop
Tire
Fitness
D epriciation
A dvertisem ent
Insurance prem ium
Tax
Total cost
Profit
Total
BD T
BD T
Total
2,073,600.00
20,000.00
BD T
2,093,600.00
BD T
BD T
1,403,374.00
690,226.00
BD T 240,000.00
BD T 388,200.00
BD T 9,600.00
BD T 10,000.00
BD T
647,800.00
BD T
755,574.00
BD T 10,000.00
BD T 12,000.00
BD T 3,000.00
BD T 1,800.00
BD T 1,800.00
BD T 12,000.00
BD T 24,000.00
BD T 30,000.00
BD T 100,800.00
BD T 40,000.00
BD T 64,000.00
BD T 42,174.00
BD T 350,000.00
BD T 20,000.00
BD T 24,000.00
BD T 20,000.00
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Break Even Point:
BEP in Units =
=
𝑭𝒊𝒙𝒆𝒅 𝑪𝒐𝒔𝒕
𝑺𝒆𝒍𝒍𝒊𝒏𝒈 𝑷𝒓𝒊𝒄𝒆−𝑽𝒂𝒓𝒊𝒂𝒃𝒍𝒆 𝑪𝒐𝒔𝒕 𝒑𝒆𝒓 𝒖𝒏𝒊𝒕
𝟕𝟓𝟓𝟓𝟕𝟒
𝟖𝟎−𝟏𝟕.𝟏𝟑
= 12018 units
BEP in Taka = BEP in unit × Selling price
= 12018× 80
= BDT 961440
ROI:
ROI=
=
𝑵𝒆𝒕 𝑹𝒆𝒕𝒖𝒓𝒏
𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕
𝟔𝟗𝟎𝟐𝟐𝟔
𝟑𝟔𝟎𝟎𝟎𝟎𝟎
× 𝟏𝟎𝟎
× 𝟏𝟎𝟎
= 19.17%
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Future Development
Every company have some dream or plan to develop their business in
future. So we are not exceptional from this. We have some plans for future too. If we
succeed to start this service successfully we will provide facilities which are given
belowFirst of all, as we know for now this service is for only BRAC university
female students. So, if we get positive response we will give this service to other
universities too. Moreover, in our country working women suffers a lot due to
transportations. So, we will provide this service for them also. In addition, according to
customers’ response we will increase the number of micro buses for more different
routes. Along with these, we will provide free Wi-Fi connection in our micro buses so
that they do not get bored during the traffic jam and also we will provide some snacks
to our customer.
So, these are our future plans to develop our business.
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Conclusion
After all business analysis we come to know that, what will be the condition of our
business in market. Business canvas model is the blue print of the business. From our
business canvas model, people can know that our service is only for female university
student. Our value proposition is safety and hassle fee journey. We will create a web
page to reach our customer. To establish relationship with our customer we are
following automated service. Through selling ticket and advertisement in our webpage,
we will generate revenue. Our key activity is unique service and marketing. Microbus,
people and data is our key resource. Our key partners are automobile workshop and
filing station. In our business staff salary, maintenance expense and marketing expense
will be our cost. From Porters Five Forces model we can know that the threat of new
entrants in our industry is lower as anyone have to invest higher amount and threat of
substitutes is higher because of the rapid growth and profitability. Next, the rivalry
among the competitors will be moderate because of the unleashing new ideas to solve
the problem. Moreover, in this scenario the bargaining power of both supplier and buyer
is lower. From the analysis, we found that our market attractiveness seems to be
promising and our industry attractiveness is higher for the current demand. We will
have a sustainable advantage in long run, as we will serve all the private university. Our
team members are passionate and we have critical success factor, which will lead us to
establish a successful business. From competitor analysis, we knew that “O Bon” is
most competitive for our business. Target analysis helps us to know the customer need.
We have done a survey on our target customer. From the survey, we came to know that
two area of Dhaka city has a good demand for our service and they are Mouchak and
Mirpur. From Marketing Mix people can know that we provide safety and hassle free
service to female university student. Moreover, our service charge a reasonable price to
our customer. To promote our business, we will use both offline and online promotion.
We will directly serve our customer and maintain all the process efficiently. In our
promotional activity we will use both offline and online to promote our business. For
online promotion, we will social platform. For offline promotion, we will provide
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leaflet and set up a booth in front of the university. For financial analysis, we use income
statement, Break-even point and Return on investment. We have create a one-income
statement of our business and we are expecting a net profit of BDT 690,226.00. Breakeven point (units) is 12018 units and BEP (BDT) 961440. Furthermore, we are
expecting return on investment (ROI) is 19.17%. We have some idea for our future
development. If we get a good response than we will provide this service in other
universities.
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