Executive Summary
In recent year rural
road communications mainly connecting roads from Thana to important Hat, Bazar
and villages have been increased significantly. Consequently agriculture,
agriculture related business and other economical activities have been
increased and side-by-side mobilization of people also increased. As an easy
and affordable transport, Two-wheeler becomes a very popular vehicle in rural
and semi urban area in our country.
Objective of the study
The main objective
of the study is included:
(i)
An analysis of the present situation of two-wheeler market
in Bangladesh,
(ii)
An analysis of sales trend of two-wheeler and estimation of
their future demand.
(iii)
An analysis to find the proper marketing and sales tools to
marketing the products.
(iv)
An analysis to measure the potentiality of Bajaj products.
Market size and growth rate of Two- Wheeler:
Two-Wheeler market in Bangladesh
is very optimistic and demand is increasing rapidly. At the moment market size
of Two-Wheeler is about 35,000 units per year. In l2002-03 financial year
growth rate was 44%. Growth rate mainly depends on socio economic environment
and Government policy of our country. Average growth rate of Two- Wheeler
market in last six years was
Existing brand in Bangladesh market:
At present following makes and
models of Two- Wheelers are available in Bangladesh market-
Brand/ Make
|
Country of Origin
|
Bajaj
|
India
|
Honda
|
Japan
|
Hero Honda
|
India
|
Honda Pak
|
Pakistan
|
Xinfu
|
China
|
Jialing
|
China
|
Yamaha
|
India/ Japan
|
Suzuki
|
India
|
Zongshen
|
China
|
Dayang
|
China
|
Qjiang
|
China
|
4. Position
of Uttara Motors Ltd in Two- Wheeler market:
Uttara Motors Ltd., sole distributor of
Bajaj Auto has achieved highest market share in financial year 2001-02 for the
first time, and it was only 19% of total market size. Achieving 19 % Share
Company had to face tuff competition. About number of 12 automobile companies
are involved with Tow- Wheeler marketing and they are offering attractive
package of price and features to their potential customers.
The main competitors of Bajaj are Hero
Honda, Yamaha, Honda Pak, Dayang etc. and their market share is very closed to
Bajaj. Beside these several number of Chinese brands are available in Two-
Wheeler market and are achieved a remarkable market share.
As a highest market share holder all of
we have try to grip the share first position and try to increase it to 25 % of
total market. We can achieve the expected market share by taking special
marketing activities and offering special price, features, benefits to the
potential customers.
Because of important profit earning
source, we have to emphasis on Two- Wheeler marketing with full concentration.
It is little bit difficult to us to achieve the expected target alone. We
believe Bajaj will actively participate with us and give all possible financial
and technical support from their side to successfully complete our mission
1.2. Market size of Two- Wheeler in last six years:
Financial
Year
|
Market
Size (Units)
|
Market
Share of UML
|
1996-97
|
14,316
|
2528
|
1997-98
|
19,784
|
1168
|
1998-99
|
19,224
|
806
|
1999-00
|
22,506
|
2429
|
2000-01
|
22,622
|
2920
|
2001-02
|
32,573
|
5945
|
2002-03
|
43,000
|
7805
|
1.3. Growth Rate of Two- Wheeler Market in last
5 years:
Financial Year
|
Growth
Rate of Market
|
Growth
Rate of UML
|
1997-98
|
38 %
|
-54%
|
1998-99
|
- 3 %
|
-31%
|
1999-00
|
17 %
|
300%
|
2000-01
|
.5 %
|
20%
|
2001-02
|
44 %
|
210%
|
2002-03
|
32%
|
31%
|
Growth rate calculated based on
previous year. Base year is 1996-97.
1.4.
Two-Wheeler sales trend of Uttara Motors Ltd. in last four years:
Financial
Year
|
Unit
|
Amount
in lac
|
1998-99
|
806
|
813
|
1999-00
|
2429
|
1569
|
2000-01
|
2920
|
1990
|
2001-02
|
5945
|
3714
|
2002-03
|
7805
|
4922
|
2003-04
|
10,000
|
1.5. Two-
Wheeler Marketing Company in Bangladesh:
Marketing
Company
|
Make and Model
|
Market Share
|
%
|
Uttara
Motors Ltd.
|
Bajaj
|
7805
|
18.15%
|
Atlas
Bangladesh Ltd.
|
Honda
Pak/ Honda (In/Ja)
|
12442
|
28.89%
|
H.S.
Enterprise Ltd.
|
3733
|
8.7%%
|
|
Rupsha
Trading
|
Zongshen
|
2490
|
|
Karnaphuli
|
Yamaha
|
1605
|
|
Bangladesh
Auto Manu. Co.
|
Jialing/
Qjiang
|
460
|
|
Emma
Motors
|
Jialing/
Xingfu
|
1025
|
|
Rian
Motors
|
TVS/
Suzuki
|
2320
|
|
Runner
|
Dayang/
LML
|
9720
|
|
Singer
Bangladesh Ltd.
|
Singer
|
1602
|
|
Road
Master
|
Challenger/
Kinetic Boss
|
879
|
2.1.
Market share of different brands of Two- Wheeler market in 2002-03
SL
No.
|
Brand
/ Make& Model
|
Units
|
Percentage
|
1.
|
Bajaj
|
7805
|
|
2.
|
Hero Honda
|
7017
|
|
3.
|
Honda Pak
|
2700
|
|
4.
|
Honda (Japan)
|
2725
|
|
5.
|
Xingfu
|
465
|
|
6.
|
Jialing
|
3435
|
|
7.
|
Jincheng
|
250
|
|
8.
|
Jianshe
|
||
9.
|
Singer
|
||
10.
|
Emma
|
||
11.
|
Yamaha
|
||
12.
|
Yamaha (Japan)
|
||
13.
|
LML
|
||
14.
|
Qjiang
|
||
15.
|
S. Suzuki
|
||
16.
|
Suzuki
|
||
17.
|
Zongshen
|
||
18.
|
Quinky
|
||
19.
|
Dayang
|
||
20.
|
Nitol
|
2.1.
Market share of different brands of Two- Wheeler market in 2001-02:
SL
No.
|
Brand
/ Make& Model
|
Units
|
Percentage
|
1.
|
Bajaj
|
6127
|
19
|
2.
|
Hero Honda
|
4987
|
15.3
|
3.
|
Honda Pak
|
2900
|
8.9
|
4.
|
Honda (Japan)
|
1550
|
4.76
|
5.
|
Xingfu
|
405
|
1.23
|
6.
|
Jialing
|
1575
|
4.83
|
7.
|
Jincheng
|
245
|
.75
|
8.
|
Jianshe
|
450
|
1.38
|
9.
|
Singer
|
744
|
2.28
|
10.
|
Emma
|
285
|
.87
|
11.
|
Yamaha
|
3835
|
11.77
|
12.
|
Yamaha (Japan)
|
1200
|
3.68
|
13.
|
LML
|
300
|
.92
|
14.
|
Qjiang
|
510
|
1.56
|
15.
|
S. Suzuki
|
900
|
2.76
|
16.
|
Suzuki
|
150
|
.46
|
17.
|
Zongshen
|
1750
|
5.37
|
18.
|
Quinky
|
280
|
.86
|
19.
|
Dayang
|
4140
|
12.71
|
20.
|
Nitol
|
240
|
.72
|
2.2. Market share of different brands in Two-
Wheeler market in 2000-2001:
SL No.
|
Brand
/ Make& Model
|
Units
|
Percentage
|
1.
|
Baja
|
2920
|
13
|
2.
|
Hero Honda
|
2176
|
9.61
|
3.
|
Honda Pak
|
2000
|
9
|
4.
|
Honda (Japan)
|
1100
|
4.86
|
5.
|
Xingfu
|
1625
|
7.17
|
6.
|
Jialing
|
3049
|
13.46
|
7.
|
Jincheng
|
1000
|
4.41
|
8.
|
Jianshe
|
445
|
1.96
|
9.
|
Emma
|
20
|
.09
|
10.
|
Yamaha
|
3241
|
14.31
|
11.
|
Yamaha (Japan)
|
1000
|
4.41
|
12.
|
LML
|
150
|
.66
|
13.
|
S. Suzuki
|
600
|
2.65
|
14.
|
Suzuki (Japan)
|
430
|
1.90
|
15.
|
Zongshen
|
1200
|
5.3
|
16.
|
Dayang
|
1521
|
6.71
|
17.
|
Others
|
175
|
.77
|
2.3.Market share of different brands in Two-
Wheeler market in 1999-2000:
SL No.
|
Brand/
Make& Model
|
Units
|
Percentage
|
1.
|
Baja
|
2305
|
11
|
2.
|
Zongshen
|
1340
|
6.4
|
3.
|
Jianshe
|
300
|
1.42
|
4.
|
Xingfu
|
899
|
4.28
|
5.
|
Honda Pak
|
3212
|
15.29
|
6.
|
Jialing
|
2260
|
10.75
|
7.
|
Jincheng
|
600
|
2.85
|
8.
|
Yamaha
|
4700
|
22.37
|
9.
|
Hero Honda
|
2084
|
10
|
10.
|
Samurai Suzuki
|
490
|
2.33
|
11.
|
Yamaha (Japan)
|
1150
|
5.47
|
12.
|
LML
|
450
|
2.14
|
13.
|
Dayang
|
1220
|
5.8
|
2.4.
Market share of different brands in Two- Wheeler market in 1998-1999:
SL No.
|
Brand/
Make& Model
|
Units
|
Percentage
|
1.
|
Bajaj
|
806
|
4.77
|
2.
|
Zongshen
|
840
|
4.97
|
3.
|
Jianshe
|
150
|
.89
|
4.
|
Xingfu
|
1320
|
7.81
|
5.
|
Honda Pak
|
3800
|
22.49
|
6.
|
Jialing
|
1124
|
6.65
|
7.
|
Jincheng
|
1300
|
7.69
|
8.
|
Yamaha
|
2700
|
16
|
9.
|
Hero Honda
|
2032
|
12.03
|
10.
|
Samurai Suzuki
|
360
|
2.13
|
11.
|
Yamaha (Japan)
|
900
|
6.57
|
12.
|
Dayang
|
1110
|
5.33
|
13.
|
LML
|
450
|
2.66
|
3.1
Sales
trend of main competitors in Two Wheeler market in Bangladesh:
Brand
|
98-99
|
%
|
99-00
|
%
|
00-01
|
%
|
01-02
|
%
|
02-03
|
%
|
Bajaj
|
806
|
5
|
2305
|
11
|
2920
|
13
|
6127
|
19
|
||
Hero
Honda
|
2032
|
12
|
2084
|
10
|
2176
|
9.6
|
4987
|
15
|
||
Honda
Pak
|
3800
|
22
|
3212
|
15
|
2000
|
9
|
2900
|
9
|
||
Jialing
|
1124
|
6.6
|
2260
|
11
|
3049
|
13
|
1575
|
5
|
||
Yamaha
|
2700
|
16
|
4700
|
22
|
3241
|
14
|
3835
|
12
|
||
Zongshen
|
840
|
5
|
1340
|
6.4
|
1200
|
5.3
|
1750
|
5.4
|
||
Dayang
|
1110
|
6.5
|
1220
|
6
|
1521
|
6.7
|
4140
|
13
|
||
Honda
(Japan)
|
-
|
-
|
-
|
-
|
1100
|
5
|
1550
|
5
|
||
Yamaha
(Japan)
|
900
|
5.3
|
1150
|
5.5
|
1000
|
4.4
|
1200
|
3.7
|
||
S.
Suzuki
|
360
|
2
|
490
|
2.3
|
600
|
2.6
|
900
|
2.8
|
4.1. Present price of different brands &
models of Two- Wheeler:
Marketer
|
Brand
|
Model
|
CC
|
Price
|
Uttara Motors Limited
|
Bajaj
|
Croma
|
112
|
77,500
|
‘’
|
‘’
|
Caliber
|
112
|
73,500
|
‘’
|
‘’
|
Champion
|
100
|
71,500
|
‘’
|
‘’
|
Aspire
|
112
|
69,500
|
‘’
|
‘’
|
Boxer CT
|
100
|
61,500
|
‘’
|
‘’
|
Boxer AT
|
100
|
57,500
|
‘’
|
‘’
|
KB-125
|
125
|
60,000
|
‘’
|
‘’
|
M-80
|
80
|
41,500
|
‘’
|
‘’
|
Legend
|
150
|
69,500
|
‘’
|
‘’
|
Classic SL (ES)
|
150
|
64,500
|
‘’
|
‘’
|
Classic SL
|
150
|
60,500
|
‘’
|
‘’
|
Chetak
|
150
|
54,500
|
‘’
|
‘’
|
Super
|
125
|
42,500
|
Atlas Bangladesh Ltd.
|
Honda
|
Passion
|
100
|
76,500
|
‘’
|
‘’
|
Hero 100ss
|
100
|
70,000
|
‘’
|
‘’
|
Hero Sple.
|
100
|
74,000
|
‘’
|
‘’
|
CG 125
|
125
|
1,32,000
|
‘’
|
‘’
|
Honda XL
|
185
|
1,56,000
|
‘’
|
‘’
|
CD 80P
|
80
|
1,05,000
|
‘’
|
‘’
|
C-50 SWR
|
50
|
80,000
|
H.S. Enterprise
|
Jialing
|
JH 100
|
100
|
64,000
|
‘’
|
‘’
|
JH125L
|
125
|
70,000
|
‘’
|
‘’
|
JH 80
|
80
|
48,000
|
‘’
|
Jincheng
|
AX 100
|
100
|
64,000
|
‘’
|
Xinfu
|
XF125 A2
|
125
|
73,000
|
Marketer
|
Brand
|
Model
|
CC
|
Price
|
Karnaphuli
|
Yamaha
|
RX100
|
100
|
75,000
|
‘’
|
‘’
|
RX S 115
|
115
|
1,37,000
|
‘’
|
‘’
|
YB 100
|
100
|
1,05,000
|
‘’
|
‘’
|
YBX 125
|
125
|
82,000
|
Emma Motors
|
Jialing
|
HS 100
|
100
|
57,500
|
‘’
|
‘’
|
HS 125
|
125
|
70,000
|
‘’
|
‘’
|
HS 80
|
80
|
53,000
|
B/Desh Auto Manu.
|
Qjiang
|
QJ 100 4S
|
100
|
62,000
|
‘’
|
‘’
|
JQ 100 2S
|
100
|
64,000
|
‘’
|
‘’
|
QJ 125 A
|
125
|
70,000
|
‘’
|
‘’
|
QJ 100 U
|
100
|
85,000
|
Rupsha Trading
|
Zongshen
|
ED 80
|
80
|
53,000
|
‘’
|
‘’
|
EG 125
|
125
|
70,000
|
‘’
|
‘’
|
2S 50
|
50
|
43,500
|
Runner
|
Dayang
|
DY 125-7
|
125
|
70,000
|
‘’
|
‘’
|
DY 100-18
|
00
|
65,000
|
‘’
|
‘’
|
AD 80
|
80
|
53.000
|
‘’
|
50
|
43,000
|
||
Rian Motors
|
Suzuki
|
Samurai
|
100
|
76,900
|
5.1
Market potentiality of Bajaj motorcycle in Bangladesh market:
Market
|
Estimated Market Size
(Per
Month)
|
Average Sales of Bajaj
(Per Month)
|
Sales Potentiality
(Per Month)
|
Dhaka
|
500
|
100
|
100
|
Chittagong
|
200
|
16
|
40
|
Rajshahi
|
400
|
83
|
85
|
Khulna
|
250
|
60
|
70
|
Sylhet
|
200
|
12
|
40
|
Bogra
|
250
|
65
|
70
|
Jessore
|
400
|
90
|
90
|
Rangpur
|
200
|
35
|
40
|
Dinajpur
|
225
|
35
|
40
|
Others
|
100
|
15
|
35
|
5. Recommendations:
UML has achieved a
significant market share in last half of the decade. Because of continuous
positive growth in last three years sales target has been fixed 7,424 units for
current financial year.
Though 7,424 units is a reasonable
target for current financial year, we have to follow up our sales performance
very closely, because rural and sub urban customers play vital role in Two-
Wheeler market. As we know, agriculture and agriculture-based job are the main
occupation of the rural and sub urban people employing above 60% of labor force
of Bangladesh. So, Sales of Two- Wheeler might be declined in current financial
year due to recent flood if we don’t take any preventive measures.
5.1. Develop
confidence and innovative thinking:
Regardless of economic circumstances in
Bangladesh we have to meet tomorrow’s challenges by maintaining confidence in
our abilities and by developing the power of positive thinking.
5.2. Develop workforces:
We have to develop our sales work force by providing more
opportunities for promotion, special assignment and in house training. The
effectiveness of sales-force management is an important determinate of a
company’s success because the sales force is directly responsible for
generating an organization’s sales revenue.
5.3. Product Knowledge:
It is needless to mention, product knowledge is the main
attribute to be a good sales executive. Without proper knowledge a sales
executive doesn’t convince the customers to buy a product. In few cases our
sales executives don’t have adequate knowledge to satisfy the customers through
providing proper information regarding the products. To meet the tomorrow’s challenges
we must have to develop knowledge of our sales team.
5.4. Promotional activities: We have to take
sales promotion activities, which employed to achieve company’s objectives. We
may use sales promotion to achieve the following objectives
To induce new
customers.
To introduce a new model of products.
To bring more customers in to retail
stores/ showrooms.
To stabilize a
fluctuating sales pattern.
To increase dealers
inventories.
To offset competitor’s marketing
efforts.
Sales promotion program can be taken in
two ways:
Consumer
sales promotion: This method encourage consumer to buy a
specific product.
Trade sales promotion: It is stimulate dealers to handle a company’s
products and to market these product aggressively.
5.5. Develop strength of weak branches:
Sylhet and
Chittagong have achieved very poor market share, which are 12 and 16 units per
month respectively. Market size is 200 units per month in above-mentioned two
cities. That’s why we have to emphasis to enhance the market share. We hope,
market share can be developed up to 40 units per month in mentioned cities by
giving extra efforts.
5.6. After sale service:
After sale service plays an important role to develop
brand loyalty. For long-term business we must develop brand loyalty. Customer
satisfaction is the prime factor to build brand loyalty. That’s why we have to
develop a several number of service center with modern equipment and sufficient
parts all over the country, mainly Rajshahi, Bogra, Jessore including important
cities/ towns to provide satisfactory after sale service to our valuable
customers.
5.7. Appoint the new dealers:
We have to increase the number of
dealers for two wheelers. In the mean time circular for “Two-Wheeler dealer
appointment” has been published in “The Daily Ittefaq”. We expect, we can be
completed the dealer appointment procedure within very short time. We
positively hopeful, new dealers will play important role to maximize the
company’s turnover by enhancing the sales volume.
Introduction
In today’s world education is not
just limited to books and classrooms. Education now a day is understanding the
real world and applying knowledge and education for the betterment of the
society. Internship is such a course that helps to test the knowledge and
understanding of the courses and to use them in a practical field. Internship
gives this opportunity to be engaged in an organization where it is possible to
have an experience of the real business world and to see different practical
aspects of education.
IIUC is committed to produce
leaders for the society who will not only benefit the society as a whole but
also make path of a better future for the next generation. Internship of IIUC
is a step towards fulfilling this commitment by giving the students an
opportunity to get ready for the real world before they enter into it.
There had been some objectives set
forward in doing this report so that it can be determined what tasks to perform
in the Uttara Group of Companies. These objectives were uninfluenced by thought
or feeling. These objectives are described in the following:
To understand the general business
procedure of Uttara Group of Companies.
To understand the level of motivation
among the employees of the Uttara Group of Companies.
To learn the dedication towards work, time
management, responsibility, and other managerial techniques that are needed to
be a successful executive in the business world.
To understand the functions those
are carried out by the Uttara Group of Companies and to understand the
procedure in which these functions are carried out.
To suggest the management with some recommendations so that the
management can identify some of the faulty areas in the organization and
initiate necessary steps to bring changes in those areas.
To produce a report that will give
the advisor an understanding about the work, responsibilities, and performances
of the intern in different aspects of the organization during the internship at
Uttara Group of Companies.
To produce a report that will give
a guideline to the future researchers or customers of the Uttara Group of
Companies on the different aspects that are covered in this report.
1.2 Scopes of the Report
Scope of the report reveals the
opportunities that were found in doing internship at Uttara Group of Companies
Corporate Branch. It discusses different possibilities, options, or
alternatives that were there while doing internship at Uttara Group of
Companies. Those scopes of the report can be stated as follows:
Permission: The first
light of opportunity while doing this report came when the university for doing
internship gave the permission and all the assistance that might be required
for the placement of the internship.
Time: There were two
months time allotted for doing internship. This two months time was enough to
fulfill the objectives that were set forward for doing the internship.
Placement: The
placement of the internship was possible in the Uttara Group of Companies,
Corporate Branch that gave the scope to gather the necessary experience,
information and other things for doing the internship.
Advisor: In the
university an advisor was selected to help assist with the necessary planning,
controlling and monitoring of the internship program with his experience,
knowledge and the integrity in this sector.
Performance: In the
Uttara Group of Companies, it was possible to perform duties in the general
business and the advance section and it gave the opportunity to have some first
hand experience in the functions of the Company.
Colleagues: From time
to time, it was possible to talk to the officers and know about there first
hand experience on different aspects of the Company There was the opportunity
to do a survey and gather information about the motivational level of the
employees.
Documents: There were
different documents and reports on the every sector, which had helped to have
more in-depth understanding on different aspects of the Companies.
1.3
Limitations of the Report
There were a few limitations faced
while reaching the objectives of this report. Some of these limitations are as
follows:
Time: It took time
for the arrangement of the internship in the Uttara Group of Companies
Corporate Branch and as a result, few days were delayed in joining the
internship in this branch. Since the joining was late, it there was lack of
time in gathering experience, collecting information, analysis of information
and to do other necessary tasks of completing the report.
Topics: the topics
that are covered in this report are vast and varied. It is not possible to
cover every aspects of the topic due to the dynamism and diversity of the
subject.
Secondary Information:
There was lack of proper secondary information on the Uttara Group of
Companies. Few supports of books, journals, and other related documents have
been found on the topics that have been covered in this report.
Confidentiality: Not
all the officers of the Uttara Group of Companies were open-minded. They did
not want to disclose many information due to confidentiality.
Talking to Officers:
It was difficult to manage time from the officers for interview, information
gathering etc. Most of the time, the officers were busy with their day-to-day
work.
Conception of Respondents: A
questionnaire was prepared for the knowing the motivational level of the
employees of the Uttara Group of Companies Corporate Branch. Some of the
respondents of the questionnaire did not have clear conception on the topics
they were responding.
Experience: There was
lack of experience in collecting information, doing survey and taking interview
of the employees. However, as time passed by many of these limitations faded.
In order to fulfill the objectives
of the report, make maximum utilization of the scopes and to avoid the
limitations as much as possible certain methodology was followed for this
report. The steps of information collection is described in the following:
For collecting data on the general
business system of Uttara Group of Companies, there were two main sources of
collecting information. These are:
Primary Sources: is the
first hand information that was collected from the Uttara Group of Companies,
Corporate Branch. For the primary sources of data collection observations, open
and group discussions, and interviews were used.
Secondary Sources: beside
the primary source, secondary source of information was also used for data
collection. The methods of secondary sources were different handouts provided
by the Uttara Group of Companies.
2.0 Company Profile
2.1 Introduction:
Uttara Group of
Companies was established in March 1972. The Group is
one of the leading industrial, trading and agency houses and also represents
country’s largest automobile sector. Uttara Group of Companies (UGC) a private limited company offers
wide – range of multi-disciplinary trading and marketing services is aimed at
and fully geared to achieve a sustainable break-through in the business world.
The trading sector mainly holds the distributorship of Japanese and Indian
origin automobile manufacturers and various types of basic vehicles, which
contribute and fulfill the demand at a large, extend of country’s transport and
communication sector. The industrial activities fairly includes assembling of
Trucks, Buses, Auto-rickshaw, Motor Cycles and Manufacturing of Luxury Coaches
and exports of Apparels, Knit Wear, Sewing thread.
Uttara Group is deeply committed to fulfill customers’
demand and cares about consumers’ desire & taste. Placing emphasis on this
important aspect UGC has initiated a new edge of business activities bridging a
two–way traffic between the manufacturers and the ultimate consumer in the
present competitive world market. To protect valued customers’ interest,
saving, safety, security, comfort and satisfaction the Group has also
introduced insurance and investment financing scheme.
To fulfill missions’ objectives Uttara Group represents the following
companies, which are currently involved in exporting, importing, general
trading, manufacturers representation, distribution, sole agency, insurance and
financing.
2.2 Nature of Business:
Govt. approved automobiles
marketing company, Sole Distributor of Isuzu, Suzuki Vehicles from Japan and
Bajaj, Swaraj Mazda & Maruti Vehicle from India. Parts & Accessories,
Sawafujii & Suzuki generator from Japan, Scott & English industrial
generator from Singapore & G.S. battery from Indonesia.
2.3 Aim of Uttara Group of Companies:
The sky is not the limit for them
but their expectations are within limit. Their imagination soars beyond
conventional barriers. They share their destiny with their beloved motherland.
They want to serve her the better in the greater quest for national economic
emancipation.
2.4 Uttara Group of Companies and their way:
To a seasoned trekker, the path is
never too arduous. They believe in progress, in destiny and service through
entrepreneurship. They are merchants and missionaries, doers and dreamers,
entrepreneur and experts. They are futuristic with emphasis on creative and
dynamic activity.
2.5. Growth and development of Uttara group of
companies:
Uttara Group of companies is one of
the large groups of company in Bangladesh. They work for the objective, policy
and some rules, so that they achieve a position in marketing their products in
Bangladesh.
2.6 Corporate Office
39 Dilkusha Commercial Area
Dhaka-1000
Bangladesh.
Tel: 880-2-9555280, 9564163,
Fax: 880-02-9565172, E-mail: uttaragp@citechco.net
2.7 Corporate Management
Mr. Matiur Rahman - Chairman
& M.D.
Mr. Mujibur Rahman - Deputy
Managing Director
Mr. Durand Mehdadur Rahman - Deputy
Managing Director
Mr. Rafiqur Rahman - Director
Mr. K. I. Hossain - Executive Director
Mr. Anup Kumar Barua - Director
(Apparels)
Mr. Shahidur Rahman - Director
(Knitting & Dyeing)
Mr. S. A. Humayun Ahmed - Director
(Technical)
Mr. Mir Mohammed Hossain - Director Marketing
2.8 Production Lines:
Assembling &
Manufacturing:
3-Wheeler
Bajaj Auto-rickshaw.
2-Wheeler
Bajaj Motor Cycle
Isuzu
Commercial Vehicle
Swaraj
Mazda Commercial Vehicles
Sole Distributor:
Suzuki
Vehicles
Maruti
Vehicles
Bridgestone
Tyre
Isuzu
Vehicles
Swaraj
Mazda Vehicles
Re-treading
Tyre.
Sawafuji,
Suzuki & Scott English Generator
GS Battery Indonesia
Manufacturer:
Knit
Fabrics
Knit
Garments, Woven Garments
Sewing
Thread
Pharmaceuticals
2.9 Overseas
Principals:
Isuzu
Motors Ltd., Japan : Assembler /
Distributor
Suzuki
Motors Ltd., Japan : Distributor
Bridgestone
Corporation : Distributor
Mitsui
& Co., Japan : LocalAgent
(Trading)
Itochu
Corporation Ltd., Japan : Local Agent
(Trading)
Sawafuji
Generator Ltd. Japan : Distributor
Suzuki
Generator Ltd. Japan : Distributor
Bajaj
Auto Ltd., India : Assembler/
Distributor
Swaraj
Mazda Ltd., India : Assembler
/ Distributor
Maruti
Udyog Ltd., India : Distributor
Pak
Suzuki Motor Co. Ltd : Distributor
2.10 Concern
of the Group
Eastern
Motors Ltd.
NIB
House, 32 Agrabad Chittagong.
Chittagong
Legal Form : Private
Limited Company
Establishment Year :
1952
Nature
of Business:
Sole
Distributor of “Bridgestone” brand
tyres and tubes from Japan.
Uttara Motors Ltd.
39, Dilkusha C/A
Dhaka-1000
Bangladesh
Legal Form :
Private Limited Company
Establishment Year : 1973
Nature
of Business:
Govt.
approved automobiles marketing company, Sole Distributor of Isuzu, Suzuki
vehicles from Japan and Bajaj, Swaraj Mazda & Maruti vehicles from India.
Parts & Accessories, Sawafuji & Suzuki Generator from Japan, Scott
& English industrial Generator from Singapore & G.S. Automotive battery
from Indonesia.
Menoka Motors Ltd.
39-Dilkusha C/A
Dhaka-1000
Bangladesh
Legal Form : Private Limited Company
Establishment Year : 1979
Nature
of Business:
Assembler
of Bajaj 3-wheeler and Bajaj Motor Cycle
from India.
Uttara Tyre Retreading
Co. Limited
39-Dilkusha C/A,
Dhaka
Bangladesh.
Legal
Form : Private
Limited Company
Establishment Year :
1989
Nature
of Business:
American “BANDAG” brand Tyre cold process
Retreading plant in Bangladesh under exclusive franchise of USA.
Uttara Apparels Ltd.
39-Dilkusha C/A
Dhaka-1000
Bangladesh.
Legal
Form : Private
Limited Company
Establishment Year :
1991
Nature
of Business:
100%
export oriented apparels factory.
Uttara Knitting &
Dyeing Ltd.
39-Dilkusha C/A
Dhaka-1000
Bangladesh.
Legal
Form : Public
Limited Company
Establishment Year :
1994
Nature
of Business:
Manufacturer
of 100% export oriented Quality Knit Fabrics with Dyeing and Finishing
facilities.
07.
Uttara Hongkong JVC Ltd.
23, Paribagh (2nd Floor)
Sonargaon Road
Dhaka-1000
Bangladesh.
Legal
Form : Private
Limited Company JV
Establishment Year :
1994
Nature
of Business:
Manufacturer
of sewing thread for export to garments industries.
08.
Uttara Finance &
Investments Ltd.
10 - Dilkusha C/A, Jiban
Bima Tower,
Dhaka-1000
Bangladesh.
Legal
Form : Public Limited Company
Establishment Year
: 1995
Nature
of Business:
Lease
Finance, Investment & Merchant banking.
09.
Uttara Services Ltd.
124-North Begun Bari
Tejgaon Industrial Area
Dhaka
Bangladesh.
Legal
Form : Private
Limited Company.
Establishment Year :
1996
Nature
of Business:
Automotive
Vehicle Repairing & Servicing
10.
Uttara Exchange & Securities Ltd.
Pedrollo Plaza
5-D Jubilee Road
Chittagong
Bangladesh
Legal
Form : Private
Limited Company.
Establishment Year :
1996
Nature
of Business:
Member of
Chittagong Stock Exchange and deal in Public Limited company shares.
11.
Hallmark Pharmaceuticals
Ltd.
124-North Begun Bari
Tejgaon Industrial Area
Dhaka
Bangladesh
Legal
Form : Private
Limited Company
Establishment Year :
1997
Nature
of Business:
Manufacturer
of Medicine.
12.
Uttara Properties Ltd.
39-Dilkusha C/A
Dhaka-1000
Bangladesh.
Legal
Form : Private
Limited Company.
Establishment Year :
1997
Nature of Business:
Real
estate business
13.
Uttara Knitwears Ltd.
39, Dilkusha C/A
Dhaka-1000
Bangladesh.
Legal
Form : Private
Limited Company
Establishment Year :
2000
Nature of Business:
Manufacturer
of 100% export oriented Knit Garments.
14.
Uttara Automobile Manufacturers Ltd.
39-Dilkusha C/A
Dhaka-1000
Bangladesh
Legal
Form : Private
Limited Company.
Establishment Year :
2002
Nature of Business:
Manufacturer
of Isuzu Pickup Cabin and Swaraj Mazda Truck Cabin.
15.
Uttara
Motors Corporation Ltd.
Plot No, A-6, A-7
BSCIC, Industrial Area, Bogra
Bangladesh
Legal
Form : Private
Limited Company.
Establishment Year :
2005
Nature of Business:
Assembler
of Bajaj Motor Cycle from India.
2.11 Human
Resources:
Company Name Male Female Total
Uttara
Motors Limited 237 9 246
Uttara
Automobiles Ltd. 66 1 67
Uttara
Tyre Retreading Co. Ltd. 47 - 47
Uttara
Finance & Investment Ltd. 13 2 15
Uttara
Hongkong JVC Ltd. 23 4 27
Uttara
Exchange & Securities Ltd. 15 - 15
Uttara
Knitting & Dyeing Ltd. 390 1 391
Uttara
Apparels Ltd. 310 540 850
Uttara
Services Ltd. 55 3 58
Uttara
Properties Ltd. 9 1 10
Hallmark
Pharmaceuticals Ltd. 124 3 127
Eastern
Motors Ltd. 40 - 40
Menoka
Motors Limited 246 - 246
Uttara Knitwears Limited 80 300 380
Total: 1,655 863 2,518
2.12 Branches:
Chittagong:
880-031- 724402, 724957,
715342
Sylhet:
880-0821- 717782,
761173,
Mobile: 017- 881038
Rajshahi:
880-0721- 773741, 773682,
Mobile: 017- 881036
Bogra:
880-051- 6360, 72547,
Mobile: 017- 881037
Khulna:
880-041- 725952,
Jessore:
880-0421- 64087, 72710,
Cox’s Bazar:
880-0341- 63555
Dinajpur:
880-0531- 64687
Pabna:
880-0731- 64690
Rangpur:
880-0521- 62922
Barisal:
880-0431- 55349
2.13 Financial
Structure
(In Million Taka)
Year
|
1999-2000
|
2000-2001
|
2001-2002
|
2002-2003
|
Capital
|
||||
Paid-up
|
206.98
|
196.98
|
212.98
|
212.98
|
Annual
Turnover
|
2123.49
|
3069.98
|
3487.54
|
6121.26
|
Annual Profit
|
194.72
|
392.65
|
451.55
|
544.84
|
Net Asset
|
1417.33
|
1490.20
|
1568.44
|
1646.86
|
2.14 Commercial and Passenger Vehicles
Sales Profile:
Vehicle
TYPE
|
PRODUCTS
|
YEAR
(UNITS)
|
|||
2000-01
|
2001-02
|
2002-03
|
2003-2004
|
||
Passenger Cars
|
SUZUKI
BALENO 1600 CC
|
1
|
5
|
||
SUZUKI
LIANA
|
1
|
37
|
45
|
||
MARUTI
800 CC CAR
|
63
|
38
|
59
|
79
|
|
MARUTI
GYPSY
|
6
|
5
|
|||
MARUTI
SUZ. ALTO 1000 CC
|
12
|
4
|
2
|
2
|
|
MARUTI
ESTEEM 1300 CC
|
14
|
6
|
8
|
10
|
|
MARUTI
SUZUKI WAGON 'R'
|
20
|
67
|
|||
MARUTI
SUZUKI ZEN 1000 CC
|
17
|
36
|
|||
MARUTI
VARSA
|
10
|
20
|
|||
MARUTI
ALTO SPIN
|
15
|
18
|
|||
SUB
TOTAL
|
89
|
50
|
179
|
282
|
|
Four Wheel
Drives
|
SUZUKI
G/VITARA 3 DOOR
|
2
|
3
|
8
|
|
SUZUKI
G/VITARA 5 DOOR
|
2
|
2
|
2
|
6
|
|
SUZUKI
IGNIS
|
5
|
13
|
3
|
2
|
|
ISUZU
TROOPER
|
4
|
1
|
1
|
||
SUB
TOTAL
|
13
|
18
|
14
|
9
|
|
Pickups
|
SUZUKI
RAVI PICKUP
|
10
|
8
|
26
|
30
|
SUZUKI
RAVI CARRY CAB
|
74
|
62
|
58
|
21
|
|
SUZUKI
RAVI COVER VAN
|
4
|
28
|
11
|
4
|
|
ISUZU
PICKUP
|
54
|
52
|
16
|
7
|
|
ISUZU
PANTHER CARRY CAB
|
2
|
||||
ISUZU
HUMAN HAULER
|
16
|
3
|
|||
SUB
TOTAL
|
142
|
152
|
127
|
65
|
|
Microbus
|
MARUTI
OMNI (MICROBUS)
|
14
|
9
|
29
|
53
|
MARUTI
OMNI (AMBULANCE)
|
1
|
2
|
1
|
||
SUB
TOTAL
|
14
|
10
|
31
|
54
|
|
Minibus
|
ISUZU
NPR MINI BUS
|
35
|
109
|
58
|
72
|
ISUZU
NKR MINI BUS
|
49
|
181
|
165
|
102
|
|
SWARAJ
MAZDA MINI BUS
|
26
|
44
|
62
|
16
|
|
SUB
TOTAL
|
110
|
334
|
285
|
190
|
|
Bus
|
ISUZU
MT BUS
|
69
|
65
|
42
|
37
|
ISUZU
LT 133 P BUS
|
2
|
6
|
|||
SUB
TOTAL
|
69
|
65
|
44
|
43
|
|
MiniTruck
|
SWARAJ
MAZDA M/T
|
178
|
234
|
161
|
205
|
SUB
TOTAL
|
178
|
234
|
161
|
205
|
|
Trucks
|
ISUZU
NKR TRUCK
|
12
|
37
|
30
|
35
|
ISUZU
FSR TRUCK
|
5
|
26
|
3
|
8
|
|
ISUZU
NKR DELIVERY VAN
|
10
|
6
|
1
|
||
SUB
TOTAL
|
27
|
69
|
33
|
44
|
3.0 Automobile industry sector in Bangladesh
While assessing the demand and supply of auto parts and
components in Bangladesh, it is essential to analyze the users, their usage
habits and requirements and other related aspects of auto parts and components. The automotive sector
that uses various parts and components in Bangladesh comprises of both imported and locally assembled
vehicles. In estimating the overall demand and supply of auto parts and components, it is important to critically look
into the existing scenario of automobile industry in Bangladesh since these two
things are inter-related and positively correlated.
3.1 Existing
scenario of automobile industry in Bangladesh
Bangladesh does not have automobile industry worth the
name except the single government owned agency
i.e. Progati Industries Limited involved in assembly of CKD/SKD automobiles.
Over the last two decades, particularly since 1985, the
use of various types of vehicles has shown a definite
increased trend. Reasons are many, namely, increased income of particular
segment of people, availability of financial support, improved roads and high
ways, increased level of economic activities, increased
mobility of people from one place to another in search of jobs, increased
volume of trade, commerce and
export, etc.
It may be mentioned here that only the export oriented
ready made garment and textile industries required
a large number of various types of vehicles stating from heavy duty carrier,
pickup van, truck, etc. to motor cars. This
single largest sector needs various types of vehicles for various purposes and account
for about 65% of the country's commercial transport requirements.
Increase in the mobility of individual people has also
resulted in a tremendous increase in the use of various
light motor vehicles. There are few assembling houses that assemble small
quantity of vehicles compared to the total demand of the country.
Most
typical character of Bangladesh automobile sector is that there is a wide
variety of brands and the countries of
origin mainly include countries like Japan, India, South Korea, China, Germany,
France, Malaysia, UK and USA.
Following brands of vehicles are now available in the local market that require
different types of parts and components on regular basis:
Table 1: Different
brands of vehicles in Bangladesh
Products category
|
Brand names
|
Heavy Bus
|
Hino, Mitsubishi, Isuzu, Volvo,
Tata, Ashok Leyland, etc.
|
Mini bus
|
Hino, Mitsubishi, Isuzu, Toyota,
Sawraz Mazda, Tata, Richer, etc.
|
Microbus
|
Nissan, Mitsubishi, Toyota, etc.
|
Heavy truck
|
Hino, Tata, Bed Ford, Isuzu, Ashok
Leyland
|
Mini Truck
|
Hino, Tata, Mitsubishi, Isuzu,
Toyota, Richer, Sawraz Mazda,
etc.
|
Motor Car
|
Toyota, Mercedes Benz, Nissan,
Mitsubishi, Ford, Suzuki, Dewoo, Proton Saga, Proton Vira, Hyundai, BMW,
Maruti etc.
|
Four wheels
|
Toyota, Tata, Mitsubishi, Nissan,
etc.
|
Auto tempo
|
Bajaj, Krishan
|
Scooter
|
Bajaj, Krishan
|
Motor-cycle
|
Honda, Xingfu, Jialing, Jangshen,
Yamaha, Suzuki, Hero, TVS Victor, Bajaj, Vespa, etc.
|
Light & heavy commercial
vehicles
|
Nissan, Dewoo, Huyandi, Volvo, Ashok
Leyland, Tata, Hino, Mitsubishi, etc.
|
Farm and agricultural vehicles
|
Hyundi, Dewoo, Dongfang, Dongchang,
etc.
|
Basically, parts and components are
required for the above types of vehicles from countries of origin or from other
reliable sources. Use of parts and components has a positive co-relation with
number of vehicles in use in the country. During the last five years, the
following vehicles were imported in Bangladesh
3.2 Factors influencing increase in demand of
automobile
Factors
influencing increase in demand of vehicles are as below:
Government annual
development plan has given
priority on transport and communication
development;
development;
Government
has introduced effective transport policy in its five-year plan;
Availability of financial support from formal and
informal sources. Formal sources are banks,
leasing companies, purchases companies, renal companies etc;
Encouragement
of the private sector to make investments in automobile industry;
Promulgation of laws to make the importation of vehicles
at cheaper price (duty and taxes reduced to import new vehicles);
Improved
roads and highways and increased number of bridge and culverts;
Improved
life style in the urban areas;
Alternative
and cheaper means of fuel, like natural gas;
Adaptation
of improved technology in agricultural activities/cultivation activities.
There has been an increasing trend in the use of all
sorts of automobiles/vehicles in Bangladesh . However, the increased demand of
individual types of automobile varies from case to case. For example, the use of motor cars for personnel and official
movement has increased at a higher rate than other types of vehicle. Also, the
use of urban commercial vehicles has also increased at a higher rate to meet increased requirements. These trends are
expected to continue in future.
3.3 Comparative scenario of
different types of automobiles in Bangladesh
A
comparative scenario of different vehicles and their usage trend may be
explained as below:
(a) Motorcycle
There is an increasing trend in the use of motorcycle in
Bangladesh by a new group of users. Traditionally,
students, individual businessmen, officials of marketing companies and
pharmaceutical industries use motorcycles.
Over the last one and a half decades, the field level officials of different non- government organizations have been using a
large number of motorcycles. Also, there are some occasional uses of motorcycle like election
campaign and other national and social program. In Bangladesh, both locally assembled motorcycle and
imported motorcycle are available for intending users as detailed below:
(i) Locally assembled motorcycle: Mainly, there are about
20 locally assembled brands. For example, ATLAS, EMMA, NITOL and
SINGER. List of the local motorcycle assembling houses is given in the annex.
(ii) Imported motorcycle: There are at least 7-8 different
regular brands of motorcycle and these are: Honda CD 80, Yamaha, Suzuki from Japan, Xinfu, Jangshen, Jailing,
Hero, TVS Victor, Yamaha, Suzuki, Bajaj,
Vespa, etc.
Motorcycle
is extensively used in Bangladesh in both rural and urban areas. The use of
motorcycle has gradually increased in Bangladesh due to several reasons as
mentioned below:
Easy to drive;
Easy access to remote location;
Cheapest transport;
Longevity of the vehicle;
Easy to handle and park at any place.
While assessing the future demand of motorcycle, we
observe that there is an increase in the use of motorcycle facilitated by the
present trend of economy and the changed behavior of the target users. Key factors influencing the market demand of motorcycles
are:
Withdrawal of three wheelers by the Bangladesh Government
creating more demand for motorcycle by certain
segment of people;
Improved roads and high ways;
Availability of leasing finance facilities by almost all
leasing companies, banks and financial institutions.
At present, there are a limited number of producers of
spare parts of motorcycle in Bangladesh. Therefore, the major spare and parts are imported form
different countries like Japan, China, India, Pakistan,
Italy, England, America, Germany, etc.
b)
A uto rickshaw / Three wheelers
There has been a tremendous increase over the past two
decades in the number of auto rickshaw and tampoo in Bangladesh to compensate for inadequate number
of commercial buses, minibuses, etc. Now, it
is an important vehicle in Bangladesh. Low and middle class family members
mainly use these vehicles. But, the
government of Bangladesh has already banned these two vehicles to avoid environmental pollution. It is estimated that
presently there are 160,000 auto rickshaws including unauthorized
units in Dhaka City alone. There has been a phenomenal.-
However,
effective 1st September,2002, the two stroke auto rickshaw will be
totally banned, which is expected to
dramatically reduce the requirement of parts for these type of vehicles, but
increase demand for the new CNG auto
rickshaw andthree stroke auto rickshaws will be there with increased demand for
parts and components.
(c) Motorcars
Increased demand, economic development and changed life
style have resulted in a great increase in the
number of motor cars and the demand for motor cars is still increasing day by
day. Both brand new and reconditioned cars
are imported into the country. Statistics show that majority of the people
usually prefer reconditioned motorcars more than brand new cars due to
lower price.
In Bangladesh, more than 65% of the total
motorcars are coming from Japan. Many Bangladeshis living in Japan involve themselves in reconditioned car
business. Recently, the government has put an age
restriction on the import of reconditioned motor cars. Reconditioned cars more
than 3 years old can not be
imported.
The government has also reduced the
duties and taxes on the import of new cars to discourage reconditioned car import. Impact is that people now
can buy new cars at a reasonable price having longer durability. The
government has introduced new system of taxicab in 1998. As a result, the number of motorcars has been increasing. But, the
requirement of spare parts and components will be lesser. Again, after
the 1st September 2002, the ban of auto rickshaw will lead to a
significant increase in motorcars mainly in
the form of taxi cabs. Use of motorcars has increased tremendously,
which is evident from the statistics for the last five years shown in the chart below:
(d) Light & heavy commercial vehicles
(bus, minibus, truck, pick-up, etc)
Like the motorcar, there has been an increasing trend in
the number of light and heavy commercial vehicles
that include mini bus, bus, human howlers, passenger carriers, trucks,
pick-ups, covered vans, large covered vans,
etc. Over the last one decade, the use of these types of vehicles has increased
at a high rate. This is due to
increased demand for the these types of vehicles/automobiles effectively backed
by institutional financial support to procure them. This growth rate will
continue to increase in the near future. The
average growth rate is 5.63% and 4,644 in the number of vehicles annually.
(e)
Farm and agricultural equipment/vehicles
Also, there is an increasing trend in the number of farm
and agricultural equipment/vehicles due to increased application of modern
tools and techniques in farming and agricultural production. Now-a-day,
agricultural vehicles like power tiller, tractor and trailers are being used in
the rural areas more frequently than the past. During the last one decade,
various agricultural development projects funded by the different donor agencies have been
implemented in the rural areas and under those programs, the farmers were given financial
facilities through NGOs and banks to procure modern agricultural equipment including farm vehicles.
Traditional cow based cultivation method is giving away to mechanized farming in the rural areas
of Bangladesh. One of the key elements that made this possible is the availability of lease financing facilities in the
country and the large amount of agricultural credit funds. It has been observed that there is a reasonable growth in the
number of agricultural equipment every year. This growth rate will continue to
increase in the near future provided there is no drastic change in the government policy relating to
agricultural sector like reduction in the subsidy and assistance and low cost fund for the farmers. The
average annual growth rate is 2.5% and 125 in number of vehicles every year.
3.4 Estimated demand of automobile /vehicles in
Bangladesh
Taking into consideration the future prospects and also
keeping the resent growth pace influenced by various elements discussed
earlier, it is expected that there would an additional increase in the use of
vehicles. In view of the possible new avenues and prospects and looking into
the weighted average growth rate of 6%, table
below shows estimated demand for the next five years.
Table
2: Projected demand of automobile /vehicles in Bangladesh
Vehicle/Year
|
2002-03
|
2003-04
|
2004-05
|
2005-06
|
2006-07
|
Two & Three Wheelers
|
|||||
Taxi
|
2,570
|
2,724
|
2,887
|
3,060
|
3,243
|
Auto-rickshaw/three wheeler
|
130,766
|
143,842
|
158,226
|
174,048
|
191,452
|
Motor-cycle
|
201,116
|
211,171
|
221,729
|
232,815
|
244,455
|
Light & Heavy Commercial
Vehicles
|
|||||
Bus/ Minibus
|
32,461
|
34,084
|
35,788
|
37,577
|
39,455
|
Micro-bus
|
19,762
|
22,133
|
24,789
|
27,763
|
31,094
|
Trucks
|
53,977
|
57,215
|
60,647
|
64,285
|
68,142
|
Jeep
|
11,197
|
11,420
|
11,648
|
11,880
|
12,117
|
Car
|
79,578
|
86,740
|
94,546
|
103,055
|
112,329
|
Farm & Agricultural Vehicles
|
|||||
Tractor
|
3,646
|
3,791
|
3,942
|
4,099
|
4,262
|
Trailers
|
2,030
|
2,070
|
2,111
|
2,153
|
2,196
|
Others
|
18,051
|
21,300
|
25,134
|
29,658
|
34,996
|
Total
|
555,154
|
596,490
|
641,447
|
690,393
|
743,741
|
3.5 Regulatory environment and the role of
the Government
After independence in 1971, the
country had to follow the rules and regulations of the then Pakistan government.
Even soon after 1971, the same rules and regulations were followed with slight modification.
Before 1982, the government did not effectively control the sector to the
extent now it is. However, the regulatory body needs reforms and
restructuring to bring efficiency and dynamism in day-to-day
work. Effective program to modernize and expansion the regulatory body has
become indispensable to handle the expanded activities in the total transport
sector. They are mainly concerned with the environmental impact, registrations
of vehicles, road and route permits; licensing of vehicles; and vehicle fitness
for plying on roads, etc.
4.0 Auto parts and components industry in
Bangladesh
As Bangladesh have no automobile
industry, the sector is totally depended on import, except a few automobile-assembling units.
Every year number of automobile is increasing due to increased requirement, demand as well as increased
population. The sector has growth potentials.
Consumption of auto parts depends on
several factors. There is a numerous types of auto parts being used by
different types of automobile. Some parts have very short usage time and some
have longer usage time. In Bangladesh, since there is no automobile
manufacturing plant, there is not enough producers of auto parts. However,
there is an area in southern part of Dhaka City where there are few indigenous
auto parts manufacturing units. These parts are required for the exterior
purpose but not for the important and critical interior purpose. These are
limited to horn, light, glass, mirror, etc.
Total demand for parts and components
will increase in future because of increased use of vehicles on roads, which
has to be met by imports and import only.
The projected demand of auto parts of various types of
vehicles are estimated below: Supply and demand survey on automotive
components - Bangladesh
Table 3: Projected demand of auto
parts import in Bangladesh
(OOP' Taka)
Parts/Year
|
2002-03
|
2003-04
|
2004-05
|
2005-06
|
2006-07
|
Chassis with engine for tractor etc
|
620,774
|
664,228
|
710,723
|
760,473
|
813,706
|
Body for tractor, passenger car,
etc.
|
29,214
|
32,135
|
35,348
|
38,882
|
42,770
|
Parts and accessories of tractor,
goods vehicles etc.
|
78,346
|
92,448
|
109,088
|
128,723
|
151,893
|
Motorcycle/auxiliary motor fit
|
1,776,157
|
2,095,865
|
2,473,120
|
2,918,281
|
3,443,571
|
Invalid carriage, mechanical propel
|
5,218
|
6,157
|
7,265
|
7,464
|
8,807
|
Part/and accessory of motorcycle
etc.
|
79,377
|
93,664
|
110,523
|
130,417
|
153,892
|
Total
|
2,589,086
|
2,984,497
|
3,446,067
|
3,984,240
|
4,614,639
|
4.1 Structure of the auto parts market
The parts and components market in
Bangladesh is almost 100% import based. There is no quality local
manufacturer of parts and components. So, several groups of importers of parts
and components are there that include commercial importers, automobile
assembling houses, public sector institutions and diplomatic importers. In
Bangladesh, parts and components are mainly imported from countries like Japan,
UK, Taiwan, China, Korea, Malaysia, USA, India, Indonesia, Pakistan, etc.
The market of parts and components is
very small but expanding rapidly. Commercial importers facilitate
bulk quantity import of parts that are distributed through wholesalers and
retailers. End users get the parts from the retailers and the retailers buy
parts from the importers. However, there are also importers
who have their own retail outlets. An assembler may also be an importer who
requires a large quantity of parts and components for its assembling unit.
A limited number of commercial importers import parts and components from
different sources as mentioned above.
In most cases, the assembler imports
parts and components from the country where the brand is originated. Some
assemblers even purchase parts and components directly from the big importers.
There is another group within the distribution channel of parts and components
i.e. auto servicing centers like garage, mechanical workshop, body building
units, etc. The servicing centers purchase parts from the whole seller as well
as from the retailer. End users get parts and components from retailers
dealing in different type and brand of automobile. Although no local
manufacturer of quality parts does exist, but active negotiations are going on
to set up joint venture parts and component manufacturing units with China,
Korea and Taiwan. Present structure of parts and components market is
graphically shown below:
In Bangladesh, neither we have an
automobile industry nor a quality auto parts industry. So, the people of
Bangladesh have no clear idea about the automobile industry or auto parts and components
and their usage. The market of auto parts and components is influenced by couple
of elements. People while purchase auto parts and components, they are
influenced by several factors and these auto servicing centers, workshop and
garage, motor pool managers, Institutional Importers (i.e. embassy), retailers,
agents
of branded automobile, etc.
4.2 Foreign exporters of automobile components
The automobile market in Bangladesh
has been dominated by the multinationals from Japan, Korea, China,
India, and Europe since independence. Still the multinationals play significant
role to meet the demand and supply and occupy a large market share in
comparison to their number. Over the last couple of years, some automobile
importers like Nitol Motors, Uttara Motors, Aftab Vehicles, Ifad Autos,
Meghna Vehicles, Navana Vehicles, etc. have enter the local market. But, as our
local automobile market are 65% dominated by Japan, we continue to import a
large share from Japan. There is large market for the exporters of
automobile parts and components of the participating countries as the local
industry is based on the imported components.
4.3 Domestic parts and components industry
1. Domestic parts and components industry
Presently, there is no well-organized
and quality manufacturer of parts and components in Bangladesh. Some low
quality indigenous manufacturing of parts and components are there but they are
carried out against specific order to meet emergency requirement.
There is no mass production to meet the requirements. Given below are some
idea of what the local manufacturers try to produce:
Filters, radiators, radiator hoses,
air filter housing;
Brake pads, brake drum, brake disc;
Electrical parts such as battery, horn, wiring, wiper and
washer assembly, head lights and other lights;
Trim and upholstery such as carpet,
floor mat, rear parcel shelf, seat assembly, safety belt and melt damping
sheet;
General parts such as paint and
thinner, under seal, tyres and tube, and mirrors.
4.4 Import policy and procedures
Government is committed to foster a gradual development of
free market economy in the light of GATT
agreement. In the interest of export promotion and investment in the country,
Bangladesh have long term, stable,
facilitative and liberal Import Policy. Efforts have been made to make the
Import Policy easier and more liberal by relaxing or rescinding the
regulatory provisions of the previous Import
Policy. Provisions have already been made to allow import of capital machinery
and industrial raw materials on
consignment basis without the cover of the Letter of Credit. In the present
Import Policy Order second hand /
reconditioned machinery are importable subject to fulfillment of certain conditions. Gradually efforts will be made to
classify those machinery under HS Code.
4.5 Rules and
regulations on imports
For import purpose, the new ITC
Numbers (HS Code) can be uses with at least six digits corresponding to the
classification of goods as given in the Import Trade Control Schedule 1988,
based on the Harmonized Commodity Description and Coding System,
shall be mandatory.
Import of any goods or machinery in
Bangladesh will be done according to certain rules and regulations as laid down in the
"Imports and Exports (Control) Act, 1950". Parts, accessories or component, import of which is otherwise banned or
restricted, shall however, be importable along with machinery item is permissible for import.
Manufacturing age of the used
reconditioned vehicles must not be more than three years at the time of
shipment. In case of determining the date/age of the concerned vehicles, the
age of the vehicles shall start counting from the first day of the next year
of manufacturing. In case of vehicle made in Japan, the date of manufacturing
shall be determined from the chassis book, published by the Japan
Automobile Association. In case of import of vehicles made in other countries where chassis book is not published, importer shall submit a certificate regarding the date of manufacture of vehicle from an internationally reputed surveyor firm.
Automobile Association. In case of import of vehicles made in other countries where chassis book is not published, importer shall submit a certificate regarding the date of manufacture of vehicle from an internationally reputed surveyor firm.
Commercial import of second
hands/reconditioned engines and gearboxes of bus, truck, mini – bus and macro
bus will be permissible. But such engine and gearboxes shall not be permissible
for import if they are more than five years old. In this case a certificate
regarding age-limit, either from exporting country's recognized Chamber of
Commerce & Industry or from an internationally
reputed surveyors shall be submitted to the customs Authority at the time of release of the goods.
reputed surveyors shall be submitted to the customs Authority at the time of release of the goods.
Following documents along with the LCA
must be submitted to the nominated banks by the importers:
L/C application form duly signed by
the importer;
indents for goods issued by indent or
a pro forma invoice obtained from the foreign supplier;
insurance cover note.
4.6 Government regulations on imports
(a) Pre-shipment inspection
Unless otherwise specified,
pre-shipment inspection of imported goods shall not be obligatory in case of
import by the private sector importers.
(b) Import procedures
(i) Import License not required: No import
License will be necessary for import of
any item;
(ii) Import
against LCA Form: unless otherwise specified, all imports transacted through a
bank (L/Cs, bank
drafts, remittances etc.) shall require LCA form irrespective of the source of finance;
(iii) Import
against L/C: Unless otherwise specified, import shall be made only by opening irrevocable
letter of credit (L/C);
However, L/C is not required for
import of each consignment, by road, of easily perishable item valued form
$US 5,000 to 7,500 and for import of capital machineries and raw-materials for industrial
use without any price limit. Existing conditions regarding import on deferred
payment under L/C shall be applicable in this case also and importer shall be
required to register with Bangladesh Bank for importation without L/C.
(iv) Import
against LCA Form but without opening of Letter of Credit (L/C): Import against
LCA Form may be allowed without opening of letters of credit;
(v) Import
on deferred payment basis or against supplier's credit: Subject to restriction
and prohibitions contained in this order, import on deferred payment basis
or against suppliers. Credit may be allowed on the basis of procedure laid down
by the Bangladesh Bank in this behalf;
(vi) Import
against direct payment abroad: Only Bangladeshi nationals living abroad may
send any importable item irrespective of value ceiling against direct payment
abroad in the name of any Bangladeshi living in Bangladesh. The name
and address of the consignee shall be mentioned in the import
documents. For such import, no permission or import permit from the Import Control
Authority shall be necessary;
(vii)
Document required to be submitted along with LCA Form: Importer in both public
sector and private sector shall submit to their nominated banks the following
documents along with the L/C Authorization Form for opening letter of
credit:
L/C application form duly signed by
the importer;
Indents for goods issued by indent or
a pro forma invoice obtained from the foreign suppler, as the case may be;
Insurance cover note;
(viii)
Auditioned documents to be furnished by public sector importers: In
addition to the documents mentioned above, the following document will
be required. The attested photocopy of sanction letter from the
Administrative Ministry or Division or Authority, wherever applicable;
(ix) Additional documents to be furnished by
private sector importers: In addition to the document mentioned
above, the following documents will be required.
4.7 Categories of
importers and eligibility criteria for issuance of import license
Generally, there are three categories
of importers are in Bangladesh. To import automobile, the importers
have to have the following criteria:
1. Foreign firms
Foreign firms are allowed to import
permissible commercial items against prior permission from the Chief
Controller of Import and Export and need to provide following documents:
Photocopy of the valid Import
Registration Certificate;
Photocopies of invoices, bill of
lading, and import permit duly certified by the bank;
Original or copy General Index
Register (GIR) certificate from Income Tax Authority;
Certified copy of the last income tax
assessment order; and
Name and description of each item to
be imported with quantity and C&F value.
2. Public sector importers
Public sector importers need to
provide the following documentation:
Attested photocopy of allocation
letter issued by the allocating authority in favor of the concerned public
sector agency specifying the source, amount, purpose, validity, and the terms
and conditions;
Attested photocopy of sub-allocation
letter, if any, issued in favor of the importing agency or unit;
Attested photocopy of sanction letter
from the administrative ministry or authority where applicable;
and
A declaration by the authorized officer
of the importing agency indicating the amount of utilized/unutilized government funds
and that imported raw materials will not be sold.
3. Private sector importers
Private sector importers need to furnish
the following additional documents:
Valid membership certificate from the
registered local chamber of commerce and industry or any trade
association, established on an all-Bangladesh basis, representing any special
trade or business;
Proof of payment of renewal fees for
the Import Registration Certificate (IRC) for the concerned fiscal
year;
Copy of a "TIN Certificate"
issued by the tax authority. The TIN (Tax Identification No.) Certificate
is a new requirement aimed at ensuring collection of income tax, VAT and other revenues
from importers;
A declaration, in triplicate, that the
importer has paid income tax or submitted an income tax return for the
preceding year; and
Any such documents as may be required
by import policy order or public notice, or instruction issued by
the Chief Controller of Imports and Exports.
Uttara Motors Ltd, A Market Leader:
Automobile market is a booming
market in Bangladesh & Uttara Motors Ltd. is no doubt the market leader.
Uttara Motors Ltd. is the largest automobile Seller, importer, assembler &
distributor in Bangladesh. It has 12 brand by all or the country & more
then 75 nos. dealers working under every branch Uttara Motors Ltd. covers a lot
of famous brand, like "Isuzu" & "Suzuki" vehicle has
been imported from Japan, "Maruti Suzuki", "Bajaj",
"Swaraj Mazda" has been imported from India Pack Suzuki from
Pakistan. An early research showed that
the main products of Uttara Motors Ltd.
2-Wheeler – Bajaj
3-Wheeler – Bajaj
Cars – Suzuki &
Maruti Suzuki
Jeeps – Suzuki &
Isuzu
Microbus – Suzuki &
Maruti Suzuki
Minibus – Swaraj Mazda
& Isuzu
Pickups – Ravi & Isuzu
Bus – Isuzu
Trucks – Isuzu &
Swaraj Mazda
5.1 Bajaj
Motor Bike
Bajaj motorbike is the first Indian motorbike in the market of Bangladesh
to offer quality bike to the customers. Therefore, it will enjoy the ‘first
mover’ advantage in the market. It is likely to achieve middle and upper-middle
class consumers’ preference and may capture the maximum market share. It also
has the advantage of economies of scale, trend leadership to set the attributes
of the product.
Uttara Motors Ltd is the sole distributor of Bajaj Auto has achieved
highest market share in financial year, achieving 29% share had to face tuff
competition. About number of 12 automobile companies are involved with
Two-wheeler marketing and they are
offering attractive package of price and features to their potential customers.
The main competition of Bajaj are Hero Honda, Yamaha, Honda Pak, Dayang
etc and their market share is very closed to Bajaj. Beside these several number
of Chinese Brands are available in Two-Wheeler market are achieved a remarkable
market share. As a heist market share holder all of we have try to grip the
share first position and try to increase it to 35% of total market.
Different Brand of Bajaj Motor Bike:
BAJAJ KB 4S/ ASPIRE
BAJAJ CHETAK
BAJAJ CALIBER CROMA
BAJAJ KB-125
BAJAJ CALIBER
BAJAJ LEGEND SCOOTER
BAJAJ CLASSIC SL SCOOTER
BAJAJ CLASSIC SS SCOOTER
BAJAJ BOXER - AT
BAJAJ BOXER - CT
BAJAJ KB 4S CHAMPIAN
BAJAJ BOXER
BAJAJ CLASSIC
BAJAJ KB RTZ
BAJAJ M-80
BAJAJ SUNNY
BAJAJ SUPER FE
BAJAJ SX ENDURO
BAJAJ PULSER
BAJAJ BOXER CT DELUX
BAJAJ BOXER AR
BAJAJ BYK
BAJAJ PULSER DTSI
5.2 Findings
and Analysis:
I have conducted a questionnaire survey and the findings and analysis
from the same are as follows:
5.2.1 Link
Between Driven of Bajaj Motorbike and other Brand Motorbikes
In my finding that before using Bajaj motorbike most of the respondents
use quality Japanese motorbike for 5 yrs or more than that. From the total
respondents majority of them used 7-12 months of Bajaj motorbike. When bajaj
introduced in the market, it’s started to attract those customer, and for its
overall performance respondents replace
it from their other type of motorbike. Normally researcher found that most of
the respondents are using Pulser and Boxer AR.
5.2.2
Competitor
I have found that the majority of respondents used Yamaha and Honda,
which are the major competitors of Bajaj motorbike. And those who used Yamaha
and Honda they normally select pulsar of Bajaj motorbike, because of its look,
fuel consumption, speedier and well designed.
5.2.3
Competitive Advantage
Obligation for non-availability of Japanese motorbike is the main reason
of changing respondents mind to buy Bajaj motorbike. Objections for parts
availability, services and dissatisfaction for fuel consumption are also the
reasons of make the choice of Bajaj motorbike. But for the Bajaj Motorbike
respondents ranked those attributes very good. Respondents who are using Bajaj
motorbike, they like much better style, speedy, especially young peoples they
like lucrative motorbike and Uttara motors are providing Bajaj motorbike in the
market which can deliver all the need of recent customer.
5.2.4 Ranking
attributes of Bajaj Motorbike
I have found in my findings that the design of Bajaj Motorbike as their 1st
choice, second choice as feature, fuel consumption as their third choice,
durability as fourth choice, price as their fifth choice, brand image as sixth
choice, spare parts availability as seventh choice and resale value as their
eight choice. Most of the respondents use pulser and boxer AR motorbike. I have
found that most of the respondents who uses
pulser, their age level is 26-30. So majority respondent are young, they
likely speedy motorbike and well design motorbike and majority education level
is bachelor’s and their income level is 10,000-40,000 and most of them use
their personal purposes. I have found that spare parts are not available in the
market though it is also an important factor while purchase a motorbike. So
company needs emphasis on spare parts availability. It’s been clear from the
analysis that most of the respondents are not satisfied with the price and they
are very much pricing sensitive while they purchased any product.
5.2.5
Affordability to the Price of the Bajaj Motorbike
I have found maximum price of the Bajaj Motorbike is Pulsar-1,05,500.00
and lowest price of the Bajaj Motorbike is BYK-55,500.00. I have found that the
majority respondents are not satisfied with the price. They claimed especially
about the pulser, which is more expensive than the other brands of Bajaj
motorbike. Those respondents used Honda or Yamaha. They bought it also with
higher price at that period but Bajaj is an Indian motorbike and that’s why
they feel its price should be keep low compare than Japanese reputed Brand
Motorbike. Though Bajaj providing all the lucrative things that a bike needs
but respondent are not happy with price. Those respondents are not happy with
price; most of their age level is 26-30, Education level is Bechelor’s and
their income level is 10,000.00-20,000.00 and most of they use their official
purposes they want a price that is affordable for all customers. Though its
price is high but people still select Bajaj motorbike because of the
unavailability of Japanese Motorbike.
5.2.6 Reason
to Choice of CC
I have found that from the total respondents 70, there are use different
CC such as Boxer AR-100cc, Pulsar –150cc, Discover-125cc, Ct-100cc, Ct-100scc,
KB-100cc and BYK-80cc. Most of the respondents use Pulasr-150cc and Boxer AR-
100cc. These two types of model server most of the modern facilities such as
design, look, features, speedier, fuel consumption, and because those respondents
who used well reputed brand motorbike like Honda or Yamaha, their expectation
are high and to meet their satisfaction they have chosen these types of bike of
Bajaj.
Post Purchase Behavior :
Satisfaction of fuel consumption.
I have found that from the total
respondents 26 respondents uses Pulsar motorbike. It’s found that most of the
respondents are satisfied with the fuel consumption of their bike. So the
perceived benefit matches with their expectation at this particular issue. The
other respondents who use other types of bike of Bajaj, they also satisfied
with the fuel consumption of their bike. So overall almost all the respondents
are satisfied with the fuel consumption of their motorbike.
Satisfaction of After Sales
Service
From this report, I have found that
74.3% of the total respondents are satisfied
with the after sales service of the
company and from those respondents most of them users Pulsar which spare parts
are not available in the market. So most of the respondent are satisfy to the
after sell service. Uttara Motors offered 1 years service warranty but they
should give more emphasis of their after sales service, so that they can
provided better after sales service in near future. Because it’s becoming more
competitive market, they must provide some competitive advantage. So that they
can grow more customers and can maintain good customer relationship.
Availability of Bajaj Motorbike
I have found that availability of
Bajaj Motorbike 62.9 percent respondents gave
their positive opinion but 37.1
percentages were not satisfied for the availability while purchasing the
motorbike. Because of Pulsar motorbike is not available in the current market.
Satisfaction of Existing Product
From this report, the researcher
has found that from the total respondents 26 respondents uses Pulsar motorbike.
And almost all of them are satisfied with their existing product. Where as,
rest of the respondents who uses other types of bike, 9 of them are not
satisfied with their existing bike. So the researcher can say that most of the
bike especially pulsar and Boxer AR are quality bike. And it shows that
companies are not concern about quality because they already provided quality
bike in the market. That’s why most of the respondents the researcher found
that they are satisfied with their existing motor bike.
Recommend to Others
The researcher has found from his
research paper that almost every respondent except 5 consumers are willingly to
recommend others to buy the motorbike. Most of the respondents said, according
to Durability, Availability, Brand Image, Design, Feature, Fuel consumption
were positive, that’s why researcher found that company provides quality
motorbike in the market and so that consumer doesn’t hesitate to recommend
others to buy the motorbike of Uttara motors that is Bajaj.
Comments expectation and
suggestions given by respondents
Price of Bajaj motorbike is one
unpleasant attribute that found by the survey research. Inaddition, after sales
service, Parts availability, Gear frequencies are also the unpleasant
characteristics that freely recommended by the respondents to the researchers.
They want Pulsar-150cc and 180cc available in the Dhaka market. On the other
hand researcher found that customers are happy with their motorbike as a
product and with the fuel consumption of the motorbike. But most of the
respondents claimed about the price that should be decrease in near future.
5.3 BAJAJ MOTOR BIKE SALES:
Year Sales
Qty
1999 – 2000 6120
200 – 2001 7911
2001 –2002 10897
2002 – 2003 11100
2003 – 2004 12300
2004 – 2005 14597
Growth of Bajaj Motor Bike over
last Six Year in Bangladesh
6.0 Suzuki Passenger Car
6.1 Market overview:
At present the passenger car market
of Bangladesh is having a steady growth rate and is on its way toward an
increasing growth rate. In the back drop of increasing urbanization &
greater mobility of people & for lack of well planned, systematic public
transportation network, demand for cars in general & small size, economy
cars in particular, would continue to increase.
At the moment a car, in general, is
not viewed as a symbol of luxury, rather it is viewed as a symbol of safety,
comfort & convenience. As the purchasing capacity of the vast majority of
the people in the country in habits the range of the new car price, there are
certain niches that would prefer to have their own vehicle, if it is readily
available & affordable. The middle class by bumper represent a large
portion of the car buyers, side by side with the upper class & the
potential market size is likely to increased as the price of the new vehicles
is within the reach of mass people as a result of the new government policy.
Taxi Cab segment also proved itself to be considered as a large market for the
new Cars.
6.2 Passenger Car Market in Bangladesh:
New & recondition vehicle sale.
Year Brand new Recondition
2001 1527 2800
2002 1784 2500
2003 2050 4300
2004 2425 5075
2005 2700 5500
Growth of Passenger Car over
last Five Year in Bangladesh
6.3 Govt. Policy:
2002-03 : Reduction of import duty
on new cars. Restriction on import of recondition cars. Introduce rules of
country of origin (Importing from any third country is not allowed).
Depreciation is calculating 10% for each year of recondition vehicle ( But note
exceeding 4 years). 2003-04 : Catalytic
converter use is Mandatory Supplementary duty is increased.
2004-05 : Reduced duty but
supplementary duty is increased.
6.4 Competitors of Suzuki vehicle :
Suzuki vehicles (Brand new)
competitor are :- Toyota, Nissan, Mitsubishi, Honda & Hyundai.
S/N. Brand Model C.C. Price
1. Suzuki Liana
Car 1328 cc
12,75,000/-
Liana
Car 1600 cc
15,25,000/-
Vitara
Jeep 2000 cc
25,55,000/-
2. Mitsubishi Lancer
Car 1300 cc
13,00,000/-
Lancer
Car 1600 cc
15,50,000/-
Pajero
Jeep 1800 cc
42,00,000/-
3. Nissan Sunny
Car 1300 cc
12,50,000/-
Lancer
Car 1600 cc
15,00,000/-
X-Trail
Jeep 2500 cc
27,00,000/-
4.
Toyota Corolla
Car 1300 cc
15,00,000/-
Rias
Car 1300 cc
17,00,000/-
Rav
4 Jeep 1800 cc
31,00,000/-
6.5 Recondition Car
Toyota Corolla
Car 1.3L(2000 Y) 11,50,000/-
Corolla
Car 1.5L(2001 Y) 14,00,000/-
Prenmo
1.5L(2002 Y) 15,50,000/-
Prenmo
1.5L(2004 Y) 17,50,000/-
6.6 Suzuki Sales
Year Sales
Qty
1999 – 2000 7
2000 – 2001 9
2001 – 2002 20
2002 – 2003 50
2003 – 2004 53
2004 – 2005 42
Growth of Suzuki Car over last
Five Year in Bangladesh
Projected sale in the year
2005-06
Model Qty.
Suzuki Liana 1300 cc Car 30
Suzuki Liana 1600 cc Car 25
Suzuki Liana 1600 cc Car (New
model) 5
Suzuki Grand Vitara 2000 cc Jeep 40
6.7 After sales service of Suzuki vehicles :
Uttara Motors Ltd. has the pleasure
to inform their customer that they being the sole distributor of Suzuki
vehicles in Bangladesh render minimum 4 (four) times free service during one
year operation at 1000 km, 5000 km,
10000 km. & 15000 km. At present they has 12 (twelve) branches in different
districts manned by Foreign trained experienced and skilled personnel’s through
which they render their after sales services. They are located at :-
Dhaka
Chittagong
Cox’s Bazar
Sylhet
Khulna
Jessore
Bogra
Pabna
Rajshahi
Rangpur
Dinajpur
Barisal
Moreover Uttara Motors Ltd ensure
to supply of spare parts through above branches as and when required by user on
reasonable cost for maintenance of their vehicles.
6.8 GUARANTEE
FOR SUPPLY OF SPARE PARTS
Uttara Motors Ltd. do hereby
confirm that the spare parts of Suzuki vehicle
will be available in production for more than next 15-years from now on.
They ensure to supply any spare parts of said vehicle during the above period
on reasonable payment basis.
6.9 Segment of Suzuki Customer/Institute
Establish Ministry
Bangladesh Biman
Bangladesh Road Transport Authority
Ministry of Foreign Affairs
Ministry of Finance
GTCL
Unilever Bangladesh Ltd.
Transcome Distribution
The Daily Star
The distinct segment are Lower,
Doctors, Teacher, Engineer,
Entrepreneurs, High official etc.
Corporate Office.
6.10 Sales promotion of Suzuki Vehicle
Sales promotion prefers: Short term
incentive & to encourage purchase or sales of product.
Sales promotion has 3 different
goals that relates to its 3 target audience.
To increase immediate customer
sales.
To increase corporate supports to
the sales force of the marketer.
To increase support to the business
to business trade of the product.
Some factory effecting sales
promotion.
1)
Rapid Growth of sales promotion :-
Inside the company the product
manager face greater pressures to increase their current sales. So promotion is
viewed as an effective short run sales tool.
Now companies are facing more
competition & since competitors brand very close to each other so they are
doing maximum sale promotion to help differentiate their offers.
Advertising efficiency has declined
because of rising cost so competitors are more towsing on sales promotion.
These days consumer have become
more deal oriented so they look for more like financial benefits.
6.10.1 Selling sales promotion
objectives :
The objective are –
Increase short term sales.
Help build long term market share
Motivate customer to try new products.
Attracting competitors customer.
Increase sales of Suzuki Product.
6.10.2 Selecting sales promotion
tools.
Consumer promotion tools:
Samples; In case of vehicle a or a
small amount of a product for trial not possible. So UML decide to chance drive
of Suzuki vehicle for short run like 2 or 3 Km.
Coupon : UML offering certificate
that gives buyers a saving when they purchase a product or at the after sales
services.
Cash refund offer : UML Still thing
king about it.
Price Pack : At the time of festival
UML offer some special discount for Suzuki vehicles.
Premium : UML some time offer
purchase a Suzuki vehicle get a “Gold reckless” free.
Patronage reward : For corporate sales (Huge quantity) special
discount offering.
Contests, Games : Promotion event like TV Game (in channel i)
UML offer a vehicle for winner.
6.11 Trade Promotion Tools :
Price discount : Incase of only motor cycle sales UML offer
price discount for whole seller, like get extra Tk.2,000/- discount on whole
gate price till 31st of this month. But incase of Suzuki vehicle on
it is not introduce.
Point of purchase promotion : Fro
display or demonstration UML open a new exclusive Suzuki showroom at 102,
Shahid Tajuddin Uddin Ahmed Sharani, Tejgaon, Dhaka.
Allowances : Promotion money paid by Suzuki Motor
Corporation, Japan to UML in return for an agreement to all the manufacturers
product in some way within one year.
6.12 Advertising plan
Advertisement is the fine art of
convincing people that the doors to open standards are never closed.
The Advertisement plan &
campaign plan are similar in outline & structure. It matches the right
audience to the right Message & present it in the right medium to reach
that audience.
Objective of advertising plan are
Create awareness among 60% of target
audience. UML use repetitive advertising in newspaper, magazines, TV Programs.
Establish brand (Suzuki) image,
through Suzuki’s features, benefit & after sales services.
Selling point are of spare parts.
6.12.1 Draw a typical advertising plan outline:
It matches the right audience to
the right message & presents it in the right medium to reach that audience.
The basic elements are important while planning for an advertising campaign.
Targeting the audience : Whom are we trying to
reach?
Message strategy : What do we say
to them.
Media strategy : When, where &
how will we reach them.
6.13 Advertising plan out line for Suzuki Vehicle:
Situation analysis : 1st
step in developing an advertising plan we analyze the important information
affecting the market place, competitors, consumer, behavior, company itself
& product or brand.
Advertising problem : Analyzing the situation & identifying
the problem. This problem can be solved with advertising message. Advertising
can solve only those problems of a product like, image, attitude, knowledge of
information etc.
Targeting the audience :
People who can be reached with certain advertising medium & a particular
message. We select reach people that means our target audience is reach people.
Product feature &
competitive : Feature analysis & competitive advertise an important
step Uttara Motors Ltd. always analysis its.
Advertising budget : Uttara Motors Ltd using historical method.
Based on last year’s budget. Last year budget was 3,00,000/-. This year budget
10,000/-
6.14 Media using for Suzuki Advertising.
T. V. : Uttara
Motors Ltd using TV media (National), our manufactures using satellite TV for
advertising. High light vehicle advantage, feature etc.
Newspaper : Every month minimum one advertise publish in
The Daily Newspaper with multi colour, regarding Suzuki’s after sales service
facilities.
Holding :
Every district shown “Suzuki” advertise with picture of new model
Suzuki.
Banner : Some special day or event Uttara Motors Ltd
use banner.
Direct mail :
New product’s catalog send by direct mail with product specification.
Advantage benefit design.
On line : Uttara Motors Ltd., develop website
advertise.
6.15 Strategic planning from top to bottom.
Corporate plan
Corporate Strategy
Corporate Tactics
|
Functional
Level planning
|
|
|
Marketing plan
|
|
|
Marketing strategy
|
|
|
Marketing tactics
|
Advertising plan
|
|
|
Advertising strategy
|
|
|
Advertising tactics.
|
Strategic planning reaches all
levels of an organization from the corporate level to tactical daily
operations.
Steps in the marketing plan
|
||||||
Select
Marketing
Objective
|
Identifies
Threats &
Opportunities
|
Select
Target
Market
|
Develop
Marketing
Strategies
|
Design
Action
Plan
|
Execute
Plan
|
|
|
|
|
|
|
||
|
|
|
Measure Results & take action
|
|||
Strategy :
Strategic planning – making
intelligent decisions.
Strategic planning is the process
of determining objective, deciding on strategies & implementing the
tactics. This process occurs within a specified time frame. Intelligent decision
making means weighing these alternative & choosing the best approach.
Develop Marketing strategies : An
important port of planning is identifying the key strategic decision
that will give the product a competitive advantage in the market. Strategy
selection begins with several assumptions that the marketer make about the
market. These assumptions deformine the
relationship between each of the marketing mix & lead to the next stage of
the planning process.
Example : 4 pcs : Product : whether
the customer needs the product ? Price : whether the price of the product is
worthwhile ? Place : whether the place is right for the product ? Promotion :
whether we are using right media / persons / message / time etc. to promote the
product ?
Design Action Plan : Uttara
Motors Ltd develop specific action plan each element of the marketing strategy
must be dissected.
Executing Plans : Implementation
or executing the typical marketing plan requires a great number of decision.
Poor execution has been downfall of many excellent marketing plan. Uttara
Motors Ltd. few the following points for executing a plan.
Making sure vehicle in the
showroom at right time.
Ads are running on schedule.
Sales people are receiving the
right & enough support materials like catalog.
All above should be tracking day by
day.
Measure Results & take
action :
Every marketing plan must include
an evaluation components that compares actual performance with planned
performance. It the marketer determines the gap between objective &
performance is significant enough, corrective action must be take. Uttara
Motors Ltd. also follow the above strategy.
Some other plans :
Uttara Motors Ltd. will be opened
minimum one new show room in Dhaka City within short time for attacking
customer.
Finding new dealer for Suzuki
vehicle marketing.
Appoint new sales force for
covering whole Dhaka City & all segment of customer.
Signed a MOU with BRAC bank &
Uttara Finance And Investments Ltd. for sale of Suzuki vehicle without 0% down
payment.
Introducing new Suzuki Liana
Hatchback model car within this year.
7.0 Recommendation :
After all the study on Bajaj Motor
Byke and Suzuki vehicle in Bangladesh on
Uttara Motors Ltd., I can say that
mainly middle class,upper middle class & few higher class peoples are valued
customer for Bajaj Motor Bike and Suzuki vehicle. So, competitive price, better
after sales service, establish brand image & customer awareness can develop
the market of Bajaj Motor Bike and Suzuki vehicle in Bangladesh.
Beside require more advertisement
about highlight advantage & benefit of new car so that general people can
compare with other brand new & recondition vehicles.
We know AD through news paper can
reach to every corner of the country & also special interest group. Same
paper way have ADS for similar but different brand car. So customer has option
to choose the right one.
Require also TV ADS, so that TV is
wide reach million of people watch TV at a time.
Needs remands sales promotion,
because objective of sales promotion can be increase short term sales help
build long term market share, motivate customer to try new product.
More conducting advertising
compare. Advertise campaign tell the market about a new product &
suggesting new users for a product. Encourage to switch to Suzuki brand,
Building brand image & persuade customers to purchase now or pursuer them
to make a purchase call.
Must be use direct mail. A direct
mail provides enough space to tell a complete & detail sales store. Direct
mail allows the marketer to reach audience who are inaccessible by other media.
Require more direct marketing, like
face to face. Because direct marketing refers direct communication with
carefully targeted individual consumers to obtain an immediate response. Direct
marketing allows sellers to focus efficiency with offers that better match
specific customer needs & Direct marketing also grown rapidly in business
to business marketing.
8.0 Conclusion :
As the day is passing the age is
getting faster. People are getting busy day by day. “Time is money” for every
body and cope us with the speed of life people need motor bike, car. Not only
in private life but also for business. So the demand of motorbike car &
jeep would go on increasing in the coming years. Greater mobility of people & for lack of well planned.
Systematic public transportation network, demand for motorbike and cars in
general would continue to increase. As
the purchasing capacity of the vast majority of the people in the country
inhabits the range of the new price,
there are certain niches that would prefer to have their own vehicle, if it is
readily available & affordable. The distinct segments that come to mind are
the Lower, Doctor, Entrepreneurs, University’s, Teacher, High Official etc. who
need a personal transport to be mobile. Uttara Motors Ltd. is coping up with
the situation & there sales promotion. Advertising plan & strategy
based on to capture customer with Bajaj
Motor Bike and Suzuki vehicle.
9.0 Bibliography:
Business
Profile, Uttara Motors Limited, 2002-2005.
Dodd's, W. R., Monroe, K. B., & Grewal, D. (1991).
Effects of price, brand and
store information on buyers' product evaluations. Journal
of Marketing Research,
28(3), 307-319. Eunsang Yoon and Valerie Kijewski Dynamics of product
features, quality evaluation,
and pricing.
Hawkins Best and Coney, Consumer Behavior: Building
marketing strategy, 8th edition Harper W. Boyd Jr., Ph.D. Marketing
Research, 7th Edition, 90-357 Kambhu (1982) as, Technical or physical
description" and Juran et al. (1974) Malhotra, 2003, Marketing research (Third edition), Upper
Saddle River, N.J.
Prentice-Hall
Mr. A
Haque Masud, Survey on Two-Wheeler Market in Bangladesh, 2001-2002. Naresh K. Malhotra (2003), Marketing Research,
3rd Edition, 109-160,292-350. Philip Kotler and Gary Armstrong
(1997), "Principles of Marketing", Eight Edition,
Prentice- Hall of India Private Limited. Philip Kotler (1999), "Marketing Management", The
Millennium Edition, Prentice- Hall
of India Private Limited. Pechmann, C., &
Ratneshwar, S. (1991). Consumer co-variation judgments: theory or
data
driven? Journal of Consumer Research, 79(3), 373-386. Rao, A. R., & Monroe, K. B. (1989). The
effects of price, brand name, and store name on
buyers' perceptions of product quality: an integrated
review. Journal of
Marketing.Research, 26(3), 351-357. Rehab directory. www.ammagazine.com.
www.consumersearch.com. www.google.com. www.emerald.com. www.marketingterms.com. www. msb. gr/M//flCM//>'/homak/webhelp.
Narmada motors offer wide range of heavy-duty truck spare parts for brands like TATA 3718, Truck, Leyland U spare parts suppliers in Bangladesh and UAE.
ReplyDeleteVisit here:- leyland spare parts in bangladesh
Narmada motors offer wide range of heavy-duty truck spare parts for brands like TATA 3718, Truck, Leyland U spare parts suppliers in Bangladesh and UAE.
ReplyDeleteVisit here:- truck spare parts in bangladesh
Narmada motors offer wide range of heavy-duty truck spare parts for brands like TATA 3718, Truck, Leyland U spare parts suppliers in Bangladesh and UAE.
ReplyDeleteVisit here:- leyland u truck spare parts in bangladesh
Narmada motors offer wide range of heavy-duty truck spare parts for brands like TATA 3718, Truck, Leyland U spare parts suppliers in Bangladesh and UAE.
ReplyDeleteVisit here:- tata spare parts in bangladesh
Hi I'm Rakesh Roshan, and I'm from India. I truly pulled in with the most all around saw strategy for organizing breaking down your piece concerning the meaning of obliterating. I have everlastingly been a peruser. I've found that it has basically remained mindful of my learning and careful.
ReplyDeleteBajaj Auto Rickshaw