Report on Uttara Motors Bangladesh by Roushan Zadeed

REPORT ON ‘UTTARA GROUP OF COMPANY.’

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 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. 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. 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. 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.

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. Corporate Office 39 Dilkusha Commercial Area; Dhaka-1000 Bangladesh. Tel: 880-2-9555280, 9564163, Fax: 880-02-9565172, E-mail: uttaragp@citechco.net 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

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 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

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. Concern of the Group: Uttara Motors Ltd. 39, Dilkusha C/A Dhaka-1000 Bangladesh Legal Form Establishment Year

: Private Limited Company : 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. Concern of the Group: Menoka Motors Ltd. 39-Dilkusha C/A Dhaka-1000 Bangladesh Legal Form Establishment Year

: Private Limited Company : 1979

Nature of Business: Assembler of Bajaj 3-wheeler and Bajaj Motor Cycle from India. Concern of the Group: 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. Concern of the Group: Uttara Apparels Ltd. 39-Dilkusha C/A

Dhaka-1000 Bangladesh. Legal Form Establishment Year

: Private Limited Company : 1991

Nature of Business: 100% export oriented apparels factory. Concern of the Group: 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. Concern of the Group: 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. Concern of the Group: 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. Concern of the Group:

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 Concern of the Group: 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. Concern of the Group: 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. Concern of the Group: Uttara Properties Ltd. 39-Dilkusha C/A Dhaka-1000 Bangladesh.

Legal Form Establishment Year

: Private Limited Company. : 1997

Nature of Business: Real estate business Concern of the Group: Uttara Knitwears Ltd. 39, Dilkusha C/A Dhaka-1000 Bangladesh. Legal Form Establishment Year

: Private Limited Company : 2000

Nature of Business: Manufacturer of 100% export oriented Knit Garments. Concern of the Group: 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. Concern of the Group: 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.

Human Resources: Company Name

Male

Uttara Motors Limited

237

Uttara Automobiles Ltd.

Uttara Tyre Retreading

Female

Total 246 67

Uttara Finance & Investment Ltd.

Uttara Hongkong JVC Ltd.

Uttara Exchange & Securities Ltd.

Uttara Knitting & Dyeing Ltd.

390

391

Uttara Apparels Ltd.

310

540

Uttara Services Ltd.

Uttara Properties Ltd.

Hallmark Pharmaceuticals Ltd.

124

127

850

Eastern Motors Ltd.

Menoka Motors Limited

246

Uttara Knitwears Limited

Total: Branches:

1,655

300

380

863

2,518

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, Coxâ&#x20AC;&#x2122;s Bazar: 880-0341- 63555 Dinajpur: 880-0531- 64687 Pabna: 880-0731- 64690 Rangpur: 880-0521- 62922 Barisal: 880-0431- 55349 Financial Structure

(In Million Taka)

Year

2000

1999-

2001

2000-

2002

2001-

2-2003

200

Capital 206.98

Paid-up

2123.4 Annual Turnover

1417.3 Net Asset

212.9

3069. 98

194.72

Annual Profit

196.9

3487.

612

54 392.6

1.26 451.5

1490. 20

212.

544.

1568.

164

6.86

Commercial and Passenger Vehicles Sales Profile: YEAR (UNITS) Vehcle

TYPE

PRODUCTS

2 000-01

SUZUKI 1600 CC

001-02

BALENO

SUZUKI LIANA

Pass enger Cars

MARUTI 800 CC CAR 3 MARUTI GYPSY MARUTI SUZ. ALTO 1000 CC 2 MARUTI ESTEEM 1300 CC 4 MARUTI SUZUKI WAGON 'R' MARUTI SUZUKI ZEN 1000 CC

2 003002-03 2004

5 3

1 7 3 9

4 7

2 1

8 0 2 7 1 6 1 0 1 8 1 82

1 1

0 7

MARUTI VARSA

MARUTI ALTO SPIN

5 8

SUB TOTAL 9 Four SUZUKI G/VITARA 3 Wheel DOOR Driv SUZUKI G/VITARA 5 es DOOR

5 0

2 2

79 3 2

8 2

6 3 2 1 2

SUZUKI IGNIS ISUZU TROOPER SUB TOTAL

CAB

ups

Pick

3 SUZUKI RAVI PICKUP 0 SUZUKI RAVI CARRY 4 SUZUKI RAVI COVER

VAN ISUZU PICKUP 4 ISUZU PANTHER CARRY CAB ISUZU HUMAN HAULER

5 3 4 1 8 1 7

obus

Micr

OMNI

NPR NKR

3 6

1 27

5 2

1 1 0

5 3

9 MAZDA

78 78

ISUZU NKR TRUCK

6 1 1 1

34 7

2 3

1 90

4 2

1 6

1 5

5 8

ISUZU MT BUS ISUZU LT 133 P BUS

09 4

MAZDA

2 3

4 1

9 9

MINI

SUB TOTAL

SUB TOTAL Truc

1 5

SWARAJ

SUB TOTAL Mini Truck M/T

MINI

BUS

Bus

SWARAJ MINI BUS

OMNI

BUS bus

ISUZU

9 3

SUB TOTAL

Mini

2 4 8 5 2

2 1

1 ISUZU

MARUTI (MICROBUS) MARUTI (AMBULANCE)

3 1 1

1 SUB TOTAL

4 61 61 0

3 7

2 4 1 1 3

3 05 05 5

6 4 2 2 3

ISUZU FSR TRUCK ISUZU NKR DELIVERY VAN 0 SUB TOTAL

5 6 1 2

6 6

1 4

AUTOMOBILE SECTIONS 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. 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 Mini bus

Hino, Mitsubishi, Isuzu, Volvo, Tata, Ashok Leyland, etc. 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 Nissan, Dewoo, Huyandi, Volvo, Ashok Leyland, vehicles 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: 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; 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. 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) Auto 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. 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 Two & Three Wheelers Taxi 2,570 Auto-rickshaw/three 130,7 Motor-cycle 201,1 Light & Heavy Commercial Vehicles Bus/ Minibus 32,46 Micro-bus 19,76 Trucks 53,97 Jeep 11,19 Car 79,57 Farm & Agricultural Vehicles Tractor 3,646 Trailers 2,030 Others 18,05 Total 555,1

2003-

2004-

2005-

2006-

2,724 143,8 211,1

2,887 158,2 221,7

3,06 174,0 232,

3,243 191,4 244,4

34,08 22,13 57,21 11,42 86,74

35,78 24,78 60,64 11,64 94,54

37,5 27,7 64,2 11,88 103,0

39,45 31,09 68,14 12,11 112,3

3,791 2,070 21,30 596,4

3,942 2,111 25,13 641,4

4,09 2,153 29,6 690,

4,262 2,196 34,99 743,7

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. AUTO PARTS AND OTHER 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

Parts/Year Chassis with engine for tractor Body for tractor, passenger car, Parts and accessories of tractor, goods vehicles etc. 46 Motorcycle/auxiliary motor fit

200 620, 29,2 78,3 1,77

200 664, 32,1 92,4 48

2,09

200 710, 35,3 109, 088

2,47

200 760, 38,8 128, 723

2,91

2006 813, 42,7 151, 893

3,44

Invalid carriage, mechanical Part/and accessory of Total

5,21 79,3 2,58

6,15 93,6 2,98

7,26 110, 3,44

7,46 130, 3,98

8,80 153, 4,61

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. 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. 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. 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. 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. Commercial import of second hands/reconditioned engines and gearboxes of bus, truck, mini â&#x20AC;&#x201C; 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 internationally 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. 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 rawmaterials 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. 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, A LEADER GROUP IN BANGLADESH:

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 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 Findings and Analysis: I have conducted a questionnaire survey and the findings and analysis from the same are as follows: 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, itâ&#x20AC;&#x2122;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.

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. 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. Ranking attributes of Bajaj Motorbike I have found in my findings that the design of Bajaj Motorbike as their 1 st 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. 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. 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 BYK80cc. 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. BAJAJ MOTOR BIKE SALES: Year 1999 – 2000 200 – 2001 2001 –2002 2002 – 2003 2003 – 2004 2004 – 2005

Sales Qty 6120 7911 10897 11100 12300 14597 Growth of Bajaj Motor Bike over last Six Year in Bangladesh

16000 14000 12000 10000 8000 6000 4000 2000 0

1999 – 2000

2000 – 2001

2001 –2002

2002 – 2003

SUZUKI PASSENGER CAR:

2003 – 2004

2004 – 2005

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. Passenger Car Market in Bangladesh: New & recondition vehicle sale. Year Brand new 2001 1527 2002 1784 2003 2050 2004 2425 2005 2700

Recondition 2800 2500 4300 5075 5500

Growth of Passenger Car over last Five Year in Bangladesh

Brand New Recondition

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. Competitors of Suzuki vehicle : Suzuki vehicles (Brand new) competitor are :- Toyota, Nissan, Mitsubishi, Honda & Hyundai. S/N. Brand 1. Suzuki

Model Liana Car Liana Car Vitara Jeep

C.C. 1328 cc 1600 cc 2000 cc

Price 12,75,000/15,25,000/25,55,000/-

2. Mitsubishi

Lancer Car Lancer Car Pajero Jeep

1300 cc 1600 cc 1800 cc

13,00,000/15,50,000/42,00,000/-

Nissan

Sunny Car Lancer Car X-Trail Jeep

1300 cc 1600 cc 2500 cc

12,50,000/15,00,000/27,00,000/-

Toyota

Corolla Car Rias Car Rav 4 Jeep

1300 cc 1300 cc 1800 cc

15,00,000/17,00,000/31,00,000/-

Recondition Car

Suzuki Sales

Toyota

Corolla Car Corolla Car Prenmo Prenmo Year 1999 – 2000 2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005

1.3L(2000 Y) 1.5L(2001 Y) 1.5L(2002 Y) 1.5L(2004 Y) Sales Qty 7 9 20 50 53 42

11,50,000/14,00,000/15,50,000/17,50,000/-

Growth of Suzuki Car over last Five Year in Bangladesh

60 50 40 30 20 10 0

1999 – 2000

2000 – 2001

2001 – 2002

Projected sale in the year 2005-06 Model Suzuki Liana 1300 cc Car Suzuki Liana 1600 cc Car Suzuki Liana 1600 cc Car (New model) Suzuki Grand Vitara 2000 cc Jeep

2002 – 2003

2003 – 2004

2004 – 2005

Qty. 30 25 5 40 100A

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.

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. 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, official etc. Corporate Office.

Entrepreneurs, High

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. Selling sales promotion objectives : The objective are â&#x20AC;&#x201C; Increase short term sales. Help build long term market share Motivate customer to try new products. Attracting competitorâ&#x20AC;&#x2122;s customer. Increase sales of Suzuki Product. 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. 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 31 st of this month. But incase of Suzuki vehicle on it is not introduce. Point of purchase promotion : For 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. 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. 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. 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/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. 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 ct keting ective

Sele Mar Obj

fies ts &

Identi Threa

ct et

Oppor tunities ket

Sele Targ Mar

p ting gies

Develo Marke Strate

gn n

Desi Actio

Execu Plan

Plan

Measure Results & take action Strategy : Strategic planning â&#x20AC;&#x201C; 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. RECOMENDATION

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. CONCLUSION

As the day is passing the age is getting faster. People are getting busy day by day. â&#x20AC;&#x153;Time is moneyâ&#x20AC;? 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, Universityâ&#x20AC;&#x2122;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.

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