New service development
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This document proposes a business plan for "Best Choice", an organized retailer of second-hand motorcycles that aims to build trust and provide value. Key aspects of the plan include establishing stores in Bhopal and Indore that offer a variety of second-hand bike models at reasonable prices along with warranty, maintenance, and financing options. An initial investment of 150 lakhs rupees is required across multiple stores and inventory to launch the service. Financial projections outline an approach to reinvest profits into expanding operations over time.
New service development
- 1. Unique Service Development“Best Choice”A complete shop from serving till servicingPresented By:MohitMalviyaKunalAssudaniAniketBushal
- 2. Service ConceptPeople don’t trust on unorganised players who sell bikesUnorganised players don’t provide any add ons to customersHere it is necessary to build the trustBest Choice is a showroom for those people who want to purchase second hand bikesIt is an organised format for second hand bikesIt is a platform for those who want a good bike at reasonable prices
- 3. Need for Such a ServiceTrustOrganised formatWarrantyAfter sales serviceReasonable priceVariety of modelsProper maintenance Relationship building
- 4. Market PotentialThe biggest disadvantage is it is unorganisedEveryone is in a need to purchase a bike Young generation keeps on changing their vehiclesThere are youngsters who want to purchase bikes till their course ends and then sells itModification for second hand bikes Per capita incomes are risingPassion for bikes are increasing day-by-day
- 5. Service PackageFree first serviceTie-up with banks for finance/insuranceComplimentary 3 months warrantyAvailability of spare partsAnnual checkupTips for proper maintenanceService packages: Like 3 services for Rs 300Washing on half rates as compared to other service stationsMembership Cards (Discounts and other offers)
- 6. Core BenefitsFaithReasonable priceOne stop solution for second hand vehiclesRelationship building in the form of warranty, quality and response etc.TransparencyValue for moneyAfter purchasing, people can sell also that model at Best Choice
- 7. Facilitating & Enhancing componentsGlass doar strategy (ambience)Second hand Bikes as good as new bikesProper polished and maintainedProper “best choice” uniform staff and trained toocomplimentary warranty and serviceExtra addons to purchase-Helmet,gluffs,jacket,keyring,graphics,number plate as per choice.
- 8. Marketing MixPriceProduct Two wheelerAfter sales service Different segments, different models, different prices
- 9. Place BhopalIndore Promotion WOMHoardingTVC’s in local channelLocal newspaperRadio
- 10. Process/ Blue PrintingSecond hand purchasingTie up with dealersPurchasing in bulk from unorganized playersDoing the quality checksMaking the vehicle completely freshThen displaying it for sale.At the time of sale, we will also provide the facility of finance, insurance etc.After sale , We will also provide servicing facility and spare parts.
- 11. No of outlets- Bhopal-2Indore-2Financial RequirementHall on rent – Bhopal - 3000 sq.ft/4500 sq.ft- Rs.1,50,000Indore – 3000 sq.ft/4500 sq ft – Rs. 2,10,000 Advance – 3 months rent/ payment as decidedSo, Average – Bhopal - 6 lakhsIndore – 8 lakhs
- 12. Initial investment on bikes – 15 lakhs5 units each of popular bikes – karizma,pulsar, splendour, tvs star city etc3 units each of less popular bikesGlamour, flame,BYK etc2 units each of expensive bikesYamaha R-1-5,Ninja,Royal Enfield- thunderbird etc
- 13. Investments on other facilitating components – 15 lakhsConstructionEquipments for servicing StaffFurniturePromotionTotal Initial finance required - Bhopal – 36 lakhs *2 = 72 lakhsIndore – 38 lakhs * 2 = 76 lakhs __________ 150 lakhs(approx)
- 14. Costing and Pricing will vary on each unitProfit marginPricing – costing = Average 15% (initial stages)Quality & Performance benchmarkComplete quality checks before purchasing and then we will sell.Free 3 months warrantyExtended warranty/insurance service period will also be provided.
- 15. Average Sales for 2 months that is 40 bikes (17.25 lakhs covered) Reinvestment for 70 bikes procurement: 25 lakhs Average sales period 1 month Profit margin 20% (22.25 lakhs covered) Investment for 100 bikes: 35 lakhs (29.25 lakhs covered) Investment for 150 bikes: 53 lakhs (Whole 36 lakhs covered plus 1.85/1.25 lakhs of profit)
- 16. LAUNCH PLANBhopal/Indore – 2 storesOne store in busy city area among the competetiors and one would be in vast area, so that market peneteration could be effective.The store which we will open in vast outskirt area would be huge, so that more vehicles can be stocked and displayed.Campaigning- 10 days before store launchPromotion will start 1 month before & will run parallely.
- 17. Thanx…