1.

0 Business Idea
The business plan is to manufacture air, oil, fuel and hydraulic filters for heavy transports
such as bus, truck etc. Filter is one the products that the heavy transports owners need to buy
very frequently. And thus we are going to make it easily accessible to them at much cheaper
rates. Currently, the filters are imported from India at much higher prices. Thus we will
manufacture and sell these filters at a much cheaper rate but of better quality. This business
will also get to create many jobs for the mechanical, chemical and electrical engineers of our
country. Considering the manufacturing process and the distribution, this untouched area has
the potential to make tons of money. As we will be producing in our domestic market, so we
wont need to pay extra tax for importing from abroad. Our target customers are the heavy
vehicle companies and the owners and we will make our products accessible to most of
the major cities of Bangladesh. We will promote our products through the automobile shops
and stores and the garages as well. We will stick to being the best filter manufacturer and
provider through our excellent customer service and also developing products and providing
those to our customers to satisfy them to full extent.
The entire heavy transport companies and individual owners are the customer.
We have huge market and demand for our product
Have skilled human resources available
The business is very profitable
Will provide better quality and lesser price

2.0 Market Analysis

Our buyers are the heavy transport companies, the owners and the people involved in the
vehicle maintenance section. We are also targeting the major cities in Bangladesh to sell our
products as shown below:

Market size is large. Currently, about eight to nine thousand filters are being imported and
sold every month and this tends to increase with the increasing number of heavy vehicles in
our country.

Based on the customers who are purchasing, our product happens to be a good fit,
considering our offerings and the customers needs. Thus we get to achieve butterflies and
true friends within our product launching by categorizing under Customer Relationship
Groups.

Customer Relationship
Groups

3.0 Marketing Aspects of the Business

Marketing Plan
Macro environment Analysis
Demographic- The population of Bangladesh is increasing in exponential rate along with the
number of heavy transports. The transport owners need to buy filters very often for their bus,
truck etc. And with the increasing number of vehicles, the demand for filters is also
increasing.
Economic- Bangladesh is investing on infrastructures and other development projects. For
that, heavy vehicles are always required for transporting goods and materials. Thus
companies are buying more and more heavy-vehicles and thus they also pay for the
maintenance cost of those vehicles.
Technological- Advanced up-to-date technology will be used to manufacture the filters.
Political- There are likely to be no political problem arising due to this business. It is a totally
politically unbiased idea. And more importantly political instability is least likely to hamper
the business of filters as transports are always going to run on roads.
Cultural- No cultural obstacles are likely to be faced by this business.

Value Proposition:
We will provide More Benefits for Less Price.

In working out the business, we will imply the Societal Marketing Concept. This
is because our product is going to meet the consumers wants, the consumers
long-run interests, societys long-run interests and the companys requirements. It
is able to meet all these through its unique selling proposition of good quality
product at low prices. Besides it would be made accessible easily.
The diagram below gives a vivid idea of the dimensions of the concept we will be
applying.

Competitors Analysis
The ones who will start the business after us, might import the product and
try to advertise with some extended USP.
Initially we are supposed to feel less threat in the market. This is mainly
because we are the only one to manufacture currently. In the initial stage we
are likely to be a monopoly. Still in order to ensure that we have a rigid
position in the market we will maintain a good relation with our customer,
will maintain a healthy relation with the workers and will maintain the
quality of the product and ensure that we can deliver better to our customers
expectations.

Marketing Mix

Product: Fuel, air, hydraulic and oil filters.

Price: Will be available at prices as low as Tk. 4000. This is because of the costeffective way they will produced.

Place: Will be available in every major cities of the country.

Promotion: There will be advertisements done in automobile stores, garages to
inform the target customers

Advertising
Our core target is to reach all the heavy transport owners/users and turn them into our fulltime loyal customers.
In order to do so, we will advertise and promote our products mainly in all the automobile
shops, garages and stores and also to the distributors via one-to-one marketing.

We will also advertise in TV channels to inform our target customers nationwide

about our products.

4.0 Factors that will Make the Business Feasible

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"We have marked a dynamic position in the market by providing the finest quality range of
Truck Air Filter. Features: Excellent filtration Supreme finish Elevated durability Other
details: Suitable to be fit in truck Widely demanded for air filtration purpose "

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5.0 Funding Mechanisms of the Business

We want to do equity business with the help from IDLC. We just dont want to leave them
after the first funding. Instead, in our form of business, we need regular flow of capital which
is only possible if IDLC extends their aid towards us. We want to nurture and extend our
business further and want IDLC to be with us in our successful journey.

6.0 Mitigation of the Key Risks of the Business

Risks associated with business
Since, we are the sole producer of filter funnels in Bangladesh, there is certainty that different
automobiles, garages will prefer our products at a reasonable price to that of those imported
from India. From that angle, it can be forecasted that our business will enjoy a smooth
running unless there is any severe competition of new producer of filter funnels in same
geographic area. It is unlikely that our business will face a situation when we would be
unable to repay the loan taken from IDLC. In other words, CREDIT RISKS might not arise.
Having said that, we cannot escape credit risk if our start-up is huge and if the benchmark set
by IDLC to repay the loan is to be fulfilled before our projected break-even point.
Assessment of credit risks: lenders/investors( here: IDLC ) basically look at the five C's: an
applicant's( us ) credit history, his capacity to repay, his capital, the loan's conditions and
associated collateral.
Till now, we have no such credit history. Our capacity to repay can be determined by the
scale of start-up cost and the rate of revenue generation compared to our projection.

Mitigation of Credit risks

Risk-based pricing Lender (IDLC) may charge a higher interest rate to

borrowers( us ) who are more likely to default, a practice called risk-based
pricing. Lenders consider factors relating to the loan such as loan
purpose , credit rating, and loan-to-value ratio and estimates the effect on yield
(credit spread).

Covenants IDLC may write stipulations on the borrower,

called covenants, into loan agreements, for which:

We have to periodically report its financial condition,

Refrain from paying dividends, repurchasing shares, borrowing further,

or other specific, voluntary actions that negatively affect the company's
financial position, and

We have to repay the loan in full, at the lender's request, in certain

events such as changes in the borrower's debt-to-equity ratio or interest
coverage ratio.

7.0 Key Rationales

IDLC will be funding the first ever heavy transport part manufacturers in Bangladesh. They
will get to promote themselves on a huge scale, locally for being the pioneer to contribute on
establishing such niche market.
It is very similar to CocaCola when Abdul Monem first brought it to Bangladesh. The ones
who financed then, has well-established their names and brands in the market and are
enjoying a smooth regular flow of income.