Logistics Proposal

7/18/19
Logistic Proposal

Contents
About Maldives and Logistics Outlook ........................................................................................................ 2
Our Proposition ............................................................................................................................................ 2
Our Target Market........................................................................................................................................ 2
Our Competitive Advantage ........................................................................................................................ 3
Keys to Success ............................................................................................................................................. 3
Marketing Strategy and Sales Strategy ....................................................................................................... 3
Cash Flow ...................................................................................................................................................... 4

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Logistic Proposal

About Maldives and Logistics Outlook

The Maldives consist of an archipelago of 1190 islands spread across 820km (in length) and 130 km (in
width), set in a territorial area of 859,000 sq. km. of the Indian Ocean. The total landmass of the Maldives
is approximately 300 square kilometres. Out of the 1190 islands, 193 are inhabited and close to 100 islands
have been developed as tourist resorts.

The most economic mode of transport between the islands has proven to be diesel powered local vessels
– or simply Dhoni.

The prospects for the logistics sector remains favourable as the imports to the country has registered
steady growth. The increase in imports is due to the increase in new resort developments and
construction projects across the country. On average, Velana International Airport alone imports
approximately 50,000 metric tons of cargo each year. Total imports valued at MVR 45.5 billion in 2018
and 2018 registered around 24% growth in imports.

Over 90% of these cargo are moved between the islands using traditional Dhoni. There are not many
efficient and reliable logistics providers in the Maldives for the last mile logics.

Our Proposition
Our aim is to provide last mile logistics between the islands using an 80-feet Dhoani especially crafted for
logistics. We aim to stay ahead of our competitors’ offering similar logistics services by combining our
experience, service quality, and technology; this allows us to provide logistics services that offer a high
degree of reliability while remaining cost-effective.

Our Target Market

Our target market consist of businesses and individuals who has bulk cargo to deliver to any part of the
country; basically anyone who has cause to move goods from one island to another. In other words, our
target market is the whole of the Maldives.

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Logistic Proposal

Our Competitive Advantage

Although, the logistics services industry requires some form of expertise, but that does not in any way
stop any serious minded entrepreneur to start the business and still make good profit out of this
business. We are launching a standard logistics services business that will indeed become the preferred
choice of every customer.

The business model we will be operating on, ease of payment, wide range of services and our excellent
customer service culture will definitely count as a competitive advantage. Our main competitive
advantage will be our expertise and experience combined with modern technology to inform the
customer of the whereabouts of their goods as it transits.

Keys to Success
The keys to success in a logistics business are:

1. Strong communication between client and us

2. Setting real delivery schedules that can be met
3. Hiring and maintaining reliable employees especially vessel captains
4. Understanding what clients are trying to achieve and building long term relationships with them

Marketing Strategy and Sales Strategy

The marketing strategy adopted by us is to be driven basically by professionalism, excellent customer
service, honesty and quality service delivery. We will ensure that we build a loyal customer base. We
want to drive sales via the output of our jobs and via referral from our satisfied customers. We are quite
aware of how satisfied customers drive business growth.

We are set to make use of the following marketing and sales strategies to attract clients:

1. Introduce our freight packaging and logistics services business by sending introductory letters
alongside our brochure to corporate organizations
2. Print out fliers and business cards and strategically drop them in offices
3. Use friends and family to spread word about our business on social media

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Logistic Proposal

4. Placing advertisements in the newspapers about the services we offer

5. Advertise our business in relevant magazines, newspapers, TV stations, and radio station.
6. Attend relevant expos, seminars, and business fairs to market our services
7. Join local chambers of commerce and industry to market our services.
8. Place adverts on both print (newspapers and magazines) and electronic media platforms
9. Sponsor relevant community based events / programs
10. Leverage on the internet and social media platforms like; Instagram, Facebook , twitter,
YouTube, Google + et al to promote our services
11. Cold calling - contact corporate organizations a by calling them up and informing them of the
services we offer
12. List our company in local directories / yellow pages
13. Advertise our company in our official website and employ strategies that will help us pull traffic
to the site.

Cash Flow
The cost of a typical Dhoni is MVR 2,000,000 and we plan to invest ad equity of MVR 500,000 while the
rest will be financed by the bank. Average monthly revenues is expected to be MVR 250,000 while profit
before tax from second month onwards is expected to be MVR 150,500. MVR1.2 million cash flow will
be realised at the of the 12-month period. Detailed cash flow statement is attached.

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