Skyler Motors Pvt Ltd plans to introduce an affordable electric car called Skyler that costs Rs. 100,000. The car will be fuel efficient at 26 km/liter and meet emission standards. It will be smaller in size with cost-cutting features like manual windows and no airbags to achieve its low price point. Skyler aims to target middle-income families and provide an alternative to scooters. It will be manufactured in Pakistan and have 3 variants priced from Rs. 150,000 to Rs. 210,000. Skyler expects to become profitable in its first 3 years of operation through strong marketing and securing financing options for customers.
3. Vision and Mission Statements
• VISION STATEMENT
The ONE lac car that drives ONE billion
dreams
• MISSION STATEMENT
The World’s Super Economic Car
4. Organizational structure of OP
• The management team for Skyler will be a
diverse group with strong skills in
technology, marketing and sales, finance
and operations. Our primary criteria when
filling these executive positions will be
extraordinary past achievement.
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11. • To Provide Cheapest car ever to
middle class.
• Same Petrol emission as a Motor
Bike.
• Being the first automobile
industry of Pakistan.
12. “I saw families riding around on scooters with kids
standing up and the mother carrying a baby and
sitting pillion and decided to do something about it.
It started as a quest for an affordable transportation
solution”
Idea
Generation
13. Dimensions:
• 3.1 metres (10.23 feet) long, 1.5 metres wide and 1.6 metres high.
Engine:
• A two cylinder 623 cc, 35 horsepower rear mounted, allaluminium,
multi-point fuel injection petrol engine can power the car to top
speeds of 105 kilometres per hour .
Fuel Efficiency:
• 26 kilometres per litre.
Pollution:
• Exceeds Pakistan regulatory requirements and can meet strict Euro
IV emission standards. In terms of overall pollutants, Shuja says
the car is better than two-wheelers manufactured in Pakistan
currently.
Safety:
• Car exceeds current regulatory requirements with a
strong passenger compartment, crumple zones, intrusion resistant
doors, seat belts, strong seats and anchorage.
14. What makes Skyler so cheap?
• Basically, by making things smaller,
lighter, do away with superficial parts
and change the materials wherever
possible without compromising the safety
and environmental compliance. It is said
that Skyler has better millage than
Toyota Prius and same gas emission as
a scooter.
15. How it can be so cheap
• The car has achieved its low price by
minimizing cost on unnecessary ‘luxuries’,
the basic Skyler comes without front and rear
fog lights, without a heater or air conditioning,
without anti-lock brakes, only one single
windscreen wiper, manually operated
windows, manual steering with no air bags,
tiny 12” wheels, plastic body parts joined with
adhesive instead of more conventional metal
and welding.
16. Skyler will be manufactured
• Skyler will be manufactured totally in Pakistan. It will
be assembled in its two factories at Jehlum and at
Abotobadd and, also, a mother plant has been proposed
for Islamabad
• Regarding the distribution of the car, we have called it
"open distribution" innovation because it mobilizes large
numbers of third parties to reach remote rural
consumers, tailor the products and services to more
effectively serve their needs, and add value to the core
product or service through ancillary services.
17. There will be three types of
Skyler car available
• Skyler - 153000
• Skyler CX - 181000
• Skyler LX – 209000
• Our financial projection for Year 1 is a net
profit after taxes of 15 Billion .
• It is estimated that gross profit for the
second year would yield 18 Billion
• And the third year 23 Million.
18. • The car is very fuel efficient, achieving around
26 kilometers per liter on the highway and
around 22 kilometers per liter in the city.
• The car has a price tag of just Rs 1 lakh the
same price as the DVD player in a Lexus.
• Hence making it easily affordable for a middle
class family. Skyler is a dream come true for
an average Pakistani. Now the medium class
people can also have and enjoy the ride of four
wheeler.
Considering Middle class
19. Competitors Analysis
AT NATIONAL LEVEL
• The closest competitor of the upcoming "Skyler Car" is
Mehran which is 4 times of its price. Suzuki is aware
of the gap and is working arduously to improve its
current care lineup. It will focus on achieving the
practicality and efficiency of Skyler without compromising
on safety and quality. However, Mehran Suzuki is not
in a position to reduce the price of Mehran just for
the sake of competing with Skyler.
AT INTERNATIONAL LEVEL
• Honda and Toyota made hybrid cars but these are
categorized in luxuries . Like toyota Prius.
20. The Marketing Strategy
• The People’s car:
• Well before the car will be launch, SKYLER will be already with the people
of Pakistan by its logo called “the people’s car”. This is how it will start, the
advertisement for the people of Pakistan
• A question will be raised everywhere: Can one buy a car with 1-lakh
rupees, yes we can in couple of months. This advertisement will make a
huge impression on the automobile market.
• Almost whole middle class of Pakistan will start dreaming of their own car.
• This should be considered in the view that in Pakistan, the average car
price was 6 to 7 times greater than what Skyler offered. Also the fact
that rupees 100 K was affordable compared to 600 K or 700 K rupees.
• This soon became a discussion point in Pakistan. So instead of
providing the advertisement at the launch of new idea or product,
skyler was the lucky to get the free publicity.
21. • As stated above, once it became “the discussion point”
in a country of population of 20 crores, SKYLER has no
worries of marketing for some time. The TV channels,
the automobile industry experts, the investors, the
people … who not; every one discussing “Is it really
possible”. This first advertisement will be a huge
success, and it perhaps will decrease the marketing
cost of Skyler. In fact, people will start asking the
question, “when can we buy the car”.
• The buzz in the market, “Skyler” Auto Exposition 2020
.The first introduction of the skyler with the public will be
in the auto exposition in 2020 in home country in
Islamabad. There will be discussion in the market
that, “Is it really possible”. The situation will be turn
out, “Yes, it is possible”.
22. Key Benefits to the Customers
AFFORDABLE
• Skyler is priced around 1 Lakh rupees .This price tag is almost 6
times lesser the price of the current cheapest car in Pakistan ,
Mehran Suzuki , which is priced around 7 Lakhs. Skyler is ideal for
two-wheeler owners looking forward to switch to 4 wheelers. Its
also suitable for women, who would find driving a car safer than
driving a scooter or using a cab rickshaw or local transport.
FUEL EFFICIENT
• Skyler has a mileage of 26km/ liter .This makes Skyler a fuel
efficient vehicle, which will save money in the long-term. This
mileage comes with a powerful engine of 623 cc with a maximum
speed of 105 Kilometers per hour.
23. ENVIRONEMENT FRIENDLY
• If you think Skyler would increase pollution, think
again. Skyler emits less carbon than two-wheelers. It
also meets emission norms of BS II, III, IV which are
Euro II, II, IV equivalent.
RELAIBLE AS COMPARED TO OTHER TRANSPORT
WAYS
• Skyler is much better than most of the other transport
ways. In comparison to taxis in Pakistan it is much
cheaper and good at looks. In comparison to
rickshaw it is comfortable. It's also better with
environment and speed if we compare to rickshaw. It's
also cheaper in comparison to rickshaw. Saves lot of
energy which with taxis and rickshaws is completely
wasted. Incomparison to rickshaw at least SKYLER will
protect in rains.
24. Booking On The web
• Considering the needs of the 21st century, the website
will be launch in the beginning. The website will be
quite comprehensive , it will provide all the answers
to the questions being asked .The marketing team will
also put a good effort to keep the website simple and
easy to use and understand, it was really a vital
requirement considering the intended users / buyers of
the product.
• Every one can find the skyler on facebook, and twitter.
• Buyer will have to fill one single form. The lucky
buyers will chosen by a random draw, so SKYLER
will be popular.
25. Bank Financing
• SKYLER will keep its promise of “people’s car” by providing
bank car financing. Despite the fact that SKYLER will have more
customers than the production line can produce in next few years,
SKYLER decided to make the way for the people who can’t afford to
pay the price with the booking of the car. The 15 major banks
including the state bank of Pakistan will be signed with the
SKYLER to finance the low income people. Then how much one
has to pay for booking a car, its beyond your imagination …
hold your seat, its 20000 Pakistani Rupees …. Not kidding. Now
how does this come into the marketing strategy of the SKYLER, in
fact SKYLER will close the doors for any competitor by not
letting go any one in the Pakistan who dreams of a personal car
and can’t get it. The customer loyalty is to grow with such moves,
specially when SKYLER has so many buyers at the moment.
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26. Key Marketing Features
• The low maintenance makes SKYLER an automatic choice for the ones
who even normally travel on motorcycles.
• The small size of the car gives a big advantage of parking in the urban
Pakistan, where its getting hard to find the places round the clock.
• SKYLER is not only cheap, its so cheap when it comes to the fuel
consumption. The fuel consumption is far better than the 1000 cc cars
which are normally used by the low income Pakistani.
• The SKYLER is environmental friendly as well, and fulfills all the
requirements of the international and national laws.
• The Cheapest is the tag that one can’t take from SKYLER for few
coming years.
• The stylish, the car doesn’t look like a rickshaw (a local transport), its not
that far away from the stylish 100 times expensive cars.
• The wide color range provides the choice a colorful Pakistan needs,
without this forget about selling much.
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27. Warranty
• SKYLER will be providing a 18 months Or 24 K Kilometers
warranty.
The SKYLER brand
• Skyler will itself become a brand , and one can find the skyler
phone, skyler watch. The products are available on and offline.
These products have of course added to the popularization of
already well known Skyler.
The future
• Skyler will not be limited to Pakistan, the international marketing will
be focus in future.
The advertisements
• For Malaysia are already underway and an early launch is expected
while the SKYLER Europa launch is expected in 2025.
28. The Manufacturing Plan
• Development began in: 2015
• Scheduled to roll out in: 2020
• To achieve its design goals, Skyler will refine
the manufacturing process, emphasized
innovation and sought new design
approaches from suppliers. Many components
of the Skyler will be make in Germany by Bosch,
such as Fuel Injection, brake system, Value
Motronic ECU, ABS and other technologies.
29. Cost cutting features
• It has a single windscreen wiper instead of the usual
pair.
• It has no power steering. It has no ABS.
• In Base model it has three lug nuts on the wheels
instead of four.
• It has 12" wheels.
• Plastic body parts joined with glue rather than welding.
• A two-cylinder 623 c.c. engine.
• Skyler initially target the vehicle as "the least expensive
production car in the world"— aiming for a starting price
of 100,000 rupees or approximately despite rapidly rising
material prices at the time.
•
30. Skyler faced the choice of
• Introducing the car with an artificially low
price through government subsidies and
taxbreaks.
• forgoing profit on the car.
• using vertical-integration to artificially boost
profits on cars at the expense of their materials
industries.
• Partially using inexpensive polymers or
biodegradable plastics instead of a full metal
body raising the price of the car.
31. The Risk & Contingency Plan
Risks Exposure:
• Low impact on the market resulting in slow sales and less than expected cash flow
• Unexpected and excessive cost increase compared to the forecasted sales
• Fluctuations and industry overcapacity
• Overly aggressive and debilitating actions by competitors (effort of
depreciation)
• Work stoppages and other interruptions of supply at SKYLER Motors Ltd. or
any key suppliers
• The discovery of defects in vehicles resulting in delays of new models and recall
campaigns
• A credit rating downgrade
• The increased cost of fuel
• Changes in economic conditions
• Labor strikes or work stoppages
• Changes in laws, regulations or tax rates
• The ability of the company to achieve reductions of cost and employment levels.
32. Contingency solutions
• The Company has a comprehensive system
of control, focused on mitigation of risks to
ensure achievement of objectives. The risks
are assessed on an ongoing basis and controls
are designed to respond to risk throughout the
Company.
• Assets’ liquidation to cover liabilities
• The product cannot support itself on ongoing
basis.
33. KEYS TO SUCCESS
• No competitor of such price and product.
• 50-60% of middle class population is focused.
• Treating necessary as necessary instead of
luxury to be available for the use by everyone.
34. SWOT ANALYSIS
STRENGTHS
• Lowest Tag price of 1 lac and lowest consumption
of 26 km.
• No competitor of such product.
• Focusing the middle class instead of elite class.
WEAKNESSES
• Demand in bulk
35. SWOT ANALYSIS
Opportunities
• Product specifically made for 2 wheelers and
women and students.
• Forigen companies are enjoying high profit of 500%
to 600& and we will just 10% to 30%..
Threats
• Increasing costs/standstill funding
• Competition from well-known operating companies
36. MARKETING STRATEGY
“Your culture is your brand”
(TONY HSIEH)
• Initially spent 60 percent of our revenue in
marketing as Jim Rohn said:
“Initial businesses should spent 90% of their
capital on marketing and 10 percent on
product”
37. 4P’s
Product
• Skyler – 153000 (without AC , and other luxuries)
• Skyler CX - 181000
• Skyler LX – 209000
39. PROMOTION
• Internet and Online Promotion
• Website: skyler.com.pk
• Company profile available for viewing
• Online
• Car Expo
• Sponsors
• Clients (by words of mouth)
• Face book Page
• Advertisement
• TV , Radio
41. HR PLAN OF SKYLER
• The work involved in planning, organizing and
conducting a major event can be sufficiently
great to require the recruitment of a large team
of people.
• Chief Engineer • HR Manager
• CFO • Sales Manager
• COO • Marketing Manager
• Production Manager • IT Manager
42. BENEFITS FOR EMPLOYEES
• Sick leave
• Personal leave
• Vacations and holidays
• Medical insurance
• Business Expense Reimbursement
43. FINANCIAL PLAN
THE FINANCING
• SKYLER are seeking to raise capital
through Equity and Debt.
details are as follows:
• Rs. 4 Billion
44. Start-up Funding
• Start-up Funding
• Total Funding Required
Rs.1 Billion
• Assets
• Cash Requirements from Start-up
Rs. 700 million
• Additional Cash Raised
0
• Cash Balance on Starting Date
Rs.700 million(before
payments)
45. START-UP EXPENSESSales and marketing 2,448,000,000.00
Payroll and payroll taxes 306,000,000.00
Depreciation 350,000,000.00
Insurance 4,000,000.00
Maintenance, repair, and
overhaul 75,000,000.00
Utilities 3,000,000.00
Property taxes 1,500,000.00
Administrative fees 1,800,000.00
Other
Total operating expenses 3,189,300,000.00