Skyler Motors Pvt Ltd.The World’s Super Economic Car

Khushiyon Ki Chabi

The People’s CAR

Vision and Mission Statements• VISION STATEMENT

The ONE lac car that drives ONE billion dreams

• MISSION STATEMENT

The World’s Super Economic Car

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.

• To Provide Cheapest car ever to middle class.

• Same Petrol emission as a Motor Bike.

• Being the first automobile industry of Pakistan.

“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

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.

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.

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.

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.

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.

• 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

Competitors AnalysisAT 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.

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.

• 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”.

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.

 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.

 

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.

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.

•  

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.

•  

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.

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.

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.

•  

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.

The Risk & Contingency PlanRisks 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.

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.

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.

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

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

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”

4P’sProduct• Skyler – 153000 (without AC , and other luxuries)• Skyler CX - 181000• Skyler LX – 209000

PLACE

Targeted Market• Middle class society of whole Pakistan

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

Price• Process costing• Operating expenses• Contingencies• Lowest Price

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

BENEFITS FOR EMPLOYEES

• Sick leave• Personal leave• Vacations and holidays• Medical insurance• Business Expense Reimbursement

FINANCIAL PLAN 

THE FINANCING• SKYLER are seeking to raise capital

through Equity and Debt.

details are as follows:• Rs. 4 Billion

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)

START-UP EXPENSES

Sales 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

ANY QUESTION?