Table of Contents

Executive summary ....................................................................................................................................... 3

Mission .......................................................................................................................................................... 3
Objectives ..................................................................................................................................................... 3
PBC Summary ................................................................................................................................................ 4
Ownership ..................................................................................................................................................... 4
Start-up summary ......................................................................................................................................... 4
Start-up Funding ........................................................................................................................................... 5
Products ........................................................................................................................................................ 6
Protective clothing and safety gear .......................................................................................................... 6
Armoured Gloves .................................................................................................................................. 6
Winter/insulated gloves ....................................................................................................................... 6
Full-body armour .................................................................................................................................. 7
Waterproof riding pants ....................................................................................................................... 7
Elbow guard .......................................................................................................................................... 8
Knee guard ............................................................................................................................................ 8
Spine/back guard .................................................................................................................................. 9
Helmets ................................................................................................................................................. 9
Motorbike disk locks ............................................................................................................................... 10
Stickers (for promotion) .......................................................................................................................... 10
Services ....................................................................................................................................................... 11
Complaints against manufacturers ......................................................................................................... 11
Detailed comparison of motorbikes ....................................................................................................... 12
Market analysis ........................................................................................................................................... 13
Competition ............................................................................................................................................ 13
Market segmentation ............................................................................................................................. 13
Marketing strategy.................................................................................................................................. 14
Sales ............................................................................................................................................................ 15
Strategy ................................................................................................................................................... 15
Forecast................................................................................................................................................... 16

Finance ........................................................................................................................................................ 17
Short term ............................................................................................................................................... 17
Long run .................................................................................................................................................. 17
Breakeven Analysis ................................................................................................................................. 17
Recent achievements .................................................................................................................................. 18
Signing of MOU with SMILE. ................................................................................................................... 18
Honda Atlas factory visit ......................................................................................................................... 19
Metro car and bike show ........................................................................................................................ 19
PBC annual mega meet 2012 .................................................................................................................. 20

Executive summary
Pakistan Bikers Club (PBC) will offer quality safety gear and motorcycle accessories to a growing market
of motorcycling hobbyists. For beginners, PBC offers a platform for learning safe riding techniques as
well as all the basic riding gear. For the experienced biker, the advanced biking gear like full body
armour jackets will provide greater safety. PBC will also assist in motorcyclists register their complaints
against the two Japanese motorbike manufacturers in Pakistan, namely, Atlas Honda and Pak Suzuki.
Over the past ten years, biking has developed an entirely new customer base among the youth of
Pakistan, ages 22 to 32. Last year, motorcycle sales for this age group made up almost 80% of
motorbike sales. There have been a big boom in the sales of motorcycles in Pakistan in the recent years.
In Lahore alone the motorcycle sales exceeded 18,350 units in December 2012 and sales are predicted
to grow by 35% this year.
Lahore is a city of more than 10 million residents and has more than 116 different motorcycle dealers
operation in it. Of these the largest three (by sales volume) are; Atlas Honda, Road Price and Metro.
There has been a growing demand in the market for motorcycles and there are more on Lahore roads
than all other vehicles combines. Despite of this fact, two wheelers industry is largely ignored in terms of
basic education (on riding a bike) and proper safety gear. PBC will cater to the demand of motorcycling
gears and equipment.
My main source for motorcycle sales figures was Mobile Magazine (http://mobileworld.com.pk/)

Mission
It is PBC mission to provide quality motorbike equipment and safety gear at a reasonable price. The
most important thing to remember is that every customer must be satisfied with our services.

Objectives

Establish a medium direct communication with dealers and motorcycle owners

Ensure that the customer's needs are met and maintain a 90% customer retention ratio.
Reach profitability by year two.

PBC Summary
We started initial work beginning in 2010. The aim was to cater to the mostly ignored motorbiking
market in Lahore. We planned to provide products and services that are available to bikers
internationally. Our plan was to source these products from Sialkot where they are being made on order
for export only. The initial financing was done by the founding members.

Ownership
The founding four members, Zahid Malik, Talal Malik, Imran Bhatti and Foad Ahmed, will retain the
ownership and divide the profits equally among themselves.

Start-up summary
In the beginning we realized that the 2 wheeler industry in Pakistan works mostly via grapevines and
networking. So we started working towards establishing a network of contacts which would ideally
include:

Retailers
Manufacturers
Biking enthusiast
Everyday bikers (commuters)
Established names in motorbiking in Pakistan

We started arranging for various GTGs (get togethers) for bikers with the aim to interact and build a
network for our products. To keep our products a bit separate from the club, we branded them as PBC
MotorSports.
Initially all costs were covered equally by the 4 founding members. We decided against charging fee for
our club GTGs as to attract maximum number of interest and participants. We did however started
charging rs.150 our members. This fee was one-off and covered the cost of providing an ID card to the
member.

Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

PKR 9,500.00
PKR 60,500.00
PKR 70,000.00

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

PKR 5,000.00
PKR 55,500.00
PKR 0.00
PKR 55,500.00
PKR 60,500.00

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

PKR 0.00
PKR 0.00
PKR 0.00
PKR 0.00
PKR 0.00

Capital
Planned Investment
Founding member 1
Founding member 2
Founding member 3
Founding member 4
Additional Investment Requirement
Total Planned Investment

PKR 15,000.00
PKR 15,000.00
PKR 15,000.00
PKR 15,000.00
PKR 0.00
PKR 70,000.00

Loss at Start-up (Start-up Expenses)

-PKR 9,500.00

Total Capital

PKR 60,500.00

Total Capital and Liabilities

PKR 60,500.00

Total Funding

PKR 70,000.00

Products
PBC offers many products. Below is the current portfolio. They source all their products from Sialkot,
Pakistan. We plan to set up our own production unit once we have enough sales to justify such a large
investment

Protective clothing and safety gear

Armoured Gloves

Winter/insulated gloves

Full-body armour

Waterproof riding pants

Elbow guard

Knee guard

Spine/back guard

Helmets
PBC is selling Avex branded helmets in partnership with Matkhdoon Autos (They are Atlas Hondas
oldest retailers in Pakistan. They have been with Honda since 1975 and then with Atlas Honda).

Motorbike disk locks

Stickers (for promotion)

We do not charge for these stickers and they are given out at GTGs for promotion of the club. However,
at
time
we
have
had
charged
for
these
stickers.

Services
Complaints against manufacturers
In Pakistan, the concept of after sales is literally non-existent when it comes to motorbikes. And those
few manufacturers who claim to offer after sales service, like Pak Suzuki and Atlas Honda, are actually
running a sham. They hardly ever honour their warranties. PBC provides a platform for bikers to register
their complaints. We then write to the respective manufacturer about the issue and send a copy to their
parent company. Like in case of Pak Suzuki, one of our members had a problem with his new Suzuki
GS150 motorcycle. The frame was found to be bent and Pak Suzuki were making excuses for
replacement. They wanted to ride out the warranty period and then charge the customer. So we wrote
a letter to them and forwarded the same to Suzuki Japan. Within 2 weeks we have had a call from Pak
Suzuki head office in Karachi and the matter was finally resolved.

Detailed

comparison

of

motorbikes

We also offer comparisons between various bikes. Below is a sample of one of our comparisons relating
to the 100cc motorbike category in Pakistan.

Market analysis
Competition
At the moment there are no other safety gear sellers in Pakistan. Usually riders buy gloves (not proper
riding gloves) from Anarkali, Lahore. There are also a few higher cc bike importers in Lahore who stock
such safety gear. But the price of these items is comparatively quite high as they have to include cost of
freight and 49% import duty.
PBC, on the other hand, sources its products from a small group of manufacturers in Sialkot, Pakistan.
These manufacturers only produce on orders from other countries. We aim to show these
manufacturers that there is demand for such products within Pakistan.

Market segmentation

Retailers It was important to target these are they are the front-men representing the company,
whose products they sell, and are also the people whom the average bikers get in contact with
when he wants to buy a bike. So they were the people we contacted in order to facilitate discounts
for
our
club
ID
card
holders.

Manufacturers We were surprised to learn that over 200 bike manufacturers operate in Pakistan,
116 in Lahore alone. It is important to get in touch directly with the manufacturers as retailers are
often reluctant to pass on quality claims to the manufacturer. It is important to learn about their
strategies and also convey the message of the average biker in Pakistan.

Biking enthusiast These are the people who ride motorbike by choice (in contrast to by need).
They can afford to buy a car but instead they prefer riding on 2 wheels. Usually they do interesting
short and long tours. If we can get them to use our product like body armour during their trips it
will largely help in gaining publicity and also generate a, hopefully, positive word of mouth
feedback.

Everyday bikers (commuters) These are our target market as they ride to and fro work. They
make the largest segment of bikers in Pakistan. We need to educate them the need for safety gears
and
proper
motorbiking
equipment.

Established names in motorbiking in Pakistan There are bikers in Pakistan who have done a lot to
promote biking, two prominent names of todays generation are Farid Dogar (owner of Will Bikes in
Lahore) and Muhammad Iqbal Ghangla (from Multan who has covered all of Pakistan in just 29
days).

Marketing strategy

Advertising with retailers PBC is actively meeting with motorbike retailers in Lahore in order to let
them know of our products and services. Some are now even displaying our products at their shops.

GTGs Get together are the best way to meet riders informally and tell them about PBC. This is
where we also generate and update our mailing list. It also gives bikers a chance to learn from those
who
are
more
experienced.

Exhibitions The most recent exhibition attended by PBC was at Johar Town where we got to
showcase
our
safety
gears.

Motorcycle and car shows PBC has attended various car and bike shows like the one held last
month at Metro, Thokar, Lahore. In such events we also get good media coverage.

Newsletters We send out a monthly newsletter to all those in our mailing list. Telling them about
whats happening in the motorbiking industry and about our upcoming activities and products.

Website It is very important to have a website as it makes it easy for everyone to contact you and
also see what you offer. Website can also be a source of income through online advertising. But for
that we would require a lot more active users, which will hopefully come in the future

Social media A social media presence on facebook and twitter are a must for every small and big
company. The trend has been going around the world for a while and has recently also become
popular in Pakistan.

Magazine deal PBC has struck a deal with Mobile World. The deal is such that PBC must sell a
certain number of copies to their members and in return we get an exclusive page every month.

Rallies Once in 3 months we organize rallies with various groups like Punjab Traffic Police and
Metro motorcycles. The aim of these rallies is to highlight the importance of safe riding. By the way,
did you know that the speed limit throughout canal road is just 60km/h?!!

Donate a helmet campaign This is one of PBCs oldest campaign. At our GTGs we always ask our
members to donate helmets that they do not use. Then when we have enough helmets (at the
moment we have decided to have at least 30 helmets) with help of Punjab Traffic Police, riders who
are not wearing helmets are stopped but instead of a challan they receive a free helmet.

Sales
Strategy
The sales strategy that PBC is to develop an awareness of safe riding in the biking community. We will
target our the segment of market as per mentioned above 9i.e. retailers, manufacturers etc). We plan
to develop a website exclusively for our products by name www.pbcmotorsport.com .

Forecast
PBC believes that they can grow immensely in the future as the result of increased safety awareness
among bikers in Pakistan. And also, we do not have any direct rivals.

Sales Forecast

Sales
Online advert revenue
Total Sales
Direct Cost of Sales
Administrative costs
Online webiste
Total

Year 2013

Year 2014

Year 2015

PKR 250,000.00
PKR 0.00
PKR 250,000.00

PKR 290,000.00
PKR 0.00
PKR 290,000.00

PKR 340,000.00
PKR 12,000.00
PKR 352,000.00

PKR 50,000.00
PKR 5,000.00
PKR 55,000.00

PKR 75,000.00
PKR 5,000.00
PKR 80,000.00

PKR 90,000.00
PKR 5,000.00
PKR 95,000.00

400,000
350,000
300,000
250,000

Sales
Online ad sale

200,000

Admin cost
150,000

Website

100,000
50,000
0
2013

2014

2015

Finance
Short term
PBC plans to finance its own activities in the short run as it has not generated enough revenue yet in
order to justify external finance options.

Long run
In the long run PBC aims to manufacture its own safety gear and for this we would require a hefty bank
loan of around PKR 2,500,000. We would also need to have established a strong relationship with the
retailers so that we have confirm number of orders per month.

Breakeven Analysis
400000
350000
300000
250000
Sale

200000

Cost
150000
100000
50000
0
2013

2014

2015

Recent achievements
Signing of MOU with SMILE.

Honda Atlas factory visit

Metro car and bike show

PBC annual mega meet 2012

PBC sponsored trips