Walton products hold a posh volume of share in local and international market by

ensuring the best quality with world class features. Walton products has obtained
millions of praise and trust from the people of India, Nepal, Bhutan, Myanmar, United
Arab Emirates, Kuwait, Qatar, Jordan, Iraq, Sudan, Nigeria and many more countries in
the world. Nevertheless, Walton is taking preparation to enter other international
markets like Australia, Europe, USA, South Africa, Singapore, Poland, Romania, Saudi
Arabia, Sri Lanka, Ethiopia, Ghana and CIS Countries in upcoming years.

January 17, 2014

Export Opportuity of Walton

Motorcycle in Kenya from
Bangladesh
Exporting Walton Motorbikes in Kenya
Kenya officially the Republic of Kenya, is a sovereign state in the African
Great Lakes region of Southeast Africa. Its capital and largest city is Nairobi.
Kenya lies on the equator with the Indian Ocean to the south-east, Tanzania
to the south, Uganda to the west, South Sudan to the north-west, Ethiopia to
the north and Somalia to the north-east. Kenya covers 581,309 km2
(224,445 sq mi) and has a population of about 44 million in July 2012.The
country is named after Mount Kenya, the second highest mountain in Africa.
The product we are planning to export is Walton motorcycle. After doing the
research about the Country of Kenya we realized that their transportation
system is not so good especially in Private sector. As the most of the people
in that country live below overtly line, they cannot afford very expensive car.
So we have decided to export motor bike for them. We selected Kenya to
enter because of the huge market demand. Competition is to that much
compared to the other countries because most of the companies are get
developed market whereas the Kenya market is just developing not
enveloped.

We have selected some of the model of motorbike that we will export to

Kenya. Their classifications and features are described below:
Walton motorcycle produced with modern innovative technology, elegant
shape & design with different models of 80cc to 140cc motorcycle
maintaining international standard quality as per requirements of its
customers of different countries or regions. Walton motorcycle has security
control system with voice alarm. Walton Motorcycle as introduced some
special specifications like as mobile phone indicator, Digital ear display, Fuel
location meter, Air shock absorber, Remote control, Hydraulic rake, Anti-Theft
lock and Alloy rim etc. Walton Motorcycle also has fuel efficient technology &
Euro3 standard engine.
Introduction
Walton is a well-recognized Brand in Bangladesh. The product of Walton is
very popular here. It likes to sell their product in many foreign countries. It
has a good quality motorcycle. We want to sell the Motorcycle in Kenya.
Kenya has a very similar economy like Bangladesh but their transportation
facility is not good enough. They still depend on animal to visit. We want to
introduce our Walton motorcycle in Kenya. We will be the first company to
enter in the market. We think we can develop their transportation and their
lifestyle. We think we will be able to capture most of their market share and
it will be beneficial for us.
Company Background at a glance
Walton, a brand of R.B Group of Industries is a conglomerate organization
based in Dhaka, Bangladesh. It comprises numerous subsidiaries and
affiliated businesses, most of them united under the Walton brand. The
subsidiaries include Walton Motors, Walton Mobile and Walton Electronics.
Walton produces electronics, motor vehicles, and telecommunications
products. Walton is the most known brand is Bangladesh or even worldwide.
Innovations is at its finest that, Walton Hi-tech Industries Ltd or WALTON a
brand that competitively arising around the globe. From trading to
manufacturing, to creating enormous innovation of highly technology
product to compete and outcast the other company with its incomparable
and creative designs. Walton always emphasizes on supreme priority to

achieve customer satisfaction. It has a large sales& after sales service

network in home & abroad. Walton has achieved various standard quality
certificates including ISO 9001:2008 & ISO 14001:2004. Walton service
network is the countrys only ISO 9001:2008 Standard Certified after sales
service network. The products of the company have acquired a significant
local market share and are also being exported globally for its world class
quality. Walton sets its vision to take a place among the top Electronics,
Automobiles, and Telecommunication Industries in the world by 2015. In a
nutshell, it has been vehemently proved that Made in Bangladesh is the
mark of ultimate confidence.
History R.B Group of Industries was founded by S.M Nurul AlamRezvi in 1977
as a trading company. Over the next three decades the group diversified into
areas including steel, textiles, electronics and automobiles. Walton entered
into the steel industry in late 1970s and the electronics and automobiles in
early 2000s; these areas would drive its subsequent growth. Since the 2000s
Walton has expanded its activities towards electronics and automobiles and
became its most important source of income. Walton Hi-Tech Industry Limited
is the sister concern of R.B Group of Industries limited and it is the
manufacturing and assembly plant of Walton consumer electronics and
automobiles based in Chandra, Gazipur. It was formed in 2002 and the
manufacturing plants construction work completed in 2006. This
manufacturing and assembly plant started its operation from 2008. It is an
automatic and full-fledged factory in Bangladesh. The total area of the
factory is 2.16 million square feet. A total of 8000 technical professionals and
staffs are working in this factory.
It is pleased to observe that the demand of Walton products is being
increased day by day very rapidly and it can be told that a day will come
very shortly when the Walton brand products shall occupy the major market
share in the region.
Business in Bangladesh
Walton Hi-Tech Industries Limited, commonly referred to as Walton, is a
private limited company of Bangladesh. It is a sister concern of R.B. Group.
Walton is one of the largest electrical, electronics and automobiles

manufacturing companies in South Asia. Its headquarters is situated at

Dhaka, Bangladesh.
Walton manufactures very high quality and durable refrigerators, freezers,
air-conditioners and motorcycles at its state-of-the-art plant at Chandra in
Kaliakoir of Gazipur district, some 40 km (25 miles) north of the capital
Dhaka. It started its commercial production and marketing since 2008with
the slogan Walton at Every Home. Walton consistently applies leading
global technologies in manufacturing of its products.
Besides, Walton brand of televisions and their components are manufactured
in Walton`s plant in Gazipur under Walton Micro-Tech Corporation, another
sister concern of of R.B. Group.
Waltons products have already won the hearts of the millions of people in
Bangladesh for their outstanding designs, uncompromising quality and
affordable prices. It has now become a trusted brand name in every
household of Bangladesh.
Walton is an ISO 9001:2008 QMS and ISO 14100:2004 EMS certified
company. It is endeavoring to translate its dream of becoming one of the
leaders by manufacturing superior quality electrical and electronics products
using the best technologies.
Walton product line also includes mobile phones, generators, washing
machines, iron etc.
Walton has also planned to manufacture automobiles where a large number
of local people are likely to get employment opportunities.
Current Situation
Bangladeshi emerging brands are gradually becoming the first choice among
the global buyers, thanks to the competent workforce, competitiveness and
adoption of modern technology. Waltons products have already won the
hearts of the millions of people in Bangladesh for their outstanding designs,
uncompromising quality and affordable prices. It has become a trusted brand

name in every household of Bangladesh and now it is extending its brand

name across the national boundaries with the Walton Cruise. Walton holds its
long cherished desire to be the No. one Company in Bangladesh both in
volume and turnover, which inspired it to go for expansion of its market
globally. We are going to introduce Walton Cruize to Kenya since Kenya is an
important market, being the leading economy in East Africa.
Why we prefer Kenya?

Rapid urbanization growth-more than 250000 move to the city.

Regional entry point to East Africa-(through which possible

expansion in future).

Kenya has a large portion of the population that is extraordinarily

well educated, English-speaking (Common language), and exhibits strong
entrepreneurial tradition.

Potential market for transportation equipments (major import).

Import exemptions have been granted on Motorcycles.

Government encourages entrepreneurship through public transport.

The sales of motorcycle are represented in a bar diagram below:

Here, we can see that, at the year 2003, the sales of motorcycle business
was not that common in Kenya. But the scenario started changing at the
year 2008 while the sales of motorcycle were approximately 50, 0000. At the
year, 2010 it reached 100,000 which are why it seems a good market to
enter in the motorcycle market of Kenya.
Market description
The marketing concept calls for understanding customers and satisfying their
different needs better than the competition. Keeping the diversity of our
customers in Kenya in mind, we want to go for target marketing. We want to

provide convenient and affordable products to our customers. Our B2B target
market in Kenya includes:

People living in the rural area- According to the statistics of July 2012,
the population of Kenya is 40,046,566 (33rd largest country by population.)
As of 2010, 22% of this is urban population and the rest comprises the rural
population. Poor access to transport in the rural areas constrains economic
and social development and contributes to poverty. Improving these rural
people of Kenyas access to essential services requires improving mobility,
and that is possible through better transport services and that is what Walton
cruise aims to give specially to this segment. Better mobility will give people
better access to services (education, health, and finance), markets, incomeearning opportunities, and social, political, and community activities. So,
demand is mostly high in rural areas of Kenya.

Business dealers of Public Transportation- Business dealers of public

transport are another most potential segment for motorbikes in Kenya.
Erratic fuel costs, high parking fees, traffic jams have led people to prefer
motorcycles as preferred mode of transportation. Motorcycle is also used as
public transport.

Students/growing youth population in the city- Students or growing

youth population in the city comprises a key segment in the motorcycle
business. These are the most users of motorbikes and Kenya boasts a young
and vibrant population of 70% below 35 years old which indicates
tremendous opportunity for consumption by this group. Price and fuel
efficiency is the key selling point to this group.
Changes in Consumer Needs and Wants
In the global motorcycle business, two main forces trigger changes in
customer needs and wants. The first force we examine is the changing
demographics of the motorcycle consumer base. The second force discusses
how the volatility of fuel prices affects consumer choices. We will examine
changing demographics with respect to baby boomers and women as well as
the rise in fuel costs over the last few years.

Demographics
Baby boomers are a key demographic segment for the motorcycle market
which we would also take into account while introducing our product in the
foreign market. They comprise a quarter of our population and have strong
buying power in the motorcycle market. Between 1990 and 2003, motorcycle
ownership among baby boomers increased by 44%. The growth of this
consumer segment has outpaced the growth of the rest of the population. As
these consumers age, a large gap will be left in the consumer market for
motorcycles due to decreased demand from this consumer base. In a few
more years, a smaller number of consumers will fall within the 45 to 64 age
range. As the baby boomers age and stop riding, we will find a new market
segment and go for product niche.
As the baby boomer generation ages, an up and coming target demographic
for our motorcycle sales is women. Female motorcyclists are likely to be in
their mid-30s, married, educated, and upwardly mobile. Women bought more
than 10% of new bikes, in 2005 almost 30% more than 1998 sales figures.
Some estimates assert that women compose 12% of the market today.
According to the Motorcycle Industry Council, female motorcycle ownership
grew almost twice as fast as the general motorcycle ownership rate between
1998 and 2003, which shows the extraordinary market potential for us. Our
company would try reaching out to female riders by offering models with
lower seat heights to accommodate womens shorter average height.
Fuel Prices
Another major force affecting the wants and needs of consumers in the
global motorcycle market is the price of fuel. One reason consumers choose
to purchase a motorcycle over other modes of transportation is the desire for
superior fuel economy.
As fuel costs rise, consumers will opt for modes of transportation with
greater fuel economy than the standard car, such as motorcycles and
scooters, public transportation, and bicycles. For example, in Kenya, public
transportation usage increased significantly last year as a result of the
dramatic increase in gas prices. If prices increase significantly over the next
five years, a serious transformation within the motorcycle market could

occur. We would then form a strategy to attract the consumers who use
motorcycle substitutes, such as bicycles or Smart Cars. We would also
convince these consumers to purchase a motorcycle to replace their current
mode of transportation.
Product Review
Product specification

Engine Type- Single Cylinder, 4-Stroke, Air cooling

Ignition System- CDI

Engine Displacement- 97 cc

Battery Voltage- 12 v

Starting Method- electric and kick start

Transmission Dimension (LxWxH) 2020 X 730 X 1040

Fuel Tank-15 L

Braking Method (F/R) 109 Kg

Dead Weight Rated Power (kw/r/min) 4.5/75000

Clutch Wheel Base (mm) Wet-type, Rear clutch plate system

Tyre Size (F/R)- 18-3.00/18-2.75

Product specialty

Euro3 standard engine

Fuel efficient technology

Mobile phone indicator

Digital gear display

Anti-Theft lock

Remote control

Product benefits
Apart from the numerous product specialties, Walton also comes with many
other benefits to deliver to the customers of Kenya.

Large sales& after sales services.

Provides a wide range of products with latest technology, innovative

design, and excellent quality with different models & capacities.

Ability to conform to international quality standards strong as it

possesses latest quality testing devices, e.g. CMM

Product is being offered at competitive prices.

The product maintains International quality standards.

E3 fuel efficient Bike.

Brand image of Walton as the first producer of cost effective and

energy efficient product.
How is Customer Value delivered to the Customer?
To make any sales of their products and services, Walton has a customer
value in the minds of their consumers higher than that of similar offerings by
competing companies. That is possible because they make marketing
decisions, such as making changes to the quality of their products or
changing the price of their products, Walton considers the impact that the
change will have to the customer value that their consumers place on their
offerings. In order to succeed, they find consumers who consider their
offerings to have the highest customer value when compared to other

offerings in the marketplace. Once these consumers have been identified,

Walton makes every effort to ensure that their products and services
consistently create the highest customer value to these consumers when
compared to all of the other choices in the marketplace.
There are various ways how Walton will establish customer value to its
customers of Kenya:

Provide the consumer with the best cost- Walton focus their efforts on

providing a reliable product at a reasonable price. The low price helps to

increase the value of their offering to their consumers of Kenya even if it is
weighed against a low benefit. It will create value to the customers because
they know that they will receive a consistent, satisfactory motorbike at a low
price.
Provide the consumer with the best product- Walton is committed to

manufacturing environment-friendly products through innovation and

technological progress. Waltons research and development teams are
continually working to improve the energy standards of its products, bringing
eco-friendly appliances into homes and abroad. Walton uses CFC-free gas in
the entire manufacturing process. Walton also avoids 2-stroke engines in its
motorcycles. Walton will be perceived as an environment-friendly product.
So, they are increasing customer value of their offerings to their Kenya by
providing a high benefit which undoubtedly exceeds the cost.
Provide the consumer with the best service- Walton also provide a high
level of service to their consumers to increase the customer value of their
services by providing a high benefit which exceeds the cost for many
consumers. Kenyans who will buy from the companies will be willing to pay
more to be treated with exceptional
services.
Competitive Review
Competitors and Intensity of Rivalries
Rivalry among competitors in the motorcycle market is relatively intense.
While each major competitor has its own market niche, price discounting,
new product introductions, advertising campaigns, and innovations in
motorcycle technology consistently fuel rivalry between firms. As a new
player in the market of Kenya, Walton will also face tremendous pressure
from the competitors who are already well established in the market

Rather than competing based on price, the major players in the motorcycle
marketoften tend to compete based on services and features. Each major
company offers different types of products targeted to different consumer
segments. There is a high level of differentiation between classes of products
and brands, causing high switching costs for consumers. Accessories and
parts are produced for one specific brand. In addition, margins are not low,
and the product is not perishable. Because of these factors, competition does
not always tend to gravitate towards price as much as other factors.
Even though price is not always the main basis of competition, the intensity
of competition is still very high. Competitors in Kenya in the current date are:

Chinese Haojin Motorcycles

Bajaj Motorcycles

Prices set by Competitors range from 45000tk-180000tk.

Rivals in the motorcycle market have diverse approaches and ideas on how
to compete. While one company might believe that adding new features to
their products will help boost sales, another company might believe that
increasing speed capabilities will be more beneficial. Another company might
believe that offering easy financing is the key. Companies are constantly
competing against each other to create the next big thing and attract as
many customers as possible.
According to our study of the current motorcycle business, the major
competitors in the market include:
Honda, which controls 29% of the motorcycle market of Kenya, has been at
the forefront with designing elegant, contemporary and powerful scooters
and entry-level motorcycles. It tends to target college students or young
women who do not want bulky bikes. Honda consumers tend to be between
35 and 65 years old and have a middle-high household income. Honda has
been able to remain extremely strong in the market because of its ability to
cater to the needs of its various consumers. It consistently advances the

technology of the industry, such as the creation of the worlds first

motorcycle airbag system. By advertising its strength in innovations and
building upon its already established brand name in Kenya, Honda has had
considerable success against competition.
Harley follows with a 26.5% market share of Kenya. Its consumers tend to
have a higher household income and are middle to older aged. Harleys
average rider is 45 years old with one fifth of its riders over 55. Harley has a
hard time attracting younger consumers who want more technologically
savvy and speedy bikes. It relies mainly on the sales of large cruisers for a
presence in the market. It aims to create a rebel image for its motorcycles
and create a cult-like following of its bikes. Additionally, Harley competes
based on allowing their customers to completely customize their bikes to
reflect their individual tastes and preferences. Harley is the only competitor
offering such a high degree of customization as standard for its bikes.
Because of this, Harley has earned the title of being a premier motorcycle
product.
Like its closest rival, Honda, Yamaha is present in many different motorcycle
categories. Yamaha has a 16.5% market share of Kenya. Suzuki and
Kawasaki have 12% and 9.6% market shares respectively. All three
companies rely strongly on the success of sales in the motorcycle racing
category. They compete in the market by emphasizing the on and off road
capabilities of their bikes. They put emphasis on dirt and street racing,
making the bikes seem young, fast, and fun.
The Japanese brands tend to adhere to a family friendly, young, and stylish
image. In the past, Harley had a hard time competing against these
companies who called Harley the ride of choice for bike gangs. Harley
competed in the market not by attempting to match the Japanese
companies reputations, but rather by exploiting the Japanese motorcycles
older design compared to its own. Harley also made its machines easy to
customize and re-tool. The customization market is what has allowed Harley
to stay in the market of Kenya against the stiff competition from Kawasaki
and Honda.

Substitutes
When analyzing the competitive threats on the motorcycle market as a
whole, we must also keep in mind three main substitutes of motorcycles:
bicycles, undersized cars, and small water boats. Each of these substitutes
can be further broken down into subcategories. Each category is considered
a substitute for motorcycles because it either satisfies at least one of three
costumer needs of the Kenyans of transportation, low fuel costs,
environmentally friendliness, recreational activity, and cool factor. In
addition, we will analyze another factor that motorcycles lack compared to
potential substitutes safety.
Small water vehicles like boats and jet-skis should be considered a threat,
however small, to the motorcycle industry. Just like motorcycles, these water
vehicles satisfy the customer need for recreational activity. When consumers
consider buying a motorcycle versus a boat or jet-skis, we can be fairly
certain they will not make their final choice based on practical transportation
needs. These types of vehicles simply offer consumers an alternative way to
enjoy a recreational outdoor activity that requires little physical exertion and
high personal utility. Much like motorcycles, boats have very high switching
costs, and the ranges are too extreme to provide an accurate average.
Basically, boats can be very expensive just like motorcycles, and once the
choice has been made to invest in a boat or jet-skis, high switching costs can
be a highly motivating factor in not purchasing a motorcycle. In areas of
Kenya that is located near lakes, rivers, or oceans, water vehicles may be
more attractive than motorcycles to those consumers. In addition, owning a
boat or jet-skis for many people satisfies their need for maintaining a
particular image. Generally, people of Kenya who own boats or jet-skis
believe they are part of a certain crowd, just like motorcycle owners, and this
is another motivating factor for some people to choose a water vehicle over
a motorcycle. Under some circumstances, we perceive water vehicles to be a
mild threat to our market share.
Bicycles are also a threat to our business based on a few critical factors.
First, as two-wheel transportation vehicles, they are similar in basic function
to motorcycles, satisfying the consumer need of basic transportation from
point A to point B. On a more practical note, bicycles do not usually travel

much faster than 25 mph, and many roads of Kenya are not very bicyclefriendly or safe to ride on at night. An additional reason why bicycle make
viable alternatives to motorcycles is related to the consumers need to spend
less money. Bicycle owners incur zero gas mileage costs, making this
alternative the most environmentally friendly option. To be technical, the
only real costs associated with bicycles are the upfront purchase,
maintenance, optional accessories, and human labor. In addition, bicycles
satisfy the consumers need for recreational activity similar to motorcycles.
Anyone from the average consumer to the avid biker can use a bicycle as an
alternative means of outdoor recreation. However, bicycles are not generally
associated with the cool factor that is associated with motorcycles, and
this is one of the most influential factors for the motorcycle industry.
According to motorcycle enthusiasts, The [cool] factor is one important
element and one of the reasons why many are riding a motorcycle. Similar
to motorcycles, bicycles are not as safe as cars, and accidents happen more
frequently on bikes than in cars. Despite the downfalls, bicycles are viable
substitutes and pose a moderate threat to the motorcycle market.
Compact cars and hybrids are the final and most influential classification of
substitutes that pose an immediate threat to the market. Overall, both types
of cars present high switching costs to the consumers. As soon as the
consumer purchases a compact car or hybrid, the value goes down sharply,
and selling the car is an additional hassle and expense. For the consumer
who is interested in switching to a motorcycle, high switching costs could be
a highly motivating factor to not buy a motorcycle at all. Hybrids are
primarily substitutes because they satisfy the customers need for a fuelefficient mode of transportation. According to the Environmental Protection
Agency, the Smart Car gets only about 33 to 41 miles per gallon of gasoline,
compared to 34 to upwards of 100 mpg for a motorcycle, though this varies
greatly based on size, weight, and speed of travel. Although motorcycles are
more fuel-efficient than even the best hybrid or smallest car, the safety
factor makes compact cars and hybrids more attractive to some consumers.
Compact cars and hybrids are safer than motorcycles because they generally
have seatbelts, airbags, and a shell that protects the driver. According
toAccidentAttorneys.com, 2006 figures from the National Highway
Transportation Safety Administration detail 4,810 motorcyclists died from

accident traumas and over 88,000 more suffered injury from motorcycle
accidents in the year as well (Accident). For many consumers, increased
safety is a motivating factor in buying a compact car or hybrid over a
motorcycle. In addition, compact cars like Smart Cars can be substitutes for
motorcycles due to their compact size, measuring just a few feet long. Much
like motorcycles, these small cars can fit into the tiny parking spaces and
squeeze through tight spots. Compact cars are also becoming very trendy in
some areas because of their novelty. According to a 2008 article in Wired
Magazine, When asked to rate four key selling points [of a Smart Car] gas
mileage, price, practicality (parking, maneuvering in traffic) and novelty
every dealer we spoke with put novelty as its number one feature (Wired).
The novelty factor is similar to the cool factor associated with motorcycles,
which satisfies the consumers image need. In this respect, the two
somewhat compete on image-related consumer needs. Overall, we perceive
fuel efficiency and safety to be the most important factors on which compact
cars and hybrids pose threats to the market.
SWOT Analysis
STRENGTHS:

Brand Name: Walton already has established themselves as strong

brand personality among Middle East countries.

Pricing Power: All other existing motor bikes in Kenya are high

expensive. In This Case, Walton has a competitive advantage of lower price.

Supply Chain: If Walton can maintain strong distribution channel

among all potential places among Kenya Walton will be benefitted over other
competitors

Cost Advantages: If Walton can go through a proper cost effective way

of shipment, then exporting cost will be at minimal point.

WEAKNESSES:

Lack of Scale: Because of Exportation Walton may face difficulty of

losing lack of scale in production.

Customer Service: One of the weaknesses of exportation of Walton is

weaker customer service.

Weak R&D: As we are exporting Walton so new way of production will

be take time to be effective in Kenya.

OPPORTUNITIES:

New products: Though Walton motor bike is remote control so people

are odiously willing to buy this one. All other existing motor bikes in Kenya
are mostly high fuel taking bikes but at that point Walton bikes are more fuel
efficient than others one.

Emerging Markets: Saving money and themselves from traffic jams is

increasingly becoming important for Kenyans. Escalating fuel costs, high

parking fees, traffic jams and affordable motorcycles are luring Kenyans
away from personal cars.
THREATS:

Mature Markets: Kenyan people are getting interested for motorbikes

day by day. Due to high maintenance of Cars, motorbikes industry is really
rising. Most motor bikes are being imported from china.

Intense Competition: Walton may face problem due to intense

competition of reputed company brand motor bikes.

Substitute products: Due to availability of reputed company brand

motor bikes, Walton may find difficulty of getting customer attention.

Volatile Costs: If the economy of Kenya and political situation does not

go well, then cost will be increased therefore, profit margin will be decreased.
Marketing Strategy
Demand of Walton products is now growing in different countries of the world
apart from Bangladesh, for their outstanding quality, reliability and
durability. Walton exports its products to 20 different countries of the world.
With this success, Walton looks to extend its marketing coverage towards

other international market. This would bring it into direct competition with
other globally established brands. In the context of unprecedented growth in
demand both at home and abroad, Walton has planned to export its
motorcycle in Kenya as they have great demand for motorcycle and it has a
plan to export its products to 50 countries of the world by 2015.
As Walton intends to export motorbike in Kenya global target marketing
strategy is very important and they have chosen standardized global
marketing. Kenyas climate is tropical, arid and semi-arid climate. Users are
experienced with Asian bikes and their national consumer habits are similar
to Bangladeshi consumer thats why Walton is offering sensitive price and
energy conservation. No specific government regulations on motorbikes. As
majority people are English speaking they dont have to need use different
language on packaging level.
Positioning Strategy
Walton has created huge enthusiasm among the consumers of its target
market with its slogan Aamader Ponnyo. They accepted Waltons endeavor
of manufacturing some electronic items like, refrigerator & Freezer and
motorcycle for the first time in Bangladesh, and are more than willing to buy
a product of high quality made in our own country. On the other hand, as a
local manufacturer Walton can sell quality products at comparatively lower
price than other competitors.
It also makes its product available at the nearest possible places in each
areas of Bangladesh through Walton Plazas (own showroom) and
countrywide dealers.
Another strategy of Walton for creating a concrete place in the customer
mind is its after sales service. In order to providing the quickest possible
after sales service to the customers.. Walton equally values its sales and
after sales service for maintaining a long and positive relation with its
customer and thus retain and increase the customer. Walton will try to
deliver all facilities in Kenya and the way it has been successful in
Bangladesh it will be successful in Kenya.

Walton as a Brand
Walton has emerged as the most popular brand among all consumer brands
of electrical, electronics and automobiles products in Bangladesh. Now,
Walton brand is known at every household of the country. It proves that
Walton has achieved a degree of success which is unparalleled in the
countrys business domain.
Its Our Product (in Bangla: AmaderPonno)a major slogan of the brand,
leaves a strong impression about Waltons commitment to deliver the best
with Bangladesh identity.
Walton brand of refrigerators has been adjudged the best among all local
and foreign brands of refrigerators for their quality, affordability and
durability at the just concluded Best Brand Award 2011 giving ceremony in
Dhaka recently.
The brands were ranked following an extensive survey carried out by
Bangladesh Brand Forum. Walton has also been ranked as the 5th best
brand among all best local brands, while the 18th best brand among all local
and foreign brands of Bangladesh.
As the economy of Kenya is still growing slower than Bangladesh, the
product will be perceived as of better quality than the local one. As they are
looking for cheaper import options from Asia, Walton is likely to gain easy
access.
Waltons Servicing Networks
Waltons motto is Service First. Walton provides after-sale services for its
products from its extensive servicing networks, which is the largest in
Bangladesh. Walton customers of home appliances, electronics and
automobiles receive after-sale services at free of cost from any parts of the
country within only two hours. Known as Walton Service Management
System, Walton Service Centers are the only service centers in Bangladesh
which has ISO Certification. Equipped with full-fledged computerized system
and latest technology, these service centers remain open for customers
seven days a week. Even these service centers remain open on holidays.

More than 700 engineers and technicians work round-the-clock at these

service centers where all kinds of spare parts of the Walton products are
available. Customers are highly satisfied receiving after-sale services from
Walton Service Centers.
Walton will open up a service center in Kenya by taking permission of their
government and will take necessary steps which should be taken as they
have large target market in Kenya.
Product strategies:
There are five major product strategies in international marketing. Walton
will adopt the Product communications extension strategy. This strategy is
very low cost and merely takes the same product and communication
strategy into other markets. However it can be risky if misjudgments are
made. Before entering the market of Kenya Walton have done research about
demographic, geographic, psychographic, behavior and others. The economy
of Bangladesh is similar to Kenya, hence they will trust the fact that the
motorcycles are cost and fuel efficient.
Market position of motor bicycle
In Kenya motorcycles demand are in growing stage. People are buying motor
bicycles of different brand from different countries. But Walton is in the
introductory stage in Kenya. Brand image of Walton as the first producer of
cost effective and energy efficient products.

Comparison of Hofstede Values

Bangladesh has a greater power distance than Kenya.
Masculinity/ Femininity has no impact on the sale of motorcycles
They are a collectivism nation. Word of mouth may influence purchase

of motor bicycle.
Uncertainty avoidance is not different from Bangladesh- therefore we
can expect demand for Walton bikes too.
Projected Advertisement Costs
Newspaper ads Daily Nation
Color half page- 128,382 BDT per month

Radio (BDT 6000 once) per month

Promoting our product for first 6 months from launching
Overall costing per month BDT 134,000
Cost of 60 motorbikes
Cost of 1 Walton cruize 100- BDT 101,200
Cost of 60 Walton cruize 100- (101,200*60) = BDT 6,072,000
Shipping cost
Number of motorcycles in one 20ft container= 30 motorbikes
Total number of containers for 60 bikes=2
Total shipping cost for 20ft container- ($1500*81)*2=243000
Shipping cost per Bike= 243000/60= 4050 BDT
Pricing Strategy
Cost of 60 motorbikes

6,072,000

Cost of shipment

243000

Total vat

98100

Advertising Expense
Total cost
+15% Profit margin

134,000
6547100
982065
7529165

Prices per bike- 7529165/60= 125486 BDT

Compare with competitor price

In Kenyas market Walton will be compete with other companys motorcycle
like Chinese Haojin Motorcycles and Bajaj Motorcycles. Waltons main target
market has always been middle-income group. SO they have been very
careful in setting their price of product. Also the fact that they manufacture
their products, it allows them to set a lower price than their competitors, as
they dont have to pay heavy import duty. The prices set by competitors
range from 45000tk-180000tk.
It is evident that Walton is providing the consumers with the least expensive
product. It is vital for Walton as price is the only tool where they have a
superior advantage over other brands. But it must be noted that consumers
in higher income level also look for quality products. Walton needs to find a
fine balance between price and quality as they competing with other
company.
The motorcycles have become famous because of the special specification
like mobile phone indicator, Digital gear display, Fuel location meter, Air
shock absorber, Remote control, Hydraulic Brake, Anti-Theft lock and Alloy
rim etc. Walton motorcycles are also fuel-efficient.
Business set up
Process to go
Kenya has no embassy in Bangladesh but it has an embassy in India.For any
kind of activities and document processing related to Kenyan embassy, an
individual will need to go to India first by collecting Indian visa from
Bangladesh, and then go to Kenyaembassy.
How to Export to Kenya from Bangladesh
Ship is the best mode of transport to export motorcycle in Kenya. The route
will be Chittagong Port to Mombasa commercial Port known as Kilindini
Harbour port. ExpoBangla logistics LTD is the chosen shipping company. It
will take approximately 1 month to reach Kenya.
Import Documents

An importer will have to enlist the services of a clearing agent who will
process the import documentation through Kenya Customs electronically. An
import declaration fee (IDF) of 2.25% of the CIF Value subject to a minimum
of taka 5,000.00 is payable. The Documents to import (number) in Kenya was
last reported to be 7 in 2011.Payment is by letter of credit, all documents
required by banks for the issuance or securing of a letter of credit are also
taken into account. Documents that are renewed annually and that do not
require renewal per shipment (for example, an annual tax clearance
certificate) are not included. For shipping services Walton may enlists
Inchcape Shipping Services

Business Customs in Kenya

The most common greeting is the handshake. When greeting someone

with whom you have a personal relationship, the handshake is more

prolonged than the one given to a casual acquaintance. Shake hands is
preferable before starting a business discussion or meeting.
To rush a greeting is extremely rude. Take the time to inquire about the

other persons general well-being, family, and business in general

Kenyans have a flexible attitude towards time, so dont be surprised if

business meetings or social events begin late.

Business hierarchies are clearly defined, it is important to be mindful of

colleagues name and designation.

Business cards are exchanged without formal ritual.
Kenya is a polychronicsociety, they focus on getting things done by

order of priority rather than working to a set time schedule.

Relationships outside of the business environment can help build

stronger ties too.

Decision making in Kenyan businesses tends to work on a top-down
basis, with objectives set and decisions made by those in the highest
positions.
Mode of Entry
Contractual Agreement: First Walton has to make a contractual agreement
with Kenyas importer. Walton will send a representative from Walton to
contact import agent. (Abson Motors Ltd as first choice) and contact
Adventure Technology Co Ltd (Motorcycles & Motor Scooters Parts &

Supplies) as wholesaler. Finaly they will have to ensure Proper distribution

through retailers.
Distribution Network
For making the product available to its target customers Walton use its
distribution channel. Walton generally uses its own transport facilities for
reaching the product to its120 Walton Plazas and about 700 dealers. If any
dealer wants to use his own transport for transporting Walton products from
factory to his shop, he gets 1% reduction on dealer price.
As Walton will export motorbike in foreign country they will have to go
through some retail and wholesale company.

1.

Promotion:
Ever since Walton started its production in its manufacturing plant, they have
started a wide promotional campaign on its product. Their tagline
AmaderPonnyo reflects the pride they take by being able to sell home
appliances manufactured in Bangladesh. Right now Walton has TVCs running
in all major satellite channels of Bangladesh in peak hours targeting their
core target customers. Also they have numerous billboards and
advertisements in print media. Also their 120 Walton Plazas across the
country also works as a major advertising tool. Walton has recently started
sponsoring different major sports event in the country. Recently they
sponsored their first International Cricket Tournament and thus it allowed
their brand to be viewed by millions of people across the world.
Promotion of Walton Cruize 100
There are some steps for choosing an advertising agency. First Walton has to
check the experience in handling recruitment advertisement and see the
examples of its work. They also have to check time to time that client got the

services which are provided. They will also have to meet the staff who will
work on the advertisement as well as Check the charges of the
advertisement. Walton will be contacting the local Advertisement agency
square gold PR and Marketing.
The client Brief will provide the following information:
1) What are we now? (Product specification, current position of the brand,
key issues of the brand, etc.)
2) Where do we want to be? (Our objective of creating brand awareness and
capturing at least 5% of the market will be mentioned)
3) What are we going to do to get there?
-marketing Strategy
-campaign Strategy
Conclusion
The company has been running its business with good reputation since
1977.Establishment of Walton HIL to manufacture Refrigerator & Freezer, Air
Conditioner, and Motorcycle etc. In Bangladesh is a milestone in the path of
success and reputation of the brand WALTON. Walton HIL is the first company
to introduce advanced research and manufacturing technologies and
equipment for household & commercial Refrigerator & Freezer, Motorcycle
and Air Conditioner etc. in Bangladesh. For Bangladesh, Walton has become
a company to be proud of in the export arena. Walton has truly redefined
Bangladesh from being a consumer country to a producer country for home
appliances and it will be successful in Kenya.

January 17, 2014

Opportunity to Export Walton Motorcycle in

Ethiopia from Bangladesh
Introduction
Walton is a well-recognized Brand in Bangladesh. The products of Walton is very popular here.
It like to sell their product in many foreign country. It has a good quality motorcycle. We want to
sell the Motorcycle in Ethiopia. Ethiopia has a very similar economy like Bangladesh but their
transportation facility is not good enough. They still depend on animal to visit. We want to
introduce our Walton motorcycle in Ethiopia. We will be the first company to enter in the market.
We think we can develop their transportation and their lifestyle. We think we will be able to
capture most of their market share and it will be beneficial for us.
Company Background
At a glance
Walton, a brand of R.B Group of Industries is a conglomerate organization based in Dhaka,
Bangladesh. It comprises numerous subsidiaries and affiliated businesses, most of them united
under the Walton brand. The subsidiaries include Walton Motors, Walton Mobile and Walton
Electronics. Walton produces electronics, motor vehicles, and telecommunications products.
Walton is the most known brand is Bangladesh or even worldwide. Innovations at its finest that
is Walton Hi-tech Industries Ltd or WALTON a brand that competitively arising around the
globe. From trading to manufacturing, to creating enormous innovation of highly technology
product to compete and outcast the other company with its incomparable and creative designs.
Walton always emphasizes on supreme priority to achieve customer satisfaction. It has a large
sales& after sales service network in home & abroad. Walton has achieved various standard
quality certificates including ISO 9001:2008 & ISO 14001:2004. Walton service network is the
countrys only ISO 9001:2008 Standard Certified after sales service network. The products of the
company have acquired a significant local market share and are also being exported globally for
its world class quality. Walton sets its vision to take a place among the top Electronics,
Automobiles, and Telecommunication Industries in the world by 2015. In a nutshell, it has been
vehemently proved that Made in Bangladesh is the mark of ultimate confidence.
History

R.B Group of Industries was founded by S.M Nurul Alam Rezvi in 1977 as a trading company.
Over the next three decades the group diversified into areas including steel, textiles, electronics
and automobiles. Walton entered into the steel industry in late 1970s and the electronics and
automobiles in early 2000s; these areas would drive its subsequent growth. Since the 2000s
Walton has expanded its activities towards electronics and automobiles and became its most
important source of income. Walton Hi-Tech Industry Limited is the sister concern of R.B Group
of Industries limited and it is the manufacturing and assembly plant of Walton consumer
electronics and automobiles based in Chandra, Gazipur. It was formed in 2002 and the
manufacturing plants construction work completed in 2006. This manufacturing and assembly
plant started its operation from 2008. It is an automatic and full-fledged factory in Bangladesh.
The total area of the factory is 2.16 million square feet. A total of 8000 technical professionals
and staffs working in this factory. It is pleased to observe that the demand of Walton products is
being increased day by day very rapidly and it can be told that a day will come very shortly when
the Walton brand products shall occupy the major market share in the region.
Business in Bangladesh
Walton Hi-Tech Industries Limited, commonly referred to as Walton, is a private limited
company of Bangladesh. It is a sister concern of R.B. Group. Walton is one of the largest
electrical, electronics and automobiles manufacturing companies in South Asia. Its headquarters
is situated at Dhaka, Bangladesh.Walton manufactures very high quality and durable
refrigerators, freezers, air-conditioners and motorcycles at its state-of-the-art plant at Chandra in
Kaliakoir of Gazipur district, some 40 km (25 miles) north of the capital Dhaka. It started its
commercial production and marketing since 2008 with the slogan Walton at Every Home.
Walton consistently applies leading global technologies in manufacturing of its products.
Besides, Walton brand of televisions and their components are manufactured in Walton`s plant
in Gazipur under Walton Micro-Tech Corporation, another sister concern of R.B.
Group.Waltons products have already won the hearts of the millions of people in
Bangladesh for their outstanding designs, uncompromising quality and affordable prices. It has
now become a trusted brand name in every household of Bangladesh.Walton is an ISO
9001:2008 QMS and ISO 14100:2004 EMS certified company. It is endeavouring to translate its
dream of becoming one of the leaders by manufacturing superior quality electrical and
electronics products using the best technologies.Walton product line also includes mobile
phones, generators, washing machines, iron etc.Walton has also planned to manufacture
automobiles where a large number of local people are likely to get employment opportunities.
Products
Walton Television
Walk into the new arena/world of entertainment with Walton LCD & LED television. Walton
brings you world class LCD & LED television to enjoy the stunning entertaining world. To make
picture quality so sharp, smooth and vivid Walton is using world class technology. Youll be
watching image quality that is so standard and so rich that its almost as though you were right
there.

Walton Refrigerator
Walton offers wide range of refrigerators & freezers with a lot of variety in colors, dimensions
& types. Our different kinds of frost, non-frost, glass door refrigerators & chest freezers are
manufactured with 100% copper condenser which is very important for fridge because it:

Lasts at least 20-30 years

Reduces electricity costs

Fridge gets cold very quickly

Never attacked by rust

Walton Freezer
Walton Refrigerator & Freezer ensures highest quality compressor, Condenser is made by 100%
copper which lasting for 20-30 years. Our Walton Refrigerator also ensures eye catching design
& color and more useable space. Every spare parts including door with different color are
changeable and available everywhere over the country. Walton Refrigerators & Freezers are
produced based on DECS technology. DECS Technology provides longer enduring cooling
system, Energy consumption is very low, properly ensure exact moisture for proper nutrition and
all food value. Walton Hi-Tech industries also developing non frost Refrigerator.
Walton Generator
Walton Generator scientifically developed technology that deliveries of Clean Power that means
much more reliability but interruptions are very low. Walton Generator technologies are very
sensitive electronics; the Generator operates with a click from remote location. When the lights
suddenly go out then a power outage can result in your home, Business place, Party Center and
you could able spoiled your lost work. Walton generator provides the perfect way to enjoy at
home, as well as concert, parties and many more. Walton Generator has some special
specifications like as Non-Contact Transistor Ignition System, Automatic Voltage Regulator
(AVR), Auto Circuit Barker, 50Hz Rated Frequency, 12-8.3A DC Output, 4-Stroke Engine and
Digital Display Meter.
Walton Motorcycle
Walton motorcycle produced with modern innovative technology, elegant shape & design with
different models of 80cc to 140cc motorcycle maintaining international standard quality as per
requirements of its customers of different countries or regions. Walton motorcycle has security
control system with voice alarm. Walton Motorcycle has introduced some special specifications
like as mobile phone indicator, Digital gear display, Fuel location meter, Air shock absorber,
Remote control, Hydraulic Brake, Anti-Theft lock and Alloy rim etc. Walton Motorcycle also has
fuel efficient technology & Euro3 standard engine.

Walton DVD Player

Add a touch of Walton DVD Player of unique style to your home entertainment area. This
lightweight, compact DVD player also up converts youre DVDs. That translates to crystal-clear
high definition movies. It also plays the most popular multimedia formats like Compatible with
DVD, SVCD, VCD, DVCD, CD, MP3, CD-R, CD-RW, HDCD, JPEG and Kodak picture CD,
32 Subtitle, multiple angles and 8 language supporting, Digital audio coaxial and optical fiber
output, Composite video output and YUV output, 4:3/16:9 Picture conversion, Full function
remote control, Dolby Digital AC-3 decoder, 5.1 Channel audio output, PAL/NTSC compatible,
DTS Digital output, Parents lock setting, KARAOKE function , Pscan function, S-Video output,
VGA output
Walton Mobile
WALTON Mobile is an elegant line of mobile phone handsets. It is distinctive by its
unquestionable quality, longer durability and eye-popping style . WALTON maintains a strict
quality control process to ensure flawless quality. It possesses the largest sales channel to explore
every nooks and crannies of the country. WALTON provides an adept after sales service team. In
fact it is the biggest after sales servicing network in Bangladesh. WALTON Mobile owns fourty
three after sales servicing points all over Bangladesh which are ever so alive to solve the tiniest
problem also. So WALTON Mobile is the loftiest one to serve the mobile phone facilities at
every city, at every village and at every hand.
Walton Microwave oven
Walton Microwave Oven cooking standard is very high. Walton Microwave Oven has some
special features like as Power output:900w, Cavity capacity :28liters(1.1cu.ft), 10 Microwave
Power Levels, Speedy And Weight Defrost(meat, poultry, seafood), Painted Steel Cavity,
Cooking end signal, Push handle door, Preset Function, Digital Clock(12 hours system), Safe
Child Lock Feature, 325 glass turntable. All the features are accurate and reliable. Besides other
our Walton Microwave Oven include dependable components, excellent after sales service and
stunning looks. Different models like WC30ASPR, W23AP, and W17AP are available here.
Walton Washing Machine
Walton Washing Machines standard is very high.
Walton Iron
Walton Iron standard is very high.
Walton Air Conditioner
Walton presents the perfect solution from heat & high temperature with its Air Conditioner.
Only Walton air conditioner ensures exact BTU thats why experts are so sure & confident about
its cooling standard. AAA technology & 100% copper tube have made Walton brand air

conditioner expert in cooling and the exciting design, electronic thermostat, fuzzy logic control,
low energy consuming compressor & reliable after sales service have made Walton brand air
conditioner unarguably unique.
Walton Blender Machine
Walton Blender Machines standard is very high.
Walton Rice Cooker
Walton Rice Cookers standard is very high.
Products to export
Country of origin
The product we are planning to export is Walton motorcycle. After doing the research about the
country of Ethiopia we realized that their transportation system is not so good especially in
private sector. As the most of the people in that country live below poverty line, they cannot
afford very expensive car. So we have decided to export motor bike for them. We selected
Ethiopia to enter because of the huge market demand. Competition is not that much compared to
the other countries because most of the companies target developed market whereas the
Ethiopian market is just developing not developed. We have selected some of the model of
motorbike that we will export to Ethiopia. Their classifications and features are described below:
Walton motorcycle produced with modern innovative technology, elegant shape & design with
different models of 80cc to 140cc motorcycle maintaining international standard quality as per
requirements of its customers of different countries or regions. Walton motorcycle has security
control system with voice alarm. Walton Motorcycle has introduced some special specifications
like as mobile phone indicator, Digital gear display, Fuel location meter, Air shock absorber,
Remote control, Hydraulic Brake, Anti-Theft lock and Alloy rim etc. Walton Motorcycle also has
fuel efficient technology & Euro3 standard engine.
Special features of our products:

Mobile Phone Indicator

Digital Gear Display

Fuel Location Meter

Anti-Theft Lock

Hydraulic Brake

Alloy Rim

Products
Walton Fusion Motorcycle
This new Walton Fusion Motorcycle has several innovations like electronics alarm, remote
control and mobile phone signal. One of the main features is that it can be started and stopped
about 300 feet away. Out-looking and digital display system of the latest model motorcycle are
also excellent.
The popularity of Walton Fusion Motorcycle in the country has peaked up due to its features like
less vibration, less sound, easy gear system, fuel location meter, alloy rim, hydraulic break,
digital watch and gear location. Japanese carburetor incorporated Walton motorcycle engine
lasts long time as it does not create more vibration that results in creating less shake on up and
down roads and lower pressure on the engine. The engine also helps to reduce occurring accident
as its gear is adjusted atomically if speed is increased. Out looking of 125 cc and 110 cc Walton
Fusion brand motorcycles are excellent and able to fight with other world standard motorcycles.
Maximum Retail Price is BDT 111,700.
Packaging for Shipping motorbike:
As motorcycle is one of our most prized possessions. As such, our motorcycle requires special
care during shipping to ensure that it arrives in good condition. As with all vehicles, shipping a
motorcycle is subject to specific regulations that we should be aware of prior to our move. The
information below details how we design our packaging for shipping our motorcycle. We go
through certain steps during packaging the final goods for shipments.
Its important to prepare motorcycle for shipping in order to minimize potential problems during
the move. We always check our fluids, battery charge and tire air pressure before shipping a
motorcycle. If we have any fluid leakage problems, we fix prior to shipping.
We arrange the safe shipment of motorcycles, including custom packing cases.
We pride ourselves on delivering a quality service, with every motorcycle packed in its own
bespoke, custom designed container for maximum protection during transit.
Once your motorcycle is prepared for shipping, we bring it to our moving companys location so
that it can be placed on a shipping skid or be measured for a custom crate. To reach moving
companys location we hire truck or carriage of train to move our goods to Chittagong port. After
that they receive our goods make an agreement named contract of affraightment by which they
take all the responsibilities to transit the goods to our destination. And we make another contract
to hire a ship to transit our goods after that the goods are ready to transit for exporting to another
country.
Where to Export

Name of the country

Ethiopia, officially known as the Federal Democratic Republic of Ethiopia, is a country located
in the Horn of Africa. It is bordered by Eritrea to the north, Djibouti and Somalia to the east,
Sudan and South Sudan to the west, and Kenya to the south. With over 86,000,000 inhabitants,
Ethiopia is the most populous landlocked country in the world and the second-most populated
nation on the African continent. It occupies a total area of 1,100,000 square kilometres (420,000
sq mi), and its capital and largest city is Addis Ababa.
Reason of choosing the mentioned country

Ethiopia is still a developing country where there is a chance to grow and be a brand.

Since the motorcycle market is still unexplored Walton will be the first brand to offer
quality motorcycle in a reasonable price. This will give Walton the first mover advantage

Most of the roads of Ethiopia is unpaved and people use animals to transport themselves.
Most of the cases they walk. If properly promoted, then motorcycle could be a justifiable
mean of transportation.

With aggressive pricing and proper distribution Ethiopia will generate sufficient amount
of profit.

Ethiopia is the second most populated country in the African continent ensuring a well
sized market.

Moreover, Ethiopia is a strategically located country which gives a possibility of future

export to other nearby African countries.

The geographical location, economic condition and roads condition along with the
cultural practices points in favour of importing motorcycle to Ethiopia. Since the GDP
per capita does not allow the people to buy cars but if proper value can be communicated
then they will buy motorcycles.

Promotion
Advantages & Drawbacks of the offering:
Advantages of our offerings:
As you can from see our offerings, initially we are offering six different types of motorcycles in
Ethiopia. All these six designs are available with different colors. This feature will give our
customers a wide range of choice. We think this will be a big

advantage of our offering. At present the companies that are selling motorcycles in Ethiopia are
not offering a wide range of motor cycles of different specification. Our main competitors will be
few local companies that manufacture motorcycles and
Chinese companies that sell motorcycle in Ethiopia. All these companies offerings are not that
much rich, on the other hand as a beginning we are offering many designs and colors at a time.
Our motorcycles are perfect for the roads of Ethiopia. Ethiopias communication network is not
that much good and their bumpy roads require motorcycle. Our motorcycles features are very
much suitable for Ethiopia, this is our big advantage.
Another advantage will be reasonable price because our production cost is low comparing with
our Chinese manufacturers. The reason behind it is low cost and low duty on importing materials
required to manufacture motorcycle. Ethiopias income per capita is pretty much same like
Bangladesh. So people of Ethiopia is most probably going to like our motorcycle and buy it
because its price is in the range of mass Ethiopians. And last but not the least our talented
engineers and workers who are working relentlessly to improve our product are our great
advantage.
Disadvantages of our offerings:
Although our motorcycles are very much suitable for Ethiopian environment but there can be one
problem. Outside the capital Addis Ababa, Ethiopias communication facility is very bad. Our
target is not only the capital city but to become profitable we have to capture the market of other
cities and sub-urban areas where people can afford a motorcycle. For this bad roads our
motorcycles weight handling capacity needs to be improved. Because when our motorcycles will
run on their bumpy roads with three persons at a time they will have to carry big load f pressure.
So we think this is a disadvantage of our offerings and we have to scope to improve in this
criterion.
Positioning (according to Maslows hierarchy of needs):
According to Maslows hierarchy of needs we will position our motorcycles as a social needs.
Because our product price will be moderate, not very cheap, not very high. Using our
motorcycles will give them feelings of social acceptance even may be a class but it wont fulfill
their esteem and self-actualization needs. Definitely our motorcycles will fulfill their safety
needs and basic needs of transportation. So our positioning will be based on social needs.
Communication Strategy
We will use 2 strategy to promote our motorcycle.
Billbord : We will keep billbord in the important road of the Ethiopia. We will try to attract the
attention of the people by those billbord.
Here are some sample of our Billbord

Arrange motorcycle race: We will arrange a motorcycle race to attract the attention. Ethiopia
has no other motorcycle so this race will help to get customer.
Entry Strategy
We will use exporting strategy to enter in the Ethiopian market. We will enter in the Ethiopian
market in a slow process. First we will sell few motorcycles in Ethiopia. We will open a
showroom and sell product from the showroom. When we will get good number of customer we
will go for exporting motorcycle in a large number.
Distribution
We will distribute the motorcycle by our own showroom. We will rent showroom in the city and
sell the motorcycle from the showroom.

1st year we will distribute by only one showroom in the capital city Addis Ababa.

From 3rd year we will cover the main city of Ethiopia.

From 5th year we will try to cover every city of Ethiopia.

Business Organization
There will be a managing director from Bangladesh. He will responsible for the activity in
Ethiopia. There will be three managers. Marketing and Human resource manager
from the Ethiopians and the finance manager will be from Bangladesh. Under the marketing
manager, there will be a local employee responsible for the distribution.
Contingency Plan
Every business has two sides one negative and the other positive. So it is very necessary to plan
in advance for the negative outcomes. Successful business tends to always have a contingency
plan i.e. backup plan to survive during the negative time. Our business also has a contingency
plan which will help us and guide us to avoid risk during the bad time if any occurs. The
contingency plan for our business are:

Walton plans to merge with other motorbike companies in Ethiopia such as Afro China
Group, Al-Jewhar Industry and Trade Plc, Dawit Mechal, etc.

If this is not possible then Walton plans to sell of their office and inventories to pay off
their creditors and loans taken.

Bangladesh electronics giant Walton enters GCC market

Group finalising distributorship and sub-franchisee pacts

Image Credit: Asghar Khan/Gulf News

Mahmoud Mamun, Managing Partner of the company that distributes Walton, says
the first consignment was sold out before schedule.
Published: 00:00 March 6, 2012
By Saifur Rahman, Business Editor
Add to My Gulf News
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Dubai: Bangladeshi consumer electronics brand Walton has entered the Gulf through a franchise
agreement with a Dubai-based company. Separately, a Qatar-based company acquired the rights
to Walton's business on the peninsula.
Walton employs 12,000 workers in Bangladesh's largest household consumer goods
manufacturing plant.
It distributes 4,500 types and models of goods ranging from mobile handsets, microwave ovens,
DVD players, LCD and LED televisions to motorcycles and sells them through a network of
4,986 outlets, sales centres and dealers across the country.

It manufactures 1.4 million refrigerators and freezers, 300,000 airconditioners, 1 million

television sets and 300,000 motorcycles.
"We started three months ago and our first consignment has been sold out before schedule,"
Mahmoud Mamun, Managing Partner of Mohd Moqbul Trading LLC - franchisee of the Walton
brand, told Gulf News.
"We are currently finalising distributorship and sub-franchisee arrangements in all seven
emirates and Al Ain within the UAE and Oman before entering the Saudi market.
This is in addition to five containers re-exported to Afghanistan. The company, which stocks
goods in an Ajman warehouse, is looking for another in Jebel Ali.
"During the first year of operation, we plan to import and sell more than 120 40-foot containers
worth Dh10 million.
Made in Bangladesh'
Walton has an end-to-end manufacturing plant that produces components in 200 factories and
then manufactures brown and white goods from those in the production line, promoting the
Made in Bangladesh' label.
In 2009, Walton bought a mobile handset manufacturing plant in South Korea that once
manufactured Nokia and other mobile cellphone brands. Following the acquisition, it has shifted
the plant to Bangladesh where it produces millions of handsets every year.
"For the UAE market we have brought a few models to suit the needs of our customers," Mamun
says. "Our cheapest handset that sells for Dh100, offers dual sim, radio, camera, internet, social
media, video recording among other features that you don't get for Dh100."
The number of mobile subscriptions in Bangladesh increased 50 per cent to 86.57 million in
January, according to the Bangladesh Telecommunication Regulatory Commission. Bangladesh's
population is an estimated 160 million.
However, of the country's 28.37 million users, 26.9 million are mobile internet users
reflecting the popularity of mobile-internet usage. Walton's handsets are going to help meet the
domestic demand first, analysts say.
"The Bangladesh consumer durables market is on a growth curve. Consumption of durables such
as televisions, refrigerators and mobile phone handsets are on the rise," according to a chemicals
and materials analyst at Frost & Sullivan.

"However, the Bangladesh consumer durables industry is yet to see growth similar to that of
other developing countries like India and China, indicating the high potential of the market.
"The Bangladesh consumer durables market was an estimated 13.30 billion taka in 2011 and is
expected to grow at a year on year rate of 15 per cent over the next two to three years."
The semi-urban and rural population of Bangladesh has a preference for home-grown brands.
Local brands such as Walton and MyOne are growing rapidly by specifically targeting this
section of the population.
For example, while multinationals import and price 10 cubic-foot refrigerators at 30,000 to
33,000 taka, brands such as Walton price similar refrigerators at 20,000 to 22,000 taka so as to
specifically target the lower socio-economic classes of Bangladesh society.
Quality
Local brands are growing in popularity due to the perceived quality and comparatively lower
prices of these brands. Further, the availability and awareness of these brands is also rapidly
growing, closing the gap in brand equity between multinational and local brands.
"The key growth areas of the Bangladesh consumer durables industry has been the rural and
semi-urban consumption of fast moving consumer goods and consumer durables.
"A higher percentage of the rural population is consuming consumer durables when compared to
their urban counterparts," he said.