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Introduction

Runner Automobiles Limited their journey in the year 2000. The then they stared with only one

business unit “bike”. The vision is manufacturing and selling motorcycles in Bangladesh.

In the past 16 years, the company has invested a large amount of capital to introduce complete

set of advanced production technology and equipment. Till now, the company's production

capacity has reached 500 motorcycles per day. RAL's products cover 4 series of motorcycles

range from 50 cc to 150 cc, and about 15 models of motorcycles. It is to be mentioned here that

to create industry friendly environment, Runner Automobiles Ltd. is not only engaged in making

the gradual development to become a complete motorcycle manufacturer, but also providing

technical support, incentives and whole hearted co-operation to the progressive, small & medium

entrepreneurs to build factory for spare parts and accessories of motorcycles.

Gradually they have broadened their area of expertise and went to other businesses. But its

journey to the growth and prosperity has been no bed of roses. Since inception the Company

stands on the idea of fairness, honesty and general concern to its customers. Runner Automobiles

Ltd., the flagship company is holding the strong leadership position in motorcycle industry of

Bangladesh. Runner Group currently employs about 1820 people, who conduct the investments,

operations and trading at factories and offices all over Bangladesh. Runner Group will continue

to evolve and adapt to the changing world. Its largest asset is its competent team of hands-on-

managers and dedicated employees.

Vision, Mission and Strategy

Vision: To become the leading motorcycle manufacturer of the country with renewed focus on

expanding Company's footprint in the global arena.

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Mission: To manufacture motorcycle based on customers' requirements and ambition,

maintaining standard in style, technology and excellence, and to provide fulfillment and

prosperity for employees, dealers and other stake holders.

Strategy: To build a strong product range across categories, explore expansion opportunity

globally, continuously improve its operational effectiveness, aggressively expand its access to

customers and continue to invest in brand building activities.

Phase 01: Primary activities and

Screening

Kenya is an officially known as republic of Kenya. Kenya is named after Mt Kenya, the tallest

mountain in the country. Kenya gained independence from the United Kingdom in 1963. Its

capital and largest city is Nairobi. Mombasa is the second largest city. In 2012, the population of

Kenya was estimated to be around 43 million. Kenya is consider a developing country but it still

consider it an under developing country because of corruption and infrastructure. However, it is

still more developed than many other countries in Africa.

Why we prefer Kenya:

Regional entry point to East Africa .It is the possible expansion way in future

Regnable tariff rate in imported goods.

Potential market for transportation equipments

Import exemptions have been granted on Motorcycles.

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Government encourages entrepreneurship through public transport.

From our analysis 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 and growing potential market to enter with the motorcycle in Kenya.

Potentiality and Opportunity Analysis:

Kenya's economy is market-based with a few state-owned infrastructure enterprises and

maintains a liberalized external trade system. The government of Kenya is generally investment

friendly and develops the regulation system to simplify both foreign and local investment, and

creating export processing zone. The export processing zone is expected to grow rapidly through

input of foreign direct investment. Kenya is now well-developed social and physical

infrastructure for exporting and foreign investment.

ECONOMIC Situation: The motorcycle industry continues to be one of the promising and

very fast sectors, with a huge contribution to the Kenya’s economy. From 2007 to date, the

motorcycle industry has seen tremendous growth, from about 16,000 units to over 100,000 units.

In 2014 the industry contributed over 2.2 billion shilling in form of direct taxes only. Through its

assembly plants and distribution network, the industry also continues to offer employment

opportunities to over 100,000 Kenyans as per its planned road map.

The industry is growing fast and because of Kenya’s government friendly attitude towards the

foreign investment and exporting. For this purpose employment rate is going higher which affect

their per capita income, GDP and GNP positively. 2015 GDP per capita of Kenya was 1588 USD

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which increased 6.2 % and its GNP per capita was 3304 USD and per capita income is 1160

USD according to World Bank.

CULTURE: The culture of Kenya consists of multiple trends. Kenya has no single prominent

culture that identifies it. It instead consists of various cultures practiced by the country's different

communities. The make-up of Kenyans is primarily that of 13 ethnic groups with an additional

27 smaller groups. The majority of Kenyans belong to ‘Bantu’ tribes such as the Kikuyu, Luhya

and Kamba. There are also the ‘Nilotic’ tribes such as the Luo, Kalenjin, Maasai and Turkana.

The ‘Hamitic’ people include the Turkana, Rendille and Samburu. Around 13% of the

population is of non-African descent, Indian, Arab and European. As through there is multiple

trends in Kenya, Kenyans enjoy a reputation as hard workers and at 7 o’clock the streets are

crowded. So Motorbikes, especially those plying the trade popularly known as Motorbike Taxi

service, have become an important transport sector for Kenya’s people , most importantly

creating jobs to many Kenyan youths especially in the rural areas. This kind motorbike

transportation becomes the part of their life style and it helps their communication and

employment sector.

COMPETITIVE ANALYSIS: the motorcycle market of Kenya is relatively intensified.

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, Runner 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 market often 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.

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Even though price is not always the main basis of competition, the intensity of competition is

still very high. Major Competitors in Kenya in the current date are:

• Chinese Haojin Motorcycles

• Bajaj Motorcycles

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. But the ministry now more focusing on the developing and increasing the

pave road.

POLITICAL STABILITY AND LEGAL REQUIREMENTS: Kenya’s government is

very friendly and very cooperative to the foreign investing and exporting. Kenya’s economy is

run by the foreign investment and export. Government earns almost 2.2 billion shelling taxes

from them and increases GNP 2780 USD to 3304. So consider that earning it indicates the good

political stability in Kenya for exporting and foreign investment. If a foreign company wants to

establish a business in Kenya they have to register as a branch office of foreign company. There

is no hard and fast rule legal requirement in Kenya. They set the 9% tariff rate all the import

good and 25 % vat on imported bike.

Constraint in Kenya

Kenya is a developing country. There are many business opportunities in Kenya, the challenges

are a hindrance to the opportunities. It is therefore important to know what these challenges are

and how they can be approached before investing in Kenya.

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1. Corruption and Insecurity: Give something small or buy tea” Buying tea does

not necessarily mean taking a person for a cup of tea but it means giving that person

some money for work to be processed or done at a fast rate. It is very common in Kenya.

This is due to the fact that foreign investors have to pay extra costs in the form of bribes

in order to get licenses or government permits to conduct investment, and as a result of

this it raises the costs of investment.

2. High cost of Energy: According to an article published in Allafrica.com Kenyan

goods were becoming increasingly uncompetitive due to rising energy costs. Energy costs

alone constituted over 40 per cent of the total manufacturing costs, driving a 33 per cent

increase in overall costs

3. Poor Infrastructure: Infrastructure is a key ingredient for achieving all the

Millennium Development goals. According to 2013 report Kenya has total 160,878 km

road from them 11819 Km road are paved and rest of the road 1, 49,689 km road

unpaved. So this proves that Kenya is far behind from the development of the

infrastructure. From enterprise surveys suggests that infrastructure constraints are

responsible for about 30 percent of the productivity handicap faced by Kenyan firms,

with the remainder being due to poor governance, red tape, and financing constraints.

Phase 02: Define the Target Market &

Adapting the Marketing Mix

Define the target market is what customer we targeted for, who are the potential buyer, who has

the ability to effort it.

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Marketing Mix is the controllable factor which is designed by company. Concerning about the

target market the company design it, how their product would be, price, how to distribute and

where and how to promote the product in the market

Target Market

For defining the target market we analyze their income level of social class people. So we see

that in Kenya very hard to find to higher class people but middle class people rate is very higher

than higher class and growing the middle class people. So according to the Kenya National

Bureau of Statistics, the Kenyan middle class can be defined as anyone Income between 40652

Shilling to 6,999 Shilling. The other thing is in Kenya a quite large number of the middle class

people are involving with “Motorcycle taxi service” business and profession. It is now very

popular ride in Kenya.

So considering the fact we use the demographic and psychographic segmentation. So according

to our product offering, price, occupation, income and social class people we are targeting

middle class people and also those people who involve with “Motorcycle Taxi service” ride

professions.

Brand Positioning

Naturally there is an art to positioning a brand. Positioning a right way a brand to tide up the new

customer of brand but in the wrong way it can ham per a brand. As consider Runner Motor bike

is a new brand in Kenya. So setting a place in consumer mind is too much important for our

brand

So Runner Motor Bikes is mainly giving the transportation benefit who cannot afford a motor

bike. In Kenya motorcycles demand are in growing stage. People are buying motor bicycles of

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different brand from different countries. But Runner is in the introductory stage in Kenya. Brand

image of Runner is the first producer of cost effective and fuel efficient products.

POINT OF DIFFERENCE (PODS)

POINTS OF PARITY (POPS)

Runner is in the introductory stage in

Kenya. Brand image of Runner is the

first producer of cost effective and fuel

efficient product.

The common parity of Motor bike in

Kenya is contains with stylish and

speedy which gives a men ultimate

riding excitement and experience.

Adapting the Marketing Mix

When a company comes from the other country it belongs from that culture. A new company

always deals with that, because the always need to design the 4p’s according to the culture of

that country where they come for business

PRODUCT: Runner motor-bike which is fuel efficient, low price and good in quality which

will satisfy our target customers by fulfilling their demand. Runner target customers can use it

for both personal and commercialization uses. For Kenya, Runner Group of company suggested

5 models for Kenyan road condition. Our Product models and specifications are given below:

Bike Name Runner

Cheeta

Freedom

Royal ES

Dayang

Runner

Galaxy

Freedom

Runner

Royal+ 110

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Type

Single

Cylinder, Four

Stroke, Air

Cooled, Petrol

Engine

Single

Cylinder, Dour

Stroke, Air

Cooled, Petrol

Engine

Single

Cylinder, 4

Stroke, Air

Cooled,

Petrol

Engine

Single

Cylinder,

Four

Stroke, Air

Cooled,

Petrol

Engine

Displacement

(cc) 100 97cc 79.65 109cc

Max Power 5.2kw/8000rpm 4.8kw/8000rmp 4.58kw/8000

rpm

6kw/7500

RPM

Top Speed 70 KM/H 75 KM/H 80 KM/H 85 KM/H

Starting

Method

Kick and

Electric Electric & Kick

Electric &

Kick

Electric &

Kick

Ignition

Type CDI CDI CDI CDI

Gears 4 4 4 4

Others Digital Speed

Meter Gear Indicator

Gear

Indicator

Digital

Speed

Meter

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Product Adaptation: Product adaptation is the process of modifying an existing product so

it is suitable for different customers or markets. An adaptation strategy is particularly important

for companies that export their products because it ensures that the product meets local cultural

and regulatory requirements.

In Kenya we know, people not only use bike as their personal vehicle but also use bike as their

living material. In Kenya most of the people are use the bike ride for moving one place to

another. They carry three or four person in bike. So we want to represent some 3 sitter bike in the

market which can help to their profession. We also offer the fuel and cost efficacy bike which

also fall under the adaptation strategy.

PRICE: In Kenya’s market Runner will compete with some big companies like Honda, Bajaj

Yamaha etc. As Runner main target customer is Middle class. Runner has to set their prices

based upon their target customers purchasing power and perceived value. To do Business in

Kenya Runner will face Trade barrier like 9 percent tariff which stop to set proper price on their

product. Furthermore Runner has to consider 25 percent vat to set their price. After Including

Shipping cost which is $1500 USD per container and other cost Runner Motorcycles price will

be

Motor Bike Model Price (KES)

Runner Cheeta 92,000Shilling

Freedom Royal ES 88,000 Shilling

DAYANG RUNNER GALAXY 70,000 Shilling

Freedom Runner Royal+110 95,000 Shilling

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Place: Our target customer is middle class People. We will follow indirect Intensive

distribution channel to reach our customer. Mainly we are collected the main cities of Kenya like

NAIROBI, KISUMU, MOMBASA, NAKURU, THIKA etc. RUNNER will go as foreign

investment company in Kenya. They will set some Show Room in major cities. Runner will also

go through some retail and wholesale company for countrywide distribution.

Runner also creates the market demand by using the pull strategy. This strategy helps us to grab

customer by promotion and have to give a standard commission to the distributer.

Promotion: In every marketing plan Promotion is a big part of a plan and so for ours. We are

using some selective communication tools to promote our products. Promotion can help us to

communicate with our customer and we also give them specific knowledge about our product.

It’s not only help to increase our sales also to help to create an image in market.

Advertising: Advertising is the activity of attracting public attention to a product or

business, as by paid announcement in the print, Broadcast or electronic media.

Advertising has a greater ability to reach a large number of people. RUNNER Ad makes

contact between advertiser and the target audience.

Marketing Public Relations: Public relation encompasses set of activities intended

to enhance the image of the marketers to create good will. Public relation tries to

influence people’s attitude towards the company or products. RUNNER can gain its

objectives by sponsoring HIV awareness program, educational event, and environmental

seminar and issues.

Kenya are paralleled with Kenyan culture and as old as the archeological trivia of the

trace of the origin of mankind. Various indigenous traditional sports have prevailed in

Kenya as elements of culture and a way of life since the history of mankind so that’s

Runner will sponsoring traditional sports event to promote their brand.

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MEDIA DECISION AND PLANNING

Media decision is so much important for our ad. if we don’t chose the perfect media than it will

never possible to grab the market. If our target customer don’t see those TV channel than it will

never work. So first we need to identify what kind of media they use.

TV CHANNEL: To consider our Target audience we are use K24, Family,GBC, Kass,

KBC, KTN,NT, Citizen TV. we will show our advertisement during the pick our when

this time people are mostly spent their free time. And they watch TV for news, movie

etc. so that’s why this is the best time for showing our ad and we will also show our ad

in other part of the day. In this time our ad will show in different TV channel.

RADIO: We are also use radio for our ad. We are using Kass FM, Kenya Bible Truth

Radio

NEWSPAPERS: We are also use different newspaper for our ad like The star,

Business Daily and The People etc.

SOCIAL MEDIA: We are also going for Advertisement in social media like facebook

twitter because a group of our customer they spend their Maximum time in internet.

That’s why we are going for internet ad as well. But we are more focused on internet ad

because our target customer.

DIGITAL BILLBOARDS: We are using billboard for our product. We are using

billboard ad in different place like Nairobi. Mambasa, Nakuru, kisumu, thika Malindi

etc.

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Phase-03 Marketing Plan

SWOT Analysis: SWOT analysis is a structured planning method used to evaluate the

strengths, weaknesses, opportunities and threats involved in Runner business venture

STRENGTHS:

All other existing motor bikes in Kenya are high expensive. In This Case, Runner

has a competitive advantage of lower price.

If Runner can maintain strong distribution channel among all potential places among

Kenya Runner will be benefitted over other competitors

If Runner can go through a proper cost effective way of shipment, then exporting

cost will be at minimal point.

WEAKNESSES:

Because of Exportation Runner may face difficulty of losing lack of scale in

production

One of the weaknesses of exportation of Runner is weaker customer service.

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As we are exporting Runner so new way of production will be take time to be

effective in Kenya

OPPORTUNITIES:

Though Runner 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 Runner bikes are more fuel efficient than others

one.

Saving money and themselves from traffic jams is increasingly becoming

important for Kenyans. Escalating fuel costs and saving money are luring

Kenyans away from other brands.

THREATS

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

Runner may face problem due to intense competition of reputed company brand

motor bikes.

Due to availability of reputed company brand motor bikes, Runner may find

difficulty of getting customer attention.

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If the economy of Kenya and political situation does not go well, then cost will

be increased therefore, profit margin will be decreased.

Objectives and Goals

Since Runner is new in Kenyan market, Runner primary objective will be to create perception

and awareness about brand. Runner will select media mix is the perfect combination to achieve

their goals. For this perception-creating purpose Runner will use media such as newspaper,

television, radio, social media, digital advertisement and billboard advertisement. Social media

and digital advertisement is important because of the mass coverage but also the high reach of its

impacts. Moreover Runner will also use TV ad as well. Runner Public relation department will

set great promotional campaign to create brand awareness. After completing primary objectives,

Runner will set their secondary objective which is increasing sells of their motor bike in Kenyan

Market. Runner will develop the strong distribution channel so the motor Bike will make

available on the market because strong distribution channels will helpful to distribute and

increase the sales quickly.

MODE OF ENTRY

Runner will enter in Kenyan market through foreign direct investment. In Foreign Direct

Investment Runner acquires a substantial controlling interest in a foreign firm above 10 per-cent

share or sets up a subsidiary in Kenya. Foreign direct investment is made in the form of fixtures,

machinery, equipment and buildings. This investment is achieved or accomplished mostly via

mergers & acquisitions. In recent year Kenyan government passed a law on public-private

partnerships (PPP) in order to attract foreign investment. The government has put in place an

extensive program of privatization in various sectors such as food processing, transportation,

construction, equipment, education, energy, etc. Kenyan Government authorities also

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declared special economic zones and export processing zones benefit from targeted incentives.

From this point of view Runner has great opportunity to enter by foreign direct investment.

BUDGETING:

Names of

media

Year-1 Year-2

Year-3 Year-4

Product 40,000,000 40,000,000 60,000,000 70,000,000

Advertising

(Tv)

20,000,000 30,000,000 40,000,000 45,000,000

Bill Board 8,00,000 8,00,000 10,000,000 10,000,000

Event 80,000,00 9,000,000 10,000,000 15,000,000

News paper 7,00,000 9,00,000 1,500,000 2,000,000

Radio 3,000,000 4,000,000 4,500,000 4,500,000

Social media 50,000 50,000 60,000 60,000

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Public

Relation

8,000,000 10,000,000 20,000,000 35,000,000

Total 80,550,000 94750000 1,46,060,000 181,560,000

Conclusion

So we find a huge opportunity and potential in the Kenya’s market. Road, transportation system

not too much develops although but there is lots of way to do business by targeting the lower

market. As a Bangladeshi company it is the best place for investment. In the past we trade only

jute and medicine with Kenya. But it will be the new trade factor in our country and generate

some foreign money for our country. It is possible because of Kenya’s government friendly

attitude towards the foreign investment and they want some foreign company to country which

also generate the income for Kenya

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References

INTERNATIONAL MARKETING :15th Edition: Philp R.Cateora, Mary C. Gilly,

Jhon l, Graham

http://www.hapakenya.com/2015/05/06/motorcycle-assemblers-launch-new-association/

http://blog.iese.edu/africa/2014/10/15/kenyas-middle-class-and-economic-growth/

http://data.worldbank.org/indicator/NY.GNP.PCAP.PP.CD

https://www.gfmag.com/global-data/country-data/kenya-gdp-country-report

http://www.kenya-advisor.com/kenya-culture.html

http://www.kenyabuzz.com/lifestyle/motorcycle-companies-form-maak

https://www.cia.gov/library/publications/the-world-factbook/geos/ke.html

http://www.businessdailyafrica.com/World-Bank-confirms-Kenya-lower-middle-income-

status/-/539546/2773210/-/u39btjz/-/index.html

http://www.runnerbd.com/csr.php

https://brandkemistry.wordpress.com/2013/02/05/who-exactly-are-the-kenyan-middle-

class/