Business Planning

This report provides a comprehensive analysis of business planning, including market segmentation, target market, marketing plan, competitor analysis, pricing strategy, and financial analysis. It also offers insights into the unique selling points of the business idea and its feasibility in the UK market.

Business Planning
3 / 1 5 / 2 0 1 9

Business Planning 1
Contents
Introduction......................................................................................................................................4
Enterprise Idea.................................................................................................................................5
Management profile.........................................................................................................................6
Unique Selling Points (USP)...........................................................................................................7
Market Segmentation.......................................................................................................................8
Target Market..................................................................................................................................9
Marketing Plan and Strategy...........................................................................................................9
Marketing mix.............................................................................................................................9
Competitor’s analysis....................................................................................................................10
Porter’s Five Forces Analysis....................................................................................................10
SWOT Analysis.........................................................................................................................11
Pricing and Funding Strategy........................................................................................................12
Financial analysis...........................................................................................................................12
Break even analysis...................................................................................................................13
Sales forecasting........................................................................................................................14
Cash flow projection..................................................................................................................15
Plans for Future Growth................................................................................................................16
Applying Ansoff Matrix for the future growth of business.......................................................16
Conclusion.....................................................................................................................................18

Business Planning 2
References......................................................................................................................................19
Appendix........................................................................................................................................22
Appendix 1.................................................................................................................................22
Appendix 2.................................................................................................................................22
Appendix 3.................................................................................................................................23

Business Planning 3
Executive summary
The report is prepared with the motive to gauge the market as well the financial viability
related to the business idea that is propose in order to evaluate the benefits and
drawbacks of the project that is proposed. This demonstration helps the company to
commit the essential resources and to put idea into the practise.
The enterprise idea is to create Catalytic Converter (NED’s Catalytic Converter) only for
Diesel Cars so that they can be used on the roads of UK by manufacturing 100% fresh
emissions. The innovative concept is known with the name of Catalytic engine
technology PVT. The report findings include the unique selling points that attract the
customers in the market. In addition, it includes the strategies of company with the
support of marketing mix. The competitor’s analysis is explained with the help of
porter’s five forces and SWOT analysis. The findings related to the financial analysis
shows that different concepts that include Break-even analysis, Sales forecasting as well
as the cash flow projections.

Business Planning 4
Introduction
The rise in the number of vehicles on road leads to the concern for the reduction in the
emission with the motive to have the better air quality. Catalytic converter forms the one
of the most critical components that are used by automobile producer with the motive to
reduce toxicity related to the emissions in the vehicle by eliminating the substances that
is harmful (IBIS World, 2018).
In the research, this has been found that Europe region is predicted to dominate by the
catalytic converter market owing to the increasing pressure related to the automobile
manufacturers that are present in the region. The increasing research and development
activities with the introduction of stringent emissions norm like Euro- VI are
contributing effectively in the growth of catalytic converter market in the Europe region.
This has been found that the market of catalytic converter is expected to reach USD 73.1
billion by the year 2025 from USD 42.2 billion in the year 2018, at a CAGR of 8.10%
(Grand View Research, 2018). (Refer Appendix 1)
Thus, the report is formed with the aim to evaluate the business idea and its feasibility in
the market of UK with the support of its strategies.

Business Planning 5
Enterprise Idea
The enterprise idea is to form the Catalytic Converter (NED’s Catalytic Converter) only
for Diesel Cars, as this will help the automobile manufacturing companies to produce
100% fresh emission diesel cars. This has been found in the recent research that many
diesel cars are ditched for good in UK in 2018. This is the reason due to which the
people are unable to buy these vehicles.
The below given is the list of banned cars in UK: -
 Bentley: Bentayga
 Fiat Chrysler Automobiles (Alfa Romeo, Fiat, Jeep, Maserati): Fiat 500X, all
models by 2022
 Seat: Toledo
 Skoda: Fabia
 Subaru: All new models

Business Planning 6
 Honda: CR-V
 Toyota: Avensis, RAV4, Verso
 Vauxhall: Corsa
 Kia: Rio, Venga
 Mitsubishi: ASX, Outlander
 Porsche: Macan, Panamera
 Peugeot - Potential future models
 Suzuki: Vitara, SX4 S-Cross
 Toyota: Avensis, RAV4, Verso
 Vauxhall: Corsa
 Volvo: All new models
The idea of business not only provide the assistance to the people who bought these cars
but will help the automobile manufacturing companies as they will start producing those
cars over again. The idea can expand by manufacturing NED’s Catalytic Converter for
petrol cars but also begging will emphasis only for diesel cars, as there is huge gap
present in the market.
Management profile
Catalytic engine technology PVT will be a UK private company that will be owned and
operated by the solo proprietor. The business idea is new for the small business due to
which it has a simple organisational structure. This business will be operated with the
motive to deliver the effective engine to the manufacturers.

Business Planning 7
The company will conduct the manufacturing of engine with the use of catalytic
converter technology. Thus, owner makes use of skills and capabilities to track the
operations to ensure that there is no loophole in operations. Moreover, the testing of
engine is also undertaken so that they can offer the products with proper assurance.
The single owner of company handles the deals and clients for technology to the
automobile manufacturing companies so that they can meet the expectations of the
customers present in the UK market.
Unique Selling Points (USP)
Catalytic engine technology PVT aims is to offer a 100% free diesel emission cars to the
people of UK that enhance their experience. The unique selling points of these
converters is that it operate approx. 90% of the efficiency which is virtually eliminating
the odor of diesel and providing the assistance with the motive to reduce the visible
particulates. There is majorly two-way oxidation catalytic converter, three-way
oxidation-reduction catalytic converter as well as the diesel oxidation catalyst. The
company majorly offer the diesel oxidation catalyst in UK market considering the
situation.
The major USP is that it converts oxygen with Carbon monoxide; unburned
hydrocarbons are converted to produce carbon dioxide and water. In addition to this,
converter reduces the oxides of the nitrogen (NOx).

Business Planning 8
Market Segmentation
Market segmentation is the process of dividing a market of the potential customers into
different groups or segments that is based on the different characteristics (Armstrong,
Adam, Denize and Kotler, 2014). The market segments that are majorly focused by the
company include automotive manufacturing companies that are present in UK market.
Further, many customers are using cars without the Diesel catalytic converter who can
get it fix in their cars. Thus, the customers who are present in the market are also
considered as one of the market segment (Rothaermel, 2015).

Business Planning 9
The image given above shows that demand for catalytic converter is increasing from the
year 2014. Further, the need of the catalytic converter by the manufacturer and
customers will increase in the near future.
Target Market
The target market include particular group of customers at which the products and
services are aimed by the company (Baker, 2014). Catalytic engine technology PVT
Company makes use of multi-segment targeting. This strategy means that company
target more than two segments for offering the products. Company targets the
automotive manufacturers of diesels cars as well as the customers who are making use
of the diesel cars in the market. The manufacturing automotive brands are considered as
the primary target as they are the one who can offer high revenue to company.
Moreover, the manufactures are not able to maintain their sales for diesel cars due to its
emissions.
Marketing Plan and Strategy
Marketing mix
Product
Catalytic engine technology PVT will make use of the differentiation product strategy
due to which they offer Diesel Oxidation Catalyst, two-way Catalytic convertor and
three-way Catalytic convertor and many others. In addition, this includes the material
like platinum, palladium, rhodium and many others.

Business Planning 10
Price
The selling price of the very unit of the Catalytic converter varies from the car model
and type due to which it is difficult to estimate the same. However, the installation takes
about an hour on average depends on the vehicle with the total cost for parts and labor
can be $300-$3,000 or more. The company will ensure to offer effective prices to attract
more customers that help them in earning a good amount. For instance; In the UK
market, the prices of catalytic converter with only 80-90% emission starts with $350.
However, the company ensure to offer 100% free emission will be offered at $330.
Promotion
Catalytic engine technology PVT promotes the products with the effective use of
website and social media platforms. This is considered as emerging method with the
help of which company can grab the attention of potential as well as the new customers.
Thus, this shows that the company make use of digital as well as low cost promotion
strategy. In addition to this, the personal selling is also used by the company for
promoting the products (Išoraitė, 2016).
Place
The place is the location from where the customers of the company can make the
purchase of the Catalytic converter (Luca and Suggs, 2010). In London, UK the
company will open a small office with the manufacturing unit where products are
produced as well as displayed for the customers so that they can purchase them. Further,
the products of the company are also available through website as the medium of online

Business Planning 11
so that customers can purchase the products through online mode. The location requires
company to take the license for operating the business.
Competitor’s analysis
Porter’s Five Forces Analysis
Porter’s five forces analysis has been done to evaluate the combination of the different
external factors that can influence the working of the company in the market (Chernev,
2018). The industry of automotive Catalytic converter is emerging and expected to
increase in the coming years.
The below given is the analysis of automotive catalytic converter industry: -
Porter’s Five Forces Forces
Bargaining power of customers Moderate
Bargaining Power of Suppliers High
Threat of New Entrants High
Threat of Substitutes Low
Competitive Rivalry High
SWOT Analysis
Strength

Business Planning 12
The company strength is that it is directly contacting the manufacturers who can offer
them a platform to increase their business activities as well as operations. Moreover, the
brand provides the different products to the manufacturer in the single roof.
Weakness
The major weakness of the company is that it is operating the business in the small-scale
industry due to which manufacturing automobile companies does not give the
consideration when the other well-known brands are present in market.
Opportunities
The opportunities that are available in the industry that it is growing in UK and demand
for the products will increase. In addition to this, currently the catalytic converters are
available for the diesel cars but it has the opportunity to remain available in petrol
version.
Threat
The threat, which is faced by the company in the market of UK, is increasing number of
threats that are present in market.
Pricing and Funding Strategy
Pricing strategy
The company make use of the competitive price strategy in which they keep the price
after conducting the analysis of the competitors.
Funding strategy

Business Planning 13
The funding strategy that is implemented by the company is based on the owner savings
as well as the loan from the bank. The nature of business include high investment
because company need to purchase equipment and machinery. The total amount of
investment, which is required, is £ 126,953.00
Financial analysis
It is essential for the every business to assess the financial viability of the business idea
due to which the company make use of different concepts (Lovelock and Patterson,
2015). The concepts, which are used, include sales projections, break-even analysis, and
cash flow statement.
Break even analysis
The break-even analysis is a technique that is widely used by the production
management as well as the management accountants of the company. This analysis will
reflects the total variable and fixed cost that are compared with the sales revenue with
the motive to identify the sales volume, sales value or production at which the business
neither face a loss nor a profit (Cafferky and Wentworth, 2014).

Business Planning 14
1010
1020
1030
1038.4552
1040
1050
1060
1070
1080
1090
1100
1110
0
50000
100000
150000
200000
250000
300000
350000
400000
Break-Even Analysis
No of units
Total sales
Total cost
Axis Title
The above given is the break-even analysis which shows that at 1038.46 units company
will find the situation of no profit and no loss. This is the point where both total cost and
total sales of the company are intersecting with each other. (Refer Appendix 2)
This has been found that fixed costs of the company are independent from the level of
activity. The fixed cost for the company is calculated which is clear from the table given
below that shows the amount invested by the owners of the company.
Fixed cost Amount
Machinery
£
15,000.00
Research and
development
£
10,000.00

Business Planning 15
Lease of location
£
101,953.00
Total
£
126,953.00
The table above shows the fixed cost is given according to the nature of business.
Further, the variable cost of the business cannot be determined because it varies a lot.
However, some of the estimation is done for estimating the break-even analysis.
Sales forecasting
The table given shows the sales forecasting assuming based on three scenarios which
include short-term, medium-term and long-term.
Sales Forecast
Product Minimum Sales Average sales Maximum Sales
Catalytic convertor 1038 1070 1110
Digital Catalytic convertor 750 units 820 units 860 units
Two-way 120 units 50 units 70 units
Three-way 168 units 200 units 180 units
Price
£
330.00
£
330.00
£
330.00
Daily sales
£
13,180.39
£
13,580.77
£
14,088.46
Working Days per week 6 days 6 days 6 days
Total amount of sales
monthly
£
342,690.22
£
353,100.00
£
366,300.00
Total amount of sales
annually
£
4,112,282.59
£
4,237,200.00
£
4,395,600.00

Business Planning 16
Cash flow projection
The above given is the cash flow statement for the 12 months that helps in assessing the
financial viability of the enterprise idea. The new cash flow and outflow of the company
is evaluated that shows the profit earned by the company at the end of the year. It
includes for all the initial investment that is essential for the business start-up by taking
into the account of all the fixed as well as operating expenditure, which include
trailer/van, liability insurance, machinery, equipment, and many others.
Plans for Future Growth
Applying Ansoff Matrix for the future growth of business
The plans of the company are explained with the help of the Ansoff matrix that include
the business strategy that is adopted by the company (David, 2011).

Business Planning 17
Source [(Wilson and Gilligan, 2012)]
 Market development: - Company will apply development strategy in which they
expand the business in different market across the world (Kotler, 2015).
 Market penetration: - Company will make use of market penetration for
promoting the services in the market with the motive to acquire the market share
(Hollensen, 2015).
 Product development: - In the near future, the company can apply the product
development by applying the catalytic converter for the petrol cars.

Business Planning 18
Conclusion
In the present era, the automotive transportation is considered as the largest single
source for the air pollution and lead to the global concern that proves the need of the
catalytic converter. The location of UK is considered as ideal place for attracting the
different target markets and it offers a unique as well as original product through an
effective customer service. The report will include the competitor’s analysis as well as
discussion on the strategies of the company. In the end, the financial projection of the
company is done which shows that company is feasible enough in financial perspective.

Business Planning 19
References
Armstrong, G., Adam, S., Denize, S. and Kotler, P. (2014) Principles of marketing. 6th
edition. Welbourne: Pearson Australia.
Baker, M. J. (2014). Marketing strategy and management. London: Palgrave Macmillan.
Cafferky, M.E., and Wentworth, J. (2014) Breakeven Analysis: The Definitive Guide to
Cost-Volume-Profit Analysis 2nd ed. U.S: Business Expert Press.
Chernev, A. (2018) Strategic marketing management. Chicago:Cerebellum Press.
David, F.R. (2011) Strategic management: Concepts and cases. India: Pearson/Prentice
Hall.
Grand View Research (2018) Industry Insight [Online]. Available from:
https://www.grandviewresearch.com/industry-analysis/automotive-catalytic-converter-
market [Accessed on 15th March 2019]
Hollensen, S. (2015) Marketing management: A relationship approach. India: Pearson
Education Limited.
IBIS World (2018) Catalytic Converter Manufacturing Industry in the US [online].
Available from https://www.ibisworld.com/industry-trends/specialized-market-research-
reports/industrial-machinery-gas-chemicals/vehicle-component-manufacturing/catalytic-
converter-manufacturing.html [accessed 15 March 2019]
Išoraitė, M. (2016) Marketing Mix Theoretical Aspects. International Journal Of
Research – Granthaalayah, 4(6), 25-37.

Business Planning 20
Kotler, P. (2015) Framework for marketing management. India: Pearson Education.
Lovelock, C. and Patterson, P. (2015). Services marketing. Australia: Pearson.
Luca, N.R. and Suggs, L.S. (2010) Strategies for the social marketing mix: A systematic
review. Social Marketing Quarterly, 16(4), pp.122-149.
PR News Wire (2018) Automotive Catalytic Converter Market Size to be Valued Close
to $270 Billion By 2024 | Million Insights [online]. Available from
https://www.prnewswire.com/news-releases/automotive-catalytic-converter-market-size-
to-be-valued-close-to-270-billion-by-2024--million-insights-680095993.html [accessed
15 March 2019]
Rothaermel, F.T. (2015) Strategic management. UK: McGraw-Hill Education.
Wilson, R.M. and Gilligan, C. (2012) Strategic marketing management. New York:
Routledge.

Business Planning 21
Appendix
Appendix 1
Appendix 2
No of
units Total sales
Variable
cost Fixed cost Total cost Profit
1010 333,300 209,392 126,953 336,345 (3,045)
1020 336,600 211,486 126,953 338,439 (1,839)
1030 339,900 213,601 126,953 340,554 (654)
1038.46 342,690 215,737 126,953 342,690 0
1040 343,200 215,737 126,953 342,690 510
1050 346,500 217,895 126,953 344,848 1,652
1060 349,800 220,073 126,953 347,026 2,774
1070 353,100 222,274 126,953 349,227 3,873
1080 356,400 224,497 126,953 351,450 4,950

Business Planning 22
1090 359,700 226,742 126,953 353,695 6,005
1100 363,000 229,009 126,953 355,962 7,038
1110 366,300 231,299 126,953 358,252 8,048
Appendix 3
Cash Flow for
[Catalytic engine
technology PVT ] in
[2019]
CASH
FLOW July Aug
ust
Sep
tem
ber
Oct
obe
r
No
ve
m
be
r
De
ce
m
be
r
Ja
nu
ar
y
Fe
br
ua
ry
M
ar
ch
Ap
ril
M
ay
Ju
ne
OPENIN
G
BALANC
E
£
126,
953
£
281,
488
£
598,
701
£
950,
713
£
1,3
40,
33
1
£
1,7
71,
25
9
£
2,2
45,
06
7
£
2,7
65,
82
8
£
3,3
46,
24
5
£
3,9
86,
81
0
£
4,6
92,
87
2
£
5,4
72,
07
0
Cash
incomin
g
Sales
£
333,
300
£
366,
630
£
403,
293
£
443,
622
£
487
,98
5
£
536
,78
3
£
59
0,4
61
£
64
9,5
07
£
71
4,4
58
£
78
5,9
04
£
86
4,4
94
£
95
0,9
44
Total
incomin
g
£
333,
300
£
366,
630
£
403,
293
£
443,
622
£
48
7,9
85
£
53
6,7
83
£
59
0,4
61
£
64
9,5
07
£
71
4,4
58
£
78
5,9
04
£
86
4,4
94
£
95
0,9
44
Cash
outgoin
g
Lease
£
101,
953
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
Resear
ch and
develop
ment
£
10,0
00
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
Machin
ery
£
15,0
00
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-

Business Planning 23
Purcha
ses
(Stock
etc)
£
17,6
30
£
20,2
75
£
22,7
07
£
25,4
32
£
28,
484
£
31,
902
£
35,
73
1
£
40,
01
8
£
44,
82
0
£
50,
19
9
£
56,
22
3
£
62,
97
0
Adverti
sing &
marketin
g
£
4,89
6
£
-
£
-
£
-
£
-
£
-
£
4,8
96
£
-
£
-
£
-
£
-
£
-
Recruit
ment and
Selection
£
21,6
63
£
21,6
63
£
21,6
63
£
21,6
63
£
21,
663
£
21,
663
£
21,
66
3
£
21,
66
3
£
21,
66
3
£
21,
66
3
£
21,
66
3
£
21,
66
3
Price
for
creating
website
£
500
£
-
£
-
£
-
£
-
£
-
£
50
0
£
50
0
£
50
0
£
50
0
£
50
0
£
50
0
Transp
ortation
cost
£
6,91
0
£
6,91
0
£
6,91
0
£
6,91
0
£
6,9
10
£
6,9
10
£
6,9
10
£
6,9
10
£
6,9
10
£
6,9
10
£
6,9
10
£
6,9
10
Provisi
on for
insuranc
e
£
-
£
-
£
-
£
-
£
-
£
2,5
00
£
-
£
-
£
-
£
-
£
-
£
2,5
00
Marketi
ng and
other
misc.
cost
£
213
£
571
£
-
£
-
£
-
£
-
£
-
£
57
1
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
More… £
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
£
-
Total
outgoin
g
£
178,
765
£
49,4
18
£
51,2
80
£
54,0
05
£
57,
05
7
£
62,
97
5
£
69,
70
0
£
69,
09
1
£
73,
89
3
£
79,
84
2
£
85,
29
5
£
94,
54
2
Month
ly cash
balance
£
154
,53
5
£
317,
212
£
352
,01
3
£
389,
617
£
43
0,9
28
£
47
3,8
08
£
52
0,
76
2
£
58
0,
41
7
£
64
0,
56
5
£
70
6,
06
2
£
77
9,
19
9
£
85
6,
40
2
CLOSI
NG
BALANC
E
£
281
,48
8
£
598,
701
£
950
,71
3
£
1,34
0,33
1
£
1,7
71,
25
9
£
2,2
45,
06
7
£
2,
76
5,
82
8
£
3,
34
6,
24
5
£
3,
98
6,
81
0
£
4,
69
2,
87
2
£
5,
47
2,
07
0
£
6,
32
8,
47
2