Business Plan: NED's Catalytic Converter for Diesel Cars

This project outlines a detailed business plan for NED's Catalytic Converter, focusing on the market for diesel car emissions solutions in the UK. The plan begins with a business overview, including the value proposition of providing catalytic converters to reduce emissions in diesel vehicles, supported by market research and analysis of industry trends. The plan then identifies target customer profiles, including automobile manufacturers, distributors, and end-users, and details marketing strategies to reach these segments, including digital marketing and personal meetings. A competitive analysis is also included, examining key competitors such as BASF, Johnson Matthey, and CATALER, and outlining strategies to differentiate NED's Catalytic Converter. Finally, the project discusses operational aspects, including production, distribution, and the overall feasibility of the business concept. The plan leverages market data, customer surveys, and competitive insights to support its strategic recommendations and assesses the need for the product in the UK.

1.NED’S CATALITYC CONVETER BUSINESS CONCEPT
1.1 BUSINESS OVERVIEW
What is your business (or value) proposition and why do you think it’s a good idea?
The business 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 such as Skoda Fabia, Toyota Avensis and Vauxhall Corsa are ditched for good in UK in 2018 (Smith,
2018). This is the reason due to which the people are unable to buy these vehicles. 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.
Designing a Catalytic Converter is a good idea because it makes 100% free diesel emission cars for the customers of the
United Kingdom. Besides this, the key motive of designing Catalytic Converter is that it helps in converting oxygen with Carbon
monoxide; unburned hydrocarbons are converted to produce carbon dioxide and water. In addition to this, the converter reduces
the oxides of the nitrogen. Besides this, it makes use of differentiation product strategy, which inspires it to offer Diesel
Oxidation Catalyst and three-way Catalytic converter.
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How have you confirmed there is a need for your business?
Overview of the Catalytic Converter Market in UK
In a report published during 2017, it is reflected that the market for catalytic converter in UK has a compound annual growth rate
of around 8.05 percent while the same is taken to reach to a net worth of $55.16 (£41,69) billion by the close of 2021 (PR
Newswire , 2017).
Market trends in the Catalytic Converter industry
The market trends in the catalytic converter industry on a global platform reflect that the projection for the market of catalytic
converter products is taken to reach to a figure of $272.95 (£206.30) billion by the close of 2024. This huge growth rate in the
market for catalytic converters is mainly attributed to the regulatory mechanisms of the different national governments of
different developed countries like United Kingdom and thereby their institutional practices for controlling of automobile emissions
along with new innovations and changes brought about in the manufacturing of automobiles (PR Newswire , 2018).
Market size of the industry for Catalytic Converter included the UK
The global market size of the catalytic converter industry in terms of market value is taken to amount to $46.546 (£35.18) million
by the close of 2018 while the same bearing a growth rate of around CAGR 8.2 percent is taken to amount to around $79,772
(£60.29) million by the close of 2025 (Globe Newswire , 2019).
Key players in the Catalytic Converter Market in the UK
Key global players that tend to effectively compete in the market of catalytic converters are Faurecia SA based in France,
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Tenneco Inc. based in United States, Benterler International AG based in Germany and Magneti Marelli based in Italy. Toyota
based in Japan also tend to potentially compete in marketing their catalytic converters to the automobile manufacturing
companies and other consumers in the global market (PR Newswire , 2017).
Selection of customer samples
Use of the stratified random sampling method is made for selection of around 100 responds from two different consumer groups
like the car manufacturers and also the direct consumers in availing Ned’s Catalytic Converter. The use of the stratified random
sampling method is taken into use such that it would help in reducing the chances of emergence of errors associated to the
application of the random sampling method and in carrying out research on a focused basis (Whittington, 2015).
Consumer Surveys
Consumer surveys were carried out for the 100 respondents through the development of structured questionnaire sets and
thereby in carrying out surveys based on the use of the online survey tool like SurveyMonkey. Telephonic surveys were also
carried out where it was difficult in gaining physical appointment and access to respondents. Please, see the Survey
Questionnaire in Appendix 1.
The responses received from the respondents to the question number eight are reflected in terms of a pie-chart produced as
follows.
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The pie-chart reflects that the majority of the business and non-business consumers of around 40 and 50 percent agree to the
fact that the application of the catalytic converter adequately helps in reducing the level of emissions of harmful gases from
automobile exhausts.
The responses gained from the respondents to the question number nine are tabulated in an excel sheet and reflected in terms
of pine chart rendered as follows.
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The above graphical illustration shows that majority of the respondents of around 70 percent are interested in switching over to
a new catalytic converter that would help in generating total protection from the impacts of harmful and toxic gases generated
from the exhaust pipes of automobiles. Around 20 percent negate to the fact of switching over to a new alternative while 10
percent remain indifferent to the suggestion.
Inferences gained from the above surveys along with the facts and figures concerning the catalytic converter market reflect the
market need for Ned’s Catalytic Converter and thus aims at effective business opportunity for the new venture.
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2.1 WHO ARE YOUR CUSTOMERS AND HOW WILL YOU REACH THEM?
Customer Profile Why are you
targeting them?
How are you
going to get their
attention?
How are you
going to
convince them to
buy from you?
What specific
activities does this
mean you need to
do?
What approximate
level of spend will
you need on each
activity?
1. Automobile
Manufacturer
s
The automobile
manufacturer is the
targeted because
they are producing
diesel and petrol
cars for which they
require a diesel
converter in the UK
market so that they
can offer cars that
are free from diesel
The manufacturer
of automobile
companies in the
UK will be
attracted by brand
name as well as
the meetings will
be conducted. The
personal meetings
with the
manufacturer will
The proposal or
effective deal in
terms of price
comparing it with
the competitors is
one of the effective
things that
convince the
customers to make
the purchase of
Hiring an effective
Marketing Manager
that can handle the
deal and meeting
will be one of the
activities.
5 days x 8 hours per
day x £10.63 per hour
= £425.2 (Pay Scale,
2019)
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2.MARKETING

emissions. Thus, the
automobile
manufacturer
requires the digital
catalytic converter as
this helps them in
reducing the
emission in the UK
market. The catalytic
converter is an
important product for
them, as this will
lead to the
satisfaction of
customers that will
lead to an increase
in the sales and
revenue of the
company.
help the company
in offering an
effective proposal.
the product
2. Distributors of
Automobile
The distributors of
the automobile parts
The company is
going to grab the
The company are
going to convince
The company will
hire a marketer that
According to Count
SEO (2019), the
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Parts targeted because
they are the one who
deals in both new as
well as used cars
parts. The customers
generally make the
purchase of the
automobile parts
from the local
market. The product
is relevant to them
as in the UK there
are many customers
who make the
purchase of diesel
emission engine.
attention of
distributors with
the help of social
media, as they will
enhance their
presence. In
addition to this, the
company through
hoarding which will
grab the attention
of the distributors
and will make
them purchase the
products will do
the advertisement.
the distributor to
purchase the
product by offering
effective prices
with unique
features.
will use the social
media platforms in
generating
awareness through
social media.
Google Plus for six
months (£59 per
month) + Facebook
for six months (£119
per month) + Twitter
for six months (£179
per month) +
Pinterest for six
months (£289 per
month) + 2 days x 8
hours per day x
£10.63 per hour for
hiring a Marketing
Manager (Pay Scale,
2019 = £4,046.08
3. End users In the UK market,
many customers are
still using diesel
models that lead to
diesel emission in
The end user’s
attention is
attended with the
help of personal
selling and
The company are
going to convince
the end users to
purchase the
product by offering
The hiring of
effective Marketing
Manager who are
equipped with
knowledge related
According to Pay
Scale (2019) Hiring a
Market Manager for 5
days x 8 hours per
day x £10.63 per hour
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the environment.
Thus, this is the
reason due to which
the companies
consider this as the
target market.
Further, the end
users of the
company find the
product relevant, as
they need to make
their vehicle free
from the emission.
Thus, customers can
easily purchase the
products from the
company.
publicity events, as
this will help them
in understanding
the benefits that
they will be getting
with the installation
of the products
effective prices,
unique features,
and after-sales
services. Very
fewer companies
in the UK actually
help the customers
when it comes to
after-sales
services.
to the automobile as
well as technology.
will cost £425.2
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2.2 WHO ARE YOUR COMPETITORS AND HOW WILL YOU BEAT THEM?
Competitor profile What will you be
competing with
them on?
Why do
customers buy
from them?
Why would
customers switch
to you?
What specific
activities will you
need to do?
What approximate
level of spend will
you need on each
activity?
1.BASF
A Public Company
that caters to the
need of automobile
customers for
catalytic converters
for around 36
years.
The basis of
competition with
BASF would be
quality parameter
for the catalytic
converter.
Customers tend to
depend on BASF
owing to its large-
scale offerings of
catalytic
converters.
Advertisements
need to be
generated along
various mediums
for highlighting the
efficiency of
catalytic converter
in generating 100
percent pure air
free of pollutants.
-Generating videos
reflecting customer
testimonials for use
of catalytic
converters.
-Development of
presentations that
can be shown in
venues of
automobile dealers.
-Cost of producing
videos and
promoting in the
social platforms are
already mention.
Therefore, there is
no additional costs.
-Cost of developing
presentations by a
Marketer will be in1
day x 8 hours x
£10.63 per hour =
£85.04 (Pay Scale,
2019)
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2.Johnson Matthey
The company
focuses on the
generation of
sustainable
solutions in the
field of
environmental
technology. It
focuses on
investing in
Research and
Development.
Competition would
be carried out with
Johnson Matthey
based on product
features for
catalytic
converters.
The generation of
innovative product
solutions regarding
catalytic converter
helps customers in
enjoying value-
added benefits.
Customers can be
attracted in terms
of highlighting the
features and
efficiencies to be
gained from use of
Ned’s Catalytic
Converter.
-Generation of
customer meets
-Providing
demonstrations of
catalytic converter
According to Tag
Venue (2019), the
cost of booking
venues for
customer meets
and product demos
would be 8 hours x
£50 per hour + The
price for the
Marketing Manager
(Pay Scale, 2019) 8
hours x £10.63 per
hour will be
£485.04
3.CATALER
A private firm that
specialises in
generating diverse
catalytic converters
for different sectors
Competition with
CATALER would
be carried out
based on price
points for attracting
customers.
CATALER provides
different types of
product solutions in
the field of catalytic
converters that
attract customers.
Customers can be
encouraged to
switch over based
on the
incorporation of
discounts and price
offers.
-Carry out
promotional
activities along car
dealership venues
-Offering of digital
coupons
Included in the
Social/Media
Packet which a
stated in the
Marketing section
above. Hence, no
additional costs.
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3.1 HOW WILL YOUR PRODUCT BE PRODUCED OR HOW WILL YOUR SERVICE BE CARRIED OUT?
If you will be producing a product, how, where and when will it be produced? If you will be providing a service: who will deliver your service? Does it
involve transport or equipment? What preparation will be needed? Where will this take place? Will you need special premises etc
In all cases, detail the estimated associated costs in the boxes on the following pages. You may also find it useful to include a flow chart.
At the initial stage, the company will conduct the research and development. This research will help the company in identifying
the material that they will use in the manufacturing of the product. The cost of research and development projects that will be
incurred by company is £10,000 (Odutola, 2019).
The manufacturing of the product requires different material, but it varies according to the vehicle. For the automotive engine,
Converter Company needs to source ceramic monolith with a honeycomb structure. This A metallic foil monolith is made up of
the iron-chromium-aluminium combination is used by a company. The company source the required material from the distributors
in bulk from china where they find it at low cost. So, the price will be £17.63 per piece with minimum order of 1000 piece which is
equal to 1000 x £17.63= £17630 (Made in china, 2019)
Later, there is a need for the machinery and equipment for manufacturing of product. The below given is the equipment that is
used by the company in manufacturing product according to its small business. The price of the machine is around £15,000
(Taiwan Trade, 2019).
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3.OPERATIONS