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P.O.BOX 1517, Lobatse

Plot No: 21, Industrial Site, Mahalapye

Mobile: 74451863 / 73951815

e-mail:ucavsystems@botsnet.bw

New Tyre Sales - Tyre Fitting - Tyre Balancing - Wheel Alignment

1.0 Executive Summary

Ucav Systems is 100% citizen owned Enterprise. It has been incorporated in accordance with laws of Botswana Companies Ref: C0.2007/576, PPADB & BURS. It is an initiative of a Motswana youth who is responding to the government’s outcry for self reliance, job creation, financial independency and sustainable economy for citizen empowerment. The Enterprise was established in 2009 in Lobatse and during its operation the company was offering supplies of Domestic and Industrial equipment and now wishes to diversify and focus its commitment to selling and offer services of:

▪ New tyre sales

▪ Tyre fitment Services

▪ Wheel Alignment

▪ Wheel Balancing

Ucav Systems has a vision to pursue and expand an already existing service to plan, operate and manage the enterprise with desired objectives to deliver workable services for our customers in Mahalapye and central region

2.0 Project Objective and status

The main objective of the project is to become the leading top citizen owned Tyre Express in the central region to offer services of New Tyre Sales, Tyre Balancing, Tyre Fitting and wheel Aligning at both cooperate and individual market level within 2 years of starting operation without compromising on quality.

2.1 Product line

Ucav Systems is a Tyre Express company that sells Tire brand called Triangle. Triangle Tire is an Asian Tire Manufacturing Company founded in year 1975 in China Triangle brand has already acquired 33 years history manufacturing tires for most applications for:

▪ Light Duty cars

▪ Heavy duty cars

▪ Earth Moving Machinery

▪ Desert tires

▪ Agricultural tires

▪ Construction machinery

▪ Mining Machinery

During all these years Triangle has always maintained a single fundamental goal: to meet its global customer demands and serve the global market through continuous research and development. This focus has allowed Triangle to become one of the largest tire producing firms, ranking 10th among tire manufacturers in the world today. As a Tyre Express Company Ucav Systems also affiliates with other prominent Companies like Continental, Firestone, Pirelli, Michelin, Firestone and others to offer my buyers an unlimited choice to buy a product they desire.

2.2Triangle Tyre Domestic & International Accreditation

Being an International Tyre Manufacturing Company,Triangle Tire`s products has passed various certification approval such as:

▪ ISO9001 Quality System

▪ ISO14001 EMS

▪ ISO/TS16949 Quality Systems

▪ ISO10012 Measurement Confirmation Systems.

Triangle tires have been recognized by DOT, ECE and CCC and its main product performance index has been up to the international advanced standards. This meets domestic and international vehicle types and specifications and has established a state-level R&D Centre, a post-doctoral researching and working station with professional technology, advanced experiment and production equipment.

2.4Triangle Tire Company history

This International Tyre Manufacturing Company promotes multi-Investments system advanced enterprise and building a worldwide famous brand and now has a distribution center in Gaborone, Botswana and it intend to expand its world famous brand by allowing citizen owned companies like Ucav Systems to sell their brand. Since its founding in 1976, Triangle has already acquired a 33 year history manufacturing tires for most applications. During all these years Triangle has always maintained a single fundamental goal: to meet its global customer demands and serve the global market through continuous research and development. This focus has allowed Triangle to become one of the largest tire producing firms, ranking 10th among tire manufacturers in the world today.

Triangle produces over 700 kinds of radial tires in more than 160 sizes, and manufactures nearly 400 types of bias tires in more than 100 sizes. Annual production exceeds 10 million units, including over 7 million in radials which have become the backbone of our organization in the form of radial passenger car tires, radial light truck and truck tires, and radial OTR tires (for industrial, construction and mining equipment).

Triangle has also become an important supplier of OEM tires for some of the best known vehicle and equipment manufacturers the world over.

Having obtained a leadership position in the domestic tire market in China, Triangle is now in the process of expanding its international presence in more than 130 countries throughout the Americas, the European Union, Africa, the Middle East, Asia, Oceania and the Pacific basin, enjoying the reputation it has built with its global customers through its confidence-inspiring emphasis on maintaining top quality and reliability. The ongoing economic globalization process is providing an exceptional opportunity for Triangle to assure the brightest future for its importers, distributors, and dealers, as well as the millions of end users all over the world Ucav Systems is also going affiliate with other Leading International Tyre companies like Michelin, Continental, and Bridgestone

4.0 Project Capital Costs-equipment and others

|Description |Qty |Unit Price |Total Price |

| | | | |

|Buy Business Property |1 |50,000.00 |50,000.00 |

| | | | |

|Build Workshop |1 |100,000.00 |100,000.00 |

| | | | |

|Machinery & Equipment | | | |

|Bottle Jack 20 Ton |2 |500.00 |1000.00 |

|Trolley Jack 5 Ton |2 |700.00 |1400.00 |

|Trestle 3 Ton jack stand |2 |169.95 |339.90 |

|117 Pieces Toolbox Complete Ampro |2 |1,749.00 |3498.00 |

|Wheel Balancer |1 |10,000.00 |10,000.00 |

|Tyre changer |1 |10,000.00 |10,000.00 |

|Electronic Wheel Aligner Complete |1 |88,000.00 |88,000.00 |

|200L Compressor |1 |6,695.00 |6,695.00 |

|Low Level Jack |1 |12,000.00 |12,000.00 |

|Buffing Machine |1 |600.00 |600.00 |

|Delivery, installation, commissioning in Mahalapye |1 |5,500.00 |5,500.00 |

| | | | |

|Delivery Van | | | |

|Isuzu 250 LE |1 |175,113.86 |175,113.86 |

| | | | |

|Furniture & Fixtures | | | |

|Office Bench |2 |550.00 |550.00 |

|Water Bottle Dispenser Hot/Cold |1 |1500.00 |1500.00 |

|Office Counter Table |2 |650.00 |650.00 |

|Fire Extinguisher 9KG |2 |1600.00 |1600.00 |

|Hose reel swing 30m |2 |1400.00 |1400.00 |

|Office Computer |3 |6500.00 |19500.00 |

|Fax Machine |1 |4500.00 |4500.00 |

|Copier Machine with Printer |1 |14000.00 |14000.00 |

| | | | |

|Working Capital |1 |100,000.00 |100,000.00 |

| | | | |

|Salaries | | | |

|-Director |1 |2000.00 |2000.00 |

|-Tyre Balancer and fitter |1 |1500.00 |1500.00 |

|-Wheel Aligner |1 |1500.00 |1500.00 |

|-Staff Admin & Reception |1 |1500.00 |1500.00 |

| | | | |

|Phone Line |1 |3500.00 |3500.00 |

|Total Costs | | |614,345.36 |

3.1Stock Cost

|Tyre Sizes |QTY |Unit Price |Total |Tyre Sizes |QTY |Unit Price |Total |

|175/70R13 |20 |290.00 |5800.00 |245/70 R16 |20 |750.00 |15000.00 |

|175/65R14 |20 |300.00 |6000.00 |265/70 R16 |20 |830.00 |16600.00 |

|175/70R14 |20 |325.00 |6500.00 |265/75 R16 |20 |980.00 |19600.00 |

|195/60R14 |20 |380.00 |7600.00 |235/60R17 |20 | | |

|185/65R14 |20 |340.00 |6800.00 |245/70R17 |20 | | |

|185/70R14 |20 |360.00 |7200.00 |265/70R17 |20 | | |

|195/70R14 |20 |390.00 |7800.00 |265/75R17 |20 | | |

|205/70R14 |20 |400.00 |8000.00 |6.00-14-8PR |20 | | |

|195/50R15 |20 |360.00 |7200.00 |6.50-14-10PR |20 | | |

|195/55R15 |20 |380.00 |7600.00 |6.50-16-10PR |20 |660.00 |13200.00 |

|195/60R15 |20 |390.00 |7800.00 |7.00-R15 |20 | | |

|195/65R15 |20 |410.00 |8200.00 |7.00-16-12PR |20 |740.00 |14800.00 |

|205/50R15 |20 |420.00 |8400.00 |7.50-16-12PR |20 |880.00 |17600.00 |

|205/60R15 |20 |430.00 |8600.00 |7.50-16-14PR |20 | | |

|205/65R15 |20 |440.00 |8800.00 |7.50-R16 |20 |950.00 |19000.00 |

|205/70R15 |20 |490.00 |8400.00 |8.25-16-14PR |20 |1100.00 |22000.00 |

|215/65R15 |20 | | |8.25R16 |20 | | |

|215/75R15 |20 |620.00 |12400.00 |8.25-20-14PR |20 |1500.00 |30000.00 |

|235/70R15 |20 | | |9.00-20-14PR |20 |1650.00 |33000.00 |

|205/55R16 |20 |700.00 |14000.00 |10.00-20-16PR |20 |2100.00 |42000.00 |

|215/55R16 |20 |490.00 |9800.00 |11.00-20-16PR |20 |2300.00 |46000.00 |

|225/55R16 |20 |580.00 |11600.00 |2.00-20-18PR |20 |2500.00 |50000.00 |

| | | | |14.00-20-18PR |20 |3800.00 |76000.00 |

| | | | |11R22.5 |20 |2300.00 |46000.00 |

| | | | |12R22.5 |20 |2600.00 |52000.00 |

| | | | |315/80R22.5 |20 |2800.00 |56000.00 |

| | | |173,800.00 | | |

|175/70R13 |30 |50 |245/70 R16 |30 |50 |

|175/65R14 |30 |50 |265/70 R16 |30 |50 |

|175/70R14 |30 |50 |265/75 R16 |30 |50 |

|195/60R14 |30 |50 |235/60R17 |30 |50 |

|185/65R14 |30 |50 |245/70R17 |30 |50 |

|185/70R14 |30 |50 |265/70R17 |30 |50 |

|195/70R14 |30 |50 |265/75R17 |30 |50 |

|205/70R14 |30 |50 |6.00-14-8PR |30 |50 |

|195/50R15 |30 |50 |6.50-14-10PR |30 |50 |

|195/55R15 |30 |50 |6.50-16-10PR |30 |50 |

|195/60R15 |30 |50 |7.00-R15 |30 |50 |

|195/65R15 |30 |50 |7.00-16-12PR |30 |50 |

|205/50R15 |30 |50 |7.50-16-12PR |30 |50 |

|205/60R15 |30 |50 |7.50-16-14PR |30 |50 |

|205/65R15 |30 |50 |7.50-R16 |30 |50 |

|205/70R15 |30 |50 |8.25-16-14PR |30 |50 |

|215/65R15 |30 |50 |8.25R16 |30 |50 |

|215/75R15 |30 |50 |8.25-20-14PR |30 |50 |

|235/70R15 |30 |50 |9.00-20-14PR |30 |50 |

|205/55R16 |30 |50 |10.00-20-16PR |30 |50 |

|215/55R16 |30 |50 |11.00-20-16PR |30 |50 |

|225/55R16 |30 |50 |2.00-20-18PR |30 |50 |

| | | |14.00-20-18PR |30 |50 |

| | | |11R22.5 |30 |50 |

| | | |12R22.5 |30 |50 |

| | | |315/80R22.5 |30 |50 |

|Wheel alignment | |

| | | |

|Commercial/SUV 4X4 Tyre |30 |50 |

|Passenger Cars |30 |50 |

|Wheel Balancing | | |

| | | |

|Small passenger cars |30 |50 |

|Van cars and taxi combi`s |30 |50 |

7.0 Competitors

Ucav Systems is faced with 1 main competitor in the area services being:

▪ Hankook Tire Corporation.

However this foreign owned corporation offers upper class/ expensive tires such as Michelin, Goodyear and Continental and they DO NOT sell tyres and only offer Tyres fitting only in Mahalapye and surrounding areas makes it difficult to afford premium priced tires.

Ucav Systems being the sole Tyre Express Enterprise will sell Triangle tires would be sold at reasonable prices which enables the community and surrounding areas to afford quality tires. This would create a niche market for people looking for affordable tires in the marketplace.

Competitors Market Share

So far 80% of the people in Botswana starting with Government Departments (CTO), NGO`S, Companies and individuals drive and own small cars, Vans and combis which are also used as public transport and they uses size R13-R15 and individuals who drive R16 and R17 which are the best selling tires at the moment and we intend to stock as many tires we can sell to meet the market demand. Since our competitors are offering only Tyre Fitting service we are the only company offering both tire sales & fitting and Auto services so we stand a better chance and opportunity to capture at least 50-75% of market share of about 50 times a week.

Inputs and Employment

Ucav Systems is going to employ experienced personnel in Tire Fitting, Tyre Balancing and Wheel Alignment and the positions are going to be advertised on the daily news.

|Names |Academics |Required Skill |Salary |

| | | | |

|Tyre Fitter & Balancer |Any |1 Year or more with knowledge or experience in tyre |Commission based |

| | |fitting and balancing | |

| | | | |

|Wheel Aligner |Any |1 Year or more with knowledge or experience in wheel |Commission based |

| | |aligning | |

| | |1 Year or more knowledge or experience word/excel with | |

|Sales/Receptionist-Citizens only |Any |knowledge book keeping and tyres. |1500.00 |

Technical details

|What (Activity) |How (Strategies) |When (Deadline) |Who (Assigned) |

| | | | |

|Tyre Fitter & Balancer |Done by a tyre fitter & Balancer |Continuously |Tyre fitter & Balancer |

| | | | |

|Wheel Aligner |Done by a wheel aligner |Continuously |Wheel Aligner |

| | | | |

|Tyre Sales |Done by receptionist |Continuously |Administrator |

7.2 Market share your project intends to archive-sales monthly forecasting50

|Product Sales-Tyre sales for set of 4 units |

|Car Tyre Sizes |QTY |Price per unit |Truck Tyre Sizes |QTY |Price per unit |

|175/70R13 |50 |290.00 |245/70 R16 |50 |750.00 |

|175/65R14 |50 |360.00 |265/70 R16 |50 |830.00 |

|175/70R14 |50 |325.00 |265/75 R16 |50 |980.00 |

|195/60R14 |50 |380.00 |235/60R17 |50 | |

|185/65R14 |50 |340.00 |245/70R17 |50 | |

|185/70R14 |50 |360.00 |265/70R17 |50 | |

|195/70R14 |50 |390.00 |265/75R17 |50 | |

|205/70R14 |50 |490.00 |6.00-14-8PR |50 | |

|195/50R15 |50 |360.00 |6.50-14-10PR |50 | |

|195/55R15 |50 |380.00 |6.50-16-10PR |50 |660.00 |

|195/60R15 |50 |390.00 |7.00-R15 |50 | |

|195/65R15 |50 |410.00 |7.00-16-12PR |50 |740.00 |

|205/50R15 |50 |420.00 |7.50-16-12PR |50 |880.00 |

|205/60R15 |50 |430.00 |7.50-16-14PR |50 | |

|205/65R15 |50 |440.00 |7.50-R16 |50 |950.00 |

|205/70R15 |50 |490.00 |8.25-16-14PR |50 |1100.00 |

|215/65R15 |50 | |8.25R16 |50 | |

|215/75R15 |50 |620.00 |8.25-20-14PR |50 |1500.00 |

|235/70R15 |50 | |9.00-20-14PR |50 |1650.00 |

|205/55R16 |50 |490.00 |10.00-20-16PR |50 |2100.00 |

|215/55R16 |50 |520.00 |11.00-20-16PR |50 |2300.00 |

|225/55R16 |50 |580.00 |2.00-20-18PR |50 |2500.00 |

| | | |14.00-20-18PR |50 |3800.00 |

| | | |11R22.5 |50 |2300.00 |

| | | |12R22.5 |50 |2600.00 |

| | | |315/80R22.5 |50 |2800.00 |

|Wheel alignment | |

| | | |

|Commercial/SUV 4X4 Tyre |30 |50 |

|Passenger Cars |30 |50 |

|Wheel Balancing | | |

| | | |

|Small passenger cars |30 |40 |

|Van cars and taxi combi`s |30 |50 |

7.3Market Strategies the Project Will Use to Gain Market Share

▪ As a Citizen owned Tyre express Enterprise in Mahalapye area we remain very competitive due to our location because we are in a new developing zone in Mahalapye near the new police station and a new main hospital both which are already operational, with a new bus/taxi rank already on the way and all the other new developments are expanding there:

▪ Ucav Systems is the only Tyre express Enterprise Company in the Mahalapye area offering tire sales & fitting and auto service & mechanics. The current tire Tyre express Enterprise Company sells premium brand tires that come with an expensive price tag. Due to the fact that the competition is franchises they are in contract to only sell certain brands and they offers Tyre fitting service only. This would make Ucav Systems the only tire sales and fitting workshop in area that would be allowed to sell these quality and economically priced tires. In this time of economic hardship more people will be inclined to purchase services and tires at a reasonable price.

▪ Secondly to attract first time clients we plan on instill penetrative pricing. This would include having discounts, promotional product giveaways and attraction grand openings and holiday celebrations in the company parking lot to create an emotional attachment to attraction to Ucav Systems. Most importantly it would be important to stay in the niche market of economically priced tires.

▪ As Tyre express Enterprise we shall provide a new level of service and quality to the buyers by the use of equipments and machines that are controlled by computers to carry out rapid and effective mechanical processes such as wheel balancing and wheel alignment and that allows us to create turnover and saves our clients time. This speedy and friendly service will create an opportunity for word of mouth advertising to spread about our efficiency and good service.

▪ Lastly we going to work with those bush mechanics and road side tyre service guys and we going to allow to bring and do their mechanical or tyre work job to us at our workshop using our hydraulic equipment and tools then we charge them for that.

Distribution Channels

The company vehicle is used to transport Tyres to the buyers especially those with puncture situations and so as for other jobs like Tyre sales, Tyre Fitting are carried out in the workshop.

Supply Channels

Our brand tire distributors are a Chinese owned manufacturing enterprise established in Asia,China in 2001 and now has distribution center in Gaborone, Botswana and the company has been trading in Botswana since 2009.Triangle company promotes multi-Investments system worldwide and advanced enterprise and building a worldwide famous brand and it intends to expand its world famous brand by allowing citizen owned companies like Ucav Systems to sell their brand at a dealer prices to the public.

Product and Services Sales

|Car Tyre Sizes |QTY |Price |Truck Tyre Sizes |QTY |Price |

|175/70R13 |50 | |245/70 R16 |50 | |

|175/65R14 |50 | |265/70 R16 |50 | |

|175/70R14 |50 | |265/75 R16 |50 | |

|195/60R14 |50 | |235/60R17 |50 | |

|185/65R14 |50 | |245/70R17 |50 | |

|185/70R14 |50 | |265/70R17 |50 | |

|195/70R14 |50 | |265/75R17 |50 | |

|205/70R14 |50 | |6.00-14-8PR |50 | |

|195/50R15 |50 | |6.50-14-10PR |50 | |

|195/55R15 |50 | |6.50-16-10PR |50 | |

|195/60R15 |50 | |7.00-R15 |50 | |

|195/65R15 |50 | |7.00-16-12PR |50 | |

|205/50R15 |50 | |7.50-16-12PR |50 | |

|205/60R15 |50 | |7.50-16-14PR |50 | |

|205/65R15 |50 | |7.50-R16 |50 | |

|205/70R15 |50 | |8.25-16-14PR |50 | |

|215/65R15 |50 | |8.25R16 |50 | |

|215/75R15 |50 | |8.25-20-14PR |50 | |

|235/70R15 |50 | |9.00-20-14PR |50 | |

|205/55R16 |50 | |10.00-20-16PR |50 | |

|215/55R16 |50 | |11.00-20-16PR |50 | |

|225/55R16 |50 | |2.00-20-18PR |50 | |

| | | |14.00-20-18PR |50 | |

| | | |11R22.5 |50 | |

| | | |12R22.5 |50 | |

| | | |315/80R22.5 |50 | |

| | | | | | |

|Wheel Alignment | |

| | |

|Small passenger cars |150.00 |

|Van cars and taxi combi`s |200.00 |

|Wheel Balancing | |

| | |

|Small passenger cars |40.00 |

|Van cars and taxi combi`s |50.00 |

Competitors selling price

Our competitors are selling at 100% markup whilst we sell only at 50% markup and our tires are very durable and reasonable in price.

Promotions:

As Tyre express Enterprise people are going to know of our existence through:

Advertising:

We are going to promote the business, products and services through media e.g. radio, billboards, newspaper e.t.c. The aim is to make people aware of the goods and services provided by Ucav Systems. The promotion strategy would result with people buying more of our products and services. This would then create brand loyalty and preference which would generate long term stability and profits.

Analyze Possible Market Risks

▪ Competitors could push us out of the market by selling products at breakeven prices until our collapse. Our competitors are prominent and well established entities in the community therefore brand loyalty may create a difficult to penetrate. Franchises usually have well trained sales representatives and could be used to talk negatively about Ucav Systems tires and services to maintain their market share in the area. Being professionals that have a standing in the community bad propaganda can create a negative brand image of Ucav Systems.

▪ Tire manufacturing companies are based overseas in this particular case China. Almost all of the supplies would have to come in by Sea. Supplies always stand the change of cargo being hijacked by pirates or being destroyed by natural disasters like hurricanes. This could result in a shortage or unavailability of stock.

Overcoming obstacles

▪ We have created a network of suppliers like Tyre Services that we would be able to purchase supplies from in the event our primary supplier Triangle Tires would not be able to deliver an order in time. These suppliers would be from with in the region. South Africa and local companies like Tyre Services would be readily available to sell tires to Ucav systems. Please note that this is a safety measure if an event happens whereby tires would not be available or in stock for short to medium term amount of time.

▪ We going to use penetrative pricing for our products and services to create brand awareness and gain market share.

▪ We going to strategically stockpile the tires to ensure that there is enough tires to last for 2 month until a new order would have to be made.

▪ Due to the current economic climate financial resources have been strained. This creates an opportunity for us to sell cheap and yet durable tyres.

Implementation Schedule

▪ The first stage of the projects starts as soon as CEDA funds are approved.

▪ Purchase commercial property in prime location for the business.

▪ Build and complete workshop according to the specs and standards of Physical Department and CTO.

▪ Connect utilities like water, electricity, Phone line which are the basic necessities for the workshop.

▪ Purchase and install hydraulics and workshop tools inside the workshop 26th to 30th November

▪ Buy stock which is tyres for the Company vehicle and hire personnel for the project.

▪ Then the project operation starts

Project Benefits

The main purpose of this project is to:

▪ To employ a number of unemployed and disadvantaged individuals as in line with 2016.

▪ Create a business that is a pillar in the Mahalapye community that is locally acclaimed.

▪ Bring our services to rural communities and sell quality products and services at affordable prices.

▪ Government Departments (CTO), NGO`S, Companies do not have to travel long distances anymore to look for other affordable tires and service.

▪ Benefit students who are on internship programme and those who wish to do practical work or do partime work during school holidays.

Risk and Sensitivity

Chinese tyre equipment/forged and cheap Auto tools and second hand tires have made an easy entry into the market, bush mechanics and normally seen on roadside punchermans selling second hand tyres poses a threat to shrink the market and they could stop us from succeeding, therefore good customers relationship management strategies needs to be employed creatively and innovative ways will differentiate our service from all our competitors. Value creating initiatives would be employed to increase customer service. Spare parts for our hydraulic equipment will be readily available from our appointed local Ravaglioli and Bosch dealers here in Gaborone, Botswana. The company offers backup services if equipment ever breakdowns. Prices will be determined by market demand and Forex prices of fuel prices increase or decrease since the price of everything is transported by fuel can change anytime.

SWOT Analysis

. Strength-Internally

▪ Prompt delivery of service

▪ Efficiency of Trust by our customers

▪ Niche Market Low tire price

▪ Having skilled personnel.

▪ Computerized machinery increase efficiency

Weakness Internally

▪ Potential poor delivery of staff services

▪ Inefficiency our products and services

▪ Lack of trust due to being a new establishment

▪ Our machinery breaking down

▪ Power failure

Opportunities-External

▪ Consumer spending on our products & services is high due to our low prices.

▪ Conducive buying

▪ Penetrative pricing increases chances of service trials.

Threats-External

▪ High performances of our competitors

▪ Low prices offered by competitors

▪ Existence of competition

▪ Easy entry into this kind of business

▪ Consumer spending is reduced

▪ Natural disasters

Conclusion

Since 2008, Ucav Systems has specialized in procurement has not been disqualified from obtaining government support and we have good reputation with our bankers First National Bank Botswana.

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