Business

Canvas Model
Designed for
Electricity For Ghareeb Admi

Designed By
Amur Sohail
Sayed Sheeraz Ali Shah
Muzzamil Sheikh
Junaid Ahmed Mangi
Sair Charan

Sukkur IBA

Students BE-VIII

Dated: 11/04/2013
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Q#1: What are the Customer Segments that your company or organization
serves?
Being a social project, this is the business that is developed to add some value and standard to
the lives of those citizens of our motherland Pakistan, who are despondent of the facility of
electricity. These are the people who are not provided with electricity by the conventional
government lines. These have no hope that it is possible that their villages or the areas where
they are living can be electrified. These people living in the rural areas even cant dream about
electrification of their native villages. As these villages are lying in the far away areas of
Pakistan where it is very costly for Government of Pakistan to spread their transmission lines, on
the other hand the energy crises in Pakistan have made completion of their dreams impossible.
The potential customers of this business are poor (Gareeb Admi) of our Pakistan who never have
seen a bulb lighting at their homes. The people who are living in the darkness, the people who
are suffering a lot of accidents because of no light on their ways, the people who use dangerous
oil lamps at night which can burn their homes made of leaves and wood, the children who cannot
study at nights, the mothers who cannot cook food on time because of darkness. The people who
cannot imagine an electric fan available to serve them for a sound sleep and makes them to face
hot weathers of summer and without a complete sleep even at nights. These people are our
customers. The above mentioned (Gareeb Admi) are our most important customer.
As we are going to introduce this product to customers who have never seen any electric or
electronic devices, they are not equipped with radio, they are not having facility of newspaper,
and we have no media to convey information to them for this project. In order to market the
project to these, we need interpersonal communication to prevail our message to them. The mass
marketing will be done by going in the villages and make people aware of the project that is
Electricity for (Ghareeb Admi). We can arrange meeting with the people in the Otaq Kachehri or
can tell the message to the heads of the village and they can further convey our message to their
people.
The other method is to publish brochures and flyers of our project in their local languages and
distribute them to different villages and to each and every person living in the areas. This will be
done by paying local person to spread the good news to the villagers.
On the other part niche marketing is required in order to search a group of local people that will
be working with our company in the villages. It is necessary to hire some local people for the
purposes of security and market also. This group will be given offers through niche marketing.
The particular people for particular purposes will be selected to perform different task. The local
people know each other very well and the customers will have no doubt of any fraud and the
company will face no problems in recovering the investments from the rural area and security
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will easily be made possible. There will be a number of different people from different areas to
serve people of their area for the electrification of the villages in their area. The distribution of
the equipment and materials will be made possible to each area through a dealer of an area that
will be serving as a head of the area. This will be the segmentation strategy for each area. As in
the rural areas everyone is unable to afford the facility so the company has diverse strategy to
satisfy the customers needs. The company may provide solutions to different problems faced by
the people living there. This all combines to form a multisided platform of company in order to
satisfy the customers. This all is to facilitate the poor person (Ghareeb Admi) of Pakistan on part
of our company.

Q#2: What is the value proposition that your company or organization offers
to solve customers problems and satisfy their needs?

The goal of our company is to provide the electricity to the poor people (Ghareeb Admi) who
live in rural areas where there is no concept of electricity by conventional Government line. Our
first priority customers are poor people who have never seen electric bulb lighting at their homes.
We divide the portion in two types one is franchise and other is surveying the rural area. In
surveying we have field to rural area and meet the people and tell them about the project. Our
targeted customers are in rural areas. We provide each customer the whole system of solar panel
which are battery, solar panel, charge controller and inverter with free installation service. In
Pakistan main problem is energy crises but major problem is that Pakistani government cant
show the interest to the rural area and they are fail to provide the major thing in the villages of
Pakistan for example electricity its the most important part of our life without electricity we
cant live and we cannot move to our country to the growth. Our product satisfies the need of
poor people who live in the village. Our product can be change the living standard of villagers.
Newness in our product is nothing because it is already provided by some companies but new
thing is that we give the solar system in easy installments with free installation service. The
value of one solar system is Rs.54000 which includes 20% interest rate. It is environment
friendly. The efficiency of solar panel depend upon area of panel if its area is wider it provides
the more electricity but major important is frequencies of light and also depend upon the battery
storage which type and voltage rating of battery you used. Estimated life of solar panel is 17
years. The life of the whole unit can be increased if we keep a timely maintenance of solar panels
and the battery acid.

Q#3: What channels does your company or organization utilize for communication,
distribution and sales?
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Communication channels used by our organization will be face to face conversations, as it is a

very effective way to make sales and distribution. It helps customers to immediately response or
gives feedback or asks queries. We can also advertise through local people of that area to aware
people about our product. Local people will prove useful method to communicate and to deliver
the knowledge of our product. We can also advertise in local newspapers, which is a very
common and fast channel to acknowledge those people about our product. Brochures and
pamphlets in local language can be distributed in that particular areas which will let people know
about this product. Hotels and other shops where these people used to go often, we can distribute
these pamphlets and brochures in these places also. Another way to communicate with those
local people is by telling Head of their village about our product, which can be an effective way
to convince those people about our product because in villages Head is considered as the one
who is trustworthy and always helps people for solving their problems and is a well-wisher for
them, so if will let those people know about our product, it is more likely that the people will be
convinced and will be ready to buy our product. We can also hire some sales person which will
go to their houses and tell them about our product, how this product works and how it is
beneficial for them. Sales person will tell them that how our product is cost effective, which will
make their lives easier to live, because this is a more reliable source of energy and constant
supply of electricity. Schools of those villages can be a very good medium for us to convey the
information about product. Sessions can be conducted for the children studying in those schools,
and we can tell those children about our product and its benefits and how it works. Those
children will go to their homes and will tell their parents (which may be uneducated) about our
product and make them understand about its need and benefits and may convince them to buy
this product.
Q#4: What are the customer relationships that your company or organization plans to
establish with its customer segments?

Our organization plans to interact with customers, understand the needs of the customers, what
their problems are, what they expect from us and how we can help them. Customer relationship
does not mean that once the customer buys our product and it ends, but it is a relationship which
will be remain till the company exists. We are not only concerned till the customer buys our
product but afterwards; when the customer finds any difficulty with that product we will be
available for them to solve those problems. This is a very useful method which will encourage
our customers to buy our product because they will know that if they will find any problem
regarding the product, we will be there for them to help. Communication with customers is very
necessary, which will help us as well as the customers to be comfortable with each other and will
make us to understand each other. Better customer services can be provided to retain the existing
customers and to attract the new ones. Better customer services can be in the form of help in
technical issues, and other issues which the customers are facing while using the product.
Customer relationship can be made stronger if we listen to the complaints of our customers and
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response them positively. If we will not reply or listen to their complaints, they may think that
we are not concerned or loyal towards our customers and their priorities and we may even lose
our customers. Trust is the thing which is most important when we are talking about customer
relationship. Trust is not built just by saying things, but by doing something for our customers. If
people will see that we are doing something for, we are trying to help them, we are trying to
solve their issues only then they will trust us and will be ready to co-operate and buy our
product. We can also take feedback from the customers about the product and our services,
which will help us to understand that how much we are successful in fulfilling their needs and
solving their problems and furthermore, will let us know about the flaws and things which we
have missed, so as in future we can make them better.

Q#5: What are the revenue-streams that your company or organization will generate?

In the initial phase the 75% of the investment will be done by the co-owners. The remaining 25%
will be borrowed from any other investors or granted a loan from Bank. The company will come
in phase of earning after five years. This will be dependent on the sales of the company product.
The given paragraph defined the estimation of the generated profits after five years period. The
Company will be generating profit of Rs. 450,000 each year if it installs minimum number of
solar system that is 50. (Excluding the service charges) The revenue in five years is about
Rs.2250, 000.The product of the company is a solar panel system of low level that will be
capable to run a fan and 2-3 bulbs. The cost of total solar panel system is estimated to Rs. 45000,
including the interest rate it will rise to Rs.54000. The customers (Gareeb Admi) will be charged
only Rs. 4500 per month in twelve easy installments which is affordable for every person.
Q#6: What key resources are required to make the business model work?

Key resource required for Business Model that generate revenue and make profit from
operations. Model includes:

Physical resources

Intellectual resources

Human resources

Financial resources

Physical Resource:

Our company has its own physical resources, like as land, building and equipment (for materials
handling, safety, transporting, electricity generation, warehousing, communications network etc)
that is only in head office, and other franchises will be rental based. We are targeting different
remote areas to provide services, after completion of target our team will move towards next
target area.
Intellectual Resource:
Intellectual resource is considered an asset, and can broadly be defined as the collection of all
informational resources a company has at its disposal that can be used to drive profits, gain new
customers, and create value for them, Some of the subsets of intellectual resource include
human resource, information resource, brand awareness.
Human resource:
Human resources are curial in knowledge-intensive and creative industries and professional
service company rely heavily on human resources because without it business model will
collapse. Initially our team management would be comprises four chief officers (CEO, CFO,
CMO, COO) there will be one assistant marketing manager and one accountant and two highly
skilled electricians.
Financial Resource:
Financial resources concern the ability of the business to "finance" its chosen strategy. For
example, a strategy that requires significant investment in new products, distribution channels,
production capacity and working capital will place great strain on the business finances. Such a
strategy needs to be very carefully managed from a finance point-of-view.

Q#7: What are the key activities your company or organization must
perform?

The key activities that our company or organization must perform are given as under:
1. Change of life:
Being a social project the main objective activity of our project is to give relief to people
of the backward areas to bring a change in their lives. This change will be brought
through electrification of houses in the village individual and the source of this light will
be sun. There will be no utility bills for them to be paid to government.
2. Advertisement:
As the project is going to be launched in the backward areas where there is no concept of
TV, Radio or Newspaper so it is a very difficult to advertise in a rapid manner. For the
purpose of advertisement company will send employees there who will guide and make
people aware of the project and its benefits. The advertisement will be done through
interpersonal communication and we will involve local people to advertise our product.
The flyers will be published in the local language and will be distributed in the villages
and people will come to know about the project.
3. Services/Product:
As our company is going to provide service and the material in the area so we will be
working with a team that will be able to cope with all the problems whether technical or
other. The products given by us will be the solar panels and the whole unit and the
appliances like energy savers, bulbs or fan. The service by us will be installation of the
whole unit.
4. Maintenance:
There will be area wise franchise system that will provide 24/7 maintenance in case any
fault occurs. The solar panels and other appliances will be brought from China and with
good quality service will be installed in rural areas of Pakistan.
5. Recovery Of Cost:
As this is a social project the profits are not kept as primary objective. It is a difficult task
to recover the cost invested from such an area where people may create security issues
for company. In order to ignore this we will hire some local people residential of these
areas which on other hand will solve the security issues as well as these will help us
recover the cost invested. On the other part of this strategy we will be creating
employment opportunities for people living in the rural areas of Pakistan. As the
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company will not be earning profits till 3 to 4 years, after establishment. After 3 years the
company will start earning the revenues from people, that will not be so much like a
profit but it will be little bit to keep the company in operation. In case of any fault the
company will be charging from the customers for the service but the initial installation of
the solar unit will be free of cost and the cost will be recovered in easy installments from
people. There will be various packages offered by company to customers so that they
may easily pay the installments and in time.
6. Emergency Operation:
In case of any defaulter who is not paying the company even for minimum amounts and
the company is going in loss. The emergency operation will be performed and there will
be nothing only the person will be warned three times and after a week the company will
remove the solar unit from his home. If he pays the remaining amount as agreed upon
with company the solar unit will then be reinstalled to his home.
7. Distribution:
The distribution will be done with the help of the franchise there will be some local
people to serve their home land.
8. Customer Relationship:
As the company will be working in the rural areas we will maintain the relations with the
local people very sound and we will hire some local people to make them realize that we
are working for them. The employment of local people will result in good relations with
company.

Q#8: What are the key partnerships that your company or organization
utilizes?

Our company work is to install the Solar panel in to rural areas where there is no facility of light
available. Every organization has key partners that help the company in the growth but the
owners will invest 75% and remaining 25% will be collected from any other partner. Every
organization has key partners that move the company to the success and help us in the
organization growth.
Our company works for installation of Solar panel unit. The major partner company that helps us
to provide the solar panel in Pakistan is:

Yuhuan BLD Solar Technology Co., Ltd:

This company is located in china, it was established in 2008. This company manufactures solar
panels which are made up from mono crystalline and poly crystalline. Its present capacity is
1.2MW per month.
Company products are following:

Bld250W-72poly Solar Panel

Bld220W-60mono Solar Panel
Bld230W-60mono Solar Panel
Bld235W-60mono Solar Panel
200w mono solar panel
250W mono Solar Panel

Why we choose Yuhuan BLD Solar Technology Co., Ltd :

Because this company has goals like us and its main Moto is to make good relations with
company and customer. Price of one unit can be afforded by customer. There are some minor
partner mean non-technical partners that help us in order to advertise our product in the areas
where there is no media for making our project popular.
Motivation for Partner:
The motivation for partners is that they will advertise our project to the people of their areas and
will create for us a secure way to promote our product. The motivation for the local people is that
they will be employed by our company. This strategy will prove in mutual benefit to company as
well as to local people.

Q#9: What is the cost structure of your company or organization?

The cost structure of the company is given as under:

Cost per unit:

Battery Cost:
The battery is the most important part of the solar unit to provide 24/7 electric supply to the
appliances. This equipment will supply energy to appliances at day or night time when sun is not
shinning. The battery used by our country will be Lead Acid battery normally used at homes.
The estimated cost of 12V 100AH battery is Rs.10, 000 to Rs.12, 000
Solar Cell Cost:
The solar cell is the component that uses the photovoltaic cells to convert light into electric
current. The solar cells of 500Watts will be provided, which are enough to supply electric power
to a home. The wattage rating is as:
Ceiling Fan 40W
4 Severs of 25W= 25X4=100W
Rest 360W will be used to charge the battery for night use.
The cost of solar panels is Rs.10,000
Inverter Cost:
The inverter makes the voltage compatible with the battery and appliances in the whole solar
unit. An inverter of 1000W costs only Rs.14,000
Charge Controller:
The charge controller used for this is of 10A and it costs only Rs.6000
Other expenses:
The other expenses include movement and installation cost on each solar unit that is Rs.3000
The wages of employees:

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Being a social project this business plan doesnt earn more profits. The business keeps the cost
structure variable because we provide a flexible option to our customers whether they pay us
quarterly or monthly in easy installments. The business charges 20% interest rate on monthly
payment to company, the wages will be earned from the interest rates earned by the company.
The profits earned and the expenses of the equipment calculated at 20% interest rate per single
unit are given in the below pi-chart:

Cost & Profits

17.9%
22.5%
Battery
5%

Inverter

Solar Cell
Charge Controller
11.1%

Other Expenses
Profit
25%
18.5%

The other charges also include some amount for labor and the electricians working there will
take wages from this portion. On the other hand the profits will generate the expenses of offices
and the amounts that will be returned to banks and dividends paid to the partners.

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