this presentation has a business plan for setting up a Bio diesel plant in Laos. it includes all the operational, financial and legal considerations that are to be followed for starting such kind of business

1. Marketing plan
Target segment
The market for biodiesel is as large as the market for petro diesel.
All customer using diesel are our customers such as owners of
cars, truck, buses, DG sets, industries, railways etc. Although
biodiesel can be marketed as an ordinary fuel, so most
perspective customers are farms, in-city transport companies and
those who need the lowest possible pollution levels in their
technological processes: warehouses, owners of generators, etc.

2. The reasoning is the following
• Farms are suppliers of raw materials and can receive
biodiesel as a payment.
• In-city transport companies feel constant pressure to
reduce their fleets pollution levels and will be happy
to buy biodiesel
• Other users may also need non-polluting fuel for such
reasons as safety comfort, ecological concerns. These
customers will definitely choose the biodiesel against
the conventional diesel, if the product pricing is
approximately the same in both cases.

3. Targeting strategies
• Emphasize inherent qualities of biodiesel and focus on target
markets.
• We must differentiate biodiesel from other fuels. We need
to establish our business offering as a clear and viable
alternative for our target markets.
• Produce high quality fuel.
• Offer competitive price at the level of the conventional
diesel fuel.
• Create strong distribution channels to ensure stability of
production.

4. Cont...
• Emphasize key advantages of our product.
• Build a relationship business: long-term
relationships, not single-transaction deals with
customers.
• Become their fuel supply department, not just a
vendor. Make them understand the value of our
relationship for the whole society and economy.
• Focus on fuel distributors and big consumers as key
target markets
• We will be spreading awareness amongst the
farmers so that they plant Jatropha under hedging
basis

5. Other STRATEGIES
• For placing emphasis on quality, our main tactics
are technology expertise and developing our own
supply network. Our specific programs for
technology are continuous learning and research.
Specific programs for supply include cultivation of
rape-seed and cooperative agreements with local
farms.
• Our second strategy is the product’s low cost. The
tactics are reaching the lowest possible cost of
raw material by using most productive breeds of
rape, fertilizers and herbicides, implementing the
most effective operations in production.

6. VALUE PREPOSITION
We offer ecology-friendly and renewable type of
fuel at a reasonable market price. Our project
brings also new jobs and high-technology to
Laos agriculture and makes a further step
towards the energy independence of the Laos
economy.

7. Positioning
We’re positioning our product for
those, who need and want to use non-
polluting, ecologically friendly fuel. Unlike
mineral fuel, biodiesel is renewable energy
source, with comparable cost and
performance.

8. Promotion
We depend on direct contacts as our main way
to reach new buyers. As we grow, however, we
need to change the way we promote ourselves.
We will be selling biodiesel produced through a
network of retail outlets established all over
Laos.

9. Advertising
• We'll be developing our core positioning
message: "Clean Fuel of Future" to
differentiate our service from the competition.
We will be using local newspaper
advertising, radio, and cable TV to launch the
initial campaign. Seminars, exhibitions and
other promotion and charity campaign.

10. Distribution
We focus on the market need for environment
friendly fuel distributed through the authorized
gas filling stations. We will also maintain close
relationship with transport companies and
agricultural enterprises.

11. Price
We must charge appropriately for this unique
type of fuel, and to eliminate market risk we
plan to sell biodiesel slightly lower than current
market price for petro diesel.

12. Competitive Edge
The use of biodiesel can extend the life of diesel
engines because it is more lubricating than
petroleum diesel fuel, while fuel
consumption, auto ignition, power output, and
engine torque are relatively unaffected.
Combustion of biodiesel provides over a 75-
90% reduction in environmental pollution and a
90% reduction in cancer risks.

13. Sales Plan
• Product Assortment: Biodiesel is planned to be sold
using direct mail, seminars, promotion programs and
advertising in business newspapers. Because
biodiesel is a valuable fuel for in-city transportation
companies, direct mail to these and other companies
would be effective tool in promotion.
Ecology, energy, technology related seminars are
effective in finding regional
representatives, partners, suppliers and buyers of
our product. Promotion programs are: discounts to
those carrying our trademark and symbolic, support
to ecology and renewable energy concerned
organizations, participation in regional fairs and
events.

14. Sales Strategy
• Our major intention is to keep levels of
monthly production, sales, and collections
together. For this reason we planned storage
capacities only for one month’s production.
Because biodiesel is highly liquid product, this
goal can be implemented with right choice of
distributors and suppliers

15. Risk Analysis
• Country risk: Laos is regarded as a risky business
environment, but conditions are improving
continuously. The country has entered a stable
growth period after the former years’ decline.
Moreover, we determined the electricity costs to be
higher than in normal cases, so as to finance the
assurance of continuous electricity supply, an extra
service in the country.
• Sector risk: The main sector risk is the unpredictable
output of the Jatropha in each year. The necessary
measures are assured in the project budget to cover
this risk. The appropriate cultivation conditions can
be maintained by the proposed agricultural
equipment, moreover, insurance was also planned to
cover weather risks.

16. Cont..
• Other part of the sector risk comes from the
technology itself, the greatest threat may come
from latest developments in the biodiesel
processing. A more cost effective production
method requiring totally new equipment could
make our plant obsolete. Therefore new
inventions concerning the biodiesel fuels should
be closely tracked, the cooperation with the local
scientific organizations in the region is primarily
aimed at minimizing this type of technological
risk.

17. Cont..
• Company risk: Because of the newest
technology, the company has a bit more risk
than that of a traditional firm. The highly
qualified and fully committed management
team will do its best to decrease it as much as
possible.