Auto Shine Car Wash

AUTO SHINE CAR WASH.

Executive summary Auto Shine car wash is a dynamic start up. Unlike other car wash companies Auto shine offers high quality automatic car wash service. It is an answer to customers demand for an automatic car wash which would help them to save their time. Kerala is a good market for a car wash business since it has 250 rain free days. The concept of an automatic car wash is an innovative one of its kind. It provides a new experience to the customers. It is different from the other car washes which is completely manual in nature. It is being started as a partnership company with Amruta.A, Nakul.S.Kumar and Aravind.P as partners. Auto shine is planning to start its operation primarily in Cochin. Once it is establishes in Cochin it would expand its functioning to other parts of the country. Since it’s the first one of its kind it has a wide market to capture. The competitors for the

company are the traditional car washes which offer “full service”. Auto shine mainly targets upper middle class and upper class people having cars who need a quick service. The initial capital of 2.5 crores was raised as internal capital and through loans. The company will start functioning after 90days of obtaining the finance.

Company description The company is formed under partnership act, 1932. The partners of Auto Shine car wash Amruta, Nakul and Aravind have a very less experience in this field. The nature of the business is that it doesn’t demand much mechanical knowledge about the business. The number of employees required is very few. Auto shine completely wash and dry in just five without being touched by human hands. The three partners bring in equal amount of 60 lakhs

and a loan of 70lakh. Auto shine has an automatic car wash bay and a vacuum bay. The land is taken on a lease for three years. The main equipment includes a high power water pump, an industrial vacuum cleaner, a computer terminal and a cash register. There is an entertainment zone for kids and a small shopping area attached to it. There are enough waiting rooms for customers. To become premier car wash company, the company will offer outstanding quality, good hours, exceptional service, and reasonable pricing. The company will listen to its customers and conduct surveys.

STRATEGIC ANALYSIS Mission: Auto shine car wash’s mission is to be a one stop for all cars. It aims to provide a better care for their car at a

reasonable price to all people who wish their car to be noted in the group. Vision: To be pioneer in car wash domain. To provide quality service, use quality equipment and value for customer. To diversify their business to all cash wash types including self service. Goals: •

Not to have a single dissatisfied customer.

• Expand to two more location after three years. • Create a steadily growing net profit margin. • Control of waste • Maintenance of equipments. • Financial management • Personnel management

Core

competency

and

sustainable

competitive

advantage. Auto shine will meet the unfilled need by providing customers with competitively priced and high service car wash. Customers will be attracted because of our atmosphere, pricing, and facilities. They will be welcomed as part of family. Competitive advantage • Larger and newer facility • Entertainment zone for kids • Shopping area on site • Location with regard to vehicle flow

Situation Analysis. SWOT Analysis

Every company analyses its Strength and Weakness which are internal and Opportunities and Threats which are external, involved in its process. This to understand and measure the environment in and around the business.

 Internal Strengths and Weakness  Strengths A company stays competent and survives on the basis of its strengths. On the basis of SWOT analysis, the strength of Auto shine is discussed below.  Location of the business.

 Quality service by experts.  Timely and accurate service.  Eco- friendly service.  Competitive price.  Weakness Every company has its on strengths and weakness. Having a clear knowledge about both the strength and weakness of the company makes the business a competing one. The weaknesses of Auto Shine are discussed below.  High rate of leasing.  Possibility of more capital flow is less.  Further expansion of the facility is not possible.

Opportunities •

There are more no. of vehicles in Cochin considered to other districts in Kerala.

• The income level of people are higher compared other people in other districts. • The main opportunity is that the location of the facility which gives a competitive advantage to the company. • New and advanced business is developed in Cochin because of more opportunities. Threats • The main threat of the company will be the competitors potential to create core competition in the field.

• Availability of water resources in Cochin is less. • More number of business coming to the scenario. Industry Analysis Analyzing the industry of car wash in India, particularly in Kerala is not much possible because it is on its verge of emergence. But study about current available industry scenario shows that the car wash industry has many new opportunities coming up in the near future. This is because of the entry of major automotive makers around the world into the Indian market. For car servicing or wash of these modern and costly vehicles, it requires an advanced and quality car

service center. So a car wash center like Auto Shine will definitely shine in the car wash industry. Competitor Analysis Analyzing the competitors in the car wash industry it was found that a concern named Master Motors was been established in Nettoor on the National Highway bypass in Cochin is our main competitor. This enterprise is one of the first car wash centers in Kerala which is funded by NRI’s. They offers the same kind of service like our company, differs except in the policies and practices. There even competition from normal service centers in and around the Cochin city which has a less effect on the company Company Analysis

Auto Shine, one of the advanced centers for car wash will be located in the heart of the Cochin city. Compared to the competitors the main factor that differentiates the Auto Shine is its customer oriented quality service. The company gives quality service at a fair charge by which the time and money of the customers are saved. Customer Analysis The customers of the company are mainly from middle class, upper middle class and upper class in the society. The rate of service charged is affordable for any person owning a car in these classes. The car population in Cochin is really high compared to other districts in Kerala. So more customers can be gained from this large number of car owners and this is the

main reason for the business to be setup on Cochin City.

Market Product Focus • Market and Product Objectives • Market Objectives Objective of the car wash industry is to provide a quality service to the customers at a short time for a minimum charge, which saves time and money of the customers of car service industry. Give the luxury car owners an option to keep the sparkling shine of their cars for a long time through the quality service available. • Product Objectives

o Not to have a single dissatisfied customer. o Control of waste. o Retain the customers. o Expand to two more location after three years. o Create a steadily growing net profit margin. o Maintenance of equipments. o Financial management. o Personnel management. • Target Markets The target market of the car wash industry is the car owners. While discussing about Auto Shine, the Target market focused are 1. The Old Luxury Car Owners – This category involves people who have a luxury car for a long time and finds it difficult to

keep the looks of the car as new as when it was bought. The focus is to attract these customers to use the service of Auto Shine regularly whenever they need service for their cars and it can be done by assuring and promoting about the advantages of quality service given by Auto Shine. 2.

New Car Owners – This group are the main people to be given more focus. A new car owner will always look for a quality service for their new car. If they are given a good service then they will continue using the service of Auto Shine whenever a need for car wash arises.

3.

Local Business – People who owns a business which involves a distribution process in and around the city will always owns a car for the purpose. The chance of these distribution purpose cars entering a service center once in every second or third week of a month is normal. Getting the sales out of this can make these group target focused. This group of people can be motivated to use the service of Auto Shine by giving them some monthly offers or any other add on options to their service.

Hotels and Resorts – In the hotel and resort industry, the concern will be equipped with luxury cars as a transport service for their

customers to travel in the city. The major hotels like Taj, Le Meridian etc. are equipped with luxury cars. So even these hotels becomes a target group for the company for these group are also looking for a quality car wash service for their luxury cars. There are even resorts which own cars for the customer transport. Even small time restaurants own vehicles for their door delivery and catering service. These make one of the Target Groups for Auto Shine. Points of Difference The main features that differentiates Auto Shine from other competitors are 1. The quality of service given with highly equipped machines.

2. Quality service at a minimal price. 3. Convenience to customers to choose from the different packages available. 4. Eco-friendly service process. 5. The location of the enterprise. Positioning Auto Shine will be positioned in the minds of people who own a car and is looking for a quality car wash service which consumes less time, for a fair charge. This positioning is done so that people who are in need of a car wash and have less time can always go for Auto Shine. The Tagline of the enterprise is

Marketing program Product strategy The company offers different schemes to its customers like paying for the entire month and getting huge discounts. There are also other offers according to the car they are using like new cars, older luxury cars, or sports car. In accordance to the target market we have diversified our offers to the customers and brought new innovations into the market so as to get maximum market share. The product is positioned is such a way that it’s affordable by all our customers. Price strategy The pricing strategy varies in accordance to the customers, Like what we demand normally is like 200/- per wash and in case of monthly service we offer it for 4000/-. We are pricing slightly more than the traditional car washing

company as we save their time and provide high quality service in return of their money. All though the competitors are pricing less we are sure that once the customers have an experience of our service and know about the product attributes then they will certainly demand our service. Promotion strategy When dealing with this we will be taking into account the appropriate advertising method to be adopted like giving ads through newspapers, pamphlets, arranging some live demo shows which will create maximum consumer awareness, organizing certain activities for sales promotion like giving free gifts to customers, money off coupons, discount vouchers, sweep stakes and rebates etc personal selling like personal calling of the prospective customers. Distribution strategy

During the initial stages the company will be targeting its operations in Cochin and after getting adequate demand moving into other parts of the district. The successful car wash business dependent on the vehicle flow which is maximum in Cochin after which the next market will be Trivandrum then Calicut. The company would offer a door to door delivery system. The business work in association with other local businesses.

FINANCIAL DATA AND PROJECTIONS The financial data mainly comprises of the start up cost and operating cost Start up cost includes:•

Business registration fees- 984,600

•

Inventory- 1,50,000

•

Rent deposit- 1,50,000

•

Payments on property- 15,00,000

•

Payments of equipment- 1,85,00,000

•

TOTAL- 2,08,50,000

Operating expenses includes:•

Salaries- 25,000

•

Rent/ Lease- 75,000

•

Tele-communications- 2,000

•

Raw materials- 32,000

•

Wastage disposal- 30,000

•

Electricity and gas- 10,000

•

Promotion- 2,00,000

•

Maintenance- 21,000

•

TOTAL- 3,95,000

Income statement Revenue Car wash

Unit price= 200, expected sales quantity= 400per month, TOTAL REVENUE= 80,000 Annual revenue= 9, 60,000 Variable cost/ unit Material•

Telecommunications- 2,000

•

Raw materials- 32,000

•

Electricity and gas- 10,000

•

Promotion- 2,00,000

Labor- nil Total variable cost- 2, 44,000 Fixed cost Salaries- 25,000 Rent-75,000 Wastage disposal- 30,000 Total fixed expenses- 1, 30,000

USES OF FUNDS Real estate- 15, 00,000+75,000=15, 75,000 Equipments Water bay- 1, 00, 00,000. Drier bay- 75, 00,000. Office machinery- 5, 00,000. Shopping area equipment- 5, 00,000. Operating inventory- 32,000 Office inventory- 1, 50,000 Utility deposits- 42,000 Research and development- 20,000 Business registration- 5, 50,000 Total use of fund- 20319000 Owner Contribution-180, 00,000 Loan raised- 70, 00,000

ORGANIZATION Executive team

There are three partners who control the overall operation of the business. Each one of the owners has their own functions in the operations of the business. The managers have divided the duties to maintain the business, which will include employee hiring, building, property and equipment maintenance, marketing activities, advertising and other promotion activities. Compensation The profit is shared among the partners equally, there is no additional salary paid to any of the partners for any of the functions performed by them.

IMPLEMENTATION The entire aforesaid marketing plan has to be implemented in a very organized way. The three partners have a good business as well as personal connections. Therefore one to

one marketing can be implemented in business level. The quality of service will create loyal and repeated customers. This also gives rise to word of mouth marketing in immediate environment. Emphasis is given on creating a system that is both fast and efficient, which will keep costs, in terms of time spent per car, to a minimum. In sales care is given to each vehicle to value the customer as a friend of Auto shine. Continuous sales forecast is done on targeting the segments who want to keep their car clean and looking good year round. Implementation plan  Completion of business plan  Fulfilling legal and deposit formalities  Set up infrastructure  Hire car wash staffs

 Hire administration staff  Open business  Promotional works  Follow up

EVALUATION AND CONTROL Continuous evaluation is necessary for sustaining and developing the business. There must be evaluation and control system for all major functions of business like: Revenue and unit sales, Expenses, Customer feedback and other major self and competitive activities. The market is ever changing, since there is a large market to capture a lot of competition may arise in the market. A continuous evaluation of competitors must be conducted. As technologies develop day by day the business must be

updated accordingly. The future of the business mainly depends on evaluation and control.