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.