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.