Business Plan-i -Car Spa

8/10/2019 Business Plan-i -Car Spa

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I-CAR SPA

BUSINESS PLAN

Prepared by: MBA IB 14-17

Karunesh Mathur

24.10.2014


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Strictly Private & Confidential

i-Car Spa , 2014

This document is the proprietary property of i-Car Spa

Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement.

i

Table of Contents

Page

Confidentiality Agreement ii

1)

Executive Summary 1

2)

Company Description 2

Promoters, shareholders and Board 2

Mission 2

Vision 2Long Term Aim of Business 2

Objectives 2

S.W.O.T. Analysis 3

3)

Market Analysis 4

Competitor Analysis 4

Customer Analysis 4Market Product Focus 4Project Objectives 4

Target Market 5

4)

Marketing/Sales Strategy 6

Marketing strategy 6

Product Strategy 6Prising 6

Marketing & Communications Strategy 7

Distribution Strategy 7

5) Future Expansion & Development 8

6) Staffing and Operations 9

Management Organisation Charts 9

Staffing 9Training Plans 9

Operations 9

7)

Financial Projections 10

Start Up Cost 10Operating Cost 10

Revenue Generated 11

Variable Cost 11Fixed Cost 11

8) Funding Requirements 12

9)

Organisation 13

10)

Evaluation & Controls 14


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ii

Confidentiality Agreement

The undersigned reader acknowledges that the information provided in this business

plan is confidential; therefore, the reader agrees not to disclose it without the express

written permission of Company i-Car Spa.

It is acknowledged by the reader that information to be furnished in this business plan

is in all respects confidential in nature, other than information that is in the public

domain through other means, and that any disclosure or use of this confidential

information by the reader may cause serious harm or damage to Company.

Upon request, this document is to be immediately returned to i-Car Spa.

___________________________

Signature

___________________________

Name (printed)

___________________________Date

This is a business plan. It does not imply offering of securities.


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2.Company Description

Promoters and Shareholders

The people involved in starting the business:

PromotersOnline Services Just Dial , India Mart& Print Media

Management structure Owner Sales Manager Service Manager- Sales

ExecutivesService Technician and areas of scope South Delhi

100 % proprietorship of Karunesh Mathur, no public assets or shares.

Mission:

i-Car Spa mission is to be a one option for all cars. It aims to provide a

better care for their car at a reasonable price to all people at their door stepwho wish their car to be noted in the group.

Vision:

To be pioneer in car spa domain. To provide quality service, use quality equipment

and value for customer. To diversify their business to all cash spa types including

self service

Long Term Aim of the Business

The long-term aim of the new business to spread to Pan India by Business Franchise &

after 15 years to International Level targeting South African Market.

Objectives

To provide the services the customers at their door step.

To provide local car loving We at i-car spa want the public an exemplary

experience of germ free and dust free car drive for type of car.

At i- Car Spa, we understand the trouble you go through to keep your car

looking good always.

Restoring its radiance to more than just its former glory, is key to having your

car stand apart.

Rejuvenation begins at The Car Spa. We are car grooming centre to have such an array of services under one roof

and our specially trained experts use only the safest and gentlest methods to

make sure your car outshines the rest.

We take great pride in keeping our customers happy and are constantly

upgrading our services and products to assure you excellence in everything

we do. Our priority is customer delight.

In any of the packages we offer, we assure a deep, glossy and wet look finish

on your vehicle.


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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.

Strengths

Door to Door service.

Timely & accurate service.

Quality service by experts.

Eco- friendly service.

Competitive price.

Weaknesses

High rate of leasing.

Possibility of more cash flow is less.

Further expansion of facility Pan

India is not possible.

Expanding Business to Internationallevel is not possible.

Opportunities

Initially 50000 more high end cars insouth Delhi

The Income levels of people are

higher side as compare to other

part of Delhi.

The main opportunity is door stepservice giving a competitive

advantage to the Company.

Higher Referral Sales promotion by

better & timely car care service.

Threats

The main threat of the companywill be the competitors potential tocreate core competition in the

field.

More number of business comingto the scenario.


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3.Market Analysis

Analyzing the industry of car spa in India, particularly in south Delhi or Delhi is notmuch possible because it is on its verge of emergence. But study about current

available industry scenario shows that the car spa industry has many new

opportunities coming up in the near future. This is because of the entry of majorautomotive makers around the world into the Indian market. For car servicing or washof these modern and costly vehicles, it requires an advanced and quality car service

centre at door step. So a car wash centre like i-Car Spa will definitely shine in the car

spa industry.

Competitor Analysis

Analyzing the competitors in the car wash industry it was found that aconcern named Unique Auto Car Care was been established in South Delhi in Delhi is

our main competitor. This enterprise is one of the first car wash centres in Delhi-NCR

region. They offers the same kind of service like our company, differs except in the

policies and practices. There even competition from normal service centres in andaround the DelhiNCR city which has a less effect on the company.

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 South Delhi is really highcompared to other areas in Delhi. 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 in South

Delhi.

Market Product Focus

Market and Product Objectives

Market ObjectivesObjective of the car spa 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 shineof their cars for a long time through the quality service available.

Product Objectives

Not to have a single dissatisfied customer.

Control of waste. Retain the customers. Expand to two more location after three years.

Create a steadily growing net profit margin.

Maintenance of equipments.

Financial management.

Personnel management.


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Target MarketsThe target market of the car wash industry is the car owners. While discussing abouti--

Car Spa, the target market focused are

1. The Old Luxury Car OwnersThis 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 i- Car Spa

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 i-Car Spa.

2. New Car OwnersThis 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 i-Car Spawhenever a need

for car wash arises.

3. Local BusinessPeople 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 thesedistribution purpose cars entering a service centre 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 i-Car Spa by

giving them some monthly offers or any other add on options to their service.

4. Hotels and ResortsIn 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 majorhotels 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 aquality 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 I Car Spa.

Points of Difference

The main features that differentiates i-Car Spafrom 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.


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4.Marketing/Sales Strategy

Marketing Strategy

i- Car Spawill 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 isdone so that people who are in need of a car wash and have less time can always

go for i- Car Spa.

Product Strategy

The company offers different schemes to its customers like paying for the entire monthand 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 sucha way that its affordable by all our customers.

Pricing

The price charged for your product or service. Considerations include:

Competitors prices

Level of competition in the market

Perception of quality-price relationship by customers

Production costs and overheads Chain of distribution and the added-value at each stage

The extent to which the buyer can control the price

Stating each product or service will be priced in the table below referring to theincome sources above.

Door Step Packages

Sr. Description Hatch Sedan SUV/MUV

A water washing 200 250 350

B steam washing 250 300 400

C interior dry cleaning 600 700 1000

D interior + washing 800 900 1300

E ozone treatment 100 150 200

F water marks removal 300 500 600

G polishing + washing 500 600 800

B Dry Cleaning + Steam Cleaning 1000 1200 1400

C Rubbing + Polishing +washing 1700 2000 2400

D Teflon coating 2200 2700 3200

E Glass coating( Rubber +2 coat ) 3200 4000 4700

F sofa dry cleaning with Steam Machine 120 per seat

G carpet cleaning with Steam Machine 15 Rs /sqft


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Marketing and Communications Strategy

There are various ways to promote our product/service in the marketplace which are

as follows:-

Advertising Print Media Ads. , Hoarding Display, Display in Car Dealer

Showroom. Public relations- Friends Referral, Competitor Customers.

Direct marketing- Sales Man Cold Calling, MailerDistribution. Website and internet marketing- Just Dial , Sulekha, India Mart , Website

Exhibitions and conferences- All India, Delhi Auto Expo, Builders Meet Event.

Word of mouthReferral enquiries.

Distribution strategy

During the initial stages the company will be targeting its operations in South Delhi.

and after getting adequate demand moving into other parts of the district. The

successful car wash business dependent on the vehicle flow which is maximumin south delhi after which the next market will be west delhi then north delhi. The

company would offer a door to door delivery system. The business work in

association with other local businesses.


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5.Future Projection Development

After 4years plan to provide the services to North India by Channel expansion.

Propose plan to OEMs to add this service in routine servicing and to get achance of getting an implant in their premises to provide this service.

After 8 year of Business to Pan India by Business Franchise.

After 15 years of Business to Internationally targetingAfrican Countries.

Participationin International/National Automobile expos and Summits to

promote the brand i-CAR SPA.

Tie-ups with corporate Business Centers to provide services to the companies

lying in their


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6.Staffing and Operations

This is where we will give outline the intended structure of the company in terms ofmanagement, number of employees, and the physical operational requirements toproduce or supply the product or service.

Management (including Board) Organisation Chart

>

Staffing

Sales & Service Manager ( after 1year )

Service Executive Senior

Service Executive Junior

Back Hand/MIS Officer

Training Plans

There will be planned employee and management development to be undertaken

in order to maintain a skilled workforce. This will also tie in with the future marketdevelopments and any new product or service developments.

Operations

200 sq ft Premises

Equipmentwater cleaning, Ozone Treatment, Teflon M/c , Steam Machine.

Communications facilities- Toll Free,Enquiry Centre Mobile Number.

Costs involved

Suppliers- polish, cleaner, car cleaner.


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7.Financial Projections

Investment- Start Up Cost + Operating Expenses

Revenue Generated.

Variable Cost & Fixed Cost

Cash flow

1. Investment :

Start up Cost :-

Business RegistrationRs 25000.

Infra/Premises Rent DepositRs 25000

Equipment Payment : Rs 100000

Total: Rs 1,50,000.

Operating Cost:-

Salaries : Rs 30000

TeleCommunications- Rs 2000

Raw MaterialsRs40000

Wastage DisposalRs 32000

Electricity & GasRs10000

Promotion : Rs 100000

Maintenance : Rs 20000

Total: Rs 2,34,000.


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2. Revenue:-

Cash wash min : Rs 200

Expected Sales Unit : 80 per month

Total Monthly revenue : Rs 16000

Special Service Avg 5 in month : Rs 20000

Net per month : Rs 36000

Annual Revenue: Rs 4, 32,000.

3. Variable Cost & Fixed Cost

Variable Cost

Material-

Tele-communications: Rs 2000

Raw Materials: Rs 40000

Electricity & Gas: Rs 10000

Promotion: Rs 100000

Labour: nil.

Total Variable Cost: Rs 1,52,000.

Fixed Cost

Salaries: Rs 30000

Rent: Rs 25000

Wastage Disposal: Rs 32000

Total Fixed Cost : Rs 87000


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9.Funding Requirements

The total funding requirements of the business, are those intended to be provided.We have stated the approximate sources and fields we might be requiring funds are

to be spent.

Sources:

Promoters funds

Bank lending

Grants or loans from agencies

Investment already received

Investment sought

Required for:

Equipment

R&D

Marketing

Staffing >>


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10.ORGANIZATION

Executive teamThere 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. Themanagers have divided the duties to maintain the business, which will includeemployee hiring, building, property and equipment maintenance, marketing

activities, advertising and other promotion activities.

CompensationThe 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 organizedway. 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 oncreating 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 Pitstop. Continuous sales forecast is done on

targeting the segments who want to keep their car clean and looking good yearround.

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


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This document is the proprietary property of i-Car Spa14

11. 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 selfand 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

Documents

Business Plan-i -Car Spa