Business Plan-I - Car Spa

I- CAR SPA
BUSINESS PLAN

Prepared by: MBA IB 14-17
Karunesh Mathur
24.10.2014

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 2
Long Term Aim of Business 2
Objectives 2
S.W.O.T. Analysis 3

3) Market Analysis 4
Competitor Analysis 4
Customer Analysis 4
Market Product Focus 4
Project Objectives 4
Target Market 5

4) Marketing/Sales Strategy 6
Marketing strategy 6
Product Strategy 6
Prising 6
Marketing & Communications Strategy 7
Distribution Strategy 7

5) Future Expansion & Development 8

6) Staffing and Operations 9
Management Organisation Charts 9
Staffing 9
Training Plans 9
Operations 9
7) Financial Projections 10
Start Up Cost 10
Operating Cost 10
Revenue Generated 11
Variable Cost 11
Fixed Cost 11

8) Funding Requirements 12
9) Organisation 13
10) Evaluation & Controls 14

i-Car Spa , 2014

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.

i-Car Spa , 2014

1
1.Executive Summary

The i car spa is a unique door to door car detailing services where local car loving
public gets an opportunity to experience scientific and professional vehicle care.

This section should not be completed until the business plan is written. The following
point highlights all milestones in the companys development over the next five years,
which are as follows:

Purpose of the plan
Product or service and its advantages
Market opportunity
Management team
Track record, if any
Financial projections
Funding requirements

Financial projections are summarised and highlighted.

Year 1 Year 2 Year 3
Sales 432000 496800 595000
Net Profit before Tax 48000 51800 65000
Investment 150000 200000 250000
Employment 234000 245000 280000

0
10000
20000
30000
40000
50000
60000
70000
Year 1 Year 2 Year 3
Net Profit before Tax
Net Profit before Tax
i-Car Spa , 2014

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2.Company Description

Promoters and Shareholders

The people involved in starting the business:

Promoters Online Services Just Dial , India Mart& Print Media
Management structure Owner Sales Manager Service Manager- Sales
Executives Service 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 step
who 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 International
level is not possible.
Opportunities
Initially 50000 more high end cars in
south Delhi
The Income levels of people are
higher side as compare to other
part of Delhi.
The main opportunity is door step
service giving a competitive
advantage to the Company.
Higher Referral Sales promotion by
better & timely car care service.

Threats
The main threat of the company
will be the competitors potential to
create core competition in the
field.

More number of business coming
to the scenario.

i-Car Spa , 2014

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3.Market Analysis

Analyzing the industry of car spa in India, particularly in south Delhi or Delhi is not
much 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 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
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 a
concern 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 and
around the Delhi NCR 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 high
compared 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 Objectives
Objective 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 shine
of 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 Markets
The target market of the car wash industry is the car owners. While discussing about i--
Car Spa, 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 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 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 i-Car Spa 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 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 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 I Car Spa.

Points of Difference
The main features that differentiates i-Car Spa 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.

i-Car Spa , 2014

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4.Marketing/Sales Strategy

Marketing Strategy

i- Car Spa 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 i- Car Spa.

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 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 the
income 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

i-Car Spa , 2014

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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, Mailer Distribution.
Website and internet marketing- Just Dial , Sulekha, India Mart , Website
Exhibitions and conferences- All India, Delhi Auto Expo, Builders Meet Event.
Word of mouth Referral 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 maximum
in 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.
i-Car Spa , 2014

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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 a
chance 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 targeting African 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
i-Car Spa , 2014

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6.Staffing and Operations

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

Management (including Board) Organisation Chart

<< Include a diagram of the way in which the management of the new venture will
be organised. This should show the areas of responsibility of each manager and the
employees to be taken on over the next three years. >>

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 market
developments and any new product or service developments.

Operations

200 sq ft Premises
Equipment water cleaning, Ozone Treatment, Teflon M/c , Steam Machine.
Communications facilities- Toll Free,Enquiry Centre Mobile Number.
Costs involved
Suppliers- polish, cleaner, car cleaner.

i-Car Spa , 2014

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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 Registration Rs 25000.

Infra/Premises Rent Deposit Rs 25000

Equipment Payment : Rs 100000

Total: Rs 1,50,000.

Operating Cost:-

Salaries : Rs 30000

Tele Communications- Rs 2000

Raw Materials Rs40000

Wastage Disposal Rs 32000

Electricity & Gas Rs10000

Promotion : Rs 100000

Maintenance : Rs 20000

Total: Rs 2,34,000.

i-Car Spa , 2014

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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

i-Car Spa , 2014

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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 >>

i-Car Spa , 2014

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10.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 Pitstop. 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

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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 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

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