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 toothier parts of the country. Since its 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 cores was raised
as internal capital and through loans. The company wills 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 andAravind have a very less experience in this field. The nature of the business
is that it doesnt demand much mechanical knowledge about the business. The number of
employees required is very few. Auto shines 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 washs 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 a part of family

Competitive advantage

Larger and newer facility

Entertainment zone for kids
Shopping area on site
Location with regard to vehicle flow

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 own strengths and weakness. Having a clear knowledge about both the
strength and weakness of the company makes the business competing one. The weaknesses of
Auto Shine are

High rate of leasing

Possibility of more capital flow is less.
Further expansion of the facility is not possible.

Opportunities

There is 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 totes 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 isles
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 its 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
Shinwell definitely shines in the car wash industry service center. So a car wash center
like Auto Shinewill definitely shines 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 Netter 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 NRIs. 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
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

Target Markets
The target market of the car wash industry is theca owners. While discussing about Auto Shine,
the Target market focused are
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

New Car Owners

This group is 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

Local Business
People who own business which involves a distribution process in and around the city will
always own a car for the purpose. The chance of these distribution purpose cars entering eservice
center once in every second or third week of a month is normal. Getting the sales out of this can
make this group target focused. This group of people can be motivated to use the service of Auto
Shine by giving them some monthly offers or another 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 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 smalltime restaurants own vehicles for their
door delivery and catering service. These make one of the Target Groups for Auto Shine.

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 affair charge. This positioning is done so that
people who are in need of a car wash and havenless 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 arousing 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 ball 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 inexperience 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 startup 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= 80,000Annual
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- 25,000Rent-75,000Wastage disposal- 30,000Total fixed expenses- 1, 30, 000
USES OF FUNDS

Real estate- 15, 00,000+75,000=15, 75,000Equipments

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.