Professional Documents
Culture Documents
Section 02
Date: 20-11-2014
Letter of Transmittal
Dear Sir,
It gives us a great sense of joy and pleasure to submit our final report of the course “MGT-490”
to you. We chose to work on a business plan which will make the life of the car owners much
efficient, when it comes to washing their car and other relevant automobile servicing. So we
intend to do a business plan on “Anonymous Car Wash”.
If you need any further information or clarification regarding the report we would be happy to
provide that to you.
Yours Sincerely,
In order to prepare this business plan it was necessary to survey several other
companies or service centers which are of relevant field, and to know their policy
and procedure. There are some organizations in abroad, which are very popular in
this field. So, the researchers decided to survey these service centers to prepare the
business plan on Anonymous Car Wash (ACW) ™ Company. Researchers have
tried to prepare this business plan in such a way that it reflects the total procedures
of business description, marketing, manufacturing, ownership, management,
service, potential risk, financial analysis etc.
The business plan of The Anonymous Car Wash, automatic car washing company
has been prepared for Mr. Md. Ali Arafat (Course instructor of Strategic
Management, MGT490) as a partial requirement of the course. So the report
mainly provides information about how to start select and run new business that
will provide a service that is innovative. It provides-
Researching the market to know about the prospect of the selected business.
plan.
The world is changing day by day. Modern technologies are coming close to
people’s life more quickly and easily. People are getting busier. In the recent days,
a car is not considered as a luxury item. In this busy life a car is a necessary item of
life. In last 10 years, the population of cars has increased many folds. So, the Car
Wash industry has grown rapidly. In today’s context the owners themselves drive
most cars and would any day prefer to have a quick car wash, rather than leaving
the car the whole day at service station. It is not convenient for them to leave the
car for a whole day to wash the car. So, rather than the ordinary hand wash, it is
necessary to find a way to wash the car by a sophisticated high impact pressure jet
wash technology. Owning and running a car wash these days, is not just a mere
business but, it is one of the most lucrative and respected business.
Automatic car wash is the modern way in which the cars are not washed by
hands. In this new technology the cars are washed by a sophisticated high impact
pressure jet wash technology. The Anonymous Car Wash, automatic car washing
co will be a new business opportunity in Bangladesh. This modern technology of
car wash will provide the car owners a car wash for which they will not need to
wait for a long time. The Anonymous Car Wash, automatic car washing co will
wash a car within a few minutes. It will use latest proven and successful
technology in washing vehicles. It is a so fast process that the owner or drivers
need not to leave the car. They can just wait ten minutes and take the delivery of
a fresh and clean car. In this process nobody will use hand to wash the car. The
total process is automated and the machines will do the duty of cleaning instead
of the hands of the car washing people. At present, we are Bangladesh based
service provider of car wash. We have also developed a new two wheeler wash
system, which can accommodate all types of two wheeler vehicles. Our
equipments use high-pressure water for cleaning. We also use friction / brush
type of equipments with specially made soft brushes that don’t scratch our
customer’s car paint.
Company’s objective:
Vision:
The Vision is to be the pioneer in car wash domain. To provide quality service, use
quality equipment and value for customer.
Mission:
The “Anonymous Car Wash” automatic car washing co. has a fully automatic system. It has a
three step washing sequence. The first pass is high-pressure pre- wash which has wetting
chemicals to wet dirt on car surface. The second pass is soap application process by special
nozzles. The third pass is high-pressure rinse, which removes all the dirt, off the car surface. The
horizontal water nozzles bank follows the contour of the vehicle. A high-pressure plunger pump
assists the main washing arch for cleaning the tire and rocker panels.
This is special spray arch, equipped with low discharge, wide coverage nozzles. The pre wash
arch sprays water initially over the vehicle to soak the hard mud stains, salt deposits, bird
drippings etc.
c. Soap system:
Soap system sprays soap and chemical formulation over the car surface. Soap spraying assists
the high-pressure washing and enhances the cleaning value.
The horizontal bank of nozzles follows the contour of the car, whichever it is. The horizontal
bank always maintains, safe 300 mm distance away from the car surface. The water jets always
adjust their angle according to the vehicle, i.e. at beginning; the jets face the bonnet and the
wind shield for better cleaning action and so on.
Special high-pressure nozzles located at wheel level remove darts from hard to clean areas near
the wheels. Special plunger pump, which enhances the pressure to knock off dirt from wheel
and rocker panel areas.
f. Wax systems:
After the high pressure rinsing is over, wax is sprayed on the vehicle surface to give them a
shiny finish. There are two types of wax systems- silicon wax system and triple foam wax
system. Anyone can be provided as needed.
Silicon wax system:
Silicon wax is sprayed on the car surface. The silicon wax is sprayed all over the car using
special atomizing nozzles, after the washing cycle. Although wax formulation gives
instant shine and protection, in addition, it softens the hard rubber wipers and beading
of the car. Secondly it is water repellant and hence avoids staining of glasses due to
droplet formulation.
Triple foam wax system:
Triple foam wax commonly known as tri wax, which contains three-colored wax, which
is sprayed on the vehicle. The foam created on the vehicle surface gives a sense of
satisfaction to the customer, for which he is paying for. The triple foam wax is sprayed
by special foam generating nozzles. A high-pressure pass washes off the foam created
on the vehicle surface.
Its only takes 10 minutes to wash your car (if you don’t have to wait in queues). You have to
go through the washing base and come out with the end of the tunnel and this process will
take only 10 minutes.
We will provide sophisticated high impact pressure jet wash technology in our washing
base.
There will be no touch of hand while the car will go through the washing base.
The car looks more shinny and clean after wash because its go through a washing tunnel
where high pressured water clean all the dirt’s and its human touch free wash, that’s why
the car look more clean and shinny.
Business Environment Analysis
Anonymous Car Wash will be located at Chittagong. At first we had to survey and
collect data to select the market area. We have surveyed in different places and
different people. We took their opinion about when and where they want the
service. We have asked the Municipal Corporation of our city, if they are planning
to start some project which may affect the car population in our business locality in
near future (Building of fly over, by - pass, etc.). At last we have decided that we
will establish our “Anonymous Car Wash”, automatic car washing company on
Agrabad Area. Because it’s on a main road. Owners of private cars, which are our
clients, will be available in this road very much. This place is also near to other
area of the city. We all know that the people living in these areas are almost all
financially solvent and have a high standard lifestyle. So, they can afford and they
will be willing to get our service for their private cars. Our criteria of customers for
the Anonymous Car Wash are as follows,
New car owners: Owners of new cars are most likely to use a hand car washing
service. These owners take great pride in their cars and will bring them often to the
wash and detail service. The goal with these customers is to promote regular use of
the wash and detail service. The aim is to inform these customers that Soapy Rides
will keep their car looking as good as it did the day they drove it off the lot.
Older luxury car owners: These people have either owned their high-end luxury
cars for several years or are unable to afford the expense of a new luxury car but
want the feel of relaxed driving. Both of these groups want to keep their cars in the
best shape possible. Those who have bought second-hand cars will often spend
many hours in their cars and will place high importance on keeping their cars
looking good. These owners will bring their cars in for regular washes and
occasional details.
Sports car owners: These people are often younger or middle-aged men and will
regard the look of their car as important. They will also pride themselves on the
look of their car and will have their car hand washed (at least) weekly. These
drivers will have an occasional detail, but will keep their cars so clean the detail
will not be necessary very often.
Lifetime owners: Many of these people have owned their cars for more than ten to
fifteen years and they are attached to their cars as friends and though it may be
more sensible for them to purchase a new car, they will bring their car in for a
wash occasionally, just when the car is dirty. They like their cars to look
presentable, and want to keep it in good shape but are not tied up in the look of
their car. For this reason, they will not have a detail carried out on their car unless
they are selling it.
The competitors in this industry are namely “Navana Car Wash”, “Badsha Miah
Petrol Pump’s Car Wash”, “OC Petrol Pump Car Wash” and “Southern Car
Wash”.
All the people who have a private car are our target market. As we are the only
provider of this service in our country, we can have a monopoly market here. We
are expecting to have approximately 8000-9000 taka revenue per day from our
washing plant. There is 60% of new car owner, 32% of old luxury car owners and
8% of sports car owners are our main target market.
Competitive Analysis
As Anonymous Car Wash automatic car washing co. is new and innovative
industry in our country, yet we do not have any competitor exactly like us. But
there are several petrol pumps, which are providing this service manually. These
petrol pumps are our main competitors now.
From the positioning map we can see that Badsha miah petrol pump got -7 in
timing and 1 in clean a shinny car wash. On the other side QC petrol pump got -3
in timing and -2 on clean and shinny wash. Navana got the closer position to our
company they have got 4.5 in shinny and clean wash and -2.5 in timeliness.
Another car wash southern car wash got -3.5 in shinny and 3.5 in timeliness. In this
positioning map our company Anonymous Car wash got 7.5 in clean and shinny
car wash and got 7 in timeliness.
The SWOT analysis of our company, in context of the competitors is as follows,
Strength:
Weakness:
Opportunity:
Threat:
People might not take this new change very soon and they might prefer the old
manual system
It might be very costly to make people aware of this new opportunity.
Many new companies might find it profitable and enter into the business
Market Analysis
Owners of newer cars are most likely to use a hand car washing service. These owners take great
pride in their cars and will bring them often to the wash and detail service. The goal with these
customers is to promote regular use of the wash and detail service. The aim is to inform these
customers that Soapy Rides will keep their car looking as good as it did the day they drove it off
the lot.
These people have either owned their high-end luxury cars for several years or are unable to
afford the expense of a new luxury car but want the feel of relaxed driving. Both of these groups
want to keep their cars in the best shape possible. Those who have bought second-hand cars will
often spend many hours in their cars and will place high importance on keeping their cars
looking good. These owners will bring their cars in for regular washes and occasional details.
These people are often younger or middle-aged men and will regard the look of their car as
important. They will also pride themselves on the look of their car and will have their car hand
washed (at least) weekly. These drivers will have an occasional detail, but will keep their cars so
clean the detail will not be necessary very often.
Lifetime owners:
Many of these people have owned their cars for more than ten to fifteen years and they are
attached to their cars as friends and though it may be more sensible for them to purchase a new
car, they will bring their car in for a wash occasionally, just when the car is dirty. They like their
cars to look presentable, and want to keep it in good shape but are not tied up in the look of their
car. For this reason, they will not have a detail carried out on their car unless they are selling it.
Our Market Segmentation has been shown below,
There are different age groups in the total market. As we can see from the chat it’s the total
over view of the market. But we should not go for every age group. We are selecting 25-44
years and 45-65 years groups segment for our business because we are thinking they will be
more profitable for our business.
Whose monthly income-ranges are between Taka 51,000 to above Taka 100,000 are more in
numbers among the target market groups. The company needs to cater products according to
the demands of these segments.
Occupation Based Segmentation:
Chittagong being the port city, there being more businessmen among the target market, this is
very important to consider that their buying habit is somewhat different from that of normal
service holders. We are also targeting Executives and the professional and technical people.
Value Proposition:
Its only takes 10 minutes to wash your car (if you don’t have to wait in queues). You have to go
through the washing base and come out with the end of the tunnel and this process will take
only 10 minutes.
We will provide sophisticated high impact pressure jet wash technology in our washing base.
There will be no touch of hand while the car will go through the washing base.
The car looks more shinny and clean after wash because its go through a washing tunnel where
high pressured water clean all the dirt’s and its human touch free wash, that’s why the car look
more clean and shinny.
Sales and Marketing Plan
Marketing strategy
For advertising we have to use several media. Because it’s a new business in our country and
people are not aware of this service yet. So we have to advertise more to make them aware of
this new opportunity of car wash. The process of our advertising is given below.
Focus on increasing sells and try to get the breakeven point of the business.
Strategy Pyramids:
Marketing Mix:
Product:
Brand Name:
Quality:
Design:
Variety:
Price:
Pricing strategy:
Our pricing strategy will be based on competitive pricing according to our rivals.
Price List:
Place:
Location:
Coverage:
Land Selection
Basis of evaluation of the land
Selected Land (Agrabad Area)
Rectangular
Enough space for Customer Car parking and any future
Shape and space projects if desired.
Busy Street
Turning, corner plot
Street Characteristics No Exit restrictions (One Way etc.)
The site on the side by which the majority of the
drivers pass on their way home.
Near a traffic signal
Near a Shopping Mall, Cinema Theatre, Gas Station,
Car Service Station, Public Place, etc.
Promotions:
Advertising:
TV:
We will provide our ads on NTV, RTV, Desh TV in between news hours and also talk shows.
Newspaper:
Our car wash is based on Chittagong city so we should focus on some local news papers like The
dainik purbokon, the Azadi. We will provide ad on national news papers as well like The
prothom alo, The daily star.
FM Radio: Radio is one of the mass media of communication. So we will provide some ads on
fm radios too.
Internet:
Billboards:
We will provide some billboard ads on GEC, Agrabad, Near Chittagong port.
We will also send some leaflets to some transportation company like KK automobiles, HNS,
Ample Automobiles, Blue Bonnets etc.
People:
Hiring people:
We need to appoint some people for maintaining our wash plant. We need some people for
accounts department, and also need some engineers for maintaining the wash bay.
Training people:
We will train them how to operate the wash base, how to maintain it properly
Ownership:
The Anonymous Car Wash Co. would be structure with the articles of partnership. All the
directors would have equal shares. The features of the company’s ownership are the following:
Industry would be created with the article of partnership
The talent of the partners helps the business to grow
The business and contracts of the partners have flexibility
More capital in the industry
Helps to develop cooperation and natural trust
There will be unlimited liability on each partner
Danger of disagreement is there
Process:
Collect the token by paying on counter: First the customer has to pay on the counter
and need to take the token from the counter.
Wait in Queue: If the wash base is busy then the customer has to wait in parking lot.
They can wait also in waiting lounge or can have come coffee from our cafeteria.
Go to the washing tunnel: If the washing tunnel is free then the tunnel guide will call
you to drive through the washing bay.
Slowly drive through it: After that the driver has to drive through the wash bay slowly. In
that time car will be washing with the high impact pressure jet wash technology in our
washing base.
Finally come out through the end of the tunnel: After ending the process you have to
come out through the end of the tunnel.
Check the car: The customer will check the car that is it washed well on not.
Finally take the delivery: after checking the car the customer will take the delivery the
car.
The process of the service will be very simple. The cars will enter into the
machine, and water will be sprayed. After that the machine will wash the car with
necessary washing solutions and detergents. Then the car will be washed again by
water. Finally the car will be dried by hot air and the car will come out, neat and
clean.
The Auto Base Car washer™ automatic car washing co has a fully automatic system. It has a
three step washing sequence. The first pass is high-pressure pre- wash which has wetting
chemicals to wet dirt on car surface. The second pass is soap application process by special
nozzles. The third pass is high-pressure rinse, which removes all the dirt, off the car surface. The
horizontal water nozzles bank follows the contour of the vehicle. A high-pressure plunger pump
assists the main washing arch for cleaning the tire and rocker panels.
This is special spray arch, equipped with low discharge, wide coverage nozzles. The pre wash
arch sprays water initially over the vehicle to soak the hard mud stains, salt deposits, bird
drippings etc.
Soap system:
Soap system sprays soap and chemical formulation over the car surface. Soap spraying assists
the high-pressure washing and enhances the cleaning value.
The horizontal bank of nozzles follows the contour of the car, whichever it is. The horizontal
bank always maintains, safe 300 mm distance away from the car surface. The water jets always
adjust their angle according to the vehicle, i.e. at beginning; the jets face the bonnet and the
wind shield for better cleaning action and so on.
Special high-pressure nozzles located at wheel level remove darts from hard to clean areas near
the wheels. Special plunger pump, which enhances the pressure to knock off dirt from wheel
and rocker panel areas.
Wax systems:
After the high pressure rinsing is over, wax is sprayed on the vehicle surface to give them a
shiny finish. There are two types of wax systems- silicon wax system and triple foam wax
system. Anyone can be provided as needed.
Silicon wax is sprayed on the car surface. The silicon wax is sprayed all over the car using
special atomizing nozzles, after the washing cycle. Although wax formulation gives
instant shine and protection, in addition, it softens the hard rubber wipers and beading
of the car. Secondly it is water repellant and hence avoids staining of glasses due to
droplet formulation.
Triple foam wax commonly known as tri wax, which contains three-colored wax, which
is sprayed on the vehicle. The foam created on the vehicle surface gives a sense of
satisfaction to the customer, for which he is paying for. The triple foam wax is sprayed
by special foam generating nozzles. A high-pressure pass washes off the foam created
on the vehicle surface.
Physical Evidence:
Site requirement:
Room length: 3 m
Room Width: 3 m
Room height: 2.5 m
Electricity supply:
5000 liters
As it is a totally automated process, we will need many machines. The main machine will be the
machine that will actually wash the cars. There will be needs for some other additional
machines.
Operational Plan
The equipments we will be buying as raw materials to start up the business and to carry on with
it are here as follows along with our suppliers from various countries who will be offering us the
most lucrative price.
ZY-W900-B9 Tunnel Car Wash Machine (Supplier: Quingdao Mechatronics Ltd., Mainland
China) – Price: $46,000 (1 Set)
Zonyi Series automatic car wash machine introduced advanced technology from Italian,
European type streamline design, main components from world famous manufacturers, high
reliability, long using life (can be up to 15 years). ZY-W900-B9 tunnel wash machine can wash
40-50 cars per hour, used for heavy washing tasks.
>>Cost-effective use for 60-80 cars per hour. More vehicles, more speed
>>Multiple wash programs, contains all the necessary functions for a successful washing operati
on.
>>Drying with an integral dryers.
>>Soft foam or nylon brush, washes gently without wearing.
>>Frequency control at the travel and lift drives for careful, smooth running and variable speed
>>Precise control. Contour-tracking washing and drying.
>>Equipment and building in one unit.
Optional:
7 brushes, 9 brushes, under chassis wash systems and water recycling system
Technical data
ZY-W300-B5 series Automatic Car Wash Machine (Supplier: Jinan Fanda E&T Co. Ltd., Mainland
China) – Price: $27,000 (1 Set)
Zonyi Series automatic car wash machine introduced advanced technology from Italian,
European type streamline design; main components from world famous manufacturers, high
reliability, long using life (can be upto 15 years). ZY-W300-B5 car wash machine has passed CE
etc. certificate, America original brushes, impossible to scratch lacquer, power saving, low
operation cost.
Technical data
Machine size: 2500x4100x3100 mm (L x W x H)
Machine weight: 2000kg
Washable car size: 5500x1950x2000mm
Rail length: 10000mm
Width between rails: 3245mm
Washing time: 4-6min/ car
Water consumption: 100-120 liters per car
Power supply & consumption: 380V, 50HZ, 3 phases, 19 KW
Portable double hydraulic cylinder auto car wash machine (Supplier: Zhengzhou Alliance
Trading Co. Ltd., Mainland, China) – Price: $1,150
Special Features :
We’ll be receiving the machineries and the equipments in shipped containers, which will be
efficient for us to receive the delivery within 3 to 4 months’ delivery period after the
transaction has been made
We have discussed about the pricing strategy before, but we would again like to recall that in
this section,
Price List:
The Managing Director (Jaydad Rehman Chowdhury) will take care of the whole
business as a functional unit, the designated managers of the specified sectors
will report to the Managing Director with all the certain aspects of the business
starting from the major ones to the minors. Shahriya Siddiqa, Director of HR will
be concerned about managing the employees regarding the business, Ohidur
Rahman Jeetu and Arman Hossain will be liable of the Marketing sector of the
Anonymous Car Wash. Rubyat Sharin and Saira Afzal will be keeping an eye over
the accounts department and the necessity measures to be taken in the future if
the company grows big and decides to issue stocks in the market. Shoab Ali Khan
will have a strict look over the inventory management and the operational side.
Financial Plan
FIXED COST
Variable Cost
Water Bill =9,00,000/- taka
Electricity Bill =10,00,000/- taka
Operating Cost =2,50,000/- taka
Promotional cost =8,50,000/-taka
Total Variable Cost =30,00,000/- taka
Total Revenue (1st year)
Tax =10,80,000/-taka
Tax =21,60,000/-taka
Tax =32,40,000/-taka
Unknown field:
The main problem that we will face is the problem of lack of popularity. The automatic car
washing is not very much popular by now. Many people even do not know what the automatic
car wash is. So it will be difficult to make them aware of our service.
Transportation Problem:
Our country has got little stability on situations those goes around. The main transportation for
the industry is the land transportation; our land transportations because of the labor unions
related to this often faces strikes. This may cause us very harmful financial losses. To survive the
competition our services needs to be accurate and proper, for the strike problems we may not
be able to get customers within schedule time.
The Loan Proposal
Conclusion
Through this hypothetical assignment, we have come to know that how much
important it is to make a strategic plan for implementing the plan into a real life
business. We hope that this experience will help us in preparing real life business
plans in our future work field.