Operating A Car Wash Services Center Marketing Essay

run A rail simple machine rinse dishs Center commercializeing roll in the hayvassFinancing to the centre of 25000 is prayd to fund the purchasing of the required equipment, machinery and consumables for the argument daily activities. proverb has already identified suitable premises for this venture, as strong as having negotiated a renting agreement with the owner byword gondola motor car brush aims to be a premier car scour subscriber line serving the wolfram Midlands. adage car back rinse off is an refinement of axiom Repairs, owned by phellem Ryan. saying Repairs had been in trade for the past some(prenominal) geezerhood and has a good market record due to the fiber of standards maintained at adage. motto railcars intends to provide its guests out-of-door car brushing, interior cleaning, and car degreeing. axiom Cars has few competitors in a growing market that atomic chip 18 resolveing to furnish a panorama armed aid but at a very met tlesome-pitcheder rate. apothegm Cars has externalisened to tar contract individual car owners and leasers, car dealerships and local anesthetic argument community. Being in the center of a duty hub, saw aims to take in the local argumentes in the vicinity that induct community cars and would get them swear out regularly. However, aphorism go out point at the most advantageous plectron i.e. the sixer several(predicate) car dealerships that operate in the bea.The marketplace of proverb is characterized by broad ethnic and economic diversity. In monastic order to stag the most of these demographic factors and focus on the inimitable demands individu altogethery base asks of the market, the forwardness impart incorporate some(prenominal) a full-service tunnel operating theatre (for those who wish to entirely in allow the service team up to clean their car) and a self-service facility (for those who wish to take a more lively character in their cars mainte nance). Additionally, byword proposes to provide an automatic b sensation-dry(prenominal) organization (Eclipse) intentional by the trade itself for severally self-service bay, which lead enlarge customer liking by eliminating the need to hand dry an automobile aft(prenominal) washing. Automatic dryers ar a modernistic and effective market modernization which currently exists in only unrivaled other car wash operation in the region.Maxims ability to offer a worthwhile service, both in terms of the actual washing as fountainhead as customer service is all based on the ability to feel the finest employees. Hiring the best employees is cost efficient beca engage it decreases HR be related with derangement and other employee costs. Hiring the blanket employees and making sure that they are well taken care of ensures that they in turn take care of the customers. Studies prove that a happy employee is far more likely to provide the utmost train of customer service in contrast to an employee who is not happy and feels that they are being taken advantage of.The strength of wharfages experience is Maxims competitive leaping as well as a major asset. bobtail has been pertain in the car repair business for the last seventeen years. Bob has critici forgatherd his way through the industry and has been the proprietor of the business. Before this venture, Bob genuine his MBA from London School of Business and Finance. With a signifi scum bagt magazine nosepiece invested in the community, Bob has generated significant value as a fair, quick member of the community. Lastly, Maxim volition be able to leverage several of the Bobs for his business expertise.Business DescriptionMaxim Car wash leave al single be operated by Bob Ryan, who had been serving the West Midlands area with a car repair and a sale/purchase business named as Maxim Cars for over 17 years. Bob exit be supplement the incredible good allow of its relationship with the dealers in West Midlands and nighest purlieu and the bulls eye appreciation of the Maxim Cars name to quickly gain market pe pelfration.2.1 buttThe objective of Maxim Car Wash is to offer high-quality services in an efficient, effective and economical manner. This is the key to Maxims success which also variousiates the business from its breathing competitors in the market.2.2MissionMaxims mission is to be apremierquality car wash service for the residents and business owner in West Midlands. Bob get out strive to keep employeesdevotedand in highmoraleto ensure customer satisf litigate.2.3 Business outlineMaxim result be the only exclusive hand car wash in the West Midlands and estimates their market share on 25%. It is assumed that Maxim will achieve a 90% gross margin and 12% net margin after the runner year, and a 21% net margin after year three. The business will relate a yearly net profit of 4000 by year three.2.4 sales cyphertwelvemonth 1 grade 2Year 3 gross salesIndividuals7 6,086123,033165,662Businesses6,4318,7769,988Total gross sales82,517131,809175,650Direct Cost of SalesYear 1Year 2Year 3Individuals3,8046,1528,283Businesses322439499Subtotal Direct Cost of Sales4,1266,5908,7832.5 Development ImpactThe business, at this phase has no employment right political programand skills maturement planbut such a plan will be drafted in future.An employment equity plan will be drafted pastime the Department ofLaborsRequirements.The Department ofLabornecessitatesthat an employment equity plan should cover the followingIssuesGoals for every yearAffirmative action measures that will be employednumerical goals to reach thistimetables and strategiestheduration of the plan (not shorter than6 monthsor vaster than 5 years)Methodologiesthat will be use to monitor and evaluate the implementation of the planProceduresto solve disputes about the plan andPeople liable for implementing the planA skills development plan, adhering to the following steps, must(prenominal ) be draftedStep 1 Determining what skills are required in the business.Step 2 Ascertain if the employees switch the necessary skills required.Step 3 T rainingemployees for skills lacked by them2.6 Legal Considerations AgreementsBob has rent the location nearest to Maxim repairs the rent has been negotiated and will be 899 per month.Maxim will be entailing the services of a contracting comp whatever to convert the use of the facility and to improve the customer waiting room facilities as it was previously apply as a quick stop automobile service disclose which has been agreed at 3000 including all equipment.Legal arrangements agree been negotiated with six different car dealerships operating inwardly a five-mile radius which will require car washing services for the various fleets. Maxim will offer them all services at a pre-agreed headstrong price.Business Opportunities3.1 potential Customers and Geographical AreaMaxim Cars has planned to target individual car owners and l easers, car dealerships and local business community. The surrounding area is quite roaring and consists of rich families. Majority of the residents earn an average income of over 85,000 a year. Consequently, they have nice cars and want them to look amusing.3.2 Business CompetitorsCurrently, Maxim has few competitors in a rising market. The application of the Porters Five Forces Model would come across the contemptible picture clearer.3.2.1 Porters FIVE FORCES MODELRivalry Considering the current market, Maxim has few competitors which finally mean that Maxim is facing very little competition from its rivals. Since Maxim had been operating in the industry from the past 17 years and has a good corporate image, this would facilitate the launch of Maxim Car Wash and would place the business into a better position to compete against its rivals. holy terror of Substitutes The threat of substitutes is very petite in this situation. This is because the majority of target consumers a re rich, less price sensitive, hence would not be willing to swap due to trivial cost differences. Moreover, Maxim would be providing free pickax and drop service of the cars to their clients to make the business more viable. bargain designer of Customers The fact that Maxim has planned to target a rich portfolio of consumers, it is exceedingly unlikely that they would exercise their bargaining power. Furthermore, Maxim has make a wakeless arrangement with five different car dealers which would require car washing services for a various fleet of cars at a pre-agreed fixed price. This would secure a large chunk of revenue for Maxim Cars.Bargaining Power of Suppliers In order to prevent the suppliers from exercising their powers over the business, Bob has made a three year renewable contract with all of his suppliers.Threat of New Entrants The threat of new entrants is particularly low for Maxim Cars. This is because Bob has been operating in the industry from the past 17 years and has built good brand equity and a large number of loyal customers.3.3SWOT compendiumStrengths, weaknesses, opportunities, and threats relevant toMaxim Carsare listed in the table belowSTRENGTHSThechosenpremises are well conform to for the business activities.Nativeclients can provide ahugeamount of repeat-business.Theregionin which the business will noble-mindedly be placed has volumes of traffic.The laborcomponentof the business is not high.The entrepreneurs practicalknow-howin business do byment.WEAKNESSESFinanceis required for starting and operating the business.Bad abidecancause a slump in demand.OPPORTUNITIESAdditionalservices can be implicated in the service range or arrangements made with other services providers.The entrepreneur anticipatesobtaininga contract from the authorities garage.A huge number and variety of clients can be served.Support shown by car dealers in thepurlieuThe enlargement of the business.THREATSCompetitors in the vicinity.3.4 diminutive Succ ess FactorsCritical success factors pertinent to the key areas of the business are as follows list AREASCRITICAL FACTORSMarketingHigh sales volume will be critical to making profits.Maxim must seek to obtain a critical mass of clients to ensure profitability.Gross marginsshouldbesoundand sham favorably on the bottom-line.ProductionCapacity utilization will buildwith the expansion of the services offered.Qualitystandards are high and attractrepeat-business.Service DeliveryCapacity utilization must beoptimum.The level of service exceeds customeranticipation.Delivery times in terms of finishing a car wash arequicker.FinancesCreditwillnotbe provided to customers.The financials of the business will bemanagedwell. in all the transactions will betracedand an accounting firm will behiredto divine service with the financial and tax management of the business.3.5 RISK AND ISSUESSpecific risks that Maxim faces include the risks of loss of customer, fast growth and liquidity, and tax manageme nt.These risks whitethorn all have the effect of loss of reputation, loss of business, debt, and bankruptcy in an extreme case.Maxim will have the following strategies in place to mitigate these risksProviding topnotch service to ensure continued customer support as well as providing customer interaction mechanisms to measure joy and touchs, e.g. a suggestion box.Fast growth gives rise to the risk of running into change rate of flow problems. The business will obtain the services of a financial advisor to divine service them manage growth and liquidity.The business will seek help from a certified tax accountant to deflect running a tax risk.Marketing Strategy4.1 Market incisionationWe are extremely privileged that our service is not limited to a specific segment or group of the market. In our market area alone, there are nearly 400,000 automobiles, or an average 0.8 automobiles per person.Luxury car owner Maxim will focus on this segment for their premium hand wash service. L uxury car owner takes vanity in their cars and would probably require arrangementatic customers over time.Cost conscious car owner Although Maxim will not focus on this segment there are low-priced options for sale for those who just want an exterior quick wash. The inwardness service for this segment will be the Quick Wash serve, which is the low-priced service.Dealerships The dealerships in the area will establish a large helping of the segmentation cake. Dealerships would want to keep their fleet of cars shimmering and spotless and Maxim hopes to sports meeting that need.Local businesses Several local businesses have company cars that need to be washed frequently. Maxim will target these businesses and give them the choice to get discounts for regular washes.Figure 1 Market Segmentation4.2 Benefits of Service to the Market SegmentMaxim will provide the only full service facility deep down the market area. Moreover, the water reclamation system will provide an environment ally safe means for the customers to clean their cars. This is entirely different from residential car washing, where untreated wash water fills storm drains and at last empties into the waterways.4.3 Advertising and Pricing PoliciesThe car wash will cost10.00. It will involve a full exterior vehicle wash, as well as an interior service to include vacuuming, window cleaning, and dashboard cleaning.We have investigated all available advertising mediums. After detailed consultations with a innumerable of car wash operators in the area, we have decided to utilize the advantages of a variety of mediums. Primarily, Maxim will utilize cable television and radio receiver spots, combining with newspaper advertisements, to announce the Grand Opening. Direct mail coupons will also be used to increase consumer certifiedness of Maxims existence. Furthermore, we will work cross promotions with businesses in the area as a means to tap the client base they have established.Flyers and business c ards Flyers promotingthe services, as well as specials, will becirculatedalong with businesscardsto clients.These items will invite clients to request services fromMaxim Cars as well as giving them ahintof what the business has to offer at which prices.Flyers will bedroppedin mailboxes as well as in pose vehicles windshield wipers.Personal/direct Selling The entrepreneur has already started see potential clients to collect letters ofintent. These potential clients are nowaware of the business and may provide word-of-mouthpromotionconcerningthe business when it opens. report advertisements The owner intends to place advertisements inseverallocal newspapers.4.4Sales StrategyMaxim will offer discounts and special offers on Mon geezerhood to Wednesdays in order to enhance sales on those days. Bob will try to urge the business owner in the purlieu to sign contracts with rewarding benefits, and thus try to sell directly to businesses.4.5 Sales ProjectionsMaxim has projected to wash 555 0 cars during the first year of business.4.6 Target Market Segment StrategyAfter doing a thorough market research, Bob has found that Mondays, Tuesdays and Wednesdays are the sluggish days for a car wash. This could be due to the fact that various mass wash their cars before they leave for a weekend away, afterward they turn back for a weekend away or merely has more time for things like washing the car during the weekend.To pawn this effect, Maxim will target cost conscious customers during these days, by offering specials and discounts on Mondays to Wednesdays.4.7 Customer AnalysisMaximscustomer base will be made up of local residents, people who pass through the area, car dealerships, taxi operators and others.The following is the business customer analysis as provided byBobCarhiresagencies need cars cleanedregularly.Garages and workshops often want to clean customers car after they haverepairedand may not have the facilities themselves.Second-hand car dealers will want a car t o lookimpeccablebefore they try and sell it.Elderly or disabledpeoplewould usually prefer to have someone else wash their car.Owners of classic or vintage cars could be very loyal customers ifMaximprovesthatitcandoa caring, quality job on their vehicles. hack writer driversGovernment vehicles forinstancepolice and hospital (ambulance) vehicles.4.8 Customers Buying HabitsIn handling with hundreds of people in our target area over the past one year, Maxim has determined there is a massive need for a car wash facility in this region. Currently, there is not a car wash facility within a 6.5 mile radius of the proposed site, and the proposal has received enormous support from both civic and government groups in the target market.Business Operations 5.1 OperationsMaxim Car Wash is environmental friendly business, and has concerns over minimizing the impact on the environment in terms of energy consumed water used, and waste output. All the chemicals are biodegradable, so that they de-es calate down naturally and hence the environment stiff safe.The production process of Maxim as a whole consists of obtaining foreplay materials, receiving customer cars for service, usage of the raw materials to wash, clean and vacuum cars, polishing the cars, and handing the car back to the client. Raw materials are used in the form of water, car shampoo, polish, and chamois products.Cars will be washed with soaps and materials specially intentional for them to avoid scratches on the surface.A diagrammatic exposition of the process followed by Maxim is as followsFigure 2Critical levels in the service lurch process involves using best quality input products designed for automobiles, tailor with the customers service requirement, and fast service times.5.2 Services OfferedCar Washing interior(a) CleaningCar Detailing5.3 PersonnelMaxim is considering making cardinal teams headed by one full time car wash/detail expert and one part-time car wash specialist. Rotation of team member s would be done on weekends and other peak times to manage the customer load. Extensive fostering would be given to all washers and detailers as to reduce all cushions of inefficiencies and providing the best quality and service at all times. Bob will hire an experienced manager for Maxim Car wash who would be responsible for all matters in the absence of Bob.The proposed organogram of the business operations for the first year is as followsFigure 3All employees will be encouraged to work with the business in the long term perspective and to deliver the best writ of execution by the provision of being in a pleasant working environment, job satisfaction and market-related salaries.5.4 Staffing/TrainingThe size of staff is dependent upon time of day, day of the week, and weather conditions. During traditional peak wash periods, four full time wash experts employees and three part time wash experts will be plan to work. During traditional off-peak times four full time wash experts and one part time wash expert will be plan to work. Maxim will remain elastic in the staffing policy in order to meet customer demands and most efficiently make use of the employees. The employee handbook will make certain that each employee understands the significance and pertinence of a varied and flexible scheduling process. The plan is to ensure that each employee receives the training essential to be skillful in their assigned tasks. The training program will center on improving the employees operational fellow feeling of the business as well as their interpersonal skills. The program is designed to ensure that the employee-customer relations are as optimistic as possible.Initially, the company will be run solely by Bob. However, after six months a supervisor/manager may be hired to assistant with the day to day operations and maintenance. The aim is to develop management from within the company, thereby assuring that optimistic management policies and practices are sustain ed. Additionally, the policy of hiring from within provides Maxim a means to recognize outstanding work performance and to develop a solid management team critical to The Maxims success. applied scienceThrough continuous research and development Maxim has led to new technologies and services including Unity chemical system and innovative products like keen Shine Carnauba Shield that gives a long lasting attain to the car in no extra time. Its growth has been amplified by drop in the best technology available, resulting in cleaner cars with an even deeper and richer shine.Maxim aims to use energy efficient advanced water reclamation system to conserve water usage and to reduce discharge concerns or meet actual standards or regulations. Thus, the amount of water needed to clean each car would be minimized.6.1 Automatic Dryer SystemThe Eclipse, an automatic dryer system which produces maximum output capacity of drying 40 cars per hour, more than any other equipment available in the market today.The Eclipse computer barely determines the length and width of each vehicle as it enters, from the smallest cars to the long pickups to be safely dried.It has a simple design which allows for only five moving components, adding to its longevity and minimal down time a feature that is odd in the industry.The Eclipse is also more visually attractive than ground-mounted machines, and the wall-mounted pattern provides an open, spacious bay, creating more attraction for customers.The Eclipse onboard dryer is a system which is fully programmable and offers three efficient turbines running at 3600 rpm for high volume, velocity and maximum air flow.It also uses less energy to operate, since no conveyor system is necessary for the Eclipse.6.2 Wheel ScrubberThis feature will allow the customers to choose which type of wheel cleaning they prefer. This will increase the cleaning revenue in less time with this online system available in friction and touch free options. The wheel brush cleans the tires and all wheel outer faces when the friction option is chosen. For those customers who prefer touch free, Maxim can also offer that choice, improving tire and wheel quality, again adding to the revenue and satisfying another customer.6.3 degenerate Shine ApplicatorTire shine is an upgrade that our customers can opt to give that freshly-washed, shiny, finished look to their tires. Its the last touch for particular customers who want their vehicle sparkling from top to bottom.7. Finances7.1 Financial PlanFollowing are the projections of Maxims Financial Plan. Bob will finance the start-up expenses of Maxim, with a 25000 investment from his personal funds, and growth will be financed by cash flow. This will implicate a irksome initial growth for the company, but Bob is reluctant to involve investors from outside and is concerned to exercise his control only over the direction of the company. decided monthly costs for Maxim are estimated to be approximately 1,50 0, and break even monthly units are 304 units per month.7.2 Statement of Comprehensive IncomeYear 1Year 2Year 3TotalsPotential Unit Sales480054306 nose candy16330Average price per unit 10.00 11.00 12.00Potential Sales (turnover) 48,000.00 59,730.00 73,200.00 212,435.60Unit costs 5.80 6.10 6.80Cost of Sales 27,840.00 33,123.00 41,480.00 114,257.60Gross Profit 20,160.00 26,607.00 31,720.00 98,178.00Operating Costs 1,000.00 1,090.00 1,200.00 solve Profit before tax 19,160.00 25,517.00 30,520.00 85,888.007.3 Cash Flow StatementYear 1Year 2Year 3Opening proportionateness150001791421414Cash receivedCash sales145001800021200Interest190018001500Sundries8647201150Total cash received172642052023850Cash PurchasesStock purchases60001188010380Other creditors230039006000Operating costs gm10901200Capital5000150150Other500100Total cash payment143501702017830Cash Increase/Decrease291435006020 occlusion Balance1791421414274347.4 Statement of Financial PositionYear 1Year 2Year 3AssetsCurrent Assets 8 ,850.00 10,287.00 11,440.00Cash 3,650.00 4,234.00 4,700.00Inventory 1,000.00 1,160.00 1,287.00Accounts receivable 3,400.00 3,961.00 4,400.00Provision for income tax 800.00 932.00 1,053.00Fixed Assets 21,300.00 24,860.00 27,605.00Machine 5,000.00 5,890.00 6,500.00Equipment 6,700.00 7,800.00 8,658.00Vehicle 6,300.00 7,340.00 8,147.00Trademark 1,400.00 1,630.00 1,800.00 free grace 1,900.00 2,200.00 2,500.00Total Assets 30,150.00 35,147.00 39,045.00Liabilities and EquityCurrent liabilities 2,990.00 4,375.00 4,777.00Accounts payable (income tax) 1,715.00 2,990.00 3,139.00Creditors 1,275.00 1,385.00 1,638.00Long-term liabilities 27,160.00 30,772.00 34,268.00Bank bestow 18,824.00 23,430.00 27,625.00Vehicle 8,336.00 7,342.00 6,643.00Total Liabilities and Owners Equity 30,150.00 35,147.00 39,045.00Future Expansion PlanThe following is Mr. Bobs plans for future growthIm planning to buy a bigger and untold better place than the one stricken be using currently. trial be making maximum profi t because I wont be paying rent there since I would own the property. Im going to make a Bigger and better car wash than my first one in terms of development. This area will be able to spread over more cars on the washing bay and on the drying bay. It will be much more feasible for a carwash business than my initial one. Ill be able to introduce new businesses into the market that would be ideal for my carwash. Businesses that would give people a reason to come to my carwash even when its raining businesses like a Fast Food Franchise. Now introducing a business like this to my expansion area would contribute greatly to the Success of my carwash in West Midlands. From then, Im planning to expand to other developing and well create towns or cities and to other areas in the United Kingdom. I want to be one of the people who contribute a lot to the growth and development of England. Please note that this is not just a dream I believe that it is my determination and my gift from God, b ecause its my passion. I am very conjure and richly gifted business wise. I have the ability to venture change and Development before it comes to reality. Not in terms of phantasmal prophesying but in terms of being a possibility thinker. I have the Ability to convert a disadvantage to an advantage. Where people see jeopardy, I see an opportunity and prosperity. I welcome problems I reach out for them, I charge into them and then in my mind in a flash change them to challenges.I act local but I think global. This is the kind of attitude Im going with to my carwash business. Appendices and Referenceshttp//www.carwash.org/Documents/14-%20Business%20Plan%20Template.pdfhttp//www.mplans.com/car_wash_marketing_plan/financials,_budgets,_and_forecasts_fc.phphttp//www.entrepreneurmag.co.za/advice/sample-business-plans/automotive-travel-and-transportation/car-wash-business-plan/http//www.referenceforbusiness.com/business-plans/Business-Plans-Volume-01/Car-Wash.htmlbCatlin, Katherine and Jana Matthews, Building the Awesome brass instrument Six Essential Components that Drive entrepreneurial Growth, 2002 New York Hungry Minds Inc.Sahlman, William A., Howard H. Stevenson, Michael J. Roberts, Amar Bhide, eds. The Entrepreneurial Venture, 2nd Edition. 1999, Boston Harvard Business School Press.