0 BUSINESS PROFILE1.1 Business DescriptionModern people are very busy and they often neglect to clean their cars, and sometimes the limited living space also is the problem for the people who want to clean their car but they do not have space to clean their car, especially in Taiwan. Therefore, the cars wash shops are increasing quickly, and people are happy to send their cars there. In Taiwan, hand-washing cars is more popular, because the customers think using hands to wash is softer.
It does not damage the pain of the cars, and it is a luxury way to take care their cars. Kevin Car Wash (KCW) business is a newly established car washing company located in the city of Kaoshung, in the south of Taiwan. KCW was established to cater for people who are busy and often neglect to clean their cars as well as those people who have difficulty cleaning their cars at their homes because they do not have an available area.Taiwanese people believe that washing cars by hand is better for the cars paint because washing by hand is softer than by mechanical washing. This car washing shop will be about 100150 squares in size and will be located on the corner of the street in the central. 1.2 Business Mission StatementKCW is dedicated to providing its customers the ultimate car wash & care experience.
Focusing all of its energy and resources on customer satisfaction and value, while providing owners and employees an excellent reward. 1.3 Situation AnalysisKCW is entering their first year of operation. Kevin believes that a comprehensive marketing strategy will be key to the success of the business.
KCW offers a premium hand car washing service provided by a well-known local family. The basic market need is a premium car washing service that is far less abrasive than the traditional automatic car washes.1.
3.1 Pest AnalysisPolitical FactorsEconomic FactorsSocial FactorsTechnical Factors1.4 SWOT AnalysisThe following SWOT analysis captures the key strength and weaknesses within the company, and describes the opportunities and threats facing KCW.1.4.1 StrengthsGood relationships with many perspective customers in the target market. Strong family name recognition and equity in the community.
Well trained employees.1.4.2 WeaknessesThe need for reliance on outside investors. The learning curve associated with entering an industry without direct prior experience. The need to have a fairly constant volume of business to support the necessary service staff.
1.4.3 OpportunitiesParticipation within a steadily growing industry. A high likelihood of repeat business. The ability to decrease the fixed costs as a percentage of an individual sale as volume increases.1.
4.4 ThreatsFuture/ potential competition from a franchised firm. A slump in the economy, reducing discretionary spending. The perception that there is not a difference in quality between a hand and machine wash.1.
5 Business Objectives1.5.1 Financial ObjectivesLong TermDevelop efficiencies in the delivery of the service through advanced training and work-flow analysis.Achieve a double d Achieve a double digit growth rate each year for at least the first three years. Short TermTo maintain our budgets being stable.
Increase the profit margin by .5% a quarter. 1.5.2 Strategic ObjectivesLong TermThe single objective is to position KCW as the premier automobile hand washing company in the area, steady increasing market share. The marketing strategy will seek to first create customer awareness, develop a customer base, and work toward building customer loyalty.The message that KCW will seek to communicate is that their hand washes are superior to the machine washed alternatives that can actually cause harm to cars.
This message will be communicated through several different methods. The first method is the placement of advertisements in the local newspaper. The local paper is well read and will reach a high portion of the target market segment.
The second method will be networking. Mark will leverage the equity already earned by his family from years of local business dealings. The networking will be a good source of customers as Mark’s family has developed significant trust relationships with many within their community.The last method of communication for KCW ‘s marketing strategic objective is the use of coupons within the customers. The use of coupons will likely introduce people who are not yet familiar with Kevin’s family to KCW and the services that they offer.Short TermIncrease repeat customers by 4% a quarter. Steadily increase market share every quarter.
Develop brand awareness and acceptance, quantified by a decrease in customer acquisition costs.1.6 Business Plan PurposeThe business plan will be a guide for KCW to be a market learder. Also to develop brand equity, increase customer awareness of KCW, and build the customer base.
The strategy will use several different methods to achieve these goals.2.0 PRODUCT/SERVICE ; MARKET ANALYSIS2.1 Product/ServiceKCW will provide the following services:Car washing (exterior). Car cleaning (interior). Car detailing.2.
2 Industry Description ; Outlook2.2.1 The Industry CharacteristicsKCW is in the car industry and also service industry. KCW possess good information about the market and knows a great deal about the target customers. This information will be leveraged to better understand who is served, their specific needs, and how KCW can better communicate with them.2.2.
2 The Future Forecast for the IndustryThe future trends for the car washing industry has been a gravitation from hand washing to automatic washing machine facilities. This trend has been fueled by the progression of technology. The automatic washing machines have become less expensive and more efficient over the last few years to the point that it is typically cost effective to invest in these machines.While one might presume that this would lead to the demise hand washing, the abrasiveness of the machines will never be appropriate for expensive automobiles. This trend will luckily not have a significant impact on hand washing facilities that have a sufficiently large customer base that possess expensive cars. Luckily for KCW which does have an upper end clientele, market supply will decrease and demand will increase.2.
2.3 The Attractiveness of the IndustryThe attractiveness of the car wash industry of KCW will be the following factors:Fastest growing industry in Taiwan (Service Industry).Low risk, entry barrier and budget. 2.2.
4 The Industrys Key Success FactorsType and technical of car wash machines.Quality of staffs and customer services offered.Prices charged to customers suitably.Well financial stability.
2.3 Analysis of Marketing Demand for Product/ServiceKCW is providing the market with a premium hand car wash service for the Kaoshung community. KCW seeks to fulfill the following benefits that are important to the customers:Exemplary customer service- The target customers have money and are used to having excellent customer service. They will not regularly use KCW unless they receive excellent service. High quality washes- The target market value a higher quality wash for their upper-end cars. Convenience- The hours of operation as well as the time needed to provide the service must be convenient and fast respectively, to gain market share.3.
0 THE MARKETING PLAN3.1 Customer ProfileMale: female- 63%: 37%. The reason for this discrepancy in the male to female ratio is generally explained by the fact that men typically care more about their automobiles.
Men are more likely to spend money on their cars with accessories and are more likely to buy a car as a reward for some accomplishment as a treat for themselves. Women tend to view cars more so as an object of utility. Using this line of reasoning, women are more likely to use the automatic car wash as they are less concerned about preserving their “precious” car.
40% of the households have an income exceeding $70,000. 73% of the target population have an undergraduate degree, 39% have a graduate degree.KCW segments its customers by type of car ownership. KCW believes that the type of car that a person owns says volumes about their driving, and, therefore their car washing and detailing requirements.
1.New car owners: 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 KCW will keep their car looking as good as it did the day they drove it off the lot. 2.
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.
3.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.
4.Lifetime owners: Many of these people have owned their cars for more than five or six years, and are more likely to be women. 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. 5.
Dealerships: There are five new and used car dealerships within three miles of the proposed location of KCW. These dealerships often use outside car wash services to detail their vehicles before they are put up for sale. In addition, there are fifteen other car dealerships within a seven-mile radius of KCW. 6.Local businesses: Some local businesses have fleets of cars and small vans that must be kept clean to maintain their company image. These businesses will be looking for a cost effective, efficient car washing service to perform this service, and will prefer to use a car wash service during the week rather than during weekends, like the general public.Please note for analysis purposes in regards to the charts and graphs, the different segments will be grouped into individuals and businesses.
This will be done to allow the charts and graphs to have a clean look that will aid in the ability to quickly discern information from them.3.2 Competitive AnalysisThere is one other hand car wash shop in Kaoshung. It is quite new and is trying to compete with automatic car washes by offering low prices.
However, it is not targeting the customers who seek quality cleaning.The customers who KCW is targeting have their cars washed based on the quality of the job. They do not mind spending a little more each week to have their car washed and waxed in order to keep the paint work in excellent shape. The businesses that KCW targets will be more cost conscious.
Therefore, prices will be approximately 30% less for these customers to promote volume usage.3.3 Sales Analysis ; ForecastsThe following chart forecasts sales based upon the Market Segmentation Strategy. Sales are seasonal in this industry, tending to be higher in the warmer summer months, and to drop off in the winter. However, KCW will aim to flatten sales across the sales cycle by targeting segments that will want to keep their cars clean and looking good year round.
3.4 Advertising ; PromotionsAdvertising and Promotion- KCW will use several different methods for advertising and promotion.3.5 PackagingThe offered nice atmosphere and well services will be distributed from KCW ‘s facilities throughout the environment. 3.6 Pricing/Discounting StrategyPricing- The pricing scheme is based on a per service price.
A “KCW Card” can be purchased which provides a volume discount to the user.3.7 Marketing Reporting SystemKCWs marketing reporting system will conduct by customer survey. At the beginning Kevin performed primary market research in the form of a questionnaire/ survey. Kevin outsourced the development of the survey to a local Professor of Statistics. While Kevin could have developed the survey in-house, the end result was a far more valid and statistically significant product.The survey was handed out to a total of 150 people within the target market.
54 surveys were returned completed. The results of the survey provided valuable insight into the customer preferences as well as the decision making process of the target market. While some of the already held assumptions were confirmed, the survey provided KCW with new information that would have been otherwise unavailable.3.8 Marketing Action & Expansion PlanThe car washing market has seen steady, 4% growth for the last six years. Once 4% growth is forecasted for the next four years, and it achieved KCW will take expansion plan and open next shop.
4.0 THE OPERATING PLAN 4.1 Current PerformanceKCW is a newly car wash company. Once by following our business plan, It will go well for sure day by days.
4.2 Company Situation Analysis4.2.1 The Businesss CharacteristicsCar wash is very popular in Taiwan in service industry. As it is keeping to grow up year by year. KCW is seemed to take an advantage to compete with its competitor.
4.2.2 The Businesss StrategyThe basic businesss strategies of KCW are factors as listed by the following: Providing High quality services. Benchmarked customer service. ConvenienceThe business strategy will also be to develop brand equity, increase customer awareness of KCW, and build the customer base.
The strategy will use several different methods to achieve these goals.4.2.3 The Businesss Competitive AdvantageKCW seeks to position themselves as the premier hand auto washing service provider in the Kaoshung. This positioning will be achieved by leveraging their competitive edge:KCW ‘ competitive edge will be Kevin Wu and the quality of the family name in the Kaoshung. As mentioned, the family has been in the car business for over 15 years, and has an excellent reputation and a myriad of both business and personal contacts. In addition, Kevin has put a great deal of emphasis on creating a system that is both fast and efficient, which will keep costs, in terms of time spent per car, to a minimum.
4.3 Lists of Major Suppliers1. Car Wash Mater is main supplier of KCW as it provides latest car washing machine, facilities and cleaner. 2.
The Fashion Advertising is one of main sponsor of KCW. It help to promote the companys marketing communication campaign. 4.4 The Production ProcessWe will employ well trained staffs and high working experience to serve our customers. All staffs should be working on time and regularly shift. 4.
5 Organisational MattersKCW is still in the speculative stages as a start-up organization. Its critical issues are:Continue to take a modest fiscal approach, expand at a reasonable rate, not for the sake of expansion in itself, but because it is economically wise to. Build brand awareness, increasing the customer base and developing brand equity.
Establish KCW as the premier hand car wash service provider in the Kaoshung.4.6 Inventory CostingsStart-up costs details AUD$Machine equipment fee9,585Office furniture fee3,115Rent2,000Advertising fee1300Total start-up costs16,0004.7 Operation Action ; Expansion PlanAs mentioned before, once KCW achieve 4% growth in forecasted plan for the next four years, KCW will take expansion plan. However, so far it is just trying to be better and better.
KCW will take the following operating action and areas in order to make high performance. Sales- monthly and annual. Revenue- monthly and annual.Repeat business.
Customer satisfaction.5.0 THE MANAGEMENT ; MANAGEMENT ; STAFF PLAN 5.1 Management IssuesKCW will have 3 main managerial staffs in the company. The CEO is Kevin We, who is head of the company. Nick is operating executives who monitors whole performance in the company.
May is a marketing manager who makes a marketing plan and strategic to always compete with newly competitor. 5.2 Key Staff Details ; TrainingKCW have three well-trained car mechanicals and 2 professional accountants to stay and work all the time with the company. The company will retrain them regularly and enhance their skill abilities to improve whole structure of the company. 5.
3 Staff Action ; ExpansionKCW will get whole staffs feedback, and also give them some rewards once of achieving high business profitability. Again, in the future, if KCW makes high profit and its business will be expanded such as opening new car wash shops. That way, the company will also employ more professional staffs to work with KCW. 6.
0 LEGAL MATTERS6.1 Business Profile6.1.1 Business Structure6.1.2 Business Name6.1.3 Registration of the Workplace6.1.4 Australian Business Registration6.2 Local Government, Product/Service ; Industry6.3 Marketing6.4 Operations6.5 Staff6.6 Financial6.7 Legal Matters Action Plan7.0 The Financial Plan7.1 Projected Profit StatementsKCW sales AUD$ 190,800 and car purchases are AUD$ 30,000 so gross profit is AUD$ 160,800 (84%).The operating expenses have nine points. 1.Salaries- AUD$ 46,800 per year; AUD$ 3,900 per month.2.Advertising- AUD$ 3,600 per year; AUD$ 300 per month.3.Rent- AUD$ 24,000 per year; AUD$ 2,000 per month.4.Electrical- AUD$ 3,600 per year; AUD$ 300 per month.5.Telephone- AUD$ 1,200 per year; AUD$ 100 per month.6.Insurance- AUD$ 2,400 per year; AUD$ 200 per month.7.Tax- AUD$ 38,160 per year.8.Depreciation 5%- AUD$ 600 per year.9.Other expenses- AUD$ 6,000 per year; AUD$ 500 per month.Total of nine points are AUD$ 126,360.Gross profit AUD$ 160,800 decrease total expenses AUD$ 126,360 are net profit before tax AUD$ 34,440. The 20% of net profit before tax is provision for income tax AUD$ 6,888. Net profit before tax AUD$ 34,440 decrease provision for income tax AUD$ 6,888 is net profit after tax AUD$ 27,552.7.2 Projected Cash Flow Statements7.3 Projected Balance SheetKCW will be opened on January 2003. Its total assets are AUD$ 30,000 and it includes cash, trading stock, prepaid expenses and plant and equipment. The cash is AUD$ 13,500, trading stock is AUD$ 2,500, prepaid expenses is AUD$ 2,000, plant and equipment is AUD$ 12,000. (See Appendix)7.4 Projected Source ; application of Funds StatementKCW make it own financial project and its funds is going to be make a formal statement by its accountant. KCW will employ two to three well knowledge and skillful accountant. 8.0 Risk Analysis ; contingency Plans8.1 Risk AnalysisAny investment has risks, and even to invest in a small business, such as the car washing shop. Therefore, KCW needs to consider the business contest from its competitors is to compare price, skill and service. So KCW will do the market research first to establish the reasonable price, to learn and train excellent skills, and to provide the quality service to gain trust of customers. The second risk KCW needs to face is the inflation of prices or the financial crisis. It is an unavoidable risk, and it may cause the price of petrol to getting higher; the exchange rate of currency to change. If the price of petrol gets higher and the exchange rate of currency is changed this will decrease the usage and sales of cars. Under this situation, the car washing shop will decrease the demands from the car drivers. They prefer to use the public transportation than using their own cars. Furthermore, the environment regulation is the important issue that KCW need to consider all the time, because if my car washing shop disobeys the rules, the shop may lose its the operation license or even be closed down by the law.8.2 Contingency PlanTo create a contingency plan KCW are considering the following factor and areas. Again, once KCW has this plan will help its operation and compete with its competitor. Difficulties and RisksProblems generating visibility. Overly aggressive and debilitating actions by competitors.Worst Case Risks May IncludeDetermining that the business cannot support itself on an ongoing basis. Having to liquidate equipment to cover liabilities.REFERENCES1. http://www.glaze.com.tw/procedure1.htm