Wash
Submitted To: Mr. Md. Ali Arafat
Course: MGT490 (Section: 02)
Letter of Transmittal
Mr. Md. Ali Arafat
School of Business
Independent University, Bangladesh
Subject: 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,
Jaydad Rehman Chowdhury 1130045
Arman Hossain 1120338
Ohidur Rahman Jeetu 1130396
Shoaib Ali Khan 1110266
Shahriya Siddiqa 1137027
Rubyat Sharin 1120101
Saira Afzal - 1120291
Executive Summary
The business plan on Anonymous Car Wash (ACW) is an automatic car
washing company that has been prepared for Mr. Ali Arafat, Course instructor of
Strategic Management (MGT490) as a partial requirement of the course. Real life
does not go all the time like the theories and practical world is very critical and
diverse from its own context. To understand the theoretical aspects of a subject one
must understand the practical situation, problems, policies and implications of the
theories. So the researchers were asked by the respected Course instructor to
prepare a report from the very beginning of the semester. Course instructor
assigned us to choose from our own business plans and make a report on it to
understand what are the policy, procedure and steps that is to be taken to establish
a new company which will offer a new innovative product or service. This report
emphasizes on preparing a business plan, which is the outcome of an integrated
process of making future plan for managing different organizational functions and
strategies.
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 founders of Anonymous Car Wash consist of 7 members,
namely Jaydad Rehman Chowdhury (Managing Director), Shahriya
Siddiqa (Director, HR), Ohidur Rahman Jeetu (Director, Marketing),
Arman Hossain (Marketing Manager) Rubyat Sharin (Director,
Finance & Accounts), Saira Afzal (Accounts Manager), Shoaib Ali
Khan (Director, Operational).
The world is changing day by day. Modern technologies are coming close to
peoples 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 todays 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 dont scratch our customers car paint.
Companys objective:
Vision:
The Vision is to be the pioneer in car wash domain. To provide quality service, use
quality equipment and value for customer.
Not to have a single dissatisfied customer.
Expand to two more location after three years.
Create a steadily growing net profit margin.
Soap system sprays soap and chemical formulation over the car surface.
Soap spraying assists the high-pressure washing and enhances the cleaning
value.
d. Contour Following Nozzles:
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.
e. Wheel and rocker panel wash system:
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.
Agrabad Area. Because its 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 Pumps 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.
COMEPTITORS
Time
Cleann
ess
Shiny
Parkin
g lot
Anonym
Badsha
Nava
ous Car meah Petrol
na
wash
pump CW
Car
Was
h
5/5
2/5
3/5
QC petro
pumps
car wash
South
ern
3/5
4/5
Car
wash
5/5
3.5/5
3.5/5
3/5
2.5/5
4/5
3/5
3.5/5
2.5/5
2.5/5
7-9 cars
3 cars
4-5
cars
3-4 cars
3-4
cars
Positioning Map:
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.
Many new companies might find it profitable and enter into the business
Market Analysis
Our target market is as follows,
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 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.
business.
Value Proposition:
Takes only 10 minute to wash your car:
Its only takes 10 minutes to wash your car (if you dont 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.
Latest technology to wash your car:
We will provide sophisticated high impact pressure jet wash technology in
our washing base.
Touch free wash:
There will be no touch of hand while the car will go through the washing
base.
Clean and shiny:
The car looks more shinny and clean after wash because its go through a
washing tunnel where high pressured water clean all the dirts and its human
touch free wash, thats why the car look more clean and shinny.
Strategy Pyramids:
first create customer awareness, develop a customer base
The second method will be networking.
Product:
Brand Name:
Price:
Pricing strategy:
Price List:
Place:
Location:
Agrabad Area, Chittagong.
Coverage:
City Area of Chittagong.
Location analysis
Land Selection
Basis of evaluation of the land
Selected Land (Agrabad Area)
Frontage
Street Characteristics
Rectangular
Busy Street
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:
We can connect to the people by facebook or twitter.
Billboards:
We will provide some billboard ads on GEC, Agrabad, Near Chittagong port.
Leaflets to transport companies:
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
companys ownership are the following:
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
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.
Room length: 3 m
Room Width: 3 m
Electricity supply:
3 Phase 440 V A.C. 50 Hz.
Water storage capacity:
5000 liters
Machinery and Equipment:
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)
Machine size:
16000x3760x3100mm (L x W x H)
1950x2000mm(L x W x H)
Conveyor speed:
5-6m/min
Washing capacity:
Water consumption:
2500x4100x3100 mm (L x W x H)
Machine weight:
2000kg
5500x1950x2000mm
Rail length:
10000mm
3245mm
Washing time:
4-6min/ car
Water consumption:
Spe
cial Features :
Plunger power pack FRP coated.
Plunger micrones will be 20-25.
IOR receiver powder coated.
Well 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:
Management Summary
The founders of Anonymous Car Wash consist of 7 members,
namely Jaydad Rehman Chowdhury (Managing Director), Shahriya
Siddiqa (Director, HR), Ohidur Rahman Jeetu (Director, Marketing),
Arman Hossain (Marketing Manager) Rubyat Sharin (Director,
Finance & Accounts), Saira Afzal (Accounts Manager), Shoaib Ali
Khan (Director, Operational).
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
Land
=1,00,00,000/- taka
Machineries
=1,00,00,000/- taka
Employees Salary
=5,00,000/- Taka
=2,05,00,000/- taka
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
=30,00,000/- taka
=20,000/- taka
=6,00,000/- taka
Per
year
(6,00,000X12)
=72,00,000/- Taka
wash
Total Revenue
=72,00,000/- Taka
Tax
=10,80,000/-taka
=61,20,000/- taka
Total Revenue
=61,20,000/- taka
(-)Variable Cost
=30,00,000/- taka
(-)Depreciation
Machineries
of
=92,200/- Taka
=2,14,200/-taka
NET PROFIT
=24,18,600/-taka
=40,000/- taka
=12,00,000/- taka
=1,00,80,000/- Taka
Total Revenue
=1,44,00,000/- Taka
Tax
=21,60,000/-taka
=1,22,40,000/- taka
Total Revenue
=1,22,40,000/- taka
(-)Variable Cost
=30,00,000/- taka
(-)Depreciation of Machineries
=1,83,600/- Taka
=4,28,400/-taka
NET PROFIT
=86,28,000/-taka
=60,000/- taka
=18,00,000/- taka
=2,16,00,000/- Taka
Total Revenue
=2,16,00,000/- Taka
Tax
=32,40,000/-taka
=1,83,60,000/- taka
=1,83,60,000/- taka
(-)Variable Cost
=30,00,000/- taka
(-)Depreciation
Machineries
of
=2,75,400/- Taka
=6,42,600/- taka
NET PROFIT
=1,44,42,000/-taka