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PROJECT REPORT ON Research on Car Detailing 3M India Ltd. (SUBMITTED ON THE PARTIAL COMPLETION OF MASTER OF BUSSINESS ADMINISTRATION) SUBMITED BY: ATIF ALI ZAIDI

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Page 1: 3 M Project Report

PROJECT REPORT

ON

Research on Car Detailing

3M India Ltd.

(SUBMITTED ON THE PARTIAL COMPLETION OF

MASTER OF BUSSINESS ADMINISTRATION)

SUBMITED BY: ATIF ALI ZAIDI

UNDER THE GUIDENCE OF: Mr. SHEIKH YASIR

Page 2: 3 M Project Report

EXECUTIVE SUMMARY

3M is a U.S based multinational giant, 3M is a diversified technologywith a global presence in the following businesses: industrial and transportation, health care, display and graphics, consumer and officsecurity and protection services, and electro and communications. 3Mthe leading manufacturers of products for many of the markets it serves.

In the car care division of 3M India limited a project titled “RESEARCH ON CAR DETAILING” was carried out, the objective of the research was to undertake a strategic analysis of 3M car detailing service in Delhi, to conduct a service station survey in Delhi, to gauge the satisfaction of customer using car detailing services, to get a clear picture of current market scenario, to pin point the problems of car detailing services.

During the survey a competitor analysis was also done to know the competitive strength of the company in the market. Primary data was collected through market survey by means of questionnaire, Secondary data was taken from company websites, company records, company brochures & journals.

During the research it came to light that Car Owner are quite conscious about the Physical Health of their cars, mostly sedan class cars visit for car detailing services followed by hash-back cars and then MUVs & SUVs.

Research findings suggest that 3M is the market leader followed by Diamond Brite and then liqui-molly. Percentage of satisfied consumers was 64% for all the service centres covered including Diamond- brite, Fucon(liquid-molly) car detailing. Customer satisfaction level at 3m car detailing centres was surprisingly high i.e. 85%.

At the end of the research some suggestions can be given that the Company canimplement to gain market share, handle its competitors and earn customer loyalty over period of time.

Promotional schemes based on new social trends like social networking sites should be launched

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PREFACE

Any training program sharpens those instincts, which serves as a fulfillment of theoretical grounding. As the present day business world is a highly complex one where Human Ingenuity and Acumen is sharpened by highly specialized knowledge in various branches pertaining the running and conducting. The research project in our basket was-“Research on car detailing” by the company in Udyog vihar, Gurgaon, Haryana. The different car company service Centers that I have chosen for our research were located at Delhi, NCR territory. The sample unit taken were company authorized service centers at Okhla Industrial area, phase I, phase II, phase III and Noida, sec-11, Gurgaon, Peeragarhi,Motinagar etc that are listed ahead in the report.

Research is a feedback that any organization sought for the purpose of effective policy and decision making. It is the systematic problem analysis, model building & fact finding for the purpose of important decision-making & control in the making of goods and services. Summer Project is a part of our curriculum so that we get exposed to the practical side our theoretical know-how. This is basically designed to the real life situation. In this training programmed, the students use their academic knowledge practically which polishes the decision making abilities of MBA graduates. For developing healthy managerial and administrative skills of potential managers it is necessary that theoretical knowledge must be supplemented with exposure to real life business environment.

Conventional academic medium cannot sell anything practically down to real and practical market knowledge is required to make a hard core corporate. This research work gave me the opportunity to apply conceptual skills in practice and to learn the art of conducting study and presenting its findings in a systematic and scientific way.

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ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Mr. Sheikh Yasir Project Guide, (3M India ltd.) for giving me an opportunity to work on a live project. I am very grateful to Mr. Mohit kumar National Sales manager (3M India ltd.) for giving me proper guidance in completing the project from beginning. I am also very grateful to Sales team leader Mr. Saurabh Verma (ASM, 3M India ltd.) who had given their guidance which helped me to complete my project successfully. At last I want to thank all the staffs of human resource, stores, shipping and marketing for their co-ordination without whom it would be very difficult for me in achieving my target and making the project successful.

Lastly, I would like to thank my College, JAMIA HAMDARD, New Delhi for providing me this platform and also to the faculty supervisor of my institute Mrs. Sadaf Siraj, whose continuous kind support helped in the completion of this project successfully.

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Table of Contents

1.Introduction

2.REVIEW OF LITERATURE

3.PRODUCT PROFILE

4.RESEARCH METHODOLOGY

5.ANALYSIS & INTERPITATION

6.SUGGESTIONS & RECOMMENDATIONS

7.ANNEXTURES

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INTRODUCTION

COMPANY PROFILE

History of 3M Company

3M was founded in 1902 at the Lake Superior town of Two Harbors, Minnesota. Five businessmen set out to mine a mineral deposit for grinding-wheel abrasives. But the deposits proved to be of little value, and the new Minnesota Mining and Manufacturing Co. quickly moved to nearby Duluth to focus on sandpaper products.

Years of struggle ensued until the company could master quality production and a supply chain. New investors were attracted to 3M, such as Lucius Ordway, who moved the company to St. Paul in 1910. Early technical and marketing innovations began to produce successes and, in 1916, the company paid its first dividend of 6 cents a share.

The world's first waterproof sandpaper, which reduced airborne dusts during automobile manufacturing, was developed in the early 1920s.

A second major milestone occurred in 1925 when Richard G. Drew, a young lab assistant, invented masking tape – an innovative step toward diversification and the first of many Scotch® Pressure-Sensitive Tapes.

In the following years, technical progress resulted in Scotch® Cellophane Tape for box sealing and soon hundreds of practical uses were discovered.

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In the early 1940s, 3M was diverted into defense materials for World War II, which was followed by new ventures, such as Scotchlite™ Reflective Sheeting for highway markings, magnetic sound recording tape, filament adhesive tape and the start of 3M's involvement in the graphic arts field with offset printing plates.

In the 1950s, 3M introduced the Thermo-Fax™ copying process, Scotchgard™ Fabric Protector, videotape, Scotch-Brite™ Cleaning Pads and several new electro-mechanical products.

Dry-silver microfilm was introduced in the 1960s, along with photographic products, carbonless papers, overhead projection systems, and a rapidly growing health care business of medical and dental products.

In 1980, 3M introduced Post-it® Notes, which created a whole new category in the marketplace and changed people’s communication and organization behavior forever.

In the 1990s, sales reached the $15 billion mark. 3M continued to develop an array of innovative products, including immune response modifier pharmaceuticals; brightness enhancement films for electronic displays; and flexible circuits used in inkjet printers, cell phones and other electronic devices.

In 2004, sales topped $20 billion for the first time, with innovative new products contributing significantly to growth. Recent innovations include Post-it® Super Sticky Notes, Scotch® Transparent Duct Tape, optical films for LCD televisions and a new family of Scotch-Brite® Cleaning Products that give consumers the right scrubbing power for a host of cleaning jobs.

3M is a diversified technology company with a global presence in the following businesses: industrial and transportation, health care, display and graphics, consumer and office, safety, security and protection services, and electro and communications. 3M is among the leading manufacturers of products for many of the markets it serves. Most 3M products involve expertise in product development, manufacturing and marketing, and are subject to competition from products manufactured and sold by other technologically oriented companies. At December 31, 2007, the Company employed 76,239 people, with 34,138 employed in the United States and 42,101 employed internationally, i.e. 55% of the total staff. Moreover, 63% of total sales are made internationally (total sales reach $24.462billion in 2007).

The most famous 3M’s brands, which also are market leaders, are the following: Nexcare,Post-it, Scotch, Scotch-Brite, and Scotchgard.

StrengthsStrong research and development capability

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Diversified business portfolioStrong financial performances Strong return on average assets and investmentsWeaknessesPoor inventory management Increasing cost of healthcare segment OpportunitiesGrowing demand for LCDsRising healthcare spending in the US Global expansionThreatsGrowth in private labels Exchange rate fluctuations Slowdown in the US and Eurozone

3M Company has a strong business portfolio divided into six business segments:

Consumer and office business- Sponges, scouring p a d s , h i g h -performance c l o t h s , c o n s u m e r a n d o f f i c e t a p e s , repositionable notes, carpet and fabric protectors, construction and home improvement products, home care products, protective material products and consumer health care products.

Display and graphic business- Optical films and lens solutions for electronic displays, touch screens and touch

monitors, reflective sheeting for transportation safety and commercial graphics systems.

Electro and communication business- Packaging and interconnection devices, insulating and splicing solutions for the

electronics, telecommunications, electrical industries, and visual systems.

Health care business- Medical and surgical supplies, skin health and infection prevention products,

pharmaceuticals (sold in December 2006 and January 2007), drug delivery systems, dental and orthodontic products, health information systems and microbiology products.

Industrial and transportation business- Tapes, coated and nonwoven abrasives, adhesives, specialty materials, filtration

products, closures for disposable diapers, automotive components, abrasion- resistant films, structural adhesives and paint finishing and detailing products.

Safety, security and protection services business- Personal protection products, safety and security products, energy control products,

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commercial cleaning and protection products, floor matting, roofing granules for asphalt shingles, and Track and Trace products, such as supply chain execution software solutions.

3M’s six business segments bring together common or related 3M technologies, enhancing the development of innovative products and services and providing for efficient sharing of business resources. These segments have worldwide responsibility for virtually all 3M product lines. Certain small businesses and lab-sponsored products, as well as various

corporate assets and expenses, are not allocated to the business segments. 10

3070

2775 80

7274

Industrial andTransportation

Health Care

Display and Graphics

Consumer and Office

3403

3892

3968

Safety, Security andProtection Services

Electro andCommunication

Corporate andUnallocated

Figure 2: 3M’s six business segments and their proportion of the total sales in 2007Sources: www .3m. c om/ 3M Company, 2007 Annual Report

About the distribution at 3M Company, we can see that 3M products are sold through numerous distribution channels, including directly to users and through numerous wholesalers, retailers, jobbers, distributors and dealers in a wide variety of trades in many countries around the world.3M’s general offices, corporate research laboratories, and certain division laboratories are located in St. Paul, Minnesota. In the United States, 3M has nine sales offices in eight states and operates 74 manufacturing facilities in 27 states. Internationally, 3M has 148 sales offices. The Company operates 93 manufacturing and converting facilities in 32 countries.

REVIEW OF LITERATURE

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Detailing as a concept and World scenario

1800s- In the small German town of Bischofsheim a carriage maker developed a wax based on animal fats to protect the black lacquer type paint that was applied to horse drawn carriages.1886- A lot of people agree that the inventor of the car was Karl Benz. Benz was an engineer and inventor who lived in Germany during the late 1800′s and early 1900’s? On January 29, 1886 Karl and the team of Gottlieb Daimler and Wilhelm Maybach patented the first car. The DRP 37435 patent is recognized as the official birth certificate of the motorcar. On July 3, 1886 it was first demonstrated to the public in Mannheim, Germany. 1889 was the year Gottlieb Daimler founded Daimler Motoren Gesellschaft, the company that was to become Mercedes Benz!1888 - Friedrich Menzer founded a chemical factory in the city of Pforzheim, Germany, to manufacture fine polishing agents for gold and other precious metals. The company succeeded in producing “Paris Red”, which was considered the best fine polish for gold, but otherwise the polish company was slow to take off. Menzer then moved his company to nearby Karlsruhe in 1899 and systematically opened branches in foreign markets starting in 1921.1900s- The first automobile to be produced in quantity was the 1901 Curved Dash Oldsmobile, which was built in the United States by Ransom E. Olds. Modern automobile mass production, and its use of the modern industrial assembly line, is credited to Henry Ford of Detroit, Michigan, who had built his first gasoline-powered car in 1896. Ford began producing his Model T in 1908 the paint he used was similar to the lacquer used on the earlier horse and carriages. Henry Ford is reputed to have said, “You can paint it any colour you like as long as it’s black” and by 1927, when it was discontinued, after over 18 million had rolled off the assembly line.1925- Ditzler Colour Company acquired property at 8000 W. Chicago Ave. in Detroit, where it built a factory for manufacturing the first Ditzler lacquer for automotive factory finishes. Ditzler Colour Company was purchased by Pittsburgh Plate Glass Company in 1928, but continued to manufacture products under the Ditzler label as a subsidiary until 1968 when Pittsburgh Plate Glass was reorganized under the name of PPG Industries, Inc.1930s- An acrylic resin system or stove enamelling as it became known; this finish produced a very hard, dense and shiny paint finish. A man named dé Vilbiss is credited with perfecting an atomising spray gun and paint holding canister that could be used to apply thin multi-coated enamel paint systems.

Hans Anwander produced the first jars of Antikwachs, hand made non-enzyme based wax formulas, produced in a carefully controlled environment, in his tiny Zurich workshop. Originally developed to protect the family’s priceless collection of antiques and lacquers, Hans found it produced stunning results on his private collection of automobiles as well. Soon a family business was born and since those early days, three generations the Anwander family have carefully nurtured and refined those waxes into the ultimate standard for automotive care. Today they can be found in the boot of every Rolls Royce that comes off the Goodwood England assembly line; and is the only wax approved for use in the Mercedes Restoration Centre where classic pre-war automobiles are restored to their original grandeur.

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In the 1970′s a member of the Anwander family came to the USA from Switzerland, with the intention of selling some of the families wax formulas, but when she found out that the American market was only interested in ‘mass production’, it was decided that a modified formula would be sold for production in the USA. These formulas were enzyme based (air acts as a catalyst to cure the wax) and were originally distributed by the Turtle Wax Company shortly before the Zymol(Zym-from the word enzyme) company was founded in 1980.1936 - Einszett was founded by Werner Saur Sr. in Germany. The company began with the goal of making a quality car polish. While the cars have changed dramatically since then, Einszett’s commitment to making quality car care products remains the same. Each product has been researched, tested, and manufactured in Germany to meet Einszett’s strict quality guidelines. Einszett produces products that create tangible results: glossy paint, clean trim, and bright metalwork. Incidentally, “Einszett” means “1Z” in German, which is the designation assigned to license plates registered in Köln, Germany.1950s- Menzerna came under the management of Dr. Walter Burkart, who began researching industrial polishing technology, culminating in his writing of a guide to sharpening and polishing. This guide is still recognized as the standard guide on the subject. With the 1960s came the advent of liquid polish emulsions, which is still the norm in the auto industry. Menzerna quickly adopted this new way of processing and applied to it some of the highest standards of quality that the industry has ever seen.

1953- Cyclo U.S.A commenced operations in 1953 manufacturing their unique twin head orbital action polisher designed specifically for the aircraft and aerospace industries. In a short space of time the Cyclo polisher (together with the various polishes) established itself as the standard aircraft polishing system throughout the world and is now used by virtually every airline and aircraft manufacturerIn the mid 1970’s the Cyclo machine was discovered by the automotive industry, and was such an instant success in resolving the paint problems of the auto motive industry that it is now the approved machine for all Ford, General Motors, Toyota, Lexus, Hyundai and Nissan dealer outlets in the U.S.A.

1958- Nils Bohlin, Volvo design engineer, patented the “Basics of Proper Restraint Systems for Car Occupants,” better known as a three-point safety belt. A year later, Bohlin’s lap-and-shoulder belt was introduced by Volvo as standard equipment on all of its cars1960- A German manufacturer Car-Lack (Klasse in US) was the first admixing polyethylene to be used instead of wax, and a European company Autoglym(were originally Swedish, they re-named for the UK market with a very British image, which became even more so once awarded the Royal Warrant) formulated acrylic resin car care products. Mercedes-Benz dealerships used the Car-Lack sealant, while Jaguar and various other English carmakers (Jaguar, Aston-Martin, Rolls Royce and Bentley) favoured Autoglym products Meguiar’s was founded in 1901 as a furniture finishes manufacturer and later started to manufacture foam pads (1965) for use with rotary polishers1970s- Both Japanese and European began using a paint that contained mica chips (metallic paints) in an acrylic paint with a clear coat. This top layer of the paint film system comprising clear polyurethane or urethane paint that provides an outstanding hardness, premium gloss, distinctness of image and long lasting colour retention and a hard protective layer.

The US later embraced both the metallic paints and clear coat technology, but the clear coats

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applied to late 70s US vehicle often failed within two to three years due to quality issues.1980s- The US Government began to get involved with the paint process used by auto makers, namely the volatile organic compounds (VOC) content of the petroleum based paints being used. The allowable emission limits of VOC were subjected to dramatic cutbacks. Autopia-Carport.com an Internet website detailing forum was started by David Bynon, in 1998, the name was later changed to Autopia.org.

1990s- Saw the onset of water-based, oven dried two-stage (colour and clear coat) paint systems. This system enabled a myriad of paint colour options and having perfected the clear coat systems, depth of shine, gloss and clarity were obtained. Although water-based paints are softer and more porous than the oil based counterparts, with proper care and maintenance they show a high level of durability

A US power tool company, Porter-Cable that was established in 1914, started to manufacture an electrically operated random orbital sander (1990s) now one of the most used tools for professional and enthusiast detailer’s Velcro backed backing plates and foam pads were introduced for use with both high-speed rotary and random orbital buffers1990 – 2000s- Detailing clay, originally used in Japanese auto body shops (1980) was then introduced to the US (1990) with only a couple manufactures in the U.S. with patents to protect the technology, first used in professional bodywork painting shops and now by OEM’s, professional detailers, vehicle auctions, and amateur detailers. Body shops routinely use detailing clay as a simple, safe way to remove over spray and surface contaminants from painted surfaces, chrome and glass. The latest evolution of this technology is clay-like bars of entirely man-made polymers. Detailing clay is manufactured with different levels of abrasiveness for different applications, recognized by using various colours2000s- Micro fibre technologies became available, by definition, (very small; involving minute quantities or variations) micro fibres are ultra-fine yarns made from various sources. They can be polyester, nylon, or a natural material such as cellulose, Micro fibre filament spun or extruded from natural materials such as cellulose (plant fibres) are available. Micro fibres are two times finer than silk and nearly one hundred times finer than human hair. Split Micro fibre s it is more specifically described, possesses numerous wedges rather than the rounded threads found in ordinary cloth. This wedge structure is what provides the superior penetration of grease and oil verses that of common fabrics. In addition, the rounded fibres on most cloths only push the dirt along the surface, whereas the wedge-shaped micro fibres grab the particles of grime and pull them into the dense internal structure.

Micro fibre has two polymers: polyester and polyamide. Polyester is lyophillic, or has an affinity to oil, so that oil and grease adhere directly to the fibres. Polyamide is hydrophilic, which means it has an affinity to water. As a result, any type of dirt is very quickly and completed removed with Microfiber, leaving a sparkling-clean, streak-free surface. Micro fibre cleans any surface without streaking, smearing, or scratching. This type of technology has changed the detailing industry and they way products are applied. The advent of materials like detailing clay, Velcro backed foam pads, micro fibre, and paint technologies are examples of why it’s so important to monitor the industries new products, chemicals technologies and ideas that are constantly being introduced, as are the techniques for applying them.

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2003 – Guru Reports (Car Wax Test, Glass Cleaner Test, Wheel and Tire Cleaners) comprehensive tests of autos, cars, trucks, SUVs and car related products and then compiled the results into easy to use Special Reports.The inaugural study was based on a comprehensive set of test criteria and scientific research and analysis of 46 popular car waxes. The car waxes were divided into four categories; low priced, moderately priced, premium priced, and synthetic waxes. The study measured durability, ease of use, product availability, and performance amongst peers.2004- PPG Industries CeramiClear is a binary clear coat composition designed to offer long-term gloss and durability. According to PPG engineers, this is the first automotive clear coat to use nanoparticle technology. CeramiClear can still be damaged by keys but most day-to-day use including degradation from ultraviolet radiation, acid rain and salt is eliminated. Additionally, reported test results show CeramiClear holds onto more than 80 percent of its gloss appearance after several months of weathering and being run through the car wash. The development of paint effects also garners a considerable amount of PPG’s time. Effects currently employed by the company include; aluminium flake which creates sparkles, coloured aluminium flake which has an iridescent look to it, Mica or Pearl which refracts the light and finally flex pigment, originally used in currency, which can create a colour changing effect by giving off slightly different hues at alternate angles.2007 - A new type of automotive surface protection system was introduced to the market in the form of wipe-on, walk-away clear sealants. The clear paint sealants are nanotechnology polymer coatings that are highly resistant to detergents, acids and hard minerals, like calcium. Don’t let the nanotechnology jargon confuse you. The chemical simply creates a full molecular blanket of protection by using molecules, that are much smaller than water or acid molecules, that bind together to form a tight chain link mesh protection.No wax/sealant fluorine-type clear coat finish – a technological advancement in clear coat finishes is a fluorine-type clear coat that needs little or no waxing. Currently available on Nissan Motor Corporation’s Infiniti luxury automobile, “no-wax” clear-coats are likely to be available on other cars and from other manufacturers in the future.

The fluorine-type clear coat finish requires special detailing, especially to correct damage to the clear coat, and should be treated exactly per the manufacturer’s instructions in the owner’s manual. Polishing and waxing in the usual detailing sense are not appropriate for these high-tech finishes.

Timeline that shows the progression of automotive paint finishes -

1924 – Spray painting was introduced and the only available material was nitrocellulose lacquer.

1929 – Alkyd enamel was introduced. It was tougher than lacquer and needed no compounding. Most manufacturers used either lacquer or enamel from this point on, depending upon availability and factory conditions.

1940 – Chrysler and Ford changed over to enamels exclusively. Metal flakes in paints were introduced by the aluminium industry.

1956 – Acrylic lacquer was popularized due to its better sheen and durability. GM went exclusively to the material.

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1960s – Paints utilized chromates, lead and other heavy metal chemicals that produced durable finishes. Ford called its enamels “proselytized” paints.

1970 – The first aftermarket polyurethane enamel, Imron, was introduced by DuPont. It utilized a two-part chemical system that was extremely durable. DuPont experimented with waterborne solvents during this period.

1978 – High solids acrylic enamel becomes the paint choice of most manufacturers. These have the advantage of requiring fewer coats.

1982 – Base/clear coat paint system adopted as automotive paint system industry standard.

1987 – Water-borne primers introduced. These paints are not actually dissolved in water, but use water as the medium to help transfer the paint from the can onto the car. They took a long time to perfect at the factory level, during which many durability problems were encountered.

1989 – Water-borne base coats introduced.

1990 – Clean Air Act sets strict limits on volatile organic compounds (VOC) emitted during paint applications.Both Japanese and European car manufacturers began using metallic (polychromatic) paint that contained 100-300-nanometer mica chips in an acrylic paint with a clear coat.

1997 – Anti-chip primers become industry standard.

INDIAN SCENARIO:-

Y OU won't be astounded to know that increasing numbers of consumers are turning to car wash and detailing professionals. In the past few years, there has been a steep rise in the number of cars in India that has triggered the growth of this sector. According to industry estimates, India is projected to have the highest number of cars by 2050 (about 611 million cars); its consumer market is expected to be the fifth largest in the world by 2025, and humungous growth is also anticipated in the transportation sector. Keeping this scenario in mind, the car-care business has grown in just a couple of years.The car-care business encompasses a wide customer base from local businesses to dealerships new car owners, older luxury car owners, etc. Thanks to the rise in disposable incomes, customers don't mind paying extra bucks for car washing. Dependency on cars for daily travel has led to rising demands for frequent servicing of cars. Thus, professional car washing is the best option to meet this surging demand. Relatively, a new sector in India, it is at the threshold of picking up top gear in franchising.Elaborating on the growth potential of car-washing market in India, Anckur Sama, Founder-Director, Carz Spa, says: “Indian carwash market is expected to witness an exponential growth;

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in the next five years about 5,000 stores will come up.”Brands on a success driveSeeing this burgeoning demand in car washing market, many prominent players like Carz Spa, Speed Car Wash, and Express Car Wash are speeding up to get into franchising.Speed Car Wash (SCW) is a concept designed and developed by LIV INDIA GROUP. The brand is into the car cleaning segment and strives to give the community a new definition of car care and detailing services that are not professionally followed in India. A unique mechanised car-cleaning concept, SCW, is a junction where cars get 'pampered' by the latest equipment that embraces high pressure cleaning machines, spray extraction machines, high powered vacuum cleaners, steam cleaners, etc.

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The car-care services also consist of the concept of car detailing. Simply put, car detailing is exterior and interior refurbishment to maintain and restore vehicle appearance, clean interiors, underbody protection treatments and sun-films. “3M has cutting-edge over other brands as it offers car-care products like performance finish, 3M Paste-Wax, Scotchgard Paint protection film, car-wraps, foam-it interior cleaning products, and auto sun-films (of which we are the inventors),” says Vishesh Nigam, National Manager, Franchising Business, 3M.

Today, franchising seems to be the best option for spreading the reach of any business, and in carwash business an entrepreneur can reach his destination easily via franchising. Sama thinks that franchising is the best possible way to expand with limited resources. Carz Spa currently has 32 franchise outlets.Palwinder Singh, Manager, Channel Expansion Division, Speed Car Wash, that has around seven franchise outlets says: “Franchising is a way for a business to expand beyond its original owners. The power of franchising is realised through the combination of the contributions from the two participants (franchisor and franchisee).  Our quality services, convenient and cost effective benefits of using SCW, will help our franchisees grow their businesses. As a SCW franchisee, you also have the ability to control your destiny while working from home.”3M, one of the renowned brands in this service, started the business a year ago with one store, and today, they have grown to 12 franchise stores in five cities. The franchising route allows them to use the local strengths of their franchisees in their markets to expand business, while the company goes on with their task of innovating, developing, and supplying great products, maintaining quality standards and marketing.  The company's stores have performed extremely well and are hitting the break-even mark within the first year of opening.Guidebook to growFranchisors in the car wash business think that it is imperative to provide necessary training and support to their franchisees. Carz Spa provides extensive two-week training from scratch. Their trainers even stay back at franchisee outlets for 10 days after launch. Extended support in marketing, designing, and standard operating procedure is also provided. The brand is seeking franchisees that are passionate about the industry, have an urge to learn and a much-needed patience to reap the 'harvest'.SCW franchisees do not need any prior technical experience to effectively operate a franchise. SCW's comprehensive initial training program includes engaging in in-depth informative classes on all matters pertaining to marketing, operations, and technology. The training sessions are taken by their certified trainers, who have enough experience in car wash business. SCW's focused support services provide valuable information to its franchisees that ensures successful program implementation. These services include marketing and advertising assistance, equipment and technical support, web and online support, etc.The franchise partner of 3M has to undergo the '3M Franchisee Induction' programme at their India headquarters at UB City, and their Innovation Centre and Electronic City, Bengaluru. Key franchisee staff and applicators have to undergo a fixed number of days of training when they are appointed. Subsequent training is also provided every quarter.

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PRODUCT PROFILE

There are 8 division in the organization and I

was working in Industrial and transportation

business

1.Transportation Industry We provide high-quality abrasives, tapes, films, adhesives, and specialty materials for the manufacture, repair, and maintenance of autos, aircraft, boats, and other vehicles.

3M Automotive OEM 3M Automotive Aftermarket 3M Car Care Traffic Safety Systems

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AUTOMOTIVE

Car Detailing Services3M Car Detailing offers a complete range of internationally proven treatments applied by qualified 3M- Trained professionals. Approved and recommended by major car manufacturers, these are designed to help you maintain your car in pristine condition at all times, irrespective of its age and condition.

ExteriorsKeep your car looking as good as new.Treatments that protect and ensure that the beauty and excitement of your car exteriors last longer, without any periodic attention.

InteriorsKeep your car hygienic, safe and enriched.Treatments for your car interiors to ensure that it stays that way, for years to come.

UnderbodyKeep your car protected.Prevent the harmful effects of rust with unique treatments formulated to keep your car's underbody safe and intact.

Engine PerformanceKeep your Car rejuvenated.The engine rejuvenation treatment restores power, performance, fuel economy and efficiency by removing carbon deposits from intake valves, combustion chambers and fuel injectors.

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SWOT ANALYSISSWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. It accomplishes this by assessing an organizations Strength (what an organization can do) and Weakness (what an organization cannot do) in addition to Opportunities (potential favorable conditions for an organization) and Threats (potential unfavorable condition for an organization).

SWOT analysis is an important step in planning and its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is to take the information from the surrounding and separate it from internal issues (strength and weaknesses) and external issues (opportunities and threats). SWOT analysis assists the firm in accomplishing its objectives (strength or opportunity) and overcoming the obstacles (weakness or threats).

STRENGHTS - a) Strength:- 1. Advantage of car detaling services: No equivalent service in market 2. Capabilities: Makes your car looking new for a very long time, prevents color fading due to ultraviolet , prevents from rusting ,making the engine smooth by reducing carbon, makes the glass as new. 3. Competitive Advantage:

Differentiation – All Weather Application Quick Setting Time Easy availability at authorized car service centers

4. Innovative Aspect: 3M technology gives touch dry surface in 4-6 hrs Works In all weather conditions

5. Delhi, NCR and other metro cities have huge requirement of such services 6. Durability : guaranteedWEAKNESSES:  1. Disadvantage in Proposition: Lack of awareness among the customers

2. Lack of competitive strength: Cost focus Cost Leadership

3. No Retail distribution channel is available.4. Price is much higher than competitors in market.

 OPPORTUNITIES: 

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-  1. Competitors vulnerability

No equivalent product No guarantee for durability Multiple coat application Low Quality results No proper distribution channel available in India.

2. Target market: Delhi, NCR.

THREATS:  1. Competition Intensions: competitors with low cost products 2. Depending on service center's costumer service advisors for sales of our services. 3. New Entrants

Competitors Analysis. 1. Fucon technologies India

(GERMANY)

• Features

• 1ANTI-CORROSIVE TREATMENT-BLACK&

TRANSPARENT,STONE GUARD

• 2ACRYLIC PAINT PROTECTION(FOR NEW CARS)

• 3POLY GLAZE(FOR OLD CARS)

• 4CAR UPSHOTRY CLEANING(INTERIOR CLEANING)

• 5ENGINE COATING

• 6Fast moving in market

• 7Preferable product in Bangalore & Chennai Market

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2. DIAMOND BRITE(U.K)

Features

DETAILING SERVICES

DIAMOND PACKAGE:

A Detailed Masterpiece!

Vacuum and steam clean carpet and upholstery

Clean door jams and molding

Clean headliner

Clean all cracks and crevices

Clean and disinfect dash and all other vinyl

Clean and condition leather

Clean interior and exterior windows

Hand wash

Bug and tar removal

Clay bar application

Minor scratch removal

Hand wax and polish

Clean dress, polish tires, rims, and wheel wells

Engine cleaning and dressing

 

SILVER PACKAGE

Vacuum

Steam clean for carpet and upholstery

Clean doors, trunks, and hood jams

Headliner

Clean all cracks and crevices

Clean and disinfect dash, console and all other vinyl

Clean and condition leather

Clean interior and exterior windows

Hand wash

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GOLD PACKAGE

Hand wash

Bug and tar removal

Clay bar application

Minor scratch removal

Hand wax and polish

Clean door jams and molding

Clean dress and polish tires

Clean rims and wheel wells

Engine cleaning and dressing

Cleaning interior and exterior windows

Interior dash wipe down

Vacuum

Competition Analysis- Market share in

Delhi(NCR)

35%

27%

15%

23%

Market share

3MDiamond BriteFuconOthers

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DISTRUBUTION

DISTRIBUTION NETWORK

The structural representation of the distribution channel is as follows:-

Manufacture

Mother godown

Company Depots C&F Agent

Service Centers Service Centers

Distributors

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Five Forces of market influence the market

Five Forces That shape industry Competition

Supplier’s power-

In 3M the suppliers are not more powerful because the supplier of 3M is not in Big then the firm.

Buyer’s Power –Buyers are Individual Customers they are

not powerful But Customer is Always king so we should not forget them.

Threat of new Entrants-

New Entrants of the Market are very Harmful for us if They have more Resources .1) Car spa. 2) Waxpol services.

Threat of Rivalry-

Our rivalry firm is DIAMOND BRITE AND FUCON BRAND (LIQUI MOLY) Which is very powerful in Indian market and market share is more then 42% Coverage

Threat of Substitute-

Major of substitute of our product is CARWASH.

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RESEARCH METHODOLOGY

RESEARCH OBJECTIVEThe purpose of this project is to develop a study which can provide 3M clear picture about the current market scenario so that 3M can go ahead and can launch new services in the market.

1. To undertake a strategic analysis of 3m car detailing services in Delhi and NCR and make recommendations based on the analysis to further increase its market presence

2. To conduct a service station survey in Delhi, NCR region in order to gauge their satisfaction with 3m services.

3. To get the clear picture of the current market scenario and recommend marketing mix for the services

4. To pin point the problems faced by the car dealerships in 3m car detailing services.

SAMPLE SIZE FOR SURVEY

The survey was done in about 50 company authorized car service centers.

The total population was 80.

SAMPLE PLAN

METHOD OF DATA COLLECTION

Here the data are collected through market survey.

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SOURCES OF DATA:

The primary data collected through the survey method for the purpose

of the study. The survey was done by using questionnaire method.

Beside this I had an informal discussion with the service advisors at

different service centers. Secondary data: information regarding the

organization was obtained from secondary sources like company journals,

company websites, publications & records.

RESEARCH DESIGN

The design appropriate for this research is Exploratory Research Design. The main purpose of such studies is that of formulating a problem for more precise investigation or of developing the working hypothesis from an operational point of view.

The survey was conducted in Delhi (NCR) by asking from the service centers, company distributors and car owners availing 3m service.

LIMITATIONS

1. The survey was conducted in Delhi, Ncr and do not present a picture of the whole country.

2. The survey was based on consumer opinion and may be biased and mislead the research.

3. There are very limited latest information sources for such topic.

4. There may be biases on the part of the Company Executive while providing the information.

5. The respondents were not willing to answer.

6. The biggest limitation was the time constraint as it was not possible to collect data from customers from each and every service center.

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SURVEY OF SERVICE CENTERS IN DELHI& NCR REGION:

SERVICE CENTERS COVERED:

SHIVA MOTORS, GHAZIABAD(CHEVOLET) SHIVA MOTORS, NOIDA SEC-11 (CHEVOLET) ACE HONDA, OKHLA INDST AREA PEARL HONDA, NOIDA TOYOTA B-23,OKHLA INDST AREA TOYOTA B-243,OKHLA INDST AREA DEUCSHE MOTOREN BMW , MATHURA ROAD SOUTHEND HONDA, BADARPUR SOUTHEND HONDA, OKHLA INDST AREA RINGROAD HONDA, GURGAON RINGROAD HONDA, MOTINAGAR PEARL HONDA, GURGAON TOYOTA ,JAHANGEERPURI TOYOTA, MOTINAGAR TOYOTA BODYSHOP, MOTINAGAR DEUCSHE MOTOREN BMW, MOTINAGAR HARPREET FORD, OKHLA INDST AREA HARPREET FORD, MOTINAGAR HARPREET FORD, AZADPUR HARPREET FORD, DEFENCE COLONY HARPREET FORD, FARIDABAD NCR FORD, FARIDABAD NCR FORD, OKHLA INDST AREA NCR FORD ,PEERAGARHI GALAXY TOYOTA, PEERAGARHI RINGROAD HONDA , PEERAGARHI BODYSHOP RINGROAD HONDA, PEERAGARHI SHIV MOTORS ,JAGUAR ,MATHURA ROAD KAPOOR PORCSHE, GURGAON TNT MOTORS MERCS BENZ, MOTINAGAR TNT MOTORS MERCS BENZ, OKHLA-2 ESPRIT TOYOTA, MATHURA ROAD AUDI, MATHURA ROAD AUDI ,GURGAON NAWAB SKODA, NOIDA ,SEC-11 NAWAB MARUTI, PEERAGARHI AAA VEHICLEADES MARUTI ,PEERAGARHI

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AAAVEHICLEADES MARUTI,OKHLA INDST AREA AAAVEHICLEADES MARUTI, MOTINAGAR AAAVEHICLEADESMARUTI,JAHANGEERPURI AAAVEHICLEADESMARUTI,KASHMIRIGATE DAS AUTO, BMW-CONNAUGHT PLACE DAS AUTO,BMW- ASHOKA HOTEL FARRENHEITE SKODA, AZADPUR FARRENHEITE SKODA,PEERAGHARI ARSHIA SKODA, GURGAON ARSHIA SKODA, BARAHKHAMBA ARSHIA SKODA, OKHLA INDS AREA JAI AUTO SKODA, GURGAON JAI AUTO SKODA, MATHURA ROAD

DATA ANALYSIS AND INTERPRETATION

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Q1. Have you used any car detailing service?

ANS. YES = 100%

Q2. What was the pain area?

Floor M

at

Roof Lining

Dash Board

Seat

Cover

Door Pan

el

Under Body

Bonnet

Bumper0%2%4%6%8%

10%12%14%16%18%20%

CAR AREA

CAR AREA

By the analysis of questionnaire data we got the above results that shows the percentage of

different areas that are generally affected and are brought for treatment.

Q3.Which car do you have (segment)

Page 30: 3 M Project Report

Hash-Back Sedan Class SUVs MUVs0%

5%

10%

15%

20%

25%

30%

35%

40%

CAR SEGMENT

CAR SEGMENT

Data obtained through questionnaire shows the percentage of car segments that have visited

the service center for the purpose of car detailing. We found that Sedan Class leads the other

segments.

Q4. How you come to know about the service

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Service Advisor Auto Magzines Internet Ads Refrences0%

10%

20%

30%

40%

50%

60%

70%

80%

sources

sources

The above data shows the different sources from where the consumers got the information

about car detailing.

This graph shows that the majority of customers got the information about the car detailing

from service advisors.

Q5Choose a brand from the following

Page 32: 3 M Project Report

72%

16%

12%

Preference

3MDiamond-BRITELiqui-Moly

This Pie-chart shows the preference level of customers, when they were asked to choose a

brand. From the data obtained we got the results with 3m leading the chart in costumer preference.

Q6. Which type of service used?

Page 33: 3 M Project Report

32%

42%

16%10%

Service

ExteriorInteriorUnder BodyInternal Panel

The data collected shows the percentage of different services availed by the customers.

The data is showing that car Interior services are mostly availed by the car owners.

Q7.How frequent you bring your vehicle for car detailing

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More than a year Less than a year As required0%

10%

20%

30%

40%

50%

60%

70%

Frequency

Frequency

When asked about time, in which the car owners bring their vehicle for detailing

the results were as follows.

Majority of the customers answered that they bring their vehicle for detailing as required.

Q8. Please indicate your preference

Page 35: 3 M Project Report

58%

16%

26%

Preference

QualityPriceBrand Name

When asked about the factor influencing the purchase 58% of the respondents replied with

quality as a parameter of their purchase.

Q9.Who visits the center

Page 36: 3 M Project Report

Car Owner Driver42%

44%

46%

48%

50%

52%

54%

Visitor

Visitor

When respondents were asked that mostly who visits the service station the answer came

with drivers mostly visits the service station.

Q10. Explain concept of our product & give feedback?

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64%

36%

satisfaction level

Satisfiied Not satisfied

The feedback came up with 64% customers satisfied with our services and 36% were not

satisfied.

Page 38: 3 M Project Report

SUGGESTIONS & RECOMMENDATIONSPromotion –

Promotional Meet –

• Demonstration of the Product

• Target Audience( All Car Owners)

• Prelaunch meeting with Distributors and Car manufacturers.

• Free demonstrations.

Distribution of demonstration-

• C.D. and pamphlets in apartments, Independent houses society, free with news paper (Times of India).

Demonstration Videos on web sites –

• Demonstration videos on websites like: Youtube

• Facebook , twitter forum can be created with the company and product name . Info about the product can be shared.

Street demo

• Street demo creating awareness among people.

Attractive Incentives / Gifts on Sale-

• Target achieved by dealerships then tour and big gifts for them.

• Some gift like calendar, holi, dipawali, chrisms gift.

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REFERENCES

www.fucon.in/index.php?option=com_content&view=article&id=80&Hemid www.diamondbrite.com/detailing www.solutions.3m.com www.solutions.3m.com/3mbusinesses www.3m.com/3mcompany,2007Annulreport www.datamonitor.com/3mcompany http://multimedia.mmm.com/mws/mediawebserver.dyn?

6666660zjcf61vs6evs6661mhcorrrq- http://solutions.3m.com/history

2. Information Brochure of 3m Industries Ltd.

3. 3m Company records.

4. Research Methodology by C.R.Kothari

5. Marketing Management, Philip Kotler.

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ANNEXTURES

QUESTIONNAIRE Name

Service center name

1.Have you used car detailing servicesYes/No

2. What was the pain area? a. Floor Mat b. Roof Lining c. Dash Board d. Seat Cover e. Door panel f. Under Body g. Bonnet h. Bumper

3 .Which car do you have (segment)? a. Hash-Back b. Sedan Class c. SUVs d. MUVs 4.How you came to know about the service a. Service advisor b. Auto Magazines c. Internet advertisement d. References

5.Choose a brand from the following a.3M Car Care b. Diamond-Brite c. Liqui-Moly

6 .Which type of service used? a. Exterior b. Interior c. Under-body d. Internal-Panel

7. How frequently you bring your vehicle for car detailing?(Time) a. More than a year b. Less than a year c. As Required

8.Please indicate your preference a. Quality b. Price c. Brand name 9. Who visits the center a. Driver b. Costumer

10. Explain the concept of our product and give feed back? a. Satisfied b. Not-Satisfied.

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