Sukkur Institute of Business Administration

Business Plan

Cartivo (Auto Car Wash Service)

Core Business Values

Team Members

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A group Business Plan submitted in partial fulfillment of the requirements for the course MGT-432 Entrepreneurship

Submitted To: Mohsin Kazmi

November 29, 2015

Table of ContentsExecutive Summary.........................................................................................................................4

General Company Description........................................................................................................4

Mission Statement........................................................................................................................4

Goal and Plan...............................................................................................................................4

Strategic Framework....................................................................................................................4

Business Philosophy....................................................................................................................4

Company ownership....................................................................................................................4

Company Location and Scope.....................................................................................................4

Product/Service Description............................................................................................................4

Competitive Advantage(s)...........................................................................................................4

The Opportunity...............................................................................................................................4

Market & Industry Analysis............................................................................................................4

Global, National & Local Trends.................................................................................................4

PESTLE Analysis.....................................................................................................................4

Industry Analysis.........................................................................................................................4

Porter’s Five Force Model Analysis.........................................................................................4

Market Forecast............................................................................................................................5

Market Segmentation & Target Market.......................................................................................5

Key Success Factors.....................................................................................................................5

Marketing Plan.................................................................................................................................5

Situation Analysis........................................................................................................................5

Competitors Analysis...................................................................................................................5

SWOT Analysis...........................................................................................................................5

Market Research..........................................................................................................................5

Marketing Goals...........................................................................................................................5

Marketing Strategy.......................................................................................................................5

4P’s...........................................................................................................................................5

Marketing Campaign....................................................................................................................5

Marketing Budget........................................................................................................................5

Sales Forecast...............................................................................................................................5

Operational Plan..............................................................................................................................5

Management Plan............................................................................................................................5

Organizational Structure..............................................................................................................5

Management Team.......................................................................................................................5

Financial Plan..................................................................................................................................5

Start-Up Costs and Capitalization................................................................................................5

Projected Income Statements.......................................................................................................6

Projected Cash Flow Statements..................................................................................................6

Pro-forma Balance Sheet.............................................................................................................6

Break Even Analysis....................................................................................................................6

Contingency Plan.............................................................................................................................6

Conclusion.......................................................................................................................................6

Appendixes......................................................................................................................................6

Appendix (A) – Market Survey Results...................................................................................6

Appendix (B) – Marketing Material.........................................................................................6

Appendix (C) – Pro-Forma Financial Statements....................................................................6

Executive Summary The Executive Summary is the doorway to your business plan. The summary should outline and emphasize your plan’s main points.

General Company DescriptionThe Cartivo automated car wash service will provide customers a premium car service. Our motive is to provide satisfaction to the customers in return of the price we will charge. We will provide our customers the automated service by using the innovative and latest technology and machinery so that the life of the vehicles of our customers become longer and their vehicles become secure from the damages. In order to provide this type of automated car wash services, we are going to import the machinery. We will provide this service by online booking but the core of our business will be based on face to face transaction. Our main focus will be on middle class, upper-middle class and elite class peoples of the city and we will also going to target the business sector and companies who own the large number of vehicles and are concern about their maintenance. We want to earn the reasonable profits by delivering our customers the best possible service and want to obtain and maintain the high market share. The Cartivo automated car wash service will be successful as they are the first to use the technology and machinery in this particular sector that will save the time of the customers and will prevent the vehicles to be damaged. The Cartivo will charge relatively low prices as compare to the local competitors.

Mission StatementMission of cartivo car wash is to provide completely satisfying and pleasing car wash experience to each of our customer with automated technology. Our purpose of existence is to develop a trust relationship with customers defined by honesty integrity and fairness. Your time is precious and we care about it. Your automobile is valued and we will not abuse it. Your satisfaction is our prime goal and we mean to provide it.

Goal and Plan1st Semi Annum:

In first semi annum we will create awareness and promote our service in targeted customers through efficient marketing strategies.

In first semi annum averagely we will provide services to 30 customers per day.

In first semi annum our firm will earn revenue of 2.7 million and expenses will be 1.8 million and we will earn profit of almost .9 million.

2nd Semi Annum:

We will sign contracts with nine different firms who are operating in the Sukkur areas and almost 500 vehicles we will wash of those firms.

Our customers will increase in second annum of the business and we will provide services to 40 customers per day averagely.

In second annum we will earn revenue of 3.85 million and expenses will be 2.2 million and profit will be 1.65 million.

3rd semi annum:

Now we have crossed the break even and firm’s customer is increasing. Our revenues will be 5 million and expenses will be 2.25 million and profit will be 2.6 million

4th semi Annum:

Our revenues will be 5.5 million in 4th semi annum and expenses will be 2.35 millions so total profits will be 3.15 millions.

Strategic Framework

Business Philosophy

Company ownership

Company Location and Scope

Sukkur is the 14th largest city of Pakistan and 3rd largest city of Sindh and its population is round about 1.2 million. According to the 2010 estimations of Pakistan, at least 59.50% of the population of Sukkur district was urban, making it the third-most advanced district in Sindh. It means that 885000 are living in urban areas of Sukkur.

Our target market is middle class and upper middle class of the Sukkur city because we are providing services to those persons who own vehicles like employees, business persons and also local persons.

People who are living in urban areas we have estimated from the available information and statistics that almost 23% of the urban people have their own vehicles it means our size of the business is about 195000 vehicles only which are present in Sukkur urban areas and also we have targeted firms like Engro and LU Biscuits to provide them services in order to extract profits from the untapped market.

People of Sukkur love their vehicles and they mostly try their level best to maintain their car’s outlook so it is great chance for us to extract profits from the market and provide best services in order to maintain competitive advantage and also in this way we will resist our competitors to come into the market. Here in Sukkur market there are many hand wash service stations but we are the first who are coming with the idea of automated wash systems and people will love this

because their vehicles and time will be saved and they can get the services at the affordable prices

Location of our business will be on Sindh society airport road. Initially we will start our business and the place we will hire on rent. We will pay rent for 1500 square feet garage where we will integrate our two auto car wash systems.

Product/Service Description The latest version of the value added automatic car wash “CARTIVO” will be installed with a limited number of retail outlets to provide a unique experience in terms of a highly automated car wash facility at SUKKUR with an added dimension of flexibility, convenience and speed. We believe in quality trust is more precious than anything else. We assure you to provide qualitative services at reasonable prices. CARTIVO car wash is offering a high tech car wash facility with various value added features and special packages, an experience truly worthwhile. The main objectives of CARTIVO is to enhance the customer’s expectations , set new benchmarks and of course above all, to make one’s experience even more rewarding, initial feedback will be encouraging.

Competitive Advantage(s)

The Opportunity

Market & Industry Analysis Global Environment or Demographic trends:

Good car maintenance is important to keep your vehicle looking and running like new. Besides basic maintenance such as replacing tires or checking tire pressure, oil changes, and fluid checks, regular car washes can maintain the look of your vehicle. In the real world however, where busy schedules and daily commuters are a commonplace, a mix of both methods may be the best approach. Hand washes along with the corresponding additional steps such as claying, polishing and waxing should be done whenever time allows, for best results. Automatic washing and quick detailing should be done after particularly dusty days or any time weather is particularly severe, in order to help slow the accumulation of dirt and grime. By combining both options as time allows, you can essentially have the best of both worlds and a cleaner, better looking car as a result. Automatic car washes are more popular than ever because they save time and hassle.

Unlike the bristle brush systems of the past, today’s car wash facilities are equipped with an array of modern soft cloths and sprays to protect your vehicle’s finish.

Globally people are using auto wash services because hand wash systems consume lot of time and these systems contaminate water and pollution directly into the environment.

Local environment and demographic trends:

As we have selected Sukkur and its premises to service. People of this area used to go to the local service stations and they wait more than one hour at least for servicing. In interior Sindh there is no automated service station so people of Sukkur depend upon this hand wash service stations in order to maintain their vehicles. People of Sukkur who are car owner have really appreciated the idea of auto wash service station because it will save their time and also provide them greater utility as compared to hand wash system.

Local Competition, Strength and Weakness:

Competitors of our business do exist in remote areas to Sukkur but they are not technology based and our services will be totally technology based Which is itself a kind of strength for our business, but if we find any competitor then still we will be able to sustain our competitive advantage because of some strengths of our business:

We are first mover in Sukkur city and using technology along with technological knowledge.

We will produce at high level with low cost within minutes.

Our Services will be available 24/7

In the local competition, we may face the threat of new entrance in the market as well as the threat of substitutes. As the number of competitors and substitute products increase, we will have to face the greater power of bargaining power of customers, but it will not effect on our profits because we will operate in different regions and cities of country.

Market positioning:

Positioning is a marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands, in the mind of the customer.

It depends upon three factors. First we select our target customers. We are going to serve in the area of Sukkur and here is bulk of the population who really don’t like the hand wash systems so first of all it will be necessary for us to make them aware about our presence in the market. Our target market customers will be upper middle class and elite class. Then we will closely observe our key competitors, as there is no player exist in this market who is providing automatic wash system facilities but there are many good hand wash service stations and they have quite good image in front of people so it is necessary for us to use effective promotion strategies to promote automatic wash systems in order to gain competitive advantage.

PESTLE Analysis Businesses Sectors are growing in Sukkur city now a day’s which helps Sukkur to move towards development. Trends and living standards are changing so; this is an opportunity for us to help our customers to maintain their life styles by initiating a business which will offer them the products of their need. For installing/starting our business in Sukkur we need Government's support which is important for any business to start. This may help us to operate our business without any complexity under the regulations and laws of the Government. In Sukkur, to register a Small Middle Enterprises is very easy because of no complex documentation process. It hardly takes few weeks to be registered. Banks will help us to finance our business at reasonable interest rate. We will satisfy customer’s need by offering their demanded products. As we know that the disposable income of Sukkur citizens is increasing day by day, this is enhancing their living standards. As people of Sukkur live in joint as well as nuclear family system & latter’s ratio is increasing because both partners are working same like that of big cities, which increases their purchasing power. People's preferences and demands are also changing day by day, so they want to spend more today on their needs and demands than saving for their future. Sukkur citizens want such facilities which save their time & energy because most of people belong to business sector. By keeping this view of consumer's increasing income and their spending along with their demands, our business will try to provide them such a facility which will save their time with efficient & quality services with high level for satisfaction. This implies that we need to use technology that satisfies customers at lower cost (economies of scale) and so that customers can get their services within short time. Technology saves time as well as helps to work efficiently and effectively. Sukkur environment is being polluted by the firms which do not use technology in their businesses but our company will use such technology which will make the environment clean and safe.

Industry Analysis

Porter’s Five Force Model Analysis As our business is new in the Sukkur region no one has yet initiated this business. We are the first mover in automated car wash service therefore the rivalry impact will be less so, there will be monopolistic nature of our business but competition will be with the non-automated car wash

business holders. That will not have much impact on our company due to automated nature of our business. Our business is rare having complexities for others to be imitated and have huge level of satisfaction for the customers.

The other impact on our business could be of threat to the new entrants. The future of automated car wash system seems very profitable. And every high profit generating company attracts many investors. And they rush towards that business to enjoy high profit margins. And as our business is new in the market and have high potential to earn great profits, new entrants can be a big threat for the company. Competition’s nature will be changed from monopoly to oligopoly and it can be converted in to pure competition. In this condition our price setting power will be reduced, and profit margins can be low. For overcoming this threat many measures can be taken like we are the first mover in this region and we can have expertise in this field as compared to new entrants owing to that expertise we will follow cost cutting strategies, and through this way our company will again enjoy high profits.

The third influencing factor is threat of substitute; our biggest substitute is non automated car wash system. But with the new technologies, time and money saving strategies for customers many customers will be attractive towards our services.

The fourth factor is of bargaining power of customers, the business is new and unique having monopolistic nature. The bargaining power of customers will be very less. They will not bargain on price due to finding no any other competitor in the market. It will be beneficial for our company. It will lead us to set our prices. In this way we will be the price setter. And buy using skimming pricing method we will grab high profit margins initially with high prices.

The fifth factor that has a great influence any business especially those businesses which are running in pure competition. The factor is “bargaining power of suppliers “.

The bargaining power of supplier is when supplier demands more prices for the material they supply. Suppliers’ bargaining power increases when they see company is earning high profits by charging high prices or when there is huge demand of the raw material which any supplier provides. In these both cases bargaining power of supplier increases and they start demanding high prices for the raw material, our business is new and there is no competitor therefore the bargaining power of supplier will be very less. But it will impact when the market nature will be changed from monopoly to competitive market so they will find many other businesses demanding raw material and they ultimately will start bargaining on prices of the raw material.

Market ForecastPopulation of Sukkur city is almost 1.2 million and 59% people of city are living in the urban areas and more than 50% people are belonging to middle class and upper middle class. According to our research and statistics, 70 to 80 thousands are car owners in the city. Most of the household car owners they use to avoid to go on service stations and they just manage and maintain their vehicles at home and on routine basis their driver maintain their car so our target

will be 50% of the total car owners which will be almost 35 thousands. And from them we think that almost 10 thousands customers are those who will stick with the hand wash system so our target market will be 25 thousand car owners and also the firms which are operating in the Sukkur areas. It is estimated from our team that almost 500 cars we will wash cars of different firms in one month.

Market Segmentation & Target Market

Key Success Factors

Marketing Plan

Situation Analysis

Competitors Analysis Competitor’s analysis is all about market intelligence because it will directly or indirectly make our business successful or failure. This helps us to understand that how competitors are surviving

Our target market25%= 18000

Self service & hand wash 75%= 52000

Car owners at sukkur70 to 80 (thousand)

Middle Class 55%= 0.56 M

Sukkur populationApprox. 1.2 M

in the market and how they are capturing the targeted market and through which ways they are grabbing market share, and above all how we are creating competitive edge without compromising on our profits and loss of targeted market. It’s all about our strategies to survive in market by maintaining our image in customer’s eyes. So after having a detailed competitor analysis we have concluded that we have to strengthen our strategies against our competitors, thus we are going for cost leadership strategy and process innovation by providing automated car wash services to the customers

There are three types of competitors.

Direct competitors:

As there are already many hand wash car services in market and they are also doing well up to some extent and customers also prefer them so, hand wash systems are our direct competitors and at initial stages of our business it will be hard for us to capture the market in which competitors are already providing their services. They are providing hand wash services with low technology and manual work at relatively higher price and there are no promotional activities from their behalf so there is gape for us to grab opportunity by providing automated car wash services and people prefer them because they don’t have better option than hand wash.

Indirect competitors:

Our indirect competitors are the home car washes.

Potential competitors:

Our potential competitors can be hand car wash system because they are already present in the market they know the customer’s needs and problems so they can import machinery and can directly compete with us.

Other potential competitors can be large show rooms and filling stations who are already present in the market and don’t have any financial problem they can copy our idea and import machinery to operate in this area so they can give us tough time. For us competition is very high in the market and many potential customers are already there.

SWOT Analysis SWOT analysis is powerful tool that can help decision makers achieve their goals and objectives. It allowed us to bring transparency to various factors that can affect the achievement of their business goals and objectives.

Strengths:

Innovative idea: The Cartivo is entering in the market with an innovative idea that has never done before in the city.

Latest Machinery: The Cartivo is going to use latest technology and machinery for car service. This will be the business’s strength because this will save a lot of customer’s time and prevent their cars from damages.

Online Booking: There will be highly visible website for online booking to facilitate our customers as they can be able to reserve their slots to get their vehicles serviced in advance. There will be also lists of prices and packages for our regular customers and firms along with

StrengthsInnovative ideaLatest machineryOnline Bookinglow pricing strategyAttractive packges

WeaknessesLimited flexibility in pricingHigh dependency on electricityNew in market

OpportunitiesUrbanizationFlexible work hours for customerslarge target market

ThreatsLack of awarness among

customersBig showrooms and filling

stationsPerceptionn of customers

SWOT

feedback page for customer’s responses to further update our service station according to our customers.

Low Price: The Cartivo is going to charge very low prices from the customers in exchange of their premium services as compare to their competitors (hand wash services).

Attractive Packages: The Cartivo is planning to give the some of the packages to their regular customers and will give a special discount to customers who are coming to us for services on the weekly and monthly basis.

Weaknesses:

Limited flexibility in prices: There is huge competition in this business due to availability of local competitors so there is limited flexibility in prices we can’t charge high prices from customers because they will switch towards competitors. We have to wait till our customer’s become aware about our business till that we have to bear loses up to some extent because our start up cost is high and profits will be low at initial stages of our business.

High dependency on energy: A our business is highly dependent on electricity so in case of shortage of power supply create disturbance for our business in terms of customer’s dissatisfaction and loss in revenues.

New in Market: As we are new in market with automated service station so there are reasonable chances of failure for our business due to following factors:

Shortage of Power supply Low prices due to high competition

Opportunities:

Urbanization: As world is moving towards more technological era and human life has become so damn busy that almost every member of family is on the job so people don’t have time for their social life and not even to service their vehicles so it is great opportunity for us to target such customers who don’t have time. So we are going to facilitate them by providing automated car wash service stations.

Flexible working hours for customers: Our services will be available 24/7 with minimum time span so, our customers can visit us in their flexible work hours.

Large target market (Domestic and commercial): We are going to serve the individuals who don’t have drivers for their vehicles and commercial or business sectors because firms don’t engage their employees for car washing they are responsible for production so there is gape for us to operate and serve them. Through this way we can move for other franchises in future which is also opportunity for our business to expand and serve in other cities as well depends on demand for our services. We can expand to wash more than just cars e.g. trucks, large vehicles

and plant equipments. In our business there is ability to decrease the fixed costs as a percentage of individual sales as volume increase.

As our customers will increases per unit cost will decrease which will help us to decrease our prices in future in case of any competition and will be able to give tough time to our competitors.

Threats:

Lack of awareness: The Cartivo is coming with the latest technology and machinery and there is lack of awareness and knowledge among customers and only few customers are aware about it. Most of the people are thinking that it as harmful and dangerous for their vehicles to service with the automated machinery. According to our perception it can be our main weak point if we became unsuccessful to gain customer’s trust and confidence regarding our business.

Big showrooms & filling stations: Big car dealers like showrooms, filling stations can enter in this business because they have good contacts with customers and suppliers of technology so they will be possible threat for our business because they also have capability to import technology and can capture our market share.

Perception of customers: Perception of customers that there is no quality difference in hand and auto machine wash.

For most of customers there is no quality difference in hand machine wash system and this is also threat for us because it is not easy to change their perception. So for that we need to launch such campaign and promotional activities that hit their mind and perception and for that need much finance which may affect our revenues. We may need to increase costs of staff training for quality customer services and friendly interpersonal skills.

Market Research We had conducted research from sample of 40 people and following are their responses:

80% of the people we conducted research lies between the ages of 18-40. Among them 95% were male because interior Sindh in mostly male dominant society and females are not allowed to derive and it is also not safe for women to derive here due cultural and safety issues. From 95% almost 70% people don’t have drivers for their vehicles/cars. From that 70% people round about 50% people are aware about automated technology. More than 30% people are willing to go for automated car wash services and among them almost 18% of people are willing to prices more than 500.

Marketing Goals First marketing objective is to attract at least 5400 potential customers and ventures per annum.

Contracts with nine different firms who are operating in Sukkur and almost 500 vehicles will get service from our service station.

Achieve 70% of service awareness among the people of Sukkur in initial first year.

Build a trust with high quality relationship with clients by empowering employees.

Bring 20% of internet user of Sukkur on our website and social sites.

Capture brand awareness.

Marketing Objective:

As the basic and core objective of our business is to provide qualitative services at minimum time. We deal with problem of time consumption and putting you in queue for long hours during car wash. We are inaugurate this business for middle, upper middle class and for business sector as well because according to survey they have shown their concern towards such services and have decided to pay for it keeping in view the affordability (survey results are in appendix).

Marketing StrategyMarketing strategy is very important for our business. We can develop better marketing strategy if we exactly come to know how much our target market is. We will make our marketing strategy on the basis of pricing strategy, promotion strategy, and company location. We intend to make our marketing department our strength and gain competitive edge on this too.

Pricing Strategy:

By focusing on cost leadership strategy, Cartivo will reduce its cost at the minimum level so that they can charge relatively low prices as compare to their competitors. We will charge Rs. 400 for per car service. We are also focusing on to provide certain packages to our regular customers and those packages will be on the basis of car service on weekly and monthly basis. We will have a separate price structure for the companies who will be in contract with us.

Our Competitor’s prices:

Type of unit Per unit chargesCar PKR: 500Prado & land cruiser PKR: 500/ 550Van PKR: 600

Our Prices:

Type of unit Per unit chargesCar PKR: 400Prado & land cruiser PKR: 400Van PKR: 400/450

Place/Location of Service Station:

CARTIVO has decided to be established at the best location at Sindh society Air port road Sukkur this location has many advantages. We can provide our services easily because the area is too wide and infrastructure and road map of this area is good as compare to other areas. It also creates our image because the area is famous for the offices. It can be very convenient to the customers.

Promotion Strategy:

Our promotional activity aims to bring most of customers at our service station who are deprived of quality services.

Advertising and Media Selection:

We have come up with the advertising plan which is focusing on local people first. It is not a massive advertising plan because the type of S e r v i c e we are dealing in is self-explanatory; it will attract customers once the word has been spread. And for spreading the word we would indulge in following advertising media.

Electronic (TV Channels, Local Cable & Radio ): TVCs appeal all the senses via creative audio video content; we will develop TVCs and run those programs. Local Cable having a wide spread across different geographies will also be utilized to run the TVCs. Radio spots will be developed to run on regional as well as local radio channels (HUM FM, City FM, Radio FM)

Print Media (Newspaper and Magazines): Print ads include media such as weekend magazines daily newspaper, Billboards, insert-ins in newspapers and pamphlets.

Online (Social Networking Sites): It is inexpensive and it has large impact on the lives of people. According to survey and researches, people have started to focus more on internet and social media than sitting in front of televisions. The exposition of TVCs has drastically decreased in recent past few years due to growth of social networking. People are inclined more towards internet, thus it is an effective medium to deliver the message across the audience.

We have developed our own website to promote our business, for online booking (where customers can easily contact us from their homes), can get updates and also can suggest us for future services through their feedback. This is our website link:

http://cartivowash.webs.com/

We also have developed face book page for our business to target the customers who are on face book as well and it will help us to change the perception of targeted audience about the automated services at minimum time period because according to our survey most of our customers were doubting services within 10 to 12 minutes so for their satisfaction we have uploaded videos to change their perception and for further information about automated services.

Direct Marketing:

This medium gives life to any business. We will indulge in direct communication with different businesses operating in Sukkur and nearby areas banks most regular customers.

Sales Promotion:

We have positioned our service as a symbol of quality and prestige, therefore we would not indulge in price and discount offers for the first few year of operations. For later stages there may be fluctuation in pricing strategy depends upon situation and competition.

We will promote our services in universities where different students and other employees of different regions are there. It is because educated person can better understand the advantages and quality difference of such type of Services, and then s/he can tell his/her parents to avail such facilities.

We will also do advertise our business by fliers and catalogues. We will keep the contact number of every customer so that we can ask them about the performance of our services time to time. This will help in critical feedback and for the retention of our target customer.

Public Relations:

Press Releases:

Mutual relationship with the press media plays a vital role in creating positive word of mouth. We will develop and sustain our relationships with the press by inviting them to be our guests while we will inaugurate our services.

Corporate Social Responsibility (CSR):

As a socially responsible firm we will support the society by introducing services which are favorable to environment. We will try to reduce wastage of water as it is scarce resource because it is thorough pipeline system not drilled through land especially in Sukkur and we will try to create jobs for people of Sukkur.

Physical Evidence:

Physical evidence for our Service will be machinery which we are going to import from Australia and outlook of service station. Prototype of our services will be displayed outside of service station.

Process:

A touch less car wash is one of the new advancement in the car wash industry. The Older machines with large brushes and hand wash systems have known to cause damage to the paint of your car; here is its whole process:

The touch less car wash equipment first must wet your car since you can’t apply soap on a dry, dirty vehicle. The system will move around the car with low pressure nozzles. Special car wash soap is then applied to the car. The system passes by all parts of the car, and sprays the soap all over. It can soak in while it is finishing the soaping of other parts of the car. The nozzles then turn into high pressure power washers, which will clean the soap off the car. This will get everything off the car, and could even be repeated in longer wash cycles. After this is done, the touch less car wash can then put wax on, clean the tires with special cleaners, or other options. It is then time to dry your car, which is done with high pressure air blowers. These are great because they will not create water spots that can occur when drying. These systems are very accurate, and have sped up car washes, being able to do many more per hour than when done with human help.

Marketing Campaign

Marketing Budget Marketing Budget:

75%

20%

5%

Budget AllocationAdvertising (Electronic, Print, Brand activation, outdoor, online)Sales PromotionPublic Relation

Marketing Channel

Advertising:

Total % of Budget

Electronic 30Print 20Brand Activation 10Outdoor 10Online 5

Sales Promotion:

Sales Force Incentive Plan 10

Retailer Incentive Plan 10

Public Relations:

Corporate social responsibility 2.5

Press Release 2.5

Sales Forecast

Operational Plan Value Proposition:

This plan helps us to determine what sort of operational activities (Primary activities) will be performed by our business. These tasks help to build image in the eyes of customers.Cartivo is unique in terms to provide such fast and efficient services to our customers who have short span of time as compared to our existing competitors.

Value chain model:

Inbound Activities:This part include purchasing of imported machinery and the service plant from Australia, purchase of inventory to perform our functions of washing cars so we need detergents, small machinery, lubricants etc and to communicate with our key suppliers to provide services efficiently and effectively to satisfy customers.

Operations: Operations include whole process of car cleaning, managing inventory, records of online orders and time management of customer’s turn and other related tasks.

Outbound Activities:

We will provide faster services to our customers at our service station along with additional services such as Mobil oil changes, polishing, waxing etc with online registration as well as manually.

Online ordering is option for those people who have very busy schedules and don’t have time for their car wash they can register their vehicle number and timing of arrival to get services. While for regular customers and firms there are certain packages and advantages to encourage them and to maintain good relations with them.

Supporting Activities: Supporting activities help us to create competitive advantage against competitors to build an image of our business which is:

Imported technology:

Our automated car wash machinery will make our services faster and efficient and will save labour’s efforts. We will call technicians from foreign in order to maintain and repair of our machinery. We will always try to make sure that our plant is in working condition so that we can avoid any interruption in future.

Human Resource Management:

Because we are at initial stage of our business we are going to hire 2 workers, 1 computer and 1 guard. We will recruit the employee through referrals and we will hire the more efficient

employees for our business. We will provide them trainings if they require and will motivate them to increase the efficiency.

Procurement:

We will purchase the raw material from local markets in bulk quantities which will cost us relatively low, there will be no fixed suppliers of raw material for our business.

Infrastructure:

Our infrastructure would be quite convenient for the customer. The cartivo is going to open its service station on the airport road Sukkur because more vehicles are available in this area. We will implant two machines on our service station and for that reason we require two rooms and in order to make our customers prevent from disturbance and irritation, we will have a waiting room.

Setup Resources:

We need to register our business and this is not much complex process to registered, so for registration we have estimated the cost of 120,000 rupees, as our business is legal having less safety issues and will not affect on the health of general public. For electricity setup we have estimated the cost of 100,000 plus backup plan for generators while considering the issues of load shedding at Sukkur and will make sure that the safety for our employees should not be compromised at any point.

Personnel:

Guards:

We will need two guards for the shop one for morning duties another for evening because of the security issue. We will not take any risk will provide maximum safety to the business as much as can be possible.

Electrician:

We will hire an electrician who will deal with the small shortcomings of the machinery, circuits and problem with start up of the machinery. He will be our full time employee.

Caretaker:

We will hire a caretaker for the shop who will turn the equipments on and off and will keep the shop neat and clean. And he will also turn the generator on when electricity is not available.

Business transaction process

On the first day of our business the company will be in its transition phase where the customers will get aware of the new service in the region.

The transaction will start from:

key

PARTNER

There will be four key partners of the business with equal partnership share. That will be 25% for each partner.

SUPPLIER

The key supplier of the company will be from Australia. we will import machinery from there. And secondly for other raw material like;

Lubricants Paints Detergents polish and wax

We will talk to retailers and they will be our key suppliers of our that raw material.

ACTIVITIES:

Our key activities will be

Providing best Cleaning service

Toning cars Managing token Taking care of

sequence of tokens Check and balance

of foot count (turnover), revenue and profit.

Ordering raw material timely.

Above all our key activity will be providing best out of best service to the costumers .

1

Customer willing to get car wash service

2Customer has two options to avail services

1) Online booking

2) Getting token by hand

Getting number and time from chosen options

3

4

Getting car washed in 10 minutes. Paying fees and giving feedback by buying behaviour

5Collecting fees and recording revenue in financial statements.

Management Plan Organizational Structure

Management Team

Managing director:

The managing director of Cartivo will be zeeshan Ali. He is doing his BBA from IBA and possesses great leadership skills; he manages things in a very fabulous way. He is one of the partners of cartivo having 25% share in the business. He is the potential officer of the business he will look into every operational and strategic task of the business. Will take strategic decisions along with other three partners and with consent of all partners will make major decisions.

Operational manager :

the operational manager of Cartivo is Shama parveen baloch, she is doing BBA in HRM from IBA. She posses brilliant skills of managing operations and dealing with the people. She is suitable for the job owing to her great grip over managing resources and people. She is also the partner of Cartivo having 25% of the share in the business.

Accounts officer:

The accounts officer of Cartivo is Bakhtawar Shaikh she is doing BBA in finance from IBA. She is very good in managing accounts and making financial reports of the business. She is also the partner of Cartivo having 25% of the share in the business.

Marketing manager:

Managing director

Accounts officer

Marketing manager Operational manager

the marketing manager of the cartivo is Mohammad Saifullah. Having 25% of the share in the business and having extraordinary marketing skills. He is good at promoting business and creating potential customers of the business. His nature and traits are perfectly suitable for the job owing to his skills we have selected him as the marketing manager of the business.

Executive board:

The executive board of the cartivo will be consisited of the four partners mentioned earlier. They all will take major decisions of the business. They will deal with the all type of requirements of the business, the operational tasks, and strategic decisions. They all are the backbone of the business. and are responsible for long term and short term decisions.

Financial Plan

Start-Up Costs and CapitalizationCost

MachinaryCar Wash Machine 210000

0256000

0Accesorries 80000Furniture and Fixture 80000Generator 300000Cash and Cash Equivalent

300000

Cash in Hand 140000300000

0

Projected Income StatementsYear-01 Year2 Year3

Revenue 3740000 4114000 4731100Cost Of Goods SoldTotal Cost 1124101.56 1236511.716 1421988.473

Gross Profit 2625912.28 2877488 3309112

General Admionistration Expense

Rent 360000 360000 360000Promotional Expense 369996 369996 369996Sallaries Expense 312000 312000 312000

Depriciation 70668 70668 70668Miscallenious Expense 12000 12000 12000Electricity, Telephone, Fuel 1200000 1200000 1200000

Machine Maitainance 24000 24000 24000

Total 2348664 2348664 2348664EBIT 277248 528824.28 960447.53

Interest Expense on Long-Term Loan

260000 260000 260000

EBT 17248 268824.284 700447.5266Tax 8317.4484 15864.72852 28813.4258Gain and Loss on Equipment -8916 24000 48000Net Income 15 228959.56 623634.1

Projected Cash Flow Statements Year 1 Year 2 Year 3

sales 3740000 4114000 4731100

General Admionistration ExpenseRent 360000 360000 360000Promotional Expense 369996 369996 369996Sallaries Expense 312000 312000 312000Miscallenious Expense 12000 12000 12000Electricity, Telephone, Fuel 1200000 1200000 1200000interest expense 260000 260000 260000interest expense 260000 260000 260000tax expense 8317 15865 28813total expense 2253996 2253996 2253996

nat cash flow from operations 1486004 1860004 2477104

investing activites:cash paid for:

purchase of property and equipment

-2489333 -2489333 -2489333

net cash from investing activities

-2489333 -2489333 -2489333

FINANCING ACTIVITIES:cash receipt from:equity 2000000

loan 2000000 0 0 cash paid for:net cash from financing activities

4000000 0 0

Total cash obtained from all activities

2996671 -629329 -12229

net decrease/increase in cashbegning cash 2996671 2367342net cash at Dec 31 2996671 2367342 2355113

Pro-forma Balance Sheet

  2018

2017 2016

1 3 4 5ASSETS 2489333 2489333 2489333Non-current assetsProperty, plant and equipmentAccumulated Depreciation

212004 141336 70668

Non-current assets: 2277329 2347997 2418665

Current assets 2355113 2367342 2996671Cash and cash 2355113 2367342 2996671

equivalentsCurrent assetsASSETS 4632442 4715339 5415336EQUITY 2000000 2000000 2000000retained earning 623634.1008 228959.5555 15Equity 2623634.101 2228959.555 2000015

Liabilities      Current liabilities 0    Loan 2000000 2000000 2000000

EQUITY AND LIABILITIES

4623634.101 4228959.555 4000015

Break Even Analysis

Contingency Plan

Conclusion Reemphasize on the importance of your business idea and appeal to investors & creditors once more on why they should give you money? What makes you special? This part is to build TRUST.

Appendixes Appendix (A) – Market Survey Results

Appendix (B) – Marketing Material

Appendix (C) – Pro-Forma Financial Statements