Mad Keen Motors

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Executive SummaryMad Keen Motors is a family-owned business located in Backwater Downs, a suburb of London. It has been under the ownership of the Keen family for 35 years and has grown from a single mechanical repair shop to five locations that deal with body and mechanical repairs, vehicle storage and towing, washing and valuating and used car sales. This plan is an internal document, outlining the effects on the company of adding a website. The Mad Keen Motors website will act as an additional customer service element for all our garages, offering basic advice on car maintenance, information about our services, staff, and location, and regular discount offers for website visitors on featured repairs and maintenance. Our current phone-based and face-to-face customer service is excellent, but requires that potential customers make active contact with the company to learn about us. Most of our new business comes from referrals from current satisfied customers. We hope to make the referral process easier, by encouraging existing customers to point out our website to their friends, colleagues, neighbors and family members, building familiarity with our company long before they need emergency car care or consider buying another car. The "advice" section will be crucial in establishing customers' trust in our expertise, as will our affiliation with nationally-syndicated car experts. By helping local customers help themselves, Mad Keen hopes to build trust and relationships with existing and potential customers. 1.1 Mission Mad Keen Motors provides excellent automotive care and service to all of our customers, whether they need to buy a used car, contract major body work or get a simple wash and wax. 1.2 Keys to Success The keys to success for the company's website will be: 1. Compiling an extensive and thorough listing of questions and answers that will encourage customers to return to the site whenever they have a problem with their cars. 2. Providing additional expert advice for answers that customers don't find in the base list of questions in a timely and thorough manner. 3. Offering Web-based promotions that will encourage customers to book cars into the garage through the website. 4. Communicating the site's existence to the businesses and residents within the local area. 5. Getting existing customers to recommend the website to others. 1.3 Objectives The objectives of the Mad Keen Motors website are: 1. To drive traffic from the website to the garage. 2. To expand the community of Mad Keen Motors customers. 3. To provide customers with a substantial list of questions and answers regarding typical car repairs. 4. To allow convenient bookings for service and repairs.

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Company SummaryMad Keen Motors is a family-owned business located in Backwater Downs, a suburb of London. It has been under the ownership of the Keen family for 35 years and has grown from a single mechanical repair shop to five locations that deal with body and mechanical repairs, vehicle storage and towing, washing and valuating and used car sales. 2.1 Company History Mad Keen Motors has done very well. Annual net profits have exceeded 30,000 for the last two years. We decreased the marketing budget last year, which led to a small decline in sales. By directing the missing amount (and a bit more) towards the creation of a website, we hope to increase overall sales and net profits. The table shows only last year's performance.

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Past Performance Sales Gross Margin Gross Margin % Operating Expenses Inventory Turnover Balance Sheet Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities (interest free) Total Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Capital and Liabilities Other Inputs Payment Days FY 2003 0 0 0.00% 0 0.00 FY 2003 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 FY 2004 0 0 0.00% 0 0.00 FY 2004 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 FY 2005 798,000 767,853 96.22% 695,820 5.01 FY 2005 203,488 12,040 70,000 285,528 1,250,000 15,000 1,235,000 1,520,528 20,000 0 0 20,000 750,000 770,000 400,000 314,488 36,040 750,528 1,520,528 30

Products and ServicesMad Keen Motors offers body and mechanical repairs, vehicle storage and towing, washing and valuating and used car sales.

Market Analysis SummaryMad Keen will target the following market segments with its website: 1. New car owners 2. Older luxury car owners 3. Sports car owners 4. Lifetime owners 5. Buyers 4.1 Market Segmentation Mad Keen Motors segments its customers by type of car ownership. We believe that the type of car that a person owns says volumes about their driving and therefore their garage requirements. 1. New car owners: owners of newer cars are likely not to use the company's garage repair service. If they do have problems with their car, they will return to the dealer where they bought it. These owners, though, will take great pride in their cars and will bring them often to the wash and valet service. The goal with these customers is to promote regular use of the wash and valet service. Eventually, as their warranty runs out, the goal will be to sell them on the efficiency, excellent service and price competitiveness of Mad Keen Motors' repair services.

2. Older luxury car owners: people who have either owned their high-end luxury cars for some years, or are unable to afford the expense of a brand new luxury car but want the feel of relaxed driving. Both of these groups want to keep their cars in the best shape possible. Those who have bought second-hand cars will often spend many hours in their cars and will place much importance on reliability. These owners will bring their cars in for regular services and occasional valets.

3. Sports car owners: people who are younger or middle-aged men, and will regard performance as important. They will also pride themselves on the look of their car and if involved in a minor scrape will have the body repaired very quickly, since looks are also important. These people will have regular service and tune-ups on their cars.

4. Lifetime owners: many of these people have owned their cars for more than five or six years. They are more likely to be women. They are attached to their cars as friends and though it may be more sensible for them to purchase a new car, they will continue to have repairs done on their "old faithful."

5. Buyers: the site will provide links to information on new and used car prices and include tips on what to look for when buying a car.

Market Analysis2005 Potential Growth Customers New Car 2% Owners Sports Car 5% Owner Older 10% luxury car owner Lifetime 2% Owners Used Car 12% Buyers Total 5.40% Need real financials? 2006 2007 2008 2009 CAGR 52,000 25,000 30,000 53,040 26,250 33,000 54,101 27,563 36,300 55,183 28,941 39,930 56,287 30,388 43,923 2.00% 5.00% 10.00%

80,000 40,000

81,600 44,800

83,232 50,176

84,897 56,197

86,595 62,941

2.00% 12.00%

227,000 238,690 251,372 265,148 280,134 5.40%

We recommend using Business Plan Pro as the easiest way to create automatic financials for your own business plan. 4.2 Target Market Segment Strategy Aside from the washing and valet services, we are currently targeting owners of older cars or cars in need of much maintenance, since that will provide us the greatest revenue.

4.3 Service Business Analysis The garage repair business as a whole is fragmented. There are a few major dealerships in each area, with a larger number of small garage repair shops, like Mad Keen Motors. Dealers target customers who buy new and used cars from them. Small garages rely on word of mouth and get most new customers because of emergency car care needs. 4.3.1 Competition and Buying Patterns Word of mouth is important in the car repair business, since people are very wary of garages, due to their lack of knowledge of cars and engines. Mad Keen Motors leads the local competition in regards to word of mouth, having been in business for over three decades under the same ownership. Competition from dealerships is becoming stiffer. Car design is becoming more and more specialized, as car manufacturers aim to encourage owners of their vehicles to have services carried out at their franchised dealerships. However, small garages like Mad Keen have a price advantage over dealership, usually charging 50-70% less per hour for repair work.

Strategy and Implementation SummaryThe marketing budget for this website is limited, so we will be relying on grassroots and viral marketing to spread the word about the site. In addition, the narrow geographical focus of the business does not necessitate large scale advertising and marketing support. We will focus on communicating with neighbors, nearby businesses, and existing customers to get the word out about the new website. 5.1 Competitive Edge The website's competitive edge is that it: 1. Provides a local service for Backwater Downs car owners and wannabe car owners; 2. Has the benefit of over 60 years of automobile repair experience to draw from; 3. Provides an additional mode of communication for customers. In addition, the website itself will be a competitive edge for the company as a whole, opening up new methods of communicating with our customers and potential customers, and making bookings and customer service faster and more convenient. 5.2 Marketing Strategy Each of the car-owning groups identif