Free Essay

Car Wash Plant

In: Business and Management

Submitted By asifalamin
Words 4594
Pages 19
1. Prologue:

The business plan on Auto Base car wash™ is an automatic car washing company has been prepared for Mr.Mohammad A. Arafat, Course instructor of Strategic Management as a partial requirement of the course. Real life does not go all the time like the theories and practical world is very critical and diverse. To understand the theoretical aspects of a subject one must understand the practical situation, problems, policies and implications of the theories. So the researchers were asked by the respected Course instructor to prepare a report in the very first class of this semester. Course instructor assigned this report understand what are the policy, procedure and steps that is to be taken to establish a new company which will offer a new innovative product or service. This report emphasizes on preparing a business plan, which is the outcome of an integrated process of making future plan for managing different organizational functions.

In order to prepare this business plan it was necessary to survey several other companies or service centers which are of relevant field, and to know their policy and procedure. There are some organizations in abroad, which are very popular in this field. So, the researchers decided to survey these service centers to prepare the business plan on The Auto base car washer™ automatic car washing company. Researchers have tried to prepare this business plan in such a way that it reflects the total procedures of business description, marketing, manufacturing, ownership, management, service, potential risk, financial analysis etc.

Researchers have tried to prepare a business plan in such a way that it reflects the total process of establishing a new company that is Auto base car washer ™ automatic car washing company which will offer a new and innovative service of automatic car washing.






The objective of the business plan is to involve the researchers in practical situation about how a company is established. This business plan provides a clear view about how to start, select and run a business successfully. Practical life and practical situation is far different from the textbook or theory. There can be many unexpected situations. In this situation the textbook is not enough for gaining a clear idea about the new business establishment process. The Primary objective is to know the policy, procedure, necessity and activities of establishing a new company.

The primary objective of this business plan is to analyze the real situation and process of establishing a new business. This business plan will also furnish the opportunity to prepare a real business report that will help the researchers to make reports in future for other companies. Each of the segments has been stated in a manner that will be sufficient to have an idea about the Auto Base car washer™ automatic car washing company

Scope of the report

The business plan of The Auto Base car washer™ automatic car washing company has been prepared for Mr. Mohammad A. Arafat(Course instructor of Strategic Management, MGT-490) as a partial requirement of the course. So the report mainly provides information about how to start select and run new business that will provide a service that is innovative. It provides-

Development of new business opportunity:

* Evaluating and realizing which business should be chosen. * Researching the market to know about the prospect of the selected business. * Developing a good business plan. * Information about business goal, marketing plan, production plan, financial plan. * Sales forecasting of the company.

. Business description segment:

The company

General description of the industry:
The world is changing day by day. Modern technologies are coming close to people’s life more quickly and easily. People are getting more and busier. In the recent days car is not thought as a luxury item. In this busy life a car is a necessary item of life. In last 10 years, the population of cars has increased many folds. So, the Car Wash industry has grown rapidly. In today’s context the owners themselves drive most cars and would any day prefer to have a quick car wash, rather than leaving the car the whole day at service station. It is not convenient for them to leave the car for a whole day to wash the car.
So, rather than the ordinary hand wash, it is necessary to find a way to wash the car by a sophisticated high impact pressure jet wash technology. Owning and running a car wash these days, is not just a mere business but, it is one of the most lucrative and respected business.

What is automatic car wash (Description of the service):
Automatic car wash is the modern way in which the cars are not washed by hands. In this new technology the cars are washed by a sophisticated high impact pressure jet wash technology.

Company Name and logo

The Auto Base car Washer™ (Description of the firm):
The Auto Base car washer™ automatic car washing co will be a new business opportunity in Bangladesh. This modern technology of car wash will provide the car owners a car wash for which they will not need to whit a long time. The Auto Base car washer™ automatic car washing co will wash a car within a few minutes. It will use latest proven and successful technology in washing vehicles. It is a so fast process that the owner or drivers need not to leave the car. They can just wait ten minutes and take the delivery of a fresh and clean car. In this process nobody will use hand to wash the car. The total process is automated and the machines will do the duty of cleaning instead of the hands of the car washing people.
At present, we are Bangladesh based service provider of car wash. We have also developed a new two wheeler wash system, which can accommodate all types of two wheeler vehicles. Our equipments use high-pressure water for cleaning. We also use friction / brush type of equipments with specially made soft brushes that don’t scratch our customer’s car paint.

Situation Analysis

The Vision is to be a pioneer in car wash domain. To provide quality service, use quality equipment and value for customer.

* Not to have a single dissatisfied customer. * Expand to two more location after three years. * Create a steadily growing net profit margin. * Quality service by experts. * Timely and accurate service * Eco- friendly service.


* Car Wash Express is dedicated to providing the highest quality service and value to our customers.

* We accomplish this by employing high quality personnel, implementing comprehensive training programs and safely maintaining the appearance of our customers’ vehicle.

* We strive for perfection, best in class customer service, security and safety, providing our customers with the Bangladesh’s premier car wash and car detailing experience.

Company’s objective:

* To be viewed as a premium car wash and detail service in Bangladesh. * Maintain a very high gross profit margin. * Maintain a modest, steadily growing net profit margin. * Expand to two locations after third year of operation.

Auto Base Car Wash located in Tejgaon link road (in front of Gulshan 1).

Total Market Size:

All the people who have a private car are our target market. As we are the only provider of this service in our country, we can have a monopoly market here. We are expecting to have approximately 8000-9000 taka revenue per day from our washing plant. There is 60% of new car owner, 32% of old luxury car owners and 8% of sports car owners are our main target market.

SWOT analysis:
* It uses latest, proven and successful technology. * It is a contact less or touches free system. * It uses internationally available and reliable components. * It requires a very little time. * It gives the car a shiny and new look. Weakness: * This is not a well-known process yet. * This process is little bit costly than hand wash. * There is only one washing zone. Many cars may find it distant from its way. Opportunity: * There is a scope for expansion of new branches. * As it is a technology-based age, this process might become more popular. * In this new technological time people might find the hand washing system obsolete very soon and realize the automatic car wash only solution.

Threat: * People might not take this new change very soon and they might prefer to go to the hand wash system. * It might be very costly to make people aware of this new opportunity. * Many new companies might find it profitable and enter into the business.

Market area:
At first we had to survey and collect data to select the market area. We have surveyed in different places and different people. We took their opinion about when and where they want the service. We have asked the Municipal Corporation of our city, if they are planning to start some project which may affect the car population in our business locality in near future (Building of fly over, by - pass, etc.). At last we have decided that we will establish our Auto Base car washer™ automatic car washing company on Gulshan Area. Because it a main road. Owners of private cars, which are our clients, will be available in this road very much.
This place is also near to other area of the city. We all know that the people living in these areas are almost all rich and have a standard lifestyle. So, they can afford and they will be willing to get our service for their private cars.

Age Based Segmentation

Age Based Segmentation:

There are different age groups in the total market. As we can see from the chat it’s the total over view of the market. But we should not go for every age group. We are selecting 25-44 years and 45-65 years groups segment for our business because we are thinking they will be more profitable for our business.

Income Based Segmentation

Income Based Segmentation:

Whose monthly income-ranges are between Taka 51000 to above 1,00,000 are more in numbers among the target market groups. The company needs to cater products according to the demands of these segments.

Occupation Based Segmentation

Occupation Based Segmentation:

Dhaka being the capital city, there being more businessmen among the target market, this is very important to consider that their buying habit is somewhat different from that of normal service holders. We are also targeting Executives and the professional and technical people.

Target Market:

1. New car owners: Owners of newer cars are most likely to use a hand car washing service. These owners take great pride in their cars and will bring them often to the wash and detail service. The goal with these customers is to promote regular use of the wash and detail service. The aim is to inform these customers that Soapy Rides will keep their car looking as good as it did the day they drove it off the lot.

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

3. Sports car owners: These people are often younger or middle-aged men and will regard the look of their car as important. They will also pride themselves on the look of their car and will have their car hand washed (at least) weekly. These drivers will have an occasional detail, but will keep their cars so clean the detail will not be necessary very often.

4. Lifetime owners: Many of these people have owned their cars for more than ten to fifteen years and they are attached to their cars as friends and though it may be more sensible for them to purchase a new car, they will bring their car in for a wash occasionally, just when the car is dirty. They like their cars to look presentable, and want to keep it in good shape but are not tied up in the look of their car. For this reason, they will not have a detail carried out on their car unless they are selling it.

Auto base Car wash VS Competitors Benefits | Auto Base Car wash | Badsha meah Petrol pump CW | NavanaCar Wash | QC petro pump’s car wash | SouthernCar wash | Time | 5/5 | 2/5 | 3/5 | 3/5 | 4/5 | Cleanness | 5/5 | 3.5/5 | 3.5/5 | 3/5 | 2.5/5 | Shiny | 4/5 | 3/5 | 3.5/5 | 2.5/5 | 2.5/5 | Parking lot | 7-9 cars | 3 cars | 4-5 cars | 3-4 cars | 3-4 cars |

Positioning Map:

From the positioning map we can see that Badsha meah petol pump got -7 in timing and 1 in clean a shinny car wash. On the other side QC petrol pump got -3 in timing and -2 on clean and shinny wash. Navana got the closer position to our company they have got 4.5 in shinny and clean wash and -2.5 in timeliness. Another car wash southern car wash got -3.5 in shinny and 3.5 in timeliness. In this positioning map our company Auto Base Car wash got 7.5 in clean and shinny car wash and got 7 in timeliness.

Positioning Statement:
To time conscious and brand conscious people, who are very busy, Auto Base Car Wash gives them an opportunity to save their valuable time, it is not always possible to wash the whole car properly & that may be cause damage of some parts of the car. But Auto Base Car wash relieve you from such a kind of problem by washing the car properly within a minute.

Value Proposition:
Takes only 10 minute to wash your car:
Its only takes 10 minutes to wash your car (if you don’t have to wait in queues). You have to go through the washing base and come out with the end of the tunnel and this process will take only 10 minutes.
Latest technology to wash your car:
We will provide sophisticated high impact pressure jet wash technology in our washing base.
Touch free wash:
There will be no touch of hand while the car will go through the washing base.
Clean and shiny:
The car looks more shinny and clean after wash because its go through a washing tunnel where high pressured water clean all the dirt’s and its human touch free wash, that’s why the car look more clean and shinny.

Marketing strategy
Advertising and Promotion:
For advertising we have to use several media. Because it’s a new business in our country and people are not aware of this service yet. So we have to advertise more to make them aware of this new opportunity of car wash. The process of our advertising is given below. * We will advertise on television. * We will advertise on newspapers. * We will send leaflets to the transport companies, so that they could be interested in our service. * We will advertise on the billboards.

1st Year’s Objective: * First 6 month objective is creating brand awareness. * Rest 6 Month focus on sales. 2nd Year’s Objective:
Increase sells, increase customer loyalty and increase market share.

3rd Years Objective
Focus on increasing sells and try to get the breakeven point of the business.

Strategy Pyramids: * first create customer awareness, develop a customer base * The second method will be networking. * Third method will be work toward to building customer loyalty.

Marketing Mix:

Product: * Brand Name:
Auto Base Car Wash. * Quality:
Wash your car with in 10 minute * Design:
Sophisticated high impact pressure jet wash technology. * Varity: * Basic car wash (Exterior+ interior) * Basic car wash with wax * Deluxe car wash (interior + Exterior + Waxing + vacuum cleaning +tire clean+ engine cleaning)

Price: Pricing strategy: Our pricing strategy will be competitive price. List Price:
400 taka for Basic car wash (Exterior+ interior)
700 taka for Basic car wash with wax
1000 taka for Deluxe car wash (interior + Exterior + Waxing + vacuum cleaning +tire clean+ engine cleaning

Gulshan area, Dhaka
City Area of Dhaka..

Location analysis * Land Selection * Basis of evaluation of the land * Selected Land (Tejgaon Area)

- Shape and space | * Rectangular * Enough space for Customer Car parking and any future projects if desired. | Frontage | * No physical obstructions like electric or telephone poles, guy wires, etc. * Easy turning of car into the land, which out much guiding hassles | - Street Characteristics | * Busy Street * Turning, corner plot * No Exit restrictions (One Way etc.) * The site on the side by which the majority of the drivers pass on their way home. * Near a traffic signal * Near a Shopping Mall, Cinema Theatre, Gas Station, Car Service Station, Public Place, etc. |

We will provide our ads on NTV, RTV, Desh TV in between news hours and also talk shows.
Our car wash is based on Chittagong city so we should focus on some local news papers like The dainik purbokon, the Azadi. We will provide ad on national news papers as well like The prothom alo, The daily star.
FM Radio:
Radio is one of the mass media of communication. So we will provide some ads on fm radio’s too.
We can connect to the people by facebook or twitter.
We will provide some billboard ads on GEC, Agrabad, Near Chittagong port.
Leaflets to transport companies:
We will also send some leaflets to some transportation company like KK automobiles, HNS, Ample Automobiles, Blue Bonnets etc.

Hiring people:
We need to appoint some people for maintaining our wash plant. We need some people for accounts department, and also need some engineers for maintaining the wash bay.
Training people: We will train them how to operate the wash base, how to maintain it properly


The Auto Base car washer™ automatic car washing co would be structure with the articles of partnership. All the directors would have equal shares. The features of the company’s ownership are the following:

* Industry would be created with the article of partnership * The talent of the partners helps the business to grow * The business and contracts of the partners have flexibility * More capital in the industry * Helps to develop cooperation and natural trust * There will be unlimited liability on each partner * Danger of disagreement is there

Process: 1. Collect the token by paying on counter: First the customer has to pay on the counter and need to take the token from the counter.

2. Wait in Queue: If the wash base is busy then the customer has to wait in parking lot. They can wait also in waiting lounge or can have come coffee from our cafeteria.

3. Go to the washing tunnel: If the washing tunnel is free then the tunnel guide will call you to drive through the washing bay.

4. Slowly drive through it: After that the driver has to drive through the wash bay slowly. In that time car will be washing with the high impact pressure jet wash technology in our washing base.

5. Finally come out through the end of the tunnel: After ending the process you have to come out through the end of the tunnel.

6. Check the car: The customer will check the car that is it washed well on not.

7. Finally take the delivery: after checking the car the customer will take the delivery the car.

The process of the service will be very simple. The cars will enter into the machine, and water will be sprayed. After that the machine will wash the car with necessary washing solutions and detergents. Then the car will be washed again by water. Finally the car will be dried by hot air and the car will come out, neat and clean. Automatic high-pressure car wash:
The Auto Base Car washer™ automatic car washing co has a fully automatic system. It has a three step washing sequence. The first pass is high-pressure pre- wash which has wetting chemicals to wet dirt on car surface. The second pass is soap application process by special nozzles. The third pass is high-pressure rinse, which removes all the dirt, off the car surface. The horizontal water nozzles bank follows the contour of the vehicle. A high-pressure plunger pump assists the main washing arch for cleaning the tire and rocker panels.

Pre wash arch:
This is special spray arch, equipped with low discharge, wide coverage nozzles. The pre wash arch sprays water initially over the vehicle to soak the hard mud stains, salt deposits, bird drippings etc.
Soap system:

Soap system sprays soap and chemical formulation over the car surface. Soap spraying assists the high-pressure washing and enhances the cleaning value.

Contour Following Nozzles:
The horizontal bank of nozzles follows the contour of the car, whichever it is. The horizontal bank always maintains, safe 300 mm distance away from the car surface. The water jets always adjust their angle according to the vehicle, i.e. at beginning; the jets face the bonnet and the wind shield for better cleaning action and so on.

Wheel and rocker panel wash system:
Special high-pressure nozzles located at wheel level remove darts from hard to clean areas near the wheels. Special plunger pump, which enhances the pressure to knock off dirt from wheel and rocker panel areas.
Wax systems:
After the high pressure rinsing is over, wax is sprayed on the vehicle surface to give them a shiny finish. There are two types of wax systems- silicon wax system and triple foam wax system. Anyone can be provided as needed. * Silicon wax system:
Silicon wax is sprayed on the car surface. The silicon wax is sprayed all over the car using special atomizing nozzles, after the washing cycle. Although wax formulation gives instant shine and protection, in addition, it softens the hard rubber wipers and beading of the car. Secondly it is water repellant and hence avoids staining of glasses due to droplet formulation.

* Triple foam wax system:
Triple foam wax commonly known as tri wax, which contains three-colored wax, which is sprayed on the vehicle. The foam created on the vehicle surface gives a sense of satisfaction to the customer, for which he is paying for. The triple foam wax is sprayed by special foam generating nozzles. A high-pressure pass washes off the foam created on the vehicle surface.

Physical Evidence:
Site requirement:
Space for installation of equipment: * Bay length: 10 m (393.70”) * Bay width: 5 m (196.85”) * Bay height: 4 m (15748”) Space for control room: * Room length: 3 m * Room Width: 3 m * Room height: 2.5 m Electricity supply: 3 Phase 440 V A.C. 50 Hz. Water storage capacity: 5000 liters

Machinery and Equipment:
As it is a totally automated process, we will need many machines. The main machine will be the machine that will actually wash the cars. There will be needs for some other additional machines.

As Auto Base car washer™ automatic car washing co. is new and innovative industry in our country, yet we do not have any competitor exactly like us. But there are several petrol pumps, which are providing this service manually. These petrol pumps are our main competitors now.


Budget of auto base car wash:

FIXED COST | Land | =1,00,00,000/- taka | Machineries | =1,00,00,000/- taka | Employees Salary | =5,00,000/- Taka | Total Fixed Cost | =2,05,00,000/- taka |

Variable Cost | Water Bill | =9,00,000/- taka | Electricity Bill | =10,00,000/- taka | Operating Cost | =2,50,000/- taka | Promotional cost | =8,50,000/-taka | Total Variable Cost | =30,00,000/- taka |

Total Revenue (1st year) | Per day wash (50X400tk) | =20,000/- taka | Per Month wash (20000X30) | =6,00,000/- taka | Per year wash (6,00,000X12) | =72,00,000/- Taka | Total Revenue | =72,00,000/- Taka | Tax | =10,80,000/-taka | Total Revenue after tax | =61,20,000/- taka |

NET PROFIT (1st Year) | Total Revenue | =61,20,000/- taka | (-)Variable Cost | =30,00,000/- taka | (-)Depreciation of Machineries | =92,200/- Taka | (-)Bank loan interest | =2,14,200/-taka | NET PROFIT | =24,18,600/-taka |

Total Revenue (2rd year) | Per day wash (100X400tk) | =40,000/- taka | Per Month wash (40000X30) | =12,00,000/- taka | Per year wash (12,00,000X12) | =1,00,80,000/- Taka | Total Revenue | =1,44,00,000/- Taka | Tax | =21,60,000/-taka | Total Revenue after tax | =1,22,40,000/- taka | NET PROFIT (2rd Year) | Total Revenue | =1,22,40,000/- taka | (-)Variable Cost | =30,00,000/- taka | (-)Depreciation of Machineries | =1,83,600/- Taka | (-) Bank loan interest | =4,28,400/-taka | NET PROFIT | =86,28,000/-taka |

Total Revenue (3rd year) | Per day wash (150X400tk) | =60,000/- taka | Per Month wash (60000X30) | =18,00,000/- taka | Per year wash (18,00,000X12) | =2,16,00,000/- Taka | Total Revenue | =2,16,00,000/- Taka | Tax | =32,40,000/-taka | Total Revenue after tax | =1,83,60,000/- taka |

NET PROFIT (3rd Year) | Total Revenue | =1,83,60,000/- taka | (-)Variable Cost | =30,00,000/- taka | (-)Depreciation of Machineries | =2,75,400/- Taka | (-)Bank loan interest | =6,42,600/- taka | NET PROFIT | =1,44,42,000/-taka |

Breakeven point:
7. Critical Risks Segment

Potential Problems:

The potential problems for the industry are the following-

* Unknown field:
The main problem that we will face is the problem of lack of popularity. The automatic car washing is not very much popular by now. Many people even do not know what the automatic car wash is. So it will be difficult to make them aware of our service.

* Unstable Political situation and the affects:
The country of Bangladesh is not politically stable. There are often strikes. So it may cause risk for us.

* Unskilled work force:
At the initial stages the industry may not find proper skilled workers or even labors to operating purpose. It may cause some negative changes to the companies desired output.

* Entering the market:
The target group of customer for the company will be available from the local area. We expect that we will be able to reach the desired segments, but the volume that we have estimated for our service may not match initially. On the other hand, the other normal car washing companies will never let us have any advantage. So we have to be very careful and aware about the steps of the marketing.

* Transportation Problem:
Our country has got little stability on situations those goes around. The main transportation for the industry is the land transportation; our land transportations because of the labor unions related to this often faces strikes. This may cause us very harmful financial losses. To survive the competition our services needs to be accurate and proper, for the strike problems we may not be able to get customers within schedule time.

Though we have to face some problems to survive in the industry, we are hopeful that we will make profit and be the market leader in the industry.We has some flexibility to increase the revenue and decrease the cost. In the market position, our company has the technology strength and it can be the key factor for our success.

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