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Abstract

This research report examines the commercial possibilities for vehicle cleaning services in business parks. Because no other participant in this area exists, the thought is unique in and of itself. The goal is to provide carwash/wax/cleaning services at business park parking lots for those who drive their cars to work and park them there. Clients’ cars will be cleaned while they attend to their workplace tasks, providing them with convenience and saving them time. Initially, this notion was investigated by conducting a poll of potential customers. The excellent response to the survey resulted in a comparative examination of market circumstances. It is clear from the research that this company has a unique chance for an entrepreneur, and as a consequence, a complete business plan has been prepared, indicating that this endeavor has a very excellent earning potential.

Car wash, car cleaning, business plan, car market, car wash business strategy, new business plan Keywords: car wash, car cleaning, business plan, car market, car wash business strategy, new business plan

Summary of findings

The complete picture was designed to identify the potential businesses for car wash/wax/cleaning services in business parks. Because no other participant in this area exists, the notion is unique in and of itself. The locality and the competitive price are the strong points. The goal is to provide carwash/wax/cleaning services at the Business Park parking lot for those who regularly drive their car to work and park it there. Cars will be cleaned while customers attend to their job commitments, giving them a more convenient location and saving them time. The purpose of the survey was to learn about the buyers’ perceptions of this concept and their willingness to employ such services. The survey’s findings are positive, with over 85 percent of respondents expressing genuine gratitude. Following a positive reaction, a business graph has been created for the same.

According to industry research, the vehicle market in Mumbai is rising at an annual rate of 8.89 percent, which is a good indicator. Other elements, such as disposable income per capita, have been increasing at an annual rate of 8% in India, which is a positive indication. According to competitor analysis, there are no longer many participants in this area. And the dominant players in this industry are almost always foreign companies.

Overall, the business seems to be profitable, since there are many, and there are few participants in the market at this time.

Nirlon Knowledge Park in Goregaon East was formerly picked as a focal location because of its massive industrial building (approx. 22,00,000 sq. ft.) and 6000+ vehicle parking lot. All of these people who drive their car to work are the target demographic.

The value structure is thoroughly examined. According to the pricing structure, variable labor and electrical energy expenditures are rather significant, but they cannot be bargained. To attract sales, it was chosen to maintain costs just below those of competitors while establishing this company idea. During the first year, we expect to earn money from a 600-car yearly contract. After doing the numbers, it’s clear that this company can start making money in the second year and that earnings will continue to grow in the following years. The whole format may be translated into reality since it shows a large possibility in the near future.

Introduction to the concept

The main aim is to save customers valuable time and money by having “vehicle wash/ wax/cleaning options” available in their business park. The concept is to create car/wash/wax services in the parking lots of business enterprise parks where large numbers of automobiles (at least 1000) are parked every day.

Because this is a novel concept, an initial poll was conducted to see whether or not people are enthusiastic about it. The survey was formerly carried out to identify customer behavior as well as to see whether there was a market for such services. For this aim, 37 samples were obtained. The samples were exclusively taken in the Mumbai area. The following are the questions that were asked and the replies that were offered in response to them:

Vision

To provide car wash, wax, and cleaning services in every business park on the planet.

Mission

“A1 vehicle wash” is focused on providing a final automobile care experience to its customers by using all of its resources to include the cost to customers in every aspect of the business, resulting in customer satisfaction.

Objectives

To raise awareness of our commercial business park offerings.

In the first 12 months, 600 yearly contracts will be reaped.

Market Research

Current Market Situation

The market is still in its infancy. There are a few individual players that provide car wash/waxing services. The main difference is that they are all set up as a character save and present provider, either in their own garages or at the doorsteps of consumers. The following is a look at the profiles of some of the most important players.

Profiles of competitors

Price changes

The average price charged by these players, excluding taxes, has been examined in the table below.

Table of Charges
Comment

Exterior detailing costs a minimum of Rs 13,500 every year. For top-of-the-line SUVs, the cost may be as much as $25,000. With the help of 3M, the best possible cost is charged among fundamental participants. Other players charge similar or almost equal fees.

Industry Attractiveness

Comments:

  1. The sector as a whole seems enticing since there aren’t many companies available in the market and there is a need for such services.
  1. The number of providers available is enormous. Many suppliers, ranging from tiny units to major players, are available with a wide range of goods ranging in price from low to high and of various quality, making it possible to get raw fabric at a competitive price.
  1. The buyer’s power remains low since specialist services are no longer accessible for lots.
  1. The level of rivalry between firms is modest. This sector is dominated by a few worldwide behemoths. Indian small firms, on the other hand, are making an impact on this area. The franchising subculture has taken root in this industry, and many businesses are using it to become large. Inter-firm rivalry will become more fierce as a result of this.
  2. In terms of day-to-day contract laborers, substitutes are available, but they do not provide services as expertly as we do. Another option is for OEMs to provide such services. However, few people are willing to take the risk. According to the poll, consumers only use OEM products if they are offered ‘loyalty programmes,’ which result in lower costs; otherwise, they do not use them since they seem to be too expensive for humans to use on a daily basis. As a result, when all of these factors are considered, this business seems to be appealing.

 Analyzing the possibilities for expansion

The following are the current car market trends in Mumbai.

Mumbai’s vehicle distribution (body style)

Comments:

1. In Mumbai, passenger vehicles account for 14% of the total car phase. Hatchbacks account for around 50% of this class, while sedans account for 24%. The remaining debts account for 26% of the market.

2. Despite the fact that the luxury automobile industry in the United States is declining, the luxury vehicle market in India is still in its infancy and is expected to grow by 168 percent by 2018. One of the main reasons is India’s expanding buying power and increased per capita spending.

3. As of August 2014, the entire range of motors in Mumbai was $7.21 lakhs. In the previous seven years, it has grown by 56 percent. From 2014 to 2030, the total number of automobiles is expected to reach 22 lakhs, growing at a CAGR of 7.9%.

4. This condition is advantageous for the business since it will increase demand for auto/wash/wax services.

Analyze the location

As of 2014, Mumbai’s total commercial housing absorption was 87 million square feet. The following column summarizes some of the biggest corporate parks in Mumbai and their parking lot data.

Details about parking spaces at several of Mumbai’s business parks

Market to Be Targeted:

  1. Mumbai is located in the Mumbai Region.
  1. Nirlon Knowledge Park is located in Goregaon East, Mumbai.
  1. People that drive to work in their cars are the target demographic.
  1. More than 600,000 lakhs per year in income
  1. 30 years and older age group

Strategy for marketing:

Strategy for pricing:

Analysis of costs – Fixed costs:

  1. Rs.50,000 for first registration and other legal requirements (one time cost)
  1. Rs 15, 00,000 for office setup (one time cost)
  1. Equipment for car washes (including washers, vacuum cleaners, and their accessories) costs Rs 30,000. (average life 4 years)
  1. 20,000 rupees for wax, shampoo, textiles, and other basic materials (bulk quantity purchase for 3 years)
  1. Injectors for pest control: Rs7000 (for 3 years)
  1. Employee uniform costs Rs 35,000. (for 5 years)
  1. 13,000 rupees for a dent and scratch remover (for 3 years)
  1. Customers’ bonus gift/surprise: 25,000 (car perfumes or other small gift stuff for initial customer who sign annual contracts within 1 year completion of business)
  1. 8000 rupees for CCTV ( one time cost)
  1. The initial cost of advertising was Rs 1,50,000. (one time cost)

Cost that varies:

  1. Rs. 24,00,000  (per annum)
  1. Rs 3,000,000 for electricity ( per annum )
  1. Charges for water: Rs.2,00,000 (per annum)
  1. Employee wage, including CA (legal work) and insurance: Rs40,000,000.00 (per annum)

Profit Calculation:

  1. We have concentrated our efforts on Nirlon Information Park in Goregaon, which offers a commercial space of roughly 216,000 square feet and parking for around 6000 vehicles.
  1. Assume that on any given day, 4000 autos are parked in the area.
  1. With early promotion, we should be able to attract about 15% of them as first-year annual package clients.

.= 600 clients

We’ll split these clients into groups according to the body fashion distribution data available for Mumbai Hatchback = 47 percent.

23 percent of the population is in the midsize category.

17 percent Sedan

10% of SUVs and MUVS are SUVs or MUVS.

3 percent premium

  1. Due to word-of-mouth marketing and promotion, the number of clients supplied the following year will increase by 15%. Due to advertising and word-of-mouth recommendations, an additional 20% will be added the next year. In the following years, an increase of 10% will be implemented.

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