Description
Auto detailing, is the performance of an extremely thorough cleaning, polishing and waxing of an automobile, both inside and out, to produce a show-quality level of detail. Besides improving appearance, detailing helps to preserve resale value of a car.
Project at a glance
Name of the industry
Location
Splaash car (spa)
4, 5, 6 Iscon Plaza, Opp. Star India Bazaar, Nr. Sundarvan, Satellite Road, AHMEDABAD-380015 Car detailing
Nature of Industry
Date of Incorporation
1st April, 2011
Cost of Project
Rs.11093000
Means of Finance
Rs.11093000
Payback Period
4Years
Average Rate of Return
18.49%
Internal Rate of Return
9.41%
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Reasoning
1) The car spa (detailing) business is booming right now with low operating expenses and a very pleasing net profit. 2) The car detailing business offers an opportunity to earn an excellent income. 3) Now a days modern people are very busy and they often neglect to clean their car. 4) It is one step ahead then the auto garage service. It is a luxury way to take care of car. 5) People are more conscious about the beauty of the car. 6) Car spa (detailing) will not only ensure that your car looks attractive but also the paintwork, bodywork and interior of the car remain in good condition for longer period of time. That’s the reason of consuming this service.
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INTRODUCTION OF CAR DETAILING (SPA)
"Car Detailing” is a popular name for what essentially is a full-service Car wash. Some Car detailing (SPA) provides more upscale services than traditional Car washes, but in many cases, the services are similar. Car Detailing SPA) provides washing, waxing, interior cleaning and Car detailing services. The specific services and methods that Car Detailing (SPA) offers vary between businesses. One Car Detailing (SPA) might do everything by hand, using soft, lint-free cloths or sheepskin mitts to wash Cars and perform hand waxing and polishing. Another Car Detailing (SPA) might use tunnel washers or other automated equipment to wash and spray on wax and polish. Some Car Detailing (SPA) offers both hand cleaning and automated washing services, with a higher price for hand cleaning, which involves more workers. Other services provided by many Car Detailing (SPA) includes cleaning and dressing tires, cleaning interior windows, deodorizing, underbody flushing and more. Most of the Car Detailing centers combine services into detailing packages, such asbronze, silver and gold levels. In addition to this some Car Detailing (SPA) has Carte menus for customers to pick and choose specific services, in addition to providing package services. Some Car Detailing(SPA)take a one-stop-shopping approach, offeringpreventive maintenanceservices in addition to standard cleaning of Cars. Oil changes, replacement of fuel andair filtersand flushing of radiators and transmissions are some examples of maintenance services that might be provided. Other service provided by Car Detailing (SPA) includes dent removal,window tinting, windshield repair andupholsteryrepair. At a Car Detailing (SPA), the waiting area for customers might be comfortably basic or more luxurious, depending on the individual business and its clientele. At the basic end, complimentary coffee andteamight be provided, along with magazines and television. Car Detailing (SPA) at the more luxurious end of the spectrum might have waiting areas with leather or other cushioned chairs, flowing fountains and children's play areas with toys, snacks and more.
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HISTORY
With the modern convenience of touch less automaticcarwashes, it may be difficult to remember that the industry was not always so high-tech. Though other commercial car washes came before it, the first semiautomatic car wash in the United States made its debut in 1946, and from there the industry has grown in both size and sophistication
The First Car Washes
One of the first commercial car washes appeared in Detroit in 1914, where two businessmen started a manual car wash. It required the customer's car to be pushed around a circle to different stations, where it went through the various stages of washing. Before the first automatic car wash opened, there were only about 32 drivethrough car washes across the United States, according to the International Car Wash Association.
Going Automatic
Around 1928, car wash engineers pioneered the idea of a car wash in which the car would be pulled by a mechanism that attached itself. The idea came to fruition in 1946, when the first semiautomatic car wash appeared in Detroit. Though the car was pulled by a machine, the car was scrubbed by manually operated brushes. Dan Hanna In 1955, while on vacation in Mexico, Dan Hanna, Sr., stayed in a motel located across the street from a car wash. The mechanically-minded Hanna became very interested. He studied the car wash’s operation and visited extensively with the owner/operator. He returned to his home town of Portland, Oregon, and with money his mother obtained by mortgaging their home, Hanna opened his first Rub-A-Dub car wash in Milwaukie, Oregon. This led to the creation of Hanna Enterprises. Two years later, he opened his second wash and ultimately had 31 successful Rub-A-Dub car washes operating in the Portland area.
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In 1959, Hanna tinkered with and tested his wash rack until he had a working model of the first mechanized car washing system. Word spread about Hanna’s machine, and he began to put them in other people’s car washes. In 1993, a Texas venture capital group brought about the merger of two industry giants — Hanna Industries and Sherman Carwash Company. The merged companies became HannaSherman International, Inc. and had a large focus on international markets. Hanna first expanded in the Far East (Korea and Thailand) and emerging markets (including China, Russia and Eastern Europe). Hanna also increased activity in Germany, Ireland, Latin America and Southeast Asia. International growth flourished throughout the 1990s, making Hanna the most global car wash manufacturer in the industry.
Organization
Also in the 1950s, several dozen car wash professionals gathered and formed the Automatic Car Wash Association. Today the organization is known as the International Carwash Association, and it represents the industry with monthly newsletters, government relations and an annual expo. The International Carwash Association estimates that approximately 22,000 car washes worldwide now employ around 500,000 people.
IN INDIA
In India, carz spa was the first car detailing firm providing various car detailing services. Now, even the well know company 3M’s has launched a car detailing service firm. This is because as per the recent surveys and analysis made by several organizations, the estimated number of new luxury cars sold annually in India is about 2500. Although it may look quite minuscule in terms of the total 1.7 million cars sold in India, but the luxury car industry has been growing at a rate of about 15% annually. Hence there is potentiality of business growth in car detailing industry. Perhaps, 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.
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PestAnalysis
Managers have to perform their functions in the organization. The systematic approach of managing suggests that an organization has to work within the framework provided by the society and its various constituents. These constituents are combined to constitute environment for a given organization. A scan of external (macro) environment in which the firm operates can be expressed interms of the following factors; Political factors Economical factors Social factors Technological factors
Political Environment
Political environment includes government regulation and legal issues under which the firm will operate. Political stability and political parties Government administration Tax policy Licensing policy
Legal Environment
The laws relating to workers and their problems are as follows: Industrial Dispute Act, 1957 Payment of Wages Act, 1936 Workman Compensation Act, 1923 As such there is also one legal issue relating to pollution. However, the machines of our firm will be eco-friendly and as per the prescribed rules and regulation of the pollution board. We will only use those chemicals which are lab tested and approved by the top car manufacturer.
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Economic Environment
Economic factors affect the purchasing power of potential customers andthe firm’scost ofcapital. Wehave considers the following economical factors; Demand and supply of the service Nature and intensity of the competition Inflation or deflation in the economy These are very important factors which should be considered in macro economy. Most important is the demand of car detailing is increasing, the competition will also increase. Many new competitors may also come due to the good potential market.With the accelerating new car sales and changes in customer lifestyle and aspirations, there is a growing awareness and opportunity in car detailing, that is why the demand of car detailing is increasing day by day.
SocialEnvironment
Social factors include demographic and cultural aspects which affect the customer’s needs and the size of the potentialmarket. Wehave also taken into consideration factors like:
Population growth Age distribution Change in income Expectations of the society Customs and traditions Labour’smobility and Technicalknowledge.
Technological Environment
Technological factors can reduce minimum efficient production level and influence outsourcing decision.
1. Technological innovations are introduced for higher productivity, lower cost
and morerevenue.
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2. Technology refers to sum total of knowledge providing way to do things. 3. Our organization gives constant consideration to the manner in which
innovations may affect our service and also our internal operational efficiency.
4. The firm that moves with latest technology can excel thegrowth thatis why
our firm SPLAASH has decided to install the latest machineries.
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PARTNERSHIP DEED
Date and time
This agreement of partnership deed executed on 1st April, 2011.
Address of Partners Name & Addresses
NAME OF PARTNERS AKSHAY GANDHI BINDIYA PARMAR ADDRESS C-203,Suvidhi Appt., Jivaraj Park, Ahmedabad 1003/A/1 Vijaynagar Society, Near Ved mandir, Kankaria road, Ahmedabad-380022 H/4 Prabhakar Flates, Nr. ChinmayTower, Gurukul,Ahmedabad31,Arpan Society, Nr. Mayur High School, Naranpura, Ahmedabad-380013 D/21 Dev city, R.C. Technical road, Ghatlodia, Ahemedabad-380061
CHANDNI PATHAK
KRINA PATEL
KAUSTUBH PATEL
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Preamble
We, the above partners have come together to carry on the business of car detailing service as from 1st April, 2011 and the terms and conditions of the partnership agreed upon are hereby in writing.
A. NAME
The business of the firm will be carried on under the name “Splaash”. However the partners shall be entitled to change the name of the firm as agreed upon.
B. BUSINESS OF PARTNERSHIP
The business of the firm will be to provide Car detailing services to the customers.
C. DATE OF COMMENCEMENT
The date of commencement of partnership is 1st April, 2011.
D. PLACE OF BUSINESS
The principal place of the business of the firm will be at 4, 5, 6Iscon Plaza, Opp. Star India Bazar, Nr. Sundarvan, Satellite Road, AHMEDABAD-380015 But the partners will have liberty to shift it to any other place and to open branch or branches at any other place or places as may be agreed upon.
E. DURATION
Time duration of business is not fixed. It is the form of “Partnership at Will”.
F. CAPITAL
The initial capital of the firm will be Rs.5500000 equally contributed by all 5 partners.
G. DRAWINGS
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Drawings can be made by the partners as many times as they wish in the year by taking into account the respective accounts.
H. INTEREST
Wewill be giving the interest of 6% on capital to the partners and we will be charging the interest of 6% on drawings of partners.
I. SHARE IN PROFIT OR LOSS
Profit or loss of the firm will be shared equally among all the partners.
J. BORROWINGS POWER
The firm shall be entitled to secure deposits, borrow money & seek loans from any banks, corporate & non-corporate bodies and financial institutions. Firm can also take loan from the partners, if required.
K. ACCOUNTS
The books of accounts of the firm will be closed once in a year preferably from April 1 to March 31.
L. BANK ACCOUNTS
The bank account of the firm will be openedand maintained in SBI, at Satellitebranch in the name of the firm only, which would be handled by 2 partners as agreed by all the partners. They shall be authorized to avail all type of facilities in the name of the firm that are generally allocated by the banks. They shall be authorized to appoint any person to operate bank accounts of the firm by way of Power of Attorney by discussing among all the other partners.
M. DISSOLUTION
Death and disability or retirement of any partner(s) will not be result into dissolution of the partnership; the remaining partners will be entitled to carry on the partnership with or without taking the nominee(s) of the deceased or disabled partner(s).
N. DEATH OR DISABILITTY
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In case of death or disability of any partner(s), the nominee(s) of such partner shall be taken into the partnership. The partners are free to change the aforesaid nominee(s) from time to time by notifying the same to other partner.
O. MODIFICATIONS
The partners will be entitled to modify above specified terms of the partnership related to interest, remuneration etc. by executing the supplementary partnership deed. The modified deed will be applicable from the first day of the accounting year in which it is executed.
P. ARBITRATION
Any dispute arising among the partners during the continuation of the partnership will be referred to the arbitration. For that the provisions of “Indian Arbitration Act, 1940” will be applicable.
Q. AMENDMENTS & ALTERATION
The partners will by mutual or oral agreement is at a liberty to amend, alter, vary or add to the aforementioned terms and conditions.
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R.RIGHTS & DUTIES OF THE PARTNERS RIGHTS OF THE PARTNERS
Each & every partner has a right to take part in day to day activities of firm. Each & every partner has a right to inspect books of account of the firm. Each and every partner has a right to express his opinion. Each and every partner has a right to have share in the profit of the firm. Each and every partner has a right to receive interest on the loan and capital contribution made to the firm. Each and every partner has a right to be indemnified by the firm.
DUTIES OF THE PARTNERS
Each and every partner is liable to deal honestly in the business of the firm. Each and every partner is liable to work hard & with dedication to achieve the common goal of the firm. Each and every partner is liable to make sure that assets of the firm will be protected & will be used in productive manner. Each and every partner is liable to indemnify the firm in case of any loss occurs to the firm due to his misconduct. No partner is allowed to transfer his interest in the firm without the common consent of other partners.
We hereby, after hearing all the terms and conditions of the partnership put our hands to this deed on the said date, month, year.
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FORM ‘H’ (Seerule 17) CERTIFICATE OF REGISTRATION THE INDIAN PARTNERSHIP ACT, 1932 (Act No. IX of 1932) Registration No. 237/GUJ/AMD32
It is certified that a firm by nameSPLAASHwith its head office at4, 5, 6 Iscon Plaza, Opp. Star India Bazaar, Nr. Sundarvan, Satellite Road, AHMEDABAD-380015has this day been duly registered under the Indian Partnership Act, 1932 (Act No. IX of 1932) Give under my hand this day of 10/03/2011
Registrar/Assistant Registrar of Firms Ahmedabad
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WHAT IS TECHNICAL FEASIBILITY ?
Technical Feasibility study assesses the details of how a product or services will be delivered (i.e. material, labour, transportation, where the business will be located, technology needed etc.). A technical feasibility study is an excellent tool for troubleshooting and ling-term planning. In some regards it serves as a flow chart of how products and services evolve and move through business to physically reach to market.
Water Supply
As water is basic necessary for our service, we must require regular supply of water. At Iscon Square, there is full supply of water. So it is appropriate for us. If there are problem of water supply from corporation, we have engaged a water tank for storage of water.
Electricity Supply
Our machineries are electrical. So it is required that the supply of electricity never gets down in working hours. We have electricity connection from Torrent Power. If there is power cut of electricity, we have provided generator to produce electricity and keep the work continue.
Communication
There are many telecom companies are available in the area, we have selected BSNL for landline connection and for broadband service to keep contact with our valuable customers. We also have our own websiteto interact with our customers.
Selection of Location
Why we selected this place is an important question because, the place at which all basic requirements of service can be fulfilled should be selected. So by keeping it in mind we have selected this place for providing our service. The basic tworeasons for the same are: Availability of utilities. There area is heart of the city and having very famous malls nearby.
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FURNITURE & FIXTURE
IBnn In Rs. Particulars Sofa set Table Glass Cabin Table Receptionist Table Cupboard Revolving Chair (small) Revolving Chair PlasticChair Light board Wall Clock Notice board Suggestion box Fans AC Tube light Tea &coffee machine Water Cooler Water purifier Total Quantity 3 1 1 2 4 5 1 6 10 4 1 1 10 1 12 1 1 1 Price 12000 1300 3000 1800 7000 1700 2600 250 300 250 200 100 1100 20000 350 5000 15000 2000 Total 36000 1300 3000 3600 28000 8500 2600 1500 3000 1000 200 100 11000 20000 4200 5000 15000 2000 Rs.146000
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MISCELLANEOUS ASSETS
INIn Rs. Particulars Laptop Computer LCD Printer Generator Air conditioner Music System Total Quantity 1 2 1 1 1 2 1 Price 30000 17000 17000 3000 48000 20000 5000 Total 30000 34000 17000 3000 48000 40000 5000
Rs.177000
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MACHINERIES
1)Steam machine Supplier:Seongin Engineering Co., India Steam car wash machine 8kw Water tank:25L Preheating time: 2minutes Body material: stainless steel;
2) Vacuum cleaner Supplier:Shimono Industry Co., Ltd, India Power supply: DC 12V 60W
3) Compressor (form machine) Supplier:S.V. Electronic Co., Ltd., India 16mm cylinder Air flow: 15L/min
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4) Ozone machine Supplier:SaharaTechnology Co., Ltd., India car purifier Ozone output: 2-3 g/hr Adjustable ozone output: 20-100% Working time: 5-30 mins or 24 hrs..
5) Grinder machine Supplier: G.R. International Limited, India Compact body with 190W motor Ergonomic design for comfortable and efficient operation.
6) Jack machines Supplier:StrongMotoline Co. Ltd , India Hydraulic pressure: >63MPa Pushingcapacity:100T-320T Weight:240kg
CHEMICALS
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LOCATION ANALYSIS
The location of the unit is very important aspect in economic analysis of any project as it plays vital role in continuing life of the organization to have future advantages. Location of the unit means a specific site in the region where the organization is to be started. For selecting the location all the pertinent factors influencing the location have to be considered and weighted out very carefully.
1. Proximity to Customers
Satellite is considered to be both Commercial as well as Residential area. There are many automobile outlets situated in this area so we will easily get access to our target segments.
2. Good Visibility
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As the station is situated on the ground floor in front of main road we could avail the advantage of great attention of people.
3. Higher income Groups
This area is considered to be economically developed area so we can capture upper-middle and higher income group people.
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PLANT LAYOUT
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Product
“A goods, service or idea that offers a bundle of tangible or intangible attributes to satisfy consumers. However, in service, there is no or only one element because of which they are considered as benefits which are offered to target market.”
Product level
In planning market offering of car detailing service, the marketers need to think through five levels of product. Each level adds more to customer value hierarchy
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Product Level No. 1
LEVEL Core benefit: It is the fundamental service or benefit that the consumer is really buying. Basic product: A basic product comprises of basic and functional attributes. SERVICES OFFER BY US To clean the car
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Car Detailing(spa) service
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Expected product: Expected product To beautify the car and long lasting is the set of attributes or conditions the paint and anti rust effect. buyer normally expects. Augmented product: It consists Pick up service, refreshmentservice, ofthose services that meetthe Entertainmentservices, water less car customers’ desire beyond expectations. detailingservices and dryinterior cleaning. Potential product: Potential product To provide insurance for car, to teach is the possible evolution to distinguish driving, door to door service(Isuzu truck) the offering by providing future benefits.
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Competitions Level 1. Brand competition
It is a Known fact that there is an existence of competition in any brand. In a Car Detailing Splaash, there are many brands such as H2O, TC4, and Euro etc which are already established brands and have a good share of markets.
2. Industry competition
There is also an existence of competition between industries. Car Detailing industries faces the same competition from Auto Garage. Similarly Splaash suffer from various local Auto Garages and petrol pump too.
3. Generic competition
This is the competition among those goods and services which can be bought instead of a particular service. Genericcompetition for Car Detailing services isdifferent as there is different price level for different services.For example, car accessoriesto decorate the caror any other expenses can be incurred instead of car detailing service.
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The Service Package
“The ‘Package’ concept of service product suggests that what you offer to the market is a bundle of different services tangible and intangible ,but there is a main or core service and around it are built the auxiliary or facilitator services”
1. Core services Intensive Interior Cleaning
Our latest equipment’s like Steam Vapour machine, Lather Foam machine, Spray Extraction Machine & Bio Degradable cleaners gives an intensive cleaning to all rubber beadings, seat (fabrics leather) belts A.C. Vents, dash board/console carpets, ceiling, door jambs, dicky & all other rubber and fabric mats making car "Germ & Bacteria Free".
2. Facilitating services
Facilitating services are the services which help to provide core services. There are mandatory and if they are left out, the entire service would collapse. For Splaash, the facilitating servicesare:
Exterior Steam Wash
Experience the Hi-tech latest Steam vapour technology to give your car "new sparkling look” at our splaash. Heat and Pressure Combined creates a powerful cleaning Solution that melts away dirt, grime, oil, tar, bird droppings, tree sap.
Ozone Treatment
The car is being treated with OZONE AIR PURIFIER after the interior
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cleaningmaking it germ free. It Sterilizes interior and help purify the air quality and remove any and all odour in car cabin thus helping you to prevent any health risk.
3. Supporting service
Supporting services are used to increase the value of facilitating service. For splaash, supporting service could be
Paint correction/protection
Over the time cars paint erodes due to the effects of sunlight, UV radiation, acid rain, salt, dirt, bird droppings and air pollution. Our PTFE based polymer paint sealant creates slippery, slick barrier that protects the paint finishes, reduces fading & oxidation of paint. It repels dirt & grime, accelerates water run - off to reduce spotting smoothens weathered surfaces and removes scratches giving a depth to the paint. Sealants are the beauty packs of the car an ultimate form of protecting the finish by sealing the pores creating “NEW LOOK TO THE PAINTED SURFACES”by repairing the paint scratches, swirl marks, dullness etc. by using clay bar and the world's most demanding imported chemicals approved by the car manufacturers.
Under body Polymer Coating Treatment 1. Long term protection against corrosion/rusting. 2. Effective dampening of sound & vibration. 3. Fire retardance properties. 4. Heat/Electrical insulation beneath the car. 5. Reduction of impact load (like stone hitting on car underbody). 6. Withstands temperature range of (-) 150C to 1500C. 7. Film thickness of 100 to 150 microns per coat.
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Anti - Rust Treatment / Protection
Splaash source Anti - Rust compound is scientifically formulated to protect the door's Jams, dicky bonnet, engine bonnet against rust & corrosion, it is a wax based treatment that protects unpainted surfaces & recessed cavities where rust can occur that too with life time warranty. Ask for the underbody coating sample plate.
Anti-Glare Glass Treatment
This treatment reduces glass streaks and scratches, rainbow marks and thus improves the quality of night vision and overall visibility.
Nano Glass Coating
Based on Chemical Nanotechnology, Nano Glass Coating forms a thin, hygienic, transparent layer over any glass window or surface, which provides excellent water, dirt and grime roll-off, as well as providing protection, high transparency, and significantly reduced maintenance costs. It acts as a dust repellent and also improves visibility during rain.
4. Accessibility of service
Skilled employees and customer’s satisfaction are the pillars of Splaash. The working hours of the service outlet are comfortable for target market i.e. our outlet is established at Satellite Road, Ahmadabad, where we can get good numbers of customers.
PRICE
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“Price means the amount of money charged for a product or service or the some value s that consumers exchange for the benefits if having or using the products or service.” There are a several different factors that cause the variations in prices for car detailing. Usually, car detailing prices vary from facility to facility, how big and what type of car you have, detailing packages, extra services, and similar other factors. The size of the car has a lot to do with the car detailing prices. If you have a smaller car, the time for the detailing procedure will be less and the labor will have to use fewer amounts of materials. Car detailing prices also count on the packages which are availed. There are many types of packages, which differ in the services included in them. Upgraded packages will include additional services apart from these typical ones.
Pricing Methodology
We had adopted a cost plus profit job costing method of pricing in order to determine the price of the complete car detailing services, because it is easy to compute, easy to understand and consistent to maintained.
Service Tax
Taxes refer to the tax to be paid on getting services. Here the list price is exclusive of all the taxes. The current tax rate for automobile service industry is 10.30%, which is charged on the amount of services rendered.
Payment Period
Payment Period refers to how much time is to be given to the customer to make the payment. In all the services provided by SPLAASH, the payment is made on the spot that is, no credit period is allowed to customers.
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Pricing for SPLAASH is largely dependent on the model of the car. CATEGORIES
Small cars Medium cars
CARS
M-800, Alto, Zen, Nano, Spark Wagon-R, Estilo, Swift, Getz, U-VA, Indica, Omni, I-10, santro, Palio Fabia, Fusion, Ikon, Esteem, Accent, Indigo, Feista, Verna, Honda City, Civic, Optra, Corrola, Baleno, Swift D-zire Accord, Camry, Superb, Laura, V-W, Nissan, Prado, Q7, CRV, Captiva, Endeavor, Innova,Safari, Tavera, Qualis, Scorpio
Large cars
Luxury & XL cars
Price List
It is difficult to list out the prices of various car detailing services of our firm at somewhere. This is because, the car detailing services are depends on the preferences of the customers. Thus it is difficult to determine the price range of the services and thereby we classified the various car detailing services based on available information.
The details about the service charge structure are shown in following respective table:
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SERVICES Interior +Ozone +Exterior Exterior +Underbodycoating Glass treatment +Exterior Headlight Paint Correction Anti Rust Treatment
SMALL 1450 1850 1150 800 5600 2500
MEDIUM 1680 2220 1380 960 6720 3000
LARGE 1820 2405 1495 1040 7280 3250
LUXURIOUS 1960 2590 1610 1120 7840 3500
PLACE
“Place refers to the physical existence of the service outlet where the customers will come into the direct inter course of the service provider and where services will be delivered by the service provider and received by the customers.”
Address:
4, 5, 6 Iscon Plaza, Opp. Star India Bazaar, Nr. Sundarvan, Satellite Road, AHMEDABAD-380015
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Location Analysis: The reasons for selecting this place are as follows.
1. Proximity to Customers
Satellite is considered to be both Commercial as well as Residential area. There are many automobile outlets situated in this area so we will easily get access to our target segments.
2. Good Visibility
As the station is situated on the ground floor in front of main road we could avail the advantage of great attention of people.
3. Higher income Groups
This area is considered to be economically developed area so we can capture upper-middle and higher income group people.
4. Better Facilities & Low Cost
This area is well equipped with the basic facilities like water supply, Street light Electricity etc. This all facilities are easily available.
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PROMOTION
“Promotion mix is a specific blend of Advertising, Sales Promotion, Public Relations, Personal Selling and Direct Marketing tools that the company uses to pursue its advertising and marketing Objectives”
Promotion Tools
Advertising
“Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor.” - American Marketing Association
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1. Mission
Advertising goal of Splaash is to spread awareness among the target customers through specific communication tasks and achievement level to be accomplished in a specific period of time. The short term aims 1. To create awareness among the customers about the SPLASH 2. To inform customers about our quality, affordable price, long lasting services effect, latest technology used in car detailing. The long term aims 1. Expansion towards new market. 2. To increase the interior.
2.Money
Although advertising is treated as current expense, part of it is really an investment that builds up on tangible assets called brand equity. As ours is a new organization
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wehave to spend a large amount on advertising to create awareness and to gain the viewership. 3. Message “Where innovation paves the way to quality” The message’s impact depend not only on what is said, but also often more important on how it is said. So the message generation plays an important role in organization’s image or reputation.
4. Media
Advertising media is a means through which advertisers communicate their messages to target people with a view to influence them in terms of advertising objectives. For Splaash’s 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. We use the following means to advertise:
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Newspaper
Newspapers are widely circulated in all the section of our society and will help us to send our message to each and every resident. We would be advertising in leading newspaper of the area. Particulars Times Of India Divya Bhaskar 20cm,4thpage, 10cm,last page Cost(Rs.) 25000 22000 Frequency (per year) 6 4 Total Cost 15000 88000
Hoardings
Area Satellite S.G.Highway Cost(Rs.) 200000 100000 Frequency(per year) 1 1 Total cost Rs. 200000 100000
Radio 98.3 Radio Mirchi
Time slot 20 sec. Cost per sec. (Rs.) 120 Frequency 50 times Total Cost 120000
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Magazines Particular Business Today Cost(Rs.) 15000 Frequency 3 times in year Total Cost 45000
Leaflets with Newspaper
Perticulars 25000 Copies Cost per copy (Rs.) 0.80 Total cost of Copies 20000 Frequency Total Cost(p.a) 120000
6 times in year
Commission on Leaflets
Particulars 25000 Copies Cost per 1000 copy (Rs.) 120 Commission 0n Copies 3000 Frequency Total Cost(p.a) 6 times in a 18000 year
5. Measurement
The advertising program should evaluate both the communication effect and the sales effect of advertising regularly. Measuring the communication effects of
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anadvertisement-copy testing- tells whether the ad is communicating well or not. The sales effect of advertising are often harder to measure than the communication effect because sales are affected by many factors besides advertising- such as product features, price and availability.
Sales promotion
“An activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door-to-door calling, telemarketing, and personal letters on other methods”. In short Sales promotions are short-term incentives to encourage the purchase or sale of a product or service. It may be classified as follows:
Consumer oriented sales promotions
Gift:We are giving car fresheners to those customers who have availed the scheme of jumbo combo pack. Free Service: At Splaash, we are giving free pick-up and drop service up to 15kms. Package Offer: We are providing service at lower rate to the subscriber of jumbo combo pack.
Direct Marketing
Direct marketing is one of the promotion tools by which advertisers approach potential customers directly withproductsor services. The most common forms of direct marketing are telephone sales, solicited or unsolicited emails, catalogs, leaflets, brochures and coupons.Successful direct marketingalso
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involvescompilingandmaintaining a large database of personal information about potential customers and clients. These databases are often sold or shared with other direct marketing companies.Following are tools which are used by the firm for direct marketing:
1. E-mails
We often stay in touch with our customer via e-mails & work upon their respective feedbacks. We are using the facility of ‘Blast Email’ to inform the customers about the various scheme of our firm.
2. Brochures
A brochure contains information in detail that will help our customers to understand the services easily.
3. Database of personal Information
At every dealer centre & for our direct visitors, we maintain a good database of our customer’s information which helps us to reach the potential customers. Our Website plays a very important role in maintaining the database.
4. Direct-response broadcast advertising (radio)
Our advertisement broadcast at the rate of 120 per second for 20 second ads at 98.3RadioMirchi, 50 times a year.That also helps us for reaching far number of customers.
5. Hoardings
We havetwohoardings inpeakareas that createsattentionat S.G.Road and Paldiat the rate of 300000for the year.
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Website with Social Networking
There is a growing number of social networking sites focused on business users and meeting their needs. Online networks can help to hire the right people, market the product or even find a manufacturer. We had designed our websitewww.splaash.webs.comin an interactive way with Social networking facilities. we have tried our best to keep our customers in contact with the help of social networking facilities. Here, on thissite they can be in contact with our team and other car lovers too. By using the online social media sites to introduce Splaash, our business and services will get a wide view. Over a time we will build brand awareness among people there. So we set up MySpace page, Twitter account, LinkedIn, Face book, Fraudster, Hi5 profiles etc and link each of them to your website. It will list out the recent activities of the members so that we have the easy look around on the splaash business.
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On a Initial Stage, Splaash has decide to focused on the following ceteria to get more customers to the website, using the free resources available on the Internet; (1) Free Social Media to Get Customers(2)Free Guerilla Techniques to Get Customers(3)Visit Online Groups to Get Customers(4)Online Articles to Market Yourself(5)Advantage of Free Business Listings(6)Free Online Blogging to Get Customers to Your Website(7)Free Internet Tools to Get Customers to Your Website(8)Create a Video to Get Customers (10) Optimize Your Website to Get Customers.
Our website helps us to maintain the record of the visitors at a different point oftime i.e. click streaming record thereby help in promoting various scheme and offers. Thus it acts as an important tool for promotion and help in providing them latest news of the car detailing industry and splaash too.
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PROCESS
“Process means the procedures, mechanism, and flow of activities by which a service is acquired. Process decisions radically affect how a service is delivered to customers.” There are three basic components to car detailing. The first one is washing the car and the Car detailing(spa) products which can be used for this includes pre-wash with foam and vehicle shampoo. These are designed to remove the dirt and grime from the paintwork of a car effectively. The best quality cleaners will lubricate the paintwork as well as condition it to enhance the shine. Car detailing(spa)clay bars help to remove small contaminants that have become embedded in the paintwork.
Once the car has been thoroughly cleaned, the second stage in Car detailing(spa)is polishing. There are a number of manufacturers that produce good quality polishes for both the exterior and interior of a vehicle. They are designed to clean and protect the paintwork of car. This is an important step that cleans completely the surface of the paintwork.
The third step in Car detailing(spa)is to use car wax or sealant on the car which helps to prolong the life and looks of the car paintwork. Using a car wax or sealant
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willprotect the paintwork from UV rays, moisture and pollution and will also produce a brilliant shine which will greatly enhance the look of a car.
PHYSICAL EVIDENCE
43
Services being intangible it is difficult to touch, and judge them so it becomes necessary for marketer to tangibalize the intangible so as to provide customers with various clues to make purchase decision. This task is performed by physical evidence.
Name:“Splaash”
LOGO:
Punch Line:“Wemake the Car Smart”
VISITING CARD:
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Location:Satellite (2,000 sq FT) Website:www.splaash.webs.com Equipments:Laptop, Desktop, Air-conditioners, Furniture, water cooler,
Television, Job Card, Suggestion Box etc
PEOPLE
It is rightly said that-“ Employees represent the organization to the customers and a service company can be only as good as its people.” If these people are not given training than the entire marketing efforts may not prove to be effective. It is often challenging for service organization to differentiate itself for similar organizations in the benefit bundle it offers or its delivery system. Organization can gain a strong competitive advantage through appointing workers and employees with specialized knowledge as per the requirements in the respective field. People are important in service marketing because; People deliver the services
45
People get the satisfaction Service become successful by the people Company gets goodwill and image.
Factor motivating
Various factors that help in motivating the employees are Ambience of the place, Easy work scheduled, Company policies, Pay package, Work culture, Position etc.
Organization Chart
PARTENERS
GENERAL MANAGER (1)
ACCOUNTANT (1)
SUPERVISOR (1)
RECEPTIONIST (2)
PEON (1)
FOREMAN (8)
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Official Working Hours: 8:00am-7:00pm
Designation General Manager Supervisor Receptionist Accountant Foremen Peon Total
No. Of Employees 1 1 2 1 8 1 14
Salary(Per Month, Per Worker) 22,000 12,000 7,750 10,500 8,750 4,000 Rs.65,000
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Job Profiles
1. General Manager Job Specification:
Job Title Education General Manager MBA and PGDCA or equivalent degree of computer. Mental Ability : Should be well versed, good listening skill and Presence of mind Language skill : English, Hindi, Gujarati Skills : Speech Clarity, Easily understanding of the problems,Good power of expression, Co-operative and Leadership Skill Physique and Health : Good Health and Sound Mind Work Experience: Anexperience of 2-3 years in any established organization as finance manager : :
Job Description:
Reports to Supervises Functions : : Partners Supervisor, Accountant Delegate authority 48 Motivate to all subordinates To be able to negotiate with the partners
2. Supervisor Job Specification:
Job Title Education Supervisor B.com (Graduation in any discipline) Mental Ability : To handle the stress of difficulties and should have sharp memory Language skill Work experience: : English, Hindi, Gujarati An experience of 2-3 years inany service center : :
Job Description:
Reports to Supervises Functions : : General Manager Receptionist, Foreman, Peon : Handle the advertising To keep a bird eye on each worker and reporting to general manager Ability to control Check the standard quality of the services 49 Handle the customer problems -get the feedback
3. Accountant
Job Specification:
Job Title Education Mental Ability: Intellectual : Accountant : M.Com (Accountancy) Good at calculation,concentration power,
Language skill : Physiques and Health : Work experience :
English, Hindi, Gujarati Good health, good eye sight An experience of 4-5 years inaccountancy
Job Description:
Reports to :
General Manager
50
4. Receptionist
4) Receptionist
Job Specification:
Job Title Education Mental Ability : : Receptionist : Any Graduation and undergraduate Good presence of mind, ability to manage time and handle thecustomers English, Hindi, Gujarati : Good communication, Clam, polite and convincing power : An experience of 1 year in any consultancy
Language skill : Skills Work experience
Job Description:
Reports to Functions : Data entry 51 and maintain of record Attending and handling the telephonic respondent : General Manager
5. Foreman
Job Specification:
Job Title Education : Mental Ability : Foreman Primary education : Co-operative with other workers, mentallystable Language skill : Hindi, Gujarati Physiques and Health : Strong, good eye sight
Job Description:
Reports to Functions : : Supervisor
Clean the cars, ability to understand the technical problems in cars
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6. Peon
Job Specification:
Job Title Education : Mental Ability Language skill : Peon Primary education : Co-operative with others, polite : Hindi, Gujarati
Job Description:
Functions : Follow the orders of the higher authority, Clean the offices, Do all the miscellaneous work,
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Policies for Our Employees
1. Recruitment & selection
We will be giving recruitment advertisement for receptionist, Account manager and others in the leading newspaper of the area such as The Times of India, Divya Bhaskar etc.
2. Motivation
The employees will be provided with following monetary and non-monetary benefits like bonus, and holidays in festivals. Besides we will also follow suggestion box scheme. Moreover Special leaves will be given to employees. Three days leaves will be given in addition of Official Leaves.
3. Team work
It is the team spirit on the part of the employees which is behind the success of any business entity. The culture of our organization will be such that will help in imbibing this spirit in our employees to provide qualitative service to customers.
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4. Employee behavior
Training and motivating are to be given so that employee can make the difference among the other company employees and feel satisfaction.
5. Bonus:
We give One Month Salary as a Diwali Bonus to our employees. Market research is the systematic design, collection, analysis and reporting of data and findings relevant to a specific market situation facing the company. While there are dozens of little steps along the path, each fits into one of the five steps in the marketing research process.
The main steps in marketing research are: Step1. Identifying and defining your problem Step2. Developing your approach and research design Step3. Collecting the data Step4. Performing data analysis Step5. Reporting and presentation
Step1. Identifying and defining your problem Problem
“To conduct the survey of Car Detailing users, non-users and consumption pattern of consumers of Car Detailing.”
Objectives
1. To study the Car Detailing market (industry) 2. To study the Demographic and Social variables of users and non users of service. 3. To find out market share of different brands.
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4. To study behavior of consumers for the service by considering the various attribute of the service. 5. To find out purpose of the users of Car Detailing 6. To find out the most popular brand of Car Detailing 7. To find out reason of not using the service.
Step2. Developing research plan
The next step of a marketing research is to develop a plan regarding decision factors like sources of data, data collection method and contact methods.
a) Data source: Primary:Survey of Car Detailing users, non users. Secondary:Internet,magazines,newspapers,Management book PhilipKotler b) Research approach:Survey Approach c) Research instrument:Questionnaire d) Sampling plan: Sampling units:On the demand side= Users & Non users Sample size:No. of consumers=1000 Contact method
ersonal interview Sample procedure:Convenience sample Step3. Collection of data How questionnaire was prepared?
We had collected the data by the way of questionnaire prepared after seeking information from Management book Philip Kotler, taking views of our project guide, & referring the past projects.
Who are surveyed?
We had conducted survey of customers having car at shopping mall and customers outside the Car Detailing shop and also our neighbors.
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Which problems were encountered?
As this concept is new for most of the consumers, we had to explain them about Car Detailing (spa). It was really an excellent experience for us.
Step4. Performing data analysis
Analysis of the data collected is carried out to meet the various objectives of the research. First of all the data collected is bifurcated into users and non users of Car Detailing then the various data is scrutinized carefully.
Step5. Reporting and presentation
Various graphs are drawn for the presentation and the reporting of the scrutinized data. This method is very useful for understanding and comparing the data carefully and easily.
1) CAR DETAILING WISE DISTRIBUTION OF RESPONDENTS
Respondent Yes No Total
No. 162 838 1000
16.2%
YES NO
83.8%
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The above chart shows the responses of the service. Out of 1000 surveyed people, the large portion (83.8%) of respondents are non-user of the service but there are few respondents (16.2%) are using the service. The main reason behind the non-usage of this service is unawareness.
2) GENDER WISE DISTRIBUTION OF RESPONDENTS
GENDER Male Female Total
No. 870 130 1000
GENDER
13%
87%
Male Female
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As per above chart, the ratio of male and female as a user and non-user of the service. Generally males are more interacted for such services so we get the highest ratio of male in both using (74.07%) and non-using (89.5%) this service. Females are less concerned with such service.
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3)
AGE WISE DISTRIBUTION OF RESPONDENTS
AGE 18-30 31-45 46-60 Above 60 Total
No 162 599 174 65 1000
AGE(Years)
60%
16%
17% 7%
18-30
31-45
46-60
Above 60
The above chart shows the response for the service from different age-groups. We can analyze that most of the users of the services (59.88%) are belonging form the age-group of 31-45 years & same criteria is there in non-user side(59.90%).The retired persons are having less interested in this service. We can say that people at age of 1820 years &46-60 years are almost at a same level for the usage of this service.
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4)
OCCUPATION WISE DISTRIBUTION OF RESPONDENTS
Occupation Student Business Person Service Person Profession House Wife Retired Total
No. 49 362 339 99 60 91 1000
Occupation
9% 6% 10% 5%
36%
34% Student Profession Business Person House Wife Service Person Retired
We can see in the above chart, how a particular occupation determines the usage of this service. Most of the user are belonging to business group (33.33%) and nonusers(36.75%) of this service. So we may say that the service attracts this business person. After business persons, service persons are at second position followed by retired, students, professionals and house wives in both usage and non-usage of the service.
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5) FAMILY INCOME (MONTHLY)
Family income (monthly) Up to 25,000 25,001-50,000 50,001-70,000 Above 70,000 Total
No. 227 434 253 86 1000
INCOME GROUP
43%
23%
25%
9%
Up to 25,000
25,001-50,000
50,001-70,000
Above 70,000
Here it can be seen that, the people who having income between Rs. 25,00150,000 are in majority in both using (53.7%) and non-using (41.41%) of the service followed by income group of Rs.50,001-Rs.70,000. Up to Rs. 25,000 and above Rs. 70,000 in usage as well as non-usage of the service.
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6) TYPES OF CAR
Types of car Small Medium Large Luxury Total
Respondents 271 428 229 72 1000
43 %
23 % 7% 27 %
Small
Medium
Large
Luxury
Car detailing service depends upon the category of the car. So, from the respondents, we come to know that people having medium cars are at majority in using this service. 43% people using the medium cars, in followed by small cars, large cars and luxury cars.
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7) TYPES OF CAR
Types of car Petrol Diesel Total
YES 941 59 1000
94%
Petrol Diesel 6%
The above chart shows that generally patrol cars are being used. It has majority of 94% followed by only 6% having diesel car. It means that most of the people are using petrol cars.
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8) THE CAR IS,
Types of car First Handed Second Handed Total
No. 903 87 1000
91%
First Handed Second Handed
9%
This charts tells about the car of respondents is first handed or second handed. From the chart we can analyze that most of the respondents have first handed cars, which are 91% of total respondents. On the other side there are very less no. of second handed car user is there.
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SECTION A
1) WHERE DID YOU FIND
Source Newspaper/Magazine Radio Hoardings Relatives & reference group Internet Total
80 70 60 50 40 30 20 10 0 19 6 39
TOTAL 39 19 6 79 19 162
79 Newspaper/Magazine Radio Hoardings Relatives & reference group Internet 19
It has been found that till now, most of respondents came to know about these services from, “Relatives & reference group” followed by “News papers/ magazines” “Radio” &“Internet”. It shows that promotion and advertisement are not sufficiently done in market.
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2) SPENDING FOR SERVICE
Spending for service All Internal External Total
No. 30 76 56 162
47%
all 34%
internal
external
19%
all internal external
The above chart showing which type of basic service used by the customers. We can see that 47% of respondents are using Internal cleaning followed by external cleaning and overall cleaning. It shows that people are more conscious about internal cleaning of their cars.
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3) SELECT SCHEME
Scheme Yes No Total
No 8 154 162
95% 5%
yes no
From the above graph, we may conclude that 5% of the respondents have been benefited of the schemes i.e. semi-yearly, yearly membership card schemes. As the concept is new, most of the users are not interested to take the benefit of the schemes as it involves payment prior to service.
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4) FREQUENCY OF CAR DETAILING
InTiming Onetime Two-time Three time Total
No 13 140 9 162
No. of users
86%
Onetime Twotime Threetime 8% 6% Twotime Threetime
Onetime
From the above graph we can analyzed that, around 86% users are taking these service twice in a year, followed by 8% users once in a year & 6% users thrice in a year. It means that people are not so much interested in these kind of services as it is new concept.
5) SATISFACTION LEVEL
Procedure
Highly Satisfied
Satisfied Neutral
Dissatisfied
Highly Dissatisfied
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Car Treatment Service Timing Service Charge Response of Service staff Distance
8 45 0 4 11
122 108 65 130 58
32 9 97 28 93
0 0 0 0 0
0 0 0 0 0
75.31% 66.67% 59.88% 40.12% 27.78% 19.75% 4.94% 0 0 5.5% 0 0 Service Timing
80.25%
57.4% Highly Satisfied 35.8% 17.28% Satisfied Neutral Dis-satisfied 6.8% 0 0 0 0 Distance Highly Dis-satisfied
0
0 02.47% Service Charge
Car Treatment
Response of Service staff
From the graph, we may analyzed that most of the favored respondents are satisfied with every procedure except, ‘the distance from home’ as data suggests the neutral level is highest in these procedure. But, In future, we may assume that we can get at least satisfaction level for all the services.
6) RECOMMEND THIS SERVICE
Recommend Yes No
NO. 154 8
70
5%
Yea No
95%
From the above graph we can analyzed that around 95% of favored respondents are recommending the car detailing service to their acquaintances as the users are satisfied with the service.
SECTION B
1) NOT CONSIDERED THIS SERVICE
Service Don't know about this service It's costly
No 509 153
71
Not interested in this service Any other Total
509
165 11 838
153
165 11
Don't know about this service
It's costly
Not interested in this service
Any other
From the above graph, we can represent that around 61% were respondent unaware about the CAR DETAILING services. And Around 20% respondents are not interested to avail the service. So our focus is to practice aggressive marketing which can also generate interest towards unfavored respondents.
2) IN FUTURE, WILL YOU TAKE THIS SERVICE
Service Yes No Can't say Total
No 337 325 176 838
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39% 21% Yes No 40% Can't say
From the graph, we analyzed that around 40% of unfavoured respondents are willing to obtain the Car Detailing service. We may consider them as our potential customers. Via targeting this segment, we can convert them in to our actual share market.
Findings
The sample of 1000 respondents may not represent the total population of Ahmadabad. Our research found that only 16% respondents are using the car detailing services. As our concept of CAR Detailing is new, there are around 61% respondents who were unaware about the service.
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The owners of Small car segmentation respond that this service is not affordable as it increases maintenance expenses & they do not consider these services necessary. Most of the respondents go to auto garages for carwash as many of them are either unaware or do not consider the specialized detailing services. Many of interested respondent’s feels that it is not easily accessible as the Car detailing station is far from their house.
Suggestion
To create awareness about the Car Detailing Services via using advertising as an important tool. To show differentiation between Auto garages & professional Car detailing services. To extend the distance from Fifteen kilometers for pick-up & drop services to access widely customer. To promote these services in the showroom. So that customers come to know from the beginning about these services.
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To show especially small Car segmentation group these service as necessity & how it is useful as long term prospective.
COST OF PROJECT
Cost of project
Premises Machinery Furniture Electronics other equipments Preliminary Expanses NWC Contingency TOTAL
Amount(Rs.)
9800000 559000 85300 211500 26000 318000 83000 10200 11093000
MEANS OF FINANCE
Paticulars Amount(Rs.)
75
Partners Bank loan TOTAL
5500000 5593000 11093000
STATEMENT OF MACHINARY
NAME
Steam machine Vacume cleaner Compressor Ozone machine Grinder machine Jack Machines TOTAL
QUNTITY
1 2 1 1 2 4
PRICE
250000 80000 8000 37000 45000 3500
TOTAL(Rs.)
250000 160000 8000 37000 90000 14000 559000
STATEMENT OF FURNITURE
NAME
Cabin table Cupboard Sofa set
QUANTITY
1 2 2
PRICE
3000 8000 22000
TOTAL(Rs.)
3000 16000 44000
76
Table Glass Receptionist table Revolving chair Revolving chair(Smal) Comfort chair TOTAL
1 2 1 5 7
1200 2200 2600 1700 800
1200 4400 2600 8500 5600 85300
STATEMENT OF ELECTRONICS
NAME
Computer Laptop LCD(TV) Air conditioner Printer Generator Music system Water cooler Water purifier Tea & cofee machine TOTAL
QUANTITY
2 1 1 2 1 1 1 1 1 1
PRICE
22000 30000 17000 20000 5500 48000 5000 15000 2000 5000
TOTAL(Rs.)
44000 30000 17000 40000 5500 48000 5000 15000 2000 5000 211500
STATEMENT OF OTHER EQUIPMENT
NAME
Fan Lights boards
QUAN TITY
10 10
PRI CE
110 0 300
TOTAL( Rs.)
11000 3000
77
Tubelight Fire safty equip. Telephone instalation Misc. TOTAL
12 1 2
350 300 0 150 0
4200 3000 3000 1800 26000
STATEMENT OF PRELIMINARY EXPANCES
Particular
Legal charges Initial promotion charges Market survey exp. Total
Total(Rs.)
15000 300000 3000 318000
SALARY STRUCTURE
Designation
General Manager Supervisor Receptionist(2) Accountant Foreman(8) Peon TOTAL
201112
264000 144000 186000 126000 840000 48000 1608000
2012 -13
27720 0 15120 0 19530 0 13230 0 88200 0 50400 16884 00
2013 -14
29106 0 15876 0 20506 5 13891 5 92610 0 52920 17728 20
201415
305613 166698 215318 145861 972405 55566 186146 1
2015 -16
32089 4 17503 3 22608 4 15315 4 10210 25 58344 19545 34
78
MATERIAL CONSUMPTION
PERTICULAR OP.STOCK Purchase Of Raw-Material CL.STOCK
20112012
20122013201420152013 2014 2015 2016 15000 16500 19965 0 0 0 181500 0 66000 72600 87846 600000 0 0 798600 0 16500 18150 21961 150000 0 0 199650 5 64500 0 70950 0 85849 5
RAW-MATERIAL CONSUMED
450000
780450
SALES FORCAST:Sales unit
Services
Interior + ozone + exterior Exterior + Under body coating Glass treatment + Exterior Headlight Paint Correction Anti Rust Treatment TOTAL
Small
54 36 33 15 27 22 187
Medi um
106 81 73 25 33 83 401
Large
118 102 61 32 44 59 416
Luxuri ous
54 32 29 18 10 41 184
TOTAL( Rs.)
332 251 196 90 114 205 1188
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Sales Price
SERVICES
Interior + ozone + exterior Exterior + Under body coating Glass treatment + Exterior Headlight Paint Correction Anti Rust Treatment
Small
1400 1850 1150 800 5600 2500
Medi um
1680 2220 1380 960 6720 3000
Large
1820 2405 1495 1040 7280 3250
Luxuri ous
1960 2590 1610 1120 7840 3500
Sales force
SERVICES
Interior + ozone + exterior Exterior + Under body coating Glass treatment + Exterior Headlight Paint Correction Anti Rust Treatment TOTAL
Small
75600 66600 37950 12000 15120 0 55000 39835 0
Medi um
17808 0 17982 0 10074 0 24000 22176 0 24900 0 95340 0
Large
214760 245310 91195 33280 320320 191750 1096615
Luxuri ous
105840 82880 46690 20160 78400 143500 477470
TOTAL( Rs.)
574280 574610 276575 89440 771680 639250 2925835
Jumbo combo pack
Sales price
80
Services
Inerior Cleaning Exterior Wash Ozone Treatment Under Body Coating Glass Treatment Headlight Total Sales Price
Small
750 200 150 1300 800 700 3900
Medi um
900 240 180 1560 960 840 4680
Larg e
975 260 195 1690 1040 910 5070
Luxuri ous
1050 280 210 1820 1120 980 5460
Sales forecast
Particulars
No.of cars Sales price Sales Force
Small
91 3900 354900
Medi um
178 4680 83304 0
Larg e
358 5070 1815 060
Luxuri ous
45 5460 245700
TOTAL( Rs.)
672 3248700
Tie up
Particulars
No.of cars Sales price Sales Force
Small
67 3400 227800
Medi um
105 4080 42840 0
Larg e
114 4420 5038 80
Luxuri ous
14 4760 66640
TOTAL( Rs.)
300 1226720
81
DEPRECIATION
2011 -12
Particular Machinery Furniture & fixtures Laptop/computer Basic cost 55900 0 85300 74000 rate of dep.(%) 15% 10% 60% amt of dep 83850 8530 44400 WDV 47515 0 76770 29600
2012 -13
amt of dep 71273 7677 17760 WDV 40387 8 69093 11840
82
Electronic items Business premises TOTAL
13750 0 98000 00 10655 800
15% 10%
20625 98000 0 11374 05
11687 5 88200 00 95183 95
17531 88200 0 99624 1
99344 79380 00 85221 54
201314
amt of dep 60582 WDV 34329 6 62184 4736 84442 71442 00 76388 58
2014 -15
amt of dep 51494 6218 2842 12666 71442 0 78764 1 WDV 29180 1 55965 1894 71776 64297 80 68512 17
2015 -16
amt of dep 43770 5597 1137 10766 64297 8 70424 8 WDV 248031 50369 758 61009 578680 2 614696 9
PRELIMNAR Y EXPENCES
Particulars
TOTAL EXPENCES WRITTEN OFF EVERY YEAR
6909 7104 14902 793800 883296
201112
318000 63600 254400
201213
254400 63600 190800
20132014201514 15 16
190800 63600 127200 127200 63600 63600 63600 63600 0
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ADVERTISEMENT BUDGET
(YEAR-2011-2012)
PERTICULAR
COST
FREQ.(p.a.)
TOTAL COST
NEWS PAPER Times of India
20cm,4th page, 2times in a month Divya Bhaskar 10 cm, last page, 1 time in a month 25000 22000 6 4 150000 88000
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MAGAZINES Business Today HOARDINGS Satellite S.g. Highway RADIO 98.3 Radio Mirchi LEAFLETS 25000 copies*0.80 Rs.,Distri. In 2 months Comission(120 Rs. For 1000 copies) TOTAL
15000
3
45000
200000 100000
1 1
200000 100000
120 per second
20sec.*50times
120000
20000 3000
6 6
120000 18000 841000
PROFIT AND LOSS ACCOUNT (IN RS.)
2011 -12
29258 35 32487 00 12267 20 74012 55
YEARS
Total Revenue
Services Jumbo pack Tie-up TOTAL
2012 -13
32184 19 35735 70 13493 92 81413 81
2013 20142015 -14 15 -16
35402 60 39309 27 14843 31 89555 18 389428 6 432402 0 163276 4 985107 0 42837 15 47564 22 17960 41 10836 178
85
Expances
Material Consumed Wages & Salary Bonus Electricity Consumption DEPRECIATION Business Premise Machinary Furniture Other Equipm. Computer/Laptop INSUR. Store Repairs Fuel on Generator BANKCH. Muncipal Taxes Communication News Paper & Magazine AUDIT Fee Stationary Printing Misce. Exps. Advertisement Promotion medical treatment SUB-TOTAL OPERATING PROFIT BEFOR INT. LESS: Int.On Loan LESS: Int.On Capital 45000 0 16080 00 13400 0 18000 0 98000 0 83850 8530 20625 44400 10359 0 38000 20000 5000 2000 30000 12000 6000 12000 4800 12000 84100 0 13000 0 6000 47317 95 26694 60 67116 0 33000 0 16683 00 64500 0 16884 00 14070 0 19800 0 88200 0 71273 7677 17531 17760 10359 0 39900 21000 5500 2100 31500 13200 6300 12600 5040 12600 92510 0 13650 0 6300 49895 71 31518 10 60444 0 33000 0 22173 70 70950 0 17728 20 14773 5 21780 0 79380 0 60582 6909 14902 7104 10359 0 41895 22050 6050 2205 33075 14520 6615 13230 5292 13230 10176 10 14332 5 6615 51604 53 37950 65 53772 0 33000 0 29273 45 780450 186146 1 155122 239580 85849 5 19545 34 16287 8 26353 8 64297 8 43770 5597 10766 1137 10359 0 46189 24310 7321 2431 36465 17569 7293 14586 5834 14586 12313 08 15801 6 7293 56204 84 52156 93 40428 0 33000 0 44814 13
714420 51494 6218 12666 2842 103590 43990 23153 6655 2315 34729 15972 6946 13892 5557 13892 111937 1 150491 6946 537175 0 447932 0 471000 330000 367832 0
OPERATING PROFIT AFTER INT. OTHER NON-OPERATIVE EXP. Preliminary Expances Written of
63600
63600
63600
63600
63600
86
PROFIT BEFORE TAX
16047 00 48141 0 11232 90 22465 8 30000 86863 2
21537 70 64613 1 15076 39 30152 8 35000 11711 11
28637 45 85912 4 20046 22 40092 4 40000 15636 97
361472 0 108441 6 253030 4
44178 13 13253 44 30924 69 61849 4 50000 24239 75
LESS: TAX PAID
NET PROFIT
GENERAL RESERVE P&L Bal. PROFIT DIST.
506061 45000 197924 3
BALANCE-SHEET (IN RS.)
YEARS
Particulars (A) Sources of Fund Partners capital Reserves and Surplus Opening balance P&L a/c General reserve Closing balance Secured loans TOTAL SOURCES OF FUND
20112012
20122013
20132014
20142015
20152016
5500000
550000 0
550000 0
550000 0 103211 0 45000 506061 158317 1 336900 0 104521 71
550000 0 158317 1 50000 618494 225166 5 281300 0 105646 65
0 30000 224658 254658 5037000 1079165 8
254658 35000 301528 591186 448100 0 105721 86
591186 40000 400924 103211 0 392500 0 104571 10
87
(B) Application of Fund Gross block of asset Fixed Asset Less: Depreciation Net block of asset Other equipments Total fixed asset Current assets, loans and advances Stock Cash & Bank balance Total current asset Less: Current Liabilities and Provisions Out standing electricity biils(1 month) Out standing telephone biils (2 months) Total current Liabilities Net current asset Preliminary expenses not written off TOTAL APPLICATION OF FUND 1065580 0 1137405 9518395 26000 9544395 951839 5 996241 852215 4 26000 854815 4 852215 4 883296 763885 8 26000 766485 8 763885 8 787641 685121 7 26000 687721 7 685121 7 704248 614696 9 26000 617296 9
150000 859863 1009863
165000 168693 2 185193 2
181500 250412 3 268562 3
199650 333433 1 353398 1
219615 419697 1 441658 6
15000 2000 17000 992863 254400 1079165 8
16500 2200 18700 183323 2 190800 105721 86
18150 2420 20570 266505 3 127200 104571 10
19965 2662 22627 351135 4 63600 104521 71
21962 2928 24891 439169 6 0 105646 65
88
CAPITAL-BUDGET
WEIGHTED AVERAGE COST OF CAPITAL
RATE 6% 12% YEAR 2011-12 2012-13 2013-14 2014-15 2015-16 TOTAL
xi
Wi
5500000 330000 5593000 671160 11093000 1001160 PAT DEPRECIATION PRE. EXP. 11232290 1137405 63600 1507639 996241 63600 2004622 883296 63600 2530304 787641 63600 3092469 704248 63600 10258324
CFAT 2324295 2567480 2951518 3381545 3860317 3017031
CUM. CFAT 2324295 4891775 7843293 11224838 15085154
D.R. AT 9% 0.917 0.841 0.772 0.708 0.649
DISC.CFAT 2131379 2159250 2278572 2394134 2505346 11468680
Ko=1001160/11093000*100
89
= 9%
1) ARR:=AVG. PAT / INVESTMENT*100 =2051665/11093000*100 =18.49%
Interpretation:As ARR is positive and greater than NPV. So the project is accepted.
90
(2)Payback Period:Total investment (Cost of project) = 11093000 Amount recovered in 3rd year = 7843293 Amount left to be recovered after 3rd year =3249707 Time period of recovery of remaining amount = 0.96 Payback Period = year before full recovery amount + unrecovered amount/cash inflow of that year = 3+3249707/3381545 = 3.96 = 4years Criteria for selection of projectroject with least payback period is preferred first. Interpretation:Our total investment will be recovered within 3.039 years.
(2)Net Present Value:91
NPV = Present value of cash inflow – Present value of cash outflow = 11468680-11093000 = 375680 Criteria for selection of project:If NPV is Positive, project is selected If NPV is zero, it is indifferent situation you can select it or reject it taking into account other factor. If NPV is Negative, project is rejected. Interpretation:As our NPV > 0 i.e. it is positive so it is acceptable.
(3)Profitability Index (PI)I = Present value of cash inflow/Present value of cash outflow
92
= 11468680/11093000 = 1.034 Criteria for selection of project:If PI > 1, project is accepted. If PI < 1, Project is rejected. Interpretation:As our PI > 1, the project is feasible.
(4)Internal Rate of Return:CFAT DIS RATE@9% DIS CFAT DIS RATE@12% DIS CFAT
2324295
0.917
2131379
0.892
2073271
93
2567480
0.841
2159250
0.797
2046281
2951518
0.772
2278572
0.711
2098529
3381545
0.708
2394134
0.635
2147281
3860317
0.649
2505346
0.567
2188800
3017031
11468680
10554162
Fack payback period = Investment or cash outflow/Average cash inflow = 11093000/3017031 = 3.677 IRR = Lower rate + NPV at lower rate/NPV at lower rate –NPV at higher rate * higher rate-lower rate = 9% + (375680/914518)*(12%-9%) = 9% + 0.41% = 9.41% Interpretation:-
94
AS IRR is positive , Project is feasible
BREAK EVEN SALSE (IN RS.)
Particular
Total revenue Variable cost Stores Electricity Repairs Material consume Fuel on generator Total variable 38000 18000 0 20000 45000 0 5000 69300 39900 19800 0 21000 64500 0 5500 90940 41895 21780 0 22050 70950 0 6050 99729 43990 23958 0 23153 78045 0 6655 10938 46189 26353 8 24310 85849 5 7321 11998
201112
74012 55
201213
81413 81
201314
89555 19
201415
98510 70
201516
10836 177
95
cost Contribution Fixed expenses Wages & Salary Bonus Depreciation Insurance Bank charges Communication News Paper&Magazine Audit Fee Stationary & Printing Misce. Advertisement Promotion Medical treatment Int. on loan Int on capital Preliminary Expanses Tax paid Total fixed cost
0 68582 55 16080 00 13400 0 11374 05 10359 0 2000 12000 6000 12000 4800 12000 84100 0 13000 0 6000 67116 0 33000 0 63600 48141 0 55849 65 90.63 672 90.64 % 61617 00
0 74411 81 16884 00 14070 0 99624 1 10359 0 2100 13200 6300 13200 5040 12600 92510 0 13650 0 6300 60444 0 33000 0 63600 64613 1 57243 42 88.82 99 88.83 % 64441 54
5 82149 64 17728 20 14773 5 88329 6 10359 0 2205 14520 6615 14520 5292 13230 10176 10 14332 5 6615 53772 0 33000 0 63600 85912 4 59536 02 88.86 39 88.86 % 66999 80
27 90271 25 18614 61 15512 2 78764 1 10359 0 2315 15972 6946 15972 5557 13892 11193 71 15049 1 6946 47100 0 33000 0 63600 10844 16 62269 39 88.89 63 88.90 % 70044 31
53 99578 77 19545 34 16287 8 70424 8 10359 0 2431 17569 7293 17569 5834 14586 12313 08 15801 6 7293 40428 0 33000 0 63600 13253 44 65438 56 88.92 73 88.93 % 73584 34
P/V Ratio
Break even sales
96
CASH FLOW STATEMENT
Particulars (A)CASH FLOW FROM OPERATING ACTIVITIES Net Profit Add: Depreciation Priliminary Expenses w/off Income Tax General reserve P&l a/c Interest on capital Net increase/decrease in asset Less: Net increase in current asset Add: Net decrease in cuurent asset Add: Net increase in cuurent liabilities Less: Net decrease in currentliabilities cash flow from operating activity Less: Income tax paid
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
1123290 1137405 63600 481410
1507639 996241 63600 636131
2004622 883296 63600 859124
2530304 787641 63600 1084416
3092469 704248 63600 1325344
330000 -150000 0 17000 3002705 -481410
330000 -15000 1700 3530311 -636131
330000 -16500 1870 4126012 -859124
330000 -18150 2057 4779868 -1084416
330000 -19965 2264 5497960 -1325344
Net cash flow from operating activty
(B)CASH FLOW FROM INVESTMENT ACTIVITY Investment in fixed asset Increase in contingency
2884180 2521295
3266888
3695452
4172616
-10681800
0
0
0
0
97
Preliminary expenses
-318000
0
0
0
0
Net cash flow from investment activties
(C)CASH FLOW FROM FINANCE ACTIVITY Loan taken from bank Capital of Partners Less: Interest on capital Less: Share in profit Add:share in profit invested by partners Repayment of Loan
-10999800
0
0
O
0
5593000 5500000 -330000 -868632
0 -330000 -1171111
0 -330000 -1563697
0 -330000 -1979243
0 -330000 -2423975
-556000
Net cash flow from finance activities
NET CASH INFLOW (A+B+C) Add: Opening balance Closing balance
-556000 -2057111 827069 859863 1686932
-556000
-556000
-556000
-2449697
817191 1686932 2504123
-2865243
830208 2504123 3334331
-3309975
862640 3334331 4196971
9338368
859863 0 859863
98
RATIO ANALYSIS (IN RS.)
Particular 201 1-12 201 2-13 201 3-14 201 4-15 201 5-16
PROFITABILITY RATIO
NET PROFIT RATIO(%)
=(NET PROFIT/SALES)*100
15.1 8
18.5 2
22.3 8
25.6 9
28.5 4
OPERATING RATIO(%)
=(PBIT/SALES)*100
36.0 7
38.7 1
42.3 7
45.4 7
48.1 3
CASH PROFIT RATIO(%)
=[(PAT+DEPRICIATION)/SALES]*100
30.5 5
30.7 5
32.2 4
33.6 8
35.0 3
RETURN ON INVESTMENT(%)
=(PBIT*100)/(TOTAL ASSETSMISC.EXPENSES)
25.3 3
30.3 6
36.7 3
43.1 8
49.3 7
EFFICIENCY RATIO
FIXED ASSETS TURNOVER RATIO =SALES/FIXED ASSETS TOTAL ASSET TURNOVER RATIO =(SALES)/(TOTAL ASSETS-MISC.EXP.) SOLVANCY RATIO PROPRIETOR'S RATIO(%) =PROPRIETOR'S FUND/TOTAL ASSET0.69 0.77 0.86 0.78 1.05 0.87 1.29 0.95 1.58 1.02
0.52
0.54
0.56
0.57
0.58
99
MISC.EXP
COVERAGE RATIO
INTEREST COVERAGE RATIO =PBIT/INTEREST ON DEBT DEBT SERVICE COVERAGE RATIO =(PAT+DEPRECIATION+INTEREST+PRELIMIN ARY EXP)/(INSTALLMENT+INTEREST) 3.98 5.21 7.06 9.5 12.9 0 4.44
2.44
2.73
3.19
3.52
LIQUIDITY RATIO
CURRENT RATIO =CURRENT ASSET/CURRENT LIABILITIES LIQUID RATIO =LIQUID ASSETS/ LIQUID LIABILITES DEBT EQUITY RATIO =DEBT / EQUITY 59.4 0 50.5 8 0.92 99.0 3 90.2 1 0.76 130. 56 121. 74 0.61 156. 18 147. 36 0.5 177. 44 168. 62 0.36
ANALYSIS
100
Net Profit Ratio
22.38 15.18 18.52 25.69 28.54
2011-12 2012-13 2013-14 2014-15 2015-16
Interpretation: The firm’s net profit ratio is continuously increasing. It shows the firms capability to increases revenue from its business.
Operating Ratio
42.37 36.07 38.71 48.13 45.47
2011-12 2012-13 2013-14 2014-15 2015-16
Interpretation: Operating profit of the firm is continously increasing over the five years, but it dose not increase with more margins because of increses in revenues expenses in the all year
101
ROI
49.37 43.18 25.33 30.36 36.73
2011-12 2012-13 2013-14 2014-15 2015-16
Interpretation: The return of investment indicates that the earning capacity of the firm through the amount invested as the revenue generation increases year by year and the percentage of return on investment increses from year to year as 1st year return on invrstment is 25.33% and 2nd year it is 30.36%, that indicate increment of 5.03% and like wise in second years it incerase 6.37%, in 3rd year in shows increment of 6.45% and in 4th year it increases by 6.19%.
Current Ratio
177.44 99.03 59.4 2011-12 2012-13 2013-14 2014-15 2015-16 130.56 156.18
INTERPRETATION:
102
The current ratio shows the working capital position of the company. Ideal current ratio is 2:1 but the above ratio’s are around 59 to 177 which is above ideal ratio but justifiable in our industry.\
Debt Equity Ratio
0.92 0.76 0.61 0.5 0.36
2011-12 2012-13 2013-14 2014-15 2015-16
Interpretation: Our debt equity ratio is decreasing every year continuously which is a good sign for any business.
INTEREST COVERAGE RATIO
3.98 5.21 7.06 9.51 12.9
2011-12 2012-13 2013-14 2014-15 2015-16
Interpretation: Our Interest coverage ratio is increasing every year continuously which is a good sign for any business.
103
SWOT ANALYSIS
A ‘SWOT’ analysis is required to check the firm’s Strength, Weakness, Opportunity and Threats which are there in the external environment. It will give the overall idea about competitors and current situation of the firm. Strength and Weakness are the internal characteristics that can be improved by the firm, while Opportunities and Threats are the external factors which will predict the current condition of the firm to make decision.
104
Strengths
It require very little time Well trained employees. Price is kept that it should be in the range of everyone’s purchases. Good quality services. It’s give a car shiny and new look
Weaknesses
Single outlet at one place. Investment made in research and development is very low. It is not a well know service It is little bit costlier than hand car wash. The need to have a fairly constant volume of business to support the necessary service staff.
Opportunities
Big potential market as only few firm provides this service. Participation within a steadily growing industry. The ability to decrease the fixed costs as a percentage of an individual sale as volume increases. There is a scope of expansion of new branches
Threats
105
Future/ potential competition from a franchised firm. A slump in the economy, reducing discretionary spending. The perception that there is not a difference in quality between a hand and machine wash.
Conclusion
Our feasibility project on establishing car spa has had an effect on us which transgresses beyond mere analysis of relevant factors. It has been an experience which has enlightened and enabled us to be better in terms of our pool of knowledge. We truly felt that we know and understand things better than we used to yesterday as far as this industry is concerned. Considering that we had a change of topic midway due to justifiable reasons, we were hard-pressed for time but we took it as a challenge and it helped all of us to give it our best shot in the time given which also taught us important lessons in time management, multi-tasking, understanding group dynamics and to unlock the otherwise esoteric lock of financial feasibility which we would always cherish in our life—the times we felt utterly petrified and confounded when we couldn’t get our figures right and suddenly had an EUREKA MOMENT when we finally sorted out the numerical. Finally, the result of this feasibility project is ? It is feasible with profits surging every year. All the factors considered for evaluation yielded highly positive results. ? As far as the financial aspects are considered, the profitability shows a continuous upward trend. ? As far as the survey was considered, we found that the no. of respondents of oursurvey.We would have to address this concern by targeting our marketing efforts at them in a much more convincing way. We again, would like to “H2O” car spa center that we visited for the guidance purpose which had provided us practical knowledge.Weare also thankful to the faculties who have guided us at every junction in this journey.
106
AT last we would like to conclude by summing up in this way:
“IT IS GOOD TO HAVE AN END TOWARDS A JOURNEY;
BUT IT IS THE JOURNEY THAT MATTERS IN THE END.”
107
Future Expansion
1) To take care of every need and to provide the best services to our customers, we are going to upgrade our existing plant with the latest technology by importing latest machinery from Japan and Germany. 2) Considering the overwhelming response from our customers and to take care of the need of the customer of different areas of the city, we are going to open 2 branches in the city by the end of October, 2011. 3) We are also looking for widening our client base across the state by opening 5 new branches in the different parts of the state. 4) In the next fiscal year, we are planning to start our mobile van services that can carter the need of the customers of the remote areas. 5) We are also planning to start some entertainment services like internet café, coffee café for our valuable customers to spend their waiting time. We are also going to equip with the technology that reduces the waiting time of our valuable customers.
Bibliography/Webography
www.google.com www.alibaba.com www.trademy.com
108
www.toolsmachine.com www.chemicalguys.com
Assumptions Underlying
? ? ? ? ? ? ? ? ? ?
There are 300 working days in the year. Purchase of raw material will increase @ 10% every year. Closing stock will be 25% of purchase price. Salary will increase @5% every year. Workers will be given holiday on Tuesday. Preliminary expenses are to be written off in 5 year. Loan is taken from SBI @12% p.a. The period of loan is 10 year. Raw-material is purchased in every 3 month. Profits are to be distributed among partner equally.
109
? ? ? ?
Interest on capital and profit are to be taken over by partners. Tax rate will be 30% flat rate. Revenue will be increased by 10% in every year. There are 5% increase in stores, repairs, bank charges, municipal taxes, newspapers, audit fees and stationary expenses, in every year. ? There is 10% increase in electricity, advertisement, and communication expenses. ? As cash on hand is high, it can be invested.
110
doc_842984538.docx
Auto detailing, is the performance of an extremely thorough cleaning, polishing and waxing of an automobile, both inside and out, to produce a show-quality level of detail. Besides improving appearance, detailing helps to preserve resale value of a car.
Project at a glance
Name of the industry
Location
Splaash car (spa)
4, 5, 6 Iscon Plaza, Opp. Star India Bazaar, Nr. Sundarvan, Satellite Road, AHMEDABAD-380015 Car detailing
Nature of Industry
Date of Incorporation
1st April, 2011
Cost of Project
Rs.11093000
Means of Finance
Rs.11093000
Payback Period
4Years
Average Rate of Return
18.49%
Internal Rate of Return
9.41%
1
Reasoning
1) The car spa (detailing) business is booming right now with low operating expenses and a very pleasing net profit. 2) The car detailing business offers an opportunity to earn an excellent income. 3) Now a days modern people are very busy and they often neglect to clean their car. 4) It is one step ahead then the auto garage service. It is a luxury way to take care of car. 5) People are more conscious about the beauty of the car. 6) Car spa (detailing) will not only ensure that your car looks attractive but also the paintwork, bodywork and interior of the car remain in good condition for longer period of time. That’s the reason of consuming this service.
2
INTRODUCTION OF CAR DETAILING (SPA)
"Car Detailing” is a popular name for what essentially is a full-service Car wash. Some Car detailing (SPA) provides more upscale services than traditional Car washes, but in many cases, the services are similar. Car Detailing SPA) provides washing, waxing, interior cleaning and Car detailing services. The specific services and methods that Car Detailing (SPA) offers vary between businesses. One Car Detailing (SPA) might do everything by hand, using soft, lint-free cloths or sheepskin mitts to wash Cars and perform hand waxing and polishing. Another Car Detailing (SPA) might use tunnel washers or other automated equipment to wash and spray on wax and polish. Some Car Detailing (SPA) offers both hand cleaning and automated washing services, with a higher price for hand cleaning, which involves more workers. Other services provided by many Car Detailing (SPA) includes cleaning and dressing tires, cleaning interior windows, deodorizing, underbody flushing and more. Most of the Car Detailing centers combine services into detailing packages, such asbronze, silver and gold levels. In addition to this some Car Detailing (SPA) has Carte menus for customers to pick and choose specific services, in addition to providing package services. Some Car Detailing(SPA)take a one-stop-shopping approach, offeringpreventive maintenanceservices in addition to standard cleaning of Cars. Oil changes, replacement of fuel andair filtersand flushing of radiators and transmissions are some examples of maintenance services that might be provided. Other service provided by Car Detailing (SPA) includes dent removal,window tinting, windshield repair andupholsteryrepair. At a Car Detailing (SPA), the waiting area for customers might be comfortably basic or more luxurious, depending on the individual business and its clientele. At the basic end, complimentary coffee andteamight be provided, along with magazines and television. Car Detailing (SPA) at the more luxurious end of the spectrum might have waiting areas with leather or other cushioned chairs, flowing fountains and children's play areas with toys, snacks and more.
3
HISTORY
With the modern convenience of touch less automaticcarwashes, it may be difficult to remember that the industry was not always so high-tech. Though other commercial car washes came before it, the first semiautomatic car wash in the United States made its debut in 1946, and from there the industry has grown in both size and sophistication
The First Car Washes
One of the first commercial car washes appeared in Detroit in 1914, where two businessmen started a manual car wash. It required the customer's car to be pushed around a circle to different stations, where it went through the various stages of washing. Before the first automatic car wash opened, there were only about 32 drivethrough car washes across the United States, according to the International Car Wash Association.
Going Automatic
Around 1928, car wash engineers pioneered the idea of a car wash in which the car would be pulled by a mechanism that attached itself. The idea came to fruition in 1946, when the first semiautomatic car wash appeared in Detroit. Though the car was pulled by a machine, the car was scrubbed by manually operated brushes. Dan Hanna In 1955, while on vacation in Mexico, Dan Hanna, Sr., stayed in a motel located across the street from a car wash. The mechanically-minded Hanna became very interested. He studied the car wash’s operation and visited extensively with the owner/operator. He returned to his home town of Portland, Oregon, and with money his mother obtained by mortgaging their home, Hanna opened his first Rub-A-Dub car wash in Milwaukie, Oregon. This led to the creation of Hanna Enterprises. Two years later, he opened his second wash and ultimately had 31 successful Rub-A-Dub car washes operating in the Portland area.
4
In 1959, Hanna tinkered with and tested his wash rack until he had a working model of the first mechanized car washing system. Word spread about Hanna’s machine, and he began to put them in other people’s car washes. In 1993, a Texas venture capital group brought about the merger of two industry giants — Hanna Industries and Sherman Carwash Company. The merged companies became HannaSherman International, Inc. and had a large focus on international markets. Hanna first expanded in the Far East (Korea and Thailand) and emerging markets (including China, Russia and Eastern Europe). Hanna also increased activity in Germany, Ireland, Latin America and Southeast Asia. International growth flourished throughout the 1990s, making Hanna the most global car wash manufacturer in the industry.
Organization
Also in the 1950s, several dozen car wash professionals gathered and formed the Automatic Car Wash Association. Today the organization is known as the International Carwash Association, and it represents the industry with monthly newsletters, government relations and an annual expo. The International Carwash Association estimates that approximately 22,000 car washes worldwide now employ around 500,000 people.
IN INDIA
In India, carz spa was the first car detailing firm providing various car detailing services. Now, even the well know company 3M’s has launched a car detailing service firm. This is because as per the recent surveys and analysis made by several organizations, the estimated number of new luxury cars sold annually in India is about 2500. Although it may look quite minuscule in terms of the total 1.7 million cars sold in India, but the luxury car industry has been growing at a rate of about 15% annually. Hence there is potentiality of business growth in car detailing industry. Perhaps, 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.
5
PestAnalysis
Managers have to perform their functions in the organization. The systematic approach of managing suggests that an organization has to work within the framework provided by the society and its various constituents. These constituents are combined to constitute environment for a given organization. A scan of external (macro) environment in which the firm operates can be expressed interms of the following factors; Political factors Economical factors Social factors Technological factors
Political Environment
Political environment includes government regulation and legal issues under which the firm will operate. Political stability and political parties Government administration Tax policy Licensing policy
Legal Environment
The laws relating to workers and their problems are as follows: Industrial Dispute Act, 1957 Payment of Wages Act, 1936 Workman Compensation Act, 1923 As such there is also one legal issue relating to pollution. However, the machines of our firm will be eco-friendly and as per the prescribed rules and regulation of the pollution board. We will only use those chemicals which are lab tested and approved by the top car manufacturer.
6
Economic Environment
Economic factors affect the purchasing power of potential customers andthe firm’scost ofcapital. Wehave considers the following economical factors; Demand and supply of the service Nature and intensity of the competition Inflation or deflation in the economy These are very important factors which should be considered in macro economy. Most important is the demand of car detailing is increasing, the competition will also increase. Many new competitors may also come due to the good potential market.With the accelerating new car sales and changes in customer lifestyle and aspirations, there is a growing awareness and opportunity in car detailing, that is why the demand of car detailing is increasing day by day.
SocialEnvironment
Social factors include demographic and cultural aspects which affect the customer’s needs and the size of the potentialmarket. Wehave also taken into consideration factors like:
Population growth Age distribution Change in income Expectations of the society Customs and traditions Labour’smobility and Technicalknowledge.
Technological Environment
Technological factors can reduce minimum efficient production level and influence outsourcing decision.
1. Technological innovations are introduced for higher productivity, lower cost
and morerevenue.
7
2. Technology refers to sum total of knowledge providing way to do things. 3. Our organization gives constant consideration to the manner in which
innovations may affect our service and also our internal operational efficiency.
4. The firm that moves with latest technology can excel thegrowth thatis why
our firm SPLAASH has decided to install the latest machineries.
8
PARTNERSHIP DEED
Date and time
This agreement of partnership deed executed on 1st April, 2011.
Address of Partners Name & Addresses
NAME OF PARTNERS AKSHAY GANDHI BINDIYA PARMAR ADDRESS C-203,Suvidhi Appt., Jivaraj Park, Ahmedabad 1003/A/1 Vijaynagar Society, Near Ved mandir, Kankaria road, Ahmedabad-380022 H/4 Prabhakar Flates, Nr. ChinmayTower, Gurukul,Ahmedabad31,Arpan Society, Nr. Mayur High School, Naranpura, Ahmedabad-380013 D/21 Dev city, R.C. Technical road, Ghatlodia, Ahemedabad-380061
CHANDNI PATHAK
KRINA PATEL
KAUSTUBH PATEL
9
Preamble
We, the above partners have come together to carry on the business of car detailing service as from 1st April, 2011 and the terms and conditions of the partnership agreed upon are hereby in writing.
A. NAME
The business of the firm will be carried on under the name “Splaash”. However the partners shall be entitled to change the name of the firm as agreed upon.
B. BUSINESS OF PARTNERSHIP
The business of the firm will be to provide Car detailing services to the customers.
C. DATE OF COMMENCEMENT
The date of commencement of partnership is 1st April, 2011.
D. PLACE OF BUSINESS
The principal place of the business of the firm will be at 4, 5, 6Iscon Plaza, Opp. Star India Bazar, Nr. Sundarvan, Satellite Road, AHMEDABAD-380015 But the partners will have liberty to shift it to any other place and to open branch or branches at any other place or places as may be agreed upon.
E. DURATION
Time duration of business is not fixed. It is the form of “Partnership at Will”.
F. CAPITAL
The initial capital of the firm will be Rs.5500000 equally contributed by all 5 partners.
G. DRAWINGS
10
Drawings can be made by the partners as many times as they wish in the year by taking into account the respective accounts.
H. INTEREST
Wewill be giving the interest of 6% on capital to the partners and we will be charging the interest of 6% on drawings of partners.
I. SHARE IN PROFIT OR LOSS
Profit or loss of the firm will be shared equally among all the partners.
J. BORROWINGS POWER
The firm shall be entitled to secure deposits, borrow money & seek loans from any banks, corporate & non-corporate bodies and financial institutions. Firm can also take loan from the partners, if required.
K. ACCOUNTS
The books of accounts of the firm will be closed once in a year preferably from April 1 to March 31.
L. BANK ACCOUNTS
The bank account of the firm will be openedand maintained in SBI, at Satellitebranch in the name of the firm only, which would be handled by 2 partners as agreed by all the partners. They shall be authorized to avail all type of facilities in the name of the firm that are generally allocated by the banks. They shall be authorized to appoint any person to operate bank accounts of the firm by way of Power of Attorney by discussing among all the other partners.
M. DISSOLUTION
Death and disability or retirement of any partner(s) will not be result into dissolution of the partnership; the remaining partners will be entitled to carry on the partnership with or without taking the nominee(s) of the deceased or disabled partner(s).
N. DEATH OR DISABILITTY
11
In case of death or disability of any partner(s), the nominee(s) of such partner shall be taken into the partnership. The partners are free to change the aforesaid nominee(s) from time to time by notifying the same to other partner.
O. MODIFICATIONS
The partners will be entitled to modify above specified terms of the partnership related to interest, remuneration etc. by executing the supplementary partnership deed. The modified deed will be applicable from the first day of the accounting year in which it is executed.
P. ARBITRATION
Any dispute arising among the partners during the continuation of the partnership will be referred to the arbitration. For that the provisions of “Indian Arbitration Act, 1940” will be applicable.
Q. AMENDMENTS & ALTERATION
The partners will by mutual or oral agreement is at a liberty to amend, alter, vary or add to the aforementioned terms and conditions.
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R.RIGHTS & DUTIES OF THE PARTNERS RIGHTS OF THE PARTNERS
Each & every partner has a right to take part in day to day activities of firm. Each & every partner has a right to inspect books of account of the firm. Each and every partner has a right to express his opinion. Each and every partner has a right to have share in the profit of the firm. Each and every partner has a right to receive interest on the loan and capital contribution made to the firm. Each and every partner has a right to be indemnified by the firm.
DUTIES OF THE PARTNERS
Each and every partner is liable to deal honestly in the business of the firm. Each and every partner is liable to work hard & with dedication to achieve the common goal of the firm. Each and every partner is liable to make sure that assets of the firm will be protected & will be used in productive manner. Each and every partner is liable to indemnify the firm in case of any loss occurs to the firm due to his misconduct. No partner is allowed to transfer his interest in the firm without the common consent of other partners.
We hereby, after hearing all the terms and conditions of the partnership put our hands to this deed on the said date, month, year.
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FORM ‘H’ (Seerule 17) CERTIFICATE OF REGISTRATION THE INDIAN PARTNERSHIP ACT, 1932 (Act No. IX of 1932) Registration No. 237/GUJ/AMD32
It is certified that a firm by nameSPLAASHwith its head office at4, 5, 6 Iscon Plaza, Opp. Star India Bazaar, Nr. Sundarvan, Satellite Road, AHMEDABAD-380015has this day been duly registered under the Indian Partnership Act, 1932 (Act No. IX of 1932) Give under my hand this day of 10/03/2011
Registrar/Assistant Registrar of Firms Ahmedabad
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WHAT IS TECHNICAL FEASIBILITY ?
Technical Feasibility study assesses the details of how a product or services will be delivered (i.e. material, labour, transportation, where the business will be located, technology needed etc.). A technical feasibility study is an excellent tool for troubleshooting and ling-term planning. In some regards it serves as a flow chart of how products and services evolve and move through business to physically reach to market.
Water Supply
As water is basic necessary for our service, we must require regular supply of water. At Iscon Square, there is full supply of water. So it is appropriate for us. If there are problem of water supply from corporation, we have engaged a water tank for storage of water.
Electricity Supply
Our machineries are electrical. So it is required that the supply of electricity never gets down in working hours. We have electricity connection from Torrent Power. If there is power cut of electricity, we have provided generator to produce electricity and keep the work continue.
Communication
There are many telecom companies are available in the area, we have selected BSNL for landline connection and for broadband service to keep contact with our valuable customers. We also have our own websiteto interact with our customers.
Selection of Location
Why we selected this place is an important question because, the place at which all basic requirements of service can be fulfilled should be selected. So by keeping it in mind we have selected this place for providing our service. The basic tworeasons for the same are: Availability of utilities. There area is heart of the city and having very famous malls nearby.
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FURNITURE & FIXTURE
IBnn In Rs. Particulars Sofa set Table Glass Cabin Table Receptionist Table Cupboard Revolving Chair (small) Revolving Chair PlasticChair Light board Wall Clock Notice board Suggestion box Fans AC Tube light Tea &coffee machine Water Cooler Water purifier Total Quantity 3 1 1 2 4 5 1 6 10 4 1 1 10 1 12 1 1 1 Price 12000 1300 3000 1800 7000 1700 2600 250 300 250 200 100 1100 20000 350 5000 15000 2000 Total 36000 1300 3000 3600 28000 8500 2600 1500 3000 1000 200 100 11000 20000 4200 5000 15000 2000 Rs.146000
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MISCELLANEOUS ASSETS
INIn Rs. Particulars Laptop Computer LCD Printer Generator Air conditioner Music System Total Quantity 1 2 1 1 1 2 1 Price 30000 17000 17000 3000 48000 20000 5000 Total 30000 34000 17000 3000 48000 40000 5000
Rs.177000
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MACHINERIES
1)Steam machine Supplier:Seongin Engineering Co., India Steam car wash machine 8kw Water tank:25L Preheating time: 2minutes Body material: stainless steel;
2) Vacuum cleaner Supplier:Shimono Industry Co., Ltd, India Power supply: DC 12V 60W
3) Compressor (form machine) Supplier:S.V. Electronic Co., Ltd., India 16mm cylinder Air flow: 15L/min
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4) Ozone machine Supplier:SaharaTechnology Co., Ltd., India car purifier Ozone output: 2-3 g/hr Adjustable ozone output: 20-100% Working time: 5-30 mins or 24 hrs..
5) Grinder machine Supplier: G.R. International Limited, India Compact body with 190W motor Ergonomic design for comfortable and efficient operation.
6) Jack machines Supplier:StrongMotoline Co. Ltd , India Hydraulic pressure: >63MPa Pushingcapacity:100T-320T Weight:240kg
CHEMICALS
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LOCATION ANALYSIS
The location of the unit is very important aspect in economic analysis of any project as it plays vital role in continuing life of the organization to have future advantages. Location of the unit means a specific site in the region where the organization is to be started. For selecting the location all the pertinent factors influencing the location have to be considered and weighted out very carefully.
1. Proximity to Customers
Satellite is considered to be both Commercial as well as Residential area. There are many automobile outlets situated in this area so we will easily get access to our target segments.
2. Good Visibility
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As the station is situated on the ground floor in front of main road we could avail the advantage of great attention of people.
3. Higher income Groups
This area is considered to be economically developed area so we can capture upper-middle and higher income group people.
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PLANT LAYOUT
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Product
“A goods, service or idea that offers a bundle of tangible or intangible attributes to satisfy consumers. However, in service, there is no or only one element because of which they are considered as benefits which are offered to target market.”
Product level
In planning market offering of car detailing service, the marketers need to think through five levels of product. Each level adds more to customer value hierarchy
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Product Level No. 1
LEVEL Core benefit: It is the fundamental service or benefit that the consumer is really buying. Basic product: A basic product comprises of basic and functional attributes. SERVICES OFFER BY US To clean the car
2
Car Detailing(spa) service
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Expected product: Expected product To beautify the car and long lasting is the set of attributes or conditions the paint and anti rust effect. buyer normally expects. Augmented product: It consists Pick up service, refreshmentservice, ofthose services that meetthe Entertainmentservices, water less car customers’ desire beyond expectations. detailingservices and dryinterior cleaning. Potential product: Potential product To provide insurance for car, to teach is the possible evolution to distinguish driving, door to door service(Isuzu truck) the offering by providing future benefits.
4
5
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Competitions Level 1. Brand competition
It is a Known fact that there is an existence of competition in any brand. In a Car Detailing Splaash, there are many brands such as H2O, TC4, and Euro etc which are already established brands and have a good share of markets.
2. Industry competition
There is also an existence of competition between industries. Car Detailing industries faces the same competition from Auto Garage. Similarly Splaash suffer from various local Auto Garages and petrol pump too.
3. Generic competition
This is the competition among those goods and services which can be bought instead of a particular service. Genericcompetition for Car Detailing services isdifferent as there is different price level for different services.For example, car accessoriesto decorate the caror any other expenses can be incurred instead of car detailing service.
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The Service Package
“The ‘Package’ concept of service product suggests that what you offer to the market is a bundle of different services tangible and intangible ,but there is a main or core service and around it are built the auxiliary or facilitator services”
1. Core services Intensive Interior Cleaning
Our latest equipment’s like Steam Vapour machine, Lather Foam machine, Spray Extraction Machine & Bio Degradable cleaners gives an intensive cleaning to all rubber beadings, seat (fabrics leather) belts A.C. Vents, dash board/console carpets, ceiling, door jambs, dicky & all other rubber and fabric mats making car "Germ & Bacteria Free".
2. Facilitating services
Facilitating services are the services which help to provide core services. There are mandatory and if they are left out, the entire service would collapse. For Splaash, the facilitating servicesare:
Exterior Steam Wash
Experience the Hi-tech latest Steam vapour technology to give your car "new sparkling look” at our splaash. Heat and Pressure Combined creates a powerful cleaning Solution that melts away dirt, grime, oil, tar, bird droppings, tree sap.
Ozone Treatment
The car is being treated with OZONE AIR PURIFIER after the interior
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cleaningmaking it germ free. It Sterilizes interior and help purify the air quality and remove any and all odour in car cabin thus helping you to prevent any health risk.
3. Supporting service
Supporting services are used to increase the value of facilitating service. For splaash, supporting service could be
Paint correction/protection
Over the time cars paint erodes due to the effects of sunlight, UV radiation, acid rain, salt, dirt, bird droppings and air pollution. Our PTFE based polymer paint sealant creates slippery, slick barrier that protects the paint finishes, reduces fading & oxidation of paint. It repels dirt & grime, accelerates water run - off to reduce spotting smoothens weathered surfaces and removes scratches giving a depth to the paint. Sealants are the beauty packs of the car an ultimate form of protecting the finish by sealing the pores creating “NEW LOOK TO THE PAINTED SURFACES”by repairing the paint scratches, swirl marks, dullness etc. by using clay bar and the world's most demanding imported chemicals approved by the car manufacturers.
Under body Polymer Coating Treatment 1. Long term protection against corrosion/rusting. 2. Effective dampening of sound & vibration. 3. Fire retardance properties. 4. Heat/Electrical insulation beneath the car. 5. Reduction of impact load (like stone hitting on car underbody). 6. Withstands temperature range of (-) 150C to 1500C. 7. Film thickness of 100 to 150 microns per coat.
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Anti - Rust Treatment / Protection
Splaash source Anti - Rust compound is scientifically formulated to protect the door's Jams, dicky bonnet, engine bonnet against rust & corrosion, it is a wax based treatment that protects unpainted surfaces & recessed cavities where rust can occur that too with life time warranty. Ask for the underbody coating sample plate.
Anti-Glare Glass Treatment
This treatment reduces glass streaks and scratches, rainbow marks and thus improves the quality of night vision and overall visibility.
Nano Glass Coating
Based on Chemical Nanotechnology, Nano Glass Coating forms a thin, hygienic, transparent layer over any glass window or surface, which provides excellent water, dirt and grime roll-off, as well as providing protection, high transparency, and significantly reduced maintenance costs. It acts as a dust repellent and also improves visibility during rain.
4. Accessibility of service
Skilled employees and customer’s satisfaction are the pillars of Splaash. The working hours of the service outlet are comfortable for target market i.e. our outlet is established at Satellite Road, Ahmadabad, where we can get good numbers of customers.
PRICE
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“Price means the amount of money charged for a product or service or the some value s that consumers exchange for the benefits if having or using the products or service.” There are a several different factors that cause the variations in prices for car detailing. Usually, car detailing prices vary from facility to facility, how big and what type of car you have, detailing packages, extra services, and similar other factors. The size of the car has a lot to do with the car detailing prices. If you have a smaller car, the time for the detailing procedure will be less and the labor will have to use fewer amounts of materials. Car detailing prices also count on the packages which are availed. There are many types of packages, which differ in the services included in them. Upgraded packages will include additional services apart from these typical ones.
Pricing Methodology
We had adopted a cost plus profit job costing method of pricing in order to determine the price of the complete car detailing services, because it is easy to compute, easy to understand and consistent to maintained.
Service Tax
Taxes refer to the tax to be paid on getting services. Here the list price is exclusive of all the taxes. The current tax rate for automobile service industry is 10.30%, which is charged on the amount of services rendered.
Payment Period
Payment Period refers to how much time is to be given to the customer to make the payment. In all the services provided by SPLAASH, the payment is made on the spot that is, no credit period is allowed to customers.
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Pricing for SPLAASH is largely dependent on the model of the car. CATEGORIES
Small cars Medium cars
CARS
M-800, Alto, Zen, Nano, Spark Wagon-R, Estilo, Swift, Getz, U-VA, Indica, Omni, I-10, santro, Palio Fabia, Fusion, Ikon, Esteem, Accent, Indigo, Feista, Verna, Honda City, Civic, Optra, Corrola, Baleno, Swift D-zire Accord, Camry, Superb, Laura, V-W, Nissan, Prado, Q7, CRV, Captiva, Endeavor, Innova,Safari, Tavera, Qualis, Scorpio
Large cars
Luxury & XL cars
Price List
It is difficult to list out the prices of various car detailing services of our firm at somewhere. This is because, the car detailing services are depends on the preferences of the customers. Thus it is difficult to determine the price range of the services and thereby we classified the various car detailing services based on available information.
The details about the service charge structure are shown in following respective table:
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SERVICES Interior +Ozone +Exterior Exterior +Underbodycoating Glass treatment +Exterior Headlight Paint Correction Anti Rust Treatment
SMALL 1450 1850 1150 800 5600 2500
MEDIUM 1680 2220 1380 960 6720 3000
LARGE 1820 2405 1495 1040 7280 3250
LUXURIOUS 1960 2590 1610 1120 7840 3500
PLACE
“Place refers to the physical existence of the service outlet where the customers will come into the direct inter course of the service provider and where services will be delivered by the service provider and received by the customers.”
Address:
4, 5, 6 Iscon Plaza, Opp. Star India Bazaar, Nr. Sundarvan, Satellite Road, AHMEDABAD-380015
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Location Analysis: The reasons for selecting this place are as follows.
1. Proximity to Customers
Satellite is considered to be both Commercial as well as Residential area. There are many automobile outlets situated in this area so we will easily get access to our target segments.
2. Good Visibility
As the station is situated on the ground floor in front of main road we could avail the advantage of great attention of people.
3. Higher income Groups
This area is considered to be economically developed area so we can capture upper-middle and higher income group people.
4. Better Facilities & Low Cost
This area is well equipped with the basic facilities like water supply, Street light Electricity etc. This all facilities are easily available.
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PROMOTION
“Promotion mix is a specific blend of Advertising, Sales Promotion, Public Relations, Personal Selling and Direct Marketing tools that the company uses to pursue its advertising and marketing Objectives”
Promotion Tools
Advertising
“Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor.” - American Marketing Association
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1. Mission
Advertising goal of Splaash is to spread awareness among the target customers through specific communication tasks and achievement level to be accomplished in a specific period of time. The short term aims 1. To create awareness among the customers about the SPLASH 2. To inform customers about our quality, affordable price, long lasting services effect, latest technology used in car detailing. The long term aims 1. Expansion towards new market. 2. To increase the interior.
2.Money
Although advertising is treated as current expense, part of it is really an investment that builds up on tangible assets called brand equity. As ours is a new organization
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wehave to spend a large amount on advertising to create awareness and to gain the viewership. 3. Message “Where innovation paves the way to quality” The message’s impact depend not only on what is said, but also often more important on how it is said. So the message generation plays an important role in organization’s image or reputation.
4. Media
Advertising media is a means through which advertisers communicate their messages to target people with a view to influence them in terms of advertising objectives. For Splaash’s 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. We use the following means to advertise:
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Newspaper
Newspapers are widely circulated in all the section of our society and will help us to send our message to each and every resident. We would be advertising in leading newspaper of the area. Particulars Times Of India Divya Bhaskar 20cm,4thpage, 10cm,last page Cost(Rs.) 25000 22000 Frequency (per year) 6 4 Total Cost 15000 88000
Hoardings
Area Satellite S.G.Highway Cost(Rs.) 200000 100000 Frequency(per year) 1 1 Total cost Rs. 200000 100000
Radio 98.3 Radio Mirchi
Time slot 20 sec. Cost per sec. (Rs.) 120 Frequency 50 times Total Cost 120000
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Magazines Particular Business Today Cost(Rs.) 15000 Frequency 3 times in year Total Cost 45000
Leaflets with Newspaper
Perticulars 25000 Copies Cost per copy (Rs.) 0.80 Total cost of Copies 20000 Frequency Total Cost(p.a) 120000
6 times in year
Commission on Leaflets
Particulars 25000 Copies Cost per 1000 copy (Rs.) 120 Commission 0n Copies 3000 Frequency Total Cost(p.a) 6 times in a 18000 year
5. Measurement
The advertising program should evaluate both the communication effect and the sales effect of advertising regularly. Measuring the communication effects of
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anadvertisement-copy testing- tells whether the ad is communicating well or not. The sales effect of advertising are often harder to measure than the communication effect because sales are affected by many factors besides advertising- such as product features, price and availability.
Sales promotion
“An activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door-to-door calling, telemarketing, and personal letters on other methods”. In short Sales promotions are short-term incentives to encourage the purchase or sale of a product or service. It may be classified as follows:
Consumer oriented sales promotions
Gift:We are giving car fresheners to those customers who have availed the scheme of jumbo combo pack. Free Service: At Splaash, we are giving free pick-up and drop service up to 15kms. Package Offer: We are providing service at lower rate to the subscriber of jumbo combo pack.
Direct Marketing
Direct marketing is one of the promotion tools by which advertisers approach potential customers directly withproductsor services. The most common forms of direct marketing are telephone sales, solicited or unsolicited emails, catalogs, leaflets, brochures and coupons.Successful direct marketingalso
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involvescompilingandmaintaining a large database of personal information about potential customers and clients. These databases are often sold or shared with other direct marketing companies.Following are tools which are used by the firm for direct marketing:
1. E-mails
We often stay in touch with our customer via e-mails & work upon their respective feedbacks. We are using the facility of ‘Blast Email’ to inform the customers about the various scheme of our firm.
2. Brochures
A brochure contains information in detail that will help our customers to understand the services easily.
3. Database of personal Information
At every dealer centre & for our direct visitors, we maintain a good database of our customer’s information which helps us to reach the potential customers. Our Website plays a very important role in maintaining the database.
4. Direct-response broadcast advertising (radio)
Our advertisement broadcast at the rate of 120 per second for 20 second ads at 98.3RadioMirchi, 50 times a year.That also helps us for reaching far number of customers.
5. Hoardings
We havetwohoardings inpeakareas that createsattentionat S.G.Road and Paldiat the rate of 300000for the year.
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Website with Social Networking
There is a growing number of social networking sites focused on business users and meeting their needs. Online networks can help to hire the right people, market the product or even find a manufacturer. We had designed our websitewww.splaash.webs.comin an interactive way with Social networking facilities. we have tried our best to keep our customers in contact with the help of social networking facilities. Here, on thissite they can be in contact with our team and other car lovers too. By using the online social media sites to introduce Splaash, our business and services will get a wide view. Over a time we will build brand awareness among people there. So we set up MySpace page, Twitter account, LinkedIn, Face book, Fraudster, Hi5 profiles etc and link each of them to your website. It will list out the recent activities of the members so that we have the easy look around on the splaash business.
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On a Initial Stage, Splaash has decide to focused on the following ceteria to get more customers to the website, using the free resources available on the Internet; (1) Free Social Media to Get Customers(2)Free Guerilla Techniques to Get Customers(3)Visit Online Groups to Get Customers(4)Online Articles to Market Yourself(5)Advantage of Free Business Listings(6)Free Online Blogging to Get Customers to Your Website(7)Free Internet Tools to Get Customers to Your Website(8)Create a Video to Get Customers (10) Optimize Your Website to Get Customers.
Our website helps us to maintain the record of the visitors at a different point oftime i.e. click streaming record thereby help in promoting various scheme and offers. Thus it acts as an important tool for promotion and help in providing them latest news of the car detailing industry and splaash too.
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PROCESS
“Process means the procedures, mechanism, and flow of activities by which a service is acquired. Process decisions radically affect how a service is delivered to customers.” There are three basic components to car detailing. The first one is washing the car and the Car detailing(spa) products which can be used for this includes pre-wash with foam and vehicle shampoo. These are designed to remove the dirt and grime from the paintwork of a car effectively. The best quality cleaners will lubricate the paintwork as well as condition it to enhance the shine. Car detailing(spa)clay bars help to remove small contaminants that have become embedded in the paintwork.
Once the car has been thoroughly cleaned, the second stage in Car detailing(spa)is polishing. There are a number of manufacturers that produce good quality polishes for both the exterior and interior of a vehicle. They are designed to clean and protect the paintwork of car. This is an important step that cleans completely the surface of the paintwork.
The third step in Car detailing(spa)is to use car wax or sealant on the car which helps to prolong the life and looks of the car paintwork. Using a car wax or sealant
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willprotect the paintwork from UV rays, moisture and pollution and will also produce a brilliant shine which will greatly enhance the look of a car.
PHYSICAL EVIDENCE
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Services being intangible it is difficult to touch, and judge them so it becomes necessary for marketer to tangibalize the intangible so as to provide customers with various clues to make purchase decision. This task is performed by physical evidence.
Name:“Splaash”
LOGO:
Punch Line:“Wemake the Car Smart”
VISITING CARD:
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Location:Satellite (2,000 sq FT) Website:www.splaash.webs.com Equipments:Laptop, Desktop, Air-conditioners, Furniture, water cooler,
Television, Job Card, Suggestion Box etc
PEOPLE
It is rightly said that-“ Employees represent the organization to the customers and a service company can be only as good as its people.” If these people are not given training than the entire marketing efforts may not prove to be effective. It is often challenging for service organization to differentiate itself for similar organizations in the benefit bundle it offers or its delivery system. Organization can gain a strong competitive advantage through appointing workers and employees with specialized knowledge as per the requirements in the respective field. People are important in service marketing because; People deliver the services
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People get the satisfaction Service become successful by the people Company gets goodwill and image.
Factor motivating
Various factors that help in motivating the employees are Ambience of the place, Easy work scheduled, Company policies, Pay package, Work culture, Position etc.
Organization Chart
PARTENERS
GENERAL MANAGER (1)
ACCOUNTANT (1)
SUPERVISOR (1)
RECEPTIONIST (2)
PEON (1)
FOREMAN (8)
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Official Working Hours: 8:00am-7:00pm
Designation General Manager Supervisor Receptionist Accountant Foremen Peon Total
No. Of Employees 1 1 2 1 8 1 14
Salary(Per Month, Per Worker) 22,000 12,000 7,750 10,500 8,750 4,000 Rs.65,000
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Job Profiles
1. General Manager Job Specification:
Job Title Education General Manager MBA and PGDCA or equivalent degree of computer. Mental Ability : Should be well versed, good listening skill and Presence of mind Language skill : English, Hindi, Gujarati Skills : Speech Clarity, Easily understanding of the problems,Good power of expression, Co-operative and Leadership Skill Physique and Health : Good Health and Sound Mind Work Experience: Anexperience of 2-3 years in any established organization as finance manager : :
Job Description:
Reports to Supervises Functions : : Partners Supervisor, Accountant Delegate authority 48 Motivate to all subordinates To be able to negotiate with the partners
2. Supervisor Job Specification:
Job Title Education Supervisor B.com (Graduation in any discipline) Mental Ability : To handle the stress of difficulties and should have sharp memory Language skill Work experience: : English, Hindi, Gujarati An experience of 2-3 years inany service center : :
Job Description:
Reports to Supervises Functions : : General Manager Receptionist, Foreman, Peon : Handle the advertising To keep a bird eye on each worker and reporting to general manager Ability to control Check the standard quality of the services 49 Handle the customer problems -get the feedback
3. Accountant
Job Specification:
Job Title Education Mental Ability: Intellectual : Accountant : M.Com (Accountancy) Good at calculation,concentration power,
Language skill : Physiques and Health : Work experience :
English, Hindi, Gujarati Good health, good eye sight An experience of 4-5 years inaccountancy
Job Description:
Reports to :
General Manager
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4. Receptionist
4) Receptionist
Job Specification:
Job Title Education Mental Ability : : Receptionist : Any Graduation and undergraduate Good presence of mind, ability to manage time and handle thecustomers English, Hindi, Gujarati : Good communication, Clam, polite and convincing power : An experience of 1 year in any consultancy
Language skill : Skills Work experience
Job Description:
Reports to Functions : Data entry 51 and maintain of record Attending and handling the telephonic respondent : General Manager
5. Foreman
Job Specification:
Job Title Education : Mental Ability : Foreman Primary education : Co-operative with other workers, mentallystable Language skill : Hindi, Gujarati Physiques and Health : Strong, good eye sight
Job Description:
Reports to Functions : : Supervisor
Clean the cars, ability to understand the technical problems in cars
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6. Peon
Job Specification:
Job Title Education : Mental Ability Language skill : Peon Primary education : Co-operative with others, polite : Hindi, Gujarati
Job Description:
Functions : Follow the orders of the higher authority, Clean the offices, Do all the miscellaneous work,
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Policies for Our Employees
1. Recruitment & selection
We will be giving recruitment advertisement for receptionist, Account manager and others in the leading newspaper of the area such as The Times of India, Divya Bhaskar etc.
2. Motivation
The employees will be provided with following monetary and non-monetary benefits like bonus, and holidays in festivals. Besides we will also follow suggestion box scheme. Moreover Special leaves will be given to employees. Three days leaves will be given in addition of Official Leaves.
3. Team work
It is the team spirit on the part of the employees which is behind the success of any business entity. The culture of our organization will be such that will help in imbibing this spirit in our employees to provide qualitative service to customers.
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4. Employee behavior
Training and motivating are to be given so that employee can make the difference among the other company employees and feel satisfaction.
5. Bonus:
We give One Month Salary as a Diwali Bonus to our employees. Market research is the systematic design, collection, analysis and reporting of data and findings relevant to a specific market situation facing the company. While there are dozens of little steps along the path, each fits into one of the five steps in the marketing research process.
The main steps in marketing research are: Step1. Identifying and defining your problem Step2. Developing your approach and research design Step3. Collecting the data Step4. Performing data analysis Step5. Reporting and presentation
Step1. Identifying and defining your problem Problem
“To conduct the survey of Car Detailing users, non-users and consumption pattern of consumers of Car Detailing.”
Objectives
1. To study the Car Detailing market (industry) 2. To study the Demographic and Social variables of users and non users of service. 3. To find out market share of different brands.
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4. To study behavior of consumers for the service by considering the various attribute of the service. 5. To find out purpose of the users of Car Detailing 6. To find out the most popular brand of Car Detailing 7. To find out reason of not using the service.
Step2. Developing research plan
The next step of a marketing research is to develop a plan regarding decision factors like sources of data, data collection method and contact methods.
a) Data source: Primary:Survey of Car Detailing users, non users. Secondary:Internet,magazines,newspapers,Management book PhilipKotler b) Research approach:Survey Approach c) Research instrument:Questionnaire d) Sampling plan: Sampling units:On the demand side= Users & Non users Sample size:No. of consumers=1000 Contact method
ersonal interview Sample procedure:Convenience sample Step3. Collection of data How questionnaire was prepared?We had collected the data by the way of questionnaire prepared after seeking information from Management book Philip Kotler, taking views of our project guide, & referring the past projects.
Who are surveyed?
We had conducted survey of customers having car at shopping mall and customers outside the Car Detailing shop and also our neighbors.
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Which problems were encountered?
As this concept is new for most of the consumers, we had to explain them about Car Detailing (spa). It was really an excellent experience for us.
Step4. Performing data analysis
Analysis of the data collected is carried out to meet the various objectives of the research. First of all the data collected is bifurcated into users and non users of Car Detailing then the various data is scrutinized carefully.
Step5. Reporting and presentation
Various graphs are drawn for the presentation and the reporting of the scrutinized data. This method is very useful for understanding and comparing the data carefully and easily.
1) CAR DETAILING WISE DISTRIBUTION OF RESPONDENTS
Respondent Yes No Total
No. 162 838 1000
16.2%
YES NO
83.8%
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The above chart shows the responses of the service. Out of 1000 surveyed people, the large portion (83.8%) of respondents are non-user of the service but there are few respondents (16.2%) are using the service. The main reason behind the non-usage of this service is unawareness.
2) GENDER WISE DISTRIBUTION OF RESPONDENTS
GENDER Male Female Total
No. 870 130 1000
GENDER
13%
87%
Male Female
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As per above chart, the ratio of male and female as a user and non-user of the service. Generally males are more interacted for such services so we get the highest ratio of male in both using (74.07%) and non-using (89.5%) this service. Females are less concerned with such service.
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3)
AGE WISE DISTRIBUTION OF RESPONDENTS
AGE 18-30 31-45 46-60 Above 60 Total
No 162 599 174 65 1000
AGE(Years)
60%
16%
17% 7%
18-30
31-45
46-60
Above 60
The above chart shows the response for the service from different age-groups. We can analyze that most of the users of the services (59.88%) are belonging form the age-group of 31-45 years & same criteria is there in non-user side(59.90%).The retired persons are having less interested in this service. We can say that people at age of 1820 years &46-60 years are almost at a same level for the usage of this service.
60
4)
OCCUPATION WISE DISTRIBUTION OF RESPONDENTS
Occupation Student Business Person Service Person Profession House Wife Retired Total
No. 49 362 339 99 60 91 1000
Occupation
9% 6% 10% 5%
36%
34% Student Profession Business Person House Wife Service Person Retired
We can see in the above chart, how a particular occupation determines the usage of this service. Most of the user are belonging to business group (33.33%) and nonusers(36.75%) of this service. So we may say that the service attracts this business person. After business persons, service persons are at second position followed by retired, students, professionals and house wives in both usage and non-usage of the service.
61
5) FAMILY INCOME (MONTHLY)
Family income (monthly) Up to 25,000 25,001-50,000 50,001-70,000 Above 70,000 Total
No. 227 434 253 86 1000
INCOME GROUP
43%
23%
25%
9%
Up to 25,000
25,001-50,000
50,001-70,000
Above 70,000
Here it can be seen that, the people who having income between Rs. 25,00150,000 are in majority in both using (53.7%) and non-using (41.41%) of the service followed by income group of Rs.50,001-Rs.70,000. Up to Rs. 25,000 and above Rs. 70,000 in usage as well as non-usage of the service.
62
6) TYPES OF CAR
Types of car Small Medium Large Luxury Total
Respondents 271 428 229 72 1000
43 %
23 % 7% 27 %
Small
Medium
Large
Luxury
Car detailing service depends upon the category of the car. So, from the respondents, we come to know that people having medium cars are at majority in using this service. 43% people using the medium cars, in followed by small cars, large cars and luxury cars.
63
7) TYPES OF CAR
Types of car Petrol Diesel Total
YES 941 59 1000
94%
Petrol Diesel 6%
The above chart shows that generally patrol cars are being used. It has majority of 94% followed by only 6% having diesel car. It means that most of the people are using petrol cars.
64
8) THE CAR IS,
Types of car First Handed Second Handed Total
No. 903 87 1000
91%
First Handed Second Handed
9%
This charts tells about the car of respondents is first handed or second handed. From the chart we can analyze that most of the respondents have first handed cars, which are 91% of total respondents. On the other side there are very less no. of second handed car user is there.
65
SECTION A
1) WHERE DID YOU FIND
Source Newspaper/Magazine Radio Hoardings Relatives & reference group Internet Total
80 70 60 50 40 30 20 10 0 19 6 39
TOTAL 39 19 6 79 19 162
79 Newspaper/Magazine Radio Hoardings Relatives & reference group Internet 19
It has been found that till now, most of respondents came to know about these services from, “Relatives & reference group” followed by “News papers/ magazines” “Radio” &“Internet”. It shows that promotion and advertisement are not sufficiently done in market.
66
2) SPENDING FOR SERVICE
Spending for service All Internal External Total
No. 30 76 56 162
47%
all 34%
internal
external
19%
all internal external
The above chart showing which type of basic service used by the customers. We can see that 47% of respondents are using Internal cleaning followed by external cleaning and overall cleaning. It shows that people are more conscious about internal cleaning of their cars.
67
3) SELECT SCHEME
Scheme Yes No Total
No 8 154 162
95% 5%
yes no
From the above graph, we may conclude that 5% of the respondents have been benefited of the schemes i.e. semi-yearly, yearly membership card schemes. As the concept is new, most of the users are not interested to take the benefit of the schemes as it involves payment prior to service.
68
4) FREQUENCY OF CAR DETAILING
InTiming Onetime Two-time Three time Total
No 13 140 9 162
No. of users
86%
Onetime Twotime Threetime 8% 6% Twotime Threetime
Onetime
From the above graph we can analyzed that, around 86% users are taking these service twice in a year, followed by 8% users once in a year & 6% users thrice in a year. It means that people are not so much interested in these kind of services as it is new concept.
5) SATISFACTION LEVEL
Procedure
Highly Satisfied
Satisfied Neutral
Dissatisfied
Highly Dissatisfied
69
Car Treatment Service Timing Service Charge Response of Service staff Distance
8 45 0 4 11
122 108 65 130 58
32 9 97 28 93
0 0 0 0 0
0 0 0 0 0
75.31% 66.67% 59.88% 40.12% 27.78% 19.75% 4.94% 0 0 5.5% 0 0 Service Timing
80.25%
57.4% Highly Satisfied 35.8% 17.28% Satisfied Neutral Dis-satisfied 6.8% 0 0 0 0 Distance Highly Dis-satisfied
0
0 02.47% Service Charge
Car Treatment
Response of Service staff
From the graph, we may analyzed that most of the favored respondents are satisfied with every procedure except, ‘the distance from home’ as data suggests the neutral level is highest in these procedure. But, In future, we may assume that we can get at least satisfaction level for all the services.
6) RECOMMEND THIS SERVICE
Recommend Yes No
NO. 154 8
70
5%
Yea No
95%
From the above graph we can analyzed that around 95% of favored respondents are recommending the car detailing service to their acquaintances as the users are satisfied with the service.
SECTION B
1) NOT CONSIDERED THIS SERVICE
Service Don't know about this service It's costly
No 509 153
71
Not interested in this service Any other Total
509
165 11 838
153
165 11
Don't know about this service
It's costly
Not interested in this service
Any other
From the above graph, we can represent that around 61% were respondent unaware about the CAR DETAILING services. And Around 20% respondents are not interested to avail the service. So our focus is to practice aggressive marketing which can also generate interest towards unfavored respondents.
2) IN FUTURE, WILL YOU TAKE THIS SERVICE
Service Yes No Can't say Total
No 337 325 176 838
72
39% 21% Yes No 40% Can't say
From the graph, we analyzed that around 40% of unfavoured respondents are willing to obtain the Car Detailing service. We may consider them as our potential customers. Via targeting this segment, we can convert them in to our actual share market.
Findings
The sample of 1000 respondents may not represent the total population of Ahmadabad. Our research found that only 16% respondents are using the car detailing services. As our concept of CAR Detailing is new, there are around 61% respondents who were unaware about the service.
73
The owners of Small car segmentation respond that this service is not affordable as it increases maintenance expenses & they do not consider these services necessary. Most of the respondents go to auto garages for carwash as many of them are either unaware or do not consider the specialized detailing services. Many of interested respondent’s feels that it is not easily accessible as the Car detailing station is far from their house.
Suggestion
To create awareness about the Car Detailing Services via using advertising as an important tool. To show differentiation between Auto garages & professional Car detailing services. To extend the distance from Fifteen kilometers for pick-up & drop services to access widely customer. To promote these services in the showroom. So that customers come to know from the beginning about these services.
74
To show especially small Car segmentation group these service as necessity & how it is useful as long term prospective.
COST OF PROJECT
Cost of project
Premises Machinery Furniture Electronics other equipments Preliminary Expanses NWC Contingency TOTAL
Amount(Rs.)
9800000 559000 85300 211500 26000 318000 83000 10200 11093000
MEANS OF FINANCE
Paticulars Amount(Rs.)
75
Partners Bank loan TOTAL
5500000 5593000 11093000
STATEMENT OF MACHINARY
NAME
Steam machine Vacume cleaner Compressor Ozone machine Grinder machine Jack Machines TOTAL
QUNTITY
1 2 1 1 2 4
PRICE
250000 80000 8000 37000 45000 3500
TOTAL(Rs.)
250000 160000 8000 37000 90000 14000 559000
STATEMENT OF FURNITURE
NAME
Cabin table Cupboard Sofa set
QUANTITY
1 2 2
PRICE
3000 8000 22000
TOTAL(Rs.)
3000 16000 44000
76
Table Glass Receptionist table Revolving chair Revolving chair(Smal) Comfort chair TOTAL
1 2 1 5 7
1200 2200 2600 1700 800
1200 4400 2600 8500 5600 85300
STATEMENT OF ELECTRONICS
NAME
Computer Laptop LCD(TV) Air conditioner Printer Generator Music system Water cooler Water purifier Tea & cofee machine TOTAL
QUANTITY
2 1 1 2 1 1 1 1 1 1
PRICE
22000 30000 17000 20000 5500 48000 5000 15000 2000 5000
TOTAL(Rs.)
44000 30000 17000 40000 5500 48000 5000 15000 2000 5000 211500
STATEMENT OF OTHER EQUIPMENT
NAME
Fan Lights boards
QUAN TITY
10 10
PRI CE
110 0 300
TOTAL( Rs.)
11000 3000
77
Tubelight Fire safty equip. Telephone instalation Misc. TOTAL
12 1 2
350 300 0 150 0
4200 3000 3000 1800 26000
STATEMENT OF PRELIMINARY EXPANCES
Particular
Legal charges Initial promotion charges Market survey exp. Total
Total(Rs.)
15000 300000 3000 318000
SALARY STRUCTURE
Designation
General Manager Supervisor Receptionist(2) Accountant Foreman(8) Peon TOTAL
201112
264000 144000 186000 126000 840000 48000 1608000
2012 -13
27720 0 15120 0 19530 0 13230 0 88200 0 50400 16884 00
2013 -14
29106 0 15876 0 20506 5 13891 5 92610 0 52920 17728 20
201415
305613 166698 215318 145861 972405 55566 186146 1
2015 -16
32089 4 17503 3 22608 4 15315 4 10210 25 58344 19545 34
78
MATERIAL CONSUMPTION
PERTICULAR OP.STOCK Purchase Of Raw-Material CL.STOCK
20112012
20122013201420152013 2014 2015 2016 15000 16500 19965 0 0 0 181500 0 66000 72600 87846 600000 0 0 798600 0 16500 18150 21961 150000 0 0 199650 5 64500 0 70950 0 85849 5
RAW-MATERIAL CONSUMED
450000
780450
SALES FORCAST:Sales unit
Services
Interior + ozone + exterior Exterior + Under body coating Glass treatment + Exterior Headlight Paint Correction Anti Rust Treatment TOTAL
Small
54 36 33 15 27 22 187
Medi um
106 81 73 25 33 83 401
Large
118 102 61 32 44 59 416
Luxuri ous
54 32 29 18 10 41 184
TOTAL( Rs.)
332 251 196 90 114 205 1188
79
Sales Price
SERVICES
Interior + ozone + exterior Exterior + Under body coating Glass treatment + Exterior Headlight Paint Correction Anti Rust Treatment
Small
1400 1850 1150 800 5600 2500
Medi um
1680 2220 1380 960 6720 3000
Large
1820 2405 1495 1040 7280 3250
Luxuri ous
1960 2590 1610 1120 7840 3500
Sales force
SERVICES
Interior + ozone + exterior Exterior + Under body coating Glass treatment + Exterior Headlight Paint Correction Anti Rust Treatment TOTAL
Small
75600 66600 37950 12000 15120 0 55000 39835 0
Medi um
17808 0 17982 0 10074 0 24000 22176 0 24900 0 95340 0
Large
214760 245310 91195 33280 320320 191750 1096615
Luxuri ous
105840 82880 46690 20160 78400 143500 477470
TOTAL( Rs.)
574280 574610 276575 89440 771680 639250 2925835
Jumbo combo pack
Sales price
80
Services
Inerior Cleaning Exterior Wash Ozone Treatment Under Body Coating Glass Treatment Headlight Total Sales Price
Small
750 200 150 1300 800 700 3900
Medi um
900 240 180 1560 960 840 4680
Larg e
975 260 195 1690 1040 910 5070
Luxuri ous
1050 280 210 1820 1120 980 5460
Sales forecast
Particulars
No.of cars Sales price Sales Force
Small
91 3900 354900
Medi um
178 4680 83304 0
Larg e
358 5070 1815 060
Luxuri ous
45 5460 245700
TOTAL( Rs.)
672 3248700
Tie up
Particulars
No.of cars Sales price Sales Force
Small
67 3400 227800
Medi um
105 4080 42840 0
Larg e
114 4420 5038 80
Luxuri ous
14 4760 66640
TOTAL( Rs.)
300 1226720
81
DEPRECIATION
2011 -12
Particular Machinery Furniture & fixtures Laptop/computer Basic cost 55900 0 85300 74000 rate of dep.(%) 15% 10% 60% amt of dep 83850 8530 44400 WDV 47515 0 76770 29600
2012 -13
amt of dep 71273 7677 17760 WDV 40387 8 69093 11840
82
Electronic items Business premises TOTAL
13750 0 98000 00 10655 800
15% 10%
20625 98000 0 11374 05
11687 5 88200 00 95183 95
17531 88200 0 99624 1
99344 79380 00 85221 54
201314
amt of dep 60582 WDV 34329 6 62184 4736 84442 71442 00 76388 58
2014 -15
amt of dep 51494 6218 2842 12666 71442 0 78764 1 WDV 29180 1 55965 1894 71776 64297 80 68512 17
2015 -16
amt of dep 43770 5597 1137 10766 64297 8 70424 8 WDV 248031 50369 758 61009 578680 2 614696 9
PRELIMNAR Y EXPENCES
Particulars
TOTAL EXPENCES WRITTEN OFF EVERY YEAR
6909 7104 14902 793800 883296
201112
318000 63600 254400
201213
254400 63600 190800
20132014201514 15 16
190800 63600 127200 127200 63600 63600 63600 63600 0
83
ADVERTISEMENT BUDGET
(YEAR-2011-2012)
PERTICULAR
COST
FREQ.(p.a.)
TOTAL COST
NEWS PAPER Times of India
20cm,4th page, 2times in a month Divya Bhaskar 10 cm, last page, 1 time in a month 25000 22000 6 4 150000 88000
84
MAGAZINES Business Today HOARDINGS Satellite S.g. Highway RADIO 98.3 Radio Mirchi LEAFLETS 25000 copies*0.80 Rs.,Distri. In 2 months Comission(120 Rs. For 1000 copies) TOTAL
15000
3
45000
200000 100000
1 1
200000 100000
120 per second
20sec.*50times
120000
20000 3000
6 6
120000 18000 841000
PROFIT AND LOSS ACCOUNT (IN RS.)
2011 -12
29258 35 32487 00 12267 20 74012 55
YEARS
Total Revenue
Services Jumbo pack Tie-up TOTAL
2012 -13
32184 19 35735 70 13493 92 81413 81
2013 20142015 -14 15 -16
35402 60 39309 27 14843 31 89555 18 389428 6 432402 0 163276 4 985107 0 42837 15 47564 22 17960 41 10836 178
85
Expances
Material Consumed Wages & Salary Bonus Electricity Consumption DEPRECIATION Business Premise Machinary Furniture Other Equipm. Computer/Laptop INSUR. Store Repairs Fuel on Generator BANKCH. Muncipal Taxes Communication News Paper & Magazine AUDIT Fee Stationary Printing Misce. Exps. Advertisement Promotion medical treatment SUB-TOTAL OPERATING PROFIT BEFOR INT. LESS: Int.On Loan LESS: Int.On Capital 45000 0 16080 00 13400 0 18000 0 98000 0 83850 8530 20625 44400 10359 0 38000 20000 5000 2000 30000 12000 6000 12000 4800 12000 84100 0 13000 0 6000 47317 95 26694 60 67116 0 33000 0 16683 00 64500 0 16884 00 14070 0 19800 0 88200 0 71273 7677 17531 17760 10359 0 39900 21000 5500 2100 31500 13200 6300 12600 5040 12600 92510 0 13650 0 6300 49895 71 31518 10 60444 0 33000 0 22173 70 70950 0 17728 20 14773 5 21780 0 79380 0 60582 6909 14902 7104 10359 0 41895 22050 6050 2205 33075 14520 6615 13230 5292 13230 10176 10 14332 5 6615 51604 53 37950 65 53772 0 33000 0 29273 45 780450 186146 1 155122 239580 85849 5 19545 34 16287 8 26353 8 64297 8 43770 5597 10766 1137 10359 0 46189 24310 7321 2431 36465 17569 7293 14586 5834 14586 12313 08 15801 6 7293 56204 84 52156 93 40428 0 33000 0 44814 13
714420 51494 6218 12666 2842 103590 43990 23153 6655 2315 34729 15972 6946 13892 5557 13892 111937 1 150491 6946 537175 0 447932 0 471000 330000 367832 0
OPERATING PROFIT AFTER INT. OTHER NON-OPERATIVE EXP. Preliminary Expances Written of
63600
63600
63600
63600
63600
86
PROFIT BEFORE TAX
16047 00 48141 0 11232 90 22465 8 30000 86863 2
21537 70 64613 1 15076 39 30152 8 35000 11711 11
28637 45 85912 4 20046 22 40092 4 40000 15636 97
361472 0 108441 6 253030 4
44178 13 13253 44 30924 69 61849 4 50000 24239 75
LESS: TAX PAID
NET PROFIT
GENERAL RESERVE P&L Bal. PROFIT DIST.
506061 45000 197924 3
BALANCE-SHEET (IN RS.)
YEARS
Particulars (A) Sources of Fund Partners capital Reserves and Surplus Opening balance P&L a/c General reserve Closing balance Secured loans TOTAL SOURCES OF FUND
20112012
20122013
20132014
20142015
20152016
5500000
550000 0
550000 0
550000 0 103211 0 45000 506061 158317 1 336900 0 104521 71
550000 0 158317 1 50000 618494 225166 5 281300 0 105646 65
0 30000 224658 254658 5037000 1079165 8
254658 35000 301528 591186 448100 0 105721 86
591186 40000 400924 103211 0 392500 0 104571 10
87
(B) Application of Fund Gross block of asset Fixed Asset Less: Depreciation Net block of asset Other equipments Total fixed asset Current assets, loans and advances Stock Cash & Bank balance Total current asset Less: Current Liabilities and Provisions Out standing electricity biils(1 month) Out standing telephone biils (2 months) Total current Liabilities Net current asset Preliminary expenses not written off TOTAL APPLICATION OF FUND 1065580 0 1137405 9518395 26000 9544395 951839 5 996241 852215 4 26000 854815 4 852215 4 883296 763885 8 26000 766485 8 763885 8 787641 685121 7 26000 687721 7 685121 7 704248 614696 9 26000 617296 9
150000 859863 1009863
165000 168693 2 185193 2
181500 250412 3 268562 3
199650 333433 1 353398 1
219615 419697 1 441658 6
15000 2000 17000 992863 254400 1079165 8
16500 2200 18700 183323 2 190800 105721 86
18150 2420 20570 266505 3 127200 104571 10
19965 2662 22627 351135 4 63600 104521 71
21962 2928 24891 439169 6 0 105646 65
88
CAPITAL-BUDGET
WEIGHTED AVERAGE COST OF CAPITAL
RATE 6% 12% YEAR 2011-12 2012-13 2013-14 2014-15 2015-16 TOTAL
xi
Wi
5500000 330000 5593000 671160 11093000 1001160 PAT DEPRECIATION PRE. EXP. 11232290 1137405 63600 1507639 996241 63600 2004622 883296 63600 2530304 787641 63600 3092469 704248 63600 10258324
CFAT 2324295 2567480 2951518 3381545 3860317 3017031
CUM. CFAT 2324295 4891775 7843293 11224838 15085154
D.R. AT 9% 0.917 0.841 0.772 0.708 0.649
DISC.CFAT 2131379 2159250 2278572 2394134 2505346 11468680
Ko=1001160/11093000*100
89
= 9%
1) ARR:=AVG. PAT / INVESTMENT*100 =2051665/11093000*100 =18.49%
Interpretation:As ARR is positive and greater than NPV. So the project is accepted.
90
(2)Payback Period:Total investment (Cost of project) = 11093000 Amount recovered in 3rd year = 7843293 Amount left to be recovered after 3rd year =3249707 Time period of recovery of remaining amount = 0.96 Payback Period = year before full recovery amount + unrecovered amount/cash inflow of that year = 3+3249707/3381545 = 3.96 = 4years Criteria for selection of project
roject with least payback period is preferred first. Interpretation:Our total investment will be recovered within 3.039 years.(2)Net Present Value:91
NPV = Present value of cash inflow – Present value of cash outflow = 11468680-11093000 = 375680 Criteria for selection of project:If NPV is Positive, project is selected If NPV is zero, it is indifferent situation you can select it or reject it taking into account other factor. If NPV is Negative, project is rejected. Interpretation:As our NPV > 0 i.e. it is positive so it is acceptable.
(3)Profitability Index (PI)
I = Present value of cash inflow/Present value of cash outflow92
= 11468680/11093000 = 1.034 Criteria for selection of project:If PI > 1, project is accepted. If PI < 1, Project is rejected. Interpretation:As our PI > 1, the project is feasible.
(4)Internal Rate of Return:CFAT DIS RATE@9% DIS CFAT DIS RATE@12% DIS CFAT
2324295
0.917
2131379
0.892
2073271
93
2567480
0.841
2159250
0.797
2046281
2951518
0.772
2278572
0.711
2098529
3381545
0.708
2394134
0.635
2147281
3860317
0.649
2505346
0.567
2188800
3017031
11468680
10554162
Fack payback period = Investment or cash outflow/Average cash inflow = 11093000/3017031 = 3.677 IRR = Lower rate + NPV at lower rate/NPV at lower rate –NPV at higher rate * higher rate-lower rate = 9% + (375680/914518)*(12%-9%) = 9% + 0.41% = 9.41% Interpretation:-
94
AS IRR is positive , Project is feasible
BREAK EVEN SALSE (IN RS.)
Particular
Total revenue Variable cost Stores Electricity Repairs Material consume Fuel on generator Total variable 38000 18000 0 20000 45000 0 5000 69300 39900 19800 0 21000 64500 0 5500 90940 41895 21780 0 22050 70950 0 6050 99729 43990 23958 0 23153 78045 0 6655 10938 46189 26353 8 24310 85849 5 7321 11998
201112
74012 55
201213
81413 81
201314
89555 19
201415
98510 70
201516
10836 177
95
cost Contribution Fixed expenses Wages & Salary Bonus Depreciation Insurance Bank charges Communication News Paper&Magazine Audit Fee Stationary & Printing Misce. Advertisement Promotion Medical treatment Int. on loan Int on capital Preliminary Expanses Tax paid Total fixed cost
0 68582 55 16080 00 13400 0 11374 05 10359 0 2000 12000 6000 12000 4800 12000 84100 0 13000 0 6000 67116 0 33000 0 63600 48141 0 55849 65 90.63 672 90.64 % 61617 00
0 74411 81 16884 00 14070 0 99624 1 10359 0 2100 13200 6300 13200 5040 12600 92510 0 13650 0 6300 60444 0 33000 0 63600 64613 1 57243 42 88.82 99 88.83 % 64441 54
5 82149 64 17728 20 14773 5 88329 6 10359 0 2205 14520 6615 14520 5292 13230 10176 10 14332 5 6615 53772 0 33000 0 63600 85912 4 59536 02 88.86 39 88.86 % 66999 80
27 90271 25 18614 61 15512 2 78764 1 10359 0 2315 15972 6946 15972 5557 13892 11193 71 15049 1 6946 47100 0 33000 0 63600 10844 16 62269 39 88.89 63 88.90 % 70044 31
53 99578 77 19545 34 16287 8 70424 8 10359 0 2431 17569 7293 17569 5834 14586 12313 08 15801 6 7293 40428 0 33000 0 63600 13253 44 65438 56 88.92 73 88.93 % 73584 34
P/V Ratio
Break even sales
96
CASH FLOW STATEMENT
Particulars (A)CASH FLOW FROM OPERATING ACTIVITIES Net Profit Add: Depreciation Priliminary Expenses w/off Income Tax General reserve P&l a/c Interest on capital Net increase/decrease in asset Less: Net increase in current asset Add: Net decrease in cuurent asset Add: Net increase in cuurent liabilities Less: Net decrease in currentliabilities cash flow from operating activity Less: Income tax paid
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
1123290 1137405 63600 481410
1507639 996241 63600 636131
2004622 883296 63600 859124
2530304 787641 63600 1084416
3092469 704248 63600 1325344
330000 -150000 0 17000 3002705 -481410
330000 -15000 1700 3530311 -636131
330000 -16500 1870 4126012 -859124
330000 -18150 2057 4779868 -1084416
330000 -19965 2264 5497960 -1325344
Net cash flow from operating activty
(B)CASH FLOW FROM INVESTMENT ACTIVITY Investment in fixed asset Increase in contingency
2884180 2521295
3266888
3695452
4172616
-10681800
0
0
0
0
97
Preliminary expenses
-318000
0
0
0
0
Net cash flow from investment activties
(C)CASH FLOW FROM FINANCE ACTIVITY Loan taken from bank Capital of Partners Less: Interest on capital Less: Share in profit Add:share in profit invested by partners Repayment of Loan
-10999800
0
0
O
0
5593000 5500000 -330000 -868632
0 -330000 -1171111
0 -330000 -1563697
0 -330000 -1979243
0 -330000 -2423975
-556000
Net cash flow from finance activities
NET CASH INFLOW (A+B+C) Add: Opening balance Closing balance
-556000 -2057111 827069 859863 1686932
-556000
-556000
-556000
-2449697
817191 1686932 2504123
-2865243
830208 2504123 3334331
-3309975
862640 3334331 4196971
9338368
859863 0 859863
98
RATIO ANALYSIS (IN RS.)
Particular 201 1-12 201 2-13 201 3-14 201 4-15 201 5-16
PROFITABILITY RATIO
NET PROFIT RATIO(%)
=(NET PROFIT/SALES)*100
15.1 8
18.5 2
22.3 8
25.6 9
28.5 4
OPERATING RATIO(%)
=(PBIT/SALES)*100
36.0 7
38.7 1
42.3 7
45.4 7
48.1 3
CASH PROFIT RATIO(%)
=[(PAT+DEPRICIATION)/SALES]*100
30.5 5
30.7 5
32.2 4
33.6 8
35.0 3
RETURN ON INVESTMENT(%)
=(PBIT*100)/(TOTAL ASSETSMISC.EXPENSES)
25.3 3
30.3 6
36.7 3
43.1 8
49.3 7
EFFICIENCY RATIO
FIXED ASSETS TURNOVER RATIO =SALES/FIXED ASSETS TOTAL ASSET TURNOVER RATIO =(SALES)/(TOTAL ASSETS-MISC.EXP.) SOLVANCY RATIO PROPRIETOR'S RATIO(%) =PROPRIETOR'S FUND/TOTAL ASSET0.69 0.77 0.86 0.78 1.05 0.87 1.29 0.95 1.58 1.02
0.52
0.54
0.56
0.57
0.58
99
MISC.EXP
COVERAGE RATIO
INTEREST COVERAGE RATIO =PBIT/INTEREST ON DEBT DEBT SERVICE COVERAGE RATIO =(PAT+DEPRECIATION+INTEREST+PRELIMIN ARY EXP)/(INSTALLMENT+INTEREST) 3.98 5.21 7.06 9.5 12.9 0 4.44
2.44
2.73
3.19
3.52
LIQUIDITY RATIO
CURRENT RATIO =CURRENT ASSET/CURRENT LIABILITIES LIQUID RATIO =LIQUID ASSETS/ LIQUID LIABILITES DEBT EQUITY RATIO =DEBT / EQUITY 59.4 0 50.5 8 0.92 99.0 3 90.2 1 0.76 130. 56 121. 74 0.61 156. 18 147. 36 0.5 177. 44 168. 62 0.36
ANALYSIS
100
Net Profit Ratio
22.38 15.18 18.52 25.69 28.54
2011-12 2012-13 2013-14 2014-15 2015-16
Interpretation: The firm’s net profit ratio is continuously increasing. It shows the firms capability to increases revenue from its business.
Operating Ratio
42.37 36.07 38.71 48.13 45.47
2011-12 2012-13 2013-14 2014-15 2015-16
Interpretation: Operating profit of the firm is continously increasing over the five years, but it dose not increase with more margins because of increses in revenues expenses in the all year
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ROI
49.37 43.18 25.33 30.36 36.73
2011-12 2012-13 2013-14 2014-15 2015-16
Interpretation: The return of investment indicates that the earning capacity of the firm through the amount invested as the revenue generation increases year by year and the percentage of return on investment increses from year to year as 1st year return on invrstment is 25.33% and 2nd year it is 30.36%, that indicate increment of 5.03% and like wise in second years it incerase 6.37%, in 3rd year in shows increment of 6.45% and in 4th year it increases by 6.19%.
Current Ratio
177.44 99.03 59.4 2011-12 2012-13 2013-14 2014-15 2015-16 130.56 156.18
INTERPRETATION:
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The current ratio shows the working capital position of the company. Ideal current ratio is 2:1 but the above ratio’s are around 59 to 177 which is above ideal ratio but justifiable in our industry.\
Debt Equity Ratio
0.92 0.76 0.61 0.5 0.36
2011-12 2012-13 2013-14 2014-15 2015-16
Interpretation: Our debt equity ratio is decreasing every year continuously which is a good sign for any business.
INTEREST COVERAGE RATIO
3.98 5.21 7.06 9.51 12.9
2011-12 2012-13 2013-14 2014-15 2015-16
Interpretation: Our Interest coverage ratio is increasing every year continuously which is a good sign for any business.
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SWOT ANALYSIS
A ‘SWOT’ analysis is required to check the firm’s Strength, Weakness, Opportunity and Threats which are there in the external environment. It will give the overall idea about competitors and current situation of the firm. Strength and Weakness are the internal characteristics that can be improved by the firm, while Opportunities and Threats are the external factors which will predict the current condition of the firm to make decision.
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Strengths
It require very little time Well trained employees. Price is kept that it should be in the range of everyone’s purchases. Good quality services. It’s give a car shiny and new look
Weaknesses
Single outlet at one place. Investment made in research and development is very low. It is not a well know service It is little bit costlier than hand car wash. The need to have a fairly constant volume of business to support the necessary service staff.
Opportunities
Big potential market as only few firm provides this service. Participation within a steadily growing industry. The ability to decrease the fixed costs as a percentage of an individual sale as volume increases. There is a scope of expansion of new branches
Threats
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Future/ potential competition from a franchised firm. A slump in the economy, reducing discretionary spending. The perception that there is not a difference in quality between a hand and machine wash.
Conclusion
Our feasibility project on establishing car spa has had an effect on us which transgresses beyond mere analysis of relevant factors. It has been an experience which has enlightened and enabled us to be better in terms of our pool of knowledge. We truly felt that we know and understand things better than we used to yesterday as far as this industry is concerned. Considering that we had a change of topic midway due to justifiable reasons, we were hard-pressed for time but we took it as a challenge and it helped all of us to give it our best shot in the time given which also taught us important lessons in time management, multi-tasking, understanding group dynamics and to unlock the otherwise esoteric lock of financial feasibility which we would always cherish in our life—the times we felt utterly petrified and confounded when we couldn’t get our figures right and suddenly had an EUREKA MOMENT when we finally sorted out the numerical. Finally, the result of this feasibility project is ? It is feasible with profits surging every year. All the factors considered for evaluation yielded highly positive results. ? As far as the financial aspects are considered, the profitability shows a continuous upward trend. ? As far as the survey was considered, we found that the no. of respondents of oursurvey.We would have to address this concern by targeting our marketing efforts at them in a much more convincing way. We again, would like to “H2O” car spa center that we visited for the guidance purpose which had provided us practical knowledge.Weare also thankful to the faculties who have guided us at every junction in this journey.
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AT last we would like to conclude by summing up in this way:
“IT IS GOOD TO HAVE AN END TOWARDS A JOURNEY;
BUT IT IS THE JOURNEY THAT MATTERS IN THE END.”
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Future Expansion
1) To take care of every need and to provide the best services to our customers, we are going to upgrade our existing plant with the latest technology by importing latest machinery from Japan and Germany. 2) Considering the overwhelming response from our customers and to take care of the need of the customer of different areas of the city, we are going to open 2 branches in the city by the end of October, 2011. 3) We are also looking for widening our client base across the state by opening 5 new branches in the different parts of the state. 4) In the next fiscal year, we are planning to start our mobile van services that can carter the need of the customers of the remote areas. 5) We are also planning to start some entertainment services like internet café, coffee café for our valuable customers to spend their waiting time. We are also going to equip with the technology that reduces the waiting time of our valuable customers.
Bibliography/Webography
www.google.com www.alibaba.com www.trademy.com
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www.toolsmachine.com www.chemicalguys.com
Assumptions Underlying
? ? ? ? ? ? ? ? ? ?
There are 300 working days in the year. Purchase of raw material will increase @ 10% every year. Closing stock will be 25% of purchase price. Salary will increase @5% every year. Workers will be given holiday on Tuesday. Preliminary expenses are to be written off in 5 year. Loan is taken from SBI @12% p.a. The period of loan is 10 year. Raw-material is purchased in every 3 month. Profits are to be distributed among partner equally.
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? ? ? ?
Interest on capital and profit are to be taken over by partners. Tax rate will be 30% flat rate. Revenue will be increased by 10% in every year. There are 5% increase in stores, repairs, bank charges, municipal taxes, newspapers, audit fees and stationary expenses, in every year. ? There is 10% increase in electricity, advertisement, and communication expenses. ? As cash on hand is high, it can be invested.
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