B plan for cool cab’s in automobile industry

B-Plan for cool cab’s in automobile industry Group-30Name:M.Shanmukhnath.Class:BBA(F&IB)-B.Roll no:1623622.

Submitted to : Michael Dsouza. ED(Dept),VISTAS.

Impact of BREXIT on automobile industryBrexit doesn’t affected that much for the automobile

industry but it affected the companies which have their businesses in U.S,because dollar rate decreased very worstly at that point of time.

Then if you are starting a new business in U.K,then you will get more oppurtunities to succeed.

Automakers were already struggling to make money. "Europe has gone from the most profitable region in the world in 2007 to the least profitable," said Erik Jonnaert, secretary general of ACEA, the European automakers association, citing the cost of meeting increasingly stringent regulations.

Miller

Taxi’s

Business Plan

Mishaal Hamza

Cool Cab’s

Executive Summary

Opening up exclusively for the lower income groups and in a location wherein High end automobiles aren’t a scenario, Cool Cab’s is a start-up that offers a complete store for all the models of the 4 Wheelers as well as a retail parts store for 4 Wheelers. Cool Cab’s showrooms will be opened in sunderland in north,cardiff in west,norwich in east,southampton in south.These are the main cities in u.k and the nearby places is taken care by the near by headofffices only and my headquarters are located in Birmingham.

The showroom will be first opened in Birmingham with a rented space in the beginning after which will be expanded after a period of 2 years

Mission

The mission of Cool Cab’s will be to give the customers 4wheeler’s more than just a vehicle as that of being a desirable mix of quality Automobiles and to create a friendly atmosphere where Cool Cab’s will be known as their 2nd home away from home in terms of the service they would be getting.

Company Ownership

Cool Cab’s will be completely owned by S.Hawaza,my close friend who is a Management graduate from Harvard Business School, USA. He has a 6 year experience with McKinsey & Company in Florida and the last position held was that of a Procurement Manager.

Keys to SuccessCool Cab’s Keys to success are:Marketing ServicesRecruitment of experienced managerial talentRaising SalesProviding excellent servicesCustomer SatisfactionA wide range of all the brands available at any point of

time

Objectives

To become the leading dealer in the 4 Wheeler Industry.

Increase sales to make Cool Cab’s a sustainable business.

Significantly increase sales by creating a new market segment of customers

Company Summary

Cool Cab’s will be an exclusive outlet for all the brands of 4 wheelers available in the market, wherein customers will have a look into all the brands and will enable them to make a choice of their preferred brand of vehicle. Cool Cab’s is all about All brands under one roof.

Start Up Summary

The owner of the showroom will put in an amount of Rs. 25,00,000 and the rest will be taken a loan for a 5 year basis which will be repaid to the bank on time. The property at which this showroom is located belongs to Mr. Prem who is the father in Law of Cool Cab’s owner,Mr.Shanmukh. He has agreed to give away the showroom which was earlier a furniture showroom for a Rental agreement of 10 years, each year which would be Rs 5,00,000.

Application of fundsRental CostsManpower CostsSalesman & Professionals: The salaries paid to the salesman and

Professionals would be the best in the market and would not compromise on it as it will be paid at its best.

Administration Staff: The admin staff or the person in charge of accounts and taking care of the requirements of vehicles from dealers have to also be given salary on a monthly basis

Marketing & Promotion costs: These costs will be incurred in the beginning of its operations in order to create a visibility to the market.

Development / Infrastructure Costs: These costs include costs towards Interiors, Furniture and Fittings to make the showroom attractive.

Maintenance Costs

Market Analysis Summary U.K’s automobile industry witnessed a growth of 16.04% in 4-

wheeler segment. Indian This segment includes a range of vehicles mostly cars.

The main competitors for me is the lyftcabs,kabbee,flywheel,ola taxi,grab taxi etc.

So as I am launching into a perfect competition my price should be somewhat lower than the competitors and should maintain the same quality service to the people.then only I can pickup my business.

Sales in U.K automobile industry During financial year 2014-15,4-wheeler sales in U.K

market showed a growth of 17%, with an increase in exports by more than 40%. Sales trend of 4-wheelers in U.K market INCREASING.

Strategy and Implementation Summary

Competitive Edge: Cool Cab’s competitive edge lies in the vision of its Owner, who understand better than many of their rivals that a visit does not just include a customer to but a 4 wheeler, it includes the entire service experience

Positioning Statement: It is the express purpose of Cool Cab’s to become the local leader in quality and service experience of all the small Dealerships firms within the Birmingham’s region while maintaining a low cost plan.

Marketing Strategies The company has a modest program of marketing

its services that include the following:Flyers.Direct mailers.Discounts to regular Customers.Newspaper ads.Yellow pages.Referrals through other local businesses.

Promotion Strategy

The promotion strategy will take the form of flyers, direct mailers, price discounts, and advertisements in newspapers and yellow pages.Cool Cab’s will also make its presence felt in Micro Blogging sites like Twitter. Cool Cab’s does not desire to spend a large amount on marketing until the firm is ready to expand either into new facilities or open up new ones. It is estimated this will occur sometime after 2 years

Pricing StrategyCool Cab’s exists in a purely competitive environment

where each firm must be a price taker. In other words, the firm has no ability to affect the market price of its services, regardless of how many automobiles sells. In this case, therefore, marginal revenue (the revenue incurred by producing or servicing one more unit) is Just 10% to the price charged. Furthermore, because the demand curve is essentially horizontal, Cool Cab’s can sell automobiles at total capacity without effecting the price.

Sales Forecast

Since the 4 Wheeler industry is, operationally, a sales-shop environment, it is somewhat difficult to estimate sales.From our statistics earlier we have come to a consensus that there will be atleast 2 vehicles sold on a day to day basis and given that 10% is the margin the manufacturers give for the Dealers, it would mean that there would be a profit of Rs 10,000 per Vehicle. For the most part, sales for an automobile dealership are steady year round and reflect little seasonality.

Management Summary

Shanmukh nath worked with McKinsey & Company for 6 years before which he was associated with FORD Motors as the Sales Manager. Since that time, he has worked for a variety of projects for FORD in getting the main project under the TV head of overlooking the sales of 4 Wheelers in U.S. and has numerous certificates in achieving Targets

Financial Plan

As said earlier the finance will be taken care of for the initial investment in the following ways:

The owner,shanmukh nath contributing Rs 25,00,000Taking a loan from HDFC Bank for Rs 50,00,000 in

order to purchase the stock necessary to run the showroom

Cash Flow projected for the initial year of operations is given below:

Projected Income StatementYear1 Year2 Year3

Sales 7,00,00,000 7,40,00,000 8,20,00,000Direct Cost of Sales

6,30,00,000 6,66,00,000 7,38,00,000

Gross Margin 70,00,000 74,00,000 82,00,000

Gross Margin 70,00,000 74,00,000 82,00,000

Gross Margin 70,00,000 74,00,000 8,20,000

Marketing Exp 2,00,000 - -Rent 5,00,000 5,50,000 5,50,000Utilities 1,50,000 2,00,000 1,80,000Insurance 50,000 55,000 60,000Personnel 7,20,000 7,50,000 8,00,000Electricity 1,20,000 1,30,000 1,20,000Total Operating Plan

17,40,000 16,85,000 17,10,000

Human Resources

Summary

Cool Cab’s will be a huge busines enterprise at the end of the 3rd year and it will have a great market to cater to given the rate at which the market is growing. Since its a service having all the brands under the 4 wheeler category and this will be a huge chance for the business to develop in a place like Birmingham.

Technological supportNow a days as technology is growing day by day so

there is a compulsory need to go with the technological advancement for the succession of our business.

We are providing app in google play store and app store for customer’s easy convenience to use and they can select the destination and can ride.

Then they can select which brand of car they wants and can book their rides.

They will get offers like promo rides,bonus bonanzas,discounts etc for every 10 days.

THANK YOU.