Business Opportunity in Automobile Industrty

7/29/2019 Business Opportunity in Automobile Industrty

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Title:

BUSINESS OPPORTUNITY IN AUTOMOBILE INDUSTRY

THE BUSINESS PLAN

Name of members:

1.ZahrulKayum bin Mohamed2.MohdAmeerul Ashraf bin Ismail3.Abdul Qayyum bin Mahayuddin

4.Muhammad Fathi bin Zafisah5.NorhiyatibtMuhamad Noor

Subject: IMT 2432

TTO Name: MsAlyster Wong


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CONTENT

1.Business Idea2.The Marketing Plan3.The Operation Plan4.The Admin Plan5.The Financial Plan


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Business Idea

Customer ValueThe business nature would be of the dealership of the Perodua unit of

Perodua Group. The business will only sale the car and provides service

to Perodua cars.

The company vision is to be a leading automobile dealer in Kuala

Lumpur in the fourth coming years in the car dealership.

1.Objective of the company : To give the superior quality products and services with affordable

price.

To achieve 500 unit sales of car in year one. To increase number of Service Centre in future.2.Customer value :

Customer will choose either modern design or performance of the car.

Modern design performance

Aerodynamic design the value torque of the internal-combustion

engine

Interior design horsepower

Exterior design and accessories Air intakes

Color design Exhaust system


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3.Benefit to the customer : Good after sale service Duration of car warranty Many and nearby Service Centre so it easy to send car for service Low spare part cost

Market Size and ContributionAim:

i. To target 20% of car dealer market shares in Klang Valley.

ii. To control 60% of Perodua service centre in Klang Valley.

Competitor AnalysisThere are many competitors in this industry.List of competitor such as Proton, Kia, Naza and others.Advertising is one of the most common ways to promote the car.The company will organize campaigns, agents and road shows.Other important marketing strategies to compete with other car

dealers are:

i. Quality controlii. Gift

iii. Extended service and warranty of the car


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Financial Issues Planning to get a loan from the banks and also join ventures with

any investors that want to join our company.

Get loan from Bank Negara or other bank.

Entrepreneur FitQuestions Answers

Do you and the team have the knowledge and skills required

for this business?

Yes

Do you have any experience in this industry? No

Are you interested in this business? Yes

Depending on the nature of the business, do you have the

required network in developing the business?

No

Do you take risks or a gamble or risk averse? Yes

Do you have a good reputation in the market with respect to

integrity, honesty, ethics?

Yes

Does your entrepreneurial team shares your passion and

consists of competent professionals?

Yes


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The Marketing Plan

The Marketa) Description of target customer profile by using variables such as

gender, age, income, lifestyle and potential market.

Variable Description

Gender Suitable for either male or female

Age Must be between 25 and above

Income Middle range income approximately above RM3K per

month.

Lifestyle A car is suitable for single individual or for a small family

Potential

market

For domestic used of for export

b) > Estimation for the potential market for each target customer

and the market growth in %.

> The annual market growth for the targeted customer is 4%.

YEAR 2012 YEAR 2013 ( Year 1 X Est.market growth)


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Num of total

potential sales

in units

1 year= 189K units

1 unit=RM 56,300.00

189K units=

RM 1.06 billion

1 year = 196K units

1 unit = RM 56,300.00

196K units = RM 1.1 billion

References

http://paultan.org/2013/01/15/perodua-sells-a-record-189000-

vehicles-in-2012-retains-market-leading-position-with-30-2-share

Market Share and Sales ForecastYear 2012 Year 2013

Estimated market

share %

0.2% 0.5%

0

50

100

150

200

250

0%

5%

10%

15%

20%

25%

30%

35%

2005 2006 2007 2008 2009 2010 2011 2012 2013

UnitsSo

ld

MarketSh

are

Year

Registration & Market Share %

Units Sold Market Share
http://paultan.org/2013/01/15/perodua-sells-a-record-189000-vehicles-in-2012-retains-market-leading-position-with-30-2-sharehttp://paultan.org/2013/01/15/perodua-sells-a-record-189000-vehicles-in-2012-retains-market-leading-position-with-30-2-sharehttp://paultan.org/2013/01/15/perodua-sells-a-record-189000-vehicles-in-2012-retains-market-leading-position-with-30-2-sharehttp://paultan.org/2013/01/15/perodua-sells-a-record-189000-vehicles-in-2012-retains-market-leading-position-with-30-2-sharehttp://paultan.org/2013/01/15/perodua-sells-a-record-189000-vehicles-in-2012-retains-market-leading-position-with-30-2-share


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Estimated market

share in total annual

sales (RM or Units)

392 units =

RM22.1million

980 units =

RM 55.2 million

Selling Per MonthMonth Year 1 0.5% increase Year

2

Jan 36 18 54

Feb 30 15 45

March 38 19 57

April 30 15 45

Mei 20 10 30

June 28 14 42

July 30 15 45

August 26 13 39

Sept 32 16 48Oct 36 18 54

Nov 42 21 63

Dec 44 22 66

TOTAL 392 UNIT 588 UNIT

Profit Per MonthMonth Year 1 0.5% increase Year 2

Jan 2 MILLION 1 MILLION 3 MILLION


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Feb 1.6 MILLION 800 K 2.4 MILLION

March 2.1 MILLION 1.05 MILLION 3.15 MILLION

April 1.6 MILLION 800 K 2.4 MILLION

May 1.1 MILLION 550 K 1.650 MILLION

June 1.5 MILLION 750 K 2.25 MILLION

July 1.6 MILLION 800 K 2.4 MILLION

August 1.4 MILLION 700 K 2.1 MILLION

Sept 1.8 MILLION 900 K 2.7 MILLION

Oct 2 MILLION 1 MILLION 3 MILLION

Nov 2.3 MILLION 1.15 MILLION 3.45 MILLION

Dec 2.4 MILLION 1.2 MILLION 3.6 MILLION

TOTAL 22.1 MILLION 33.1 MILLION

The Marketing StrategyProduct

The good market strategy will affect the successful of businessalong with effort and better service that is demand by our

customer.

Quality High quality

Warranty Our company provides 2 years warranty

for every single car depend on problem.


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Branding Our product will be named as Perodua.

Design features We are targeting to sell sporty and MPV

type of car.

Distribution

The product is selling directly to customer by our shop or throughour [email protected]. For further information,

customer can contact direct to our office.

Location

Our business is located at Klang valley because of market fact.Promotion

We also do some promotion to attract customer through roadshow and advertisement in newspaper.

Customer service

We provide show room at:Perodua Show Room

No 25 Jln. Biduk 3/2, Seksyen 19,

40000, Shah Alam, Selangor.

We provide:

Sells car Service car
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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The Operation Plan

Benefit To The CustomerBenefits Can be provided by the operations

function?

Quality Yes

Spare part Yes

Customer service Yes

Delivery within 3 weeks yes

Cost of production Yes

3 years car warranty Yes

Process Planning


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i) Things to sale a car: Certification to sell a car Showroom Transports LorryCrane Flyers Advertisement magazine roadshow newspaper

Receive order

from customerOrder how many cars

at factory

All cars are delivered

to the showroomProvide a document

to the customer

Cars are being

register at JPJCustomer receive car

in one month


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ii) Bill of material (BOM):cost to sell a car:

Material RM

Showroom 2,000.00 per month (R)

Transports 1,500.00 per use(R)

Flyers 500.00

Advertisement 5,000.00

Total cost = RM 33,000.00 + RM 9,000.00

Target selling = RM58,800.00 per car

Sales forecast next 2 years.month 2013 2014 2015 2016

Jan 36 54 78 94

Feb 30 45 65 75

Mac 38 57 84 90

April 30 45 89 93

Mei 20 30 93 95

June 28 42 85 89


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July 30 45 88 93

Aug 26 39 95 97

Sept 32 48 65 70

Oct 36 54 80 88

Nov 42 63 90 96

Dec 44 66 87 90

TOTAL 392 UNIT 588 UNIT 999 UNITS 1070 UNITS

0.2% 0.5% 1.0% 1.5%

LocationWe choose to locate our showroom at Subang Jaya. Otherwise,

Shah Alam is the most strategic place to start up our business.

The layout planShowroom


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Man Power PlanningPosition Numbers Category

Salesman 5 Direct

Manager 1 Indirect

Driver 4 Direct


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Remuneration schedule for operationPosition No Monthly

salary per

person

Total

monthly

salary

EPF

13%

SOCS

O 2%

Total

monthly

amount

Bonus 1

month

Total

annu

al

mont

h

Salesman 5 Rm2000 Rm1000

0

Rm260 Rm40 Rm1150

0

Rm2000 Rm14

8000

Manager 1 Rm3000 Rm3000 Rm390 Rm60 Rm3450 Rm3000 Rm44

400

Driver 4 Rm1000 Rm4000 Rm130 Rm20 Rm4600 Rm1000 Rm55

204

Facilities, Machine and Equipment PlanningName of

fixed asset

No Cost per unit Total costs Useful

life

Depreciation or renta

per month

Transport 2 RM 1500 RM 3000 - RM 1500 (R) (per use)

Showroom 1 RM 100 k RM 100 k 5 years RM 1666 (D) (5 years)

TOTAL RM 103 k


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Operational Budget for OperationJan Feb Mac Apr May Jun

Salaries

(epf ,

socso)

RM 9200 RM 9200 RM 9200 RM 9200 RM 9200 RM

9200

Water and

electricity

RM 2000 RM 2000 RM 2000 RM 2000 RM 2000 RM

2000

Insurance RM 1000 RM 1000 RM 1000 RM 1000 RM 1000 RM

1000

TOTAL RM12200 RM12200 RM12200 RM12200 RM12200 RM1

200

July Aug Sept Oct Nov Dec

Salaries

(epf ,

socso)

RM 9200 RM 9200 RM 9200 RM 9200 RM 9200 RM1520

Water and

electricity

RM 2000 RM 2000 RM 2000 RM 2000 RM 2000 RM 2000

Insurance RM 1000 RM 1000 RM 1000 RM 1000 RM 1000 RM 1000

TOTAL RM12200 RM12200 RM12200 RM12200 RM12200 RM1820


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The Admin Plan

The organizational structure

Generalmanager x 1

Marketingmanager x 1

Salesman x 5

Driver x 4

Admin &

Financemanager x 1

Accountsclerks x 1

HR Officer x 1

IT officer x 1


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Position Numbers Category

General manager 1 Indirect

Marketing manager 1 Indirect

Salesman 5 Direct

Driver 4 Direct

Admin & Finance manager 1 Indirect

Accounts clerks 1 Direct

HR Officer 1 Indirect

IT officer 1 Indirect

Remuneration schedule for adminPosition No Monthly

salary

per

person

Total

monthly

salary

EPF

13%

SOCSO

2%

Total

monthly

amount

Bonus 1

month

Total

annual

month

Admin &

Finance

manager

1 Rm3000 Rm3000 Rm390 Rm60 Rm3450 Rm3000 Rm444


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Accounts

clerks

1 Rm2000 Rm2000 Rm260 Rm40 Rm2300 Rm2000 Rm296

HR

Officer

1 Rm2000 Rm2000 Rm260 Rm40 Rm2300 Rm2000 Rm296

IT Officer 1 Rm2000 Rm2000 Rm260 Rm40 Rm2300 Rm2000 Rm296

Facilities, Machine and Equipment PlanningName of fixed

asset

No Cost per unit Total costs Useful

life

Depreciation or

rental per month

Computer 4 RM3000 RM12000 5 YEARS -

Fax machine 2 RM2000 RM4000 3 YEARS -

Planner and

organizer

1 RM500 RM500 8 YEARS -

Bulletin board 2 RM100 RM200 2 YEARS -

TOTAL RM 16700

Monthly Operational Budget for administrationJan Feb Mac Apr May Jun

Salaries

(epf ,

RM RM RM RM RM RM 10350


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July Aug Sept Oct Nov Dec

Salaries

(epf ,

socso)

RM

10350

RM

10350

RM

10350

RM

10350

RM

10350

RM 19350

Water

and

electricity

RM 1000 RM 1000 RM

1000

RM

1000

RM 1000 RM 1000

Others RM 500 RM 500 RM 500 RM 500 RM 500 RM 500

TOTAL RM

11850

RM

11850

RM

11850

RM

11850

RM

11850

RM 20850

Total for 1 years operational budget = RM 11850x 11

= RM 130350+ RM 20850

= RM 151,200.00

socso) 10350 10350 10350 10350 10350

Water

and

electricity

RM 1000 RM 1000 RM

1000

RM

1000

RM 1000 RM 1000

Others RM 500 RM 500 RM 500 RM 500 RM 500 RM 500

TOTAL RM

11850

RM

11850

RM

11850

RM

11850

RM

11850

RM 11850


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The Financial Plan

Documents

Business Opportunity in Automobile Industrty