Business Plan on Car Customization
1. EXECUTIVE SUMMARY
The marketing Plan entails-taking a long term views of the marketing and its environment. A marketing Plan is the written document that details the necessary actions to achieve one or more marketing objectives. It can be for a product or service, a brand, or a product line. Marketing plans cover between one and five years. A marketing plan may be a part of an overall business plan. Solid marketing strategy is the foundation of a well written marketing plan. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use.
Car customization is gravitating towards having more to do with impressions and status. We are essentially launching on to this trend by focusing on the element not to do with engines and racing, but impressing friends. In recent years, the car customization industry has received increased promotion due to pop culture movies (i.e. "The Fast and the Furious, Gone in 60 Seconds) and TV shows ("Pimp my Ride", "Overhauling", etc.), which has stimulated the demand for car customization. Our target market, consisting of 18-34-year-old males, makes improvements to their cars for many reasons; for prestige, to impress friends, to feel cool, and to be unique. Our target customer loves their cars, but they go to great expense to make them unique and different from others. For many car owners, having a car that is like everyone else's is boring. Many people love to express themselves through their cars. This is the consumer group with a high amount of growth, with popularity in this section increasing due to increased presence in pop culture. The disposable income of this group is also on the rise, leaving them with more money to spend on purchasing and personalizing vehicles. Customers tend not to customize their cars due to products needed being too expensive, being uneducated about how to best customize their vehicle, and because of the weather and environment each lives in.
Superior exterior will maintain a competitive advantage in the car customization industry through its superiority in innovative design, specialization (focusing only on the aesthetic aspect of the car), providing a comfortable environment to shop, proving to be a trustworthy supplier and customizes, and by best advising our customers on how to get the most out of the appearance of their vehicles. Customers who wish to customize their vehicles to make them unique will find Superior exterior very beneficial as it provides many different brands compared its competitors, making it more desirable for those who want unusual but tasteful features, and for a car that stands out from the crowd.
Sri Lanka is one of the growing economies of Southeast Asia. In the 19th and 20th Centuries, Sri Lanka became a plantation economy, famous for its production and export of cinnamon, rubber and Ceylon tea, which remains a trademark national export. But Sri Lanka’s automobile industry is not so developed rather growing dramatically. Its car industry is dominating by Japanese Toyota and Indian’s Tata Company. Most of the Sri Lankan’s long for fashionable at a reasonable cost. But the automobile companies in Sri Lanka cannot fulfill the customer demand. Though sometimes they provide low cost car but it’s not satisfactory to them. Hence it is a profitably potential market so we choose Sri Lanka for exporting our customized car.
2. COMPANY OVERVIEW
2.1 Company Name: “LUMINOUS CAR”
2.2 Company Ownership: The “LUMINOUS CAR” will be a privately owned, operated, and funded partnership among six people.
2.3 Mission: LUMINOUS CAR provides a unique car customization experience to the customers in the young boy's high income areas of Sri Lanka. One that focuses on customer satisfaction first. It is the goal of our firm to have 100% customer satisfaction in regards to quality, friendliness, time to completion and to discover new ways to exceed the expectations of our clients.
2.4 Vision: Our vision is to provide distinct and integrated exterior makeovers for various types of privately owned vehicles through unique designs and quality and position ourselves as the leading globally car customization company.
2.5 Key Product or Service: Exterior Car Customization. (Body Customization and assembling)
2.6 Strategic Goals and Objective: The objectives of LUMINOUS CAR are the following:
- To enter into the Lankan’s car industry.
- To develop a sustainable start-up business.
- To capture at least 15% market within 3 years and 50% in 10years.
- To increase the customer base by 20% per year.
- Institute a program of superior customer service through rigorous evaluation of service experience.
- To create a service-based company whose primary goal is to exceed customer's expectations.
2.7 SWOT Analysis
- Wide variety of unique innovative design of body customization to choose from. Superior Exterior will maintain a competitive advantage in the car customization industry through its superiority in innovative design, specialization (focusing only on the aesthetic aspect of the car), providing a comfortable environment to shop, proving to be a trustworthy supplier and customize, and by best advising our customers on how to get the most out of the appearance of their vehicles. Customers who wish to customize their vehicles to make them unique will find Superior exterior, very beneficial as it provides many different brands compared its competitors, making it more desirable for those who want unusual but tasteful features, and for a car that stands out from the crowd.
- Flexible pricing from low to high range of prices satisfying needs of all different types Lankan customers. For all sorts of designs, our company offers different shapes and sizes as well that is are the key dependants on the number of labor hours needed to perform each job which ultimately decide the pricing for those products. Since the customer has the flexibility of deciding from a set of options created by the designer, the pricing that we can ask for is very flexible.
- Easily accessible and centrally located around target market. The target market that we have selected, are based on the area of Colombo, Moratuwa, Negombo, Kandy and neighboring areas of Sri Lanka. These areas are not fragmented or far away from each other.
- The importer needs no huge advertising campaigns necessary after initial extensive promotional campaign because car customization is valued based mostly on "word of mouth". A business such as this one travels fastest by the word of mouth. Peers and friends and families talk bout such new innovativeness and critics are always around to press on us. This would actually be beneficial for us since that would make them come to us and check out what we have in store of them. This is an opportunity to activate direct marketing system and enable us to build a customer database like no other.
- High cost of production because mass customization and inexperience's of early movers in the car customization industry. Even though we have predicted and analyzed the growing demand of this service and also that after entering the Sri Lanka n’s market the service will grow, but the process of mass customization for meeting such demand is expensive.
- Longer lead time because of small-scale production capacity. The manufacturing process that we will talk about later in this report would clarify that due to bottle neck operations we would incur longer lead time and that this would undergo slack in our processes.
- Negative "word of mouth" can greatly harm reputation and sales of company. Just like the way a positive word of mouth can rise the sales of our products due to trying out behavior of our product, a negative word of mouth can result in a disaster for those closely related customers who always work their cars in special places where there is a string agreement between them. It is essential that we keep this matter in to consideration.
- Small service categories: being in the automobile industry where there are more than several sectors included, we would only work on car customization. Our competitors are fully equipped with other activates such as engine repairing, mechanical activities, electrical activates and so on. Diversifying into our service would not stop them thought greater start up cost since their cost would be lower than we had to undergo being in the business for the first time. Further more we do not offer interior customization.
- Though the communication facility between Bangladesh and Sri Lanka is not so developed so we have to suffer for it.
- We will get early mover advantage. Being the one of its kind in the industry by integrating various services to serve just one, we have come up with the proper line of business at the peak point of time. Hollywood movies reflect the Sri Lanka teenage Sri Lanka culture that is based on the people's RIDES; cars.
- Sri Lankan government has slashed the taxes on car imports by 50% with effect from 1st June 2010 in response to the request of the importers who lamented that vehicle imports had come down by 90% last year due to high taxes levied. Cars are subjected to as much as 300% taxes in excise duties, import duties, value added taxes, port and airport development levies and national security levies in addition to the 15% surcharge on all imported items. The state expects the car imports to pick up and the trend was displayed today in Colombo Bourse where the share prices of companies importing cars rose. (Source: Colombo Page News Desk, Sri Lanka.)
- Sri Lanka’s Society and Culture is gravitating towards a materialistic value system where a persons car is a now considered a status symbol. Showing off the car which is unique than that of the others in a parking lot would motivate the driver to take the car to places. Keeping up with that pace of ever changing styles that is ultimately contagious would turn into a hobby. This would ensure that having after sales service would bring back the customer once served.
- Recent movies, magazines, etc. help to get target market motivated about customizing their cars, indirectly generating demand for car customization in Sri Lanka. Growing industry which is becoming greatly popular and profitable.
- Possibility of Product Diversification from exterior customization to interior customization and other auto repairing and value added services.
- Potential large market in future. The more the branding of our company logo we spread more will our target market disperses into other demographic areas of our nation. The age limit would then widen. Cars are always transferring hands before they go to scrap. This means an average recondition car might change 5 owners till it is stripped. And every time the car changes hands, there might be a high possibility for them to renovate their cars to look unique.
- Low tariff resulting in already existing large-scale importers in this industry. Our prime competitors being the importers who doesn't have to go through the hassle of manufacturing any products but to import the most sold product worldwide and on intuition has a hassle free job to do in order to run their business.
- Potential for industry to lose popularity and for car customization to be a fad.
- Even the lowest priced products are considered to be expensive by certain higher middle income consumers. This might affect our expansion towards wider demographic portions of the pie.
- Poor rood and highways Infrastructure in Sri Lanka. Certain low profiles body kits would not be suitable for the car to have such customization. There are limits to how much ditches and holes and how rough the road are as to support the driving of low profile customized cars to drive on.
- Toll extraction by the local terrorists and political workers.
- Economics forecast of higher inflation rate might also reduce consumer's purchasing power and reduce the demand of luxurious car customization.
- In 2005-06 fiscal year the tax rate was increased by 187%. As a result Car sales may hit by high duties at any time.