auto spa

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Auto SpaYour Car Deserves Better

Dr. Taniya H. Anwar

Javeria Iqbal

Shaharyar Babar Chaudhry

Syed Abul Hassan

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GentleStreams Overview

Mission Statement

Auto Spa is dedicated to maintaining the loyalty ofour customers by delivering unrivaled world-classpersonalized mobile car washing and detailingservices in Pakistan.

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Current Problem

Car wash service providers are not qualified trained

professional.Cars are not thoroughly and consistently washed

Cars are washed on the surface.

Car detailing is not professionally done. The service is done by

apprentices. Risk of inferior cleaning product that may ultimate damage the

care

Not a efficient use of time

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Auto Spa Solution

Professionally trained team deliver service at the clients

location and time.

Cleaning machinery and tools are high quality and specificallydesigned for washing cars.

Quality undiluted cleaning solvents, compounds and waxes

Environmentally friendly

Money back guarantee !

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Underlying Technology

Mobile washing unit specifically designed for the job.

Best of breed cleaning technology (pressure cleaners,vacuums, heaters, water reclamation)

Web based technology (all platforms) to:

schedule appointment on the website

provide comments and feedback

provide on the stop educational material to help differentiate the

brand from others.

push out the latest promotional deals to their clients

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Target Customer

This is not a service of the masses. It is high value service .

Customers are not price driven. Under the value of theservice.

Brand chasers.

Clients may include:Luxury car owners

Business owners

High end professionals

Rent a car services

Car dealerships

Achievable target of 500 customers per month

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Value Proposition

Luxury car owners

Luxury car owners will value their expense purchase

Business owners

Pakistan business men have a very brand conscience mind set.

High end professionals

Emerging middle class car is a major asset to protect.

Rent a car services

No one wants to rent a dirty car.

Car dealerships

No one wants to BUY a dirty, smelly car.

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Buying Intention Survey Results

Location: Target market is DHA, Gulburg Model Town

Price: People are price insensitive between the range of 2,000and 5,000, depending on the service offered

Gender: Men are more willing to use the service, but workingwomen should not be discounted

Age: Not an variable for segmentation

Working professionals like the convenience

Business owners like the show-sha factor

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Marketing Strategy

Product: Highlight the high quality of our service, tools,materials and staff

Price: Valued based pricing- price points will be expensive asto establish a exclusivity in the brand and service.

Promotion:

Targeted and direct in selected community.

Promotions: Variety of low cost promotional strategies : offering

rewards to customers for referrals, discounts for bulk purchases,

lucky draw promotions

Education & Awareness:It is critical to our business successfor our client to understand the true value of our services.

Partnerships & Relationships:Partner with top tier hotelsand restaurants to offer services to their clients

Placement: We will be selling our products at selectedneighborhoods.

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Sales Strategy

Personal communication (referral and word of mouth)

Advertising (internet, outdoor billboard, target direct mail)

Sales promotions (reduce price during introduction months,coupons, gifts and prize promotions, discounts for referrals)

Publicity and public relations (trade shows, media initiatedcoverage)

Corporate branding (signage, uniforms)

Team will be trained (and incented) to upsell services

Special discounts on annual and semi-annual memberships

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Product Offering

Package Price Service

Basic Service(Bronze):

2500 Exterior power wash and interiorpressure blower/vacuum. Hand drying

Plus Services(Silver):

3000 Basic Services plus hand wax

Premium (Gold): 5000 Silver Service plus complete detailing

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Competition

The local petrol pump service stations manned by untrained

lay workers - liberally firing high pressure water at cars

The driver armed with a bucket, a pipe packet of surf and afew rags

The local "chota" who will rub a dirty rag on the car for 20

rupees

The owner of the car, equally untrained

When comparing service value these are not truly competitors.

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Start Up Costs

Legal 50,000

Accountant 50,000

Two Mobile Office 50,0002 Water Reclaimation System 500,000

Initial Stock of Chemicals & Solvents 100,000

Misc Tools 30,000

Office Furniture 50,000

Office Refurbishment 50,000

Office AC 50,000

Signage 20,000

Office Equipment 50,000

Marketing & Adverstiing 250,000

Technology Development 250,000

* Website

* In House Tools

Uniforms 100,000

Total Start-up Expenses 1,600,000

Start-up AssetsCash Required (Safety Cushion) 1,000,000

Start-up Inventory

Other Current Assets

Long-term Assets (Trucks) 2,400,000

Total Assets 3,400,000

Total Requirements 5,000,000

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Key Differentiators

Quality Service

Quality Materials

Save Time

Brand

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Key Issues

Initially no established client base

No one knows how good of a job our company does

No one knows who we are and that we exist

Staff retention as the work force tends to be casual workers

People (or their servants) can do it themselves; customersmust believe there is a value added

Quick cheaper "copycats" will emerge - must differentiate

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Financials / Projections

Year 1 Year 2 Year 3

Sales 10,185,000 23,562,500 31,700,000Direct Cost of Sales 2,816,250 6,655,625 9,130,000

Gross Margin 7,368,750 16,906,875 22,570,000

Gross Margin % 72.35% 71.75% 71.20%

Operating ExpensesPayroll 2,184,000 3,986,400 4,385,040

Sales and Marketing Expenses 1,018,500 2,356,250 3,170,000

Depreciation 480,000 528,000 580,800

Health Insurance 120,000 132,000 145,200Incentive Pay 254,625 589,063 792,500

Accounting / Legal 60,000 66,000 72,600

Utilities: Electricties 180,000 198,000 217,800

Utilities: Mobile Phone (2) 120,000 132,000 145,200

Utilities: Phone/Net 60,000 66,000 72,600

Utilities: Gas 12,000 13,200 14,520

Utilities: Water 60,000 66,000 72,600

Maintainance of Trucks 120,000 132,000 145,200

Rent 480,000 528,000 580,800

Total Expense 5,149,125 8,792,913 10,394,860

Total Operating Expenses 5,149,125 8,792,913 10,394,860

Profit Before Interest and Taxes 2,219,625 8,113,963 12,175,140

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Current Status

Concept & Financial feasibility modeling completed and

validated

Buying intention surveyed

Vendors reviewed: reviewed & selected required equipmentand meterials

Target soft launch for January 1, 2015

auto spa

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