XYZ Marketing Sdn Bhd – Marketing Plan and Strategy
Executive Summary
XYZ Marketing Sdn Bhd under its business called “AutoSpa” is a dynamic newly set up company offering ultimate in car detailing which includes wash and vacuum, polish and wax as well as interior grooming especially for luxury cars. To further enhance the appearance of the cars, AutoSpa also provides services such as dent removals, spray painting and knocking, headlamp restoration, windshield crack repair and interior restoration. In addition, AutoSpa provides car carrier services for its members and a comfortable waiting lounge with high end audio visual system and free snacks. The ultimate goal for the company is to become a franchisor in car wash and detailing business in the next 3 years.
The first outlet of AutoSpa is located in Golden Triangle of Kuala Lumpur that is in Jalan Bukit Bintang which is the most prominent landmarks for business centres, shopping malls, high end residential, entertainment centres, upscale cafes and hawker-type eateries. Strategic location is the most important factor in considering the outlet location to ensure the services offered are needed and affordable for the community within the area. The area consists of communities that live and work in the city centre with busy lifestyle and they do not have the time to look after their cars.
AutoSpa has a strong management team. Mr Mazlan, the founder of AutoSpa who is the President and Chief Executive Officer, has extensive leadership, management and organizational experience. He has served more than 20 years in car industry which includes manufacturing and distribution functions. The set-up of the organization is divided into 2 areas i.e. Operations and Quality section led by Mr Anthony who has vast experience in car care business during its 10 years tenure in Auto Refinish Training Centre under SMITS Group New Zealand while Sales and Marketing Section is led by Mr Mohd Radzuan who has vast experience and strong networking in car industry. He has served various premium car distributors in terms of sales and business development for the past 15 years.
In the effort to ensure AutoSpa to achieve the desired business positioning and objectives, the business target has been set as follows: * Target monthly sales of RM300,000 per outlet with expected 2012 annual PBT of RM2.0 million in its first year operations.

* Aggressive above-the-line and below-the line introductory advertisement with annual budget of RM500,000.

* To coach all employees to ensure high level of competencies at all times and to establish business succession plan.

* To expand the distribution channel to an additional 3 outlets and become a franchisor within the next 3 years.

* To establish daily business hours from 7 am to 10 pm for 7 days a week excluding certain public holidays or festivities. * To achieve high level of customer satisfaction.
MISSION
AutoSpa is dedicated to provide its customers the ultimate car care experience and focusing all of its energy and resources on customer satisfaction and value.
VISION
To become Malaysia leading brand in car care experience and services with well motivated and dedicated team in 2017.
SITUATION ANALYSIS
AutoSpa is well complied with the relevant laws such as tax policy, labour law, environmental law and trade restrictions. Bukit Bintang is currently ruled by Democratic Action Party (DAP) with the vision to establish peaceful and prosperous social democracy that can unite its disparate races and diverse religions and cultures based on a Malaysia Malaysian concept of forging a Malaysian race grounded on universal moral values, offering equal access and opportunity, upholding democratic governance and the rule of law, creating wealth and distributing it equitably and fighting corruption.
In term of economic, the community in Bukit Bintang area particularly the business and professional communities has high level of disposable income and able to spend for car care services at a premium value.
Residents and business community in Bukit Bintang are in high standards of living and highly educated communities. They are well aware of the advantage in keeping up their cars particularly their luxury cars. As such, AutoSpa business has strong potential and very viable for such investment.
AutoSpa has established a 6-bay automatic, 3-bay self-serve car wash and 20 other bays for detailing and other services on the second floor to provide exceptional car care services to the members of the Bukit Bintang community. Quality services that will exceed expectations will establish AutoSpa as the premiere car detailing and wash service in Bukit Bintang, Kuala Lumpur.
Most of the car care products used in AutoSpa is Meguiar’s and Zymol’s products from America. Both of the brands have been in the market for luxury boat and car care product for more than a decade and provide equally high quality products. For an example, the brands has introduced Hand Crafted Creame Wax which and are made of unique formulation of nutritive oils and rare Brazillian Carnauba for an ultra-brilliant, durable sheen to remove old wax, tar and stains. In their effort to provide quality products to its million customers, they have innovated into most technological advanced wax using Nano technology. The formula is better at filling fine scratches and concealing swirl marks than traditional waxes.
It is the best performing high gloss wax formula in the market today as it is easier way to protect car paint quality with a long lasting wax and high gloss shine.
In AutoSpa, we keep the detailing bay free from polishing dust; the polishing bay is separated from detailing bay by the use of vacuum doors and all workers are well equipped with proper face mask. All hoses such as compressed air and water hoses used in the operations are accessible from overhead to prevent the grime and dirt from the floor. The outlet is environmental friendly and protecting human from any pollution in or outside the outlet.
SWOT ANALYSIS & KEY ISSUES
The company’s strength factors are the competent personnel and management, quality products and services offered and its strategic location at town centre where most of the target customers segments are located.
The weakness is quite minimal that is the delivery channel of which currently AutoSpa has only one outlet however it will be addressed through the expansion plan which includes franchising the business.
AutoSpa has abundance of opportunity to success in its business as currently only one company running almost similar business in a smaller scale and its location is in Rawang, Selangor. It has limitation in terms of manpower as well as limited market reach.
Potential threat are the establishment of such car care services by car distributors as 60% of the business source came from such segment in preparing for their new car delivery. In this issue, AutoSpa will ensure effectiveness in the awareness program as to increase the percentage in individual customers.
ASSUMPTIONS
SALES PROJECTION
Below is the forecasted monthly sales which reflected total sales of RM2.90 million and RM6.60 million for the first half of 2012 and full year of 2013 respectively. Year | 2012 (RM'000) | Month | June | July | Aug | Sept | Oct | Nov | Dec | Total | Sales | 300 | 500 | 500 | 500 | 350 | 350 | 400 | 2,900 | | | | | | | | | | Year | 2013 (RM'000) | Month | Jan | Feb | March | Apr | May | June | Jul | Aug | Sales | 500 | 600 | 600 | 500 | 500 | 600 | 500 | 600 | | | | | | | | | | Year | 2013 (RM'000) | | | | Month | Sept | Oct | Nov | Dec | Total | | | | Sales | 600 | 500 | 500 | 600 | 6,600 | | | |

CAPITAL EXPENDITURE (SET-UP OF AUTOSPA)

No. | Items | Estimated costs (RM) | 1 | Main Builders Work & Equipment installation | 300,000 | 2 | Direct purchase items: | | | * Hoses, cablings & bays | 500,000 | | * Signages | 30,000 | | Subtotal of No. (2) | 530,000 | 3 | Contingency sum for unforeseen items (10% of 1+2) | 83,000 | 4 | IT equipments | 150,000 | 5 | Office equipments Office chairs, tables & cabinets | 100,000 | 6 | Audio visuals equipments, lounge chairs & tables | 150,000 | | Grand Total | 1,313,000 |

MONTHLY OVERHEAD
Personnel Expenses

3 Managers RM40,000
4 Supervisors RM25,000
25 Workers RM40,000

Total RM105,000

Establishment Cost

Rental RM8,000
Car Care materials RM20,000
Administration, utilities, General & Others RM15,000
Marketing expenses RM25,000

Total RM68,000

TOTAL MONTHLY OVERHEAD RM173,000

PROJECTED OPERATING PROFIT AT FYE 2013 Items | Details | RM’000 | Sales Projection | June 2012 until Dec 2013 | 9,500 | Capital Expenditure | Set-up cost | 1,313 | Projected Overhead (18 months) | Overhead cost of RM173,000 per month | 3,114 | Reserved – general provision | 2% from total sales | 190 | Operating Profit | Income – Overhead – GP | 4,883 |

BUSINESS COMPOSITION

As to avoid over dependencies to one business source i.e. car distributors which contribute more than 60% from the total sales, AutoSpa is planning to increase the business volume ultimately at 80% from individual customers segment through aggressive awareness program such as advertisement and marketing and promotional event.

GOALS AND OBJECTIVES * To achieve bottom line of RM4.80 million from its business operations from June 2012 until Dec 2013 with total sales of RM9.50 million throughout the years.

* Marketing and promotional activities for awareness program with total budget of RM450,000 throughout 2012 and 2013.

* Structured training program on products and services to all personnel to ensure high level of competencies and work commitment for all functions from all personnel at all times.

* To open additional 3 outlets and exploring franchising business in the next 3 years.

* Establishment of daily business hours from 7 am to 10 pm for 7 days a week excluding certain public holidays or festivities.

* To achieve high level of customer satisfaction and to become a leading brand in car care experience and services.
OVERVIEW OF MARKETING STRATEGY