Introductions
The new business idea is waterless car wash. This is a particularly new and unique idea. The main aspect in this business plan is no water will be used in washing car. This is a very economic and eco-friendly plan. This will help in enviornmrntal changes as it is important to reduce carbon footprints. Car washing industry is very wide and large but this business plan is different than simple car washing business. In today’s era of technological advancement and globalization, water scarcity is a big issue. To solve this problem my business plan of waterless car wash will be revolutionary. This is a unique technique where Waterless car wash products will be used to clean vehicles and produce a beautiful shine without using gallons of water, hours of elbow grease and masses of different car shampoos and car polish products.
- Industry and market trends: Today market is moving towards development and innovation. This product will be beneficial in reducing green house effect and will be very economical for the pockets of customers also.In normal car wash it will cost an average £3.90 whereas in waterless car wash it will be £3.83 to the customers. Normal car wash takes about 25 to 30 minutes in the whole process. On the other hand, waterless car wash will be able to clean the car in less than 15 minutes. There are millions of car in the whole UK and daily or may be occasionally they will need to wash their car. With different government policies, rules and regulation regarding usage of water can be great for our business. As we are not using water so these rules and regulations will not be applicable on my business.
- Market segments and reasons for target market: In this business our target customers will be people above 18+ because below 18 driving is illegal. So to make client base we will attract people who are eligible to drive. Those who drive the car will need washing their cars at some point. This is our target customers. We will not do any paid advertisement to promote my business idea. There is a large number of people in the UK who are driving vehicles and there has been a huge production of cars globally and all cars require a wash every once in a while. Car washing companies charges around £12 whereas our company will charge only £9. This business plan is pocket and environment friendly. Due to shortage and scarcity of resources, people are also getting more and more aware of sustainability and wastage of resources. This business plan will help in reducing wastage of water and causing no-harm to the environment. Creating this idea now would put us ahead of the market as we have found a niche product and business which is sustainable.
- Buyer behaviour across segments: We will use social media to attract customers. We all know social media is the biggest platform to be in contact with people in an effective manner. We have to attract the customers by giving them what they want. This new idea will go viral by using already existing social media platform such as Facebook, Instagram, etc. Here, people are very active. We will use tactic e.g. when the customers will come for the car washing, they will be impressed with our cleaning technique and we can ask them to take a picture and upload on their social media account as well as on our account. This will work as an advertisement for us as more customers will want their car clean and hype this new trend. To make this idea work we have to be active all the time on social media to attract customers. Advertising for the business would be free, thus saving on costs.
- Competitor analysis: As this is a new business idea, there is less or no competition in the market. This business idea can be incorporated anywhere, anytime and at any place. There are many different car wash services around the city.
Strength:
- Locality: many customers have their go-to-car-wash centres and somehow they are satisfied with the services they are receiving. This is the biggest strength as their customers are loyal to them.
- They can always find substitutes and change their business also while adopting waterless car wash.
Weakness:
- In today’s new generation, it is all about trying new things and experimenting which is drawback for existing businesses as people want to try this new waterless car washing ideas.
- Regular car washing is a bit expensive as compared to waterless car washing. In normal car wash charges are more than £13 and for waterless car washcharges are around £8-£12 for a clean.
- Environmentalists and people who are worried about sustainability may change their preference and will like to avoid excess wastage of water in washing cars.
- For an existing business: We are new to this business, so our client base is not strong but businesses always start from home. We are providing services to our friends and family member at a rate of £13. This is new so I am providing services once a week and till now we had only done 3 car washes. I am also seeing social media platform to advertise about my business idea. I uploaded pictures of clean cars with owner’s reviews.
- Value propositions:This business plan is very economical and environmental friendly. Fewer resources are required for our services. For waterless car wash we will purchase 25L drum of waterless carwash base and range of microfiber cloths from the market. They are easily accessible and available in the market. We can contact with manufactures or wholesalers to purchase them in bulk quantity. This will also reduce the price. The product will be concentrated and mixed with a small ratio of water, and be sprayed onto a vehicle, wiped off, and finished with a shine. Not only will this product save water, but also time. This whole process will take less than 15 minutes. This will save both time and resources, resulting in turning around of more cars compared to water washing. This is the economic way of washing cars. We will be providing services at low prices and at lesser time as compared to our competitors. We are providing sustainability in our business which is very much needed to save the environment. We have to focus on customer and fulfil their demand so as to gain their trust.
- Target segments:In this business the target segment is people with driving license and people above age 18. This plan will be very beneficial for town and major cities where water access is restricted as usage of hosepipe is restricted in UK. This business plan is environmental friendly as there is less usage of water, thus reducing the carbon foot print. This business is a beginning to save water in business practices. This plan is flexible and cost-effective. This business idea is very profitable but to sustain the market I will keep the prices economical.
- We can promote our business with eco-friendly supporters or even a political party will lead to awareness and exposure. We can make a page on social media or contact these people to come and visit our shop to check the scenario. We are going to do our advertisement through social media. Many people are social media crazy and put everything on their profile. We will take advantage of that. We will post pictures of customers’ cleaned car on Instagram or Facebook. People want exposure on their vehicles and would want their pictures to be posted on Instagram page. This will attract more customers and followers on Instagram. This will also increase our followers on social media platform.
- Unique selling propositions: We will be using different kinds of techniques to attract customers. We will create 10 second videos summarizing the whole process of what we do. This will show them that we are environmental friendly, as no water is used, and our service is better than the one they are currently getting. We will provide premium services and ensure the clients regarding safety of their vehicles. We will approach small businesses and put forward our proposal. We could create an informative booklet which we could hand out to companies with a small fleet of vehicles which gives them everything they need to know and our costs. We will ask the customers to check the compounds and provide demo of the products and its safety. To attract customers we will provide different discounts so that customers will be loyal towards us. For example, we will ask them to take a subscription of yearly car wash and pay less. We will also put pictures of clients with their cars on our social media platform after taking their permission. We will also advertise as the first waterless wash business in Manchester UK. We are charging very economical prices as compared to water car wash. Our prices are £10 for a small car, £15 for a larger car or minivan and £25 for van.
- Sales target: Currently I am providing services once a week as I am a full-time student. Till now, I had provided 3 car wash services to my family and friends. I analysed that after 10 car washes, we will have good client base and this will help in attracting more people. I have two associates willing to help on pre-booked days. They are paid a day rate of £45 and £3 extra for every car they complete. As they are part time employees, it helps save on costs as the business isn’t in full operation. Having pre-booked cars also tends to save costs as I can see any profits and sales before the day. We are increasing our business slowly and increasing our followers on social media platform so as to attract customers.
- Price, promotions, distribution: prices of our services are very economical. We are charging £10 for a small car, £15 for a larger car or minivan and £25 for a van. In our business we have total fixed cost around £14000 including wages, transport, repair and rent. We are using different kinds of promotional services for our business. From 2013 to 2016, there was an increase in car washing services by a huge 2.7 million pounds.We will contact different environmentalists and political parties regarding benefits provided through our business idea. We will promote our business by promoting ideas of being environment friendly and sustainable in our business. This will attract customers through telling them about benefits of waterless car wash. We will put banner on our site so people can see what we are providing. We will also print our social media information on that banner.
- Launch strategy:Prior to launching our ideas we will contact different small businesses to put pamphlets on their shops so that people can know what we are offering. We will print the pamphlets in an attractive way emphasising on environment safety factor and social media influence factor. We will set a launch day and will create a schedule so as to attract more and more customers. We will also post on Instagram on a daily basis in order to involve people and to create curiosity. On the launch day we will provide free services to everyone. We will also provide brochures so that people can know about all the prices and discounts available in our waterless car wash services.
- Sales tactics: We will get in contact with local supermarkets and ask them to let us use their parking lot to demonstrate our ideas and its features. We will offer them to provide demo on their car as free services. We will offer discounts such as providing 3 car wash services and charging only for two services. We will create a close relationship with our customers so that they become loyal to us. We will provide efficient services so they will come back to us. We will also use our social media platform to sale our services. We will post pictures of cars with owners and their comments. We will also ask the customers to publicize our services among their family and friends.
- Brand development:To develop as a brand we will make a LOGO for our business plan and copyright it. Profit earning is not our sole motive. We want to create a brand image and make this idea successful worldwide. Connecting it with being environment friendly will make it popular among many people. We will provide exclusive and best services, so our customers can trust us. We will reduce our customer’s pain by providing them budget friendly services. People who are social media crazed will be more attracted. Our target customer is person who has car and driving license. Basically, people above 18+ will be our target audience.
- Competitive reaction:This is a completely new idea as compared to regular car wash. Our competitors may do various tactics to compete against us. They can use discount policies to attract customers. They will try to copy our idea and do the same as they already have a certain client base. Our competitors are traditional car washers which are not very economical and user friendly. Almost every carwash has the same amount of customers. The service we offer is completely different. As such, instead of more competition, we have a better quality, faster and cheaper business idea.
- Product and market development:I will stay active on Instagram mainly as it has a following for car enthusiasts and I can also follow local businesses and use the Instagram paid promotions to target users who have similar followings which would allow me to gain the attention of customers. I can provide my services to the customers directly at their doorstep. They do not have to come to our shop if they are not capable.
- Growth potential:According to the statistical data there are around 1400000 cars in the city. People are becoming more aware regarding environment and water scarcity. My target is to penetrate market to serve around 16-20 cars per day. This is a low number of cars but doing it correctly would be way more profitable than other car washing businesses. This business has huge potential and in coming future this will be applicable on car washing.
References:
Dwyer, D. (2015). "Soft cloth versus touch-free carwash equipment." Professional Carwashing & Detailing
Egan, M. (2015). "Startup lose money despite being worth billions."
Ghodeswar, B. (2014). Building brand identity in competitive markets.
Johansen, M. (2019). "Will a Car Wash Hurt Your Car's Finish?"
Mansvelt, J. (2016). Green Consumerism: An A-to-Z Guide.
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