Course Code and Number
Motors Oil and Tire Change Store is a new and developing oil and tire change store in the Simsbury Town in Hartford County of U.S. The store is an individual corporation. It is managed by its owner John Duke. John Duke is a graduate in automotive engineering. In addition, he has experiencing working at the management level of Roy Motors International, which gives him the competent leadership and experience needed in this business. His skills and knowledge are an indicator that the business will be a great success. His knowledge is as well vital in maintaining and improving sales and marketing efforts of the company.
The U.S. oil and tire change market is developing quickly. In fact, this market has expanded by 165% within the last fifteen years. The number of companies offering these services has also increased by about 15% to 1,500 stores. On overall, the expansion in the securing and utilization of engine vehicles is the principle explanation behind this development. Since the business has a significant market share in offering engine related services, the expansion in this subsector has presented the company with a lot of sales. In the town of Simsbury, our potential customer base is partitioned between nearby occupants and different explorers that utilize the highway along where the store’s located. We hope to effectively create service contract with existing clients, which will ensure that the company has a constant supply of work throughout the year.
Advertising will focus on the much bigger nearby customers who are not yet acquainted with premium administrations offered and we will improve our environment, our renowned esteem, and our wide cluster of potential endowments. Deals to new clients rely on an exceptionally unmistakable area, relationship with the curious appeal of our town, and limited time endeavors in collaboration with other neighborhood organizations. The owner has placed a big investment on the business and the goal of the store is to generate income based on cheap but very effective business strategies.
Motors Oil and Tire Change Store is a store that offers a full selection of new tires as well as tire exchange services. With Certified tire experts, the store works to ensure that all vehicles receive what is perfect and what is pleasing to the customers. Oil changing service are as well one of the major concentrations and the store works to ensure that all preventative maintenance services of tire and oil change are running very efficient. General oil changes guarantee that the vehicle is performing admirably by amplifying the life of your motor. The store’s standard oil change is exhaustive, advantageous, and incorporates a civility 27-point vehicle assessment and a free tire pivot. Since its launch in the year 2013, the company has been providing these services and the plan is to improve service delivery as well as marketing strategies that bring in more repeat and new clients.
The internal sales data that has been collected in the previous three years indicate that the two main types of customers that constitute our market are the repeat and new customers. New customers are mainly the motorists that frequently use the highway where the business is located. The number of customers has been growing over the years, which indicates the ability of the business to attract and retain customers. Local customers have been increasing by 5% and the new customers have been increasing by 3%. Similarly, the business has also been expanding, and it has a growth rate of 4%. In terms of the market segmentation, the local and repeat customers constitute 75% while new entrants have a share of 25%.
On overall, the market size has been increasing tremendously due to the developments in the town of Simsbury. As a result, the number of the stores that offer similar services has been increasing with an aim of having a share of this robust and vibrant market. Although there are some well-established competitors in the market, the business still has a potential of been the leading player in this industry. Since there are many untapped opportunities in this industry, the company will implement clear and well-thought strategies in its operations.
The Marketing Plan
The marketing plan will entail advertising and promotion. The advertisements will involve the use of brochures that will clearly broadcast information on the services of the store. These brochures will be distributed to the local people, the new customers, as well as different motorists on different stopovers along the highway. The company will also use television advertisements that will be broadcasted in different channels so as to create awareness about the company’s services in areas beyond the business locality. The promotion will mainly involve giving offers on the provision of services as well as issuing shopping vouchers to customers that have their services done in the company’s repair shop. In effect, the promotion will create interest among customers about the services offered by the business. The use of vouchers will be indicated that the company has interests in the customer’s welfare.
In order to reach customers whose main source of public information are newspapers and magazines, the company will also use print media for advertisements. The company will use popular newspapers and magazines, which will enable it to reach these customers. Moreover, since magazines have a long period of relevance with readers, advertisements through this medium will ensure that they have a strong and long-lasting impact. Since repeat clients only visit the company due to high-quality services, the business will continuously train its employees so that they may improve their skills (Sutcliff 205). Noteworthy, the most important function of the marketing strategy will be maintaining customer satisfaction by offering high-quality services.
The store is located on the highway leading to Simsbury Airport from town. This positioning is strategic since there is a lot of traffic, which supplies the company with a regular flow of customers. As a result, the business has a competitive advantage due to the ease of access to its premises by various customers.
Managing Director: John Duke
Assistant Managing Director: Mike Kaplan
Sales Manager: John Kyle
Assistant Sales Manager: Brian Bull
Head Supervisor: Grace Ann
There are two main types of risks in this business plan-market risk and financial risk. The market risk is associated with the possibility that customers may fail to purchase the company’s products and services. In addition, there can be a lack or slow in the development of the expected market change, which would result in a loss of invested funds (Miller and Jones 1). Financial risk is characterized by mismanagement of funds, which results in cash flow problems for the business. This plan will run on a system that enhances maximum utility with the aim of reducing the impact of the rising risk on the competitiveness of the firm.
We anticipate that the sales will start conservatively and increase as the firm grows. The store expects revenues of about $16,000 every month in the first year, as it slowly gains traction in the market. In the second and third year, we hope to have more sales, with an annual increase of about 10% every year. In terms of cost, the business expects to have a monthly rental expense of 3,000, salaries and wages of 5000, and spares and inventories cost of 5,000. The cost of spares and inventories is expected to increase by 10% per annum due to increase in sales. The monthly rent and salaries will not change during this period. There will also be miscellaneous expenses of $1,000 per month which will comprise of licenses, water, and electricity bills. These expenses will not change in the three-year period.
|Salaries and Wages (5,000*12)||60,000|
|Miscellaneous cost (1,000*12)||12,000|
|Salaries and Wages (5,000*12)||60,000|
|Miscellaneous cost (1,000*12)||12,000|
To sum up, Motors Oil and Tire Change Store aims at becoming one of the most preferred stores in the country. To achieve this goal, the company will have quality output, which will be its pillar of success. In order to expand establish branches throughout the country, the company will have to increase the capacity of existing stores by ensuring that they have a regular flow of revenues and incomes. Generally, the capital generated from local stores will be used to establish new branches. Finally, the company will establish itself as a provider of high-quality services for motor vehicles. This positive image will facilitate its objective of expanding to new markets.
Miller, Jerome, and Radford Jones. “Managing Risks in Business.” Managing Risks in Business, 2013, p. 1.
Sutcliffe, J. “Book Reviews: Directing the Marketing Effort Ray L. Willsmer Pan Management Series, 1975 1.50 414 pages.” Management Learning, vol. 6, no. 3, 1975, pp. 205-206.