Acquaintance with the Clean Wheels Company - Term Paper Example

?Clean Wheels Executive Summary Clean Wheels is a of the art delivery car washing service. As the economy continues to digress into recessive trends, individuals are becoming more and more consumed with activities in order to accumulate wealth. This has decreased the amount of leisure time that each individual is alloted. Our company exist to make having a clean car more accessible and convenient. Our primary goals to that need to be realized are the acquisition of necessary equipment in order to meet consumer demand utilizing less time, as well we intending on leveraging our customizable service as an added bonus that raises the bar for consumer expectation. We exhibit a more consumer friendly corporate persona, which makes us more attractive for an economy conducive to socially responsible business ethics. Hence we offer “green” products and services that are environmentally safe. This helps our company define further separate ourselves as an identity unique from our competition. The current market for our products can be easily converted to our firm because we offer competitive products that offer unique advantages for our customers, their customers, and the environment. We predict that we will be able to reach a global consumer base of satisfied and loyal customers that could permanently establish our company as a major shareholder in the industry. Business Description Clean Wheels has the potential to be one of the leading car wash companies in the area. The market is becoming increasingly stagnant as the market for stand alone brick and motor car washes dominate the industry. Our business structure utilizes a nationalized networking system where we are able to independently contract workers in different parts of the U.S. to wash peoples cars on demand at their specific locations. These washes can occur while they are at work or at home. This makes access to convenient car washes more accessible. The most interesting aspect of this company is that it is able to outsource the major cost of equipment to the individual contractors who will fulfill the service. While the company merely maintains a website and call center to process the orders for washes, the network that the site leverages helps decrease the overhead cost. The internet is growing as a medium for individuals to shop through which poses a significant business opportunity to our company. By capitalizing on generating leads, we are capable of creating a new layer in the existing market which allows us to profit from the logistical centralization of the sales framework. Moreover, we are going to mandate that our drivers use specific soaps and cloths in order to represent the overall branding strategy of going green. Consumers are increasingly loyal to companies that make attempts to respect the environment amid fears of reaching a point of no return. Industry and Market Analysis Market Summary: The national market for car wash companies is becoming increasingly competitive as the industry becomes consolidated in major markets and segmented where there are lower population numbers. Moreover, the internet is becoming a major destination for shoppers. Especially for affluent individuals who are likely to be the heavy users of the service that we provide. While our end user is the consumer who gets their car detailed, our direct customers are the contractors who are going to wash the cars. This makes our company increasingly dynamic in terms of our ability to create competition within different regions by allowing individuals to bid for our contracts. Market Demographics The profile for Soapy Rides' target customer consists of the following geographic,  demographic, and behavior factors: Demographics Male:  female- 63%: 37%.  The reason for this discrepancy in the male to female  ratio is due to the fact that men on average care more about  their automobiles.  The data indicates that men are more likely to dedicate a portion of the budget to their cars with  accessories. Additionally they are more likely to buy a car as a reward for some  accomplishment as a treat for themselves.  Women tend to view cars more so  as an object of utility.  Using this line of reasoning, women are more  likely to use the automatic car wash as they are less concerned about  preserving their "precious" car. 40% of the households have an income  exceeding $70,000. 73% of the target population have an undergraduate  degree, 39% have a graduate degree. Psychographics 43% of the target  customers lease their cars. Individual and family image is personified by the type and condition of the automobile that they have. Market Needs Clean Wheels seeks to fulfill the following benefits that are important to the customers: Exemplary customer service- The target customers have money and are used to having excellent customer service.  They will not regularly use Clean Wheels unless they receive excellent service. This means that the independent contractors will have to agree to the terms and conditions of cooperating with the brand. This includes things such as excellent services as well as open lines of communication. Increasing commission rates for return customers is a means of facilitating this program. High quality washes- The target market value a higher quality wash for their upper-end cars. These customers expect quality materials as well as a detailed service. Competition within markets is key to ensuring that these needs are met. Convenience- The hours of operation as well as the time needed to provide the service must be convenient and fast respectively, to gain market share. Market Trends The market trends for the car washing industry has been a evolution from hand washing to automatic washing machine facilities.  This trend has been fueled by the progression of technological resources that makes mechanical washes safer for vehicle paint and better in quality.  The automatic washing machines have become less expensive and more efficient over the last few years to the point that it is typically cost effective to invest in these machines. While one might presume that this would lead to a deficit in the demand for delivery washing, the risk of the potential that machines will damage the car paint presents an opportunity for those who own expensive automobiles.  This means that the most effective strategy for the company is to target affluent individuals who work jobs that require them to manage their time wisely. In terms of the company branding, this means that our organization will benefit from crafting the service as a means of saving time and money. Market Growth The car washing market has experience 4% growth for the last since 2004. Additionally, 4% growth is forecasted for the next four years. This trend correlates with the amount of new car sales within the country. SWOT Analysis The following SWOT analysis captures the key strength and weaknesses within the company, and describes the opportunities and threats facing Clean Wheels. Strengths Brand loyalty from customers who have received work from the company. Strong brand name recognition and equity in the community that are served. Well trained employees. Weaknesses The need for consumers to schedule their appointments online The ability to convince contractors that they can make more money with the company then on their own. The need to have a fairly constant volume of business to support the necessary service staff. Opportunities The market growth is steady and we can capture a share of new customers. A high likelihood of renewals and referrals from existing customers. The ability to consolidate the industry through the provision of leads from the online database. Threats A slump in the economy, reducing discretionary spending. The perception that there is not a difference in quality between a hand and machine wash. Competitive Analysis Fortunately there is no other site that consolidates the delivery car wash business. In fact, most on site car wash services are going under which can present an opportunity for the company to capitalize on their dying services. The direct competition will come from brick and motor locations. As affluent individuals become increasingly busy and have less opportunities, our service will seem like an asset. Additionally, we can gain a comparative advantage over the competition by marketing the fact that we use green products that are safe for the environment. Marketing Strategy In order to become visible to a greater portion of the consumer base our company is able to utilize the internet to access experienced sales professionals willing to use the material we provide to earn commission reselling our services. This unique structure means that we are able to independently contract that job ourselves to private entities with a proven experience and background in successful service. By using online employment services we will attract very valuable assets from an existing car wash base. In a world that relies increasingly on internet solutions for identifying solutions to their purchasing interest, we expect to use our online presence to increase our attractiveness to new clients. We have developed a marketing strategy to account for the local demographics as we as the consumer trends. Using low cost tactics we intend on concentrating our focus in highly visible areas during seasons where consumers are most conscience of our service. We specifically independently contract out commissioned based sales positions to create a self sustainable workforce. The commissioned based component of our sales structure allows our organization to outsource the potential cost of time invested preparing sales pitches as well, individual workers have unique incentives to draw in customers for our company. This sales structures allows our organization to always have free capital that is not exposed to budget limitations. The disposable income should be partially dedicated to creating an incentive for sales agent to close even more sales. In order to access this structure we intend on creating an online program that allows potential sales agents to apply for registration in our training course for sales agents. After the online training, sales agents are able to fill out and submit an online w9 for U.S. based employees as well they are prompted to agree to accept the terms and conditions which indicate that the user agrees to be an independent contractor. Sales agents agreeing to be an independent contractor is necessary to avoid responsibility for a wage based interpretation of the workers contribution to our organizations. The independent contractors rewards employees for results and in fact encourages results as a means of unlocking controllable capital. Marketing Mix The most significant factor in acquiring new clients is our ability to help the costumer understand the advantage of purchasing services from Clean Wheels. While accessing new clients is an important aspect of our business plan, we want to place an emphasis on retaining existing customers for repeat business. Given the possibility that we are able to capture repeat business with clients we service, each new client helps create a compounded income structure where each new clients shares a constant bilateral relationship with our company. A compounded revenue module is preferable to a linear module because our organization will be able to survive through changes in consumer spending such as scenario’s where no new consumers are introduced. We are well equipped to handle these shifts with a compounded structure because we are able to rely on revenue from established costumers to cover operational cost. Our marketing mix will consistently work to optimize the volume and quality of new clients. Operational Issues This business structure is pretty sound. The major operational issues is the dissemination of information and organization of the sales staff. The best means of managing these operations is by using a call system where sales agents schedule washes after they are booked either online or by phone. This means that the agent will call one of the contractors and confirm the appointment. Human Resource Requirements The human resource requirements are massive for the organization. Fortunately we are able to outsource a dominant majority of the cost for maintaining the human resources by contracting the workers for each market. The optimal amount for each market will be determined by the strength of the clientele. Moreover, because the company will be driven by marketing a specific website, the cost of generating leads is substantially less. The company only requires individuals to manage the phone lines as well as compute and assign orders to drivers. This can be completed with a corporate office containing no more than 10 employees. There will be 3 employees responsible for maintaining the phone-line and the rest are dedicated to maintaining the site and assigning orders to drivers. Financial Projections The expense forecast will be used as a tool to keep the department on target and provide indicators if corrections need to be made.  Additionally, it will require the department to undertake long-term analysis. Read More