Luxury Wash is entering their first year of operation

QUESTION

Executive summarySituation analysisMarket summary¢ Luxury Wash is entering their first year of operation. We believe thata ( estrategia de marketing que vamos a utilizar) marketing strategywill be key to the success of the business.¢ Luxury Wash offers a premium hand car washing service. The basicmarket need is a premium car washing service that is far less abrasivethan the traditional automatic car washes.Target Markets¢ Before choosing a location for our carwash business, we conductedour feasibility studies and market survey and we were able to identifythose who will benefit greatly from our service offerings.¢ Basically those who will benefit from our service offering are carowners .Target Markets¢ Corporate Executives¢ Business People¢ Car Dealership Shops¢ Government¢ Household¢ Taxi and car rental company¢ Transport Companies¢ Haulage CompaniesMarket Demographic¢ Geographic:¢ The total target population is:¢ The immediate geographic target is the city of Doral, FL.¢ The total targeted population is just over 45,704.Demographic:¢ Male: 63% Female: 37%.¢ The reason for this discrepancy in the male to female ratio is generallyexplained by the fact that men typically care more about their automobiles.¢ Men are more likely to spend money on their cars with accessories and aremore likely to buy a car as a reward for some accomplishment as a treat forthemselves. Women tend to view cars more so as an object of utility. Using thisline of reasoning, women are more likely to use the automatic car wash as theyare 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 agraduate degree.Behavior Factors¢ 43% of the target customers lease their cars.¢ Individual and family image is personified by the type and conditionof the automobile that they have.Market needs¢ Exemplary customer service: The target customers have money andare used to having excellent customer service. They will not regularlyuse SR unless they receive excellent service.¢ High quality washes: The target market values a higher quality washfor their upper-end cars.¢ Convenience: The hours of operation, as well as the time needed toprovide the service, must be convenient and fast respectively, to gainmarket share.Market trends¢ The market trends for the car washing industry have seen gravitationfrom hand washing to automatic washing machine facilities.¢ This trend has been fueled by the progression of technology.¢ While one might presume that this would lead to the demise handwashing, the abrasiveness of the machines will never be appropriatefor expensive automobiles.¢ This trend will not have a significant impact on hand washing facilitiesthat have a sufficiently large customer base that posse’s expensive cars.Market growth¢ During the five years to 2015, steadily improving per capita disposableincome has enabled consumers to spend more on discretionary services,such as car washes.¢ In the five years to 2020, industry operators will continue to benefit fromrising per capita disposable income, aiding industry revenue.¢ Local regulations prohibiting residential car washing are expected to becomemore common, generating a larger client base for industry operators.¢ The number of vehicles in use in the United States is projected to risesteadily over the next five years, further expanding the industry’s customerbase.SOWT Analysis¢ Strengths:¢ Good relationships with many perspective customers in the target market.¢ Strong name recognition and equity in the community.¢ Well trained employees.¢ Weaknesses:¢ The need for reliance on outside investors.¢ The learning curve associated with entering an industry without direct prior experience.¢ The need to have a fairly constant volume of business to support the necessary servicestaff.SOWT Analysis¢ Opportunities:¢ Participation within a steadily growing industry.¢ A high likelihood of repeat business.¢ The ability to decrease the fixed costs as a percentage of an individual sale as volumeincreases.¢ Threats:¢ Future/ potential competition from a franchised firm.¢ A slump in the economy, reducing discretionary spending.¢ The perception that there is not a difference in quality between a hand and machinewash.Competition.¢ It is not targeting the customers who seek quality cleaning.¢ The customers who Luxury Wash is targeting have their cars washedbased on the quality of the job. They do not mind spending a littlemore each week to have their car washed and waxed in order to keepthe paint work in excellent shape. The businesses that Luxury Washtargets will be more cost conscious, so prices will be approximately30% less for these customers to promote volume usage.ServicesLuxury Wash will provide the following services:¢ Car washing (exterior).¢ Car cleaning (interior).¢ Car detailing.Keys to succes¢ Luxury keys to success are:¢ High quality services.¢ Benchmarked customer service.¢ Convenience.Marketing strategy¢ Mission¢ Marketing objetives¢ Financial objetives¢ Target markets¢ Positioning¢ Strategies¢ Marketing program¢ Marketing researchFinancials¢ Break even analysis¢ Sales forecast¢ Expense forecastcontrols¢ Implementation¢ Marketing organization¢ Contigency planning¢ Difficulties and risks¢ Worst- case risk

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