Premier Hand Car Wash Analysis

2682 words (11 pages) Essay

1st Jan 1970 Marketing Reference this

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By researching and studying all these factors it can be shown to specific groups or individuals that acquire of facts that relate to the organisation or are willing to gain knowledge from for future success or studies.

Background

Premier Hand Car Wash is located on Level 1 entrance of Bathurst Street Liverpool Westfield’s shopping centre. The company employees for six (6) workers and the owner himself and has currently been running the business for over five (5) years. Premier Hand Car Wash has no true competitors that are trying to offer the same quality and service, most are try to compete on pricing alone. Premier Hand Car Wash main responsibility is to provide a high quality service, also besides washing provide immense customer service.

Mission

The mission of Premier Hand Car Wash is to provide top quality washing and detailing service for all vehicle owners in the western suburbs around Liverpool. The business will strive on keeping works satisfied in order to maintain a high level quality of cleaning at all times and leave customers blissful

Develop marketing strategies

SWOT analysis on Premier Hand Car Wash

Strengths

Location.

Variety of Services.

Customer demand.

Weakness

Pricing.

Capacity (limited to certain amount of cars due to it being a car park and not enough room.)

Rain.

Winter.

Opportunities

Learn from other service and adjust and accept change to the organisation.

Place a suggestion box for further ideas from customers on what they would like from services.

Look for sponsors to assist the company with sprays and other clean utensils.

Threats

Local Competitors.

Self clean carwashes.

Automatic carwash.

Market Segments

The strategy used by Premier Hand Car Wash is to attract as many repeated customers as possible because it is easy to retain them but hard to build new ones, especially during the winter seasons. The location that the car wash is set is perfect for all types of customers that are going shopping for several hours and want to leave their car with our company to be cleaned and also be waiting for your arrival.

Premier Hand Car Wash doesn’t just target one specific age group; they target customers by the type of vehicle that they own. Premier Hand Car Wash believes that the type of car you have tells you a great deal about the service you’re willing to purchase and to what standard/detail it requires.

The following will explain customer profiles:

New car owner: These customers are most likely to use a basic wash service; these customers bring their vehicle for a wash or detailing on a regular basis. The goal/aim with this customer is to keep their car looking as good as it did when it was purchased from the car lot.

Sport car owner: These are usually the younger or middle aged group of men that try and retain the new look of their cars. This group will require at least once to two times a week of a basic wash, also occasional will request a deluxe wash or wax and polish.

Older car owner: These people have owned a car for several years or are unable to clean it themselves. Either way they require their cars to look in the best possible shape they can.

Dealerships : There are a few dealerships located within 10km from Premier Hand Car Wash therefore every so often they use a basic car wash service to detail their products before they are sold or put on sale.

Trends in the Market

Trends affecting business and Competitors/ Potential Competitors:

Premier Hand Car Wash in the past one to two years has had an increase of 40% in competitors ranging from:

Automatic carwashes

Hand washes

However these two areas of cleaning have taken a large sum of the consumers due to better pricing or certain discounts/additives on washes. The closest competitor is located at Orange Grove, were it has facilities to many take-away stores also availability to Harvey Norman; the other two are located further out on Hoxton park road and offer free coffee on every visit that you purchase a wash.

Competitors Prices:

Competitors Name

Pricing

Automatic Car Wash/ Do it yourself

Automatic – Which offers a

Basic Wash (exterior only) priced at $33

Do it yourself – Price at $1 dollar every 1minute for every machine

Organ Grove Hand Car Wash

Basic Wash $20,

Deluxe Wash – $33,

Waxing & Polishing $100

Hoxton park Road Car Wash #1

Basic Wash $23,

Deluxe Wash – $31,

Waxing & Polishing $115

Hoxton park Road Car Wash #2

Basic Wash $25,

Deluxe Wash – $32,

Waxing & Polishing $98

Even tho these competitors have taken a quit large sum of the customers, Premier Carwash still holds its name for the most quality wash in the local area of small business. The car wash is thinking of reducing prices up to 15% so that their prices, saving the consumers $5-$15 per wash*(includes only for: deluxe wash/waxing and polish) this is so it pushes more customers into purchasing the more expensive product increase funds and at the same time recovering lost customer and eliminating potential threats due to low pricing.

Advantages/Disadvantages of choosing Premier Hand Car Wash over competitors:

Advantage of Premier Hand Car Wash

Disadvantage of Premier Hand Car Wash

Greater Knowledge due to longer experience

Higher quality rate

Reputation

Location that has a number of facilities to visit while waiting

Insured encase of damage to vehicle

Excellent customer service skills

Safe sprays and cleaning products

Highly priced

No discounted rates

No free coffee or tokens to offer

Insufficient room

More company promotion needed to advise individuals due to being underground in a parking lot.

Ethical and Cultural marketing objectives

Some appropriate marketing objectives are as follows:

Gain 500 new customers with the first year of setting standards

Clean at-least 30 cars minimum a day

Expand in the number of car parking spots reserved to the car wash by 10% within 2years time

Leave 95% of customers satisfied every day

Marketing strategies to achieve Objectives

The main strategy to achieve marketing objectives is the need for a professional detailer and has at-least a certificate 4 in car detailing and if one hasn’t been found training for an individual must be paid for to do so. Reason for this is high end sports cars or luxury cars come in and ask for a detailed wash no one on site apart from the owner can work on the car.

Marketing Mix

Financial effects

Sales

2006 

2007

2008

Full Wash

$26,080

$22,320

$44,616

Exterior Wash

$15,654

$23,650

$41,574

Interior Clean

$13,160

$9,009

$11,712

End User Detail

$18,060

$20,985

$43,425

Business

Fleet Washes

$9,150

$7,225

$13,838

Car

Dealership Details

$35,580

$33,150

$77,040

Total Sales

$117,684

$116,339

$232,204

The above diagram demonstrates the sales that Premier Hand Car Wash had over the years and indicates that the business had a good start with $117,684 which then down sided and earned $1,000 less than the year before it. Many things happen during this year which impacted the companies decline stage which was mentioned in the previous statements, the matters that affect it was low advertising, competitors grew by almost 40% threw automatic carwashes and other competitive hand carwashes. Once the company put strategies in place and decreased prices and maintain quality and increased advertising it had shown in 2008 their money doubled in that year.

Volume Chart

Volume Chart for One Month of Supplies

The above graph shows that most of the company’s profits come from interior and exterior services. Most of the extras and other service that have been purchased don’t get much profit but there for don’t have to be purchased for the next five to six months so in the long run sufficient amount of funding is produced from them.

Product life cycle

The above diagram demonstrates is the product life cycle. During the Launch of the product there were certain needs that organisation like car washes desired from the high end high pressured vacuum cleaners. Once the product had entered the introduction and growth phase it started to progress highly and reaching its highest points during maturity and saturation phase. Once there was an updated version of this the product it had become clear it was unfavourable and this is where possibly certain percentage of customers might have left to competition due to upgraded technology.

Alternative Distribution Channels

There is no need for alternative distribution channels because it is a direct service. But if there was a need for selling of car sprays and cleaning utensils the advantages of using an alternative distribution channel would be, it can provide intensive market sales and bigger profit margins than the original one, frat rates are cheaper, quicker delivery process.

Levels of Customer Service

By having certain customer promotional activities such as VIP card for regular customers, this is encourage them to stay with the company for longer periods, the card is only offered to regular customers which certain gifts are added (some gifts could involve: free coffee, movie tickets, free car wash every 3rd visit) or discounted prices from each visit, while normal pricing is offered to day to day customers.

Customer Service Standards

By setting the following into an everyday work activity it proven to improve quality let alone customer satisfaction, the following is an example of some standards that can be put in place:

A checklist can be created detailing and recording the cars appearance before and after Premier Hand Car Wash as completed their service

KPI measures for the minimum requirement of acceptable work. EG: Floor and seat cleaned spotless but stains that can’t be taken off are left as they are

Also a suggestion box is a good idea to be left for customer to evaluate team performance

Once these activities have been completed to a successful rate alongside many more. Customers will start paying more for the service you put forward allowing the organisation to increase sales and gain more profit while the customer is left satisfied with a quality finish which benefits them.

Promotional activities

Internet forums

Sunday Telegraph

Due to the car wash not having one specific age group to target it makes it tough to plan what the customer is willing to see as an advertisement and also because they are a small business it’s roughly impossible to fund large amounts of money for television advertisements.

This is why other forms of advertising must be arranged and they are as follows:

Flyers

Mail box drop offs

Discount tokens

Every 10th wash get one free

Prizes -Chance to win your own home cleaning set

Implement Strategies

Recruiting Process

Advertising Process to find employees:

Premier Hand Car Wash The recruiting stage will be done by the owner this is due to the organisation being a small business and not having excess funding towards human resources to do advertising and inducting which might be a long process.

The job advertising will be done within the centre; signage will be posted up on a window of the carwash building also on the entrance towards the staircase. If no worker has been found in between 2-3 days, then it will be posted on seek.com or carrerone.com website. The process Premier Hand Car Wash use saves a large amount of time due to so many people going past this signage and reading it and also saves the company plenty of money for not calling HR and paying them to recruit an individual.

Experience and Educational needs for job:

No previous education or experience is needed, all you have to bring to the job is a dedicated attitude and is highly self motivated and have good English speaking skills and have good customer communication skills.

Recommended Training:

When a new team member arrives to the carwash the owner introduces him to all the employees and asks the staff to teach him/her the skills that are needed. The training takes two days of learning the basics in each area of cleaning vehicles. Also while in training your pay is deducted in half because you can’t perform as well.

Working hours:

The owner of this business will be calling the employees two to three hours before their shift starts this is because he offers only casual jobs and wants to know also who is serious about the job and who isn’t by doing this tactic. The employees will be called only on the days that they are available, the longer the employee stays within the organisation the more stable his/her job becomes and a timetable of working hours is created instead of calling when they are needed.

Action Plan

Name of Duty

Action

Who is Responsible

Time of Shift , Break and end shift

Date

Interior Cleaning

Vacuuming

Wipe down interior plastics

Clean bad odour

Fred

Jacob

Start Shift at 8am

20/11/10

30min Break at 12pm

Finish work – 5pm

Wash Bay

Rinses car

Soaping it

Using poisons to kill off stains and other markings

Anthony

John

Start Shift at 8:30 am

20/11/10

20min Break at 1pm

Finish work – 5pm

Wiping down

Using cloth to wipe down car

Tyre shine

Double checking everything is clean

Window cleaning

Alex

Milos

Start Shift at 8am

20/11/10

30min Break at 11:30pm

Finish work – 5pm

Driving cars and meeting dead lines

Maintain schedule

Drive cars in and out parking lot

Communicate with customers

Money handle

Johnny

Start Shift at 7am

20/11/10

30min Break at 12:30pm

Finish work – 6pm

Promotional Activities over 1 year

Advertisement

Costing

Flyers

$800

Website

$14069

Prizes

$550

Sunday Telegraph

$2100

Monitor and Improve

Monitor Marketing Performance

The monitoring of marketing performance will be done through these key performance indicators:

The use of data bases to measure promotional methods

Number of visits to internet forum/website

Increased parking space becoming full

Number of calls about products done through advertisement by flyers, mail box drop offs and posters

Contingency plans

The way the car wash will work on its contingency plan is by asking the consumer at the end of the cleaning producer how they took notice of the company. From this Premier Hand Car Wash has been given valuable information that they can record. This is because if they are posting adds on the internet and paying for the site to stay up and progress is not coming from that section they can spend less time and money on that section and more on flyers/mail box drop offs if that is where all their customers are finding out about their organisation.

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