business plan on auto 7

BUSINESS PLAN ON AUTO 7

AUTO 7TUNING & MODIFICATION

ENTREPRENEURSHIP

SUBMITTED TO:

SIR AHMED FAREED

SUBMITTED BY:

SHARJEEL SALMAN 11005ABDUL MAJID 11016WALEED BUTT 11035

BUSINESS PLAN AUTO 7

ACKNOWLEDGEMENT

Above all the praise goes to ALMIGHTY ALLAH with whom all the sovereignty lays, who bestowed us the essence of knowledge and the sight to differentiate between the right & wrong. By the grace of Allah we have completed this project successfully.

We will greatly like to thank our kind and committed teacher SIR AHMAD FAREED who gave us such type of activity to enhance our knowledge.

Thank you.

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DEDICATION

Our dedication goes to the one, who is the Most Beneficent, The Most Merciful (ALLAH), &

to our Parents & Teachers.

TABLE OF CONTENT

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S1. EXECUTIVE SUMMARY:............................................................................................7

2. INTRODUCTION:.......................................................................................................8

3. BUSINESS BACKGROUND:........................................................................................9

3.1. BUSINESS OPPORTUNITY:................................................................................10

3.2. BUSINESS PLAN CREATION:..............................................................................11

4. ABOUT US:.............................................................................................................12

4.1. VISION:.............................................................................................................12

4.2. MISSION:..........................................................................................................12

4.3. GOAL:...............................................................................................................12

4.4. OBJECTIVES:.....................................................................................................12

4.5. CSR:..................................................................................................................12

5. COMPANY DESCRIPTION:.......................................................................................13

5.1. COMPANY OBJECTIVES:...................................................................................13

5.2. BASIC INTERESTS/SERVICES:............................................................................13

5.3. MAP OF OUR TERRITORY:................................................................................14

5.4. TERRITORY PRODUCTS/SERVICE DESCRIPTION:...............................................14

5.4.1. ENGINE DEPARTMENT:.................................................................................15

5.4.2. PAINT AND BODY:.........................................................................................16

5.4.3. WHEEL AND RIMS:........................................................................................17

5.4.4. ACCESSORIES:...............................................................................................18

6. BUSINESS MODEL:..................................................................................................19

6.1. AUTO PARTS SELLING & SERVICE:....................................................................19

6.1.1. SALES PROMOTIONS STRATEGIES:...............................................................19

6.2. VALUE CHAIN:..................................................................................................20

6.3. VALUE PROPOSITION/CUSTOMER:..................................................................21

6.3.1. CUSTOMER ANALYSIS:..................................................................................21

7. MANAGEMENT TEAM OF AUTO 7:.........................................................................22

8. ORGANIZATIONAL STRUCTURE (Hierarchy)...........................................................23

9. POSITIONING STRATEGY:.......................................................................................24

10. MARKETING PLAN:.................................................................................................25

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10.1. MARKETING CHANNEL:................................................................................25

10.1.1. MARKETING STRATEGY:............................................................................25

10.1.2. MARKETING MODEL:................................................................................26

10.2. PASTEL ANALYSIS:..................................................................................................29

10.3. MARKET SEGMENTATION:.....................................................................................31

10.3.1. GEOGRAPHICALLY:....................................................................................31

10.3.2. DEMOGRAPHICALLY:.................................................................................32

10.3.3. PSYCHOGRAPHIC:.....................................................................................32

10.3.4. BEHAVIORIST:...........................................................................................32

11. ADVERTISING PLAN AUTO 7:..................................................................................33

11.1. INTEGRATED MARKETING COMMUNICATIONS (IMC):.................................33

11.1.1. SALES PROMOTION:..................................................................................33

11.1.2. PUBLIC RELATION:....................................................................................34

11.1.3. ADVERTISEMENT:.....................................................................................35

11.1.4. INTERNET ADVERTISEMENT:.....................................................................36

12. SWOT ANALYSIS OF AUTO 7:............................................................................37

12.1. STRENGTHS:.................................................................................................37

12.2. WEAKNESSES:...............................................................................................38

12.3. OPPORTUNITIES:..........................................................................................38

12.4. THREATS:......................................................................................................38

13. PORTERS FIVE FORCES MODEL:..............................................................................39

13.1. BARRIERS OF ENTRY:....................................................................................39

TIME & COST OF ENTERING.................................................................................39

13.2. SUPPLIERS:...................................................................................................41

13.2.1. NUMBER & SIZE OF SUPPLIERS:................................................................42

13.3. ABILITY TO SUBSTITUTE:...............................................................................43

13.4. BUYER:..........................................................................................................44

13.5. COMPETITIVE RIVAIRY:.................................................................................45

14. MARKETING MIX (4P’S):...................................................................................46

15. COMPITITORS ANALYSIS OF AUTO 7:.....................................................................47

15.1. COMPETITORS ANALYSIS TABLE:..................................................................49

15.2. COMPETITIVE EDGE:.....................................................................................49

15.3. COMPETITIVE SWOT ANALYSIS:....................................................................50

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16. HUMAN RESOURCE PLAN OF AUTO 7:.............................................................51

16.1. RECRUITMENT:.............................................................................................51

16.2. SELECTION:...................................................................................................53

16.3. TRAINING AND DEVELOPMENT:...................................................................54

16.4. PERFORMANCE & COMPENSATION:............................................................54

17. REGULATORS AND OTHER STAKE-HOLDERS OF AUTO 7........................................58

18. FINANCIAL PLAN OF AUTO 7:.................................................................................59

18.1. BUDGET ESTIMATION:..................................................................................59

18.2. EXPENSES ON BUILDING & WORKSHOP:......................................................60

18.3. EXPENSES ON ADVERTISEMENT:..................................................................61

18.4. INCOME STATEMENT (YEAR ENDED):...........................................................62

19. FUTURE GOAL/EXIT STRATEGY:..............................................................................63

20. APPENDICES:..........................................................................................................64

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1. EXECUTIVE SUMMARY:

The purpose of this business plan is to outline service, operations and costing of a

business to be known as AUTO 7. Abdul Majid as the owner/operator intends to

operate repair and service business at location suite’s to the customer. Our business is

about Car Caring Company devoted to discovering latest modification, new technology

and new ways to tuned up cars and modification. Market research confirmed an

opportunity and a need for the business as proposed. The opportunity exists for this

business with competitive advantage based on maintenance of the imported cars and

to produce new modifications for the car enthusiasts who are our customers.

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2. INTRODUCTION:

The name of the company is Auto 7. This company is based on Car Caring

Company, in which we are going to introduce latest modification, new technology and

new ways to tuned up the imported or local cars available in the market. We have

made the decision after doing research about the trend of the car modification in

which is rapidly prevailing in the main elite areas of the Lahore like Defense, Cantt,

Gulberg, Model Town, and many rich areas of the Lahore city. After the analysis we

come to know that the people of these areas have many imported cars and average

every elite house has two to three cars in their car porch. This shows the interest of

these people to get cars which are latest and modified cars of the international market.

But unfortunately market gap has ensures us that these cars are do available in

the market but the problem of services like tuning, maintenance, availability of parts

and other required accessories are not easily available in the market and this problem

is not solved yet. The customer in case of damage and problem in the car performance

travel here and there to search the best, which can solve their problem.

Many rich people waste their time on personally ordering their cars parts and

accessories from the international market from where the car is been manufactured

and where its parts are available.

That’s why we thought to build the company named AUTO 7 which will offer all

the parts, stock accessories, modified accessories and best literate mechanics who

know how to tuned up these imported cars which are been used by the elite

population of the Lahore city. So the AUTO 7 will provide complete platform of the car

care in which all the works related to car will be done to solve our target customer

problems because our target customer wants their cars perfectly alright and look neat,

clean, maintained, modified and perfectly tuned according to their demands.

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3. BUSINESS BACKGROUND:

The background of this business is that this businesses are been regulate in the

foreign countries and this trend is carried and inherit by the local market. The car

enthusiasm was already in the foreign countries like Italy, Japan, Dubai, USA, which are

the top examples. Therefore the people of these foreign countries do car racing and do

car modification, and customization competition to make their cars look different and

beautiful from others.

The very popular company in the U.S.A is giving complete car services and

parts to make their cars transform into the shape as the customer requirement. That

company is named as “Pimp My Ride”. That company is one of the most popular

companies in the world who have experts and best things to do alterations in the cars

and many other things which we think of to have in the car.

In Japan the company named as, “MUGAN” is also doing complete car caring

service, customization and modification. There are many companies in the world who

are doing this business and this business is also getting grip in our local market and or

local market car enthusiasts are demanding these things because this is the time of fast

internet and people do watch the latest trends and our elite population have lot of

money to spend and they want this kind of company availability in the local market to

fulfill their need of car customizations which are been done in the international market

from many years.

This is the background of this business which is encouraging us to this business

in capital city of Punjab, Lahore to target the customers who are the car enthusiast and

they are always the buyer of latest cars in the market and never get relaxed until their

cars are perfectly alright. This is now becoming the style of our elite people to have

latest and expensive brand cars.

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3.1. BUSINESS OPPORTUNITY:

Auto up gradation is our passion when we really take it as our profession. Than

we start study about it. Our passion compelled us to find the legal way. So we start

finding, we have wasted my months and weeks in this search. But anyhow this is not

waist.

We found it creative thing and find the big gap in the market which is unfilled. So

we start taking people opinions most of the people give us positive reaction and few of

them give us negative reaction. So we search again why few of them have negative

opinion. So we find in Lahore that imported parts are illegally sells in our markets like

Bilal Ganj, Maclo road, Mont Gumni road etc. then we found that at internet that

Karachi near Clifton as Pakistan largest auto parts market. They import the used theft

auto parts from Afghanistan and central Russia. There suppliers are in Peshawar and

Khyber boarder.

Auto upgrading is rapidly increasing in Pakistan but they are doing all these

things illegally. We take this big gap as opportunity that people used illegal up

gradation parts in Pakistan. So we found the chain of people that they want to upgrade

their cars. But most of them not involve in this due to its illegality. They have lot of

threads of city police, government, political issues, and custom duties problem etc.

For the practical survey I go Peshawar with my friend who wanted to change his Honda

civic engine with Integera sports car engine named as B18 C. We stayed two days there

for the purchase and installation of the engine but this was a big illegal thing we had

done and I have also seen lots of customers were there to do different things in their

cars. So from there I thought it should be legally started in the main area of Lahore and

people should feel safe and all the procedural work should be done to meets the

customer demands.

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3.2. BUSINESS PLAN CREATION:

So we have now started planning to make this auto up gradation legal in

Pakistan. We will legally register our company through SECP Pakistan. Than our

company will become 1st who legally register in Pakistan with the complete auto up

gradation rights. Then we can run our business without interruption of legal

authorities. We have already talk about the Karachi auto parts importers they insure

that we will legally import your parts on order. Then we found very good technicians in

my nearest workshops who advanced tuned the people cars. But they are working in

very few salaries. They have talent and they need just little help of polishing them by

hiring one or two international professional mechanics they will do proper training to

them by leading the other mechanics. Along with the modification and customization

of the cars the plan further shows another opportunity to handle the imported car

maintenance which is the big problem in our local market.

As the rich people are rapidly buying the imported cars to get luxury and to make

them unique from the other local made cars available in the Pakistan. Therefore the

problem of the maintenance and lack of availability of parts of these cars has showed

us opportunity and made us help to make the proper plan which can solve the problem

of the elite people by providing them best services and solve all the problems of the

cars from bumper to bumper in a single workshop so that our customer have less

wastage of time and we will complete provide them quality work to gain customer

satisfaction and value in return.

Our plan of doing this business get more stronger after doing the activity of

entrepreneurship mid project which has confirmed us that our target customer have

lot of money and they spend their money crazily on their enthusiasm to make their car

beautiful, modified with unique accessories, and to install heavy sound systems etc. We

did accomplish the task and in return earning commission of 5000 in just 2 days by

providing expertise and services to our customer.

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4. ABOUT US:

We are broad-based Car Caring Company devoted to discovering latest modification, new technology, customization and new ways to tuned up cars up to their limits and to do modification with different styles.

4.1. VISION:

To becomes Premier Car Caring Company in Pakistan.

To Introduce First Racing Track in Pakistan.

4.2. MISSION:

To deliver consistently superior parts and services Contribute significantly to improve the quality of life of the consumers.

4.3. GOAL:

We will introduce first Racing Track in the history of Pakistan

4.4. OBJECTIVES:

To build a valuable business capable of supporting the operator and his family.

To Modify Attitudes of People.

To increase the turnover of the business and offer a high level of service to customers.

4.5. CSR:

Over Speeding is Deadly.

To Reduced illegal Races at Public Roads.

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5. COMPANY DESCRIPTION:

The name of company is AUTO 7. Our company is about Car Performance, Customization, Accessories, Modification, Repair and Installation Services.

5.1. COMPANY OBJECTIVES:

Short-Term Objectives:

To build a valuable business capable of supporting the operator and his family.

To Modify Attitudes of People.

Long-Term Objectives:

To increase the turnover of the business and offer a high level of service to customers.

5.2. BASIC INTERESTS/SERVICES:

Our basic interests/services are stated below:

Tuning the car up to its limit. In racing travels. Limited edition version. Unique creation models for consumers. Unique modification. Make ultimate tuning possible in Pakistan. Unique models for customers. Give best services to our customers. Installation of accessories Music systems advancements Customization on order Vintage cars modification etc.

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5.3. MAP OF OUR TERRITORY:

As we are entering new in this business so we will assume all the risk factors

and we will start from the small setup. After the success and with increase in customer

demands we will look forward and accomplish our ultimate plans. The rough sketch of

our startup territory is shown below;

5.4. TERRITORY PRODUCTS/SERVICE DESCRIPTION:

We have classified our business into four departments in which cars will be customized or tuned according to the needs of our customers.

Departments Tuning & Modifications:

Engine. Paint and Body. Accessories. Wheel and Rims.

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5.4.1. ENGINE DEPARTMENT:

In this department the cars will be mechanically tuned and different engines

and its parts will be available, to installed them into the cars and bring the cars up to

their limits. In Pakistan there is a main problem of tuning the imported sedans,

sports, exotics, and luxury cars. We will hire highly professional mechanics for proper

maintenance and for the satisfaction of customers.

As you can see the above pictures of the engines these are the heavy engines of

the super luxury sports and sedan cars engine. These engines cannot be easily tune in

the Pakistan but as these cars are available in Pakistan so over professional mechanics

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will tune these kinds of engines in AUTO 7 to reduce customer tension that these cars

can tune locally.

5.4.2. PAINT AND BODY:

In this department paint job of cars will done and we will give options of different

vinyl and styles. In body we will provide different parts related to the car

customization like body kits, hoods, spoilers, expensive foreign car caring polishes

etc. this will done under highly professional designers and painters. We will import

parts of imported cars which are not easily available in the market and our customers

will easily orders or purchases.

The above picture of the modified cars shows that body kids, spoilers, side panels,

vinyling and styling of the car through paint and body extension and modification

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makes cars look different and more attractive than the stock cars. So in this paint and

body department AUTO 7 will completely deal with the transforming, modification and

customization of the cars according to the customer needs which will known as tailored

car.

5.4.3. WHEEL AND RIMS:

Our company will provide all types of wheels and rims. We will bring the best

designs from all over the world. These rims and wheels will be for sports and other all

types of imported cars. Our customer also can select Rims from our catalogs and

internet than we will import Rims of consumer’s choice on order.

The

above picture of the wheels and rims shows that the imported and local cars look good

and drive well when their wheel and rims are perfectly alright. The car enthusiasts do

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like to change the rims of their cars and use low profile wheels which are very light in

weight and increase the speed and performance of the car. So in the AUTO 7 customer

doesn’t needs to go here and there everything will be provided for customer easy and

also for customer time saving.

5.4.4. ACCESSORIES:

We will provide all the all internal and external accessories which are necessary

for the modification and visuals of the car. In this department we will also include

sound systems as car accessories.

For the installation of the car accessories there is a need of professional electricians

who can install the electrical accessories and the music systems. Therefore in the car

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modification internal decoration the major part is the music system and we will make

availability of the heavy music systems according to the customer demands.

6. BUSINESS MODEL:

Our business model is following the new sense of selling and service providing

concept which is stated below:

6.1. AUTO PARTS SELLING & SERVICE:

Our company is offering complete range of Auto parts and services especially

for the imported cars available in our local market, through our four departments and

these departments contain different parts and accessories as it describe above in

departments description. Our departments will focus on our existing auto parts and

services. We will promote our each department’s products include car modification

and auto parts by the source of advertisement and promotion. Finally we will create

profit through increasing the volume of our sales.

SELLING

& SERVICE

STARTING POINT FOCUS MEAN END

Company’s 4 major

departments

Existing Auto

Parts &

services

Selling, Providing

Services & Sales

Promotion

Profit/sale

volume

6.1.1. SALES PROMOTIONS STRATEGIES:

In start up of our business we will do the following sales promotions strategies to increase the sales which are discussed below;

Price reducing Competitive Incentives Free service

Price reduction; in this we will give discounts to our new customers to retain them and by giving best services to satisfy the customer.

Competitive; we will offer competitive service charges and give best services to our customer to gain value in return.

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1) Forecasting Demand of Current Auto Parts in Market

2) Purchases of imported cars auto-parts by importing & also purchase from lacal market if available

3) Direct Selling to our Customers from our place AUTO 7

4) Assembling Auto-Parts or Accessories

5) Installation & Services


Incentives; we will give incentives our customers which will motivate them and make them come again.

Free Services; we will give first free service in the start of time for the limited time to

gain customer attention.

6.2. VALUE CHAIN:

The value creating steps/activities of Auto 7 are shown in flow diagram below;

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As we have already discussed our value is to create easy for our customer and to provide all modification, auto parts under one roof. We are not creating anything by our self but we are providing imported cars parts by importing from the foreign countries and also giving those best services which are required to maintain their imported cars and it is a problem in the market right now.

Step 1; the forecasting of the customer demand like current trend of body kits is increasing in our local market as it is in foreign countries. We will provide everything according to the market demand in which auto parts, accessories, wheel and rims etc.

Step 2; we will directly or indirectly import the car modification and other accessories from the foreign country with the help of importers and if the normally used parts available in our local market we will also purchase from the local suppliers.

Step 3; selling of different things related to cars from our four different departments according to the customer want

Step 4; assembling the un-assemble parts of the car in the workshop

Step 5; finally our workers according to the work specification will install it into the customer’s car.

6.3. VALUE PROPOSITION/CUSTOMER:

Our target Customers are Elite Class. These are the most important and rich

people especially within the society. We are targeting those who are the car

enthusiasts and who have the imported cars. These people in the society are very

conscious about their cars. They didn’t get relax if their cars are not perfectly alright.

They well maintained their cars and they always look for the new improvements in

accessories and new modifications. They are conscious to retain their class by having

luxury.

So our business of AUTO 7 which is based on tuning and modification is beneficial

for our customer because we are providing complete auto parts in a single plate form

which will reduce the tension of our customer by traveling here and there for the

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different works of their cars. The top most benefit for our customer is that we will solve

the problem of our customer by providing the best professional mechanics who will

understand the complete engines and other works of their imported cars which is

recently is a big problem in the market because there are very few mechanics are

available in the market who handle the problems of the imported cars. Therefore our

business is a complete package of handling all the works of the cars under one roof. By

providing all auto parts and services to our customer we will give complete customer

satisfaction to our customer which is the ultimate need for our customer who are car

enthusiast and who want their cars perfectly alright.

6.3.1. CUSTOMER ANALYSIS:

Our customers are elite class of Pakistan.

Total elite class of Pakistan is 10% out of 18 corer of population.

The population of Lahore is 10 million and 3-5% is the elite class of Lahore out

of 10 million.

Our target market population is 5 lakh or more in Lahore city.

This class have 27.7% wealth of Pakistan

7. MANAGEMENT TEAM OF AUTO 7:

There are four levels of management teams in Auto 7:

Top Management Middle Management First line Management Non Managerial Staff

Top Management:

The CEO of AUTO 7 is ABDUL MAJIDThe CFO of AUTO 7 is ABDUL QAYYUM

Middle Management:

The Operation manager of AUTO 7 is Waleed ButtThe HR manager of AUTO 7 is Sharjeel SulmanThe Work shop manger of AUTO 7 is Ahsan Ijaz

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C.E.O

C.F.O

HR Manager

Manager Operations

Accessories, Paint/Body &

Wheel/Rim Workers

Workshop Manager

Tunning & Engine Dept. Team Leader

Mechanics


First line Management:

Tuning department team leader of AUTO 7 will be hired from Japan. This team manager or team leader will give tasks and mechanical works to our normal skilled mechanics hired from our local places. This manager will make the tunings of sports and other imported cars and he will make our labor perform tasks.

Paint and body department team leader of AUTO 7 will be hired from Lahore. He will be the best and technical man of his field he will also make or labor learn enable them to perform the tasks.

Accessories department will hired the best salesman for our shop of accessories in AUTO 7. We will also hire the accessories department no managerial labor that will the professional fitters and installers of accessories.

Wheel and rims department will also hire the best sales related to that field. The change and remove of rims labor will professional and skilled.

We will hire the managers and bottom line labor according to our HR plan and steps which we involve in staff planning for our company.

Non-Managerial Staff:

Engine mechanics Suspension mechanics Electricians Denters and painters Accessories installers Wheels and rims installers Security guards etc

8. ORGANIZATIONAL STRUCTURE (Hierarchy)

As the management team is described above, on the basis of it we have designed the organizational structure of our business to be known as AUTO 7. The following hierarch shows the organizational structure which is shown below;

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9. POSITIONING STRATEGY:

We know that our business is about car tuning and modification. Our business

is to attract the elite class towards our business. Our company will give good quality of

parts and satisfied service to our customer. Our target market needs latest

modification and professional mechanics for their cars.

Our competitors are in Defense Main Boulevard Lahore, which are Max Power

and Ahad Motors but they don’t have space to park the car. In rushed hours customers

didn’t get space to park their cars and they have few workers who make the customers

wait hours and hours and there as I am their customer not satisfied with their service.

They always have shortage of parts. Our business have major unique selling point that

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our customer will have platform of complete modifications and tuning service in which

all car accessories, parts, wheels, rims, tuning service, paint and body. These are the

main things we are providing our customers in a single place but our competitors don’t

have all the modification services and things, so there customer has to move ahead.

Our competitors have no work shop and proper service they do all the tasks on

the road sides. As our customers are car enthusiasts and they are much conscious

about their cars and they didn’t come on those places due to bad service and untrained

labor. So it is another USP of our business that’s why we are positioning in Defense

because it is close to our target market and our second option is Gulberg because it is

centre of our target areas of Lahore.

10. MARKETING PLAN:

Our company marketing model follows the new sense of marketing and we will

communicate with our customer with new modes of marketing which are discussed

below;

10.1. MARKETING CHANNEL:

Our channel of distribution is direct marketing. We will supply Auto parts directly to consumers. In our market channel the suppliers will give us the auto parts than we will sale it from our place directly to the customer.

10.1.1. MARKETING STRATEGY:

Our marketing strategy is to focus on the customer needs we will identify the

basic needs of our customers. We will study our competitors and study the trends of

market what customer is looking for. Finally we will gain profit through satisfaction of

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our customer which will be our first and last priority towards our consumers to satisfy

them. The marketing concept and activities are shown in the table;

MARKETING

CONCEPT

STARTING POINT FOCUS MEAN END

Marketing Customer

Wants

Integrating

marketing

Profits/customer

satisfaction

ACTIVITY CLIENT NEED WHEN

Advertising Quality, honesty, reliability Start up

Pricing Competitive Always

Service Reliable, efficient Always

Report to customer Informed selling Always

Promotional activity Awareness Start up

10.1.2. MARKETING MODEL:

The marketing model is shown in the flow diagram below;

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Forecasting the Demand of

Our target market

Purchases/Imports

Advertisement Direct sellingAssembling

Parts/accessories

Services

Feed backs

Racing events Sponsors


Forecasting of demand of our target market. Purchases/imports Advertisement Assembling the parts/accessories. Direct selling Installation/services. Feed backs. Event Sponsors.

FORECASTING OF DEMAND OF OUR TARGET MARKET:

The first step of our marketing model is forecast the demand and supplies of our

target customers. This will help us in making the availability of things according to

customers need and it will also reduce the expenses of company.

PURCHASES/IMPORTS:

After forecasting the demand and supplies it will enable us to purchases through

our suppliers or import the things related to auto parts according to the demand.

ADVERTISEMENT:

We will do advertisement on the different road sides of these posh areas in

which defense main boulevard lighting pole advertisement about the new arrivals of

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the customization and modification accessories and we will also create awareness of

the AUTO 7 to our target audience.

ASSEMBLING PARTS/ACCESSORIES:

Than we assemble the parts and accessories after import it is because most of the

things are packing and not assembled. Than these things will be ready to display and

installed.

DIRECT SELLING:

We are going to the sell these things in our own place of AUTO 7. We are

going to use direct channel of distribution.

INSTALLATION/SERVICES:

As we have discussed above our company will also give services. We will install all

the auto accessories and parts in our own place.

FEED BACKS:

Public relationship is the process of understanding public attitudes on relevant

issues, interpreting those attitudes for management, and the taking steps either to

identify the organization with those attitudes or to modify the public attitudes. Our

company will follow the process of public relation through feedbacks and after that we

will take suitable steps for our consumer satisfaction.

EVENT SPONSORS:

On different Events of Racing and car modeling shows which are organized by

PAK-WHEELS in Lahore, AUTO 7 will display its unique models of cars and will Sponsor

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these events to create awareness in the right target audience. Therefore through these

events sponsorships public will come to know about our company and services. We will

also provide professional mechanics for repair and maintenance of the Racing Cars

which are taking apart in the racing. Our mechanics will repair and tuned their cars on

the spot and our company will also provide safety kits for driver’s safety and this is

never done before in the past events.

10.2. PASTEL ANALYSIS:

P: PoliticalE: EconomicalS: SocialT: TechnologyE: EnvironmentalL: Legal

POLITICALLY:

Our idea of tuning and modification is neutral politically. Politically

Government imposed very heavy duty on auto parts. But we will meet the officials of

Pakistan with proper planning and report. And we will ensure them our racing track

plan that this is a safe and healthy game. Example: foreign countries that they are

earning millions of dollars from this activity. Government will get many benefits in

sense of taxes.

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ECONOMICALLY:

This is very expensive work. But our customers are automobile enthusiasts

(strong and passionate). They can afford it at any cost because they are really strong

and passionate about car customization hobbies. We will also solve the problems of all

big brand cars which are available in Pakistan. We will provide superior parts and

technology. We are also trying to improve the quality of life of our customers.

SOCIALLY:

Socially our business will create employment opportunity. We will higher many

workers. It will also promote self employment. Socially our customers are car

enthusiasts and these people are socially very strong and passionate.

TECHNOLOGICALLY:

Our company will use advance technology which we will import from Japan and

other foreign countries. All the big brands of cars are available in Pakistan. We give

them services through our latest technology of equipments.

ENVIRONMENTALLY:

Environmentally we are reducing pollution

Maintenance of cars will creates less pollution in the environment.

People are well aware of our business.

LEGAL:

Our business is legal and there are no hurdles to start.

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Our future goal is not legally attainable in Pakistan but we will certified it

as legal in our country by meeting the official with proper planning and

reporting.

We will also meet with the BAHRIYA TOWN officials. They are organizing

these kinds of events in Pakistan with PAK – WHEELS.

These events were legally held.

We will show them our plan and make them partner in our plan of

making the first racing track in Pakistan.

10.3. MARKET SEGMENTATION:

We use Market Segmentation for the marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs or demands

Age: 18+ and above

Education: Matriculation and above

Income of Household: 1 million per month and above

Geographically: Urban Areas

Desired Benefits: Premier Car Caring to gain value in return (profit)

10.3.1. GEOGRAPHICALLY:

We are targeting the rich areas of our city (Lahore).

Most of the car enthusiasts are living in these places.

So we will try to open our business in Gulberg because it will be the centre

for the targeted areas.

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Our second option will be DHA Lahore.

These are the areas which we are targeting.

10.3.2. DEMOGRAPHICALLY:

Demographically both male and female, we are targeting.

These are elite class people who are earning huge income.

These people are well aware of our business because it is directly related to

luxury.

They are the luxury enthusiasts and they always go for it at any cost.

10.3.3. PSYCHOGRAPHIC:

The class which is related to our business is elite class these are most important and rich people especially within the society. Most of them are business tycoons.

Their lifestyles are high and luxury.

They are conscious to retain their class by having luxury.

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10.3.4. BEHAVIORIST:

Providing secure and professional platform.

Overcoming the problems of maintenance of cars.

Providing new modes of luxury.

Satisfying the customer needs.

11. ADVERTISING PLAN AUTO 7:

The advertisement plan of AUTO 7 involves different ways of communicating with customers and these are further described below;

11.1. INTEGRATED MARKETING COMMUNICATIONS (IMC):

Our company will follow the four communication elements of marketing:

Sales Promotion Advertising Internet Advertising Public Relation Event Sponsorship

11.1.1. SALES PROMOTION:

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Sales promotion is the main and important technique to increases the sales of

any company. AUTO 7 will also take apart in sales promotion. We will give benefits to

our customer on buying of auto parts and accessories. Sales promotions like in the

starting of our business we will give concessions, free service on buying of parts and

accessories from our shops, and free check up of our consumers cars. As we know

that people usually resist to new business and product that’s why we will do sales

promotions for recruitment of new customers. The reduction in price, Competitive

marketing, Incentives for consumers and Free service will help us a lot in increasing of

sales and how know of AUTO 7.

Sales promotion is very important to retain and repurchase the product. It also boosts

up the image of company.

The consumer’s sales promotion which is used by our company is;

Price reducing

Competitive

Incentives

Free service

11.1.2. PUBLIC RELATION:

Public relation is the most impotent element of for selling of expensive

products. As we know that AUTO 7 has four departments which are Engine & Services,

Wheels and Rims, Accessories, and Paint & Body. These departments are for

customization, modifications and car caring services departments. We are helping

people in the improvement of their cars styles and luxury. These things are expensive

and costly. That’s why we will use public relation element like we will sell informed

products to our consumers and we will give after sales services to our consumers. We

will take feedbacks in which we will come to know about the consumer’s satisfaction

and dissatisfaction our company’s first priority will to give the best car caring service

and AUTO 7 will try to retain consumers through its loyal attitude.

AUTO 7 has chosen two Public Relation (PR) ways:

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Feedbacks

Events Sponsor

FEEDBACKS:

Public relationship is the process of understanding public attitudes on relevant

issues, interpreting those attitudes for management, and the taking steps either to

identify the organization with those attitudes or to modify the public attitudes. Our

company will follow the process of public relation through feedbacks and after that we

will take suitable steps for our consumer satisfaction.

EVENT SPONSOR:

On different Events of Racing which are organized by PAK-WHEELS in Lahore,

AUTO 7 will Sponsor these events. Through this events sponsorships public will come

to know about our company and services. We will also provide professional mechanics

for repair and maintenance of the Racing Cars which are taking apart in the racing. Our

mechanics will repair and tuned their cars on the spot and our company will also

provide safety kits for driver’s safety and this is never done before in the past events.

11.1.3. ADVERTISEMENT:

Integrated Marketing Communication’s the Advertisement and the most

important IMC objective is related to Customer. In integrated marketing

communication our company AUTO 7 organization has a plan to use different set of

media to convey or communicate a single message to the required target segment. So

here is the complete necessary detail is given below of the Consumer IMC.

Advertising through Electronic media and print media is one of the most important,

useful, reliable communication methods now a day. So we also have decided to

advertise our product through different Medias. We have selected different Medias like

Print Media, Outdoor Media, and electronic Media.

ADVERTISING GOALS AND OBJECTIVES:

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The advertising goals and objectives are stated below;

To capture maximum target audience To Make audience aware about our company To create positive word of mouth about AUTO 7 To hit the emotions of the target audience To increase the Sale To Make maximum Profit To hit the preference To make better recall of the advertisement

11.1.4. INTERNET ADVERTISEMENT:

INTERNET WEB SITE:

Company’s website is an important element of the IMC Plan. So to boost up the

sale and to provide maximum information about the four departments of AUTO 7 , we will develop an interactive web site. Web site pages contain material about the

company and its four working departments and as well as all information’s which will be required to our consumers.

Company web site will be www.auto7.com.pk

This will be the address of our company and after success of this company we will

move towards our future goal of making the first racing track. We will also give the

information of our track and in future we can also register our Racing participants through our website. We will also give online service of for the import of auto parts. Ours consumers can easily give us order for imported parts through our website and

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http://www.auto7.com.pk/


we will also show them samples and catalogs at this website and we will take credit cards payments or online payments.

DIRECT COMMUNICATION (E-MAILS):

We have decided to communicate with target customers through direct

marketing campaign. We will use mail, or email to update these customers about our

latest products developments or promotions. We are trying to be creative with our

campaign to reach our target customers with direct marketing material. For Email

direct marketing, we have purchased software which has storing capacity of two lack

emails. Through this software, we can send multiple people a customized message at a

time.

12. SWOT ANALYSIS OF AUTO 7:

The SWOT Analysis of AUTO 7 is stated below;

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12.1. STRENGTHS:

Unique designs of modification

Strong Attributes.

Latest Technology.

Qualified Staff.

Professional works for best services.

Providing all products related to car at same place.

Our competitors have no parking area they do all the works at road.

Efficient and affective worker.

Reduces the pain of customers by providing every car parts.

Import facility of unique parts for car.

Limited edition versions.

Tuning all types of cars availability.

Unique models for collectors.

Registered company from SECP of Pakistan

12.2. WEAKNESSES:

New entrance.

Not much experienced workforce.

Not too much financial resources.

Lack of market research.

Less suppliers

5% of target market

12.3. OPPORTUNITIES:

Un-attended segment

Business Expansion

Market development opportunity

Increase in luxury

Not use of advertising instruments by competitors

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Aware audience available in Market

Presenting first platform for the customers.

Satisfactory services for our customers.

12.4. THREATS:

Experienced Competitors

Many accessories and parts shops available in the market

Fragmented target customers

Weak logistics and distribution system

Political threats.

Heavy duties applied by the government on auto parts

Government is charging 8 to 10 percent import duties on the auto parts.

13. PORTERS FIVE FORCES MODEL:

There are five section of Porter’s Five Model:

1. Barriers of entry2. Suppliers3. Substitutes4. Buyer5. Competitive Rivairy

13.1. BARRIERS OF ENTRY:

It refers to the entrance in a market. As concern about AUTO 7 following are some of the major factors that we estimated to entering in a market.

Time and Cost of Entering Knowledge Economics of Scale

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Barriers Technology

TIME & COST OF ENTERING

As this an age of fast moving mobiles and people in Pakistan people are now start taking great interest in this market. They use to adopt the new trends of customization and there is also a great craze of having new models of cars. About 65 percent of the existing population of Pakistan is based on youth. And about 5 to 6 percent belong to elites. And they use to enjoy the high speed of thrill. So our target market is elites found of racing and use to prefer customization for their cars. And in Pakistan there is no Car racing track available for the racers, by seeking this great opportunity so we are the initiators of this project especially in Lahore.

So we are assuming that this is the right time to opening a racing track which boasts the zeal of the racers. The estimates for this project is estimated approximately 5 million and it is approaching to our main cost of entering. In which all of the costs includes.

KNOWLEDGE

We are gathering the adequate knowledge about our market and we want to set our perimeters according to the international standards. We have studied the both patterns nationally and internationally to get knowledge about our business, Customers, and profit margins. And we apply this knowledge to our national market to create a sense of understanding, recognition and after established a sense of loyalty about our business to our customers.

ECONOMICS OF SCALE

Economies of scale are the cost advantages that a project obtains due to expansion. There are factors that cause a producer’s average cost per unit to fall as the scale of output is increased. "Economies of scale" is a long run concept and refers to reductions in unit cost as the size of a facility and the usage levels of other inputs increase.

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The simple meaning of economies of scale is doing things efficiently. These are the major perimeters as below;

Minimum input Maximum output Cost effective Broader the profit margins

BARRIERS:

Barriers are the hurdle or difficulty to starting up the new business in new market. While starting up new business regarding to cars or automobiles following are some barrios which we are estimating for our business.

Controlling the starting cost Create image in the eyes of Target market Attracting target market Fruitful Advertisement Gaining the trust of customer

TECHNOLOGY:

Technology is the main factor in our business of car customization and racing tracks. Our aim is to facilitate our customers with the latest tools, equipments and technologies. Our aim is to modify not only the car but also the moods of our customers.

13.2. SUPPLIERS:

As for our business it is consider as a service base business that Auto 7

provides their best in the customization of cars according to the choice of its

customers. And there is an opportunity of low competition in the market. So Auto 7

wants to enhance its suppliers in this limited market. As for the unique selling point of

our business concerns that, we provide the racing track for race to promotes the car

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racing and also provide our safe racing modes to our customers. Auto 7 also provides

complete accessories of car customization to our customers on base of their desires.

The major components includes in this second section are as follow:

Number of suppliers Size of suppliers Unique selling product or service

13.2.1. NUMBER & SIZE OF SUPPLIERS:

AUTO 7 is service based company and our suppliers will be related to the auto parts of all imported and luxury cars which are available in Pakistan.

For our Engine & Accessories department, as we have discussed above that we will import the auto parts for cars from Dubai, Japan, China, Taiwan, Germany and our main supplier in Karachi near Gwadar port. They are directly importing auto parts from foreign countries and they are the largest whole seller of auto parts in Pakistan. We will also buy parts from the big markets of Lahore.

For our Wheel and Rims department we will buy from the whole sellers of the local market and we will also import wheels and rims from foreign countries. We are trying to make lot of choices for our customer by providing the best and hit designs of our local market and foreign market. We will provide catalogs of foreign Wheels and Rims designs and our customer can also select from internet.

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For our Body Kits department we are directly importing the body kits from the Taiwan, Germany, Dubai etc because this the main problem in our market they are making the body kits locally but they are not good at that and these body kits are not well finished. Our customers need satisfaction and best quality products. We will show them the designs of customize cars on the internet and then we will import the body kits on customer demand.

Our suppliers will gives us samples and catalogs according to products need of our four departments. We are not going to import all the things from foreign countries. We will show the samples and online designs to our customers and we will import all the things according to the need of our customer.

In Dubai there is a big market of car customization. These people are the really car enthusiasts. They people have reached the peak of customization of cars. We will import three or four best designed cars for our car show case from Dubai. These cars will be for sale and these cars will help us in taking order as customers wants to customize their cars as it is.

13.2.2. UNIQUE SELLING SERVICE:

Auto 7 will provide comfort and peace of mind to our customer. As our

competitors of don’t have space to park the car in their own places. In rushed hours

customers didn’t get space to park their cars and they have few workers who make the

customers wait hours and hours and there as I am there customer not satisfied with

their service. They always have shortage of parts. Our business will give our customer

complete platform of complete modifications and tuning service in which all car

accessories, wheels, rims, tuning service, paint and body. These are the main things we

are providing our customers in a single place but our competitors don’t have all the

modification services and things, so there customer has to move ahead. Our

competitors have no work shop and proper service they do all the tasks on the road

sides. And our customers are car enthusiasts and they are much conscious about their

cars and they didn’t come on those places due to bad service and untrained labor. So

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we are positioning Defense because it is close to our target market and our second

option is Gulberg because it is centre of our target areas of Lahore.

13.3. ABILITY TO SUBSTITUTE:

We do have ability to substitute our suppliers because we can directly import

it through internet and by going to foreign countries direct purchasing and make direct

communication with the foreign suppliers. But there is an issue of increase in cost by

doing this because cost will increase and the expenses may increase four times greater

than simply working with the suppliers who do work of import and export. We will

definitely go for direct buying after growth phase of our business because in the

growth phase we can’t take risks like this which increase the cost of the accessories or

the imported auto parts. But after the growth phase when we will able to buy lots of

parts and other things which can help us reduction in cost because in heavy bulk buying

the expenses can be manage and it will reduce the expenses than our first priority

which is based and relayed on the suppliers which are the importers.

13.4. BUYER:

According to our business point of view we are considering some of major components, of this section.

Number of customers Buying volume Brand identity Difference

NUMBER OF CUSTOMERS:

As from the customer’s point of view, our target market is based on elite group of people which is 5 % of the total population of our target areas. So we consider our business as a niche kind of business with a limited target market.

BUYING VOLUME:

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Our business is niche so the volume of our business is so much vast in which many things regarding car caring can come. Therefore we are forecasting to make our business as a brand identity, and enhancing its margin in front of youth who are the real customers of rich people’s children how have their own cars and they want them to modify it by their own choice and along with that the elite is having many luxury cars, at average count every elite house have 2-3 cars which can give big business to our AUTO 7.

BRAND IDENTITY:

Brand identity is one of the major motives of our business that is why we want to establish a positive and powerful image of our business in the minds of our customers especially the youth. We have an opportunity of less competition which benefits us a lot to establish our brand identity.

DIFFERENCE POINT:

The point of difference of our business is our business is providing complete accessories of advance, modern customization and complete range of caring things along with providing best services.

13.5. COMPETITIVE RIVAIRY:

The major sectors of focus in this section are described below:

NUMBER OF COMPETITORS

The competitors are very lower in number as they don’t deal all the car caring

sections as we are going to introduce with the unique plan. That’s why the competitors

can be considers individually to our business departments working. Few competitors

named as ahad motors, bilal ganj, mint gumni road, auto care etc. and the rest detail

with the complete analysis will be described further in the head of the competitor’s

analysis.

INDUSTRIAL CONSIDERATION:

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This industry has complete consideration because the car industry is increasing

day by day in our country and these industries are gaining huge profits by

manufacturing of different brands like Toyota, Honda, Suzuki etc. in our country this

industry is also creating business of car maintenance and car caring services. That’s why

we have many chances of survival due to this industry of cars manufacturing and

selling. But due to this industries elite thinks these cars of local manufacturing is

normal and common that’s why elite class prefer imported cars which is backbone of

our business because we are dealing specially imported luxury cars who is not deal by

the other local workshops with proper channel and auto parts.

DIVERSITY OF COMPETITORS:

The diversity of the competitors may affect our business because they can get

idea from the nature of our business and they can easily copy. But they are dealing

with different aspects of the car caring and modification. But we are providing

complete car caring platform for our valued customer. Another advantage is that

the elite class people avoid to go in the rush areas of Lahore that’s why the will

prefer AUTO 7 which will be opened soon in the area of our target market which

will be convenient and time saving for them.

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14. MARKETING MIX (4P’S): Product Place (Distribution) Promotion Price

PRODUCT: Our products are based on our four departments paint and body, engine,

wheel and rims, accessories etc. Our products will be according to the cars latest modifications, new technology and new ways to tuned up cars.

Inspiring and greater Looks of car modification. Premier Car Caring products availability. To deliver consistently superior parts and services Our products will change according to the new and latest development in

Performance, Accessories, Services and Modification.

PRICE: Prices will be favorable for our selected Segment. Quality of the products can be compared to the price This price will generate sufficient profit for the company

PLACE: We will place Auto Parts and car modification accessories in our own place

of services. Where customers can easily buy. We will give services of tuning, modification, paint and installation of parts

at same place. For this, we have chosen Lahore DHA. Map of Our Place is shown below;

PROMOTION: We are using Pull Strategy for promotion of our business place. We will do advertising and business promotion using different tools and

media which will be explained further.

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15. COMPITITORS ANALYSIS OF AUTO 7:

Our main competitors in Lahore city are:

Max Power Ahad Motors Auto Care Bilal Ganj Mint Gumni road Neil a Gumbad Hall road Local workshops

MAX POWER:

Max Power is situated in DHA Lahore at Main Boulevard. They are running the

shop of car accessories and body kits.

AHAD MOTORS:

Ahad Motors is situated in Defense main boulevard Lahore. They are running

the shop of car accessories and they also have section of wheel and rims.

AUTO CARE:

Auto Care is situated in Defense main boulevard Lahore. They are running the

shop of car accessories and all decoration works for cars.

BILAL GANJ:

Bilal Ganj is near to “DATA DARBAR” Lahore. This is considers as main market

of the Lahore for all the body parts of cars. All the accessories, engines and body parts

are easily available at that place. These things are not new. This market is known as

theft parts market. They are selling the illegal parts and non custom duties paid things.

MINT GUMNI ROAD:

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All cars accessories and parts are available in this market. It is the main market

of auto parts in Lahore. They really are the strong competitors of our accessories

department and auto parts department. They are also working in car customization

and modifications.

NEIL-A-GUMBAD:

Neil-a-Gumbad is the main market of wheels and rims in Lahore city. This

market is very old and this market is the strong competitor of our wheels and rims

department.

HALL ROAD:

Hall road is the main market of the car stereo systems. This market is selling all

the imported and local music systems of cars. They are the main competitors of our

music accessories department.

LOCAL WORKSHOPS:

Local workshops are the main competitors of our paint and body department

and engine department.

15.1. COMPETITORS ANALYSIS TABLE:

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The following table is generated after a complete research on the AUTO 7’s market competitors which is shown below;

COMPETITORS LOCATION SERVICES/SALES PRICE/RANGE

SIZE

MAX POWERDefense Normal/Car

Modification KitsExpensive Small

Shop

AHAD MOTORSDefense Not Good/Rims &

Wheels And Car Decoration Products

Reasonable Medium Shop

AUTO CAREDefense Time Consuming/Car

AccessoriesReasonable Small

Shop

BILAL GANJ Local Area Normal/Selling Theft

Parts Of All CarsIn Expensive Market

MINT GUMNINear Hall

RoadNormal/Accessories

And Modification Products

Moderate Big Market

NEIL-A-GUM BADLocal Area Good/Wheels And

RimsReasonable Big

Market

HALL ROADHall Road Time Consuming/Car

Stereo SystemsModerate Market

LOCAL WORKSHOPS

Local Areas Normal/Repairs And Maintenance

Reasonable Work Shops

15.2. COMPETITIVE EDGE:

They don’t have space to park the car in their own places. In rushed hours customers didn’t get space to park their cars and they have few workers who make the customers wait hours and hours and there as I am there customer not satisfied with their service. They always have shortage of parts. Our business will give our customer complete platform of complete modifications and tuning service in which all car accessories, wheels, rims, tuning service, paint and body. These are the main things we are providing our customers in a single place but our competitors don’t have all the modification services and things, so there customer has to move ahead. Our competitors have no work shop and proper service they do all the tasks on the road sides. And our customers are car enthusiasts and they are much conscious about their cars and they didn’t come on those places due to bad service and untrained labor. So we are positioning Defense because it is close to our target market and our second option is Gulberg because it is centre of our target areas of Lahore.

15.3. COMPETITIVE SWOT ANALYSIS:

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The SWOT analysis on our competitors is stated below;

STRENGTHS:

Unique designs of modification Use of Latest Technology. Professional works for best

services. Providing all products related to

car at same place. Our competitors have no

parking area they do all the works at road.

Import facility of unique parts for car.

Limited edition versions. Tuning all types of cars

availability. Registered company from SECP

of Pakistan

WEAKNESSES:

New entrance. Not too much financial

resources. Lack of all round business

knowledge Less suppliers 5% of target market

OPPORTUNITIES:

Making all departments related to cars which is not available in targeted areas.

Market development opportunity

No use of advertising instruments by competitors.

THREATS:

Experienced Competitors. Many accessories and parts

shops available in the market Weak logistics and distribution

system Local garages in targeted areas.

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16. HUMAN RESOURCE PLAN OF AUTO 7:

The points which are involve in human resource planning of AUTO 7, consists

of forecasting future needs for employees in different jobs, forecasting the availability

of such employees, and then taking steps to match supply and demand. Facts and

Figure shows this process. Short-range planning (one to two years) to guide immediate

recruiting needs is most common, but mid- and long-range planning (up to ten years)

can also be helpful which will be made in future according to situation of the business.

The following steps of HR plan are elaborated and discussed below;

16.1. RECRUITMENT:

Recruitment is a process of locating, identifying and attracting capable

applicants. Our HR manager is Mr. Sharjeel Sulman, who is very nice and punctual

person, therefore he does not give any Relaxation during the recruitment and he is

very strict in the rules and regulation of our business. The employees will be recruited

with the proper channel. We will first advertise for the vacancies which will be needed

according to the circumstances. That’s why we have also designed the job application

form for the applicants which is attached and shown below;

16.1.1. Job Application:

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AUTO 7 Car Caring CompanyDocument Title: Job Application The answers may me clear, crisp and complete. The information provided

in this form will be treated strictly private and confidential. Name( Capital Letters) N.IC.N.O

AFFIXRECENTPHOTO

1.5*1.5

Father Name: Father Occupation:

Mailing Address: Permanent Address:

Phone: Phone:

Sex: Nationality: Position Applied For:

Date/Place of Birth: Religion:

Marital Status Spouse Name (if applicable)

Spouse Occupation: Minimum acceptable salary:

Where did you learn about the job in this organization:

Salary offered:

Educational Background Year

Grade/Division Institution/University

Do you have you any relative working in this organization

If “Yes, state Name & Relationship:

Employment BackgroundDesignation Areas Year Organization

Problems / challenges faced in your life Your Personality traits

Have you previously applied for job in this organization: If yes indicate date:

16.2. SELECTION:

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In the selection process the screening of the job applicants from the gathered

pool to ensure that the most appropriate candidate will hire with our collaborative

decision. We will select the suitable candidates according to vacancies requirements.

16.2.1. PRE & POST SELECTION:

After recruitment which is gathering the maximum pool of capable candidates.

The steps further involves towards the selection process so the pre and post selection

is the process in which we will interview and the experience of the candidate related to

the job for which he is been interview will be more valued in the selection process. The

least experience and low good background of performing tasks will be rejected in the

pre selection process. The post selection process will involve some practical

performance of his work and the worker will be hired on 2-3 days check performance

of his work if he works well or perform according to our requirements, will be selected

and will be on board on its job.

16.3. TRAINING AND DEVELOPMENT:

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The steps which are involved in training and development are stated below;

ORIENTATION:

The introduction of new employees to their jobs and the organization, Mr.

Sharjeel and Waleed introduces them with the policies and procedures of our business.

In the employee orienatation the employees will completely get to know about their

tasks and duties which they have to perform.

EMPLOYEE TRAINING & DEVELOPMENT:

According to the nature of our business, the training is less because we will hire the mechanics, electricians, and technicians to provide our customer best services we will hire the best employees who are already expert in their field of working which will reduce the cost of training. The training will only required when the change in cars engine or any technology will occur, we will conduct the short training for the mechanics to understand the new technology and further will be decided according to the circumstances.

16.4. PERFORMANCE & COMPENSATION:

In the performance we will completely evaluate the performance of the employees. The performance will be easily measured in our business because we will get feedback from our customers that they are satisfied with the work or not, or their problems are solved or not. We will maintain record of customers and the work which is done by the person. This will easily identify the performance of the employees. We will continuously give feedbacks to our employees so that they will come to know that they are doing their job perfectly or not.

16.4.1. Performance Cycle:

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Assign Tasks/Duties

Customer Feedback Collection

Evalutaion Of Tasks/Duties

Employee Feedback


In the performance cycle the first the employee will be assigned with the tasks or duties according to the customer requirement than the work will be evaluated through customer feedback that the customer was satisfied with the work or not. After the performance will be measured and it will be directly communicate with the employee. The performance cycle is shown below;

16.4.2. PERFORMANCE APPRAISAL AND FEEDBACK:

Performance appraisal - a formal assessment of how well an employee is doing his job. Our HR manager makes a team who works who will evaluate the employee’s

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performance from our four major departments, and gives the feedbacks to the head of the company MR. MAJID. These will be the reasons for appraising performance of AUTO 7 along with appraisal of the employees if they work to satisfy and meets the level of our desired work.

Reasons for Appraising Performance are may be necessary for human resource research efforts, such as validating selection devices or assessing the impact of training programs on the mechanics and technicians performance. Therefore we will be more focus on the continuous increasing the performance of our workers in term to get customer value and retention in return.

Administration – will make decisions about pay raises, promotions, and training

according to the situation to contest the market and to retain the best workers for the benefit of Auto 7.

As it was mentioned above that we will provide feedback to employees/workers on

their current performances to help them improve their present performance and plan future careers by developing and improving themselves.

16.5. COMPENSATION:

The compensation management will work to retain the important employees

by giving them completive salaries according to the market situation. The

compensation package and compensation appraisal will be decided according to the

performance of the employee which will be evaluated with the help of above cycle of

performance evaluation which will be generated on the basis of customer feedback.

16.5.1. COMPENSATION &BENEFITS:

Compensation is the financial remuneration given by the organization to its

employees in exchange for their work. That’s why we have more focused on the

compensation section because it is the ultimate desire of the workers to gain benefits

in return. So AUTO 7 will give best and competitive benefits to the workers/employees

to retain them and to make them perform more and well for our company.

Benefits are other things of value added other than the compensation. Basic

levels of compensation are necessary to provide employees with the means to

maintain a reasonable standard of living. We will provide benefits to the employees by

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giving them different benefits to improve the standard of their living. This is the things

which motivate the employees and make the stronger relation of the employees with

the company.

16.5.2. DETERMINING COMPENSATION LEVEL:

The estimated wage levels of the workers according to the current situation of

market, and the workers which are required to regulate our four major departments

are shown in the table below;

Categories of Workers Department Requirement No. of workers

Standard Wage level

Foreign Auto Mechanic Engine and tuning 1 100,000 to 150,000

Main MechanicsEngine and tuning 2 10,000 to 15,000

Mechanics HelpersEngine and tuning 2 5,000 to 6,000

Electricians Accessories 2 10,000 to 15,000

Dentar /Painter Paint and body 2 15,000 to 20,000

Wheel & Rim installer Wheel and Rim 2 5,000 to 8,000

Compensation Total (Per month) 145,000

As we know we are starting AUTO 7 from the scratch level the more workers

are may required according to the situation and according to the flow of the customers

as their will be no hiring of big posts in the beginning due small start-up capital we will

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manage the big posts of the AUTO 7 by ourselves. Like accessories section selling

control, wheel and rim selling control, and to evaluate the overall performance of the

workers. This will reduce the cost but with the passage of time we will forecast the

future needs for employees in different jobs, forecasting the availability of such

employees, and then taking steps to match supply and demand of employees to

manage the tasks and duties in the Auto 7.

17. REGULATORS AND OTHER STAKE-HOLDERS OF AUTO 7

Regulators:

Primary regulators Secondary regulators

Primary Regulators:

Primary regulators bodies are those regulators that are same for all the business. The SECP of Pakistan is the primary regulator of AUTO 7 for limited liabilities of our company. Our company will be registered from SECP of Pakistan.

Secondary Regulators:

Secondary regulators are those regulators which industry specific. These regulators are responsible for developing rules and regulation in order to maintain best practices in the respective industryThe secondary regulators of our company are:

HR department Banks Suppliers Auto parts traders

Other stake-holders:

A stakeholder is any person or organization, who can be positively or negatively impacted by, or cause an impact on the actions of a company, government, or organization.

Customers Creditors Society

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http://en.wikipedia.org/wiki/Organization

http://en.wikipedia.org/wiki/Person

http://en.wikipedia.org/wiki/Stakeholder


Media General public etc

18. FINANCIAL PLAN OF AUTO 7:

To start any business the very important step is to make the financial budget of

the business. What will be the total budget for the business? After we find out the total

budget of the business we can easily make the price of the Auto parts. What are the

total expenses are made for making the workshop. For the success of our business we

have to make advertisement for the Auto 7 and it will be also included in the budget.

The following contents shows the budget required to build Auto 7.

18.1. BUDGET ESTIMATION:

Total Budget spent for this advertising and business promotion campaign is 2

Million. And the total amount required for workshop is 2.5 - 3 million. Overall amount

needed is 5 million. OR the expenses may increase due to inflation which is increasing

day by day in our country due to poor economic condition.

The budget estimated for the building and workshop is Rs. 2.5 - 3 million

because we are going to take place for AUTO 7 on rent which can be easily

available in our target area and that place will cost us 100,000 Rs. Per month.

The budget estimated for the Advertisements is Rs. 2 million because we are

going to use all the sources of media like above the line and below the line. We

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are also making or website for our customer’s relations. The advertisement will

be used only in the start up business.

18.2. EXPENSES ON BUILDING & WORKSHOP:

The expenses on building and workshop are shown below in the Assets table;

Assets Rs.

Building on Rent 100,000(per month)

Office equipment 300,000

Machinery & Equipments 6,000,000

Auto parts and accessories for our 4 departments 2,000,000

Total 3,000,000

GRAPHICAL REPRESENTATION:

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18.3. EXPENSES ON ADVERTISEMENT:

The expenses on the advertisement which will be done in the startup of the business and other advertisement plan will be made according to the situation and the arrivals of the new things will be shown on the internet website and blog of AUTO 7.

Particulars Rs.62 | P a g e

Building Office Equipment Machinery Parts/Accessories -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

100,000 300,000

600,000

2,000,000

Assets Condition


TV channels 700,000News papers 200,000Advertisement on board/Flexes 1,000,000Internet website 100,000Total 2,000,000


Internet website TV Channels Newspapers Advertisement on Board

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

100,000

700,000

200,000

1,000,000

Expenses on Advertisement

18.4. INCOME STATEMENT (YEAR ENDED):

Net Sales/services 5,000,000Operation expansesAdvertisement (2,000,000)Building Rent (1,200,000)

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Employee/Salaries (1,740,000)Others (200,000)Total expenses (4,140,000)Net Profit Rs.1,360,000


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5,500,000

4,140,000

1,360,000

Net Sales Total Expenses

Net Profit


19. FUTURE GOAL/EXIT STRATEGY:

We will introduce first racing track in the history of Pakistan as our exit and future

strategy when will achieve goals of our modification and car caring business. At this

track we will make members. Different Racing events will be organized at national or

international level there and we will give all the facilities for racing. In this way we will

gain sponsors and revenue as the other sports tracks around the world gain profit. The

basic motive of this track is to avoid illegal car racing on the roads and to gain profit

and the future business plan will be made separately before the execution of this huge

plan. We will give them platform for racing, dragging, drifting etc. The sample track

design which we have made is shown below;

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OUR TRACK DESIGN:

1. VIP citing zone2. Spectators area 3. Mechanical zone4. Security and staff area

20. APPENDICES:

The last part of the business plan was assigned to us that to get the business

approval from the investor in the market and made the investor agreed or to like your

business plan. We finally had the approval letter from the investor in the market and he

has showed his interest in this business. The letter is attached along with the project.

THANK YOU……

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business plan on auto 7

Documents