A

Business plan

On

RAJVEER AUTOMOBILES Pvt. Ltd.

Submitted To:

Prof. V.K. Sapovadia,

Prof. Kishor Barad & Prof. Ritu Sharma

PGDM Trimester II (Batch 2010-12)

Continuous Evaluation in Business Plan

Submitted By:

Mahesh Savaliya (1011012026)

SHANTI BUSINESS SCHOOL,

AHMEDABAD

Executive summary

The Rajveer Automobile Pvt. Ltd. is a start up of the dealership business as a

private limited. Its strategy is to serve the premium class niche market of the industry

with middle class also. The company would be the dealer of the Volkswagen unit of

the Volkswagen Group which is situated in the German. There are many untapped

potential markets within the industry that desires the high quality, stylish and world

class cars. The company is starting business in India it self because of the higher

potential in Indian market caused of the developing country and the population of the

country increases rapidly.

The Indian Automobile Industry overview

In 2009, India became the fourth largest exporter of automobiles in Asia

after Japan, South Korea and Thailand. The Indian car market was the world's ninth

largest in 2008 with an annual production of over 2.3 million units. The amount of

passenger cars sales per month exceeded 100,000 units in February 2009.

After the liberalization of the Indian economy in 1991, the car market in

India has witnessed a tremendous growth due to competition and lesser restrictions.

Tata Motors, Maruti Suzuki and Mahindra and Mahindra are some of the India car

companies which have expanded their domestic and international business. The

government has given up on the restrictions which were levied on the industry.

Company Description:

1. Name: The Rajveer Automobiles Pvt. Ltd.

2. Address: B-79, Surya complexes Corner, Lazamani cross roads, Motavarachha,

surat, Gujarat, India – 394101

3. Contact Number: 0261 2234455/66, 9510959321

4. Web site: www.rajveerautomobiles.com

5. E-mail: rajveer@ automobiles .com

The Rajveer Automobiles Pvt. Ltd. would be the official dealer of the

Volkswagen unit of the Volkswagen Group, located in Germany. The business would

contain selling of new cars and service station of the company. The company would

be purchased cars from Volkswagen Company with some part of cash and left with

the loan amount. The cars would be different in terms of services, promotions than

other dealers.

Form of Ownership:

The business ownership form would be Private Ltd. The inflow of funds

would be from all partners and left from bank loan.

Nature of Business:

The business nature would be of the dealership of the Volkswagen unit of

Volkswagen Group. The business will only sale the car and provides service to

Volkswagen cars.

Vision

To be a leading automobile dealer in Gujarat in the forth coming years in the

car dealership.

Mission

To acquire and empower the consumers’ loyalty towards our company through

quality advice and superior service.

Start up Cost:

Particulars RupeesExpensesDealership Royalty 50000000

legal documentation 23500

Stationery etc. 4500

Consultants 45000

Insurance (office equipment) 100000

Office Equipment 300000

Advertising 2000000

Total Start Up Expenses 52473000

Start Up AssetsLand 23000000

building & furniture 5000000

Cash 200000000

Start-up Inventory 50000000

Total Assets 278000000

Total Start up Expense & Assets 330473000

Objectives of the company:

The objective and goal of the company would be as followings;

To give the superior quality products and services with affordable price.

To achieve 1,000 unit sales of automobiles in year one.

To increase number of dealership outlets in future.

To convert traditional new automobile buyers into conscientious consumers

who are aware of external as well as internal costs associated with automobile

transportation.

To get the highest selling of cars with the trust of customers. And attract

younger generation people who are quality conscious.

Keys to Success:

The keys to success for the Rajveer Automobile are:

Marketing: Dealing with barriers to entry and solving problems with major

advertising and promotion budgets.

Management: Products delivered on time, costs controlled, marketing

budgets managed. There is a fix on growth at the expense of profits.

Excellence: The Company would provide excellent customer service.

Growth: Grow and maintain a referral network of customer

Industry & Market analysis:

The automobile industry today is the most lucrative industry. The Growth

trend of the automobile industry is rapidly growing with around 12-15 % per annum.

This industry contributes 4 % to the GDP in India. The industry is tenth largest in the

world in context of production i.e. approximately 2 million units. So it is high

potential that the scope of Dealers and their requirements would be very high to sell

off such a huge volume of production. The growth rate is predicted to double by 2015.

The current growth rate indicates that by 2012, India will overtake Germany and

Japan in sales volume. The investment scenario of the industry also very high and it is

expected that investment will be of Rs. 30000 crores. The car market is tremendously

changing because of higher demand in the market.

Types of product:

SUV cars:

These are the Sports Utility Vehicles which are Tiguan, Touareg etc. These

cars are selling at 20, 00,000 Lakhs rupees or more.

Small cars:

These cars are small in terms of size, but price of such are high also. For ex.

the polo is of rupees 4, 50,000 and the beetle is of rupees 21, 00,000.

Sedan cars:

These elegant models from the Volkswagen stable are available in a price

range of around twenty Lakhs to twenty seven Lakhs. The example of such

like Jetta sedan, beetle, Vento, Volkswagen GTI, Passat, etc.

Luxury cars:

These cars are very costly by nature of price like 75, 00,000 rupees or above it,

for ex. Phaeton. Such cars are high quality featured.

Competitors:

1. Navjivan Hyundai Pvt. Ltd.

2. Landmark Honda Pvt. Ltd.

3. King Ford Automobiles

4. Katariya Automobiles Pvt. Ltd.

5. Veerwheels Pvt. Ltd.

6. Mercedes Benz Showroom

7. Nanavati Automobiles

8. Patel Automobiles

9. Kiran Motors

10. Second hand car fairs

Dealership Players in India:

1. Audi Car Dealers

2. BMW Car Dealers

3. Chevrolet Car Dealers

4. Fiat Car Dealers

5. Hindustan Motors Car Dealers

6. Honda Car Dealers

7. Hyundai Car Dealers

8. Mahindra Car Dealers

9. Maruti Car Dealers

10. Mercedes-Benz Car Dealers

11. Nissan Car Dealers

12. Skoda Car Dealers

13. Tata Car Dealers

14. Toyota Car Dealers

Sales forecast:

The sales forecast of the Rajveer Automobile would be as followings;

Sales Forecast( in units)

Sales Year 1 Year 2 Year 3

SUVs 80 110 150

Small cars 210 250 300

Sedan cars 150 200 270

Luxury Cars 50 70 120

Total Sales 490 630 840

Marketing Strategies of Rajveer Automobiles:

Advertising is one of the most common ways to make car buyer or car

enthusiast aware of the new car with special price. The company will organize

campaigns, agent, and road shows. The videos are expected to be launched on

Facebook, YouTube, and on the car company’s website as well. Other important

marketing strategies would be the packaging, innovations, and quality control.

Another more important way of advertising is to create an image or brand image by

giving continuous advertise on print media, television, internet, radio, yellow pages,

mail marketing.

Promotion Strategies of Rajveer Automobiles:

The Rajveer Automobile will launch the promotional offer like gifts and

festival offers, discounting offers, participation in trade fairs and exhibitions,

sponsorship, special credit, extended services and warranty of the cars. The

company’s representatives handed out T-shirts and caps to the people etc.

Customer segment

The customers of the company would be divided into various segments as per

the types of cars. It is based on SUVs, Small cars, sedan cars and luxury cars.

SUV cars:

The customers of such would be younger generation within 20 to 35 year age

peoples.

Small cars:

The customers of the small cars would be professional peoples and also middle

class people who are price conscious.

Sedan cars:

The customers of the sedan cars would be the people who are more space

conscious and often travelling long run.

Luxury cars:

The customers of the luxury cars would be the business class peoples and

executives, higher class people.