imaginary product report road runner service shop

MARKETING MANAGEMENT

Final Project

“Road Runner”

Submitted to: Ms. Farah Sajid

Submitted by: Notan Kumar KhatriAli Asgher ParekhRozeena Shaheen

Course: Marketing Management


ACKNOWLEDGEMENTS

We take this opportunity to thank our instructor, Ms. Farah Sajid for his guidance on the marketing concepts. It was his motivation that enabled us to undertake Marketing Management report on a very new concept. Our learning during the semester helped us greatly in working on this report.

We sincerely hope that our report will be worthy to be presented to any company in the automobile industry. It is our wish that the idea of Mobile Workshop is adopted by the automobile industry and the general public. Due to the convenience that comes with it, Mobile Workshop is not an alien concept in developed countries and now its time that it should be implemented in our country too.


INTRODUCTION

ROAD RUNNERHead Office – Korangi Industrial Area

(021) 111 – 111 – 111www.road-runner.pk

Co - Owners: Mr. Notan Kumar KhatriMr. Ali Asgher ParekhMs. Rozeena Shaheen

Description of Business: Mobile workshop is roadside car repair service that provides professional mechanics at the required spot.

Imagine an executive driving to work in the rush hours of the morning. Suddenly his car jolts and comes to a standstill. He looks at the car display and realizes there is no petrol in the tank. He starts panicking; the nearest petrol station is another 15 minutes drive. A journey to and fro would mean passage of another 30 - 40 minutes and he doesn’t have that much time, he is getting late to work. He wishes he could depute somebody to his car and hire a cab to work…

Imagine a housewife driving back to home in the afternoon after picking her kids from school. All of a sudden the front right tire of the car punctures, probably due to some sharp object on the road. The lady takes the car to the side of the road but has no idea what to do next. She cannot change tires and is scared to ask strangers (passer-by) for help. It would be ideal if someone reliable could come to her help…

Imagine a family travelling back from a wedding at 1:00 am. For some reason their car stops in the middle of the road. The male member gets out, opens the bonnet and tries to tamper a few wires, but to no avail. He checks the petrol tank indicator, that’s full too. He cannot figure out the fault and starts getting worried. Standing, with his family, in the middle of the road at 1:00 am in the night is not an ideal situation. It’s getting dangerous every minute…

http://www.road-runner.pk/


MARKETING MANAGEMENT CONCEPT – NATURE OF BUSINESS

It could be very convenient for all three people, stuck in above mentioned situations, if they could call someone reliable for help in the hour of need. If the help reached them within shortest possible time, took care of the problem with their car and arranged for their safe transport to their destination, they could have a peace of mind.

It would be convenient and time saving for the executive if petrol was delivered to his car rather than him searching for it.

It would be convenient for the housewife if reliable helpers reached her car and repaired the flat tire while she became a spectator.

It would be safe and convenient for the family, stuck in the middle of no where at 1:00 am, if professional mechanics could reach their car, sort out the problem or tow the car to a workshop and arrange for the family’s safe transport to their home.

Mobile Workshop is one such idea of a service offered to the community (especially drivers) in the hour of need. It is a service that offers professional car mechanics at your doorstep or at the spot they are required. Roadside assistance to customers would include towing of car, changing of flat tires, helping in lockouts, delivering petrol and other car fluids to the spot, charging/changing weak car batteries, arranging for safe transport of the customer to his destination, etc.

It is car service that consists of professionals and is mobile, reaches the customer where required.

Mobile workshop is a concept that can change the way people look at car services. The image of minor car repairs could shift from a tedious and dangerous job to that of a safe service.

Financing: Initial financing needed to start this project is RS-6,000,000/ which will be contributed by the partners and a requested loan from United Bank Limited. This cost will easily cover office space, equipment and supplies, advertising and selling costs.

This report is confidential and is the property of the co-owners listed above. It is intended only for use by the persons to whom it is transmitted and any reproduction or divulgence of any of its contents without the prior written consent is prohibited.


EXECUTIVE SUMMARY

At present, in our country, Mobile workshop is merely a concept. No firms are providing the true service and not many customers are aware of possibility of such a service. Coming up with a such service is a challenge for the company that enters the field.

Mobile workshop is roadside car repair service that provides professional mechanics at the required spot. There is a potential, for such a service, in the market as it satisfies the needs of time saving and efficiency required by the target market. The target market for Road-Runner is business executives and ladies of upper and upper middle class who find minor car repairs a difficult task. Such people desire safety and convenience in most of their jobs and Road-Runner provides just that with roadside car repair.

As stated earlier, mobile workshop is a new concept in our country, there is no competition in the market for Road-Runner. The company can therefore position itself with respect to quality desired by its target market rather than positioning against competitors.

The marketing plan has been defined including the details of the service, its price, promotion and distribution. Distribution is a very challenging task as it involves providing the service where the customer is anywhere inside Karachi (excluding some area). Besides this we have also discussed the promotional techniques we can use to effectively market the service.

We have also defined the marketing objectives which include positioning Road-Runner as a high quality and convenient service. Financial plan, sales and revenue targets have also been defined.

Finally we give an outlook of what can be done in the future and how we expect to achieve the current objectives.


INDUSTRY ANALYSIS

FUTURE OUTLOOK AND TRENDS

There are times when people face desperate situations with their cars broken down in the middle of nowhere or at a wrong time. Business executives and ladies find it even harder to rectify the fault themselves; since it can be dangerous as well as it can leave one all greased! Mobile workshop could give people the safety and convenience of roadside assistance. This is a major factor why we selected mobile workshop as our entrepreneurship project.

Although mobile workshop is a new concept in our country, but it is widely practiced in the developed countries. The demand creating factor for mobile workshop is the danger that is present with trying to repair the car personally. Such naïve attempts at car minor repairs can result in major damages. Conscious about their safety, people in developed countries call for professional help rather than experimenting on their cars. If this safety concept is understood by our people, mobile workshop could soon become the need of the hour.

The concept of mobile workshop, if properly conceived and executed, could prove a good business for any established auto dealer/service centre. We want to make our effort a launching pad for big firms to enter the field.


ENVIRONMENTAL ANALYSIS

Demographics:There are about 1.3 million vehicles in Karachi, a third of total vehicles in Pakistan, with the number increasing with the passage of each day.

Last year, about 65,000 vehicles had been registered in Karachi, which shows an increase of 175 vehicles per day.

It is expected that due to low interest rates of the banks and leasing companies, the rate of purchase of vehicles will go even higher.

It is expected that more than 100,000 vehicles would be registered in Karachi by the end of this year.

The target population consists of people of all ages who drive cars, but more specifically the women who drive cars, the grading population of over 55s and the businessmen for whom time and convenience is everything.

Economic condition:Since 1999, Pakistan’s economic indicators have shown positive signs. In our target market on Karachi, economic conditions are decent. Most of the country’s commercial activity takes place here and will continue to take place until an alternative like Gawadar is developed. Thus the economic condition can be classified as stable.

COMPETITOR ANALYSIS

Mobile workshop is a concept in our country, there is no competition in the market for Road-Runner. The company can therefore position itself with respect to quality desired by its target market rather than positioning against competitors.


MISSION AND OBJECTIVES

Road-Runner is a roadside car service provider/mobile workshop. Constituting of a group of professional mechanics, Road-Runner has an aim to provide its customers safety and convenience with roadside car repairs. Working with cars requires extreme care and we want to give our customers the satisfaction that their car is being handled by professionals. With its quality services, Road-Runner has a goal to create awareness in Pakistan about benefits of a mobile workshop. Ultimately our objective is to pave way for successful launch of competent mobile workshop services in Pakistan.


SWOT ANALYSIS

STRENGTHS

No existing similar service in the industry Service to the people on the spot Handling car for the people that can create difficulty, if handled personally Offering a 24 hour facility, that permanent workshops do not Offering variety of jobs: towing, repairing of minor causes of car breakdown There is huge potential in market for “mobile workshop”, because of the ease it

will cause for people

WEAKNESSES

Not covering the entire city – creating operating radius Not having own permanent workshop – unable to give people complete car repair

service due to limited capital Having limited resources to create awareness for “mobile workshop” concept

OPPORTUNITIES

An untapped market for “mobile workshops” Being the pioneers, innovators and leaders in the industry Entering the industry first, we would be in a position to expand fast Possibility of being associated with known brands such as Shell, Caltex, etc. and

engaging in joint ventures

THREATS

Risk of initial investment – can create problem(s) if not covered over considerable time span

Risk of operating costs increasing exponentially ignorant customers may call for major services in case of minor faults High number of calls at a time asking for services in the same area Unable to meet customer expectations from “mobile workshop” Big, known brands such as Honda, Toyota, etc., can enter the industry and take

away major share given their customer base


DSCRIPTION OF VENTURE

PRODUCT

Road-Runner is a membership based service where members join the roadside assistance program by paying a membership fee. Once a member, a customer can avail any of the following services:

Punctures / tire replacement Towing facility Flat battery problems Oil and fluid Delivery Service Fuel Delivery Service Lockout rescue Taxi hire (on customer’s expense) Workshop services (through third party)

Execution of the service would be as follows. Customers would call Road-Runner for assistance. The call would be received at the call centre (at the head office) where the customer gives his password (to prevent hoax calls) and specifies his location and problem. The call centre then radios the various service vehicles, parked around the city. The service vehicle closest to the customer would respond back to the call centre acknowledging the message. The call centre then calls back the customer (if he/she has a contact number) giving him confirmation of the vehicle being dispatched to solve his/her problem. The response time would be 15-20 minutes accept for few areas where it might take longer, such as hawks bay, baldia town, orange town, landhi, malir, gulshan-e-maymar & surjani town.


Once there, our serviceman would determine the problem faced by the customer. There are two possible actions the serviceman shall take. In case of minor problems, servicemen will take care of problems then and there, e.g. minor electrical repairs that can be conducted easily and quickly on the roadside. Similarly cases where the customer may have run out of fuel or his radiator needs water etc. the serviceman will deal with these problems by supplying the necessary fluids from the service vehicle itself.

In case of major repairs being needed which can only be done at a workshop then the serviceman has two options. He would deliver the vehicle to the workshop with whom Road-Runner will have contract in the area, where the customer’s vehicle would be repaired and then delivered back to the customer’s residence. Road-Runner will charge the customer for the actual cost of repairs since they are not covered in the membership itself.

Another option is this that the vehicle would be delivered to a workshop of customer’s choice, where he can collect the car himself afterwards. In such a case Road-Runner is not responsible for the car once it has delivered the vehicle to the workshop.

More details of the other different services offered by Road-Runner are as under:

Punctures / tire replacement: It is a very common problem faced by many people in our city everyday. Many people including business executives, housewives, teenagers, etc. do not know or do not like changing punctured tires. Further, badly fitted tires can be dangerous, even proving fatal. Road-Runner will be at its members’ service in case they require a tire change.

Towing: For various reasons, cars can come to a standstill in the middle of roads and may prove a hassle for the drivers. This can become a major problem for the car drivers who face problems getting the stalled car to the desired location. In such cases, Road-Runner shall tow their customers’ cars to the workshop or any other place without any problem to the customer.

Flat battery problems: This minor problem can actually be one of the causes to stall the car. Leaking batteries can explode or the battery may completely discharge for various reasons and will require recharging. Road-Runner will provide the same service to its customers at their residence or at roadside, wherever required.

Oil, fuel and fluid Delivery Service: People can be careless about the oil and fuel in their cars which can cause minor breakdowns or stalled cars. Road-Runner will provide its customers with oil and / or fuel in case of immediate requirement.

Lockout rescue: Carelessness can result in car lockouts; keys remaining in the locked car. In such cases any layman attempts, e.g. using rods, wires, hangers, etc. to open the car can cause serious damage(s) to the car. Road-Runner will provide its customers professional help in such cases, dealing with lockouts without any damage(s) to the cars.

Car hire (on customer’s expense): People can face inconvenience when they have to meet their schedules and their cars come to a standstill, leaving them abandoned. Road-Runner will provide taxi hire, on customer’s expense, to ensure their smooth working.


Workshop services (through third party): Road-Runner will have contracts with car workshops in some area of Karachi city. In case the customers’ cars need major repair, Road-Runner will give them an option of getting it done at their workshops. Road-Runner will be responsible of taking the car to the workshop and delivering it back to the customer. The customer will not be charged for the transportation to or from the workshop, but actual cost(s) of the repair will be charged.

SERVICE

The name of the company that shall provide the service is Road-Runner. Road-Runner will be based initially in Karachi and will serve the Karachi market only. It is basically a lead project to judge the market response to such a service. Based on the initial sales, the project can be expanded to cover other cities in Pakistan.

Brand name and reasoning

Basically we are providing the services and our service name is Road Runner and the reason of choosing the name Road Runner is that because we are providing the auto repair services for whom are facing the problems on the road or elsewhere.

Tag line

The tag line for our Road Runner Service is that you call we fix.


MARKET SEGMENTATION

Mobile workshop is a service for people who prefer convenience and safety over money. It is a service that will appeal to the market segment that would rather pay for it, than do the potentially dangerous job of repairing minor car faults themselves. It is a service for the market segment that would rather have the convenience of car mechanics at their doorsteps than having to go to one. Even those who do not like to be seen doing things like changing flat tires or getting their clothes dirty working with grease, the status conscious people among the population, form part of our target market.

Keeping in view the characteristics of our target market, we can identify the market segment.

Geographic Segmentation: City: KarachiAreas: Posh/well to do societies

Demographic Segmentation: Income: High income individuals and householdsGender: Male, FemaleSocial class: Upper and upper middle classEducation: well educatedOccupation: Business Executives and Housewives

Psychographic:Personality trait: Preferring convenience / desiring safety.

Behavioral: Benefits Desired: Efficiency, time saving, convenience


.

TARGET MARKET

Educated, high income household ladies living in well to do societies of Karachi and desiring convenience and safety.Women drivers who are increasing day by day in Karachi are also a big market for Road-Runner. Women normally do not like messy jobs like changing tires or examining what is under their car’s bonnet. Our target market will be women who would rather dial a number and have assistance provided to them than to ask strangers/passers-by for help.

Therefore, people living in posh localities/societies, like Defence, Clifton, P.E.C.H.S., K.D.A., Gulsah-e-Iqbal, Bahadurabad, etc. will be the target market.

Educated, high income earning business executives living in well to do societies of Karachi and desiring convenience and safety. The emphasis is on executives who are safety conscious and prefer convenience over cost. Further, executives who fear sub standard work and time wastage in sending their cars to workshops, and will pay for on spot car repair will be our target market.

TARGET MARKET STRATEGY

Having analyzed the main market segments, we can proceed to the selection of target market strategy. Road-Runner will adopt a single segment strategy or concentration strategy to design its marketing mix for its target market.

Road-Runner will look to create a niche market, at least initially. We would like to start with a selected market and completely fulfil the customer expectations. Our selection of market will also be based on the fact that we would like to cater people who are ready to pay the money to get Road-Runner services

Positioning strategies

Road-Runner as a high quality and convenient service.


MARKETING PLAN (4P’s)

PRICING

Price has gained immense importance for Road-Runner due to its limited resources. A perfect figure has to be struck that enables Road-Runner to carry its operations smoothly.

A suitable cost for membership would be around Rs.500 per month. We want to snag customers and so we won’t simply offer a monthly membership. Instead we shall give yearly membership fees of 6000 Rupees. This will create an association between customer and Road-Runner for at least one year during which we can give a service the customer can greatly value.

Another source of revenue that has to have a price fixed is that of cost of additional services. The concept here is that the membership covers a limited array of services, additional services shall cost extra to a member. A suitable cost for each service is about 100 Rupees plus additional for spare parts and fluids. Additional towing miles will cost about 10 rupees per kilometre.

So the final price given to the customer will be as follows:

The one year membership costs 6000 Rupees and covers:Towing service1

Oil and Fluid Delivery2

Flat tire replacementFuel Delivery2

LockoutWorkshop services3

Car hire services4

175 kilometers (additional mileage costs Rs10 /- per km)2Customer bears costs of fuel, oil and fluids3Workshop can be of customer’s choice or one recommended by Road-Runner. Customer bears workshop fees4Car hire arranged on customer’s expense

There is no limit for calls every month. The customer can make as many calls as he wants to. This way our service will turn out to be more attractive.

PLACEMENT / DISTRIBUTION


Distribution Channel and Role of Middlemen/IntermediariesRoad-Runner is a service oriented company. This fact is a major determinant of its distribution channel, i.e.

Direct Channel Producer to ConsumerFurther, since any delivery of product to the customer, e.g. oil, petrol, etc. will be more related to the services offered by the company, there are no middlemen or intermediaries involved in distribution of Road-Runner products and services.

Scope/Range of Distribution

The distribution of the service would be restricted within the limits of Karachi city. Based on the target market, few areas of interest have been selected. Road-Runner will offer its membership in the following areas, to start with:

Defence, Clifton, Bahadurabad, PECHS, KDA, Gulshan –e- Iqbal, and N.Naziamabad

However the services would be provided throughout Karachi excluding only a few areas.

Location of Office and Servicemen

The head office of the company will be situated in KIA (Korangi Industrial Area). Equipped with a call centre, the office will be the focal point of the company’s operations. The reason for selecting KIA, as our central business office and call centre, is its prime location. It is close to our target market of Defence, Clifton and also within fast and easy reach from Sharah-e-Fasal, PECHS, etc.

The servicemen and service vehicles of Road-Runner will be located inside the city of Karachi at different locations. The areas and vehicles distribution are:Sakhi Hasan – 2 bikesPECHS – 2 bikesGulshan – e – Iqbal with airport – 1 bike & 1 carLasbella – 2 bikesPlaza – 2 bikesSchon Circle – 1 carDefence – 1 carShershah – 1 carKorangi – 1 bike


PROMOTION

For any promotional campaign to be successful, its target market has to be clearly defined. The target market for Road-Runner will be people who desire convenience and are safety conscious. These would be the people living in areas such as Clifton, Defence, Bahadurabad, Gulshan, K.D.A. etc. where the major population consists of well-to-do educated people who are aware of safety issues.

The company promotional objectives will initially be creating awareness and knowledge amongst the masses about the availability of Road-Runner services. Due to absence of competition in the market for Road-Runner, the promotional objectives will focus on inducing the customer to purchase of the services being offered.

Initially concentrating on the information/informing aspect of promotion and gaining customer confidence, Road-Runner will carry out a related promotional campaign.

The target market will be informed about the safety and convenience factors related to car repairing/maintenance. Points, as mentioned below, will be focused for safety issues.

People get killed changing flat tires, especially on main roads Badly fitted tires can be dangerous Leaking batteries can explode Nighttime breakdowns can be dangerous

The other aspect of promotion campaign, convenience, can be highlighted especially to business executives and women, who find tasks, such as changing car tires a very cumbersome process. Rather than ask passersby for help they can be given the ease of having someone do it for them at a simple phone call. Other than this it can also be highlighted how business executives, housewives, etc. can avoid getting themselves and their clothes dirty while changing tires or working with oils and other car fluids. They will also be able to have their faulty cars collected from their homes or from roadsides; taken to a workshop, and then delivered back, all while they are at their place of work or house.

By highlighting the convenience and safety issues to the audience, Road-Runner can penetrate into the market relatively easily. Also by promoting the company as a thorough professional, the customer trust can be won.

Personal Selling

Telemarketing: marketing over the phone, will be utilized

Sales Promotion

Following promotional techniques can be introduced to attract potential customers for the service:


Lucky draws: Customers get free car washes, free oil changes, one free car service, etc.

Membership Incentive: Get one membership, have the rest of your cars covered for lower price

Recommendation Incentive: Recommend membership to your kin(s) and get increase in services

Membership Souvenir: A gift box with a keychain, pen, membership card, brochures with instructions and Road-Runner car stickers will be given to the customer, creating a sense of association with the service.

Advertising

Television: Since the service is initially based in Karachi, that too in selected areas, advertising on television will not prove effective. The target market is too concentrated and its television preferences are diversified. The “per viewer cost” may be too high. So, television would not be used as a promotional media.

Direct Mail: Besides mailing the members of various clubs named Karachi Club (7000 members) and Creek Club (7000 members) Road-Runner will also send promotional letters to the ‘Citi Bank’ customers located in Defense, Clifton, Bahadurabad & KDA through a courier service named ‘Shaheen Courier Services’. It is the official courier service for ‘Citi Bank’ postages. What it will do is deliver our promotional letter to the ‘Citi Bank’ customers with their monthly bank statements at a minimal cost of Rs. 5 per letter. The number of Citi Bank customers in the mentioned areas is around 6000. Mails will include company information and services and benefits offered.

Interactive Media: Marketing campaign will be given an advantage by creating a Road-Runner’s website. Detailed information regarding the service, its pricing and other fundamental details would be offered on the web.

Radio: It is very feasible for small scale companies or newly formed companies to use radio as an advertising medium. For Road-Runner, promotion on the radio would be started in the launching stage of the services. For the radio advertisement we have selected FM 89. 2 ads of 30 seconds each would be played everyday for 15 days consecutively. The timings are from 08:00 to 11:30 and from 05:00 to 08:00. The expense of radio ad would be Rs. 1400 / day. The total cost for 15 days would be Rs. 11000.

Newspapers and Magazines: Most suitable medium for Road-Runner would be the print media and more specifically the print media read by the target audience including DAWN, SHE, Visage, etc. Road-Runner would give an ad in ‘DAWN’ on the 4th page. The ad would be of one fourth size of the page. It will cost us Rs. 1,12,500. An ad would also be given in a leading female magazine named ‘SHE’. The ad would be placed on casual page. It would be of full page size. The cost would be Rs. 7000.


Stickers: Painting Road-Runner message on company vehicles and a sticker on member’s vehicles would prove to be a cheap but an effective way of advertising.

Advertisement on Signals: Road-Runner will advertise itself on ‘Computerized Screen Display’ at the signal before the US embassy for one month. The reason for selecting the place is its accessibility to the service’s target market. The service would be rendered from ‘FNR Silicon Services’. It will cost us Rs. 12500 / month.

PRODUCT FORECAST AND CONTROL

The market is in need of a mobile workshop. In the city of Karachi, everyday there are number of people who run into problems with their cars but find no professional assistance on the spot.

Although mobile workshop is still an alien concept in our country, there is a need in the market for the service. Creating proper awareness about the services and its benefits is the key for any firm interested in entering the field.

It has been seen that people pay high amounts for towing their vehicles and arranging a mechanic to check the problem in their vehicles if it comes to standstill. This shows that the need exists in the market and people are ready to pay for satisfying the need.

Control - Mobile workshop is a new concept in our country. Although there have been temporary efforts by certain mechanics to offer mobile workshop facilities, but they have been limited to certain times only, e.g. rainy season, etc. There has been no concrete effort by any firm, car dealer or auto mechanic to venture into this field. Although it may prove a profitable business, mobile workshop does not attract a lot of investors due to high uncertainty about the success of the concept.

Having selected mobile workshop as our marketing project, we analyzed that proper control and monitoring measures will be very important to make the idea successful. Since the idea is new, the initial costs can run very high. Provision of workforce, office, communication equipments, workshop tools, limited stock of car fluids, towing vehicle, delivery vans/bikes, etc. requires proper planning for funds. Further, promotional campaign also requires funds. If the initial investments are not controlled from the beginning, they may prove fatal for the success of the business.

Provision of funds, in our case, will be investments by partners, leasing from financial institution, membership fees and service charges from customers and commission from workshops.

The breakeven point should be reached in minimum time to strengthen business operations. The objective of initial expenditure on promotion is to win maximum customers in minimum time frame. If appropriate amounts are raised from membership fees the project can take off well.


But it has to be kept in mind that mobile workshop is a new concept. And like all new concepts it shall take time for people to understand and adapt to it. Further, since mobile workshop is a distinctive kind of a service, the adaptation to the idea will be a slow process. People will realize the convenience of mobile workshop when they actually face a problem with their car and require immediate help. Therefore the expectations for the project success should be reasonable. It should be given a little time before deciding on its fate.


OFFICE EQUIPMENT AND PERSONNEL

4 Operators1 Peon

28 Mechanics8 Drivers Hi-Roof Car

2 Drivers Truck10 Motor Bikes Petrol4 Hi Roof Cars CNG1 Towing Truck Diesel

Large vehicle (fitted with towing equipment)Hi Roof Vehicles

Servicemen motorcycles (70cc)PABX & Related instruments

Office EquipmentsToolkits

UAN NumberWireless Network Frequency

Wireless Mobile UnitsWireless Receiver


BACKGROUND OF THE ENTREPRENEURS

The company would be initiated by 4 partners with different investment percentages. The profit or loss shall be shared by the partners according to the percentage of capital investment.

Partner’s Contributions:→ Ms. Seher Salim 35%→ Ms. Shireen Mansoor 35%→ Ms. Hira Sikander 30%

All the partners are currently studying and starting their careers as entrepreneurs with this project.

PRODUCTION PLAN

The plan would be put into action in the following manner:

1. Setting up of head officeThis would involve the setting up of a proper shed/warehouse type structure to house our vehicles as well as the head office located on part of the piece of land.

2. Purchase of EquipmentThe purchase of equipments corresponds with the setting up of the head office. Both will take time. The office has to be set up properly while the equipment takes time to arrive once it has been ordered.

3. Set up infrastructureCall centre is set up, signage placed, and the office setup completed.

4. Staff hiringOnce the infrastructure is in place, staffs are hired. Staff will include 4 operators, 1 peon, 28 mechanics, 8 hi-roof drivers and 2 truck drivers.

5. Launch Promotional CampaignThe promotional campaign begins with a simple print ad in the papers or magazines and is complemented by the other forms of ads specified in the promotional section of the marketing mix.

6. Begin SalesHere the actual sales begin the very day the first ad appears in the papers.

The partners will be responsible for conducting all the activities in initiation of the business. They would be the managers of the business too.


OPERATIONAL PLAN

The operational plan would go the following way:

Customer complaint Reaching the customer Availability of Service Identifying the problem Problem Resolved

Reaching the Customers

The call centre will receive customer complaints and divert its servicemen to location of the customer. Mobile communication will play a vital role between the call centre and service vehicles & servicemen.

Availability of Road-Runner Service

The Road-Runner services will be available to its customers 24 hours a day. The call centre and servicemen will promptly respond to the customer’s requirement at all times.

Arrangement with Workshops

Road-Runner will have contacts with different car workshops in different localities. It will be up to customer’s discretion if he/she wants the car to be towed and repaired at Road-Runner’s contractual workshop or at their own preferred workshop. The service will be charged accordingly.

Details of Road-Runner’s contractual workshops are:Sakhi Hasan – Kausar Motors (Block A, N. Nazimabad)PECHS - Danish Motors (Khalid Bin Waleed Road)Gulshan – e – Iqbal with Airport – Hyundai Apollo MotorsLasbella - Danish Motors (Khalid Bin Waleed Road)Plaza – Adnan MotorsSchon Circle – Gul Ahmed MotorsDefense - Gul Ahmed Motors

Road-Runner’s contractual workshops would pay 10% commission to Road-Runner on repairing of each vehicle which comes to workshops through Road-Runner.


ORGANIZATIONAL PLAN

FORM OF OWNERSHIP

Road-Runner will be established as a ‘partnership’ business. There will be three partners with equal ownerships. There will be a horizontal organizational structure.

MANAGEMENT TEAM BACKGROUND

Seher Salim was born in Riyadh, Saudi Arabia, and is an under-graduate from Iqra University with a Bachelors Degree in Advertising. She has the capabilities of managing and organizing, has good PR skills, creative, risk taker, team leader and a team player and is seeking new endeavours in a start up venture.

Shireen Mansoor was born in Karachi, Pakistan, and is an under-graduate from Iqra University with a Bachelors Degree in Advertising. She has the capabilities of forecasting the upcoming trends, good PR skills, Creative, Habit of seeking new information from various sources.

Hira Sikander was born in Karachi, Pakistan and is an under-graduate from Iqra University with a Bachelors Degree in Business Administration. She is creative and capable enough to handle accounts.


ROLES AND RESPONSIBILITIES OF MEMBERS OF ORGANIZATION

Seher Salim will oversee the daily operations of the business. This includes the hiring and firing of employees, monitoring the daily orders, supervising the staff.

Shireen Mansoor will be responsible for creating promotional activities and establishing effective strategies for creating awareness of the business. She will be responsible for the design and distribution of all direct marketing materials and handling all purchasing for the orders.

Hira Sikander will be responsible for the finance, accounting, billing, taxes and any other matters related to budgets.


FINANCIAL PLAN

Our foremost financial objective would be to cover our initial investment costs. We will finance this from various sources. The basic source of finance would be investments by the partners. The other source would be from banks or leasing firms in form of leasing of our service vehicles.

The other objective would be to receive good return on investments in term of considerable amount of profit. We might not be able to receive profits initially, but as soon as the awareness grows there is a huge scope for earning profits.

The third objective would be to save enough money so that new value added services and expansion in the business market can be financed.

INVESTMENTS

Contribution by Partners

Particulars Amount Ms. Seher Salim (35%) 1,398,600Ms. Shireen Mansoor (35%) 1,398,600Ms. Hira Sikander (30%) 1,198,800

Total 3,996,000

Purchase of Assets & Initial Expenses

Particulars Qty Rate(PKR) Total(PKR)Large vehicle (fitted with towing equipment) 1 750,000 750,000Hi Roof Vehicles 4 450,000 1,800,000Servicemen motorcycles (70cc) 10 40,000 400,000PABX & Related instruments 1 40,000 40,000Office Equipments 150,000Pre- operating expenses 300,000Toolkits 15 20,000 300,000UAN Number 1 22,000 22,000Wireless Network Frequency 1 50,000 50,000Wireless Mobile Units 15 10,000 150,000Wireless Receiver 1 34,000 34,000Total 3,996,000

The UAN number (Cascaded Rebate based Tariff Package) would be purchased from PTCL along with 5 phone lines. The UAN package cost is Rs. 22,000 with a monthly rent of Rs. 1000. Each phone line would cost another Rs. 5000.


Initially we would make 20,000 prints of brochures which would cost us around Rs. 30,000.this cost is included in pre-operating expenses.

The frequency which would be purchased for wireless network would cost us Rs. 50,000. It would be purchased from ‘Pakistan Broadcasting Ltd’. Wireless equipments would cost us around Rs. 1,20,000 for 15 Mobile Units and Rs. 34,000 for Receiver. An amount of Rs. 30,000 would be charged yearly as rent for the frequency services we would avail.

COST STRUCTURE

Fixed CostParticulars Amount Salaries 750,000Monthly Rental- Wireless network 30,000Monthly Rental- UAN 12,000Stationary 48,000Miscellaneous Expenses 320,000Utility Expenses 126,000Advertising 260,000Total Fixed Costs 1,546,000

Variable CostParticulars Amount Membership cards 50,000Vehicle Maintenance 30,000Fuel 22,350Total Variable Costs 120,350

Advertisement details

Mode Duration Rate (Rs) TotalDirect Mail (Karachi Club) (7000 Members)

1 Time Lump Sum 10000

Direct Mail (Creek Club) (6000 Members)

1 Time 5 / membership 30000

Direct Mail (Citi Bank) (6000 Members)

1 Time 5 / membership 30000

Road- Runner’s Website 1 year 7000 7000Radio FM 89 15 Days 700 / 30 seconds 11000DAWN Newspaper 1 Time 100,000 100000SHE Magazine 1 Time 5000 / Page 50000Stickers (2500 approx/month) Ongoing 1 Rs. / sticker

approx.30000(yearly)

Flyer (20,000) 1 Time 1.5 / flyer 30,000Total 298,000


Fuel Break-up

Vehicle Type

Fuel Type Quantity Per KM Rate (Rs)

Run of 1 Vehicle / Day (km)

Fuel cost of all vehicles (Rs) / Day

Motor Bikes

Petrol 10 0.81 35 285

Hi Roof Cars

CNG 4 3 30 360

Towing Truck

Diesel 1 100

Total fuel costs per month 22,350

Salaries Break-up

Job Position Quantity Rate / Person TotalOperator 4 8,000 32,000Peon 1 3000 3000Mechanic 15 10,000 150,000Driver Hi-Roof Car 8 5,000 40,000Driver Truck 2 5,500 11,000Total Salary Expense / Month 236,000


FINANCIAL STATEMENTS

ROAD RUNNERP R O J E C T E D I N C O M E S T A T E M E N T

For the year end December 31, 2008-09-10

2008 2009 2010

Sales 9,000,000 10,800,000

12,420,000

Less: Cost of sales 1,800,000 2,160,000

2,354,400

Gross profit 7,200,000 8,640,000

10,065,600

Expenses

Administrative expenses 1,350,000 1,620,000

1,733,400

Salaries and wages 2,832,000 2,973,600

3,241,224

Maintenance expense 900,000 1,080,000

1,155,600

Depreciation Charges 325,000 298,750

274,813

Advertising expense 298,000 318,860

347,557

Utilities Expense 126,000 126,000

137,340

Others 320,000 342,400

366,368

6,151,000 6,759,610

7,256,302

Profit for the year 1,049,000 1,880,390

2,809,298


ROAD RUNNERP R O J E C T E D B A L A N C E S H E E T

As Projected on December 31, 2008

Capital & Liabilities

2008 2009 2010

Capital 4,000,000 5,049,000 6,420,210 Add: Profit 1,049,000 1,880,390 2,809,298 Less: Drawings (509,180) (1,732,972)Total Equity 5,049,000 6,420,210 7,496,536

Long term loans -

Current Liabilities Accounts Payable 258,000 209,896 100,000 Other Liabilities 350,000 152,000 119,994

608,000 361,896 219,994

Total Equity & Liabilities

5,657,000 6,782,106 7,716,530

Assets

Fixed Assets 4,500,000 3,876,250 3,601,438

Current Assets Accounts Receivable - - Stores and Spares 305,116 1,450,000 2,093,783 Cash & Bank Balance 851,884 1,455,856 2,021,310

1,157,000 2,905,856 4,115,093

Total Assets 5,657,000 6,782,106 7,716,531


APPENDIX


REFERENCES

Websites: www.driversshieldautoclub.com www.theautoclub.com www.truckrealm.com www.ptcl.com.pk www.jang.com.pk/thenews www.apnakarachi.com.pk www.pakdatabase.com

http://www.pakdatabase.com/

http://www.apnakarachi.com.pk/

http://www.jang.com.pk/thenews

http://www.ptcl.com.pk/

http://www.truckrealm.com/

http://www.theautoclub.com/

http://www.driversshieldautoclub.com/


BROCHURE


QUESTIONNAIRE

Name: ______________________________________

Age: __________ Gender: ___________

Occupation: __________________________________

Date: ____________

Q1. How often do you face problems with your car?

i. Once a month

ii. Twice a month

iii. Once in two months

iv. Once in 3 months

Q2. Whenever you face a problem, do you try to fix it by yourself or you ask for

help?

i. Yourself

ii. Ask for help from nearby passers

iii. Ask for help from your mechanic

Q3. Have you ever come across a mobile repair service facility?

i. Yes

ii. No

Q4. Did you ever experience a trouble in your car and there was nobody to help,

you wished you could have someone to solve the problem as soon as possible as

you had to reach to some important place?

i. If yes, briefly state the experience

___________________________________________________________________________________

_______________________________________________

ii. No

Q5. What type and model of car do you own?

_________________________________________________________________

imaginary product report road runner service shop

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