Case 3: Super Clean Solution – Marketing Plan

Group: E1

AMAN DUBEY 21B107

HIBA PARVEEN MP 21B117

CHIRAG TATED 21B112

PAVITRA BHAGAVATULA 21B129

VINAYAK TRIVEDI 21B158

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I. Executive Summary
High end cars require proper maintenance and regular cleaning services as they not only provide the
required comfort but also magnify the social status of the owner. With rising disposable income and
changing trends there is a demand for high end cars in the market which is expected to continue.
Most of the car cleaning companies offer multiple services to different segments of car owners
ranging from budget cars to luxury cars. But only few players specialize in one segment.

High end car cleaning market is a growing trend with loyal customer base there is a huge profit
opportunity that is yet to be tapped. Car owner in this segment is not price elastic and are likely to
avail service from one company provided the service quality is met. With good marketing and
quality service a company can expect good return on its investments.

II. Current marketing Situation

A- Market Overview

i. Market demographics and needs

The location is the most vital factor in predicting a car wash’s success. Ideally, a car wash must be
situated at a location that possesses a heavy traffic volume. Hence, we have chosen the city of New
York as our ideal location.

Coming to demographics:

 We shall be targeting males. The reason for this discrepancy is as men, in general, are more
attached to their vehicles and are willing to spend more on their maintenance.
 Targeted customers must have income greater than $40,000. Since we are operating in the high-
end segment hence our offerings can be a bit pricey for some people.
As with any industry, we anticipate the following market needs that must be satisfied

 Exemplary customer service: The target customers have money and are used to having excellent
customer service.  They will not regularly use Super Clean Solutions without excellent service.
 High-quality washes: The target market value a higher-quality wash for their upper-end cars.
 Convenience: The hours of operation, as well as the time needed to provide the service, must be
convenient and fast respectively, to gain market share.

ii- Market trends and target market growth

With the progression of technology and the cultural shock brought on by the pandemic, the market
trend can be seen as moving from hand wash to automatic car washing facilities. Automatic washing
facilities have also been becoming more efficient and cost-effective with time.

B- SWOT Analysis

C- Competitive and industry analysis

The car wash service market size was valued at USD 14.21 billion in 2020 and is expected to expand at a
compound annual growth rate (CAGR) of 4.8% from 2021 to 2028. The demand for car wash
services has been rising over the past decade due to their increased convenience and a greater array of
budget and luxury options. The market is primarily attributed to the increasing focus of consumers on
 vehicle maintenance and rising spending power. Busy schedules and time constraints have also led to
consumers giving their vehicles to professional car washes rather than cleaning them at home

1. The marketplace is currently shared by 3 major car washes:

 Do it yourself
 Service Centre Car Wash
 Specialized Car Cleaning Firms

Since Super Clean Solutions plans to target white-collar workers and aims to operate in the high-cost
range we will face direct competition with the specialized car cleaning firms. Hence our major
competitor will be the 30 specialized firms operating in the area.

D- Product overview
Super Clean Solutions intends to be the one-stop solution for all car wash-related activities in the area.
We intend to offer our customers a wide product portfolio to make sure the prospective customers return
and can be converted to long-term customers. Below are the services that we can a company believe will
be best suited:

Exterior car Interior Full-service Undercarriage Window, dash, &

washing cleaning hand wash washing door cleaning
Waxing Vehicle Washing of
Wheels care Maintenance check
services detailing rugs

E- Keys to success and critical issues

Below are the factors which will be vital to the success of the firm. We will have to focus on the success
factors to grow as a company while trying as much as possible to mitigate the critical issues.
 III- Environmental Analysis

i. Microeconomic Analysis
1. Demographics
 Change in customer preference, trend in car washing industry such “Do-it-Yourself” to “Do-
it-for-me” may impact the company. As a matter of fact, there is a vast decline in the
percentage of US consumers washing their cars at home.
 With the increase in awareness about water wastage and the harmful impacts on environment,
people may reduce the frequency of car wash.
 Weather Conditions may disrupt the business operations.
2. Regulatory
 Policies regarding minimum wage and maximum working hours may impact the profitability.
3. Competition –
 Presence of competitors in the nearby locations.
 Need for differentiated services.
 Price war among the competitors.
4. Suppliers –
 No bargaining power with suppliers since the products required by our company are not
exclusive

ii. Macroeconomics Factors

5. Economic Climate
 Slowdown effect on automobile industry will reduce the demand for high end cars.
 There is a negative correlation between fuel prices and frequency of use of car washes. When
gas prices are low, people travel more.
6. Technology
 Changes in car wash technology.
 Car washes have begun adopting mobile apps and online booking services to increase
convenience for tech-forward customers
 The country is hub of technology companies then there is a high chance of technology
disruption among various industries.

IV- Marketing Strategies

A- Mission
The mission of super clean solution is to provide differentiated high end cleaning solutions to make
cars look as good as new.

B- Marketing Objective-
 Retain current customer base
 Attract new customers from expensive car owner’s segment.
 Increase the brand awareness through promotional activities
 Promote new services and products that would differentiate it from other car cleaning companies.
 Analyse the competitors and evaluate the opportunities that would provide a competitive edge.

C- Financial Objective
 Wider profit margins
 Consistent growth in revenue
 Cost minimization

D- Target Market
 Mid-priced car owners –
o Mid-priced car owners because they require quality cleaning. They require cleaning on
regular basis and prefer self-cleaning but prefer high end cleaning services occasionally.
 Expensive car owners –
o Expensive car owners require high quality cleaning. they require cleaning on regular basis
and most of the times, they prefer use of high-end cleaning services

E- Positioning
 Super clean solution seeks to position itself in the premium business of high-end car cleaning.
 Product differentiation with value added services.

F- Strategy Summary
 The strategy for super clean solutions would be to first create a customer base and create
brand awareness among the customers and attract customers towards the company. Further to
which, create customer loyalty and increase the market share of the company.
 As there are already 30 specialised cleaning company in the area, super clean solutions will
have to give differentiated services to have a competitive edge and reliable pricing with
quality services that would attract the target customers to the company.
  The company will have to invest in promotional activities in order to spread brand awareness,
they should opt for newspaper advertisement which has an average circulation of 82,000.
Investing in Business newspaper so that it reaches the elite class and expensive car owners
and investing in display of billboards in the corporate locations.

V- Marketing Mix

Product Service Promotion Channel Pricing Internal Marketing

- Exterior car - High end car - Newspape - Single - 30% - 10% discount on
washing cleaning r ads outlet discount on customer
- Interior service - Early bird - (Additions complete reference
cleaning - Doorstep discount of new service - $10 to employee
- Waxing pickup and - Loyalty outlets - No charges for referral sale
services delivery Points with for for complete
- Vehicle - Differentiated growing doorstep service.
detailing service from demand) delivery - Quality training
customer under 2 to employees.
- Free quality miles
check - Multiple
payment
methods

VI- Marketing Research

The company has conducted survey research to know customer’s beliefs, preferences, satisfaction and
to measure these magnitudes. the survey will be short and precise which will ensure maximum
participation. This research would give the company insight into various interest of the car owners and
we can differentiate our services accordingly.

The company has also conducted behavioural research to know the purchasing behaviour of the
customers, the actual purchases reflect their preferences and offer more reliable information to the
researcher, this research would help retain the customer base and also attract new customer in order to
increase market share.

VII- Financial Analysis

 Mark’s Financial goal is to earn an income of $500/ week by cleaning cars. Max is an expert in cleaning
the cars and wishes to extend his service full time to cleaning high-end cars. The financial projections for
Superclean are as below.

Cost

Assumption: The service is available for 12 hrs./day X 24 days/month. Given the financial goal of mark
to attain $500/week, mark is expecting to clean 4 cars. To achieve this goal one more employee will be
added to save on time for max to focus on other activities of the business apart from cleaning the car.

  Monthly ($) Year 1 ($) Year 2* ($)

Rental 1200 14400 15840
Power and Water* 200 2400 3600
1 Part Time Employees 1440 17280 37440
Insurance 100 1200 1200
Equipment   5000 11500
Loyalty Discount 2400 28800 43200
Variable Cost (4 Cars/day) 2400 28800 51840
Promotion 2350 24600 21000
TOTAL 10090 122480 185620
*Since max is doubling his operations the power and water consumption will also double.

*Year 2 Assumptions:

 The rental charges have increased by 10%

 Due to rise in demand the company has invested 2 equipment whose cost have increased by 15%
 The company has hired 2 part time employees at $65/day each.
 The company has reduced its marketing expenses to 1750/month on billboards
 The average number cars serviced in a day has increased to 6

A- Sales and revenue forecast

  Monthly Year 1 ($) Year 2 ($)

Sales (4 cars/day) (175r per car) 16800 201600 319680
Total Cost 10090 122480 185620
Profit 6710 79120 134060
Profit Margin 67% 65% 72%

B- Marketing Budget Forecast

 First 6 months remaining 6 months Year 2 (per
(per month) (per month) month
Business Newspaper Ads 600/week 1200 600 600
General Newspaper Ads 300/week 300 300 300
Billboards 850/month 850 850 850
Monthly 2350 1750 1750
Total 14100 10500 21000
Yearly total 24600 21000

C- Break Even Analysis

Fixed Cost $ 62480

Variable cost $ 27.1
Price $ 150
Cars/day 4
Break Even Qty 509

The company can break even at the beginning of month 5 from its operations after servicing 509 cars.

D- Profit and Loss Analysis

VIII- Control
 A- Implementation
Manage Departmen
Milestones Start Date End Date Plan Budget r t
Marketing Plan Completion 01-01-2020 01-02-2020 $0 Max Marketing
General Newspaper
Advertisement 02-02-2020 09-02-2020 $300 Max Marketing
Business Newspaper
Advertisement 10-02-2020 17-02-2020 $600 Max Marketing
Billboards 01-02-2020 01-03-2020 $850 Max Marketing
Total Sales 01-02-2020 01-03-2020 $16800 Max Marketing

B- Marketing Organization
Max will be responsible for the marketing activities

C- Contingency Planning
i. Aggressive move by established players
Our company will be conducting marketing research on a regular basis to know about the various
moves by our competitors and try to adopt the latest technologies in the market so that we stay on the
top and try to reduce the threats that may arise in the future.

ii. New potential entry in the market

Business of Car wash is growing, and we are expecting the growth will increase in the future which
will attract many people to set up a Car Wash business. So, we must be very attentive to such new
business as it may reduce our market share and create threats to our business

iii. Exit Strategy

In case when the company is unable to reach its breakeven point or when there is a major downturn in
the business, the company is going to follow the following exit strategies: -
a) Sell all the equipment’s of the businesses
b) Lease the business to 3rd party which will result in regular inflows to Max