Algonquin College Truck Detailing and Cleaning Business Plan


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Business Plan
Taken from:
Taken From:
Taken From:
Extreme Auto Repair and Detailing
Authored by: Preston Bogart
Address: 241 Preston St, Ottawa, ON
Taken from:
Table of Content
Business Description
o Type
o Location
o Why it is Needed
o Customer Value Statement
Target Market
o Demographic
o Psychographic (AIO)
o Geographic
o Behavioral
o Positioning statement
Marketing and Communication
o Marketing Objective
? Quantifiable
? Specifics
o Communication Objective
? Integration
? Quantifiable
? Specifics
o How to get the message out
o What type of media to be used
o Total expected revenue
o Cost of goods
o Expense
o Profit
Extreme Auto Repair and Detailing is an automotive service center for all who
are interested in getting fair, expert service at a reasonable cost. We do all sorts of
services that include; Brake, Suspension, Exhaust, Interior and Exterior detailing,
Seasonal Tire Changes, and many more. At Extreme Auto Repair and Detailing we work
effectively and efficiently in order to provide the costumer with reliable and fast
service. Since we are located right in the downtown Ottawa area, on Preston Street, it
is a very busy and fast paced environment. This means we must match the speed and
intensity of the downtown area. The reason there is a need for an automotive service
and detailing garage downtown is because there are very minimal shops that do both
service and detailing. Since the downtown area is an expensive place to live, those who
live near will either have expensive automobiles, who want detailing as their priority,
or those who own cheaper vehicles, which will need maintenance often.
The pricing that I hope to establish will be reasonable within the limit of overall
gross profit. I hope to integrate a price match guarantee, so customers feel confident
that our price is reasonable, and if they find somewhere cheaper, they know that we
will do it for cheaper. In the storeroom/showroom, I will have seats for customer to
relax as their vehicle is being taken care of in the shop, as well as having a large
window so customers may watch as the work is being done to their vehicle. As I have
noticed, with my experience customers feel more relaxed when they are able to check
on the progress of their vehicle through a window to the shop. This feeling of
relaxation and safety is going to be the most important part of my business since we
will also be detailing their vehicles. The show room will also be family friendly, since
many parents cannot leave their children alone, they must bring them along.
Televisions will be in place so that the children can be occupied while the parents talk
business with the sales team. Our target market will include those who like their
vehicles professionally cleaned and those who need quick and efficient repairs, with
reliable parts. My hope for this business is to gain most of our profit from our labor
costs. With a potential promotion from well-known auto parts and detailing
companies. Since our business is going to near such a densely populated area, I hope
to gain loyal and valued customers within the first couple of years of our business
Target Market
Our Market will include those who own all types of vehicles, that either need repairs or
want their vehicle professionally detailed. A wide variety of customers will want our
services and products due to the accessibility and easy of where we are located. Most
of our customers will range from the ages of 20-65 years old who own their own
vehicle and drive it daily, or during the summer months if they are passionate about
automobiles. Any age group would be welcome in our showroom. Whether they are
new drivers or customers who have been driving for many years. All genders and
sexuality will be welcome as well, since everyone needs our services. Our customers
will live or work in the downtown Ottawa area and need to drive for work or school
during the week. Some our customers will also have children with their significant
other. With this in mind, we will need to make sure our show room is child friendly.
Most of them will enjoy driving their vehicle if they like their car detailed and most of
them will be interested in knowing their vehicle runs well, without problems. Since the
business will have different behavioral response depending on what the customersÂ’
needs/wants are, it could range needing immediate need, to unnecessary. As our
business increases, regular customers will be more frequent, and it is important to
have regular customers. Usage rates will also vary depending on the lifestyle of the
customer. Our usage rates should increase during the season before and after winter
because that is when everyone is changing their tires. These busy seasons will be
where we make the most money. Since there is always maintenance to be completed
on vehicles, the hope is that we receive loyal customers coming to the business. Later,
after a couple of successful years of business we could implement a loyalty program if
we know we have enough loyal customers. This will entice other customers to join the
program or make them realize that we have good business. Our customers will want
consistency and cost effect work. The repair and detailing are an important part in your
cars life that will consciously wow those on the road, or give you a cozy feeling,
knowing your car is well maintained for all who drive. Unlike Dragon Auto Service our
repair shop will also include professional detailing and a friendly, welcoming store
Marketing and Communication
Marketing Objective
Our marketing objective we hope to achieve:
Sales Volume:
Achieve sales of 70 000 units in our service department and 30 000 units in the
detailing department and increasing sales 7-9 percent over current-year sales.
Market share:
Achieve a market share in Ottawa of about 5-7 percent and increase gradually every
year to 10-15 percent.
Generate a gross profit, after financing the land needed for the store and buying all
necessary units and tools, of 100 00 in the first year and increasing by 10 percent after
the first year.
Communication Objective
Our communication objective will include:
Using social media influence, we will be able to gain awareness of our products
through the ages of 20-50, or anyone who uses social medias. For older clients we will
use television advertisements to showcase our products.
Family friendly business that all consumers are welcome. With the best prices around.
To attract consumers it is important to keep our lot clean and organized. This will help
with our overall look and perception as well. We will express deals to attempt to
attract more customers
Public Image
As for our public image, as previously stated the hope is to gain a public image of
family friendliness with affordable pricing, and cleanliness.
– Family friendly
– Easy accessibility
– Affordable prices
– Small shop
– Unpredictable work loads

– Larger target market due to family
– Heart of downtown will bring
many customers
– The ability to expand to expand
– Less customers will be able to be
served at once
– Could lose revenue from
– Other Shops around
Our first few years will be very important as we attempt to customers interested in our
services. There are many ways to get the message out for our services Some of which
include; A social media presence, television advertisement, On the street promotions,
and creating our own website. All of these will further increase the chances of getting
more customer. We could also utilize other outlets to promote deals and our
membership program.
Financial (First Year)
Total expected revenue
We hope in our first year to make over 200,000 dollars from the repair side of the shop
and from the detailing side, around 150,000 dollars. AS the years progress we hope to
increase the expected revenue to increase at a rate of 10-20% each year.
Cost of Goods
Research shows that the cost of goods for an automotive repair shop cost around
15,000 dollars a month. We hope to reduces that cost by buying in bulk and reducing
that cost to 10,000 dollars a month. As for our services, most auto mechanics get
payed 75,000 to 100,000 a year from labour. Since we bought a lot that already has
most of the necessary components for an auto shop there not be a need to do any big
construction work. We would simply do some renovations.
Our only expenses will include renovations, upgrading some equipment, necessary
tools and detailing tools. This would only be for the first year. In the first year there are
other expense to open up a new shop. These include a business licence ($50-$100),
Insurance ($4000/yr), Tools ($11,200), Property ($8,250 depending or where it is). So
for the first year our expenses should be over 50,000 dollars just to open the shop.
In our first we should expect to make negative profit since it is expensive to open a
new shop and revenue might not be what we expect. After our first year we hope to
have a profit of $100,000 and for that to increase by 20% in the next year. This price
also includes the profit of the detailing service, since the detailing side of our business
does not need to much as a start up we hope to gain more profit from that in the first
MKT 2230 Intro to Marketing
Cover Page
1 page
5 – excellent
4 – good
3 – satisfactory
1- below expectations
Table of Contents
1 page
5 – excellent
4 – good
3 – satisfactory
1- below expectations
15 – excellent
13 – good
11 – satisfactory
8- below expectations
Business Description
1-2 pages
Target market
description and
market Analysis
1-2 pages
Marketing and
Communication (IMC)
1 page
25 – excellent
20 – good
15 – satisfactory
12 – below expectations
15 – excellent
13 – good
11 – satisfactory
8- below expectations
Guide: present; not present; partial
1. Includes your company name
2. Include graphic or image
3. Includes address of business
4. No spelling mistakes
5. Does not include professor name
1. Correct formatting
2. Headings align to actual pages
1. Type of business
2. Location of Business
3. Why you think it is needed, here.
4. Customer Value Statement
1. Describe how you help
customers with regards to your
2. What problems do you solve?
Psychographic (AIO)
Positioning statement using the template
discussed in week2
– Includes rationale
– SWOT Table
– Marketing Objective
A. quantifiable
B. specific
C. time bound
D. valid marketing objective
E. includes rationale
– Marketing Communication Objective
1. integrated (IMC)
2. quantifiable
3. specific
4. time bound
5. valid communications objective
6. Includes rationale and coherency
with marketing objective

MKT 2230 Intro to Marketing
1-2 pages
1-2 pages
Total before penalties
Format requirements
met – formatting,
spelling, grammar,
bibliography, etc.
15 – excellent
13 – good
11 – satisfactory
8- below expectations
15 – excellent
13 – good
11 – satisfactory
8- below expectations
– 1 grade reduction for
each spelling and
grammar (no maximum)
– 5% reduction for missing
– 5% reduction for poor
– 5% reduction for
Guide: present; not present; partial
– How are you going to get your message
to the target market?
– What media are you going to use, TV,
Radio, Magazines, Social Media?
– Includes rationale
Prepare a basic Financial statement
– Total expected revenue
– Cost of goods purchased
– Expenses
– Profit

No spelling errors
No grammatical errors
Includes a complete properly formatted
(APA) bibliography
Complete citing within the document
Formatting includes a table of contents,
page numbers, section titles
Generally professional presentation
including a cover page, organized
material including numbered appendices

Purchase answer to see full

Explanation & Answer:
7 pages

social media marketing

total expenses

electronic toothbrushing device

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