Business Plan On Auto 7

ENTREPRENEURSHIP
2012
BUSINESS PLAN ON AUTO 7
SUBMITTED TO: SIR AHMED FAREED SUBMITTED BY: SHARJEEL SALMAN ABDUL MAJID WALEED BUTT 11005 11016 11035
AUTO 7
TUNING & MODIFICATION
8/8/2012
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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BUSINESS PLAN
AUTO 7
DEDICATION
Our dedication goes to the one, who is the Most Beneficent, The Most Merciful (ALLAH), & to our Parents & Teachers.
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BUSINESS PLAN
AUTO 7
TABLE OF CONTENTS
1. 2. 3. EXECUTIVE SUMMARY: ............................................................................................. 7 INTRODUCTION: ........................................................................................................ 8 BUSINESS BACKGROUND: ......................................................................................... 9 3.1. 3.2. 4. BUSINESS OPPORTUNITY: ................................................................................. 10 BUSINESS PLAN CREATION: ............................................................................... 11
ABOUT US: .............................................................................................................. 12 4.1. 4.2. 4.3. 4.4. 4.5. VISION: .............................................................................................................. 12 MISSION: ........................................................................................................... 12 GOAL:................................................................................................................. 12 OBJECTIVES:....................................................................................................... 12 CSR: .................................................................................................................... 12
5.
COMPANY DESCRIPTION:........................................................................................ 13 5.1. 5.2. 5.3. 5.4. 5.4.1. 5.4.2. 5.4.3. 5.4.4. COMPANY OBJECTIVES:..................................................................................... 13 BASIC INTERESTS/SERVICES: ............................................................................. 13 MAP OF OUR TERRITORY: ................................................................................. 14 TERRITORY PRODUCTS/SERVICE DESCRIPTION: ............................................... 14 ENGINE DEPARTMENT: .................................................................................. 15 PAINT AND BODY: .......................................................................................... 16 WHEEL AND RIMS: ......................................................................................... 17 ACCESSORIES: ................................................................................................ 18
6.
BUSINESS MODEL:................................................................................................... 19 6.1. 6.1.1. 6.2. 6.3. 6.3.1. AUTO PARTS SELLING & SERVICE: ..................................................................... 19 SALES PROMOTIONS STRATEGIES: ................................................................ 19 VALUE CHAIN:.................................................................................................... 20 VALUE PROPOSITION/CUSTOMER: ................................................................... 21 CUSTOMER ANALYSIS: ................................................................................... 21
7. 8. 9. 10.
MANAGEMENT TEAM OF AUTO 7: ......................................................................... 22 ORGANIZATIONAL STRUCTURE (Hierarchy) ............................................................ 23 POSITIONING STRATEGY: ........................................................................................ 24 MARKETING PLAN: .................................................................................................. 25 MARKETING CHANNEL: ................................................................................. 25 4|Page
10.1.
BUSINESS PLAN 10.1.1. 10.1.2.
AUTO 7
MARKETING STRATEGY: ............................................................................. 25 MARKETING MODEL: ................................................................................. 26
10.2. PASTEL ANALYSIS: ................................................................................................... 29 10.3. MARKET SEGMENTATION: ...................................................................................... 31 10.3.1. 10.3.2. 10.3.3. 10.3.4. 11. GEOGRAPHICALLY: ..................................................................................... 31 DEMOGRAPHICALLY:.................................................................................. 32 PSYCHOGRAPHIC: ....................................................................................... 32 BEHAVIORIST: ............................................................................................. 32
ADVERTISING PLAN AUTO 7:................................................................................... 33 INTEGRATED MARKETING COMMUNICATIONS (IMC): ................................. 33 SALES PROMOTION: ................................................................................... 33 PUBLIC RELATION:...................................................................................... 34 ADVERTISEMENT:....................................................................................... 35 INTERNET ADVERTISEMENT:...................................................................... 36 STRENGTHS: ................................................................................................... 37 WEAKNESSES: ................................................................................................ 38 OPPORTUNITIES: ............................................................................................ 38 THREATS: ....................................................................................................... 38
11.1. 11.1.1. 11.1.2. 11.1.3. 11.1.4. 12. 12.1. 12.2. 12.3. 12.4. 13.
SWOT ANALYSIS OF AUTO 7:............................................................................. 37
PORTERS FIVE FORCES MODEL: .............................................................................. 39 BARRIERS OF ENTRY: ..................................................................................... 39 SUPPLIERS: ..................................................................................................... 41 NUMBER & SIZE OF SUPPLIERS: ................................................................. 42 ABILITY TO SUBSTITUTE: ................................................................................ 43 BUYER: ........................................................................................................... 44 COMPETITIVE RIVAIRY: .................................................................................. 45 MARKETING MIX (4PS): .................................................................................... 46 COMPITITORS ANALYSIS OF AUTO 7: ..................................................................... 47 COMPETITORS ANALYSIS TABLE: ................................................................... 49 COMPETITIVE EDGE: ...................................................................................... 49 COMPETITIVE SWOT ANALYSIS: .................................................................... 50 HUMAN RESOURCE PLAN OF AUTO 7: .............................................................. 51
13.1. 13.2. 13.2.1. 13.3. 13.4. 13.5. 14. 15.
TIME & COST OF ENTERING .................................................................................. 39
15.1. 15.2. 15.3. 16.
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BUSINESS PLAN 16.1. 16.2. 16.3. 16.4. 17. 18.
AUTO 7
RECRUITMENT: .............................................................................................. 51 SELECTION: .................................................................................................... 53 TRAINING AND DEVELOPMENT: .................................................................... 54 PERFORMANCE & COMPENSATION: ............................................................. 54
REGULATORS AND OTHER STAKE-HOLDERS OF AUTO 7 ........................................ 58 FINANCIAL PLAN OF AUTO 7: .................................................................................. 59 BUDGET ESTIMATION: ................................................................................... 59 EXPENSES ON BUILDING & WORKSHOP: ....................................................... 60 EXPENSES ON ADVERTISEMENT: ................................................................... 61 INCOME STATEMENT (YEAR ENDED):............................................................ 62
18.1. 18.2. 18.3. 18.4. 19. 20.
FUTURE GOAL/EXIT STRATEGY: .............................................................................. 63 APPENDICES: ........................................................................................................... 64
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BUSINESS PLAN
AUTO 7
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 suites 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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BUSINESS PLAN
2.
AUTO 7
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.
Thats 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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BUSINESS PLAN
3.
AUTO 7
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. 9|Page
BUSINESS PLAN
3.1.
AUTO 7
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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BUSINESS PLAN
3.2.
AUTO 7
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. 11 | P a g e
BUSINESS PLAN
4.
AUTO 7
ABOUT US:
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.
We
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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BUSINESS PLAN
5.
AUTO 7
COMPANY DESCRIPTION:
The name of company is UTO 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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BUSINESS PLAN
5.3.
AUTO 7
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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BUSINESS PLAN
5.4.1.
AUTO 7
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 will tune these kinds of engines in AUTO 7 to reduce customer tension that these cars can tune locally.
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BUSINESS PLAN
5.4.2.
AUTO 7
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 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. 16 | P a g e
BUSINESS PLAN
5.4.3.
AUTO 7
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 consumers 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 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 doesnt needs to go here and there everything will be provided for customer easy and also for customer time saving.
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BUSINESS PLAN
5.4.4.
AUTO 7
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 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.
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BUSINESS PLAN
6.
AUTO 7
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 departments 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. STARTING POINT FOCUS Existing Auto Parts & services MEAN Selling, Providing Services & Sales Promotion END Profit/sale volume
SELLING & SERVICE
Companys 4 major departments
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. 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. 19 | P a g e
BUSINESS PLAN
6.2.
AUTO 7
VALUE CHAIN:
The value creating steps/activities of Auto 7 are shown in flow diagram below;
4) Assembling Auto-Parts or Accessories
2) Purchases of imported cars autoparts by importing & also purchase from lacal market if available
5) Installation & Services

3) Direct Selling to our Customers from our place AUTO 7
1) Forecasting Demand of Current Auto Parts in Market
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
customers car.
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BUSINESS PLAN
6.3.
AUTO 7
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 didnt 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 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
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BUSINESS PLAN
7.
AUTO 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 MAJID The CFO of AUTO 7 is ABDUL QAYYUM
Middle Management:
The Operation manager of AUTO 7 is Waleed Butt The HR manager of AUTO 7 is Sharjeel Sulman The Work shop manger of AUTO 7 is Ahsan Ijaz
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.
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BUSINESS PLAN
AUTO 7
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;
C.E.O
C.F.O
HR Manager
Manager Operations
Workshop Manager
Accessories, Paint/Body & Wheel/Rim Workers
Tunning & Engine Dept. Team Leader
Mechanics
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BUSINESS PLAN
9.
AUTO 7
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 dont have space to park the car. In rushed hours customers didnt 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 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 dont 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 didnt come on those places due to bad service and untrained labor. So it is another USP of our business thats 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.
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BUSINESS PLAN
10.
AUTO 7
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 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;
STARTING POINT
FOCUS Customer Wants
MEAN Integrating marketing
END Profits/customer satisfaction
MARKETING CONCEPT
Marketing
ACTIVITY Advertising Pricing Service Report to customer Promotional activity
CLIENT NEED Quality, honesty, reliability Competitive Reliable, efficient Informed selling Awareness
WHEN Start up Always Always Always Start up
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BUSINESS PLAN
10.1.2.
AUTO 7
MARKETING MODEL:
The marketing model is shown in the flow diagram below;
Forecasting the Demand of Our target market
Purchases/ Imports
Advertisement
Direct selling
Assembling 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. 26 | P a g e
BUSINESS PLAN
AUTO 7
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 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.
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BUSINESS PLAN
AUTO 7
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 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 drivers safety and this is never done before in the past events.
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BUSINESS PLAN
10.2.
AUTO 7
PASTEL ANALYSIS:
P: Political E: Economical S: Social T: Technology E: Environmental L: 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.
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. 29 | P a g e
BUSINESS PLAN
AUTO 7
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. 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.
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BUSINESS PLAN
10.3.
AUTO 7
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. Our second option will be DHA Lahore. These are the areas which we are targeting.
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BUSINESS PLAN
10.3.2.
AUTO 7
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.
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.
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11.
AUTO 7
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:
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 thats 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 consumers sales promotion which is used by our company is; Price reducing Competitive Incentives Free service
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11.1.2.
AUTO 7
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. Thats 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 consumers satisfaction and dissatisfaction our companys 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: 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 drivers safety and this is never done before in the past events. 34 | P a g e
BUSINESS PLAN
11.1.3.
AUTO 7
ADVERTISEMENT:
Marketing Communications the Advertisement and the most
Integrated
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:

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
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BUSINESS PLAN
11.1.4.
AUTO 7
INTERNET ADVERTISEMENT:
INTERNET WEB SITE:
Companys 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 informations 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 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.
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BUSINESS PLAN
12.
AUTO 7
SWOT ANALYSIS OF AUTO 7:

The SWOT Analysis of AUTO 7 is stated below;
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
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12.2.
AUTO 7
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 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.
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BUSINESS PLAN
13.
AUTO 7
PORTERS FIVE FORCES MODEL:
There are five section of Porters Five Model: 1. 2. 3. 4. 5. Barriers of entry Suppliers Substitutes Buyer 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 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.
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BUSINESS PLAN
AUTO 7
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 producers 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. 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
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BUSINESS PLAN
AUTO 7
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 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
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13.2.1.
AUTO 7
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. 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.
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13.2.2.
AUTO 7
UNIQUE SELLING SERVICE:

7 will provide comfort and peace of mind to our customer. As our
Auto
competitors of dont have space to park the car in their own places. In rushed hours customers didnt 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 dont 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 didnt 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.
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 cant take risks like this which increase the co st 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.
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BUSINESS PLAN
13.4.
AUTO 7
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 customers 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:
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 peoples 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.
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13.5.
AUTO 7
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 dont deal all the car caring
sections as we are going to introduce with the unique plan. Thats 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 competitors analysis.
INDUSTRIAL CONSIDERATION:
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. Thats 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 thats 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 thats 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. 45 | P a g e
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14.
AUTO 7
MARKETING MIX (4PS):

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.
AUTO 7
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.
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BUSINESS PLAN
AUTO 7
MINT GUMNI ROAD:
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.
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BUSINESS PLAN
15.1.
AUTO 7
COMPETITORS ANALYSIS TABLE:
The following table is generated after a complete research on the AUTO 7s market competitors which is shown below;
COMPETITORS
MAX POWER
LOCATION SERVICES/SALES
Defense Defense Normal/Car Modification Kits Not Good/Rims & Wheels And Car Decoration Products Time Consuming/Car Accessories Normal/Selling Theft Parts Of All Cars Normal/Accessories And Modification Products Good/Wheels And Rims Time Consuming/Car Stereo Systems Normal/Repairs And Maintenance
PRICE/RANGE SIZE
Expensive Reasonable Small Shop Medium Shop Small Shop Market Big Market Big Market Market Work Shops
AHAD MOTORS AUTO CARE BILAL GANJ MINT GUMNI NEIL-A-GUM BAD HALL ROAD LOCAL WORKSHOPS
15.2.
Defense Local Area Near Hall Road Local Area Hall Road Local Areas
Reasonable In Expensive Moderate
Reasonable Moderate Reasonable
COMPETITIVE EDGE:
They dont have space to park the car in their own places. In rushed hours
customers didnt 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 dont 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 didnt 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.
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15.3.
AUTO 7
COMPETITIVE SWOT ANALYSIS:
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
OPPORTUNITIES:
Making all departments related to cars which is not available in targeted areas. Market development opportunity No use of advertising instruments by competitors.
WEAKNESSES:
New entrance. Not too much financial resources. Lack of all round business knowledge Less suppliers 5% of target market
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.
AUTO 7
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:
is a process of locating, identifying and attracting capable
Recruitment
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. Thats why we have also designed the job application form for the applicants which is attached and shown below;
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BUSINESS PLAN
16.1.1.
AUTO 7
Job Application:
AUTO 7 Car Caring Company

Document 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 Father Name: Mailing Address: Father Occupation: Permanent Address: AFFIX RECENT PHOTO 1.5*1.5 Phone: Sex: Date/Place of Birth: Marital Status Spouse Name (if applicable) Phone: Nationality: Religion: Spouse Occupation: Minimum acceptable salary: Salary offered: Position Applied For:
Where did you learn about the job in this organization:
Educational Background
Year Grade/Division
Institution/University
Do you have you any relative working in this organization
If Yes, state Name & Relationship:
Designation
Employment Background 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:
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16.2.
AUTO 7
SELECTION:
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.
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BUSINESS PLAN
16.3.
AUTO 7
TRAINING AND DEVELOPMENT:
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.
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BUSINESS PLAN
16.4.1.
AUTO 7
Performance Cycle:
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;
Assign Tasks/Duties
Employee Feedback
Customer Feedback Collection
Evalutaion Of Tasks/Duties
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 employees 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.
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BUSINESS PLAN
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. Thats 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 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.
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BUSINESS PLAN
16.5.2.
AUTO 7
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
Foreign Auto Mechanic Main Mechanics
Department Requirement
Engine and tuning Engine and tuning Engine and tuning
No. of workers
1 2 2
Standard Wage level

100,000 to 150,000 10,000 to 15,000 5,000 to 6,000
Mechanics Helpers Electricians Dentar /Painter

Accessories Paint and body Wheel and Rim 2 2 2 10,000 to 15,000 15,000 to 20,000 5,000 to 8,000
Wheel & Rim installer
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 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.
57 | P a g e
BUSINESS PLAN
17.
AUTO 7
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 industry The 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 Media General public etc
58 | P a g e
BUSINESS PLAN
18.
AUTO 7
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 are also making or website for our customers relations. The advertisement will be used only in the start up business.
59 | P a g e
BUSINESS PLAN
18.2.
AUTO 7
EXPENSES ON BUILDING & WORKSHOP:
The expenses on building and workshop are shown below in the Assets table;
Assets Building on Rent Office equipment Machinery & Equipments Auto parts and accessories for our 4 departments Total
GRAPHICAL REPRESENTATION:
Rs. 100,000
(per month)
300,000 6,000,000 2,000,000 3,000,000
Assets Condition
2,500,000 2,000,000 1,500,000 1,000,000 600,000 500,000 100,000 Building Office Equipment Machinery Parts/Accessories 300,000 2,000,000
60 | P a g e
BUSINESS PLAN
18.3.
AUTO 7
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 TV channels News papers Advertisement on board/Flexes Internet website Total
Rs. 700,000 200,000 1,000,000 100,000 2,000,000
1,200,000 1,000,000 800,000 600,000 400,000 200,000 Internet website TV Channels Newspapers Advertisement on Board 200,000 100,000
Expenses on Advertisement
1,000,000
700,000
61 | P a g e
BUSINESS PLAN
18.4.
AUTO 7
INCOME STATEMENT (YEAR ENDED):
Net Sales/services Operation expanses Advertisement Building Rent Employee/Salaries Others Total expenses
5,000,000 (2,000,000) (1,200,000) (1,740,000) (200,000) (4,140,000) Rs.1,360,000
Net Profit
1,360,000
5,500,000 4,140,000
Net Sales Total Expenses Net Profit
62 | P a g e
BUSINESS PLAN
19.
AUTO 7
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;
OUR TRACK DESIGN:
1. 2. 3. 4.
VIP citing zone Spectators area Mechanical zone Security and staff area
63 | P a g e
BUSINESS PLAN
20.
AUTO 7
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
64 | P a g e

Business Plan On Auto 7

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Business Plan On Auto 7

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ENTREPRENEURSHIP

BUSINESS PLAN 10.1.1. 10.1.2.

MARKETING STRATEGY: ............................................................................. 25 MARKETING MODEL: ................................................................................. 26

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

13.1. 13.2. 13.2.1. 13.3. 13.4. 13.5. 14. 15.

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

15.1. 15.2. 15.3. 16.

BUSINESS PLAN 16.1. 16.2. 16.3. 16.4. 17. 18.

18.1. 18.2. 18.3. 18.4. 19. 20.

FUTURE GOAL/EXIT STRATEGY: .............................................................................. 63 APPENDICES: ........................................................................................................... 64

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

BUSINESS PLAN CREATION:

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

We will introduce first Racing Track in the history of Pakistan

Over Speeding is Deadly. To Reduced illegal Races at Public Roads.

MAP OF OUR TERRITORY:

TERRITORY PRODUCTS/SERVICE DESCRIPTION:

Departments Tuning & Modifications:

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

PAINT AND BODY:

WHEEL AND RIMS:

AUTO PARTS SELLING & SERVICE:

SELLING & SERVICE

Companys 4 major departments

SALES PROMOTIONS STRATEGIES:

5) Installation & Services

1) Forecasting Demand of Current Auto Parts in Market

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

MANAGEMENT TEAM OF AUTO 7:

First line Management:

ORGANIZATIONAL STRUCTURE (Hierarchy)

As the management team is described above, on the basis of it we have designed

Accessories, Paint/Body & Wheel/Rim Workers

Tunning & Engine Dept. Team Leader

Our channel of distribution is direct marketing. We will supply Auto parts

FOCUS Customer Wants

MEAN Integrating marketing

END Profits/customer satisfaction

ACTIVITY Advertising Pricing Service Report to customer Promotional activity

WHEN Start up Always Always Always Start up

Forecasting the Demand of Our target market

Racing events Sponsors

FORECASTING OF DEMAND OF OUR TARGET MARKET:

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

Public relationship is the process of understanding public attitudes on relevant

P: Political E: Economical S: Social T: Technology E: Environmental L: Legal

idea of tuning and modification is neutral politically. Politically

ADVERTISING PLAN AUTO 7:

INTEGRATED MARKETING COMMUNICATIONS (IMC):

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

Public relationship is the process of understanding public attitudes on relevant

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

ADVERTISING GOALS AND OBJECTIVES:

INTERNET WEB SITE:

Companys website is an important element of the IMC Plan. So to boost up the

DIRECT COMMUNICATION (E-MAILS):

have decided to communicate with target customers through direct

SWOT ANALYSIS OF AUTO 7:

PORTERS FIVE FORCES MODEL:

TIME & COST OF ENTERING

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

NUMBER & SIZE OF SUPPLIERS:

UNIQUE SELLING SERVICE: