Business Plan: Car Dealership in Saudi Arabia-Car & Care 4 U

Assignment onBusiness Plan: Car Dealership in Saudi Arabia-Car & Care 4 U By ABC Dated: Table of Contents TOC \o "1-3" \h \z \u Assignment on PAGEREF _Toc413745226 \h 11-Business Description PAGEREF _Toc413745227 \h 32-Vision PAGEREF _Toc413745228 \h 33-Mission PAGEREF _Toc413745229 \h 44-Operational Plan PAGEREF _Toc413745230 \h 44.1. Business Goals PAGEREF _Toc413745231 \h 44.2 Products PAGEREF _Toc413745232 \h 54.3. Advertising and Promotional Strategies PAGEREF _Toc413745233 \h 64.4. Suppliers PAGEREF _Toc413745234 \h 64.5. Use of Technology PAGEREF _Toc413745235 \h 75-Marketing Plan PAGEREF _Toc413745236 \h 75.1 Marketing Tactics PAGEREF _Toc413745237 \h 85.2 Role of Social Media Marketing PAGEREF _Toc413745238 \h 95.3 Concept of E-Marketing PAGEREF _Toc413745239 \h 105.4 Importance of E-Commerce and E-Marketing for Car & Care 4 U PAGEREF _Toc413745240 \h 105.5 Social Media & Car & Care 4 U Business PAGEREF _Toc413745241 \h 116-Human Resources Plan PAGEREF _Toc413745242 \h 116.1 Assessing current human resource capacity PAGEREF _Toc413745243 \h 116.2 Forecasting HR Requirements PAGEREF _Toc413745244 \h 126.3 Training and Recruitment PAGEREF _Toc413745245 \h 137-Financial Plan PAGEREF _Toc413745246 \h 148-Conclusion PAGEREF _Toc413745247 \h 159-References PAGEREF _Toc413745248 \h 16 Business Description Saudi Arabia knows for its oil and gas production in the world. Now the market of the Saudi is booming and growing towards the automotive industry. The car manufacturing is growing in the Saudi Arabia and it becomes hub of the Middle East in this sector. The government is supporting this sector therefore; there is great potential in this sector. The current situation of this market is very attractive and feasible for the car manufacturing business. On the other hand, there is also potential for the business and entrepreneur relating with automotive business in the market. According to the officials of government, the King Abdullah Economic City (KAEC) has made agreement and giving the land of 225,000 sq m in KAEC’s Industrial Valley to Renault Trucks and Volvo for their plants. This agreement is very encouraging for the other car manufacturers and businesspersons to invest in the car manufacturing. There is a complete analysis of from the business point of view. For this purpose, Porter’s five forces model is used. The other working companies in the market are General Motors, Ford, Nissan and Isuzu in trucking and buses CITATION Aut15 \l 1033 (Automotive Report, 2015). Moreover, the business is providing its customers with all the facilities of the purchase and after sale services. The Kingdom of Saudi has great potential now in the market of the car manufacturing and car dealership. Initial market study revealed that existing suppliers of cars in Saudi Arabia are not practicing convenient, flexible and reliable methods to facilitate the customers. On the demand, delivery, free online booking of the cars and second hand sale or porches of different cars are some aspects, which will highlighted as main aspect of this business. This business plan will describe the key aspects required in the successful operations of the business CITATION Placeholder2 \l 1033 (Automotive Report, 2015). Vision The Vision of the company “Car & Care 4 U” is “To become consumer-centric car suppliers that focus on the quality services, value addition, care from factory to home and provide convenience in online applications of booking, delivery, after sale services and becomes the first priority for business customers and individual.” MissionThe basic aim of the business is to make satisfy the customers by providing the best products and services. Moreover, the “Car & Care 4 U” company is also assisting customer in making the final decision about the purchase of car. The customers’ consultancy is at priority because the name and aim of the company or business is to provide the care for the customers. The business also provides care for the finance of the customer. In addition, this is the mission to gain the maximum market share in Saudi market in comparison with the competitors CITATION BJB15 \l 1033 (Bueno & Jeffrey, 2015). Operational PlanOur business is providing different cars to the customers. These include both new and branded cars according to the demand of the customers. Moreover, the addition thing in our business is that the business may provide the cars on demand. For this purpose, there must be relationships and legal dealership with many of the car manufacturing companies in the market of the Saudi Arabia. Moreover, the contract with Volvo, General Motors and Nissan and Isuzu supports the business to achieve the mission and vision for the company. For time being, the operational city is Riyadh and operation increases over time and will target other parts of the country as well. The online marketing and website use especially to serve customers in the country, so that they can order different models and cars in many areas of the country CITATION Placeholder1 \l 1033 (Business Monitor International , 2015). 4.1. Business Goals The goals of the business are to: Provide the best quality cars dealership Become Leading dealer and suppler in the market of the Saudi Arabia Establish Long-term relationships with customers Become leading online suppler and order booking for the cars Expand business to other Gulf countries Deliver the cars by using latest technologies Provide cheap and quality services for the customers Help in claiming the insurance from the car companies on the behalf of the customers For the customer dealings especially for the customers other than Riyadh city, Car & Care 4 U will use different information technology applications for the processing of the order, supply, delivery and the all kinds of the charges. The online system will provide more efficiency in the business and make the operations of the business more effective. The instant effective of use of the technology is that it will save cost for the customers and the owner. In addition, this also helps to save more time and cost of the customers and business its self. The role of the technology is growing more and more in the success of the business. Therefore, the goal of the business also includes capturing the social media for the promotion of the business and covering a large pool of the potential customers CITATION Bus15 \l 1033 (Business Monitor International, 2015). 4.2 Products“Car & Care 4 U” is a third party business in the market. In simple words, you can say that this commission agent business. The core products are the services provided to the customers. These services are the consulting, insurance claims, order booking and delivery of vehicles to the owner at its doorstep. Furthermore, the dealership of the business and available products on the behalf of the manufacturer are Volvo Nissan Isuzu General Motors Ford Motors These five companies make the dealership. The business deals in all these cars and models for the customers. For the instant understanding, these are the products of countries. There is no other business in dealership of cars that provide the services for the five companies in a single time. The reason to choose these companies is that the business of automotive is growing in the market of Saudi. Recently, the government of Saudi Arabia makes a contract with Volvo Company for the new production plant. This will give more opportunists for the business in the country. The several surveys made about the market of the country, these cars manufactures get more attention as compare to other companies. Moreover, the more customers in the market are purchasing one in these cars. The Isuzu is a trucking company therefore; the commercial customers are also present in the market CITATION Wil152 \l 1033 (Hana, 2015). 4.3. Advertising and Promotional Strategies In order to attract the customers there is need for the promotional activists and advertisement of the business in the market. Car dealership is a third party business therefore, the effective strategies about the marketing is on the mechanism of joint venture. The business has to bear the expenses of the advertisement for these companies also. The new model of the Volvo printed on the flex or slayers of Car & Care 4 U. the newest models of the Volvo, Nissan and so on is available only at Car & Care 4 U. these types of the advertisement is feasible for the company to grow. Moreover, any activity or participation in the social cause in the country also helps to promote the business. Moreover, the cars are deliver from factory to direct customer is also a tactics to promote the business. Normally the booking chargers for the car vary on the nature of the demand. The urgent delivery from the factory or plant is expensive as compare to the normal delivery. The delivery of the cars in less than the time given by the competitors is also a strong and power tool to attract the customers. In addition, the registration facility of for the cars without any additional charges also attracts the customer to purchase the car via Car & Care 4 U. The social media page could provide information about the type of services that the company is providing and answer queries of the people regarding our business. We will make sure a strong social media team is created that looks after all social media pages and answers all queries in a proper manner CITATION Dav12 \l 1033 (Legget, SAUDI ARABIA: Isuzu to build trucks locally, 2012). 4.4. Suppliers As discussed earlier this service business therefore, the suppliers of the business are Volvo, General Motors, Ford Motors, Isuzu and Nissan. These five companies are the supplier of the company as the final product receives from these according to the demand of the customers. The dealership with these companies is legal contract about the sale of the cars on the behalf of the companies. Moreover, this is not possible for everyone to book a car directly from the factory. Therefore, customers have to contact with the dealers in order to book their car. However, the factory charges additional cost on the delivery of the car. Therefore, in order to save this cost the business has to contact with different logistic or transportation entities for the delivery of the cars to the customers or at the dealer’s showroom CITATION Placeholder4 \l 1033 (Legget, SAUDI ARABIA: Isuzu to build trucks locally, 2012). 4.5. Use of TechnologyThis is an important area to be cover in order to expand the business. The use of technology is mandatory for the development of the business and the quality services. The use of technology in the advertisement will have positive aspects and outcomes. Moreover, the use of internet as the communication is also a feasible and profitable idea. In addition, a software integrated system or application develops that carry all the information about the cars, companies, new model launches, the color schemes and modification portal for the customers. Moreover, the customers are able to track their order and reaming time for the delivery of the vehicles. On the other hand, the customers wants to take the registration of the car, it will done free for the customer without any additional chargers. However, customers have to pay official fee for the registration. Electronic commerce or E-commerce is business, which carry on internet. Different technologies are using in E-commerce such as mobile commerce, supply chain management, internet marketing, online transactions, and inventory management systems. Modern E-commerce uses World Wide Web and other technologies has mentioned before CITATION Placeholder3 \l 1033 (Roberts, SAUDI ARABIA: KAEC to build Volvo/Renault truck plant, 2013). The official websites and pagers on social networks have created for the online advertisement of the business. The websites also includes the official information from the companies about their new arrivals. There is also the corner of the second hand sale and purchase of the cars. Customer’s login to the website of the company had search for the thing he wants. There is also the facility for the customers of after sale services. The use of technology is growing in the Saudi Arabia therefore; people are using the social media and internet for online shopping. It estimates that the online business and offerings will has proper response. The social media is a big source to check the response of customers about the new business especially for the specific services of by the business. Moreover, the Car & Care 4 U provides a communication bridge to the car manufacturing companies and the customers. For the companies dealerships are very effective in estimation of the demand past sales. Therefore, the aggregate planning and capacity planning use to forecast demand and sales revenue of different companies. Marketing PlanThere is need for the new cars manufactures in the country therefore, more companies are attracting to the market of the Saudi Arabia. Moreover, the government is also supporting the new cars companies in the market. This is a perfect time to launch the business. The Riyadh is a capital city of Saudi Arabia therefore; this place chosen for initial start of the business. One of the principle parts of the showcasing system are to build up the inventive and intuitive site where clients can request online and get their items conveyed at the opportune time. Moreover, the promoting arrangement comprises of how the business will seek after to achieve the intended interest group through distinctive publicizing channels. An alternate critical part of the promoting arrangement is to get colossal number of guests from the target business sector. The social media campaign will help for the test marketing of the business. Digital or online marketing of the business also helps to provide the instant feedback and ideas to make the business more effective. For this, the organization arrangements to build up a powerful and up to the imprint site, which is effectively, open on PCs and PDAs. In contemporary business environment, having powerful instruments to encourage clients conveys part of significance. Organizations, which offer adaptability to their clients, attain to the focuses to achieve most extreme number of clients CITATION Chr141 \l 1033 (William, 2014). Besides viable web showcasing devices, for example, SEO (Search Engine Optimization), SEM (Search Engine Marketing) and SMM (Social Media Marketing) will help to support the quantity of visitors on the site amid the top seasons. The most channels used for the marketing is the online resources, this also includes the direct emails, newsletters and text messages that carrying updates about the new models of the cars, factory prices and the percentage of the customization for the customers. The customization includes the color of the car, seating and interior decoration according to the need and demand of the customers. The facility of online inquiry via email, text message and phone call is also acceptable and appreciated by the management of the company. Moreover, in order to capture the large potential customers, the online order can also book for the value addition of the customers. 5.1 Marketing TacticsThe market penetration is one of the tactics or strategies that every new business needs to establish in the market and enter in to the competition. There is also the intense competition in the open market. For the purpose to enter in the market the market penetration and consumer orientation strategies will used to attract the customers in market. For this purpose, the first hundred customers who buy the car from Car & Care 4 U provides one-year free membership card. In the year whenever they buy, a car from them will receive discount on the purchasing. The delivery of the car will free for them. Moreover, more than 2 cars purchase from the company will provide free family dinner. Moreover, the website is design for different angels. There is the option to search for the car or manufacturer customers want. The advertisement is very effective way to capture a large number of the customers. For this purpose, the management of the company uses: Print media Billboards Content marketing Search Engine Marketing Establishing the company as the official and authorized dealers of Volvo, Nissan, Ford, General Motors and Isuzu Advertisement or sponsorship of any social event or cause to make awareness in the community for the new business These are the strategies and tactics uses to attract the customers and promotion of the new business. Dealers are the intermediaries between customers and producers. Therefore, the promotion of the business as quality service is mandatory for the success of the business in the new market. Print media play an important role in utilization of mainstream media for promoting business. It provides opportunities which other medium cannot CITATION Lud04 \l 1033 (Koekemoer, 2004). For that, Purpose Company will advertise in classified section of the newspapers and business magazines. Besides classified sections, advertisement will also be made in initial and middle pages as well as on and back cover of the newspaper and magazines. Similarly, billboards are another affective medium to advertise the business. Billboards are placed on main roads and important junctions of the city. People can easily see and attracted through billboard towards advertised product/services CITATION For08 \l 1033 (Know-It-Alls, 2008). Utilization of billboards for advertising various brands of auto vehicles of the company is an effective strategy. In addition, search engine marketing is extremely important. In today’s technological era, utilization of information technology for promoting the business is extremely important. Website of the company will be visualized in search engine through optimization and advertisement CITATION Mik141 \l 1033 (Moran & Hunt, 2014). Clients will be able to search company’s website and its products and services on internet. 5.2 Role of Social Media MarketingThe majority of special activities of “Car & Care 4 U” will be taking into account online networking displaying of its business. Online networking sites have changed the way organizations used to work in the business environment. It has expanded the opposition by offering access to organizations everywhere throughout the globe. Advertisers currently needed to make imaginative and innovative media and publicizing systems, which can focus to any portion over the globe. Adding to that, buyer created substance is a direct route keeping in mind the end goal to know the inclination of customers and their preferences & hates. Advertisers need to look and discover an example out of the mix of the social networking and buyer produced substance to target right clients CITATION Chr141 \l 1033 (William, 2014). This report presents instance of such an organization, which is utilizing online networking site (twitter, Facebook, Msn, Badoo) and bringing together it client produced substance to focus on the potential clients in an alternate manner. Supervisors need to go round the route keeping in mind the end goal to discover an agreeable picture of the purchaser decisions and inclination. The social media will very effective in the advertisement of the business. This will save time for the customers and less expensive mode. The website of the business has a positive impact on the buying behavior of the customers. Social media also has power to capture the mind and influence the thoughts of the customers. The online access and odder booking is a value addition to the services of the customers by the company. 5.3 Concept of E-Marketing E-marketing is the field in which office or association utilizes the present day correspondence innovation routines to trade the potential business sector into reality market. E-marketing is considered as a vital piece of the entire showcasing methodology, and it is a sort of promoting strategies to understand the advertising objectives taking into account the web. Web promoting or the e marketing empower the organizations give nonstop administrations in the each venture of items reselling, items offering and items in the wake of offering. It runs in the entire methodology of business operations and incorporates the quest for new clients, and additionally benefits for old clients. Extreme objective of the e-marketing is same as the idea of fulfilling clients in the showcasing. The online promotion of the business is very helpful in the life and growth of the company. Moreover, the Volvo, General Motors and Ford have fame in the market. These are the international companies. Therefore, the use of social media, online promotion tactics and the digital advertisement of the business is also essential to meet the standard of these companies. e-promoting is the procedure in light of present day advertising hypothesis and employments of web innovation and its capacity is to address issues of the clients, keeping in mind the end goal to understand the objectives of growing new showcasing and expanding working benefits CITATION Aut15 \l 1033 (Automotive Report, 2015). 5.4 Importance of E-Commerce and E-Marketing for Car & Care 4 U E-marketing is a necessary piece of the e-business, and e-trade incorporates e-showcasing. E-marketing can be considered as a critical method for executing e-trade. E-marketing is the system for the undertaking administration to acknowledge thing trade; clearly, it is the vital and essential web business exercises of the venture e-business exercises. E-trade alludes to another exhaustive advertising model, which is in light of e-business, uses each sort of e-showcasing strategy, and intends to attain to online business exercises. E-business can consider a coordinated system to organize online business administration and exchange exercises. The outline beneath shows how e-trade and e promoting consolidates to present a relationship of e-business, e advertising and e-business. These sources are the best for the promotion of the business. The dealership business will grow as the awareness creates in the public about the functioning of the people. The use of the technology is making the new structure of the business and changing the culture of the business. More than 50% of the business will do with the help of e marketing and e-commerce CITATION BJB15 \l 1033 (Bueno & Jeffrey, 2015). 5.5 Social Media & Car & Care 4 U Business Social media is the platform for the sharing of the information and data about anything. This is also the way to enhance the communication resources. The flow of the information is fast & feedback is instant on the social media. In the online world, experiences, information and different perspectives throughout community and society oriented websites is becoming increasingly significant on the social media. Therefore, this is quite feasible for the management to work with the social media. The type of the business is that it cannot be find easily at shopping malls or retailers. People have to search for it and come to the business in order for the satisfaction of their demands or wants. By using the social media, Car & Care 4 U has positive impact on the maturity of the customers and clients. Moreover, these indirectly affect the business of the car manufacturing companies. As discuses early, the management will also provide consultancy to the customers for the best option in terms of quality, cost and services of the car company. The suggestion will influence the buying decision of the customers. Human Resources Plan6.1 Assessing current human resource capacityThe human resource management for our business has verified the business continues becoming all-inclusive. Our Human Resource division will help the Car & Care 4 U develop and turn into one of the biggest dealership company. The first vital piece of the HR arrangement will be to survey the current human asset limit of company. This is the first piece of a human asset plan, and needs to be finished with complete precision. The human resources of the company will be the abilities of the current representatives that are working in the organization. The human asset office needs to direct overviews and expertise tests of every one of specialists present at Car & Care 4 U be it at the bundling division or even the HR division itself. These representatives will then be partitioned into specific expertise sets and afterward separated into gatherings. These gatherings and their ability sets will be broke down by the chain of command, and they will choose whether this current workforce sufficiently gifted to take the task further. Evaluation of the current workforce limit additionally done on the premise of numbers. The human asset division needs to concoct the measure of specialists that are obliged to satisfy the hierarchical arrangement that has made at first. In the event that the quantity of specialists is insufficient, or not sufficiently gifted, the HR office needs to begin enlisting more individuals, and all the more critically the right individuals. The reason for the development of the Human resource is that our company is service providing that also includes the consulting for customers. Therefore, this is more important department of the company. The responsibilities of the HR department are to hire the skilled workforce in area of marketing and management CITATION Chr141 \l 1033 (William, 2014). 6.2 Forecasting HR RequirementsThe following venture for the organization is to gauge staff requirements for the future, and verify the organization keeps on succeeding later on. The key operational objectives of Car & Care 4 U need to be satisfied, and a great deal of talented staff is obliged to attain to those objectives. The human asset needs to evaluate what kind of aptitude set needed. Furthermore, the measure of workforce that needs with a specific end goal to attain to the objectives and techniques that had arranged already. Car & Care 4 U is an organization meaning to create and develop a strong relationships with the international companies and loyal customers on a national level, and it is essential for the human asset division to search for the right individuals to fill the occupations that will made by these opportunities. The HR prerequisites for administrative positions must be exceptionally solid, in light of the fact that chiefs are a standout amongst the most critical parts of the globalization, and they need to persuade the workforce and make them work. Normal abilities need for a few employments, in the same way, as supervisors oblige motivational and administration aptitudes to verify they can make their cooperation at the ideal level. The good dealing with the mangers and the sales officers of Volvo, Ford, General Motors and other companies requires the intelligent and sharp representatives of the company. The HR division will search for individuals with the right aptitude set to fill those parts and take the organization forward. In the current economy, it is imperative that the HR office verifies there are no additional individuals working in the organization. Human Resources need to verify they survey things to the greatest, and no issues make later on for the organization. Staff will be lessened by appraisal gave by the HR division. Errands will assign to the workers and work units will further redesigned to verify that they work proficiently and successfully. 6.3 Training and RecruitmentThe marketing department of the business needs training and development to mature the client. Experts require for the online quires and face-to-face meetings with the clients and the officials of the company. The new employees need training about the nature of the business and the market. The main purpose of the HR department is to give strength to the marketing department for the development of the business. Therefore, the establishment of the unit of Human resources is mandatory. Moreover, Car & Car 4 U is going to get dealership of five different companies. Therefore, the customer pools are also large. Moreover, business is also providing additional services to the customers so this is not a small size business or dealership estate. Therefore, the company needs expertise in different areas like marketing, service department, claim & insurance department, information technology department and different counters for each car company like General Motors, Ford etc. the complete hierarchy need to train according to the environment and nature of the business. This will upgrade the execution of these people and inevitably make them more suitable for the occupation once they know their aptitudes, realize what they have to enhance and know the level of their change once they take the preparation. The HR department at Car & Care 4 U will create opportunities for employees, and promote job opportunities in a way that more and more people will apply for the job. This increases the chance of finding the perfect employee that matches the skill set of the requirements. The HR department will try to collaborate with other companies and educational institutes that will provide us with fresh graduates who want to work with us and help company to become one of the largest dealers at national or international level in future. Training and Development undoubtedly plays a vital role in the success or failure of an organization. This implies that if human capital is giving their maximum input, the company can save costs, improve This suggests that if human capital is giving their greatest info, the organization can spare expenses, enhance techniques and verify that its ability is held. To guarantee that the organization enlists the right ability, it is imperative to draw in the right ability evaluate it as indicated by the needs, values and prerequisites of the business so the individuals contracted are suitable for the business. Additionally, the preparation necessities of the workers are likewise decides by present and craved aptitudes to fill the crevice between them. For this reason, Training Need Analysis must lead at a broad level so that key ability distinguishes and creates by requirements. Financial PlanFor the starting of the business and establishment of the office there are some expenses that must occurred at the start up of the business. These expenses includes the legal fees, registration of the business, furniture and fixture, office supplies, rent of office, advertisement expenses and others. It estimates that the initial cost for the setup of the business is approximately $ 12,200. These are the expenses occur on the establishment and legal requirements of the business. The estimated cost for the start up assets is approximately $117,800. Therefore, the total of cast or assets requires for the start up of the business is worth $130,000. ConclusionIt concludes that this business is very feasible to start according to eh current environment of the market of Saudi Arabia. The government is giving advantages to the companies to work in Saudi Arabia. All the circumstances & marketing analysis of the market show positivity in the growth of the market and business. Moreover, efficient use of the technology in the market supports to gain the competitive advantage for the company. The car dealership business is suitable to start because the market has potential and it needs of the small amount to start the business. References BIBLIOGRAPHY \l 1033 Automotive Report. (2015). Saudi Arabia Automotive. Retrieved March 10, 2015, from Automotive Report. (2015). Saudi Arabia Automotive. Retrieved March 3, 2015, from Bueno, B., & Jeffrey, S. (2015). 52 Types of Marketing Strategies. Retrieved MArch 10, 2015, from Business Monitor International . (2015). Saudi Arabia Autos Report Q1 2015. Retrieved March 3, 2015, from Business Monitor International. (2015). Saudi Arabia Autos Report Q1 2015. Retrieved March 10, 2015, from Hana, W. (2015). Eight trends shaping digital marketing in the auto industry. Retrieved March 10, 2015, from Know-It-Alls, F. (2008). Billboard Advertising for Know-It-Alls. Filiquarian Publishing. Koekemoer, L. (2004). Marketing Communications. Juta Academic. Legget, D. (2012). SAUDI ARABIA: Isuzu to build trucks locally. Retrieved March 10, 2015, from Legget, D. (2012). SAUDI ARABIA: Isuzu to build trucks locally. Retrieved March 3, 2015, from Moran, M., & Hunt, B. (2014). Search Engine Marketing, Inc.: Driving Search Traffic to Your Company's Website (3rd Edition) (IBM Press). IBM Press. Roberts, G. (2013). SAUDI ARABIA: KAEC to build Volvo/Renault truck plant. Retrieved March 10, 2015, from Roberts, G. (2013). SAUDI ARABIA: KAEC to build Volvo/Renault truck plant. Retrieved March 3, 2015, from Saudi Arabian Business Counci. (2015). Saudi Arabia Spearheading Development of Middle East Automotive Market. Retrieved March 3, 2015, from William, C. (2014). Saudi Arabia – A Booming Market and New Auto Manufacturing Hub for the Middle East . Retrieved March 3, 2015, from

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