D Marks MGMT 311 Module 9 Marketing Plan

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Feb 20, 2024

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Running head: CAR WASH MARKETING 101 1 Car Wash Marketing 101 Derell T. Marks Embry-Riddle Aeronautical University
CAR WASH MARKETING 101 2 Car Wash Marketing 101 1. Executive Summary When considering the steps that should be taken to care for one’s investments, the importance of maintaining a clean vehicle should be at the forefront of everyone’s minds. Not only does a nice car wash enhance the visible appearance of a vehicle, but it also aids in the extending lifespan of a vehicle by removing both materials as well as natural minerals that support the accumulation of things such as rust. Car wash services aren’t one of those run of the mill things that society can simply exist without, instead it’s a service that is needed by both the individual and businesses of numerous fashions. This plan will provide a sound point A-to-B approach to delivering a service to our customers that will help them understand why it’s imperative that they utilize our services. 2. Situation Analysis In order to fully understand the importance of a car washing service, it’s imperative that there is light shed on the number of vehicles that exist in society. For example, in the United States (US) alone, there were “273.6 million vehicles were registered here in 2018”, (Statista Research Department, 2020). Understandably, the car washing or car cleaning process has been around since the development of the first vehicles, but “there is some debate over when and where the first production line carwash originated, most claim that it was Automobile Laundry, which Frank McCormick and J.W. Hinkle fittingly opened in Detroit, Michigan, in 1914”, (Tharp et la, 2019). Regardless of who originally founded this process, it’s clear that they understood the importance of having a clean vehicle as well as creating a service that will continue to grow into what we know it as in current times.
CAR WASH MARKETING 101 3 With a general understanding that reason for car washing may to simply display personal pride and showmanship of your vehicle, there is also the facts that maintaining a clean vehicle to “include being environmentally conscious, saving time, and protecting the resale value of your car”, (magicsudscarwash.net, 2016). With these reasons in mind, individuals as well as companies can pursue attaining both normal washes or getting what’s called a detailed wash, which is often referred to as a vehicle detailing. Normal washes typically take anywhere from 5 to 20 minutes to complete and prices range from as low as $5 to $20, depending on the location of the service, and often vehicle size. The name detail when referencing car washes means exactly that, it’s more detailed for a more thorough cleaning and price ranges for this can often times start in the hundred-dollar range, last for hours, and also varies by vehicle size. With normal washes or detailed washes, both can be conducted by the hand washing technique or by machine or automatic wash system. Like most services, the car washing industry is a specialization that should be left to the professionals and they should be the ones to inform individuals on the best means of cleaning for their vehicle, whether it’s by hand or machine. Each method of cleaning has both pros and cons associated with the process, but in the current times “when the pros and cons of automated carwashing and hand carwashing are compared that the use of an automated carwash is best in the current era”, (Tharp et la, 2019). This may perhaps be because people are on the go more often now, versus the lifestyles of vehicle owners in past years. When considering either hand washing, versus machine washing, versus detailed washing, as compared to normal washing, the primary concern from a business standpoint is how much money will this operation cost me and how much revenue will me or my company generate. While conducting research on best practices and which option seemed to be the most
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CAR WASH MARKETING 101 4 lucrative, it quickly became apparent when I discovered cost associated with hand washing and some potential ethical dilemmas that could be associated with salaries for employees serving at the hand washing stations. Using information based on labor in the United Kingdom, “A £5 car wash employing five workers for 10 hours a day would have a minimum wage bill (at £7.83 an hour for workers over 25) of £391.50”, (Usborne, 2018). In order to cover that bill alone, the employees would need to provide services for approximately 80 cars. The more optimal service to provide would be an automatic machine-washing system, primarily because “you can expect to invest approximately $42,000 per bay for the construction of automatic units”, (Moore, 2019). Besides the availability to provide services to customers being enhanced by opting to utilize the automatic washing system, moral factors, there are still hazards associated with this kind of service that one must consider. Variables such as chemical allergies, the danger of moving vehicles to employees, and prolonged environmental exposure to employees whether hot or cold are the biggest hazards to employees of hand wash operations. Environmental hazards associated with car washing operations as a whole, are the large amounts of water consumption, which could be combated by government officials by way of “a water use policy that internalizes micro water recycling schemes in public water use as a means of reducing water demand, harvesting and wastage”, (Ndi, 2018). 3. SWOT Analysis Strength Provide a service that is needed by the masses Service availability maximized to meet the needs of customers Does not require must involvement from employees Weakness Limited job opportunity for employees as compared to handwash Limited on site human assistance if needed
CAR WASH MARKETING 101 5 Opportunity Large potential user base given the fact a lot of us are working professionals with busy schedules to keep Threat Other automatic wash companies, that offer services we are employing 4. Business Objective The car washing industry is already a thriving market that has limitless potential. The consumers of this market range from the individual, to large businesses that utilize vehicles or purchase and sell vehicles. The proposed plan of identifying this business objective would be divided into stages: Stage 1 – Grab the attention of consumers in month 1. This would be a new location, we need to focus on placing some importance to our brand and the services we are providing. Stage 2 – Taking the market share, midway through month 1 and continuing through month 2. Customers would be impressed by our services, providing us the most adventageous time to further sell our brand and modify any problems we occurred in stage 1. Stage 3 – Examining usage in the later part of month 2, continuing through month 3. This is after we have advertised and focused on solidifying our brand name, we access how effective our company has been and review data in regards to revenue lost and generated by the establishment. With this data, we can make any additional adjustments to the delivery of our service to progress our operation in that market. 5. Marketing Strategies Target Market 1 – The large workforce community with limited free time to utilize hand wash services, or too busy to complete washing themselves.
CAR WASH MARKETING 101 6 Target Market 2 – Small business involved with car sales that don’t have the employee staff or resources to conduct their cleaning on their premesis. Target Market 3 – Younger age population, ages 18 – 50. This age group is likely to be working class that will use these services versus the retiree who has time to handwash their vehicles themselves. This service will be geared towards saving time for the customer, so it will definetely capture the attention of consumers because it generates efficiency. There are pre-existing automatic washers, but location is what sets our business apart from the competition. We are offering an easy to use service that appeals to the man or woman on the go, that is concerned with the overall health of their vehicle. Our prices are affordable and will be determined based on location. In locations that the data supports are primarly supported by the individual consumer, we will offer lower pricing. At locations where the primary user seems to be businesses, we can slightly increase prices as well as offer specials to the business owners if they forsee utilizing recurring services at our locations. Using this proposal, we will generate profits from this venture in a measure that we couldn’t have imagined.
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CAR WASH MARKETING 101 7 References Advantages of regularly getting your car washed. (2016, May 2). Retrieved March 15, 2020, from http://www.magicsudscarwash.net/car-washed-regularly/ Moore, J. (2019, April 9). How Much Money Is Needed for a Car Wash Business? Retrieved from https://smallbusiness.chron.com/much-money-needed-car-wash-business- 21610.html Ndi, H. N., & Ndi, H. N. (2018). Estimating wasteful water use from car washing points on the water supply system of yaounde, cameroon. Geojournal, 83(1), 1-12. doi:10.1007/s10708-016-9753-8 Statista Research Department. (2020, March 12). Number of cars in U.S. Retrieved March 14, 2020, from https://www.statista.com/statistics/183505/number-of-vehicles-in-the-united- states-since-1990/ Tharp, B. D., Gaudreau, B. S., Rassamni, B. A. J., DiPaolo, B. R., Delgado, B. M., Garves, B. E., … ByMichael Ford. (2019, October 21). A brief history of American carwashing. Retrieved March 15, 2020, from https://www.carwash.com/brief-history-american- carwashing/ Tharp, B. D., Gaudreau, B. S., Rassamni, B. A. J., DiPaolo, B. R., Delgado, B. M., Garves, B. E., … Kusek, B. M. (2017, January 27). Automated carwashing vs. hand washing. Retrieved from https://www.carwash.com/automated-carwashing-vs-hand-washing/ Usborne, S. (2018, July 16). What is the true human cost of your £5 hand car wash? Retrieved January 19, 2020, from https://www.theguardian.com/world/2018/jul/16/true-human- cost-5-pound-hand-car-wash-modern-slavery