A Business plan On RAJVEER AUTOMOBILES Pvt. Ltd.

Submitted To:
Prof. V.K. Sapovadia, Prof. Kishor Barad & Prof. Ritu Sharma PGDM Trimester II (Batch 2010-12)

Continuous Evaluation in Business Plan

Submitted By:
Mahesh Savaliya (1011012026)

SHANTI BUSINESS SCHOOL, AHMEDABAD

Executive summary
The Rajveer Automobile Pvt. Ltd. is a start up of the dealership business as a private limited. Its strategy is to serve the premium class niche market of the industry with middle class also. The company would be the dealer of the Volkswagen unit of the Volkswagen Group which is situated in the German. There are many untapped potential markets within the industry that desires the high quality, stylish and world class cars. The company is starting business in India it self because of the higher potential in Indian market caused of the developing country and the population of the country increases rapidly.

The Indian Automobile Industry overview
In 2009, India became the fourth largest exporter of automobiles in Asia after Japan, South Korea and Thailand. The Indian car market was the world's ninth largest in 2008 with an annual production of over 2.3 million units. The amount of passenger cars sales per month exceeded 100,000 units in February 2009. After the liberalization of the Indian economy in 1991, the car market in India has witnessed a tremendous growth due to competition and lesser restrictions. Tata Motors, Maruti Suzuki and Mahindra and Mahindra are some of the India car companies which have expanded their domestic and international business. The government has given up on the restrictions which were levied on the industry.

Company Description:
1. Name: The Rajveer Automobiles Pvt. Ltd. 2. Address: B-79, Surya complexes Corner, Lazamani cross roads, Motavarachha, surat, Gujarat, India ± 394101 3. Contact Number: 0261 2234455/66, 9510959321 4. Web site: www.rajveerautomobiles.com 5. E-mail: rajveer@automobiles.com The Rajveer Automobiles Pvt. Ltd. would be the official dealer of the Volkswagen unit of the Volkswagen Group, located in Germany. The business would contain selling of new cars and service station of the company. The company would be purchased cars from Volkswagen Company with some part of cash and left with the loan amount. The cars would be different in terms of services, promotions than other dealers.

Form of Ownershi
The busi ess ownershi form woul be Pri te Lt would be from all partners and left from bank loan. The inflow of funds

Nature of Business:
The business nature would be of the dealership of the Volkswagen unit of Volkswagen Group. The business will onl Volkswagen cars. sale the car and provides service to

Vision
To be a leading automobile dealer in Gujarat in the forth coming years in the car dealership.

Mission
To acquire and empower the consumers¶ loyalty towards our company through quality advice and superior service.

Start up Cost: Particulars
Expenses
Dealership Royalty legal documentation Stationery etc. Consultants Insurance (office equipment) Office Equipment Advertising Total Start Up Expenses 50000000 23500 4500 45000 100000 300000 2000000 52473000

Rupees

Start Up Assets
Land building & furniture Cash Start-up Inventory Total Assets Total Start up Expense & Assets 23000000 5000000 200000000 50000000
278000000 330473000

Objectives of the company:
The objective and goal of the company would be as followings;  To give the superior quality products and services with affordable price.  To achieve 1,000 unit sales of automobiles in year one.  To increase number of dealership outlets in future.  To convert traditional new automobile buyers into conscientious consumers who are aware of external as well as internal costs associated with automobile transportation.  To get the highest selling of cars with the trust of customers. And attract younger generation people who are quality conscious.

Keys to Success:
The keys to success for the Rajveer Automobile are:  Marketing: Dealing with barriers to entry and solving problems with major advertising and promotion budgets.  Management: Products delivered on time, costs controlled, marketing

budgets managed. There is a fix on growth at the expense of profits.  Excellence: The Company would provide excellent customer service.  Growth: Grow and maintain a referral network of customer

Industry & Market analysis:
The automobile industry today is the most lucrative industry. The Growth trend of the automobile industry is rapidly growing with around 12-15 % per annum. This industry contributes 4 % to the GDP in India. The industry is tenth largest in the world in context of production i.e. approximately 2 million units. So it is high potential that the scope of Dealers and their requirements would be very high to sell off such a huge volume of production. The growth rate is predicted to double by 2015. The current growth rate indicates that by 2012, India will overtake Germany and Japan in sales volume. The investment scenario of the industry also very high and it is expected that investment will be of Rs. 30000 crores. The car market is tremendously changing because of higher demand in the market.

Types of product: 

SUV cars:
These are the Sports Utility Vehicles which are Tiguan, Touareg etc. These cars are selling at 20, 00,000 Lakhs rupees or more. 

Small cars:
These cars are small in terms of size, but price of such are high also. For ex. the polo is of rupees 4, 50,000 and the beetle is of rupees 21, 00,000. 

Sedan cars :
These elegant models from the Volkswagen stable are available in a price range of around twenty Lakhs to twenty seven Lakhs. The example of such like Jetta sedan, beetle, Vento, Volkswagen GTI, Passat, etc. 

Luxury cars:
These cars are very costly by nature of price like 75, 00,000 rupees or above it, for ex. Phaeton. Such cars are high quality featured.

Competitors:
1. 2. 3. 4. 5. 6. 7. 8. 9. Navjivan Hyundai Pvt. Ltd. Landmark Honda Pvt. Ltd. King Ford Automobiles Katariya Automobiles Pvt. Ltd. Veerwheels Pvt. Ltd. Mercedes Benz Showroom Nanavati Automobiles Patel Automobiles Kiran Motors

10. Second hand car fairs

Dealership Players in India:
1. 2. 3. 4. 5. 6. 7. 8. 9. Audi Car Dealers BMW Car Dealers Chevrolet Car Dealers Fiat Car Dealers Hindustan Motors Car Dealers Honda Car Dealers Hyundai Car Dealers Mahindra Car Dealers Maruti Car Dealers

10. Mercedes-Benz Car Dealers 11. Nissan Car Dealers 12. Skoda Car Dealers 13. Tata Car Dealers 14. Toyota Car Dealers

Sales forecast:
The sales forecast of the Rajveer Automobile would be as followings;

Sales Forecast( in units)
Sales
SUVs Small cars Sedan cars Luxury Cars Total Sales

Year 1
80 210 150 50 490

Year 2
110 250 200 70 630

Year 3
150 300 270 120 840

Marketing Strategies of Rajveer Automobiles:
Advertising is one of the most common ways to make car buyer or car enthusiast aware of the new car with special price. The company will organize campaigns, agent, and road shows. The videos are expected to be launched on Facebook, YouTube, and on the car company¶s website as well. Other important marketing strategies would be the packaging, innovations, and quality control. Another more important way of advertising is to create an image or brand image by giving continuous advertise on print media, television, internet, radio, yellow pages, mail marketing.

Promotion Strategies of Rajveer Automobiles:
The Rajveer Automobile will launch the promotional offer like gifts and festival offers, discounting offers, participation in trade fairs and exhibitions, sponsorship, special credit, extended services and warranty of the cars. The company¶s representatives handed out T-shirts and caps to the people etc.

Customer segment
The customers of the company would be divided into various segments as per the types of cars. It is based on SUVs, Small cars, sedan cars and luxury cars. 

SUV cars:
The customers of such would be younger generation within 20 to 35 year age peoples. 

Small cars:
The customers of the small cars would be professional peoples and also middle class people who are price conscious. 

Sedan cars :
The customers of the sedan cars would be the people who are more space conscious and often travelling long run. 

Luxury cars:
The customers of the luxury cars would be the business class peoples and executives, higher class people.