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A

BUSINESS PLAN
ON

LFA AUTOMOBILES Pvt. Ltd.


(

INTRODUCTION
The lfa 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.

COMPANY DESCRIPTION

1. Name: LFA Automobiles Pvt. Ltd.


2. Address: B-13, NH7 , Hosur, India 394101
3. Contact Number: 9524307755, 8148119123
4. Web site: www.lfaautomobiles.com
5. E-mail: lfa@gmail.com
The LFA 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 OWNERSHIP:
The business ownership form would be Private Ltd.
The inflow of funds would be from all partners and left from bank
loan.

NATURE OF BUSINESS:
The business nature would be of the dealership of
the Volkswagen unit of Volkswagen Group. The business will only
sale the car and provides service to Volkswagen cars.

VISION
To be a leading automobile dealer in Hosur 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
Start Up Assets
Land
building & furniture
Cash
Start-up Inventory
Total Assets
Total Start up Expense & Assets

RUPEES
50000000
23500
4500
45000
100000
300000
2000000
52473000
23000000
5000000
200000000
50000000
278000000
330473000

OBJECTIVES

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 lfa 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 2016. The current growth rate indicates that
by 2018, 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.

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.

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. Himavasini Hyundai
2. Amman Cars ( Maruthi Suzuki )
3. Chevrolet Showroom
4. Second hand car sellers
5. Akash Ford
6. True Sai Works ( Tata )
7. Mahindra Cars

SALES FORECAST:
The sales forecast of the lfa Automobile would be as followings;
Sales Forecast( in units)
Sales

Year 1

Year 2

Year 3

SUVs

80

110

150

Small cars

210

250

300

Sedan cars

150

200

270

Luxury Cars

50

70

120

Total Sales

490

630

840

MARKETING STRATEGIES OF LFA 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 companys 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 LFA AUTOMOBILES:


The lfa 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 companys representatives handed out
shirts and caps to the people etc.

THANK YOU

T-