Petrol Head School

Business Report
Yassine Bzioui, Sabrine Elhadi
12/14/2018
MRK430 Final project
Table of Contents
A. Situation Analysis ........................................................................................................................... 5

Company Analysis ........................................................................................................................... 5

Customer Analysis ........................................................................................................................... 7

Competitor Analysis......................................................................................................................... 9

Political Factors ............................................................................................................................ 9

Economic Factors ....................................................................................................................... 10

Social Factors ............................................................................................................................. 10

Technological Factors ................................................................................................................ 12

SWOT Analysis ............................................................................................................................. 12

Strengths :................................................................................................................................... 12

 Patent ..................................................................................................................................... 12

this graph below shows the process of filing a patent in Morocco ............................................ 12

Weaknesses ................................................................................................................................ 12

Opportunities .............................................................................................................................. 13

Threats ........................................................................................................................................ 13

The SWOT Matrix ..................................................................................................................... 13

Market Segmentation ......................................................................................................................... 14

Consumer Market Segmentation .................................................................................................... 14

Business Market Segmentation ...................................................................................................... 15

Goals .................................................................................................................................................. 15

Price................................................................................................................................................ 15

Distribution (Place) ........................................................................................................................ 16

Promotion ....................................................................................................................................... 16
 Introduction
The purpose of writing this report is to describe the importance of launching a drift school in
Morocco. This experience will allow a great number of young passionate car lovers to have a
look at this service and get the maximum benefits since it is the first drifting school in Morocco
providing special drift classes “Petrol Head School «and allowing car enthusiasts to rent drifting
cars and enjoy their passion .
This report consists of one part (Situation analysis) which describes the different analysis
(Company, customer, competitor), factors (political, economic, social, and technological),
SWOT analysis & matrix, consumer & business market segmentation, finally distribution and
promotion.
 A. Situation Analysis

Company Analysis
Goal :
 We want to become the first option of entertainment for all young people. We
want to be the alternative, new, and most enjoyable place, where everything is
possible, where the people take the risk to join the adventure of drifting.
Focus :

 Give our customers a new option of entertainment, which they can enjoy during
the whole day. We want to delight them, making them live a high adrenaline
adventure that they will never forget. Always having all the security that assures
our clients the best service, allowing them to live their moment.

Culture :

Our culture is being a strong family with a feeling of togetherness and other principles and
values;
 Ethics : Ensure that our business will have a certain required level of trust and respect that
will flow in our company . We will ensure that no descrimination will occur between employees.
 Integrity: Keeping to one's word, promises and agreements.
 Respect: Giving due respect to self and others (employees, customers…) and maintaining
the environment of team work and continuous growth.
 Transparency :Doesn’t just help businesses to become financially successful , it makes them
good citizens .And good citizens never go out of business.
 Team spirit: Daily, let us work together in the same DIRECTION. Creating synergies in a spirit
of mutual assistance, Exchange and compliance.
 Responsibility:At any time, to honour our commitments , will satisfy our shareholders ,
customers, and partners , anticipate the impact of our decisions and assume the consequences
of our acts .
 Equity:In all transparency, recognize the performance a management based on equality of
opportunity, transparency, recognition , merit and development.
 Innovation:All creatives anticipate, develop and move forward,continous process of creating
innovation .

Strengths :
 Uniqueness: our company provides a unique service that has never been in the market.

 Eco-friendly: our company will rely on the use of ecological procedures to reduce the
emission of gas from our cars and will recycle the tires .

 Pioneer in this business: our company is the first one to introduce the new service of
teaching drifting to the industry sector in Morocco.

 Proximity: our company is providing the service in a location that is easily reachable.

 Security: our cars offer a high level security by providing security standards, having
airbags in the car, and being supervised by a professional in the vehicle.

 Diminishing the number of road accidents: by providing this service we are giving
people the chance to practice this sport on a specialized place in order to not practice it
in public spaces and constitute a danger.

 Growing sector : sports sector is growing nowadays and is taken into consideration

 Expertise : Our professional team will ensure that the quality of our service will be
remarkable

Weaknesses:
 Mechanical issues: ensure that our cars are always in an excellent condition.
 Cost issues: it is challenging to raise a beginning capital to finance this project; cost
of maintenance would be costly.
 Material issues: ensure that we are always having enough tires since they get
damaged easily.
 Suppliers : we will need a huge number of tires on weekly basis and we will also
need car parts since our cars can easily be damaged

Market share :
  Since we are the first in the market and there are no competitors, we will be owning
100% of the market share.

Industry Analysis

In Morocco, the economy of sport is becoming more and more important. The sector is
professionalizing and the country organizes several continental and international
competitions. Morocco shows a real desire to be one of the influential countries of the African
continent, especially through sport.Also more and more companies are showing great interest
in promoting sport. The recent creation of several sports communication and marketing
consultancy firms demonstrates a new strategy for large groups. For several years, the
Moroccan state has been trying to build a real sports economy in Morocco. Maroc Telecom is
the partner of the Royal Moroccan Football Federation. Other major Moroccan sponsors
include Moroccan Games and Sports, Royal Air Maroc, and La Banque Populaire. The city of
Casablanca hosted in 2017 the second edition of the largest International Exhibition of Sport
and Leisure in Africa. For the next edition, there is talk of founding an Association of actors
of sport business in Morocco.

Costumer analysis
  Number:
Based on the estimation that we took into consideration for our business, the results are
shown below:
We are opening 3 times a week , from 8 AM to 10PM , this means that we would be
operating 14 hours per day.
Within those 14 hours daily, we have 2 groups to mentor of 10 adherents each. Each session
lasts 2 hours. For the remaining 10 hours , they will be divided into 15 mins sessions. These
estimations leaves us with a total number of 960 customers per week.

 Type

Our business is exceptionally adaptable, and it's reasonable for various people.
Vehicle fans, maintenance operators, and those with a feeling of energy can profit
enormously from joining a Drifting school.
customer profile :
Sex: male and female.
Age: 18 to 60 years.
Status: middle and high class.

 Value drivers

By giving our customers the ability to practice their favorite sport and giving them a
professional know how.

 Decision process

1. Objective:
Our main objective is to offer new concept of entertainment in Morocco, Drifting
is a wildly known concept and practiced by a large number of people. Fortunately
for our case, we would be the first to introduce it to the market.
2. Decision making at strategic and tactical level :
 To achieve our objective, we must implement our business idea by starting this
Drifting school.
3. Decision making at operational level :
Analyzing the market, estimating the costs, and coming up with a business plan.

Competitor Analysis
 Market position:

Being the first one to enter the market ensure us that we will be the leaders, and
providing the service in the best way possible will ensure us to stay the leaders.

 Strengths :
the ability of our competitors to copy our services and business plan.

 Weaknesses
Monopolizing the market our potential future compititors will have difficulties in entering
the market

 Market shares
Since we don’t have competitors , they don’t occupy the market.

Political Factors
 tax policy :
The sale of our business's share will be taxed at 10% according to the corporate taxes
of the Moroccan tax system.

 Employment laws :
Morocco does not pursue an explicit authorized wage control standards aside from the
lowest pay permitted by law. Subsequently, bosses and workers are allowed to choose
the business terms of work. Employees get paid once per month.
  political stability :
Morocco is known for it’s political stability, therefore it is safe to invest in.

Economic Factors

 economic growth

As of late, the Moroccan economy has been described by large scale financial
soundness and low dimensions of swelling. The Moroccan economy stays strong and
primarily depends on fares, a blast in private speculation and the travel industry. In the
wake of being hit by a dry spell in 2016, which prompted a log jam in GDP
development, monetary movement has grabbed again in 2017 with development
anticipated at 4.4% as indicated by IMF and 4% as per Moroccan High Planning
Commission.

 trade restrictions and tariffs

To invest in the sport sector the Moroccan government requires no authorization, the only
authorization we need is from the royal association of drifting in morocco and from the
stadium of molay abdalah to rent the place

Social Factors

 health consciousness

we would assure safety of our customers by providing the best precaution conditions
such as:
surrounding the circuit with tires in order to diminish the impact of the crash..
making sure that our staff and customers are wearing the appropriate safety
equipment.
 Population growth rate :
The current population of Morocco is 36,389,665 as of Tuesday, December 11, 2018, based on the
latest United Nations estimates. Morocco population is equivalent to 0.47% of the total world
population. The median age in Morocco is 28.3 years. The graph below shows that the yearly
growth rate in 2018 is 1.27%.

 Age distribution :

Morocco is a demographically young country with 27% of its population under the age
of 15, 18% between the ages of 15 and 24, 42% between 25 and 54 years old, 7% between the
ages of 55 and 64 and just 6% 65 years and older.

 Career attitudes :
In order for a business to be successful , positivity and motivation are key elements.
Our goal is to maintain three main attitudes in our staff , which are job satisfaction, job
involvement in order to be directly involved in the activities and give the best. Finally,
organizational commitment , so that even if a competitor enters the market , our
personnel wouldn’t be tempted to switch the organization.
Having these type of attitudes internally , would reflect positively to our customers
because we would have a synergy between our team members and employees.
Technological Factors

SWOT Analysis

Strengths :

 Patent

this graph below shows the process of filing a patent in Morocco

 Strong brand name :

our brand name « Petrol Heads » reperesents the community of people who enjoy
drifting, therefore it is not just a random name, but it has a meaning behind it. Also, it
is easy to remember and pronounce.
 good reputation among customers
since we are a new business and lead by passion , also we are the first to
introduce this new concept. It would be possible to easily gain a good
reputation.

Weaknesses
 lack of patent protection :
 in general , Moroccan authorities are not as strict as they should be about laws and
regulations. Therefore it is hard to protect your business.
 high cost structure :
since we are starting from scratch, it is a bit challenging to raise initial capital .
 Poor reputation among customers Since we are new in the market, customers will
hesitate before trusting us.

Opportunities
 Practicing Drifting in roads shows that the customers have a need to practice this
sport in a place where it will be less dangerous for them and people around them.
 If the business runs well, we may expand our working hours to start operating for
the whole week instead of just 3 days .

Threats

shifts in consumer tastes away from the firm's service :

since we are the only one providing these services , I don’t think that our customers
would discard our services. Also, innovation is key in our business, therefore we’ll always
introduce new concepts to keep the adventure thrilling.
Karting :
Karting businesses constitute a threat for our business, since they are also giving high
adrenaline experience.

The SWOT Matrix

S-O strategies:
 if our business runs well we will try to expand our location by creating a
second one in CASABLANCA since it’s close to us and is a great target
market
W-O strategies
  To overcome our weaknesses we will try to be the best and convince our
customers that we are the best so if ever we have competition our customers
will stay loyal to us
S-T strategies
 By providing and exceptional experience and deffrtiating ourselves from the karting
sport we will overcome our threats
W-T strategies
 By gaining reputation and gaining the knowhow with time we will
overcome our weaknesses and make them strengths

Market Segmentation
Description
We are targeting male and female from 18 to 60, who are more interested in an adventurous
lifestyle.
Percent of sales :
Hours price Total income
Leasing 10 hours 8000 MAD
Courses 4 hours 750 MAD
Total 14 hours - 8750MAD

What they want:

Our customers want intense high adrenaline experience, and unforgettable moments.
How they use the service:
By using our cars following the instruction of our professionals
How to reach the desired customers:
Conducting an advertising campaign. Also,relying heavily on social media since our target
market contains mainly millenials. Sponsoring all the event related to cars .
Price sensitivity
Since we are targeting the middle and upper class , our costumers arent really sensitive for
prices.Plus, we offer premium services for a quality price.

Consumer Market Segmentation

We are using a Psychographic segmentation since our customers differenciate
themselves with a special lifestyle.
 Our customers are passionate with the feeling of adrenaline and loves taking risk and
extreme sensations.

Business Market Segmentation

Geographic segmentation:
we will be located in the center of Rabat “parking lot of Moulay Abdelah””.Since most of the
Moroccan population is concentrated in Rabat and Casablanca. Therefore, the location that we
chose will make us close to a high density of people

Goals
Our goal is to create a new concept in Morocco, and maintain the leadership status. We are
striving for an image of excellence .Also se want to be the symbol of entertainment and form
professionals that will present Morocco in international events and make them our pride.

Selected Marketing Strategy

We are following a differentiation strategy; this means that we making our customers
experience premium services at a convenient price.

Product (service)
Our business is called Petrol Heads, we are offering a premium drifting service and private
courses. We ensure that our customers would live a special moment while staying safe in an
atmosphere of excitement and joy.

Price
Startup cost
Total price units
Leasing 20.000 MAD -
per month
Cars 150.000 MAD 20
Wages 12.000 MAD 5
Maintenance 5000 MAD -
 Total cost 187.000 MAD

Fees
Regular Fees 200 MAD/15 minutes
Adherent Fees 3000 MAD/month

Our business accept direct cash, and credit cards of all types .

Distribution (Place)
We are located in the parking lot of the stadium “Moulay Abdelah” ,the place is in the
highway making it easy to reach , apart the zoo no other buildings are near us which will
allow us to practice without bothering others
We are relaying on stands as a building which allow us to make and remove the business
easily, our equipments and stands will be stored in a safe closet in the stadium when we don’t
operate

Promotion

Promotion is an important tool to make Petrol head school well known: We are promoting
our drift school by turning our vehicles into a mobile billboard with a vehicle wrap ,

 by using social media (facebook page, instagram page , instagram , twiteer)

we will try to do the buzz in youtube
  Besides social medias we will be sponsoring all events that are related to
cars such as redbull car drift event and WTCC

 We will be running a 15 second advertising on Hit radio that will cost us

3000 dh per month

Public relations

 We will try to build and maintain a good public reputation by being socially
responsible by using public relations trough our various media we will establish and
maintain a relationships with our target market, and build a favorable long term
relationship
 Promotional programs

 We will be having various promotional programs depending on the periods year ,

giving discounts on special days like holidays
 We will be providing loyalty card to our customers and give them special awards
depending on the cumulated points such as free drifting sessions , tickets to car
events …
Budget; determine break-even point for any additional spending
According to previous calculations , we found that our daily revenue is
8750 MAD .therefore, our forecasted monthly revenue is 800.000 MAD. Our variable costs
are 37.000 MAD because we excluded the price of cars since they are a one time expense.
Our contribution margin would be 763.000 MAD, contribution margin means that our
37.000 MAD are covered and still have a margin of 763.000 MAD.
The break-even point would represent our expenses divided by the margin contribution , it
will result in an approximation of 1 which means that we have to operate at minimun one
session to cover up the expenses.
Projected results of the promotional programs.
since we are a new business, startup promotions would represent an incentive to our
customers so they can try our services. This would encourage people to enjoy our activities
and once they’ll experience it , they would most likely come back. Also, providing
promotions to customers would reinforce our relationship of business and customers. It will
make customers even more loyal, and help us spread good words about our business.

Problems and Solutions

In implementing this plant the mainly problem we will face is raising capital and getting a
good price from our suppliers
We will solve the capital issue by trying to get sponsored by Red Bull since it sponsors all
the cars events in morocco, we will also give an early bird discount to our costumers if they
register before the opening of the school so we can raise cash
For the suppliers once we will start our business and build our reputation suppliers will
approach us and try to sponsor us
References
https://en.portal.santandertrade.com/establish-overseas/morocco/tax-system
https://www.expatfocus.com/c/aid=2322/articles/morocco/a-guide-to-employment-laws-in-morocco/
https://www.nordeatrade.com/no/explore-new-market/morocco/economical-context
http://www.rfi.fr/sports/20180104-le-maroc-nouveau-royaume-sport
http://www.ompic.org.ma/en/content/filing-patent-morocco
http://www.worldpopulationreview.com/countries/morocco-population/