CJ’S CAR WASH MARKETING PLAN

Presented to

The Faculty of Entrepreneurship Department

Compostela Valley State College

Montevista Branch

Montevista, Compostela Valley Province

In Partial Fulfillment

of the Requirements of ABM 4 for the Degree

Bachelor of Science in Entrepreneurship

Claro B. Cosadio Jr.

Jhon Dave Salacup

December 18, 2020

I.INTRODUCTION

CJ’s Car wash is a business offering for cleaning services. Car washing

techniques vary among individual vehicle owners. Car washing is an essential

function of preventive maintenance. Keeping the exterior of a vehicle clean

prevents rust and oxidation and also reduces the occurrence of fine scratches.

This article attempts to relay the most common method and the significance of

this pastime. Washing a vehicle with soap and a sponge is not the main body

of work.

In fact, this is only the preparation for the real cleaning. Soap and

sponge will not remove all contaminants from a vehicle's surface. The business

will offer of your vehicle is as important as maintaining the vehicle's engine. A

car that runs great and looks good may actually bring in a higher resale value

than a vehicle that runs great but has a poor appearance. A clean vehicle's

paint will last longer and need fewer expensive repairs than paint that is allowed

to become dull and thin due to oxidation.

In today's modern industrial environment the surface of a vehicle is

subjected to daily abuse. The sun beats down on your car all day every day,

pollutants and dirt deeply embed themselves into your paint, and minute slivers

of metal become lodged into your paint which eventually rusts. If you have

owned a white vehicle or have observed one then you may have noticed specks

of rust. Those metal slivers are the cause;

The objective of CJ’s Car Wash Service:

 1. To be viewed as a premium car wash and detail service in km 92. Along

national highway.

2. Maintain a very high gross profit margin.

3. Maintain a modest, steadily growing service to the customers.

4. Expand to two locations after third year of operation.

II. ITERNAL/EXTERNAL ANALYSIS

PRODUCT\SERVICES DESCRIPTION PRICE

CJ’s Carwash: The business is solely @ motor – 50.00

owned by Claro B. Cosadio

 Foam wash @ p-up - 200.00
Jr. and will be funded by an
 Tire wax @ auto – 150.00
initial
 Vacuum @ multicab- 120.00
personal investment. Along

 Liquid shine national Km. 92. Beside @ elf – 250.00

Northwood entrance.
 Tire pressure

check

1. Product\Services Offering
 The business offers a good quality and a better service to the costumer.

The proponents conducted a survey and to test the market if the services is

feasible which turned out in a positive result. The method use of survey is

descriptive-quantitative method with the use of survey questionnaire as an

instrument to gather the needed data in this study. The primary goal of this

business is to take on good services and provide the best quality of carwash

cleaning of vehicles to satisfy the needs and wants of the costumers particularly

owned vehicle. The business is a good idea and opportunity for those who want

to make their vehicles clean and shine with the best customer service.

The initial investment of the CJ’s Car is Php 50,000 which comes from

the owner’s savings. The propose project will be located along national highway

Km. 92 Purok 1, Magsaysay, Nabunturan because it’s near the target market.

The target market of the project is the residents near and entire of Nabunturan

Davao De oro, and will be owned and manage by Claro B. Cosadio Jr.

2. Review of the Current Efforts

a. current sale performance- two years back

2020 2019

Sales of goods and

services 360,000.00 144,000.00

Capital 151,040.00 50,000.00

Gross profit 511,040.00 194,000.00

Operating Expenses 52,800.00 42,960.00

Net profit 458,240.00 151,040.00

Formula: ( per day x no. of days x no. of months )

2019 –sales of goods & services =400/day x 30 days x 12 months =144,000

Capital = 50,000.00

Gross profit = add capital and sales of goods = 122,000.00

Operating Expenses:

 Current bill – 1,500.00 / month x 12 months = 18,000.00

 Rental fee - 1,000 / month x 12 months = 12,000.00

 Car Soap - 600/ month x 12 months = 7,200.00

 Tire black – 400 / month x 12 months = 4,800.00

 Rug - 80 / month x 12 months = 960.00

TOTAL EXPENCES IN 1 YEAR OPERATION = 42,960.00

2020 –sales of goods services =1,000/day x 30 days x 12 months =360,000

Capital = 151,040.00

Gross profit = add capital and sales of goods = 511,040.00

Operating Expences :

 Current bill – 1,500.00 / month x 12 months = 18,000.00

 Rental fee - 1,000 / month x 12 months = 12,000.00

 Car Soap - 1000/ month x 12 months = 12,000.00

  Tire black – 800 / month x 12 months = 9,600.00

Rug - 100 / month x 12 months = 1,200.00

TOTAL EXPENCES IN 1 YEAR OPERATION = 52,800.00

b.Current marketing strategies and activities

The marketing strategy will be to develop brand equity, increase

customer awareness of Cj’s Car wash, and build the customer base. The

strategy will use several different methods to achieve these goals. The business

project will be operated in a sole proprietorship form of business organization.

The proponents will ensure that each task will be divided accordingly in order

for the establishment to be effective and efficient in the operation. The strategy

behind CJ’s Carwash target segmentation is to attract customers who will be

repeat users and will frequent the business in the typically quiet times for a car

wash business.

In order to feel valued, a customer needs to feel that the service being provided

is personalized and recognizes each customer’s individual needs. A

personalized service of CJ’s carwash will usually involve some kind of loyalty

program, and technology making it possible for carwashes to scale up

personalization. A large percentage of a car wash’s profits come from its regular

customers. Treat these customers well by offering a loyalty program that

encourages repeat business, and rewards those that choose your wash over

your competitors. Example of personalized offer freebies of CJ’s car wash

would like to offer to the valued customer will be like; Consider offering a
percentage of profits to a local nonprofit, or providing a discount to veterans

and/or senior citizens.

c. current marketing problems and concerns

Common problems that the car wash usually experience are black out,

shortage of electricity, equipment to be utilized, financial monetary and labor to

operate your business, how you sell up your services to the customers and the

mechanical problem particularly the water pump machine. Many times, it’s the

smallest parts that cause the biggest trouble. For instance, a common issue in

a carwash is that operators tend to either under-grease or over-grease

bearings. In fact, not having a regular or proper greasing schedule for bearings

is generally the leading cause of bearing failure. Another problem area at

carwashes is the vacuums. The most common issue with vacuums is that they

get plugged with the various things customers try to suck up through them.

Although Schaefer notes that the turbine is generally protected and the debris

likely won’t do any damage to the actual equipment, plugged lines are going to

reduce suction power.

Keeping water and chemicals flowing, water and chemicals are the

lifeblood of a carwash. Just like a clogged or damaged artery will cause health

problems in your body, a malfunction in the water and chemical delivery

systems will have similar detrimental effects on a wash. Issue at carwashes

concerns the plumbing of water and chemical injection from the backroom area

to the equipment or system. The key to figuring out the solution is to know where
to look. The knowledge comes from understanding how your feeds and lines

are laid out.

3. Stage in Product Life Cycle

When CJ’s car wash was launched at purok 1, baranggay Magsaysay

Nabunturan, its sales will begin to grow slowly and profit, if any, will be rather

small. This can be attributed to the lead time which is required for marketing

efforts to take effect. At this stage, the CJ’s car wash is new and untested, which

implicates those potential customers may be unwilling or reluctant to avail the

car wash services. A second reason for rather low profitability at the introduction

stage is that the CJ’s car wash is unlikely to be making full use of its services

capacity. As a result, it will be unable to benefit from the economies of scale that

are associated with higher levels of production. The low profitability does also

come from the need to recover development and launch costs. The main priority

of the firm at the introduction stage is to generate widespread awareness of the

services in its target segment and to stimulate trial. CJ’s carwash should focus

its marketing activities on those customers who are readiest to avail. A

phenomenon that has been overshadowed somewhat by the recession and bad

weather is the fact that CJ’s car is now fairly mature. Consider some of the

signs.

In growth stage, CJ’s car wash will usually lift off. This point is called

the take-off point. Profits are generated as sales revenues increase faster than

costs. But competitors will also have had time to assess the product, predict its

impact on the customers and potentially respond with a similar or improved

version of the offering. As a result, the total size of the market tends to grow,

and the new competitors can increase their sales by attracting new customers
rather than undercutting each other on price. An increase in the number of

distribution outlets tends to go in hand with this.

The maturity stage is reached. During this stage, there is a tendency for

CJ’s car wash shop to capture customers from their competitors by undercutting

each other on prices and increasing promotional efforts. As competitive rivalry

intensifies, the weaker competitors are forced out of the market. This point is

known as the shake-out point. Thus, only the strongest players remain to

dominate the more stable services. The maturity stage does usually last longer

than the previous stages, but also poses the strongest challenges to the

marketing: the firm will try to prevent the sales to decline, while maintaining

profitability. The problem at this stage is heavy price competition and resulting

increased services expenditure from all competitors in order to retain services

loyalty.

The decline stage of the services life cycle stages and their marketing

implications are understood properly, the services may have made it to the final

stage of the CJ’s car wash. Usually, the firm will have tried to keep the product

as long as possible in the maturity stage. However, once the net profit of the

services start to fall or profitability can no further be maintained, the decline

stage is reached. This does often happen as a result of the market entry of

substitute products which satisfy customer needs better than the previous

product.

III.COMPETITIVE ANALYSIS
 The business will face direct competition from nearby car wash

businesses as well as other well established competitors in Nabunturan Davao

De Oro. The competitive advantages of CJ’s Car Wash Services will position it

in such a way that it derives along the national road way bound to Butuan and

Davao. In addition, there is no competition within a 3 Kilometer radius. The

business can expect a steady flow of motor vehicles that need to be washed.

Indirect competition will emanate from alternative sources that

customers can get their cars cleaned. Some clients prefer to clean their vehicles

at home; this will form part of the indirect competition that CJ’s Car Wash

Services will face. Indirect competition will also emanate from charitable

fundraisers, large well established car service businesses, ‘Do it yourself’ car

wash services and other similar entities. Informal car wash businesses will also

pose indirect competition for the business.

Product PUROK 9- CAR WASH PUROK 9- CAR WASH

Pob. Nabunturan Pob. Nabunturan
Car wash

services

Target Within 1 week operation Within 1 month operation

Market There are minimum of 200

customers who had their

 There are minimum of 30 vehicles to avail car wash Per

customers who had their month.

vehicles to avail car wash

Per week.

Sales prizes Approximated per vehicles 200 Approximated per vehicle is

pesos to the costumers 200 pesos to the costumers

Distribution None none

network

Promotion They promote their business They promote their business

Through use of tarpaulin Through posting it own social

media plat form

IV. SWOT ANALYSIS

CJ’s carwash is entering their first year of operation. Mark believes that

a comprehensive marketing strategy will be key to the success of the

business. CJ’s carwash offers a premium hand car washing service provided

by a well-known local family. The basic market need is a premium car washing

service that is far less abrasive.

Strengths Weaknesses

 Good relationships with many  The need for reliance on

perspective customers in the outside investors of car wash

target market. services.

 Strong family name  The learning curve associated

recognition and equity in the with entering car wash

community. services without direct prior

experience.

 The need to have a fairly

constant volume of business

car wash to support the

necessary service staff.

Opportunities Threats

 Participation within a steadily  Future/ potential competition

growing industry. from a franchised firm.

 A high likelihood of repeat  A slump in the economy,

business. reducing discretionary

 The ability to decrease the spending.

fixed costs as a percentage of  The perception that there is

an individual sale as volume not a difference in quality

increases. between a hand and machine

wash.
SWOT Weakness/threat Activity to address

weaknesses/threat

 In this matter to avoid reliance of

The need for reliance on outside

investors. outside investors, there should be

financial management strategies.

Like, goals and objectives should be

listed by priority and should be as

specific as possible,

 Income Tax Planning and

 Balance Sheet.

 The learning curve associated

with entering car wash

Turn Your Career or Hobby into a
services without direct prior

experience. Business .A hobby is something you do

for enjoyment when you're not at work.

When you make it your livelihood,

however, you have to be willing to put in the

time it takes to launch a business, please

customers, and meet deadlines. To be

committed, you should have a passion for

what you do."Doing what you love makes

the project not feel like work," says Jen

 Henson, founder of Goal Digger ACT-Prep.

"Pour into the people who would benefit

from your hobby and strive to make their

lives better. That is the success of my

business."

V. MARKETING STRATEGIES/ACTION PLAN

The marketing strategy will be to develop brand equity, increase

customer awareness of CJ’s car wash, and build the customer base. The

strategy will use several different methods to achieve these goals. The car wash

service is hyper-competitive and attracting new customers is difficult and

expensive. Fortunately, there’s a better way to increase revenue for your car

wash. It starts with creating loyal customers.

A.PRODUCT OR SERCVICES

CJ’s Car wash services is a complete car wash company that offers a

wide range of services that revolves around car wash and other

complementary services. We intend giving our customers every reason

to always come back, which is why we have customized our services.

Our customers will definitely maximize their time when they visit our car
wash. These are the services and amenities that will be made available

to our guests;

 Exterior car washing

 Interior cleaning

 Waxing services
 Vehicle detailing

 Self – Service
  Washing of rugs

B. PRICING

Product Price Competitor Value promo

price

 Exterior 70.00 75.00 70.00

car
washing

 Interior 70.00 75.00 70.00

cleaning

 Waxing 50.00 45.00 50.00

services

 Self – 20.00 25.00 20.00

Service

 Washing 30.00 35.00 30.00

of rugs

C. PLACE

It is very crucial to put time and considerable thought into the

area that best suits setting up a car wash business. Suitable places

would be in a busy town or near a gas station on a busy highway.

Consider access to water, supplies, drainage facilities and labor

before setting up your car wash.

Location

CJ’s Car Wash will be located at Purok 1,, Brgy Magsaysay, Nabunturan

Davao de Oro,. The proposed location is in front of Northwood Country homes.

New Vi

This site Recto

Elem.
church school

Daang maharlika highway

Northwood country homes

CHANNEL TYPE PRODUCT/SERVICES CHANNEL SERVICES

 With the self-service car

Self Service car wash wash the car owners This type of car wash is

wash their cars relatively cheap, and

themselves, paying customers have the

separately for options option to wash their car

including soap, brushes, the way they like. This

high pressure water and can be particularly

wax. Other features that important if customers

are frequently available don’t like anyone else

to customers are to handle their vehicle

vacuum cleaners and or it does not fit into

tire inflation. other car wash facilities

The touch less car A touch less automatic

wash involves flexible wash cleans your

machine spray that can vehicle without use of

Touch less Car Wash reach all areas of the bristles or brushes. This

car’s surface using high- is why it is called touch

pressure water jets and less. Instead, the entire

a combination of wash is conducted with

cleaning & polishing chemical

chemicals that are cleaners, pressure

applied onto the car washers.

surface and left to work

on the dirt for just the

 right amount of time. In

general, a touch less

wash takes a little more

time than the traditional

brush wash.

D. PROMOTION

Promotions are an important part of operating a car wash business.

Whether you’ve been open for years or are just starting out, a good marketing

campaign can help you attract loyal customers and drive business.

The CJ’s car wash would likely to avail advertisement on a special over

the radio to catch customers while they’re driving. A lot of people listen to the

radio while they’re driving. This means you may draw a lot of customers into

your business by advertising with a local radio station. Choose 2-3 local radio

stations and call them directly to find out what they charge for radio spots.

Put billboard ads up along local highways and roads. Billboards are a

great way to attract customers since most of the people that see them will

already be in their vehicles. Pick a few locations along the street where located

to let people know that CJ’s car wash business will be notice by nearby drivers.

Include coupons with newspaper ads to attract older drivers. Newspaper

ads are relatively inexpensive compared to other mediums and can draw in

older clientele that like scouring papers for deals.

 CJ’s car wash, will create a Facebook page to advertise deals and attract

views. Facebook is free advertising, and it’s a great way to connect with

potential customers. Create a Facebook business page and start posting free

offers for people that like or share your page. Upload your logo.

The following are some promotional methods that CJ’s car wash

considers:

 Making your car wash’s lot (if traditional) extra appealing to attract

passing customers

 Social media marketing

 Advertising in local papers and magazines

 Flyers

 Local radio advertising

 Tarpaulins

VI. MARKETING BUDGET

This section will offer a financial overview of CJ’s car wash as it relates

to the marketing activities. CJ’s car wash will address Break-even Analysis,

capital forecasts, expense forecasts, and how they relate to the marketing

effort.

MARKETING ACTIVITY TOTAL COST

CAPITAL 50,000.00
EXPENSES 30,800.00 – (machinery )
OTHER EXPENSES 3,580.00/ month
TOTAL MARKETING BUGET= 34,380.00