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Executive Summary
This business plan is to provide the guideline for business venturing in motorcycle
workshop which specialize in engine tuning and dynojet test. Common motorcycle
workshop focusing on repair and service job only, however these service not really
give full satisfaction for the customer in term of motor speed, engine health and
achieving optimum performances of their motorcycle. The dynojet test been carry
out to identify the real engine performances while electric control unit (ECU) tuning
involves the modification setting of limit, the mapping of unit air to fuel ratio, the
sensor reading, problem coding and other engine setting to identify the actual engine
performances while upgrading the specification to meet top speed. With the growth
of motorcycle sales unit in Malaysia, it gives significant demand on aftermarket
application services such as maintenance, repair and also dynojet and engine tuning
for motorcycle. Thus, this business emphasis to be service provider on rapidly
growing demand among motorcycle owner for speed and performances as it is
actually needed in automotive aftermarket application.
1.0 Introduction
This business plan is developed to provide business framework in term of sales and
marketing, financial and operation structure for my partner Mr Rizal in venturing
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business start-up in motorcycle workshop specialize for engine tuning and dynojet
test which located in Tongkang Pechah, Batu Pahat Johor.
Department of Statistic Malaysia has made a survey to estimate the magnitude and
sales changes of automotive subsector or aftermarket application services such as
repair and service for motorcycle with the sales of the motorcycle. It turns out this
subsector have positive correlation coefficient of 0.97 (BH Online, 2020).
Motorcycle is a small but complex machine like other motor vehicle. It can’t serve
continuously without proper service and maintenance. The motorcycle workshop
backing up the industry of motorcycle sales as automotive aftermarket application
services. In Malaysia, after service sales by motorcycle brands center offer solution
for manufacturing defects, general and scheduled maintenance but do not have the
service for tuning and dynojet test.
RZ Motor Engine and Performances Sdn Bhd are strive to be leading in engine
tuning and performances workshop in Johor.
1.3.3 Missions
The company’s mission are to offer the high value preposition of all the services and
spare part use through positive consultation and honesty, to create most efficient and
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conducive workplace for the team and last but not least to be one stop centre for
motorcycle’s owner to do check the motorcycle performances, condition and repair
the damage.
The objectives for venturing this business field is provide the more option and
choices of service offer in motorcycle workshop other than repair work. Maintenance
and engine diagnose are necessary to identify the actual problems of the motorcycle
to avoid unnecessary modification and change of parts. The thorough diagnose from
dyno test or ECU aftermarket tuning will help customer to get to know the actual
engine conditions which are not physically detectable before proceed to upgrade
specification and modification job for their motorcycle. It also helps the customer to
have preventive maintenance schedules and minimizing indirect cost for future
failure.
This business is new start up business. The business plan will help the owner in
business decision and setting up the company framework for operation, sales and
marketing and also the financial management.
Different from traditional and common workshop, the company will focus
motorcycle dyno test and recalibrating engine performance (tuning) as the main
business activity. The spare parts installation and consultation are concurrent
activities as customer can do their upgrading specification and modification job dyno
services. The installation of spare part and repairing of motorcycle will be the minor
business activities.
1.4.2 Marketing
For marketing, the main marketing activity are social media and content marketing
are widely use in this Industrial Revolution 4.0. Other than that, good rapport and
testimony from previous customer also create good marketing strategy as they will
help us to gain more customer by informing the others about our services by
providing good review and comment. Last but not least is the designing program for
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referral and membership for loyal customer. The warranty period will be given to
customer for their purchase and service build trustworthy and satisfaction for
customer experience.
1.5 Justification
This chapter will be discussion about on the automotive for motorcycle service,
dynojet and Electric Control Unit (ECU), market analysis on motorcycle workshop,
target market, competitor analysis, workshop life cycle, literature review on the
motorcycle workshop, market research, proposed new services and overall marketing
strategy.
The reflash tuning service is now common, however the workshop that provide ECU
tuning aftermarket and dyno test is very few. Based on observation and location
overview made, there are 27 registered motorcycle workshops, 7 spare part and
accessories shop and 3 workshop provided service for dyno, while in Tongkang
Pechah area, only have 7 workshop but no dyno test service provided.
Malaysia’s two wheeler market was valued USD 0.81 billion in 2019 and is forecast
to grow Compound Annual Growth Rate (CAGR) of 8.96% until 2025 (Research and
Market, 2021). The number of motorcycle sales in Johor from 1996 until September
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2018 is 1,919,590.000 units and Johor Bahru and Batu Pahat recorded the highest
sales in the state (Malaysian Automotive Association, 2018).
There are tremendous pressure upon the automotive manufacturers for improving the
quality with increasing of global concern for eco-friendly products. Dynometer plays
the key role in research and development facilities across automotive manufacturing
activity for attempts to makes the efficient engines, noise control and emission of
exhaust gases. This industry is now growing in Malaysia’s automotive aftermarket
application and become more popular among the motorcycle rider because vehicle
owner are becoming more aware about the perks of engine remapping and dyno
services (Market Watch News Department, 2021). Such tendencies are driving the
performance dyno and remapping tuning service market demand. Soaring popularity
of ECU tuning among automotive enthusiast encouraging the workshop to
collaborate with regulated ECU tuning and dynojet machine dealer (Future Market
Insight, 2021). This collaboration will elevate the market sale in long time especially
in Batu Pahat area where the ownership of motorcycle is high while the service
provider for tuning and dyno jest test is limited.
2.3.1.1 Strength
The company offer various services such as ECU Tuning, dynojet test, selling of
spare parts and accessories also the minor and major repair or service maintenance. It
became unique selling proposition because not many workshop provide all the
services in one premise because of business license limitation. The company have
systematic daily operation, skilful foreman and specialized equipment and tools that
make the customer feel at ease and trustworthy. One of the most important
components of marketing mix is location. Located in strategic location, which near
the main road, it become the perspective of customer convenience.
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2.3.1.2 Weaknesses
As a new player, owner still has lack of experience business management. With the
low of business connection from the start, the company might be struggle to
introduce the business to the potential customer. Other than that business resources is
also limited. There are many machinery that needed for the operation such as plotting
engine block, skimming, and tyre opener automatic machine. But, over time with the
income generate from the business, company will slowly purchase the machinery as
company assets.
2.3.1.3 Threat
Risk for start-up in automotive fields because the rapid in technology changes trends.
Not only need keep up with the trends but also the issues of old trends inventories.
Other than that is customer’s comeback for warranty work. It is understandable but
the worst result will lead to loss of business due to bad reputation or at very least lost
productivity because all the overhead checking and repair work are incurred no profit
gain. But quality assurance and control measures will prevents the warranty problem
at lowest possible.
2.3.1.4 Opportunities
This analysis was conducted for better and strategic business decision making,
planning marketing activities to be conducted and improve efficiency by studying the
various factor which may influence the business.
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The reopening of sector in recovery economic phase past MCO will allow the
business regrowth for all sector including automotive and its subsector. Spare parts
and accessories is the interchangeable part that sell and used in repair and
replacement for fail units and very important is supply chain for manufacturing and
sales of motorcycle. Growing disposable income among the population in Batu Pahat
which have average of RM7,392 according to Survey Report of Household Income
and Basic Amenities by State and Administrative District by allows the people to
spend more on the need for upgrading the vehicle specification for daily use
(Department of Statistics, 2019).
2.3.2.4 Technology
Very rapid technology advances from continuous work and dedication from the local
automotive engineer and software developer provide variety of choice for the
consumer to decide ECU brands as they pleased. There are also a manufacturing
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company that offer equipped machine for dynometer test with very competitive
price. These 2 factors will help business as the workshop will adapt this technology
advancement. Air to fuel can be check by meter wideband however the ignition
timing must be check by dynometer test. Again the technology by dyno test and
result by graph reading is more accurate consistent and safe than on the road tuning.
For this business type, there are more of direct competitor rather than indirect
competitor because we provide more on service type business. Offering same
product and services, the direct competitors also have similar prices, marketing
strategy and functionality.
Located in Taman Sri Jaya, Sim Motor is a motorcycle repair centre which also
provided motorcycle parts and accessories. One for the advantages of this company
is business connections. It is very popular among the motorcycle rider in Batu Pahat
as they sell many latest and in trend accessories in various brands and colours. Sim
Motor actively promoted their products and service using social media and e-
commerce platform. With strong marketing strategy in social media, the company
have good reputation and big prospect as spare parts and accessories main seller in
Batu Pahat.
5ive Garage is one of the workshops in Batu Pahat that provide service for dyno and
tuning which have customer connections advantages where their customer comes
from Batu Pahat, Ayer Hitam and Kluang. However, with limited machine capacity
and technician to do the dyno and tuning job, the workshop only limit their service
for 4-5 customers per day. The company is popular and have prestigious reputation
among motorcycle owner with the service for upgrading the full accessories
specification. With various ECU aftermarket and accessories offer, this company is
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one of the best workshop in Batu Pahat that provide full aftermarket application
services.
2.5.1 Population
The main target market for the business are people around Batu Pahat, Kluang and
Ayer Hitam. The young Malay mans in the age range from 18 to 45 years old are
targeted to become the potential customer for the business. Other than that the
business targeted the motor group members because these people have knowledge
about dyno jet test and ECU tuning. They also have more tendency and interest to get
the service and do modification for spare parts and accessories to fulfil their interest
and passion.
The change of ECU from factory to aftermarket not only for sake of motorcycle
speed only but also helps to maintain and engine care from the start. Motorcycle
from the factory is usually safe but not really satisfy the needs and demands of the
customer. It is become trends and advantage for the workshop whom has this
services in their workshop as it is crucial for the motorcycle owner to get actual
diagnosis of their overall engine performances. Sales can also generate by the
recommended repairs and other services. Increasing of repair recommendation
capture rate result in a positive increase in sales volume. The foreman can
communicate with customer the benefits of the service by present the visual
representation of the engine problem by dyno test and tuning and also the
ramifications of not performing the services.
2.5.2.2 Price
One of the component of market penetration is price or customer cost. There are
many factor involves in setting the price such as what the market will to bear, cost
providing services must be controlled, the high price will affect demand and sales
volume, also perceiving the value proposition to influence purchasing decision. Thus,
from all factors taken into consideration, for the price range, for dyno jet test is
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RM250.00 and RM300 starting price for ECU unit from top brands. Usually the
basic dyno and tuning works including some of modification will cost about RM
1000.00 including the labour cost. For the spare part and accessories, it will be
standard as per in market price, the company will focus on labour work to get profit.
The full price for major modification will cost customer up to RM7000.00 including
the upgrade and installation of new accessories. The sales projected from the number
of dyno test carry out by modification job, ECU unit selling and also spare parts and
accessories sales.
2.5.2.3 People
Everyone loves promotion and discounts. The company will gives the special price
and design packages for the services and products sell. The good rapport is important
for the business as customer will come back and suggest RZ Workshop to service
and repair job. The company will design some membership program as customer will
gets special discounts and free gift whenever they buy or do services at the
workshop.
For the industry life cycle for the company’s business involved 5 stages which are
introduction stages, growth stages, and the establishment, expansion and decline
stages. For introduction stages, since company does not have experience and lack of
customer, the main focus is only for establishing customer base and market presence
at the same time conserving the cash flows records. In the growth phases, there are
increase of customer and demand for services. It is important to elevate customer
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service, preserve good relationship with the customer and at the same time increase
the performances of all department. Next, the company is well known and become
the main player in the industry, business become more stable and regular customer
contribute to the main income of the company. However the main issues is the
competitor that offer more competitive price and more advance technology services.
Besides, in expansion phases, company ready to expand the premises space, the
product and services or even open the new branch. Lastly is the decline stage.
Instability of the market and economy effect the business operation so in this stage,
company are prepared for market exit.
Dyno test is done to identify how engine supply power using the graph chart reading.
Usually with the data from the dyno test, the technician or foreman are able to
understand the real engine performance of the vehicle like running the engine on the
road. This test also one of the preventive maintenance measure and need to revise
frequently to eliminate the failures and damages for engine vehicles in the future.
The Electric Control Unit (ECU) tuning involves the modification setting of limit,
the mapping of unit air to fuel ratio, the sensor reading, problem coding and other
engine setting with regard to type and vehicle model. The function of this tuning job
are to remove RPM restriction from the factory ECU and extended the power of
RPM limit. This job can helps to improve the strategy of gear shift and increase
potential of top speed for motorcycle performances.
The target respondent is Malaysian with the age above 18 years old. The survey was
distribute randomly to people around Batu Pahat. The main reasons for the survey is
to get early idea of people about tuning and dynojet test for the motorcycle engine.
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Total population in Batu Pahat is 417,458 peoples (Majlis Perbandaran Batu Pahat,
2021).
The objective of the market research is to identify the need for the tuning, dynojet
also the repairing services for the motorcycle and also help to get general idea about
acceptance of the service and products from its start. The survey both using the
printed survey form and also the only Google Form application for better approach.
Company will strive to provide more business service and explore for more fields
such as engineering for skimming, plotting the engine block services as they also as
value added asset for the company. Other than that, the company will provide the
service for endorsement of vehicle to be on the road usage. Usually the vehicle that
went through for big modification on engine and exhaust performances are not
eligible to be use on the road. But with endorsement and service check from the
workshop with some modification and tuning, some of it can be sell and be use on
the road.
Content marketing is one of the marketing strategy where the company produces the
informative content that target audience joy. Reports for the Content Marketing
Institute, the content marketing such as videos, infographic and blogs create 3 times
as many leads to purchase decision (Nielsen Global Solution, 2015). There are many
dozens of social media sites such as Facebook, and Instagram with becoming the
large platform for business because of big crowd and user.
Reviews and testimonial become the crucial part of marketing nowadays. Most of the
people will scroll into the review part of some shop or company before decided to get
services or purchasing the products for the company. Besides, based on the research
conducted by Nielsen Research Centre, they found that more that 80% of the world
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The company are to design the rewards program such as membership for the
customer as to promote them to purchase more products and do add on services. By
setting the limit of purchase amount, customer will be able to benefit special
discount, point colleting or special rebate for their next purchase.
The company will be able to outsource the designing of the company website. It not
only portray the business view but also the value of the business culture. Good and
attractive company website acts as digital storefront will helps to get people attention
and wanting to visit the shop.
3.0 Operation
Operation plan is crucial for the quality of the service in conjunction to the objective
of the company establishment including the business location, layout of the premise,
the service or working structure, overall product and service supply chain and also
the business support system.
Premises layout plays important role in planning the operation process of the
company because it decided how equipment, machinery and the worker are arranged
to ensure the operation process is working out smoothly and efficiently. the premises
was divided into several spaces which are the working area, dyno meter test room,
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storage room, the small office, cashier and display area and waiting area for
customer.
Figure 3.3 illustrate the flow chart for working structure of company
Assessment (To identify the damage of the vehicle, involved some query to the owner)
Consultation (consult and discuss with customer the service delivery, tuning process
including the forecasted cost involved
Repair Order (Prepare the working order as all the foreman and technician understand
and do all the necessary job involved
Closing of repair order (checklist of repair order, return of old sparepart, quality check,
encashment, return of customer's vehicle key)
Stand by person must always present at the front entrance as they will greet and
welcome the customer first. Other than that, the front person will ask the need and
query of the customer before can get foreman to do assessment on vehicle.
3.4.2 Assessment
Since the company provides the tuning service which also part of performances
assessment and engine diagnose, it is important to do basic assessment in order to
identify the main problem of the vehicle before consultation and suggestion can be
made. Early assessment also helps the foreman in estimating the duration and cost
for the service. These 2 information is very crucial for the customer before proceed
to repair order steps.
3.4.3 Consultation
During consultation, the foreman needs to explain thoroughly about the damages and
real conditions of the vehicle. Answer all the question provided by the customer
properly will build customer trust can the foreman are able to handle their vehicle
professionally. The foreman also can do sales service during consultation. Suggest to
the customer the modification and item to add on but at the same time try to fit in
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with customer budget and needs. During this session also, the foreman needs to
inform the customer the duration for their repair order to be done.
Repair order is prepared to ensure all the staff involved in handling the vehicle have
enough necessary information for the effective and smooth working instruction. The
repair order must be accurate and understandable. Information included in repair
order are customer details information, vehicle information, assessment result, time
in and out, and the column for the foreman to write all the repairing and service
details. Repair order also helps to make the preparing of invoice is correctly
prepared. Other than that, the good repair order can be keep for documentation
purposes and history of repairing and service for the next customer’s visit.
3.4.4.1 Tuning
After get to know the motor and the desire result by the customer, performances
tuning process is begin. ECU tuning aftermarket now is easy to handle. With the
optimized maps that can be downloaded using smartphone, just change the ECU by
factory and plug in the ECU aftermarket and start remapping process. Data logging
and analysis helps monitor all the engine parameter such as temperature, battery
voltage, engine RPM and all the diagnostic error information. Usually the tuning
software blast the past factory RPM restriction and help to improve gear shift
strategies. With the reading for Air to Fuel Ratio unit, the foreman can do an accurate
fuel adjustment and also do precision ignition timing by adjust the spark timing to
meet optimum combustion system.
Dyno measure the force of an engine and shows result in corrected “perfect
condition” figures. The comparison of uniform result to day to day basis are done
under fluctuating temperature, humidity of air and barometric pressure (Zainuri,
2019). The motorcycle are placed on the motorcycle and the test are conducted. The
graph bar reading is compared by the optimum performances known as “perfect
condition” for engine performance and remapping was done.
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Last checking need to be done before the vehicle is return the customer. Make sure
the vehicle in a good condition, wipe out clean all the oil and at least return the
vehicle back to customer as they first come into the workshop. Detailed service and
repair job in the bill will indicates and ensure all the necessary job was done and will
be charge to the customer including spare part and accessories and labour cost. After
returning the old parts and component back to customer, customer can proceed to
make payment, test drive and ask customer to fill the customer’s feedback form.
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