“Business Plan- FM Vehicles”

A Project Report
Submitted by -
Md Faizan 200301120097
Avinash Kumar 200301120002
Abhishek Raj 200301120025

In partial fulfilment for the award of the degree of

BACHELOR OF TECHNOLOGY
in
Computer Science and Engineering

DEPARTMENT OF

SCHOOL OF ENGINEERING AND TECHNOLOGY BHUBANESWAR CAMPUS

CENTURION UNIVERSITY OF TECHNOLOGY AND MANAGEMENT ODISHA
JULY-2023 / NOVEMBER-2023

DEPARTMENT OF COMPUTER SCIENCE AND

ENGINEERING
SCHOOL OF ENGINEERING AND TECHNOLOGY
BHUBANESWAR CAMPUS
 BONAFIDE CERTIFICATE

Certified that this project report ―Business Plan- FM Vehicles” is the bonafide

work of Md Faizan,Avinash Kumar and Abhishek Raj who carried out the

project work under my supervision. This is to further certify to the best of my

knowledge, that this project has not been carried out earlier in this institute and

the university.

SIGNATURE

Prof. Dr.Susanta Kumar Mishra

Certified that the above -mentioned project has been duly carried out as per the
norms of the college and statues of the university.

SIGNATURE

Dr. Sujata Chakravarty

DEAN OF SCHOOL OF ENGINEERING AND TECHNOLOGY
Professor of Computer Science and Engineering
 DECLARATION

I hereby declare that the project entitled ―Business Plan- FM Vehicles

submitted for the ―Business Plan and Prepartion‖ of 7th semester B.Tech in

Computer Science and Engineering is my original work and the project has not

formed the basis for the award any Degree or any other similar titles in any

other University / Institute.

Name of the Student:

Signature of the Student:

Registration No.:

Place:

Date:
 ACKNOWLEDGEMENTS

I wish to express my profound and sincere gratitude to Prof. Dr.Susanta

Kumar Mishra, Department of Computer Science and Engineering, SoET,
Bhubaneswar Campus, who guided me into the intricacies of this project
nonchalantly with matches magnanimity.

I think Prof. Raj Kumar Mohanta, Head of the Dept. of Department of

Computer Science and Engineering, SoET, Bhubaneswar Campus and Dr.
Sujata Chakravarty, Dean, School of Engineering and Technology,
Bhubaneswar Campus for extending their support during course of this
investigation.
I would be failing in my duty if I do not acknowledge the cooperation
rendered during various stages of image interpretation by.

Name of the Student:

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 ABSTRACT
This project report outlines the comprehensive business plan developed for FM
Vehicles, a dynamic firm specializing in the sale of renowned and refurbished
cars. FM Vehicles aims to carve a niche in the automotive market by offering
high-quality, pre-owned vehicles that undergo meticulous refurbishment to meet
stringent quality standards. The business plan encompasses a detailed analysis
of the current market landscape, industry trends, and competitive dynamics.

The report begins with an in-depth market analysis, identifying key target
demographics, consumer preferences, and emerging trends in the pre-owned car
industry. A thorough examination of the competitive landscape sheds light on
FM Vehicles' positioning and strategies to gain a competitive edge.

The core of the business plan focuses on the company's operational framework,
encompassing supply chain management, quality control processes, and
strategic partnerships with suppliers and refurbishment facilities. The report also
highlights the utilization of technology for efficient inventory management,
online sales platforms, and customer relationship management.

Financial projections provide a clear roadmap for FM Vehicles' growth and

sustainability. This includes revenue forecasts, cost structures, and break-even
analyses, supported by detailed assumptions and risk mitigation strategies. The
financial model underscores the company's commitment to achieving
profitability while ensuring competitive pricing and customer satisfaction.

Furthermore, the report delves into the marketing and branding strategies
tailored for FM Vehicles. Leveraging digital marketing, social media, and
traditional advertising channels, the company aims to create a compelling brand
image and establish a strong presence in the automotive market.

The project concludes with a comprehensive risk analysis, addressing potential

challenges such as market fluctuations, regulatory changes, and economic
uncertainties. Mitigation strategies are proposed to ensure adaptability and
resilience in the face of external challenges.
 INTRODUCTION

In an era marked by rapid technological advancements and evolving consumer

preferences, the automotive industry is witnessing a paradigm shift, with an
increasing emphasis on sustainable and cost-effective transportation solutions.
In the midst of this transformative landscape, FM Vehicles emerges as a
forward-thinking entity poised to redefine the market for pre-owned
automobiles. Specializing in the sale of renowned and refurbished cars, FM
Vehicles envisions a future where quality and reliability converge to deliver an
unparalleled driving experience.

The genesis of FM Vehicles is rooted in a commitment to bridge the gap

between affordability and excellence in the automotive sector. Our mission is to
provide discerning customers with access to a curated selection of pre-owned
vehicles that not only bear the imprints of illustrious brands but also undergo
rigorous refurbishment processes. These processes, driven by a dedication to
quality and precision, ensure that each vehicle surpasses industry standards,
offering a like-new experience at a fraction of the cost.

This project report outlines the comprehensive business plan meticulously

crafted for FM Vehicles, delving into the intricacies of market dynamics,
operational strategies, financial projections, and marketing initiatives. As the
automotive landscape continues to evolve, FM Vehicles stands at the forefront,
poised to rejuvenate the road with a fleet of vehicles that embody not just
transportation but a confluence of reliability, affordability, and sustainability.
 FM-Vehicles Ltd.

FM Vehicles is a company that sells refurbished and renowned cars. We believe

that everyone should have access to a reliable and affordable vehicle, and we
are committed to providing our customers with the best possible experience.
Our cars are carefully inspected and refurbished to ensure that they meet our
high standards. We also offer a wide range of warranties to give our customers
peace of mind.
The twin city of Bhubaneswar and Cuttack is growing at a very
fast pace both in terms of the population as well as the area.
Buying a new car can be expensive, especially in major cities like Bhubaneswar
and Cuttack. But what if there was a way to get a great car without breaking the
bank? That's where we comes in.

Vision :
"To be the leading provider of top-quality refurbished and pre-owned vehicles,
setting the industry standard for customer satisfaction, innovation, and ethical
business practices."

Mission :
"At FM Vehicles, our mission is to offer a diverse selection of meticulously
refurbished and thoroughly inspected pre-owned vehicles, ensuring every
customer finds their ideal vehicle at a competitive price. We are committed to
fostering lasting relationships with our clients, built on trust, transparency, and
exceptional service, while contributing to the community and environment
through sustainable practices."
 SWOT Analysis

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a

framework used to evaluate a company's competitive position and to
develop strategic planning. SWOT analysis assesses internal and external
factors, as well as current and future potential.

Strengths:

 Quality Refurbishment: FM Vehicles prides itself on a meticulous

refurbishment process, ensuring that each car meets or exceeds
industry standards, providing customers with high-quality, reliable
vehicles.

 Brand Curation: The focus on renowned brands in the inventory

enhances the brand image, attracting customers who value both
quality and prestige.

 Cost-Effective Solutions: Offering pre-owned and refurbished cars

positions FM Vehicles as a cost-effective alternative to buying new,
appealing to a broad market segment.

 Technological Integration: Utilizing technology for inventory

management, online sales platforms, and customer relationship
management enhances operational efficiency and customer
experience.

Weaknesses:

 Dependence on Suppliers: Relying on external refurbishment

facilities and suppliers may expose FM Vehicles to potential supply
chain disruptions, affecting inventory levels and operational
consistency.
  Market Perception: Overcoming the stigma sometimes associated
with used cars might pose a challenge, requiring effective marketing
and communication strategies to highlight the quality and reliability
of FM Vehicles' offerings.

Opportunities:

 Growing Pre-owned Market: The increasing trend of consumers

opting for pre-owned vehicles presents a significant opportunity for
FM Vehicles to capture a larger market share.

 Digital Marketing: Leveraging digital marketing channels can

expand the company's reach, attracting a wider audience and
enhancing brand visibility.

 Partnerships and Collaborations: Exploring partnerships with

financial institutions for attractive financing options or collaborating
with established brands can enhance credibility and customer trust.

Threats:

 Economic Downturn: Economic uncertainties may impact consumer

purchasing power, potentially leading to a decline in demand for
pre-owned cars.

 Regulatory Changes: Changes in regulations related to emissions,

safety standards, or import/export policies may affect the
refurbishment process and market accessibility.

 Competition: Intense competition in the pre-owned car market

necessitates continuous innovation, branding efforts, and customer
engagement to stay ahead.
 Comprehensive Marketing Proposal for FM
Vehicles: Leveraging the Four P's

1. Product:

FM Vehicles prides itself on offering a curated selection of renowned and

refurbished cars, emphasizing quality and reliability. Our proposed
strategies for the "Cars" element include:

Diversified Inventory: Expand our inventory to include a broader range of

renowned brands and models, catering to diverse customer preferences and
staying abreast of market trends. This Include brands like
Suzuki,TATA,Hyundai,Kia,Mahindra,Ford,Toyota,etc.

Innovative Refurbishment Processes: Continuously invest in research and

development to enhance our refurbishment processes, incorporating
technological advancements, sustainable practices, and innovative
features.

Transparent Certification: Implement a transparent certification system,

providing customers with detailed insights into the refurbishment process,
vehicle history, and certifications. This transparency enhances trust and
positions our products as high-value offerings.

2. Price:

Our pricing strategy focuses on striking a balance between affordability

and the perceived value of our high-quality, refurbished cars.The Average
price range for a car in good condition can include between ―5 lakhs-10
lakhs‖ and a car in best condition can lie between ―10 lakhs-18
lakhs‖.Proposed strategies for the "Price" element include:

Competitive Pricing Analysis: Regularly conduct market analyses to ensure our

pricing remains competitive within the pre-owned car market, taking into
account factors such as model popularity, condition, and current market trends.
Flexible Financing Options: Collaborate with financial institutions to offer
flexible financing options, making our cars more accessible to a wider
customer base and easing the financial burden on buyers.

Promotional Pricing Campaigns: Introduce strategic promotional pricing

campaigns during peak buying seasons or in collaboration with events to
stimulate sales, create a sense of urgency, and increase brand visibility.

3. Place:

The "Place" strategy focuses on optimizing our distribution channels to

ensure convenient access for our target audience. Key components of our
"Place" proposal include:

Strategic Showroom Locations: Identify and establish showroom locations

in high-traffic areas, ensuring visibility and accessibility for potential
customers. Explore partnerships with established dealerships to enhance
credibility.We focus on setting up the firm in two locations Bhubaneswar
and Cuttack.

Online Presence: Strengthen our online presence through a user-friendly

website, mobile app, and active participation in online marketplaces.
Implement digital marketing strategies to attract and engage customers in
the digital space.

Collaboration with Dealerships: Forge collaborations with local

dealerships to extend our reach and leverage their existing customer base.
This approach can enhance brand awareness and trust among potential
buyers.
 4. Promotion:

Our promotional strategies aim to create awareness, drive interest, and

convert potential customers into loyal patrons. Proposed strategies for the
"Promotion" element include:

Digital Marketing Campaigns: Leverage digital marketing channels such

as social media, search engine optimization (SEO), and online advertising
to create a strong online presence and engage with our target audience.

Event Sponsorship and Participation: Actively participate in automotive

events, trade shows, and sponsorships to showcase our brand, build
relationships within the industry, and create direct engagement
opportunities with potential customers.

Customer Loyalty Programs: Introduce customer loyalty programs,

referral incentives, and exclusive promotions to cultivate a loyal customer
base and encourage repeat business.
 Techno-economic viability study report of FM
Vehicles Ltd :-

Background :

 We are planning to set up a firm in the outskirts of the City of

Bhubaneswar. The cost of project estimated at Rs.650 lakhs.
 The Company proposes to go for external financial assistance by
way of fresh Term Loan of Rs. 200.00 lakhs and Working Capital
borrowing of Rs. 135 lakhs.
 The balance amount will be contributed by promoters.

Promoters :

 There are three promoters involved in the project. The main

Promoter is TATA Technologies having experience in automobile
Industry. The other promoters are local Businessmen and mainly
investors will not have any active involvement in Business.
 The Company will be registered in the name of FM Vehicles Ltd.

Projects Details :
The business will target customers who are looking for high-quality, used
cars at a competitive price. The business will differentiate itself from other
used car dealerships by offering a wide selection of renowned car brands,
a rigorous refurbishment process, and a comprehensive warranty on all
vehicles sold.

Project Budget :

The total budget for this project is 650 lakh. This includes the costs of
securing funding, finding a location, hiring staff, acquiring inventory, and
marketing the business.
Land & Premises :

The company has procured around 6 Acres of

land in between Cuttack and Bhubaneswar near
Phulnakhara and also in the process of acquiring
more lands in the adjacent area.

Equipment and Machinery Needed :

Working team :

 Sales Team
 Operations and Logistics: Inventory Managers,Logistics
Coordinators
 Technical and Refurbishment Team : Automotive
Technicians,Quality Control Inspectors,Detailing Specialists
 Marketing Team:Marketing Manager
 IT and Technology Specialists
 Management and Leadership:General Manager/CEO,Human
Resources Manager
 Balance Sheet of Firm

Liabilities :
PROJECTED PROFITABILITY STATEMENT:---
(Rs In Lac)

FM Vehicles - Profit Statement for 2 Years Ended(Predicted).

This Depends upon –
Revenue:
 Sales of Renowned and Refurbished Cars
 Other Income (if applicable)
Cost of Goods Sold (COGS):
 Cost of Renovations and Refurbishments
 Cost of Purchasing Pre-Owned Vehicles
Gross Profit:
 Revenue – COGS
Operating Expenses:
 Salaries and Wages
 Rent for Showrooms and Facilities
 Marketing and Advertising Expenses
 Utilities and Maintenance
 Administrative Expenses
 Finance Estimation

A comprehensive financial statement typically include the amount needed

for building the whole project and managing the capital from sources.
 Conclusion

The journey of conceptualizing and formulating the business plan for FM

Vehicles has been a comprehensive exploration of the intricacies within
the renowned and refurbished car industry. As we conclude this project, it
is evident that FM Vehicles stands poised to make a significant impact by
offering a unique proposition in the automotive market.
The meticulous analysis of market trends and consumer preferences has
steered our strategies towards providing not just vehicles but experiences,
where quality meets affordability. The commitment to transparency in
refurbishment processes, a diverse inventory of renowned brands, and
strategic operational efficiency all contribute to the foundation upon which
FM Vehicles will thrive.

Our financial projections, outlined in the income statement, balance sheet,

and cash flow statement, showcase a well-rounded approach to
sustainability and growth. The dynamic interplay of the four P's of
marketing — Product, Price, Place, and Promotion — sets the stage for
FM Vehicles to not only capture market share but to become a trusted and
sought-after name in the pre-owned car industry.
The human capital envisioned for FM Vehicles, from sales teams to
technical experts and administrative staff, will play a pivotal role in
transforming this vision into reality. Their collective efforts will be the
driving force behind the company's operational efficiency, customer
satisfaction, and market positioning.

In conclusion, FM Vehicles is not just a business venture; it is an

embodiment of a vision to redefine the pre-owned car market, setting new
standards of excellence. As we embark on this exciting journey, we look
forward to creating a brand that not only drives, but also inspires
confidence, trust, and satisfaction among our valued customers.