Business Plan For Patel Electric Scooter Marketing Essay

Business Plan For Patel Electric Scooter Marketing Essay PATEL Electric Scooters will offer quality used electric scooters and electric scooter parts to a growing market of electric scooter hobbyists. PATEL Electric Scooters will sell new and second-hand electric scooters as well as accessories, such as jackets, boots, jeans, helmets, waxing products, childrens clothing, and spares. It will also repair and service electric scooters. Additional services such as insurance may be provided. Why are electric scooters better than gas ones?  · Environmentally Friendly: Zero tailpipe emissions. Save the planet!  · Lower Operating Costs: Approximately 1/20th of gas equivalents. And since gas prices continue to rise, this gap will only widen. Plus, most electrics require little or no maintenance.  · Quieter Usage: Electrics are extremely quiet, with no loud noisy engine, which means they can be used in areas which require quiet, such as corporate walkways between buildings of an office campus.  · Cleaner Operation: No gas, fumes, or smokes to deal with. Youll smell better.  · More Reliable: Fewer moving parts for less maintenance and less that can break.  · Reduced Oil Dependence: The more electric motors we use, the less we depend on gas motors, and hence the less oil your country depends on. In the beginning, Patel electric scooters will offer excellent value for the first scooters. These will not bust the customers budget as 50 to 75 percent of the costs for repairs and modifications will be reduced due to experienced riders and the quality parts that will be used. Sales of scooters continue to rise as they are seen as an answer to many traffic problems; they take up less space on the road, emit fewer harmful gases and are far cheaper to run than cars. Demand for touring and specialist scooters has also increased. Traffic schemes, which allow electric scooters, mopeds and motor scooters to use their own lanes to ease congestion, are likely to become more widespread. PATEL Scooters will specialize in scooter rentals for leisure and corporate travelers at discount prices. PATEL Scooters will offer a rental rate that is guaranteed to be the lowest among all scooter rental companies. This is PATEL Scooters commitment to customer satisfaction. Scooters are more efficient then cars in many ways: they have better fuel efficiency, go at low maintenance and have lower operating costs .And also the insurance is available for a cheap price of $30-$50 a year. The targeted customers for business will be about 125000 students from Connecticut State (USA). And so the word of the customer service will eventually spread There a lot of students who use the public transport to due the problem of finding parking spaces. As the public transport offer very few options we are expecting the economical moped and car services will come into action very quickly. There are a lot of students who cannot afford to buy a car or moped but they can afford to rent a car or a moped for $50 a month or can chip in for to rent one car together. Connecticut Scooters would purchase used scooters for less than $1,000 and lease them out. Patels connection with the electric scooter community and the growing demand for quality used electric scooters and electric scooter parts will make PATEL Electric Scooters one of the most popular shops in the city. Objectives The objectives of PATEL Electric Scooters are: Capture the majority of the used electric scooter business in the Connecticut State. give a good quality service for less. â‚ ¬Ã‚  a survey will be conducted for measuring customer satisfaction; repeat customers will be the targeted customers for surveys. Primary goal will be to achieve 45% of profit margin in first two years. Mission The mission of PATEL Electric Scooters is to become the primary resource for used electric scooter parts in Connecticut. Ways of Success The key ways of success for PATEL Electric Scooters are: Repeat customers Satisfaction. Maintaining the price, quality and time beyond customers expectation. Joining experienced professionals and putting them together to work in a team. Secure and busy location near by University. As supplier play main role in any business, so establishing a supplier network become a necessity. Somehow business also depends on employee moral behavior, so rewarding them at their success, is a step ahead in customer satisfaction direction. Company Summary PATEL Electric Scooters will offer quality used electric scooters and electric scooter parts to a growing market of electric scooter hobbyists. The shop will purchase used and damaged scooters as well as used electric scooter parts. Company Ownership PATEL Electric Scooters is owned by Sumitraben Patel Start-up Expenses A electric scooter sales, repair and servicing business costs will vary considerably, depending on services provided. By selling electric scooter parts, riders who undertake their own repairs will be attracted. The premises must be big enough to display several large scooters plus accessories. An existing business could be purchased, with established reputation and customer goodwill, etc. Electric scooter Trader Directory lists suppliers of machines, components, spares, auctioneers, etc, with contact names and addresses. Initial and ongoing costs could include: A range of electric scooters, scooters, mopeds, etc. A large range of accessories, clothing, spare parts, etc. A tool kit ($300-$700). Spot welder ($200). Paint stripping equipment (from $50). Other equipment, e.g. scales ($250), brake tester ($3,700-$4,750), headlamp tester ($495). Electric scooters lift ($520-$1,300). Paddocks stand ($150). Tire fitting equipment, e.g. tire changer ($1300-$1600), wheel balancer ($1500-$1900). Mig welder (from $350). Manuals. Promotion. Staff. Insurance. Start-up Summary Sumitraben Patel will invest and also secure a $20,000 loan. The focus of the initial inventory will be on engine and electrical parts. The source of these parts is electric scooter hobbyists who sell the parts in order to purchase upgrade parts for their own electric scooters. The following table and chart show projected initial start-up costs for PATEL Electric Scooters. Legal $1,000 Stationery etc. $500 Insurance $500 Rent $1,000 Display Equipment $3,000 Expensed Equipment $5,000 Total Start-up Expense $11,000 Start-up Assets Needed Cash Balance on Starting Date $24,000 Start-up Inventory $45,000 Total Assets $69,000 Total Requirements $80,000 Funding Investment Sumitraben Patel $80,000 Total Investment $80,000 Total anticipated annual turnover for first year: $250,000 Total anticipated annual net profit: $112,500 Products We believe it is important to have quality electric scooters at a low cost, and will back each cycle with a 30 day limited warranty. Our company will make a profit by generating sales. It will provide job satisfaction and fair compensation to its employees, and a fair return to its owners. Hard work and performance is rewarded through bonuses and commissions. Job satisfaction is very important for employees and owners; we will create a work environment that is enjoyable and profitable for all. Why are electric scooters better than gas ones?  · Environmentally Friendly: Zero tailpipe emissions. Save the planet!  · Lower Operating Costs: Approximately 1/20th of gas equivalents. And since gas prices continue to rise, this gap will only widen. Plus, most electrics require little or no maintenance.  · Quieter Usage: Electrics are extremely quiet, with no loud noisy engine, which means they can be used in areas which require quiet, such as corporate walkways between buildings of an office campus.  · Cleaner Operation: No gas, fumes, or smokes to deal with. Youll smell better.  · More Reliable: Fewer moving parts for less maintenance and less that can break.  · Reduced Oil Dependence: The more electric motors we use, the less we depend on gas motors, and hence the less oil your country depends on. Electric scooters are more preferable because they:  · Scooting desires are fulfilled;  · Easy and quick, fun making local errand; Environmental friendly while saves some bucks; Convenient point to point transportation; Solves problem of parking and helps with shortcuts; Brings more fun and freedom in ones life. In comparison to gas-powered scooters, electric scooters bring better advantages for transportation as well as recreation. Comparing to gas-powered scooters, electric scooters are allowed in train plane bus etcà ¢Ã¢â€š ¬Ã‚ ¦ Reduction of Noise as well as air pollution. Maintenance is lowered due to use of simple electric motors. Quick and better response when starting or climbing on hill. Many times electric scooters are purchased as a toy, still they have long life as transportation. 1.(a) rules of safety while riding scooters.  · Riders do no duck out of the traffic irresponsibly.  · Friends should not let friends ride scooters when drunk.  · Riders should not ride at high speeds on the sidewalk.  · People should not let inexperienced riders ride soaped-up scooters.  · Riders should keep in mind that pedestrians always have the right to pass first.  · Responsible parents should be sure that their children wear proper safety gear when riding scooters. PATEL Electric Scooters offers the following products: Used Electric scooters: These cycles have been inspected and occasionally reconditioned in order to offer the customer the best value. Used Parts: These quality parts include engine parts, bodywork, gas tanks, electrical parts, frame, and chassis wheels and brakes. Used Electric scooters We will have at times 20 to 50 used electric scooters. Electric scooter crash repairs PATEL Electric Scooters offers a complete range of electric scooter crash and damage repair services: Fuel Tank Repair Damaged fuel tanks dent will be repaired by using needed stud gun which welds dent area with draw pins, with the use of side hammer the dent will be pulled, by these way it makes possible to remove dent without drilling or filling. After that area will be cleared by a thin coat of glazing surface, block sand, and then high premier quality coat will be added. When it dries, tank gets ready for wet sand and final base color coat which gives a perfect finish. Plastic Repair and Welding. We will Repair plastic body parts that are costlier, like parts having scathes, cracks etcà ¢Ã¢â€š ¬Ã‚ ¦ plastic welder and rods will be used of best quality to repair cracked parts. Surety for quality We get hundred percent guarantees when the parts are perfect. And there will be no sign of damage. We will occasionally be able to repair damaged race fiberglass. We will recommend replacing the with new parts if the body work has moderate to heavy damage. parts. It takes hours get a heavily damaged part into the right shape so that it can be painted. And if the job is not dome properly the paint will look ugly and we are very keen on having a good painting job done. The money spent on the repair of a heavy damaged part will be twice the cost of a new part and secondly the part will always have the mark of the crash or the signs of hairline cracks around the mounting holes. The cost to repair a less damaged part is  ¼ the cost of a new part. In such cases we recommend to get it repaired rather than replace it. Electric scooter Insurance Repairs We will handle insurance repairs and claims to get your electric scooter back in perfect shape. All repairs will be done using factory OEM replacement parts where needed. Pick-up will be available by appointment. Electric scooter Insurance Repairs and Claim Handling PATEL Electric Scooters will work with you and your insurance company. We handle everything from writing your repair estimate and handling your insurance claim to picking up your crashed electric scooter. The insurance repair process will work as follows: Once an scooter arrives at the Patel electric scooters it will be inspected for any crash damages and a detailed written document will be made that will cover all the all the damages that occurred before the scooter arrived. We call the insurance company once the estimate of the repairs is complete they will then send an adjuster to our shop to compare our estimate to theirs. Once the estimate has been approved by the adjuster and gives the approval for the estimate after that only will the insurance company sand us the payment for the Upon approval of the estimate by the adjuster, he will submit approval of payment to the insurance company. Factory oem replacements will be ordered for every part that need replacements for the scooter to get ready for re assembling when the the new parts arrive. Market Analysis Summary The traditional customers of a electric scooter retailer are young males. The number of riders taking basic training has risen, largely due to an increase in the number of older riders (25+). They may or may not have had scooters before, will buy for leisure purposes and also tend to buy higher price scooters which have higher profit margins for the retailer. They will be car owners, and being used to service from the car market, will want to buy from clean, smart dealerships. Higher prices could be charged, as they will generally be willing to pay for a high level of service and will have a higher disposable income to spend on accessories. Women are an increasingly important customer group, as the number of female riders rises. Customers are becoming more demanding of good service, back-up and information provision, so keeping ahead of the competition will involve rigorous training for employer and staff in order to keep abreast of new technology in the market. Only a small proportion of the population owns a electric scooter, therefore there is still a large potential market for sales. The number of full electric scooter licenses held in this country far exceeds the number of scooters on the road, so it is not essential to target new riders. It may be possible to persuade lapsed riders to take up the hobby again. There is also a business sector. As roads become more clogged, car speeds in cities are decreasing significantly, and a electric scooter courier industry has developed. In such conditions scooters are substantially faster. The police and paramedics have begun to use more electric scooters for the same reason. A shop could develop a relationship with a commercial or public sector customer, taking on supply and upkeep of a fleet of scooters. Some of the larger electric scooter dealers have suffered over the last year as consumer demand has decreased. Electric scooter dealers usually have multi-franchises; links with several manufacturers rather than selling the product of one manufacturer, as happens in the car dealership market. However, developing links with a manufacturer can be very difficult. Manufacturers are trying to increase profits, and this usually means developing and assisting existing successful franchise outlets. Most areas are now well covered for dealerships. Competition also includes the car market. Despite environmental concerns, for most people the car is still the first choice for independent travel. Over the past ten years, riding has developed an entirely new customer base among baby boomer men, ages 40 to 65. Last year, electric scooter sales for this age group were twice that of young men, ages 18 to 25. These two groups represent 80% of electric scooter sales. In Connecticut State, electric scooter sales exceeded $36 million in 2009 and sales are predicted to grow by 10% this year. The demographics suggest that there is a large market for used electric scooters and electric scooter parts, especially among experienced scooters. This is particularly important because the experienced customer will seek out a shop where the owner has a reputation for quality and service in the electric scooter community. Market Segmentation PATEL Electric Scooters will focus on two customer groups: Male baby boomers, ages 40 65. Young men, ages 18 25. Competitive Comparison The suppliers have the lot of power in negotiating and setting of the prices of the products on the shop. This is a fact that the suppliers earn the most money form these kind shops and companies. It is consolidate that the repair industry have the deepest pockets and a a limit numbers of substitute customers. Finally there are the only most important suppliers to Connecticut electric scooters industry. Market Trends The market demand for electric scooter sales, repair and service industry has been relatively stable over the past decade. However, the average price per scooter has seen a steady increase, especially within the last five years. These more expensive scooters have, on average, much higher repair costs per vehicle than any older scooters. This has upset the short-term equilibrium of the industry and given incentives for new firms to enter the market. Strategy and Implementation Summary The location of a electric scooter sales, repair and services business is very important in attracting customers. A site close to the centre of town will be easily accessible to potential customers in all areas of the region. Being located near public transport routes will make it convenient for customers to use alternative forms of transport while their electric scooter is being serviced. Early and evening opening hours will accommodate those customers who need to drop off their electric scooters on their way to work, or collect them afterwards. Good presentation of the shop and staff will be useful for attracting repeat business. Neat premises and helpful, friendly staff will instill confidence in customers and further promote the business through word of mouth recommendation. To target customers in the local area, advertisements can be placed in local publications. Listings in directories will be useful, e.g. the Yellow Pages. Advertising monthly special deals on certain types of repair work in the local newspapers, is another option. Some parts suppliers offer promotional support programs for independent garages in return for stocking only their products. Often these packages include signage, point of purchase support material as well as advertising support. An increasing number of businesses are advertising their services on the Internet. Competitive Edge Sumitraben Patel, owner of PATEL Electric Scooters is one of most respected and best known Business man in Connecticut, she also own three motels in different parts of United States. Marketing Strategy PATEL Electric Scooters will establish and maintain close links with a electric scooter rider training company. Licensing requirements mean most learners will look first for a rider training company; they may not approach a dealer until they have passed their test. A good reputation is essential. If the business establishes a reputation for a friendly, knowledgeable and helpful service, new riders (including women and older riders) will be encouraged to trust and buy from it in an ongoing relationship. There are many electric scooter exhibitions and festivals; these are a good place to meet customers and others in the trade. Advertising will be undertaken according to the target market. The majority of active motorcyclists in the US read a electric scooter magazine all of which have a Product and Services Guide, plus adverts from dealers. Listings in the Yellow Pages and local business directories will be worthwhile. Local electric scooter clubs will be contacted to inform them of the services. Sales Strategy PATEL Electric Scooters will open with a Customization Show and Competition. During the first month of operation, PATEL Electric Scooters will offer a 15% discount on all purchases over $50. Sumitraben will also offer a standard 10% discount to members of the citys seven electric scooter organizations. Management Summary Bhagvat Patel will manage the daily operations of the shop under sumitraben patels supervision. Yakub and zahgir are two motorcyclist specialist, will be handling all repairs, where there salary will be 1250/month for each. Besides Sumitraben Patel, PATEL Electric Scooters will have three additional employees. Strategic Direction SWOT Analysis This is a summary of the businesss most important strengths, weaknesses, opportunities and threats. Strengths of the Business Excellent quality product Which means that Adds to reputation. Good management skills. Which means that Well run business Good ability to extract information. Which means that Can control the business.- Weaknesses of the Business New Player. Which means that Credibility problem may affect initial sales Lack of systems Which means that The Company needs to develop systemised operational sales techniques or sacrifice profits Opportunities in the Marketplace Add-on products such as ** Which means that A potentially enormous market for PATEL electric scooters to tap into. Growing market segments. Which means that PATEL electric scooters should target these segments. Threats in the Marketplace Increasing supplier prices. Which means that Resulting in reduced profitability. Declining size of the ** segment. Which means that Need to focus on growing segments to spread the companys portfolio The Actual Plan (annually) Business Objectives Corporate Objectives (Goals) Short Term Corporate To achieve a sales level of $250000 To achieve profit level of 45% Marketing Objectives (Goals) {your product} #1 Segment: To achieve sales to $30000 #2 Segment: To achieve sales to $60000 #3 Segment: To achieve sales to $70000 #4 Segment: To achieve sales to $90000 New Products To evaluate and launch new products or services which will turn over $120000 in the first year. Other Objectives (Goals) To not exceed a marketing budget of $4800 To not exceed a payroll budget of $42000 To not exceed a general overhead budget of $21360 The major task objectives for each area of the organization, together with responsibilities and timings are detailed in the Roll-Out Plan. Marketing Plan MARKETING OBJECTIVES Sales Objective To achieve sales by 45% Sales Objectives by Market Segment. #1 Segment: To achieve sales to $30000 #2 Segment: To achieve sales to $60000 #3 Segment: To achieve sales to $70000 PROMOTIONAL STRATEGIES Print Advertising Develop a corporate brochure. Advertise in local publications Advertise monthly in magazines that are specifically targeted to the ** and ** segments. Advertise monthly in magazines that are aimed at the general industry. Lead Generation Program Conduct monthly on-going lead generation program. Send out monthly direct mail leaflets with response coupons. Qualify leads and make appointments by using telemarketing staff. Centres Of Influence Program Personally contact at least ten potential partners each week. Produce a monthly newsletter that shows examples of (your products) and how customers have benefited from using them. PR Program PR release to be initiated each month to various trade journals and magazines. Sales Force Employ telemarketing staff. Implement a new structural program for the sales force, allocating sales reps to accounts and segments rather than area. Organize training program to be implemented. Lost Customers Contact monthly all past customers that have not re-ordered to ask why not and see whether we can win back their business. Follow up Enquiries Contact all enquirers monthly and determine if they have purchased from a competitor and, if so, why. Existing Customers Follow up all new customers two weeks after they purchase to ensure they are satisfied with the product. Send quarterly newsletter to existing customers to keep them informed of our other products. Try and up-sell all enquiries for our standard range to our premium range. Sales Promotion Develop an ongoing sales promotion to target existing customers. GENERAL MARKETING STRATEGIES Competitor Profile Keep updated competitor profile. Marketing information system Document on every enquiry How did you hear about us? Document on every order How did you hear about us? Produce monthly sales reports by product, by market segment, by territory and by sales representative. Financial Plan FINANCIAL Next Years Objectives Net Profit To achieve forecast net profit of $112500. Budget To not exceed the following expense budgets. Marketing Budget $ 4800 Payroll Budget $ 42000 Management Overheads $ 21360 FINANCIAL STRATEGIES Cash Flow Eliminate cash shortage in the traditional tight periods of December to January Collection Days Reduce the average collection days from 30 days to 15 days. Payment Days Maintain payment of bills, on average, to 20 days. Expenses Develop and implement new policies on approval and signatories on expenses. Leases Pay off the existing lease on PATEL equipment, thus reducing the monthly financial burden. Wages Pay all wages on a monthly basis instead of weekly. Inventory Improve the number of stock turns to 30000 a year. Rent Negotiate new terms on the premises and reduce existing payments by 10% Organizational Plan ORGANISATIONAL AND MANAGEMENT Next Years Objectives Budget To not exceed the payroll budget of $42000 HUMAN RESOURCE STRATEGIES Organizational Draw organizational chart. Develop incentive scheme related to job requirements. Policies and procedures Develop policies and procedures manual. Employ telemarketers. Training Carry out training needs analysis. Morale Install suggestion box. Organize monthly meetings to follow up tasks