Introduction To Marketing For Onsite Car Spa

Company Description

Discuss about the Introduction to Marketing for Onsite Car Spa.

When an organization plans to introduce its new products and services in the marketplace, it needs to create a marketing plan. This marketing plan is the most significant document for a company when it brings its new products to market. It includes various aspects of marketing such as market positioning, target market, marketing strategies and situational analysis in context of a particular organization and its product offering (Chernev, 2018). This report includes the marketing plan about an innovative business idea of Waterless Car Wash that is offered by Onsite Car Spa (OCS). Onsite Car Spa is a brand of Oppidan Car Services Limited is the eco-friendly and most reliable car care services to keep the cars clean at people’s doorstep. The report is focused on different concepts regarding the marketing process of Onsite Car Spa Company. It includes the value proposition, target market, situational analysis, marketing mix strategies and implementation of this plan into process. 

Onsite Car Spa is an eco-friendly and most reliable car care services to keep the cars of customers at their doorstep. The company aims to simplify the ease to use to develop a closest possible team for cleaning service via mobile/web at their home. It provides biodegradable waterless products for the customers who want to clean by themselves. This organization does not just want to save billions of liters of water every year, but it also protects the energy and decreases the carbon footprint (Onsite Car Spa, 2018). With each car wash, it assists the people to handle the biggest energy consumer in the world i.e. water industry. Saving the water leads to saving the energy that supports to deal with the current environmental issue which the people confront.

Situational analysis is the process to analyze both external and internal factors which affect the environment and processes of the organization (Clarke, Friese and Washburn, 2017). These environmental factors can be evaluated by using different frameworks and models of strategic management. The situational analysis for Onsite Car Spa is stated below:

For Onsite Car Spa, the macro-environmental analysis is conducted by using PEST analysis that includes different external factors which are given below:

It is an innovative and environmental friendly business in Australia so government of this country supports the company. In country, this industry is managed by Australia Carwash Associations (ACWA). There is a rise in the green carwash services and Australian government is encouraging these car cleaning services to save the water. Moreover, it is awarding these firms with Green Best rating (Istirokhatun, et al, 2015).

Situational Analysis

Economic conditions in the country are improving every year and there is an increase in the disposable income of Australian population. This is the reason that people can afford the cars. It is a good indicator for the business operations of Onsite Car Spa in Australia.

Social factors are favorable for the business of Onsite Car Spa. Customers are becoming very conscious about environment and natural resources like water, air etc. In this country, weekend tradition of washing family cars is very common. It can grow the business and profits of Onsite Car Spa.

Technology plays an important role in waterless car washing process. This firm polishes, cleans and waxes the cars at once. By using different techniques, it prevents the dust particles from being attached to cars after the wash (Morgan, 2015).

In addition to above factors, there are some micro-environmental factors which have large impact on the business of Onsite Car Spa. These factors are stated below:

The products and services of Onsite Car Spa are appropriate for the dry nations like Australia, by considering the dryness, temperature and higher impact of UV rays. In Australia, there are 17 million registered cars and Australian people have tradition to wash their cars every weekend. They use between 100 to 200 liters of water and billions of liters of water will be required to wash 17 million registered cars in Australia (Australian Bureau of Statistics, 2018). Onsite Car Spa is operating its business in India successfully and these market trends in Australia will assist it to grow its profits and revenues. The products of Onsite Car Spa leave a shielding layer of the vehicles that provides safety against UV rays to establish a market trend.

However, there are no direct competitors of OCS in Australia. The industry does not have any car washer that provide waterless car washing services. Apart from this, there are various high tech and modern car washing firms which attract more customers. These services are afforded by both wealthier and middle class people so they can pose competition to OCS. So, there is a need to develop awareness about this eco-friendly service among Australian customers (Villeneuve, and Pasquier, 2017). 

SWOT analysis is a strategic framework that is used to analyze both internal and external factors of an organization which affect its growth and success (Agarwal, Grassl & Pahl, 2012). It includes four dimensions such as strengths, weaknesses, opportunities and threats. SWOT analysis of Onsite Car Spa is given below:

SWOT Analysis

Strengths

• Innovative Business Idea

Onsite Car Spa is an innovative business idea that does not exist in Australia. It is an end-to-end company that is operated on waterless vehicle clean service. It ensures that the cleaning experience for cars is outstanding one with great quality at reasonable costs. There is no direct competitor for this company.

• Safer than machine  

The services of OCS are safer than car washing services offered by machine. OCS provides the hand wash and personal touch under its services. It does not have any bad impact on body of cars and other vehicles (Ryan, 2016).

• No need of extensive training and space

In the case of Onsite Car Spa, there is no need of extensive training to its employees and washer. It decreases the administrative costs to the company. Moreover, the company has a flexible business structure where there is no need to set a physical base.

• Environmental cause and Water Saving

This is the most attractive factor for the business of Onsite Car Spa that its services aim to protect the environment and save the water and other natural resources. It can entice more people and develop a great customer base.

Weaknesses

• No physical establishment

One of the major weaknesses of the company is that it does not have any physical base or premise so customers cannot contact the company if they have any issue with their services.

• No customer base in Australia

In Australia, the company does not have any established customer base. Now, it needs to create a significant client base by using effective strategies.

• Unawareness among people

About the services Onsite Car Spa, it can be stated that people are not aware about this type of services. They do not know that they can make their car wash without using water resources. There is need to increase awareness among Australian population (Agarwal, Grassl & Pahl, 2012).

• People’s Opinion towards its services

It is also one of the major weaknesses of Onsite Car Spa. Generally, people think that they can wash their cars themselves. They think that it is not a specialized service so that they should spend on this. People prefer to wash their cars and vehicles on weekends.

• Larger Targeted Population

In Australia, Onsite Car Spa has the opportunity to target a larger market and audiences. The company can focus on both commercial and domestic people. Commercial partners of this company are Uber, OLA, Flexicar, McCarroll, 13 Cabs (Onsite Car Spa, 2018). It can contact to these cab service providers and provide them its services.

• Water Saving

The company will be offering its products and services with the intention of water and environment saving that influences both the people and government. It will assist the organization to get the support of government in the business expansion (Moazzem, et al, 2018).

• Business Expansion Model

In future, the company can expand its business by establishing franchises. In addition to this, OCS can expand its operations to wash more than cars like trucks, bikes, boats, aircrafts and other vehicles.

Threats

• Other car washing Businesses

Onsite Car Spa may face the threat from the car washing businesses which are already established in the country. In addition to this, there are various car service centers that provide car washing services too. These businesses can affect the OCS’s business in the country.

• Business Model Imitation

In today’s business environment, there is intense competition among the firms in any industry. So, the competitors can copy the business model of OCS as it is very easy to imitate (TCWS, 2015).

• People may deny to pay

In the country, there may be chances that people may deny to use the services of OCS. They will not pay for these luxury services as they think that they can wash their cars themselves. Moreover, they just hire a boy to wash their cars on weekend.

In this way, the situational analysis of Onsite Car Spa indicates that Australian market provides a moderate environment to the company. It should establish the business in the country so that it can increase its overall customer base (Ryan, 2016). 

Before establishing its business in the country, Onsite Car Spa will set some objectives which will be attained by this in coming years. The company will establish both short term and SMART objectives for its business. These objectives are stated below:

The short terms objectives are the goals which OCS Company aims to attain within next 2 years. Short term goals of company are given below:

• To develop a workforce of talented, skilled and experienced people to help in managing the resources of business (Ottman, 2017).
• To safeguard the working capital needs and funds for capital expenses of business.
• To increase the competitiveness and sustainability of Onsite Car Spa services in Australian market.
• To develop the business activities via franchising and market development strategies

In addition to this, the entity aims to attain the revenue of $1,708,500 in the end of first year of its operations in Australia.

Specific

The objectives of OCS are specific that is to capture the location of customers and providing them excellent doorstep car washing services.

Measurable

The objectives can be measured considering the cleanliness of vehicles. The Mobile application of OCS can track the cleanliness of cars (Das, 2015).

Actionable

The organization will organize random or periodic service check and take the customer response for further improvement in the services.

Reasonable

Offering this service is very reasonable as it has lower operating expenses than other businesses.

Time-bound 

The company is very time-bound and timetabled as it maintains the services and equipment regularly. The employees are trained to enhance the service quality regularly. It will make efforts to attain the objectives in a fixed timeframe (Kiran et al, 2015).

Target market is the group of customers on which Onsite Car Spa will focus its marketing efforts and strategies. The company has divided its target markets i.e. primary market and secondary market. It will focus on the customers considering different characteristics of segmentation like demographic, psychographic and behavioral characteristics (Aghdaie and Alimardani, 2015). Under demographic segmentation, the company will focus on the people from the age group of 18 to 60 years. Psychographic segmentation targets the people from the busy lifestyles and who are eco-friendly and concerned about environment. Finally under behavioral segmentation, it emphasizes on life time car owners i.e. the people owns cars from over 5 to 8 years, sports car owners, luxury car owners etc. Apart from this, the secondary target audiences of OCS will be fleet owners like OLA, Uber, 13 Cabs, Dealerships and car rentals like Hertz, Flexicar and goget.com.au.

To place its services in Australian marketplace, Onsite Car Spa will use effective positioning statement. It will offer the doorstep services with the facility of booking through mobile application. It will entice the old car owners because its service can bring back the color and shine of their car’s paint. It will be the primary choice of the people who are very conscious towards environment and water saving. OCS will be using an effective slogan i.e. “The World is running of Water, Don’t Waste it on Washing Car.” It will enable the company to attract more customers towards its services (Cross, Belich and Rudelius, 2015).

In order to attain the above-mentioned objectives, Onsite Car Spa will develop some effective marketing strategies and value proposition which will assist the organization to grab the attention of Australian customers (McAlexander, Koenig and DuFault, 2016). Key Value Proposition and marketing strategies of OCS are given below:

Key value proposition of the company includes the different benefits and competitive advantage that the company may gain operating business in car washing industry. The products and services of OCS will deliver significant value to its potential customers. The products of company put a protective layer that provides safety and makes this sure that the color and paint of car does not fade. When its product is spurred, it creates bubbles around the dirty particles and removes them from surface without any scratches (Doole, and Lowe, 2008). Moreover, the key value proposition of company is to save the water and encourage the target market to become eco-friendly customer. It products and services are very much focused on environment protection and sustainability development. Through its services, the company offers various benefits like 100% water and electricity saving, mobile wash everywhere in Sydney with the help mobile application, exclusive hand-wash in 20 minutes for any car, simplified and eco-friendly cleaning process and customer support service (Jones, et al, 2008).

Marketing mix strategy of a company includes 7 Ps that includes product, price, place, promotion, process, people and physical evidence. Marketing mix strategies for Onsite car Spa are stated below:

Onsite Car Spa is offering the products and services which are related to a social cause i.e. water saving and environment protection. The organization is committed to offer with the environmental friendly car wash solution to Australian customers. In its service offering, it uses biodegradable and recyclable components which do not have adverse impact on environment and natural resources.  People can book the services through mobile application and company’s website. It provides on-call services at their home with its bikers approaching the customers (Harter, 2015).

The company will be offering its products and services on reasonable prices so that every level of income and society can afford them. The prices will be set according to the car models and sizes. The charges for luxury and SUV cars are $549+ GST every month and for Sedan and Hatchback cars are $349+GST monthly. This package will include all the services related to car cleaning (Luo, Roach and Jiratchot, 2015).

Onsite Car Spa provides its on-call services at the home of its potential customers. The employees of the company approach the customers within 3 hours of their booking on call or mobile application. The detailers of the company will be available in anywhere in Sydney. It will take the cleaning booking for same day from 9AM to 4PM. The services will be offering through its official website as well.

Promotion is an important marketing strategy for the business of OCS as it is very new business so company needs to focus on its promotion and advertising. One of the most significant ways to promote its services is to use social media platform. It can promote the services through Twitter, Facebook, Instagram etc. Most of the Australian population is actively using social media sites so it will be easy to communicate the brand message with targeted audiences (Ashley, and Tuten, 2015). In addition to this, it can post the ads on Google display and other platforms like Gumtree to increase customer range. In addition to this, it can use offline and print media like flyers, newspaper, magazines, articles etc. Youtube videos have the large scope for its promotion through which company can approach to potential customers. Under promotion strategy, the company will create a budget that will include all the costs and expenses which will be spent on advertising and marketing processes of company. The marketing budget for company is given below:

Marketing and Promotional Budget
Promotional mix elements	Amount
Social Media Marketing
1. Facebook	$8,000
2. Twitter	$6,000
3. Google	$7,000
4. Youtube	$5,000
Total Social Media	$26,000
Direct Marketing
E-mail Marketing	$3,000
Internet Marketing	$10,000
SEO Marketing	$2,000
Total	15,000
Print Media	$7,500
Others
Television ads	$9,000
CSR activities	$12,000
Total	$21,000
Events and Sponsorships	$13,000
Total Required Budget for Promotion	$82,500

The above budget indicates that company will spend $82500 on its marketing and advertising activities in next 6 months (Khan, 2017). The budget is allocated to different modes and channels so that it can approach to the targeted population of Australia.

Onsite Car Spa has managed its services by developing effective processes. It is offering its services through mobile application booking. The services are online and instant by using the location map. The employees apply the spray on the car surface and wipe this by using microfiber cloths. They wipe the surface and detach the dirt and stains. At the end, secondary cloths are used to give a surface shine and buff (Khan, 2014).

The company will be managing its human resources and other people very effectively. The people at OCS include all the stakeholders which are related to its business operations directly and indirectly. The major stakeholders of the company are such as car owners, suppliers, customers, car detailers (staff) and government of Australia.

Onsite Car Spa provides the services which are directly related to the detailing and cleaning of cars and other vehicles. To simplify the process, the company will be sharing various physical aspects which are very important for cleaning procedure. These aspects includes biodegradable and recyclable products for cleaning, employees and detailers to clean the cars, customers and the place company uses for cleaning the cars and vehicles.

These are the important marketing strategies which Onsite Car Spa will use to introduce its products and services in Australian cities (Mishra, 2015). These marketing strategies will assist the organization to approach and provide its services to above targeted customers.

In the formation of marketing plan, it is very important to set a budget to set up the business in a new market. This budget will includes all the forecasted revenues and expenses in the timeframe of next one year. The company will use above marketing strategies to attain the forecasted revenues and profits in the coming one year. It is expecting to increase total annual subscriptions to 4121 and it aims to achieve its revenues of $11 million (Luttrell, 2016). The budget for Onsite Car Spa is given below:

The estimated revenues for next one are given in below table:

Particulars	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Yearly (2018-19)
Subscriptions	313	475	723	1099	4121
Cost (Monthly)	$349	$349	$349	$349	$349
Revenues (Million)	1	2	3	5	11

For the financial year 2018-19, the company will develop a cost structure that will include all the costs and expenses which company will make in the first year of its operations in Australia. The cost structure is given below:

Particulars Expenses	(Q1)	(Q2)	(Q3)	(Q4)	YEAR (2018-19)	Subscription fee annually	Breakeven with No. Of Subscriptions
Office Rent	13000	13000	13000	13000	52000	4188	12
Wages for Cleaning Professional	42191	64167	97590	148422	352370	4188	84
Wages for Back Office	14064	21389	32530	49474	117457	4188	28
Admin Expenses	12376	18822	28626	43537	103362	4188	25
IT Development Expenses	12500		7500		20000	4188	5
Hosting Expenses	1250	1250	1250	1250	5000	4188	1
Material Expenses	2344	3565	5422	8246	19576	4188	5
Online & Offline Promotion Exp.	156263	237656	361445	549712	1305075	4188	312
Legal, Reg. & Misc. Charges	2500	1250	1500	1750	7000	4188	2
Fixed Cost Total	256487	361099	548863	815391	1981840	4188	473

The marketing plan will be implemented in practice by using an action plan that will include all the actions and timeframe for a particular action (Goworek, and McGoldrick, 2015). The action plan for Onsite Car Spa is stated below:

Media Tool	Duration	Description of act
Facebook	2 months	The company will create a Facebook page and post the ads and promotional offers for car washing. It will share the images and videos on this page.
Twitter	2.5 weeks	The company will make a tweet that links the content on its website. It will post message and pictures on Twitter.
E-mail Marketing	3 weeks	After identifying the regular customers, it will send the e-mails to the professional and working people who don’t have time for car washing.
Print Media	4 weeks	The company will publish the ads in regional newspapers and magazines of Australia.
Traditional Media	2.5 weeks	In addition to above, it will give ads on television and different radio stations so that it can reach to larger population in Australia (Villeneuve,  and Pasquier, 2017).

In this way, the company will be able to implement its marketing plan and different processes in the practice. It will enable the organization to approach a large population in developed nation i.e. Australia. 

After implementing the media tools and marketing plan, Onsite Car Spa will evaluate the plan to identify its effectiveness. To evaluate this, the company will set an objective to attain 10% market share with the 1% of total cars in Sydney with the forecasted revenues of 11 million. In order to attain its objectives, the company will develop effective strategies so that it can provide its services to the customers. It will set some measures and key performance indicators like customer satisfaction, feedback, number of subscriptions, number of cars etc. By developing standard processes and systems, the performance will be measured regularly and it will make efforts to increase the sales (Kotler, 2015). The response of customers on cleaning process and water saving will be reviewed by OCS team. The company will evaluate that how frequently the customers will be using the services of Onsite Car Spa Company. After evaluating effectiveness of plan, the company will make changes in the plan.

Conclusion 

From the above analysis, it can be concluded that marketing plays an important role in the growth and success of a new business in the country. The company needs to formulate a marketing plan so that it can reach to the targeted population. In the above report, Onsite Car Spa is a new and innovative business in Australia. This business is already operating in Indian market so company is going to expand its operations in Australian marketplace. The situational and environmental analysis of the company shows that Australian market will be favorable for the organization’s growth. In addition to this, it should use effective marketing strategies and tactics so that it can attract more customers and increase its overall customer base. 

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