Title:

BUSINESS OPPORTUNITY IN AUTOMOBILE INDUSTRY

THE BUSINESS PLAN

Name of members:
1. ZahrulKayum bin Mohamed 2. MohdAmeerul Ashraf bin Ismail 3. Abdul Qayyum bin Mahayuddin 4. Muhammad Fathi bin Zafisah 5. NorhiyatibtMuhamad Noor

Subject: IMT 2432 TTO Name: MsAlyster Wong

CONTENT
1. Business Idea 2. The Marketing Plan 3. The Operation Plan 4. The Admin Plan 5. The Financial Plan

Business Idea
Customer Value
The business nature would be of the dealership of the Perodua unit of Perodua Group. The business will only sale the car and provides service to Perodua cars. The company vision is to be a leading automobile dealer in Kuala Lumpur in the fourth coming years in the car dealership.

1. Objective of the company : To give the superior quality products and services with affordable price. To achieve 500 unit sales of car in year one. To increase number of Service Centre in future. 2. Customer value : Customer will choose either modern design or performance of the car. Modern design Aerodynamic design Interior design performance the value torque of the internal-combustion engine horsepower

Exterior design and accessories Air intakes Color design Exhaust system

3.

Benefit to the customer : Good after sale service Duration of car warranty Many and nearby Service Centre so it easy to send car for service Low spare part cost

Market Size and Contribution Aim:

i. To target 20% of car dealer market shares in Klang Valley. ii. To control 60% of Perodua service centre in Klang Valley.

Competitor Analysis
i. ii. iii. There are many competitors in this industry. List of competitor such as Proton, Kia, Naza and others. Advertising is one of the most common ways to promote the car. The company will organize campaigns, agents and road shows. Other important marketing strategies to compete with other car dealers are: Quality control Gift Extended service and warranty of the car
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 Financial Issues
Planning to get a loan from the banks and also join ventures with any investors that want to join our company. Get loan from Bank Negara or other bank.

Entrepreneur Fit Questions Answers

Do you and the team have the knowledge and skills required Yes for this business? Do you have any experience in this industry? Are you interested in this business? Depending on the nature of the business, do you have the required network in developing the business? Do you take risks or a gamble or risk averse? No Yes No Yes

Do you have a good reputation in the market with respect to Yes integrity, honesty, ethics? Does your entrepreneurial team shares your passion and consists of competent professionals?

Yes

The Marketing Plan

The Market
a) Description of target customer profile by using variables such as gender, age, income, lifestyle and potential market. Variable Gender Age Income Description Suitable for either male or female Must be between 25 and above Middle range income approximately above RM3K per month. A car is suitable for single individual or for a small family For domestic used of for export

Lifestyle Potential market

b) > Estimation for the potential market for each target customer and the market growth in %. > The annual market growth for the targeted customer is 4%. YEAR 2012 YEAR 2013 ( Year 1 X Est. market growth)

Num of total potential sales in units

1 year= 189K units 1 unit=RM 56,300.00 189K units= RM 1.06 billion

1 year = 196K units 1 unit = RM 56,300.00 196K units = RM 1.1 billion

Registration & Market Share %

35% 30% Market Share 25% 20% 15% 10% 5% 0% 2005 2006 2007 2008 2009 Year Units Sold Market Share 2010 2011 2012 2013 50 0 150 100 Units Sold 250 200

References http://paultan.org/2013/01/15/perodua-sells-a-record-189000vehicles-in-2012-retains-market-leading-position-with-30-2-share

Market Share and Sales Forecast

Year 2012 Estimated market share % 0.2% Year 2013 0.5%

Estimated market share in total annual sales (RM or Units)

392 units = RM22.1million

980 units = RM 55.2 million

Selling Per Month Month

Jan Feb March April Mei June July August Sept Oct Nov Dec TOTAL

Year 1
36 30 38 30 20 28 30 26 32 36 42 44 392 UNIT

0.5% increase
18 15 19 15 10 14 15 13 16 18 21 22

Year 2
54 45 57 45 30 42 45 39 48 54 63 66 588 UNIT

Profit Per Month Month

Jan

Year 1
2 MILLION

0.5% increase
1 MILLION

Year 2
3 MILLION

Feb March April May June July August Sept Oct Nov Dec TOTAL

1.6 MILLION 2.1 MILLION 1.6 MILLION 1.1 MILLION 1.5 MILLION 1.6 MILLION 1.4 MILLION 1.8 MILLION 2 MILLION 2.3 MILLION 2.4 MILLION 22.1 MILLION

800 K 1.05 MILLION 800 K 550 K 750 K 800 K 700 K 900 K 1 MILLION 1.15 MILLION 1.2 MILLION

2.4 MILLION 3.15 MILLION 2.4 MILLION 1.650 MILLION 2.25 MILLION 2.4 MILLION 2.1 MILLION 2.7 MILLION 3 MILLION 3.45 MILLION 3.6 MILLION 33.1 MILLION

The Marketing Strategy Product

The good market strategy will affect the successful of business along with effort and better service that is demand by our customer.

Quality
Warranty

High quality
Our company provides 2 years warranty for every single car depend on problem.

Branding Design features

Our product will be named as Perodua. We are targeting to sell sporty and MPV type of car.

Distribution
The product is selling directly to customer by our shop or through our email peroduasellcar@yahoo.com. For further information, customer can contact direct to our office.

Location
Our business is located at Klang valley because of market fact.

Promotion
We also do some promotion to attract customer through road show and advertisement in newspaper.

Customer service
We provide show room at: Perodua Show Room No 25 Jln. Biduk 3/2, Seksyen 19, 40000, Shah Alam, Selangor.

We provide:
Sells car Service car

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The Operation Plan

Benefit To The Customer Benefits
Quality Spare part Customer service Delivery within 3 weeks Cost of production 3 years car warranty

Can be provided by the operations function?

Yes Yes Yes yes Yes Yes

Process Planning

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Receive order from customer

Order how many cars at factory

Provide a document to the customer

All cars are delivered to the showroom

Cars are being register at JPJ

Customer receive car in one month

i) Things to sale a car:

Certification to sell a car Showroom Transports Lorry Crane Flyers Advertisement magazine roadshow newspaper
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ii)

Bill of material (BOM):

cost to sell a car:

Material Showroom Transports Flyers Advertisement

RM 2,000.00 per month (R) 1,500.00 per use(R) 500.00 5,000.00

Total cost = RM 33,000.00 + RM 9,000.00 Target selling = RM58,800.00 per car

Sales forecast next 2 years.

month Jan Feb Mac April Mei June 2013 36 30 38 30 20 28 2014 54 45 57 45 30 42 2015 78 65 84 89 93 85 2016 94 75 90 93 95 89
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July Aug Sept Oct Nov Dec TOTAL

30 26 32 36 42 44 392 UNIT 0.2%

45 39 48 54 63 66 588 UNIT 0.5%

88 95 65 80 90 87 999 UNITS 1.0%

93 97 70 88 96 90 1070 UNITS 1.5%

Location We choose to locate our showroom at Subang Jaya. Otherwise, Shah Alam is the most strategic place to start up our business. The layout plan Showroom

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 Man Power Planning Position

Salesman Manager Driver

Numbers
5 1 4

Category
Direct Indirect Direct

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 Remuneration schedule for operation

Position No Monthly Total salary per monthly person salary EPF 13% SOCS O 2% Total monthly amount Bonus 1 Total month annu al mont h Rm2000 Rm14 8000 Rm3000 Rm44 400 Rm1000 Rm55 204

Salesman 5 Manager 1 Driver 4

Rm2000 Rm3000 Rm1000

Rm1000 0 Rm3000 Rm4000

Rm260 Rm40 Rm390 Rm60 Rm130 Rm20

Rm1150 0 Rm3450 Rm4600

Facilities, Machine and Equipment Planning

Name of fixed asset Transport Showroom TOTAL No 2 1 Cost per unit RM 1500 RM 100 k Total costs Useful life RM 3000 RM 100 k RM 103 k 5 years Depreciation or rental per month RM 1500 (R) (per use) RM 1666 (D) (5 years)

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 Operational Budget for Operation

Jan Salaries (epf , socso) Water and electricity Insurance TOTAL RM 9200 Feb RM 9200 Mac RM 9200 Apr RM 9200 May RM 9200 Jun RM 9200 RM 2000 RM 1000 RM12 200

RM 2000 RM 1000 RM12200

RM 2000 RM 1000 RM12200

RM 2000 RM 1000 RM12200

RM 2000 RM 1000 RM12200

RM 2000 RM 1000 RM12200

July Salaries (epf , socso) Water and electricity Insurance TOTAL RM 9200

Aug RM 9200

Sept RM 9200

Oct RM 9200

Nov RM 9200

Dec RM15200

RM 2000 RM 1000 RM12200

RM 2000 RM 1000

RM 2000 RM 1000

RM 2000 RM 1000

RM 2000 RM 1000

RM 2000 RM 1000

RM12200 RM12200 RM12200 RM12200 RM18200

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The Admin Plan

The organizational structure

General manager x 1

Marketing manager x 1

Admin & Finance manager x 1

Salesman x 5

Accounts clerks x 1

Driver x 4

HR Officer x 1

IT officer x 1

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Position
General manager Marketing manager Salesman Driver Admin & Finance manager Accounts clerks HR Officer IT officer

Numbers Category
1 1 5 4 1 1 1 1 Indirect Indirect Direct Direct Indirect Direct Indirect Indirect

Remuneration schedule for admin

Position

No

Monthly Total EPF salary monthly 13% per salary person Rm3000

SOCSO Total Bonus 1 Total 2% monthly month annual amount month Rm3450 Rm3000 Rm44400

Admin & 1 Finance manager

Rm3000 Rm390 Rm60

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Accounts 1 clerks HR Officer 1

Rm2000 Rm2000 Rm2000

Rm2000 Rm260 Rm40 Rm2000 Rm260 Rm40 Rm2000 Rm260 Rm40

Rm2300 Rm2000 Rm29600 Rm2300 Rm2000 Rm29600 Rm2300 Rm2000 Rm29600

IT Officer 1

Facilities, Machine and Equipment Planning

Name of fixed No asset Computer Fax machine Planner and organizer Bulletin board TOTAL 4 2 1 2 Cost per unit RM3000 RM2000 RM500 RM100 Total costs RM12000 RM4000 RM500 RM200 RM 16700 Useful life 5 YEARS 3 YEARS 8 YEARS 2 YEARS Depreciation or rental per month -

Monthly Operational Budget for administration

Jan Salaries (epf , RM Feb RM Mac RM Apr RM May RM Jun RM 10350

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socso)

10350

10350

10350

10350 RM 1000 RM 500 RM 11850

10350 RM 1000 RM 1000

Water RM 1000 RM 1000 RM and 1000 electricity Others TOTAL RM 500 RM 11850 RM 500 RM 11850 RM 500 RM 11850

RM 500 RM 11850

RM 500 RM 11850

July Salaries (epf , socso) RM 10350

Aug RM 10350

Sept RM 10350

Oct RM 10350 RM 1000 RM 500 RM 11850

Nov RM 10350 RM 1000

Dec RM 19350

Water RM 1000 RM 1000 RM and 1000 electricity Others TOTAL RM 500 RM 11850 RM 500 RM 11850 RM 500 RM 11850

RM 1000

RM 500 RM 11850

RM 500 RM 20850

Total for 1 years operational budget = RM 11850x 11 = RM 130350+ RM 20850 = RM 151,200.00

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The Financial Plan

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