2. Executive Summary Opening up exclusively for the lower income groups and in a location wherein High end automobiles arent a scenario, Auto-Mato is a start-up that offers a complete store for all the models of the 3 Wheelers as well as a a retail parts store for 3 Wheelers. Mato-Auto will take care of the Shollinganallur to the Pondichery route wherein thre is not a single 3 wheeler showroom. Mato-Auto will have a great opportunity as far as this area is concerned as this seems to be an area wherein many individuals are capable of getting a 3 Wheeler especially Kalapettai where agriculture is a main occupation and people would want to transport the crops which can be done by small end 3 wheeler goods vehicles. The showroom will be first opened in Shollinganallur with a rented space in the beginning after which will be expanded after a period of 2 years
3. Mission The mission of Mato-Auto will be to give the customers 3 wheeler’s more than just a vehicle as that of being a desirable mix of quality Automobiles and to create a friendly atmosphere where Mato-Auto will be known as their 2nd home away from home in terms of the service they would be getting
4. Company Ownership Mato-Auto will be completely owned by Mishaal Hamza, who is a Management graduate from Harvard Business School, USA. He has a 6 year experience with McKinsey & Company in Florida and the last position held was that of a Procurement Manager
5. Keys to Success Mato-Auto’s Keys to success are: Marketing Services Recruitment of experienced managerial talent Raising Sales Providing excellent services Customer Satisfaction A wide range of all the brands available at any point of time
6. Objectives To become the leading dealer in the 3 Wheeler Industry. Increase sales to make Mato-Auto a sustainable business. Significantly increase sales by creating a new market segment of customers
7. Company Summary Mato-Auto will be an exclusive outlet for all the brands of 3 wheelers available in the market, wherein customers will have a look into all the brands and will enable them to make a choice of their preferred brand of vehicle. Mato-Auto is all about All brands under one roof.
8. Start Up Summary The owner of the showroom will put in an amount of Rs 25,80,000 and the rest will be taken a loan for a 5 year basis which will be repayed to the bank on time. The property at which this showroom is located belongs to Mr. Abdul Rahman who is the father in Law of Mato-Auto’s owner Mr Mishaal. He has agreed to give away the showroom which was earlier a furniture showroom for a Rental agreement of 10 years, each year which would be Rs 5,00,000.
9. Application of funds Rental Costs Manpower Costs Salesman & Professionals: The salaries paid to the salesman and Professionals would be the best in the market and would not compromise on it as it will be paid at its best. Administration Staff: The admin staff or the person in charge of accounts and taking care of the requirements of vehicles from dealers have to also be given salary on a monthly basis Marketing & Promotion costs: These costs will be incurred in the beginning of its operations in order to create a visibility to the market. Development / Infrastructure Costs: These costs include costs towards Interiors, Furniture and Fittings to make the showroom attractive. Maintenance Costs
10. Market Analysis Summary Indian automobile industry witnessed a growth of 16.04% in 3-wheeler segment. Indian 3-wheeler segment includes a range of vehicles such as auto rickshaws, mini tempos, etc.In India, there are 6 local and multinational companies making 3-wheelers. Bajaj Auto is the leader in 3-wheeler manufacturing. It has also dominated the global arena after Piaggio.
11. Production Production During financial year 2005-06, 3-wheeler production showed a growth of 16.02% over the preceding year. 3-wheelers have been showing an upward production trend. At present, there are more than 4.34 lakhs 3 wheelers manufactured in Indian Automobile Sector
12. Sales in Indian automobile industry During financial year 2005-06, 3-wheeler sales in Indian market showed a growth of 17%, with an increase in exports by more than 40%. Sales trend of 3-wheelers in Indian market
13. Chennai Market From the above statistics we can make out that there is enormous demand for the 3 wheeler market in India and the same can be interpretated for the Chennai region as well. Another important point to be noted is that since Shollinganallurisn't such a highly developed place and many people who are living here, make their source of living either by Farming, Drivers etc and this is a great potential for the 3 wheeler market as these category of people generally use this kind of vehicle.
14. Market Segmentation Local residents (People living within a locality of 25 Kms from the showroom) would be the people who will be targeted and people from Pondicherry are also expected to come to Mato-Auto as there isnt a showroom in Pondi with all the Brands under one roof.
15. Strategy and Implementation Summary Competitive Edge: Mato-Auto’s competitive edge lies in the vision of its Owner, who understand better than many of their rivals that a visit does not just include a customer to but a 3 wheeler, it includes the entire service experience Positioning Statement: It is the express purpose of Mato-Auto to become the local leader in quality and service experience of all the small Dealerships firms within the Chennai Circle while maintaining a low cost plan.
16. Marketing Strategies The company has a modest program of marketing its services that include the following: Flyers. Direct mailers. Discounts to regular Customers. Newspaper ads. Yellow pages. Referrals through other local businesses.
17. Promotion Strategy The promotion strategy will take the form of flyers, direct mailers, price discounts, and advertisements in newspapers and yellow pages. Mato-Auto will also make its presence felt in Micro Blogging sites like Twitter. Mato-Auto does not desire to spend a large amount on marketing until the firm is ready to expand either into new facilities or open up new ones. It is estimated this will occur sometime after 2 years
18. Pricing Strategy Mato-Auto exists in a purely competitive environment where each firm must be a price taker. In other words, the firm has no ability to affect the market price of its services, regardless of how many automobiles sells. In this case, therefore, marginal revenue (the revenue incurred by producing or servicing one more unit) is Just 10% to the price charged. Furthermore, because the demand curve is essentially horizontal, Mato-Auto can sell automobiles at total capacity without effecting the price.
19. Sales Forecast Since the 3 Wheeler industry is, operationally, a sales-shop environment, it is somewhat difficult to estimate sales.From our statistics earlier we have come to a consensus that there will be atleat 2 vehicles sold on a day to day basis and given that 10% is the margin the manufacturers give for the Dealers, it would mean that there would be a profit of Rs 10,000 per Vehicle. For the most part, sales for an automobile dealership are steady year round and reflect little seasonality.
20. Management Summary Mishaal worked with McKinsey & Company for 6 years before which he was associated with TVS Motors as the Sales Manager. Since that time, he has worked for a variety of projects for TVS in getting the main project under the TV head of overlooking the sales of 2 Wheelers in Chennai Region and has numerous certificates in achieving Targets. During the past two years Mr. Mishaal has attended a PGPM correspondence course on the Sales Module which is an added advantage Mishaal had attended IIT Madras where he did his B-Tech in 1990’s. In anticipation of Mato-Auto’s business needs, Mr. Mishaal is taking night classes at Symbiosis Academy in marketing.
21. Financial Plan As said earlier the finance will be taken care of for the initial investment in the following ways: The owner Mishaal contributing Rs 25,80,000 Taking a loan from HDFC Bank for Rs 50,00,000 in order to purchase the stock necessary to run the showroom Cash Flow projected for the initial year of operations is given below:
23. Summary Mato-Auto will be a huge busines enterprise at the end of the 3rd year and it will have a great market to cater to given the rate at which the market is growing. Since its a showroom having all the brands under the 3 wheeler category and this will be a huge chance for the business to develop in a place like Shollinganallur.
