Super Clean Solutions

Summary
SUPER CLEAN SOLUTION is a start-up of the car cleaning business primarily for the high-
end cars. Depending on the customer's requirement, car cleaning might include both interior
and exterior cleaning. According to the customer needs of interior cleaning, outdoor cleaning,
or both, the cost of this service depends. The cost also depends on the model of the car being
washed. Various cleaning procedures would be needed for different types of care, some of
which would be extremely intricate and involved. Since most consumers come in on
weekends, this business is not in regular demand throughout the week. The demand for
workers in weekends is therefore very high. Several businesses compete in this industry;
however, the majority provide specialised services. Hence this firm can capitalize by a
strategy designed to offer all kind of services. The costs of purchasing cleaning equipment are
incurred regularly. The firm is looking for a strategy to minimize the fixed and variable costs,
labour costs and advertising costs and to select a perfect marketing strategy with minimum
cost.
Analysis of the case
The owner of the company, Max, currently cleans 2 cars per week. It takes about 3 hours to
clean
an expensive car as these cars demands a lot of attention to detail. But if he can accommodate
the other two segments i.e., old car owners and the mid-priced car owners along with the
expensive car then he can clean 3 cars a day. With proper investments in equipment, garage
and advertising, his service can be provided to multiple customers.

Market Summary

Target markets are

 Old car owners
 Mid-price car owners
 Expensive car owners
Market Demographics
The following would be the geographic, demographic, and behavioural factors of the
potential customers:
Geographic- Super Clean Solutions is still in its development phase and has not set any long-
term geographic boundaries for its customers as it will mostly try to cater the customer
around the area it operates.
Demographic-High income earners are the main target customers for the company to begin
with. The age bracket will be around 35 to 60 years old. The company would want to shift the
focus to the mid-range car owners particularly in the age bracket of 20 to 39 years old to
increase its business operations.
Behavioural- The company in addition to the high-end customers would want the mid and the
low tier car segment to get their cars serviced. There is also a segment who self-services their
car. This company should give extra services and follow up with the customers to increase
the loyalty base.

Market trends
Usually, car washing companies are not set up to serve all the customer segments equally.
For example, most of the customer owning low and middle tier cars go to service stations and
get a car wash as an additional service other than the regular servicing of the cars. Hence, car
washing companies are set up specifically to target high end car owners who want high
quality service with high level of attention at frequent intervals. This segment is expected to
grow at a higher rate than the middle or low-end car owners’ segment. This is also indicated
by the presence of 30 specialised car cleaning service centres in the area ready to capitalise
on the market. The prices charged by these specialised cleaning firms is between $175-
$225.This price margin will ensure a high profit margin. However, new players like super
clean solutions can have a competitive edge if they cater to the low and middle tier car
services in addition to the high-level cars servicing.

SWOT Analysis

Strengths Weakness

 Personal experience in a small garage  Not enough capital to grow the

setting can connect with the existing business
customers  New entrant in the market so first
 Knowledge of the existing year survival is crucial
competitors to create a better  Lack of customer loyalty
marketing strategy
 Can provide extra service like oil
change at no extra cost

Opportunities Threats

 High expected growth among the  High entry barrier due to existing
middle and low tier car service customer loyalty and high price
segment as few players are catering range
to that market  Competing not just with other
 10% reduction in service materials if companies but also with self-
ordered in bulk quantities servicing customers who chose to
avoid regular servicing
Marketing Strategy
Target markets- The market presents fair business opportunities with respect to small and
medium car service segments. If properly exposed these segments can bring enough revenue
and repeat customers thus helping Super clean solutions to position themselves in the market.
Since it is early days for them getting high end clients can be a challenge which they can
nullify by targeting the other two segments.
Positioning- SUPER CLEAN SOLUTIONs can position itself as the most efficient car
cleaning service provider in the middle and lower car service segment. This positioning can
be achieved by giving more than the customers expect in terms of oil change at no extra cost
or the next service at half the price if done within a month. The follow up after service also
generates a positive feeling in the customer and can bring repeat purchase.

Assumptions

 A market of 60-90 cars per day exists as there are 30 existing centres with a minimum
of 2 cars being washed per day.
 Business newspapers are used to target the high-end customers while billboards are
mainly to target across segments.
 Markets are expected to grow at 10%

Financials

Break Even Analysis

Expenses Amount (USD)

Car Cleaning equipment (fixed cost) 5000 (one time)
Rentals for garage and office 1200
Power and water 100
Risk cover 100
Variable cost 1200 (Rs.25per car*48cars/month)
Part Time labour (on weekends) 480
Fixed cost (business newspaper) 1200 (twice a month)
Fixed costs (billboards) 850
Total Expense per month 5547
Monthly Break-even units 37
Monthly Break-even sales 5550 (37*150)

Month Month 2 Month 3 Month 4

1
 No of cars washed 48 53 59 65
Fixed cost
Equipment cost 5000
Rent 1200 1200 1200 1200
Risk cover 100 100 100 100
Power 100 100 100 100
Total Fixed cost 6400 1400 1400 1400
Variable cost
Variable cost/wash 25 25 25 25
No of part time workers 1 2 3 4
Cost of part time workers 480 960 1440 1920
Total variable cost 505 985 1465 1945
Advertisement cost
Business newspaper 1200 1200 1200 1200
Billboards 850 850 850 850
Total advertisement cost 2050 2050 2050 2050
Total cost 8955 4435 4915 5395
Revenues 7200 7950 8850 9750
%Change in sales unit - 10.5 11.3 10.16

The purpose of Super clean solutions marketing plan is to establish it as one of the main
players in the car washing space. To get effective results following metrics should be
monitored
 Monthly revenue
 Monthly expenses
 Repeat customers
 Addition of new services