1.0 Executive Summary
Twin Cities Car Wash will be the go to car wash for the Apple Valley, MN area. The car wash options in the area leave much to be desired and Twin Cities Car Wash will be looking to fill that void. No longer will customers have to wait in line at single, automatic washes for a less than stellar wash. Twin Cities Car Wash will offer multiple wash bays that will use top of the line soaps and materials that will leave vehicles spotless. A separate wash bay for boats and recreational vehicles will also be available along with free air and vacuums.
The first Twin Cities Car Wash will be based in Apple Valley, MN. This area has a number of benefits in terms of the market that it will provide for the business. Almost 38% of the households in the area have an income of $93,000 or higher (CBRE Strategic Insight, 2012).
Twin Cities Car Wash plans to break even for the first year and plow any additional profits into marketing and advertising to build up and increase customer base. By year three an expansion of 2 -3 more car washes opened up throughout the area is planned.
2.0 Situational Analysis
Twin Cities Car Wash is on the verge of opening its first car wash in Apple Valley, Minnesota. The key to it getting off to a good start and growing into a successful business is a top-notch market plan. Twin Cities Car Wash will offer high-quality, automatic car wash bays, self-wash car wash bays as well as an oversized boat and recreational vehicle wash bay. 2.1 Market Summary
At first, the target market for Twin Cities Car Wash will consist of the city limits of Apple Valley, MN. Population growth for this city through the end of 2016 is projected to be 1.79%. Based on statistics from the second quarter of 2011, this area has a population of 50,509 with total of 19,143 households and an average household income of $93,852 (CBRE Strategic Insight, 2012). Our target demographic will be consumers in this market who are age 25 – 45 and who drive vehicles and boats. 2.2 SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the company and describes the opportunities and threats that Twin Cities Car Wash is up against. Strengths
* State of the art car wash
* Multiple bays for faster services
* Customers have the option of automatic or manual car washes * Special bay for boats and recreational vehicles
* Customers can pay with cash, credit, or PIN numbers that can be purchased from our website or received through special promotions.
* New business in the community; element of the unknown
* No customer base built up yet
* Competitors already have established customer base
* Repeat customers
* Nothing else like this in the area
* Many similar markets to target for future expansion
* Potential for future competition opening in the area
* A dip in the economy causing households to decrease discretionary spending * Extremely cold weather that wouldn’t allow for wash to operate 2.3 Competition
Major competitors in the Apple Valley, MN area are Holiday and Kwik Trip gas stations. These companies have a total of five car wash locations between the two of them. Each of them is automatic and only has a single bay attached to the gas station building. Additionally there are approximately four other small gas stations that advertise car washes.
Holiday currently offers unlimited car washes for a monthly fee. This fee is not advertised on their website, the only detail that they offer is that it is tracked by an RFID window sticker (Holiday, 2012). Kwik Trip also offers a monthly fee program for a set number of car washes (Kwik Trip, 2012).
Outside of the gas station offerings there is one independent car wash company in the Apple Valley area that would be a competitor, Paradise Car Wash & Detail Center. They offer low priced packages that include automatic washes...
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