Auto tech limited

SPARKS ALERT AUTOTECH LTD

MR. Errol Gergory10/12/2012

Renelle Wilson -1001479Sashona Burke-1002261Ricardo Moody-1204863Davina Ellington-0701662Zania Angel 1103131Indria warren -0801915Cherise Palmer-080668 Monday, October 8, 2012 6:21 PM Teacher name: Mr.Errol GregoryTutorial date: Thursday 10-12 pmAuto tech limited-KEEP YOU IN THE KNOW

INTRODUCTION Auto-tech limited is the sole distributors of Spark Alert. We are located at 33 Slipe Road Kingston 10.Our business hours Monday to Friday 8am -5pm daily. Spark Alert is a small electronic device that is attached to the engine of motor vehicles for the purpose of advance detection of mechanical defects that are developing within the motor vehicle. This device goes beyond the normal light indication that motorist are accustomed to, what it does is it actually gives audio visual indications about the defects within the vehicle well in advance of actual occurrence. This enables motorists to fix the problem and prevent any inconvenience. This idea was conceptualized through our daily observation of the different mechanical problems that non-savvy motorist face. Come and talk to us today we have a very reliable and efficient staff ready to serve you.Our executive staffs consist of:Zania Angel general manager,Renelle Wilson- managing director, Davina Ellington and Cherise Palmer -Accountants,Sashona Burke and Ricardo Moody - production operation manager,Inderia Warren - marketing manager

OBJECTIVES

The following are the objectives which we used as guidelines in obtaining the necessary information by means of the questionnaire1. To determine if there is available market for the business?2. To identify the target market?3. To determine the price the potential consumer are willing pay.4. To identify the major player in market.5. To determine how profitable this business venture will be.

TARGET POPULATION AND SELECTION OF SAMPLE

In order to meet our objectives, a random sample of 100 persons from the different region of Jamaica was conducted during the period September 24- October 2, 2012. In addition to distribution of questionnaires, we met with a group of individuals from Richmond of Academy on Thursday September 27, 2012 at 6:30 pm in room 1 (located on the58 Halfway tree Kingston 6) for approximately 30 minutes. The nature of this meeting was to get some feedback from the individuals to as related to the services we intend to offer.The target market selected comprise of both male and female drivers who own motor vehicle between the ages of 18 and over who are living in Kingston and St. Andrew area as well as other nearby parishes. These customers should own a modern model car such as a Mercedes, Honda, and BMW, SUV or any other kind of luxurious car. The income group target would be middle to high-income earners who can afford the product Spark alert. These customers are willing to pay the price, within the pricing of the product to avoid the common inconvenience of having a defective motor vehicle.

METHODOLOGY

Auto tech Limited has used research methods such as questionnaires and observations. The population of interest for this study is all adults who own or drives a car residing in the Kingston metropolitan area. The population that is accessible to this study consists of all persons who owns and drives a car of a later model. This resulted in a sample size of hundred (100) persons. On average, study participants were within the age group of 18 years and over. The majority of participants fifty-nine percent (59%) were male, Most of which either owned a car or had some sort of access towards one. While the study sample cannot be considered representative of the original population of interest, generalization was not a primary goal; the major purpose of this study was to determine whether the Sparks alert would be marketable. Observations were done on the different mechanical problems motorists face in their everyday journeys and their ability to assess the problem. Observation was also done on motorist knowledge of motor vehicles, wherein, if there is a mechanical problem if they were able to locate these problems on their own.

QUESTIONNAIRE

One hundred (100) questionnaires were issued and all were completed by random selected individuals of the age of eighteen (18) and over. In administer the questionnaires certain conditional factors such as time and management control were taken in consideration. Therefore, face-to-face interviews and direct issue were used to administer the questionnaires because of the advantage of prompt responses.The questionnaire consists of total thirteen questions and both open and enclosed. The sequence that the questionnaires followed were: relevant questions to our product were asked first while, personal questions were asked last. See Appendix for sample.

FINDINGSA total of one hundred (100) questionnaires were issued and all were completed by random individuals of the age of eighteen (18) and over. The methods use to administered these questionnaire were direct and interviews. Interestingly, also is that majority of these individuals would purchase a product like spark alert that is affordable and easy to understand.Frequency of ResponsesFigure 1

Figure 1 is showing the total amount of individuals who drive .Hundred percent (100%) said yes and zero (0%) said no.

Figure2

Figure 2 is showing the total amount of individuals who own their own car hundred percent (100%) said yes and zero percent (0%) said no.

Figure3

Figure 3 is showing the different type of vehicles that the respondent owns, Honda having the highest of thirty five percent (35%), Toyota twenty eight (28%), Mercedes twenty percent (20%), Nissan nine percent (9%), Subaru four percent (4%) and Chevrolet four percent (4%).

Figure 4

Fifty two percent (52%) of the interviewee have knowledge of car awareness from ten to thirteen percent, twenty six percent (26%) have knowledge of car awareness from forty to sixty percent, nineteen percent (19%) have knowledge of car from seventy to ninety percent and remaining three percent (3%) have knowledge of car awareness of a hundred percent.

Figure 5

This chart is showing how often individuals inspect their car. Fifteen percent (15%) said every day, twenty percent(20%)t said once a week, thirty-one(31%) percent said once a month and thirty four (34%) said other which their respond varied from twice every month, once every three months and 5 persons in particular said never.

Figure 6

This pie chart is showing how many individuals are aware when something is wrong with their car. Sixty- six (66%) percent said yes and thirty-four (34%) percent said no.

Figure 7

Respondents were asked do you know of any technological gadget that gives both audio and visual warning. A hundred percent said (100%) no and zero percent (0%) said yes.

Figure 8

This pie chart is showing the amount of individuals who are interested in purchasing spark alert eight- nine percent (89%) said yes and the remaining eleven percent (11%) said no.

Figure 9

Figure 9 was merely used as a follow up of figure 8. The population was asking would you purchase spark alert eight- eight percent (88%) said yes and twelve percent (12%) said no.

Figure 10

Figure 10 outlines the average cost the respondents are willing to pay for spark alert. Thirty seven percent (37%) said twenty thousand, thirty two percent (32%) said thirty thousand, eight percentage (8%) said forty thousand and twenty- three percent (23%) said other whose respond varied from ten to fifteen thousand.

Figure 11

Figure 11 is showing resident of respondents. Sixty six percent (66%) said Kingston, nine percent (9%) said Montego Bay, and twenty five percent (25%) said other who resides in places such St. Andrew and Clarendon.Figure 12

Figure 13 is showing the total number to whom the questionnaire was administered to and the gender they belong. Forty one percent (41%) of population were female and remaining fifty-nine percent (59%) were male.

Figure 13

The ages of interviewee vary from ten percent (10%) eighteen to twenty five ,thirty-seven percentage (37%) twenty six to thirty five, twenty nine percent(29%) thirty six to forty five and twenty four percent (24%)forty six and over.

ANALYSIS OF RESULT

In analyzing the results of the study the focus will be on the characteristics of Auto tech limited and how this service will be marketed to the potential customers; in order to secure a share of the market.PRODUCTION CHARACTERISTICS

Auto tech limited is a service based operation that will provide a product called spark alert a car gadget to individuals of Jamaica. This service will entail distribution of physical walking into the physical location or payment online. This service is designed to give individuals a more affordable, reliable and convenient car gadget to the ones that currently exists. Auto tech limited is unique because it offers combined services in one place. Individuals will have the option of both audio and visual have them combined as a car gadget at an affordable cost. Another key feature which makes spark alert different is go beyond the average car gadget it detect mechanical problem and warns you before the problem actually occur such as: - oil refill, Coolant refill, serving periods, Transmission fuel refill, Brake pad changes and any electrical

changes. Our services are technologically friendly as individuals will be able to use and understand our product because of the audio aspect. We will offer to deliver the product to those individuals who have ordered online. Our website will be user friendly and will simplify the registration and payment process for our customers.

DEFINITION OF MARKET The target market plays an important role with Auto tech limited, as it allows the organization to indicate which potential customers it will attempt to satisfy thereby selecting the market segment.The form of market coverage strategy the Auto tech limited will focus on is concentrated marketing which is especially appealing to companies like Auto tech with limited resources. Concentrated marketing provides an excellent way for small new businesses to get a foot-hold against larger, more resourceful competitors, thereby achieving a strong market position in the segments it serves.As it relate to target market selected is the Kingston & St. Andrew population. From the data collected, we plan to obtain eight -eight percent (88%) of the market share (see figure9). During the second year we hope to increase by twenty percent (20%) and provide for seventy five percent (75%) of the market share. Due to the small number of competitors in the market, there is potential for growth because currently, there arent enough suppliers who produce both audio and visual warning. There is also additional opportunity for growth, because of the uniqueness of our service. Our competitors focus is mainly on light indication; and they tend to offer a vast number of general services. On the other hand, Auto tech limited specifically targets the core needs of the individuals and seeks to meet their particular demand.

As with any growing organization, there are always potential risks or threats. At Auto tech we are no exception to this rule. Threats which we may expose while operating are: Spark Alert offers what many consider as a breakthrough in technology for the automobile industry. However, technology is our greatest threat with continuous innovation being released in the market. Also taxes and tariffs are other risks which we have to consider.

EXPECTED SALES TRENDSWith every new business, there is always the question of credibility and establishment. With that in mind, we expect to sell a minimum of 10,000 spark alert for the first year. Through marketing, more individuals will become aware of our services, hence sales will increase in second year. We expect to sell a minimum of 20,000 spark alert for the second year. On an average we expect that each day at least twenty-seven (27) customer would purchase a Spark Alert. We project sales for the year by summing the average cost for each Spark Alert purchase, then we times that by the number of customers in our database. This is depicted in the chart below.

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CUSTOMER ANALYSISOur target customers comprise of both male and female drivers who own motor vehicle between the ages of 18 and over and are living in Kingston and St. Andrew area as well as other nearby parishes. These customers should own a modern model car such as a Mercedes, Honda, BMW, SUV or any other kind of luxurious car. The partners of Auto tech Ltd have realized that drivers have mechanical difficulties everyday without being aware of it until the problem occurs. This results in damages to the car and delay motorist from getting to their destination on time. Auto tech Ltd realized that these individuals needs were not met. The associates of the company saw an opportunity and conceptualized the idea of having a car gadget that gives an audiovisual display of defects in the car in advance before it happens.Based on the inclusivity of the proposed business, the income group target would be middle to high-income earners who can afford the product spark alert. These customers are willing to pay the price within the pricing of the product to avoid the common inconvenience of having a defective motor vehicle. In providing this service in Jamaica, there is no provider of this type of car gadget with the benefits of giving customer an audio and visual warning. In addition, spark alert will minimize the risk of major mechanical accidents for our customers. It is also user friendly and reliable in the time of an emergency that can save time and money for customers.

PROMOTIONAL AND ADVERTISING STRATEGYAfter the target market has been identified, a well-coordinated effective and efficient promotional program will be implemented to build long-term profitable relationships with customers. Considering this objective our promotion mix will encompass Advertising, Sales promotion, Public Relations, Personal selling and Direct marketing. Advertising is any paid form of non-personal presentation and promotion of ideas, goods, and service by an identified sponsor. (Kotler, 2010) Our advertising campaign will be modified throughout every stage of the product life cycle. The mediums that will be used include: Newspaper: We will utilize this reliable medium to the fullest extent and as such this will be one of our major advertising medium. Newspaper ads will always depict our company logo in its original colors. The internet: Ads will run on Social network such as face book. Radio: This will be our main advertising medium since most cars have a radio. Again ads will be allotted to the most appropriate time slots for target audience. Word-of-mouth: Clients and others outside of the organization telling others about our product.Advertising informs the target audience about Spark Alert. It will assist in reaching a wide cross-section of geographically dispersed customers at a low exposure cost. Also important, is that it will reduce consumer fear and build the companys image.

Intense advertising will be done during its first year of operation. The company will expect little profit during that year due to the fact that it is a new product.Sales Promotion is a short term incentives to encourage the purchase or sale of a good or service (Kotler, 2010). Auto tech limited will utilize sales promotion tools such as coupons, advertising specialties, point of sale promotions and contests sweepstakes and games. For the first hundred customers to purchase Spark alert will get a thirty percent (30%) off.

For every person that introduce a friend to product they and their friend will get a ten percent (10%) discount this called tell a friend promotion Personal Selling will be employed as it is very effective at this stage because it focuses initially on developing a relationship with the potential customers. The company will also promote this product by associating itself with auto shows and other automobile events. This will be done by setting up booths at these events to promote and educated the public of the purpose of our products.

PRICING STRATEGYPrice is the amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service. (kotler, 2010) Our suggested retail price will be $20,000. Our initial disposition will be to offer ten percent (10%) discount of purchases of more than 20 and one percent (1%) for every 10 items thereafter in the same sale ( for example, client purchase forty spark alert for twenty thousand dollar each .the client total bill would be four hundred thousand will out the discount. He would have received ten percent off the total price of the first ten and then one percent off the other ten total price. )

Prices will be adjusted based on seasonality of demand. Pricing adjustment strategies such as promotional pricing will be adopted, this is a temporarily pricing product below the list price, and sometimes even below cost to increase short run sales. (Kotler, 2010)Given that our product is new to the market our pricing strategy is very important. Our pricing strategy is that of price skimming and this is uniquely geared to persons with high level income, due to the fact that those are persons that will normally driving high end motor cars.Our product will be available to the market on a daily basis between the hours of 8:00 am 5:00 pm during weekdays, Saturdays 8:00 am 7:00 pm and on Sundays 10:00am- 3:00pm. Thus making our product more marketable to buyers.

NATURE AND LEVEL OF COMPETITIONIn organizing Auto tech limited, it is recognized that our business will have a consistent level of competition. Our competition can have a positive or negative effect on a business entity especially a new venture. In hindsight of this fact, it is of paramount importance for new businesses to aspire for competitive advantage over their competitors in order to get a fair share of the market. Auto tech competition would mostly vary from new and updated forms of vehicles that may be very well equipped with the voice automated systems and which have various depictions of the different problems that may result within the car; under the hood of the car. The main competitors would be the new model cars of any dealers. These model cars are well equipped with a system within the car with the various depictions of the problems that may occur within the bonnet of the car and the various lights come up at the point of each problems occurrence. These cars have the ability to depict to the drivers of the car, the problem that is occurring by means of pictorial views simply just by visual aids.The SWOT analysis is a means by which the business keeps track of the business status; the SWOT Analysis for Auto tech Limited is:Strengths:The major strength for the company is that it is the only product of the sort that is being offered in the motor vehicle industry and thus it gives the company an advantage on a fair level over our competition on the market. The factor of the product having audio/ visual aids that not only allows the driver of the car to see the problem, but also the audio feature that tells the driver the specific problem that is occurring. Strength of this product would be the feature that within days of the actual problem occurring, the product recognizes the problem and lets the driver of the car know the problem. This way the driver will know the problem within days and know to go get it

fixed, and in the process preventing the regular mechanical problems that occur to most drivers that are on a journey to somewhere that dont know the meaning of the various lights that may come on in the car depicting the problem under the bonnet.Weakness: The weaknesses of the company could be the vulnerability to the market. Being a new product on the market, the product may not be perceived to be a good product or the product may not be received as much on the original target market as it should be so the company might not make as much revenue as they probably would have wanted to make in the first periods of the business lifecycle.Opportunities:Auto tech limited is open to many opportunities. Given the constant increase in the shift to the technological world, the doors of opportunity will be wider opened because Spark Alert is a technological gadget and the increase in the need for technological gadgets will greatly benefit auto tech limited and Spark Alert. The opportunity also presents itself in a form that the weakness of the product is eliminated through converting the vulnerability into a better option by means of lifespan on the market, in that a product that is on the market for longer is better trusted or by means of promotional methods such as advertising and getting the products reliability tested and proven. Threats:The threat that Spark Alert faces is that many drivers would rather go through the manual process of finding out the problems that are occurring under the hood of the car, and even though they themselves do not know what some of the light indicators mean or how to fix the problem. The pride factor also comes into play because even if they dont know much about cars and the mechanics there is some form of fear in admitting that they do not know much about their own problems so therefore they resort to the manual method that our competitors may offer. The weakness may also be exploited as a threat to Spark Alert in that the majority of the intended market will want to stick to our competitors because of loyalty or trust and thus it may cause Spark Alert some losses the early part of the businesss life cycle.

CONCLUSION& RECOMMENDATIONSBased on the findings and marketing research of this feasibility study, we came to the realization that a business of this nature would be successfully in the future once all requirements are met. There is potential for growth in this market, seeing that there are relatively few competitors. We hope to extend to other faculties in Jamaica to countries such Barbados, Trinidad &Tobago, Cuba just to name a few. In the future, we also hope to obtain a larger market share (refer to figure 14), thus increasing monthly and yearly income. Our major aim is to attract new customers, effectively and efficiently satisfy their needs and maintain these customers as active long term customers in our database. We hope to obtain the title of Number 1 of custom made car gadgets in the English speaking Caribbean. We intend to provide additional benefits for those persons who will be doing business with us over an extensive period of time. Some of which include: Each customer will be given a customer card and they have a chance of accumulating loyalty points based on use over a time. We will also have a golden savers club. Customers who have conducted business with us for over a year will automatically be added to this club and gain from the many benefits which are associated with the club.

APENDICES

QUESTIONNAIRESThis is a survey being carried out in to find out if a car gadget (Sparks Alert) is needed within Jamaica. Please answer the following question truthfully. Your name is not required and your full support is needed. Place a tick in the appropriate box. However, specific instructions are given where necessary. Thank you. 1. Do you drive a car? [] Yes [] No2. Do you own a car? [] Yes [] No3. What type of car do you drive? [] Honda [] Toyota [] Mercedes [] Others4. How do you rate your knowledge of cars? [] 10-30% [] 40-60% [] 70-90% [] 100%5. How often do you inspect your car?[] everyday [] once week [] once a month [] others 6. When something is wrong with your car are you aware of it immediately? [] Yes [] No7. Are you aware of any technological car gadgets that can detect problems with your car immediately before it occurs both visually and vocally? [] Yes [] No8. Would you be interested in such a product? [] Yes [] No9. Would you buy the product? [] yes [] No10. How much are you willing to purchase it for? [] 20,000 [] 30,000 [] 40,000 [] other11. What area do you reside? [] Montego Bay [] Kingston [] Other12. Gender [] Female [] Male13. Age [] 18-25 [] 26-35 [] 36-45 [] 46 & above

Mission StatementAuto tech limited is committed in being the leading brand by providing an innovative and quality product to the car industries market. Through close consumer contact and excellent relationship we will always be able to meet the needs of majority of our consumer.Vision StatementAuto tech limited will be the product of choice that will continue to establish brand recognition, good consumer/customer relations and satisfaction by successfully satisfying their needs.Company logo

SPARKS ALERT Auto tech ltd

Company slogan Auto tech ltd. Keeps u in the know

Business card

EXIHIBIT OF PRODUCT DESIGN

BOCHURE

Secondary data Kolter 2010 Car the world best ma

Table of content

PagesIntroduction2Objectives...3Target population &sample.4Methodology...5Questionnaire..6Findings.......7-19Analysis of result........................................................................................20-30Conclusion &recommendation ..31Appendices32-38

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Definition

Of

Business

Business ConceptCurrent OfferingsProjected Growth

Business ConceptSparks Alert is an high quality product, created to satisfy the needs of car owners both male and female who does not have enough knowledge about cars. The concept was borne out of the fact that there are persons who own cars and does not have enough knowledge about them and desire a gadget with the ability to talk to them about the different problems the car has and how long it will last without the problem being checked out etc. and all of this comes with a great price which includes installation.The firm will target the middle to upper to upper income consumers, with specific offerings designed to attract different demographic groups within the target market.

Current offeringsAuto Tech ltd current offering is exceptional and different because of our teams of experts will give free consultancy to clients once they come to install this gadget in their vehicles. Each client will be able to get discounted prices if they choose to come to our mechanics to fix any problems they face with their vehicle. The firm will also give the client tips as to how to maintain to excellent running of the car or even how to respond to certain problems. A special lounge will be available for customers who wants to pass their time by watching a movie or even just relaxing when waiting on their vehicles.Customers will definitely benefit from our products as we will definitely lessen car accidents and build the confidence of many individuals who have the fair of driving on their own.The firm will also offer out bound servicing to special high value clients, business partners who may want to utilize the service from the privacy of their homes offices or businesses the flexibility, originality and creativity of our products and services give us a competitive advantage and helps us to maintain the brand image and synonymous with excellence.

Projected GrowthAn opportunity for Auto Tech ltd to grow exists because market research indicates there is a growing need for high quality product and services offered by the firm.As persons in todays world are starting to drive at a younger age most of the time they dont really know anything about cars and we are there with arms open wide to offer our services and our gadget. As Mr. Gregory told me about a scenario a couple weeks ago that his wife encountered a dangerous experience all because she didnt understand the lights in the car so she ignored them and the oil was very low so she lost an entire engine, so I can ensure that if she had our gadget that experience would have been out of existence. And I also know that Mr. Gregory will purchase one of our gadgets for his wife as soon as we launch them.43