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COMSATS INSTITUTE OF INFORMATION TECHNOLOGY Date of submission: May 17,2010 AUTOMATIC CAR WASH 1

Automatic Car Wash System CONSUMER BEHAVIOUR

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Automatic Car Wash System CONSUMER BEHAVIOUR PROJECT

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Page 1: Automatic Car Wash System CONSUMER BEHAVIOUR

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY

Date of submission: May 17,2010

AUTOMATIC CAR WASH

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DEDICATED TO OUR PARENTS

AND TEACHERS

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TABLE OF CONTENT

Project objective………………………………............... 06

Acknowledgement………………………………..............07

Executive summary……………………………….......... 08

History………………………………................................ 09

Introduction………………………………....................... 11

Types………………………………....................................11

In-Bay Automatic……………………………….................. 12 Conveyor………………………………................................ 12

Needs and requirement of product ………………………………. 13

Positioning ………………………………......................................... 13

Target market analysis………………………………..................... 14

Promotion/ communication feedback…………………………….. 15

METHODLOGY OF RESEARCH ………………………………. 16

Primary/secondary………………………………................ 17

Sample elements……………………………….................... 17

Size……………………………….......................................... 17

Units( area )………………………………............................ 17

Type ………………………………........................................ 18

PRODUCT KNOWLEDGE……………………………….......18

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INTERPRETATION/FINDINGS………………………………............18

Statistically………………………………..................................................... 19

Graphically………………………………..................................................... 19

SOWT Analysis…………………………………………………………….20

CONCLUSION………………………………...................................... 20

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PROJECT OBJECTIVES

Being students of Management Sciences our core objective is to learn

things practically. At present, the people are the most important factor for

the success of any business. Our main objective is to provide the

consumers such a product that is time saving and convenient and that

provide them better facilities than already available options.

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ACKNOWLEDGEMENT

We are grateful to all of people who assisted us in doing work on project.

The most important in such project to be acknowledged is Maam Aziza

munir. It was due to her that make us able to implement consumer

behavior practically through launching a product in Pakistan.

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EXECUTIVE SUMMARY

This project is about automatic car washing system. This system is

widely used in developed countries but in developing countries this

system is not introduced yet.

An automatic car wash is a car wash in which you drive into a tunnel-like

bay, and wait while machines spray your car with a sequence of water,

soap, and wax. this car washes use high-pressure water and detergents

rather than actual brushes to scrub your car. This method protects your

car paint.

This car washing system is more reliable , less time consuming and more

convenient. Two types of technologies are used in it first In-Bay

Automatic in which your park your car and machine move and the other

type is Conveyor in which your car also move through different stations.

This system basically used by the business class and the people who are

possessive about their cars. And want a system in which there is no need

to leave a car or stand outside during washing a car

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HISTORY

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The First Car Washes:

One of the first commercial car washes appeared in Detroit in 1914,

where two businessmen started a manual car wash. It required the customer's

car to be pushed around a circle to different stations, where it went through the

various stages of washing.

Before the first automatic car wash opened, there were only about

32 drive-through car washes across the United States, according to the

International Car Wash Association.

Going Automatic:

Around 1928, car wash engineers pioneered the idea of a car wash in

which the car would be pulled by a mechanism that attached itself. The idea

came to fruition in 1946, when the first semiautomatic car wash appeared in

Detroit. Though the car was pulled by a machine, the car was scrubbed by

manually operated brushes.

Dan Hanna:

After being inspired by a car wash in the 1950s, Dan Hanna opened his

own in Oregon. A successful businessman, Hanna eventually owned 31 car

washes, and began engineering his own equipment. He went on to develop

inventions that would shape the industry, and became the world's premier car

wash equipment manufacturer, according to the company website of Hanna

Car Wash Systems International, LLC.

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Organization:

Also in the 1950s, several dozen car wash professionals gathered and

formed the Automatic Car Wash Association. Today the organization is known

as the International Carwash Association, and it represents the industry with

monthly newsletters, government relations and an annual expo.

The Industry Today

The International Carwash Association estimates that approximately

22,000 car washes worldwide now employ around 500,000 people.

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INTRODUCTION

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An automatic car wash is a car wash in which you drive into a tunnel-

like bay, and wait while machines spray your car with a sequence of water,

soap, and wax. Some car washes offer additional features as well, but this is

the basic model. this car washes use high-pressure water and detergents

rather than actual brushes to scrub your car. This method protects your car

paint.

Many Americans treat their cars as nicely as they treat their bodies, so it

might help to think of an automatic car wash as a luxurious bath for your

automobile. Of course, the appeal of automatic car washes is that they’re

luxurious for both you and your car; all you do is to sit comfortably in your

quickly becoming clean car.

In addition, it is important to mention touch less or no-touch, car

washes, which are a subcategory within many styles. Touch less car washes

use high-pressure water and detergents rather than actual brushes to scrub

your car. This method protects your paint but the cleaning itself is not quite as

efficient.

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TYPES

The following are the types of Automatic Car Wash Unit.

1. Self Service Car Wash Systems 

2. In-Bay Automatic Car Wash Systems 

3. Tunnel Car Wash Systems

4. Conveyor

.Self Service Car Wash Systems:

It helps to reduce the time of car washing and the labor cost and the car

owner himself washes his car with in specific time.

In-Bay Automatic:

You drive into these car washes and park. Then, a set of rotating

nozzles cleans all areas of your car.

Conveyor:

On the other hand, have stationary machines and move your car. You

stop your car on the conveyor belt and leave the car in neutral; the conveyor

belt then moves your car forward through a series of stations.

Tunnel Car Wash Machine:

In this technique the owner of the car parks his car in a tunnel and he

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has to do nothing and he has to wait for just 5 minutes and after five minutes.

He receives his car all washed, clean and dry on the next end of the tunnel.

Needs and requirement of Automatic Car Wash Service:

The need of Automatic Car Wash exists in Pakistan in such a way that it will

help the customers to save their time, as this car wash is much quicker in operation

and with in no time a person can get his car all washes and cleaned. So in this way

people will be able to save their precious time.

As the local car wash services currently available in Pakistan are not so much

quick and a car owner has to wait a lot while waiting for his turn. And the car is

washed with out any proper attention. No attention is given to wash the inner parts

and the interior of the car, so the car owner is not satisfied with these services. New

Automatic Car Wash Service is totally different from this traditional concept. There is

no use of human hands in such a car wash. All washing is made by machines. A

good quality of detergent is used which is specially formulated for the washing of cars

so it would not harm the paints of car. And high pressure of water is used which

cleans better.

While launching this new Automatic Car Wash Service, we will have a chain of

outlets in the main markets of the city where there is always a heavy flow of cars is

carried on. So in this way, more and more people will come and will det our service.

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This new car wash is good in such a way that the labour cost for washing the

car will be reduced, as in the manual car wash service stations, there are many

workers wash a single car, but in this new automatic car wash service, all the

washing is carried out by the machines, so in this way the owner of the car will be

able to reduce the labour cost.

Target Market Analysis:

New car owners:

Older luxury car owners:

Sports car owners

Lifetime owners:

Dealerships

Local businesses:

Market Share

Two of the four operations studied possessed a 100 percent market share of their

target markets. The other two share their markets equally. However, there is no doubt

the close proximity, one mile, of the two washes has adversely affected their profit

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margins.

Promotion/ Communication Feedback:

Advertising:

   It means any non personal paid form of communication using

any form of mass media.

Public relations:

 Involves developing positive relationships with the organisation

media public. The art of good public relations is not only to obtain favourable

publicity within the media, but it is also involves being able to handle

successfully negative attention.

Sales promotion:

 Commonly used to obtain an increase in sales short term. Could involve

using money off coupons or special offers.

Personal selling: 

Selling a product service one to one. You contact those people whom

you know very vell and those people fall in the category of same segment and

class

Direct Mail: 

Direct mail allows an to use the resources more effectively by

allowing to send publicity material to a named person within their target

segment. By personalising advertising, response rates increase thus

increasing the chance of improving sales. As each and every business class

person has its visiting card, so it is very easy to contact him personally or by

sending him a mail. So direct interaction is more effective and valuable than

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the other all type of contacts. Because in this you are able to express about

your product or service more briefly than any medium else.

METHODLOGY OF RESEARCH

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In order to conducting the research, we have studied a sample of

COMSATS University Islamabad. We have chosen a sample of 60 people

because it is convenient for us to study a small sample rather a complete

population.

Data Collection: Primary/secondary:

As we have selected questionnaires method to collect

information about Automatic Car Wash so this is primary type of data

collection. In which we have to process such a data which is first handed and

which is freshly collected. And there are no calculations have been taken up

till yet.

Sample elements:

The following are the sample elements of the sample which we

are studying to conduct our research.

Size:

We have a sample size of 60 people. Who are students of

COMSATS and they are having vehicles themselves or at there homes and

they know how to drive cars.

Units( area ):

Our sample belongs to COMSATS University Islamabad. As we

are also students of the same university so it was easier for us to interact such

a persons who have their own cars or having cars at their homes. Who are

well aware of the benefits of advanced technology and who would be able to

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answer properly about the questionnaire we have driven.

Type:

Our type of research is random. There are no specification of

department and degree.

PRODUCT KNOWLEDGE

The knowledge of the product is frequently available in the market.

The target market of the Automatic Car Wash is well known about this

procedure of car wash. No sooner this service will introduce over here, and

then the people will start to avail this service.

INTERPRETATION/FINDINGS

As the results of the questionnaire show that most of the car

owners in our sample are willing to be introduced a new automatic car wash

system in Pakistan. Most of them are more focused towards the quality of car

wash because if a person can afford a car then a little raise in car wash cost

which will give him a better wash as well as comfort and will keep him in style

is acceptable for him. As that type of business class people have always run

short of time, so, a quick and better car wash service is more attractive to

them. Because the people belonging business class have an issue of time and

they do not want that the paint and the shine of the color of their car is

damaged at any cost.

FESIBILITY REPORT:

As the most of the car owners in Pakistan want to keep their cars

clean every time and they have to wait for their turn at any manual car wash

station. Which is not acceptable for them and they do not like it. So Automatic

Car Wash Service is best for them as only 5 minutes process of car washing

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saves about one hour of the car owner. If this new service will be launched in

Pakistan, then it will be more successful and there will be minimum threats of

failure of this new business.

Statistically:

Our sample of population is consist of 60 peoples. And the analysis of filled

questionnaire showed the following results.

AGREE/DISAGREE ANALYSIS:

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AGREE/DISAGREE ANALYSIS

60 Total

15Disagree

45Agree

No. of Supporters

Variables

We have a sample of 60

people in our research, the

questionnaire filled by these

people have given us a

response in which,

Out of 60 people in our

sample of research, 45

are agree to launch

this new service in

Pakistan.

15 people have given

us a response that

there will be no use of

such an idea in

Pakistan.

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:

22

60 Total

07 Price

53 Quality

No. of Supporters

Variables

We have a sample of 60

people in our research, the

questionnaire filled by these

people have given us a

response in which,

Out of 60 people in our

sample of research, 53

are focused towards the

Quality Wash.

07 people are Price

conscious while

washing their cars. They

will choose those

service stations which

are cheaper in cost.

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Graphically:

The following graph is showing an analysis between the Price and the Quality

wash of the cars. The people in Pakistan are more focused towards the quality

washing of their cars. Mostly the male are more conscious and caring about their

cars.

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This Pie-Graph is showing the analysis of the survey. Most of the people are

willing to adopt new technology. But still there are a few people who do not want to

adopt new technology. They are happy with what they are currently having. They are

not ready to accept the change.

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HOW TO LAUNCH AUTOMATIC CAR WASH IN PAKISTAN:

The launching of an existing product in a new market is difficult when

you are unaware of the culture and the market demand of that product or

service. A detail study of that new market is required to launch your product in

that market. In our point of view, the following are few factors that must be kept

in mind in order to launch your product in the new market.

These factors are:

1. Study your competition:

While studying your competitor, we have to start by

Taking a serious look at your competitors.

Make a list of the Car Wash Services similar to the one you plan

to launch.

Even if our service is entirely unique and without existing

competition, it's important to put ourselves in our prospective

customers' shoes and imagine what they might give a response

of what we have planned to offer.

Once we decide who our competitors will be, review their

marketing materials, including their ads, brochures and websites.

Evaluate how our new service will stand up against what's

already being offered, in what ways we'll excel, and which

companies or their offerings pose the greatest threats to our

success.

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2. Target the ideal customer:

In order to successfully launch our new service with minimum financial

outlay, it's essential to focus exclusively on the prospects we believe are most

likely to purchase from us. These may be

Customers who are currently availing similar services and will

appreciate the additional features our new service provides.

Our best prospects have a perceived need for what we offer, can

afford to buy it and have demonstrated a willingness to do.

It’s always easier to fill a need than to create one.

3. Create a unique value proposition:

 At this stage, we will have a clear understanding of:

What we must offer in order to stand apart from our competition

who will want to take advantage of our new automatic car wash

offer

But we will have to deeply look into the many questions and

reasons.

1. Why customers will want to buy from you vs. the vast field of

competitors out there?

2. What benefits and features will you provide that your prospective

customers will value most?

The bottom line is that our new automatic car wash service "bundle"

should be unique and meet the needs and desires of your best

prospects.

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4. Defining marketing strategy and tactics:

 Next, we will have to choose our sales and marketing channels. We

will decide here that how we will market our auto car wash service. There

are many channels as:

Online,

Via catalogue

Through personal selling

Offering Memberships

Promotion

Generally, multi channel marketers achieve the greatest success because

customers who can shop when and however they like tend to spend more

and shop more often. Our strategy is to market a low-cost workout Service

to people who can't afford to waste their time. We will choose following

ways for advertising and promotion of our ne automatic car wash service:

Traditional direct marketing

Online sales as your primary channels,

Direct-response

TV spots

Online ads

E-mail solicitations that link to our website.

5. Test your concept and marketing approach.

With all the money it takes to bring a new product or service to

market, it's foolhardy to rush headlong into the launch phase prior to

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testing. What should you test? It's best to examine your product or service

bundle plus your marketing message and you're your marketing materials.

Depending on what you plan to market and your budget, you can use

formal focus groups (or simply host roundtable discussions with members

of the target audience), employ online research or mall intercept studies, or

distribute your product to a select group of users for testing. Only after

testing is complete, should you proceed to the final creation of your

marketing tools and materials.

6. Roll out your campaign:

Public relations often play a vital role in the launch of a product or

service. You can use media relations tactics to place articles and win

interviews, get coverage by allowing key press to review your product, hold

a launch event, or use grass roots marketing to build buzz. But no matter

what publicity route you choose, first make sure your product or service is

completely ready and available for purchase in order to maximize returns

from the coverage you receive. And your other marketing efforts should

follow closely on the heels of your press roll out. Monitor the results from all

media, and in the first weeks and months, be prepared to adjust your

campaign to take advantage of what's working best.

7.  Know your product's lifecycle.

The campaign you use during the introduction and education phase

of your product or service launch will need to be updated as your product

or service matures. If you're monitoring your marketing results carefully,

you'll begin to see diminishing returns that will indicate when it's time to

revise the product or service itself, alter your media message, or even

phase out this particular offering and lay the groundwork for the launch of

your next great idea.

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SOWT ANALYSIS:

With the help of SOWT analysis we are able to know that what are

those opportunities which are available in that market. What will be the threats to the

entry of the product in a new market and what are the strong features of that product

which are being demanded in the new market.

The strong point of Automatic Car Wash is that it is a latest

technology of Car Washing. And no one has still introduced this technique in

Pakistan. More and more people will accept this new technology and they would be

able to save their time with the help of this quick car wash service.

The Automatic Car Wash Service will be new and as it is automatic

process of cleaning the car, so the people who are conscious about their cars and

who really take care of their cars will be more attracted and will avail this opportunity.

As there are no side effects and no dangers of this service and only

the benefits are there, so the only threat is that, this Automatic Car Wash will charge

a higher price as compared to the manual car wash.

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CONCLUSION:

As the graphical and statistical analysis shows that the

demand of the Automatic Car Wash Service is much high and the

people are willing to wash their cars in such a place where their car

paint is not damaged and a better wash is given! And a very important

factor that the people are able to save their time as this car wash takes

only 5 minutes and the car is dried as well.

So this new Automatic Car Wash service should be

introduced to Pakistani Market as there are so many potential customers

waiting for such services.

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