Sarkis H Mesrobian Hein Aung Prof.

Trilling

Feasibility Study Sport Luxury Importers INC 605 Commercial St. Cambridge, Ma 02138 4/22/13

Table of Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. Executive Summary...Page 1 Description of Products and Services...Page 1 Technology Considerations.....Page 1 Product/Service Marketplace..Page 2 Marketing Strategy..Page 2 Organization and Staffing...Page 3 Schedule..Page 4 Financial Projections..Page 5 Findings and Recommendations. Page 6

Executive Summary
In todays world the automotive market is booming and it has come into our concern that dealership should offer more services to the customers. We at Sport Luxury Importers INC will provide variety of common services such as selling, detailing and repair but we will offer something that is different, which is pickup/drop-off. What the pickup/drop-off is that customers have the option to schedule appointments where our employees come pick up your car from you, bring it to our repair facility, fix your car, then we will bring it back to you. Our projections, order of operations, how we will function will be based upon a local repair facility that has been operating successfully for the past 15 years. It has been doing so well that it is expanding its 3 bay garage and storage bay to a 5 bay garage plus storage place. The Repair facility that we will use as our template is HAYG Auto Repair, located in Cambridge Ma. We believe that the service is both beneficial to the customers and the organization. By taking the technology considerations, marketing strategy and the service marketplace into account we believe our dealership will succeed.

Description of Products and Services

Our Dealership, Sport Luxury Importers INC, will offer a variety of common services such as car selling, detailing, and repair. However how our company offers these services will give us the edge over our competitors. When people require car repairs, and/or detailing, they must take a day off from work, or make sure they give themselves enough time during the day to make sure their car can be taken care of. Most people do not have the time or the opportunity to take their cars to be repaired. This is where our services come in to play. At our dealership/repair facility, our customers have the option to schedule appointments where our employees come pick up your car from you, bring it to our repair facility, fix your car, then we will bring it back to you. We call it vehicle pickup/dropoff. If your car requires service that will take longer than a day, we will provide you with a loaner vehicle. At the end of day, customers will have a car that is completely repaired and the best part they will have never had to worry about setting appointments and taking their car to the dealer. This service is both beneficial to both the customers, and the organization. Our vehicle pickup and delivery service is very beneficial to our customers because it removes a lot of hassles from our customers. Everything is taken care of for the customers, car pickup, repair, and the delivery of their car back to them. People no longer need to worry about making appointments or taking day offs to take care of their cars. Hassle free service is what our company strives for, and what our customers want. Our vehicle pickup and drop off system gives us an edge over our competitors. When more people find out about our services, the more customers we will have. The more customers we have the more money we will make.

Technology Considerations
Just like any other dealership, we would have to be competitive with the hardware and software. Programs such as Manager plus, and Quickbooks are some of the software that we will require in order to keep track of customer records, customer information, and anything else related to the customer. We will require software that will keep track of our inventory, paychecks, and accounts payable and so on. Software such as ManagerPlus is found many dealerships. Our entrepreneurial idea of vehicle pick-up and drop-off requires only a one type of software that will keep track of what car needs to be picked up at what time, and provides an estimated time of return of the customers vehicle. All of the software required will be purchased from the companys that created them such as ManagerPlus will be purchased from Mitchell1. We will have staff that will run the programs and keep track of our information. Like mentioned before, our dealership will function just as any other dealership, however our edge will be our vehicle pick up and drop off service. Our dealership will offer an online service which customers may book appointments at their ease. Customers demand an easy way to conduct their car service. This service will allow customers to inform us that their car is in need of service, and where and when it can be picked up. This functionality must be integrated with our current web site. While having a small IT group; we would need to look externally to implement the service into our current web site. Therefore, the recommendation is to contract an internet marketplace provider who can work with us to meet our needs. As far as maintaining our website, our internal IT group can handle that.

Product/Service Marketplace
Our target market is basically anyone who owns a vehicle, and does have the time or hates the hassle of taking their car to the dealer. Our mission is to inform anyone who owns a car and is looking for a regular repair and maintenance facility. Our secondary task is to let them know about our vehicle pickup and drop off system. When people learn about how easy it is to sign up for our system, how they virtually have to do nothing and their car is fixed, they will not be able to pass the opportunity. Our competition is composed of other dealerships and repair facilities in the area. Along with keeping our prices on parts and labor rates competitive, we will offer our service absolutely free. A lot of our competition provide free shuttle service, we will also offer free shuttle service. Again, our dealership will function and perform just like many of those big Herb Chambers dealerships; however we will have an edge with our vehicle pick-up and drop off system.

Marketing Strategy
As a starting company with limited resources, and huge start-up costs, our company cannot afford to use conventional marketing strategies that other established dealers can afford. That is why we will implement free and low cost marketing strategies such as Facebook, Yelp.com, and Groupon.com. We will attempt to get our name and vehicle pickup and drop-off service using Facebook and even youtube.com too. Word of mouth advertisement will also be our best friend, because it really

is the best form of advertising. Our own website will also help us to market our company. When people search the web for a reliable service station, we will make sure that our company comes up at the top of the search list. Reviews from Yelp.com and other review websites will help us gain more positive feedback and interests from other possible customers. The main idea is to try and get our name out there at the lowest cost possible until we can afford more conventional methods of advertising. After our company because successful and is making an abundant amount of profit, we will turn to more conventional and more expensive forms of marketing. Our marketing strategies will include TV, Radio and internet commercials. People see and hear car dealership commercials everywhere. We need to insure that our commercial will stick out. Our commercials will focus on our location and our exclusive service of vehicle pick up and drop off. Because our dealership is a repair facility and a car dealership, a place where cars are sold, we will have ads of cars for sale in local newspapers, magazines, and TV/radio commercials. Our company will have commercials everywhere other dealerships place their ads. However what will make our ad pop out is our exclusive services.

Organization and Staffing

The online website needs to be monitored and check for daily customer request. Therefore, several additional staffing are required to successfully start the online service website. All of these positions will work within existing departments and report back the department managers.

Staffing Position #1: Online Sales Manager- This full time position will lead sales staff in identifying sale opportunities and convert them to actual sales. This person will report to Sport Luxury Imports director of sale. Staffing Position#2: Online Customer Service Representative- This part time position will identify what the customers have requested- the date, time and pickup location of their car needing service. This person will report to the Manager of Sport Luxury Imports. Staffing Position #3- IT engineers the position will monitor and maintain our website. Here are list of other positions that our company will require to run and operate our business. 1. Mechanics/ Automotive Technicians 2. Secretaries/ Customer Associates 3. Client Drivers

Schedule

The Sport Luxury Import online sales campaign is expected to take 4 months from project approval to launch of the e-commerce platform. Many of the foundations for the campaign to start are already available. The following is a high level schedule of significant milestones for this enterprise: February 1, 2014: Project kickoff meeting February 31, 2014: Complete of online site design March 1, 2014: Complete testing of the online site April 1, 2014: Complete beta testing of the online site June 1, 2014: Go live with web site launch. Upon approval of this project a detailed schedule will be created by the assigned project team to include all tasks and deliverables.

Financial Projections
I want to stress that our company will start off as a small service station. Here is a projection of the operating costs for opening up a small service station with 4 bays, an office and a 15 car size parking lot, and gas station. Measure Building Cost Staffing Costs licensing Website costs and maintenance Training of Staff Income from Service Total Year 1 -150,000 -160,000 -5000 -15,000 Year 2 -150,000 -160,000 -5000 -5,000 Year 3 -150,000 -160,000 -5000 -5,000 Year 4 -150,000 -180,000 -5000 -5,000 Year 5 -150,000 -180,000 -5000 -5000 5 Year Total -750,000 -840,000 -25,000 -35,000

-100,000 275,000

0 300,000

0 350,000

0 350,000

0 375,000

-100,000 1,650,000 -100,000

These projections are based on a local repair facility. I have expanded the costs to compensate for the ideas and size of our company. As an estimate we can see that we will bottom out at around 5

years. The overhead of operating a repair facility is relatively high, however with time; our profit margin will increase as our initial Start-up costs are eliminated.

Findings and Recommendations

Based on our financial projections and the success of HAYG Auto Repair where I achieved our numbers, our feasibility study should be a success. Repair facilities will be in high demand. The rate of drivers and cars are increasing every day. There is a market for us, we will be successful. Our estimates indicate we will be profitable at the beginning of our 6th year. Bank loans will help us to pay for our startup costs, and our revenues will pay them back. It is only a matter of time.