Entrepreneurship - Fix on Wheels - Mobile Mechanics on the Go

...

At this stage, all the founders are full-time students of IoBM. The founders plan to start this venture using personal finance and will invest an equal amount - Rs. 50,000 each. Bootstrapping will be essential in the initial stage. The service truck will be taken on lease. Mechanics will be hired on a contractual basis and tools will be purchased after scrutiny. This venture has six founders who will share in profits and losses equally; with each partner taking on different roles as specified in the partners agreement.

The auto mechanics industry has grown steadily over five years in Pakistan. Pakistan’s economy is steadily improving, and auto sales in 2015 are on a rise. As a result, the market for maintenance and repair is growing, due to increased vehicles in the market.

The threat of new entrants is relatively high for the car service industry as there are many existing service players in the market. However, our business model is unique and offers a chance to carve out its own niche. There are many suppliers, hence the bargaining power of suppliers is low and industry attractiveness is high. With respect to our business model, we are offering unique services at customer’s convenience. This model suggests that the bargaining power of buyers will be moderately low as they will get the service whenever they need it and sometimes it can be in an emergency situation for example running late for work or university. Hence, industry attractiveness is high. Some people are very brand conscious and very careful with who services their car and provide other necessary services to their car, so threat from rivals is high.

The automobile mechanic market is conservative, and is an ideal opportunity for Fix on Wheel to enter the market with an innovative business model. The industry trend is favorable as the environmental trends and business trend show tremendous potential for a new innovative player in the market.

Our target audience will be all those who own vehicles. As we are a start-up business, we will initially be targeting specific areas, namely, Clifton, Defence and PECHS, before rolling out the services to other areas and other cities. It is the automobile repair/maintenance segment and aims to have “something for all”.

The founders have researched about the competition and buying patterns. Secondary data Research, Gum Shoe Research and Buyer’s Intention Survey have been used for the purpose. Through research we found that a primary concern is with building a relationship of trust with service provider. An automotive repair company that can anticipate, meet, and even exceed customer's needs can build a defensible position within the market place and acquire market share at the expense of rivals. Our main competitors are the local mechanics or petrol pumps that are delivering comparable services.

A marketing plan has been formulated for Fix on Wheels. This plan encompasses digital and traditional forms of marketing that are appropriate and cost effective. The marketing approaches listed in the plan are aimed at creating service awareness.

Our plan is to serve 10 orders per day in the first year, 25 orders per day in the second year and reach 50 orders per day in the third year. The rough yearly forecast is given below.

Year 1

Year 2

Year 3

Sales

1,800,000

4,500,000

7,500,000

Net Profit before Tax

(804,000)

(332,600)

313,000

Investment

2000,000

-

-

Business Description

Fix on Wheels plans to offer a comprehensive, top quality roadside assistance plan for personal and commercial vehicles. Whether it is your personal vehicle or a fleet vehicle, you want to be able to have yourself, your family and employees covered for any roadside issue.

Our service plans are designed to provide rescue and support services when a vehicle becomes disabled or stranded. We plan to provide immediate assistance through state-of-the-art software that will allow us to find your location using your cell phone, and dispatch our people while we’re still on the phone with you. We will even send a text message to confirm the estimated arrival time. Our commercial roadside service will cover vehicles that are large and small, including rental cars and service vehicles.

Our coré value is to focus on offering the best customer service standards in this new industry. Our model has been to keep things simple by offering comprehensive roadside service plans for consumers with individual plans, and commercial plans for businesses.

We plan to offer the following services:

- Towing

- Lockout and lost key services

- Flat tire services

- Oil changes

- Fuel delibera

- Dead battery services

We are committed to keeping you safe during a roadside issue, providing 24/7 assistance. Whether your car needs routine service, oil change or has stopped running due to a non-accident related incident, you can get the right help as quickly as possible.

Company History

Pakistan’s economy is steadily improving, attributable to lower oil prices, higher remittances and more consumers spending. Auto sales in 2015 are expected to hit 165,000 units. Fix on Wheels is in the start-up stage. The idea of this business came about when the founders noticed a gap in the market that could be filled.

As students of IoBM, we notice that students sometimes have vehicle problems due to which they are not able to reach university and sometimes are stranded on the way. This led us to the idea of ‘Fix On Wheels’ as everyone wants peace of mind while they’re on and off the road. Sometimes one can just not get their car to a shop and in some cases it's just not convenient. We plan to cater to our customers by allowing them to enjoy the comfort, ease, and