This is a presentation I and my team members prepared for a case study competition during my time at TISS. The objective was to create a marketing strategy for a car wash startup that used steam technology instead of foam and water. Hope it is useful for you all!

1. Car Wash Start-up – Marketing Strategy
Gautam Jayasurya, Avinav Prakash,
Akshay Ravindran
TISS 2017-19

2. Executive Summary & Methodology
Indian Market
Landscape
Competitor
Analysis
SWOT Analysis
Market &
Customer
Segmentation
Business
Model
Impact
Assessment
Methodology
• Purpose To craft an exquisite customer experience that is
focussed on offering sustainable solutions to automotive
owners in Indian sub-continent.
• Vision To become the benchmark for solving consumer
problems with best in class customer experience which is
sustainable
• Resources The valuable, rare, inimitable and non-
substitutable resources would be the cutting edge steam
based technology, superior trained staff,
• Strengths Deep understanding of the industry and proven
track record in setting up and operationalising centre’ of
excellence in America
• Weakness India’s varied multicultural, multilinguistic
society would require leadership with clear
understanding of local markets
• Opportunities India’s relatively untapped and growing
market which will quintuple in the next decade
• Threats Changing consumer habits by educating
consumers to new ways of automotive care
Summary

3. Car Washing – Indian Landscape
Consumer Painpoints
• Minimal technical
knowledge of auto
washing
• Use of wrong
materials for washing.
E.g. Using the same
dirty rag for all parts
of the vehicle.
• Use of power water
cable with no scientific
technique.
• Wastage of time
waiting at the car
wash centre.
• Traffic woes in
reaching the washing
station.
Consumer Perception
• Car cleaning was being
treated as an ancillary
job
• Increasing sense of
pride in car as an
asset.
• Urban centres are
feeling the need for
quick and efficient
service w.r.t to
washing
• Increasing percentage
of luxury car owners
feel the need for
upmarket services
Services Offered
• Refreshed Cleaners x 3
• Exterior & Interior
Steam Cleaning
• Upholstery Steam
Cleaning
• Dashboard Polish
• AC Vents Sanitizing
with Steam
• Interior & Trunk
Vacuuming
• Foot Mat and Carpet
Cleaning
• Tyre Dressing & Glass
Cleaning
• Cabin Sanitizing &
Deodorizing
• Exterior Polishing
• Engine Bay Cleaning
• Foot Mats and Wet
Wipes
Demand for offering?
53,700 new vehicles were being registered in
India every day in 2016. 10%
68% of car owners never visit washing outlets
in their entire lifetime - stationed units
manage to tap only 32% of car owners.
Potential for door step service.

4. Car Washing Market – Competitor Analysis
Companies Business Mix Price Point Competitive Advantage
Refreshed • Deep cleaning
• Steam full car detailing service
• Doorstep Services & Service Stations
• Full - Rs. 3000
Express - Rs. 999
• Steam cleaning technology
• Technicians who have
undergone 60 – hour training
program
Speed Car Wash • Platinum/Gold/Silver Packages
• Intensive internal cleaning
• Wax rubbing and buffing
• Teflon coating
• Value Added Services - Servicing of engine, AC, leather seat,
wheel, glass and head lights.
• Platinum/Gold/Silver
Packages – 2200/800/600
• Intensive internal cleaning
- 1800
• Wax rubbing and buffing -
2200
• Teflon coating - 3500
• Car cleaning product sales –
Foam, Tonic, Rug, Glove,
Ointment
• Online purchase option
• Car care blog
• Value added services.
• Customer referral option with
loyalty discounts.
• Cross marketing - - Ceramic car
coating, Car wrappes
Express Car Wash • Best car dry cleaning – Express I, II, III plans.
• Ceramic Coating
• Teflon Coating
• Value Added Services - Glass Treatment, Engine Coating, Ac
Treatment
NA • high pressure cleaning
machines, spray extraction
machines, high powered
vacuum cleaners, steam
cleaners
• Value Cards EXPPRESS CAR
WASH
3m car care • Waterless Car Wash
• UV Protection Wax Treatment
NA • Water base chemical for
washing cars
• High gloss and removes stain
and dirt.

5. SWOT Analysis - Sparkle & Shine
Strengths Weakness
Opportunities
• Urban pollution and dusty
climate in Indian cities.
• Sense of pride in car as an
asset.
• Unregulated traditional car
wash space.
• Inventory does not commonly
spoil
• Potential to offer allied services.
• Need for power and water in
high quantities.
Threats
• Mosquito-born diseases
• Lack of awareness about clean
car culture
• Educating consumers
Key Partners
• Large Building Managers
• Authorised car dealerships
• Service centres
Key Resources
• Selecting real estate to set up
the establishment
• Machinery for use – Steam
pumps/Power pump.
• Products used for cleaning.

6. •Butterflies
• Taxi owners who prefer
cost over quality
True Friends
• Auto aficionados
• Luxury car owners
• Senior citizens above 65
unable to wash
themselves
• Occupants of
apartments
Strangers
• 40-60 working
professionals with cars
that are older than 5
years.
Barnacles
• Car owners who not
employed, with plenty
of free time.
Strategy Recommendation I - Market & Customer Segmentation
Target Market Customer Groups
Market Segment Rationale Growth Rate
Luxury Car Segment
(First Timers & Pre-
Owned) – Tier I & II.
Choice of car is
representative of
personal brand, hence
incentive to keep it
clean.
Luxury SUV – 50%
Luxury Sedan – 30%
Taxi Cars - – Tier I & II. Customer satisfaction
is linked to cleanliness
inside the car.
13.7%
Marketing Channels
• Using mass-market/mass-discount (MMMD) promotion tool such as Groupon to
build a mailing list.
• Special monthly subscription offers for taxi owners.
• Use of swach bharat abhiyan as a social marketing channel with radio as a medium
Lead Generation
• Service giveaways for successful referrals.
• Tie-ups with luxury car showrooms and vehicle detailing centres like Carzspa to
create bundled packages on sale.
Retention Channels
• Creation of an unlimited wash subscription scheme.
• Automatic reminders to existing customers.
High
Loyalty
Low
Loyalty
Low profitability
High profitability

7. Strategy Recommendation II - Business Model
Revenue Channels
•Doorstep services -
Express & Full
•Premium membership
subscription fee.
•Super fast serving
option at a premium
price.
•Royalties from
franchisees
Competitive Advantage
(Additional Services)
•Use of high-pressure
steam machines
manufactured in South
Korea reducing the
waster usage to 2L per
car.
•Establish car wash near
centres of leisure where
customers can spend
their waiting time.
•Uber-modelled app
platform that shows
waiting time and online
reservations at service
centres.
•Setting up 100% water
recycling facility .
Costs
•Fixed Costs
•Land/Lease Costs
•Can save up to 95%
water costs per wash
through reduced
consumption and
recycling.
•Staffing Costs
•Variable Costs
•Marketing Costs
Profitability (Factors
fluctuations in revenue )
• Competitive Pricing - Not
to focus on price as the
differentiating factor.
• Location - Finding a
location closer to
business and shopping
outlets.
Growth Prospects
•Franchise model
expansion
•Promoting app-based
service booking up to 30
days to avoid waiting
lines.
•Hiring an e-comm and
digital agency to execute
digital marketing strategy
such as HOWL.
Business
Registration
MSME Udyog
Aadhaar
online
registration
Inspect & buy
the land
Trade License
from local
Municipal
authority
Pollution
Control Board
for waste
disposal
tax liabilities
and yearly
compliance
liabilities
Setting up of
staffing and
machinery

8. Impact Assessment –Triple Bottom Line
Social
• Promoting the goal of swach bharat
abhiyan.
• Employment generation and skilling
of/for youth.
Environmental
• Every car washed through steam
technology will save 30L of water.
• Increase resource utilisation for longer
periods by better maintenance of
vehicles
Financial
• Projected Operating margin of 220%
• Strong revenue model
• No monthly rentals for a door step
model.
Revenue Per Franchise/Monthly
Cars Ticket Price Total
Weekdays – Service Centre (Express) 60 1000 60,000
Weekends – Service Centre (Express) 30 1000 30,000
Weekdays – Doorstep Services (Full) 60 3000 1,80,000
Weekdays – Doorstep Services (Full) 30 3000 90,000
180 3,60,000
Monthly 14,40,000
Profit Rs. 9,90,000
Revenue Per Franchise/Monthly
Quantity Cost/Unit Total
Water(180
cards)
360L Rs.240/KL Rs. 2,07,360
Power 30,600 units Rs.5.85 per unit Rs. 1,79,010
Labour 4 15,000 Rs. 60,000
Total Rs. 4,50,000