Doppel Autos Inc. custom car manufacturing business plan

DOPPEL Autos, INC. Business Plan

Doppel Autos Inc., is an auto manufacturing company that intends to manufacture vehicles custom-made to the preferences and desires of the consumers. The major goal of the business is to facilitate individuals to attain their dreams of possessing cars which are reasonable and that are designed to their requirements and needs. In the contemporary world, automobiles have come to be not only a basic need for everyday life but also a proclamation on the individual that is driving the car. The management team of the company will include of five executives. These will be the CEO, the financial controller, the director of engineering, the director of manufacturing, and the director of marketing. The company is situated in California for easy access to the supply chain of the company. Several locations within the state of California, such as Beverly Hills, Newport Beach, and Kern, have very highnational percentages of high income earners who have a taste for luxurious and stylistic cars made to their own design and model. The company anticipates manufacturing and selling a minimum of fifteen automobiles in the first fiscal year, and doubling this amount in the following year. It is assumed that every car sold will generate a profit of $20,000.

DOPPEL AUTOS, INC. Business PLAN

Business Description and Vision

Doppel Autos, Inc. is a company that will have the business purpose of developing and manufacturing a product line of efficient and economical specialty and custom-made automobiles. The main objective of the company will enable individuals to achieve their dreams of owning cars which are affordable and that are designed to their wishes and desires. In the present day world, automobiles have become not only a basic need for everyday life but also a proclamation on the individual that is driving the car. The distinctiveness of an individual's car is significant. In the nation, there are numerous cars which are of the same make and of the same model but are distinctive due to the custom additions made by the owner. Results from research undertaken for this kind of business indicate that the company can be able to generate an average profit of about $13,000 for every car and it can go as high as $20,000 (Lienert, 2003). The general goal of Doppel Autos is to manufacture and sell 15 cars by the end of the first financial year and thereafter double this figure as the target for the second financial year.

The Management Team

It is important to point out that the success level of Doppel Autos will be reliant on the capability of the management team to establish products that are not only economical but are also products that can be retailed to a wider market. The management team of Doppel Autos will consist of five individuals who have gained massive experience in the automobile industry and will have the responsibility of steering the business forward. The following is a chart indicating the setup of the management team:

CEO

Financial

Controller

Director Marketing

Manufacturing director

Engineering director

1. James Brown, Chief Executive Officer

Former CEO of ProHabot Automobiles, Inc. A multimillion dollar manufacturing company of specialty cars and motorbikes that was bought by Worldly Motors in the year 2005.

2. John Digel, Director of Marketing

Digel has had over a decade worth of experience in industrial marketing. He has specifically been a marketer for in the automobile industry for the past five years and has great knowledge on how to market products.

3. Steve Howard, Director of Engineering

Howard worked together with James Brown at ProHabot Automobiles. He was the main design engineer for the company for about 8 years and contributed a large part to the institution's best-selling automobiles up until today.

4. Virginia Walts, Financial Controller

Walts earned an MBA at Yale and in the past six years has worked with start-up companies. She has massive experience on ensuring financial health for a company that is starting out to ensure it does not become bankrupt.

5. Stephen Harold, Director of Manufacturing

Harold will play a big part in the company. He is a former VP of manufacturing at Alternative Auto Designs which is one of the known companies in the industrial market. He will be responsible of ensuring that the products manufactured are of great quality and also that the raw materials are cost effective.

Every member of this management team will play a vital part in the development and success of this company. The management team has confidence that the projected revenue and returns as well as the forecast market share will be realized and attained in the time period that has been projected for the company (Anti venture capital, 2015).

The Marketing Plan

Market Overview

About ten years ago, the aspect of having custom made cars was a thing that was exclusive to celebrities and extremely rich individuals. These were seen to be "rich people" activities. However, with the increase in globalization, this industry has opened up the entry of small companies into the market which are cost effective in terms of their product cost. The companies offer margin retail prices which create plenty of competition for large companies. This has made it possible for regular income earners in the United States who have over $35,000 yearly to be able to own their own specially made cars. Despite the increase in competition, the industry segment has seen an immense increase in the number of consumers. Despite the fact that there a number of competing companies in the state and also across states, Doppel Autos remains confident that it will become a major player in the industry segment. The main marketing plan of the company lies in its core technologies. Different from other companies, Doppel Autos enables a consumer to custom-design a 3-D model of the car desired. In essence, this enables the consumers to create their own car, the shape, the design, the colour and the specific additions such as rims, speakers, spoilers and even tinted windows right before they make an order (Anti venture capital, 2015).

Industry Trends

The advancement of technology has made it possible for consumers to order products online and get them manufactured and shipped. In addition, the companies are now making it possible for the consumer to make designs and specifications of the make of the car online before making an order. This has increased the level of competition not only domestically but internationally as well across the industry. This has forced companies and their management teams to analyze the cost incurred to manufacture their products. The competition level in this segment of the automobile industry has resulted in thin margin profits and not huge margin profits as earlier before. This implies that the companies have to consider their retail prices in order not to lose their clientele. In addition, the management teams of companies in the industry segment are now forced to increase their level of productivity, sustain and enhance their quality level and also decrease the costs incurred during the whole process of manufacturing. If not so, the companies stand to face losses through decrease in consumers which result in a decline in revenues generated (Anti venture capital, 2015).

Consumers

The main consumer base of Doppel Autos will largely consist of individuals ages 35 years and above and those earning a yearly income of $40,000. The company will not focus on one state but will easily accept orders across the states in the nations. Naturally, there will always be exceptions made to these statistics and kinds of consumers, but is what will make up majority of our consumers. The main information and statistics data is resultant from surveys undertaken in a number of states and also to the magazines that deal with the automobile industry. Having the consumer base extending all over the nation, it is expected that there will be a huge number of clients (Anti venture capital, 2015).

However, the company expects the majority of its clients to be from California where it will be situated. The total population of California constitutes almost 38 million people (Suburban Stats, 2015). However, only about 21% of this population will be prospective clients to the company. This is the percentage of the individuals aged 35 years and above; this number amounts to about 8 million prospective consumers. The director of marketing makes the assumption that seventy five percent of these individuals will have the financial capability to purchase products being retailed by Doppel Autos. This gives us a figure of 6 million clients. With an original base of 6 million potential clients, it is not difficult to attain the objectives of manufacturing and retailing fifteen cars in the first financial year and thereafter 30 cars in the second financial year. The company also places focus on being able to take orders and ship to anywhere in the world to increase its consumer base and the amount of revenue generated (Anti venture capital, 2015).

Competition

Doppel Autos plans on entering this market bearing in mind that there are a number of solid competitors for its clients. In particular, there are three main manufacturers that the company will intensely compete with in the state of California in the first three years:

i. X motors (CA): This is the oldest company in the industry segment. It has been in the market for over eight years now and has established a brand name for itself. X motors is well-known for having started the manufacturing of custom made cars for celebrities and A-list stars living in the state of California. It is a fairly large company that has a regional sales base. However, the downside is that X motors is not cost effective, and is therefore facing competition set by the new and fresh companies in the industry.

ii. Beastly Autoworks (CA): This company is well renowned for their rims and also for the body art that they place on the custom-made cars. The company has been in the industry for about four years now and is also one of the consumer favorites because of the exceptional designs they create on the cars. However, the company in the past year was accused of a scandal of placing fake and second hand parts in the cars which spoil immediately. The company has been forced to recall almost 10% of the 120 cars they manufactured in 2014.

iii. Composite Auto Dealers (CA): This is one of the fresh companies that have brought innovation on the industry and is a strong competitor. Composite has been in the industry for two years now and will intensely compete with Doppel Autos when established. The company is very effective in its product cost. The manufacturing cost incurred by the company is economical and therefore the prices set for the products are extremely competitive

Location Analysis

The location of the company is tipped by the management team to be one of the major contributors to the success of Doppel Autos Company. To start with, the state of California was selected to be the state where the company would be positioned due to the strategic position it would have in the supply chain of the business. To start off, California, especially the southern region, is well renowned for having high income earners who prefer custom made cars to their preferences. Locations within the state such as Beverly Hills, Newport Beach, and Kern have one of the highest percentages of high income earners who have a taste of luxurious and stylistic cars made to their own design and model (Cooperstein, 2014).

The main location of the company was selected for the following number of reasons:

1. It is centrally located with regards to the consumers and also the suppliers. The positioning of the company in relation to its supply chain was important. The company will not have to incur numerous costs to acquire the manufacturing parts.

2. The area chosen is a large 6 acre plot that is considered to be prime land. Not only will the company be able to expand its operations in the future years but it will be able to successfully place different kinds of businesses such as a car wash.

3. The lease of the land was quite affordable and worth the prime positioning it places the company in (Location Analysis).

Distribution Plan

Distribution plays a great part in the success of the company. It is imperative for the company to ensure that the end products of the company are distributed properly and that they are received in a timely manner. As earlier stated, Doppel Auto plans on distributing products not only in the state of California but domestically in the United States and internationally as well. For cars being distributed in the state of California, the company intends on distributing the products individually by driving the cars right to the address of the clients. With regards to domestic distribution, the company will use trailers to transport the vehicles to the respective consumers. Lastly, there will be the use of freight methods by shipping the cars to international consumers (Reference For Business, 2015).

Inventory Plan

Prior to the manufacturing and retailing of our products, there is great need to have inventories required to set up for the company (Reference For Business, 2015). The following table indicates the inventory plan for the first financial year:

Inventory Plan

Year 1

Shop Supplies

19,000

Utilities

4,000

Office Supplies

16,000

Computer Software

56,000

Equipment

165,000

Tools

102,000

Vehicle parts

360,000

Body shop kits

58,000

Total

780,000