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Ready. Business plan prepared by Marco Maragliano for June 28, 2007.

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Presentation on theme: "Ready. Business plan prepared by Marco Maragliano for June 28, 2007."— Presentation transcript:

1 ready

2 Business plan prepared by Marco Maragliano for June 28, 2007

3 SOURCES All data are based on the following sources: Automotive Club of Italy (ACI) PRA (Public Automotive Register) Automotive Observatory (Turin) FEDERAICPA – Federal Association Car Concessionaires UNRAE – National Union Foreign Representatives of Car Producers GIPA (International Grouping Automotive Products) Internet searches Audipress Personal contacts

4 BLOCK ONE SUMMARY We will go through: Socio-economical factors Car population and its features Car park value and his value Main characteristics of diesel park New or Second Hand? Statistics. M. Maragliano for

5 Socio-demographic changes in Italian Automotive Market – Some considerations (1) In the last 6 years motorists population increased by 6% M. Maragliano for

6 Socio-demographic changes in Italian Automotive Market – Some considerations (2) This gain is due only to the entry of “new” women at the wheel 20002006 Male59,2%57,0% - 76.803 Female48,8%43,0%+1.284.332 Total100% M. Maragliano for

7 Socio-demographic changes in Italian Automotive Market – Some considerations (3) Total Drivers Age20002006 39,5% to 33,7% 18-24 years14,2 %10,1% 25-34 years25,3 %23,6% 35-49 years28,7 %33,0% 60,5% to 66,3% 50-64 years22,0 %22,9% > 64 years9,8%10,4% Total100% Average age41,3 years43,0 years The range of the youngest motorists progressively decreased.The entry of new licensed 18-year-old (or a little older) youths has been more limited than the new entries in other age ranges M. Maragliano for

8 Some considerations (4) ProfessionDriver’s Universe Farmer…………………………………………….. Enterpreneur, Professional man, Manager……. Artisan, Tradesman, Indipendent………………. Salesman, White Collar…………………………. Employee, teacher……………………………….. Worker, Blue Collar……………………………… 0,7% 7,7% 7,1% 3,1% 21,8% 21,0% Active 61,4% Pensioner…………………………………………. Housewife…………………………………………. Student……………………………………………. Unemployed………………………………………. Temporary non employed……………………….. 16,6% 13,2% 6,6% 1,3% 1,0% Non Active 38,6% M. Maragliano for

9 Some considerations (5) The percentage of the actives considerably increased The average income of the motorist households increased (+14,6 %) The percentage of Students and Housewives decreased Drivers Profession20002006 Total actives54,6%61,4% Total non-Active45,4%38,6% Total100% Non-Active Distribution Pensioner16,2%16,5% Housewife14,0%12,9% Student9,7%6,8% Unemployed, non Employed5,5%2,4% Declared annual average income19.307 €22.131€ M. Maragliano for

10 Car population and its features (1) In 6 years a gain of 3,4 million cars, equivalent to 12,9 % M. Maragliano for

11 Car population and its features (2) The highest increase has been recorded in the South and particularly in the Islands, both in absolute and percentage terms Population by Geographical Area North- West North-EastCentreSouthIslands 20007.453.896 5.372.0985.495.594 5.566.164 2.602.248 20067.528.444 +74.548 6.104.760 +732.662 5.979.475 +483.881 6.611.591 +1.045.427 3.684.496 +1.082.248 M. Maragliano for

12 Car population and its features (3) In comparison with 2000, the Population has got older (0,4 years more) the part of population older than 10 years has become more substantial %N° of Cars Total100%24.490.000 Year 2000 Car Age 6,94 Age Average 0 – 2 years16,9%5.063.202 3 – 4 years14,5%4.334.007 5 – 6 years15,1%4.522.187 7 – 10 years26,8%8.003.000 > 10 years26,7%7.986.370 Total100%29.908.788 Year 2006 7,34 M. Maragliano for

13 Car population and its features (4) In the last 12 months the annual mileage seems to be stabilized M. Maragliano for

14 Car park value in € by Age Total Car Park Value: 221 billions € Average: 7.254 € M. Maragliano for

15 Car park value in € by Geographical Area Total Car Park Value: 221 billions € Average: 7.254 € M. Maragliano for

16 Car Park Value – by Brand M. Maragliano for

17 Car population and its features (5) SexProfessionOwnershipDriver’s Age Male FemaleActive NonActivePersonal Company18-24 25-34 35-49 50-64 >65 Average 12.634 The “Road Runners” are: men, middle-age, active. Company cars are driven almost 8.000 km more than the average M. Maragliano for

18 Car population and its features (6) 20002006 Total Population26.490.00029.908.766 Distribution by brand origin Above all the share of German and Asiatic cars is growing 48,1%Italian38,4% 14,7%French15,5% 25,6%German29,1% 6,1%Asiatic11,3% 5,5%Other5,7% 100% M. Maragliano for

19 Car population and its features (7) The population motorization has considerably changed In 2000 the Diesel Population was made up of 2.860.920 Cars, equivalent to 12,1% In 2006 the Diesel Population is made up of 8.192.014 Cars, equivalent to 27,4% M. Maragliano for

20 Main characteristics of Diesel Car Park (1) Average: 5,4 years Lower age average compared to gasoline M. Maragliano for

21 Main characteristics of Diesel Car Park (2) Annual kilometer average: 17.337 Km Average km. by car : 75.327 Km M. Maragliano for

22 Main characteristics of Diesel Car Park (3) M. Maragliano for

23 Main characteristics of Car Park (4) Park by Geographical area North WNorth ECentreSouthIslands Age average 6,6 years 7,2 years7,7 years8,6 years7,8 years Gasoline Average age 68,0% 7,4 years 71,0% 8,1 years 71,1% 8,8 years 63,9% 9,9 years 67,2% 9,0 years Diesel Average age 32,0% 4,9 years 29,0% 5,2 years 28,9% 5,0 years 36,1% 6,3 years 32,8% 5,4 years M. Maragliano for

24 Main characteristics of Diesel Car Park (5) North WNorth ECentreSouthIslands Diesel cars of North-Centre are younger and makes more Km. M. Maragliano for Gasoline Diesel

25 Second hand car market in Europe Italian Market far below Germany and UK. Room enough to grow? M. Maragliano for

26 Second hand cars in Europe 2006 In Germany for every new car there are almost two second hand sold. In UK the highest % is due mainly of new Company cars ownership. M. Maragliano for

27 Car import by age M. Maragliano for Almost 60% of imported cars are less than one year old

28 Car Import by Brand (Top 5) M. Maragliano for

29 Second Hand vs New Cars. Sales Distribution New Second Hand M. Maragliano for Second hand car sales substantially increase in Southern Italy

30 Second Hand Sales Distribution Second Hand North WNorth ECentreSouthIslands Gasoline26,4%29,8%36,3%45,5%49,1% Diesel32,8%28,6%28,1%45,0%34,5% M. Maragliano for New (for comparaison) Gasoline73,6%70,2%63,7%54,5%50,9% Diesel67,2%71,4%71,9%55,0%65,5%

31 New or Second Hand car? % M. Maragliano for

32 End Block One

33 ready – Block Two M. Maragliano for

34 BLOCK TWO SUMMARY We will go through: Short Gantt Short Business Plan (Hypothesis, Figures and Projections)

35 Weeks123456789101112131415 AConsultant Company BSet up Automarketing I. C Italian website DFirst office location EOffice furnitures FLocation contract GSearch of personnel HChoice of Advt Media ISelection of personnel JPersonnel hiring KStart of Advertising LPersonnel availability M.Operation start M. Maragliano for SHORT GANTT Remark: before start Gantt operations, a training of the Manager is necessary.

36 AThe quickest and safe way is to select a consultant company linked with Automarketing (Bayer & Bayer?) B Ownership must be of AUTOMARKETING Gmbh or AUTOMARKETING S.L. Develops. Notary act in Italy is necessary, as a cash deposit of minimum 10.000€. There is also a temporary option: to set up a Liaison Office. In this case Italian initial staff will act as liaison to AUTOMARKETING Fr. but it will be necessary to review almost entire Business Plan. C It must be done in strict cooperation with AUTOMARKETING webmaster. Task of the Manager. D The choice of the location will have a remarkable impact on office operational expenses, therefore affecting the economical section of the Business Plan. Joint decision of GM and Italian Manager ETime include selection of furnitures, purchase, delivery. Task of the Manager. F For location contract it will be necessary the presence of AUTOMARKETING General Manager or a proxi to Italian Manager. GAdvertising on newspaper necessary. PR activity preparation. HAnalysis of various media, internet indexing, final Advertising campaign plan. Task of the Manager. IConsidering 6 interviews a day, minimum one week for selection is necessary. Task of the Manager. JTime necessary for legal practices. Task of Consultant Company. K Advertising will start same time of the personnel hiring in order to get as soon as possible potential customers. Enquiries will be handled temporarily by the Manager. Start of PR activity. LTime of physical availability of personnel MAs soon as personnel will be available telemarketing can start focused on target categories. M. Maragliano for

37 SHORT BUSINESS PLAN M. Maragliano for

38 The structure 1 manager 3 salesmen (1 senior and 2 juniors) 1 administrative 1 secretary Salaries has been roughly calculated (to be reviewed by the Consultant) and kept at low level initially, to have the possibility of revision in case of good performances of the employees. Salesmen salary should include a small commission. The hypothesis is to hire as priority one skilled salesman able to train the other two (younger). As already advanced in Gantt, cost of office may vary substantially in relation to the location. The Revenues are based on a 10% commission on car sales. M. Maragliano for

39 ADVERTISING Four daily newspapers has been considered as one way of advertising: one issue by week for each of them – in the selected day of largest circulation – should make at medium term a solid ground. To build up the awareness of AUTOMARKETING it could be necessary for one year an advertisement on the one of the largest automotive monthly magazine like “Quattroruote ” M. Maragliano for

40 Redemption Has been calculated on the total of readers and has been considered around 1%. We assume that this 1% may represent the total of the potential customers. Essential for a good redemption is the message we will transfer to the readers: our project is innovative for the Italian market and therefore layout and bodycopy must draw reader’s attention to induce them to make a phone call or send an e-mail. M. Maragliano for

41 Catches It’s the percentage ( 15%) of redemption, means the real prospective customers that show some interest and that may sign the preliminary contract. M. Maragliano for

42 Risk Margin (1/5) To be on the safe side, we used the highest possible: it means that Revenues (total people really interested on purchasing the car) has been divided by 5. M. Maragliano for

43 Considerations on Business Plan This Business Plan doesn’t consider positive factors like: Multiple readings for newspapers and magazine Mouth to mouth communication Awareness increase – PR results Sales push strategy like telemarketing and use of some databases – financial promoters, lawyers, private enterpreneurs - already in my hands. M. Maragliano for

44 I supposed to increase of a 20% the monthly car selling like a mathematic progression : 10 cars sold during second month, 12 cars sold the third, 14.4 cars the fourth… First year M. Maragliano for

45 Fixed cost per month. € Office rental2500 electricity,water200 telephone, internet500 computer's amortization375 furniture amortization208 salesman1800 Salesman2800 Salesman3800 Total6183 SalariesGross salaries+taxGross+15th Manager200039224902 Administrative180032144018 Secretary120021432679 Total11598 Grand Total17781 M. Maragliano for

46 Advertising costs Month4 daily newspapersQuattroruoteOthersTotal Jan8.00016.000024.000 Feb8.00016.0002.00026.000 Mar8.00016.0003.00027.000 Apr8.00016.0004.00028.000 May8.00016.0004.00028.000 Jun8.00016.0006.00030.000 Jul8.00016.0002.00026.000 Aug8.00000 Sep8.00016.0004.00028.000 Oct8.00016.0002.00026.000 Nov8.00016.0002.00026.000 Dec8.00016.0007.00031.000 Total96.000176.00035.000308.000 Average cost 25.667 month M. Maragliano for

47 Variable costs Month Advtg Average adv. Salesmen%+ 3000 travelling costs Cars sold x month Ave profit margin Revenues 10%10% salesmen Jan24.000270000,002.5000,00 Feb26.0003150010,002.50025.000,002.500,00 Mar28.0003400012,002.50030.000,003.000,00 Apr28.0003450014,002.50035.000,003.500,00 May28.0003532017,282.50043.200,004.320,00 Jun28.0003618320,732.50051.825,005.182,50 Jul28.0003707024,282.50060.700,006.070,00 Aug8.00080000,002.5000,00 Sep26.0003645029,802.50074.500,007.450,00 Oct28.0003995035,802.50089.500,008.950,00 Nov28.0004172542,902.500107.250,0010.725,00 Dec28.0004387551,502.500128.750,0012.875,00 308.000405573258645.725,0064.572,50 Monthly256673379822,00 ave. cost per salesmen 5.381,00 Average variable cost: 34.048 M. Maragliano for

48 Monthly Average Grand Total Advertising average expenses per month25.667 Average expenses for travelling3.000 Average expenses per salesmen5.381 Total variable costs34.048 Fixed costs17.781 Grand Total51.829 M. Maragliano for

49 Total costs 1st year FixedVariableTotal Jan17.78127.00044.781 Feb17.78131.50049.281 Mar17.78134.00051.781 Apr17.78134.50052.281 May17.78135.32053.101 Jun17.78136.18353.964 Jul17.78137.07054.851 Aug17.7818.00025.781 Sep17.78136.45054.231 Oct17.78139.95057.731 Nov17.78141.72559.506 Dec17.78143.87561.656 Total213.372405.573 618.945 M. Maragliano for

50 Revenues M. Maragliano for Average prices for 1 car 25.000 € Hypotetical average profit margin 2.500 € Advertising Redemption 1% Average Break Even Point 20,7 cars x month

51 Redemption and catches (1) La Stampa1.457.000 Il giornale709.000 Il Corriere della Sera2.577.000 Il Secolo XIX527.000Redemption 1% Total readers5.270.00052.700 Quattroruote4.830.00048.300 Total redemption: 101.000 M. Maragliano for

52 Penetration rate % M. Maragliano for We consider the adv campaign as a constant not including multiple readers and awareness increase. The following nubers represents the potential readers coming from a constant situation. Hypothesis: to get 20% average of total potential customers (total redemption) in 5 years YearPenetration rate % 18 217 320 425 530 Total100

53 Penetration rate % M. Maragliano for

54 Potential active prospects M. Maragliano for Numbers deriving from penetration rate per year and redemption means : people that are conscious of the existance of the brand- awareness- and do something to get in touch with us YearPenetration rateNumbers 18%8.080 217%17.170 320%20.200 425%25.250 530%30.300 Total redemption 101.000

55 Potential active prospects M. Maragliano for

56 Catches M. Maragliano for Catches : real purchasing people - % based on Numbers YearCatches 11.212 22.576 33.030 43.788 54.545 Total15.150

57 Catches M. Maragliano for

58 Risk margin M. Maragliano for Risk Margin : I decided to divide for 5 times the catches 3.030 Total in 5 years 3.030 YearYear catches / 5Av. Cars per month 1242,420,16 2515,142,9 360650,5 4757,563,08 590975,75

59 Cars to be sold in 5 years M. Maragliano for

60 Final figures 1st Year Hypotetical monthly target selling rate increase of 20% every month- mathematical progression – Number of cars (242)Revenues based on profit margin (2.500 € ) Total Costs Jan 0 -44781 Febr 10 25.00049281 Mar 12 30.00051781 Apr 14 35.00052281 May 17,28 43.20053101 Jun 20,73 51.82553964 Jul 24,28 60.70054851 Ago 0 -25781 Sept 29,8 74.50054231 Oct 35,8 89.50057731 Nov 42,9 107.25059506 Dec51,5 128.75061656 258,29645.725618.949 M. Maragliano for

61 Summarized figures (10% profit margin) ROI1,043 Ave. Break even point20,13 cars M. Maragliano for

62 Summarized figures (12,5% profit margin) ROI1,271 Ave. Break even point17,02 cars M. Maragliano for

63 Summarized figures (15% profit margin) ROI1,487 Ave. Break even point14,54 cars M. Maragliano for

64 Future YearsImportAutomarketingPenetration on imported cars 2003133.6410% 2004115.5180% 2005100.3020% 2006101.9640% 200785.2952420,28% 200874.2705150,69% 200963.2456060,96% 201052.2207581,45% 201141.1969092,21% Average imported cars 1 year old 2003 – 2006 112.856 Average imported cars 1 year old 2007 – 20011 63.245 Average of averages 88.050 M. Maragliano for

65 FUTURE : Market share 2007-2011 Average of averages 88.050 Average Cars sold by 3 structures in 5 years 1.818 M. Maragliano for

66 Future M. Maragliano for

67 End: Thanks for your time and attention M. Maragliano for

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