Business Plan: Supply and Distribution System - Road Rush Auto Ltd

This report outlines a business plan for Road Rush Automobile Manufactures Pvt. Ltd., a proposed auto part company targeting the New Zealand market. The plan identifies the need for an authentic auto part supplier in New Zealand, leveraging the country's strong economy and customer buying power. The report details the company's mission, vision, and values, focusing on high-quality, customized auto parts for luxury car brands like Mercedes Benz, Audi, Volkswagen, and BMW. It includes a market analysis, identifying major industry trends, the target customer base, and key competitors such as Repco and Pick-a-part. The plan also covers sales and marketing strategies, product packaging and distribution, business operations, human resource skills, computing and communication systems, sub-contractors, premises, and knowledge management techniques. The primary goal is to establish a competitive advantage through innovation, technology adoption, and excellent customer service, ensuring brand recognition and profitability in the New Zealand automotive market. This document is available on Desklib, a platform offering study tools and resources for students.

Running head: SUPPLY AND DISTRIBUTION SYSTEM
Supply and Distribution System
Name of the university
Name of the student
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Executive summery
The paper intends to elaborate a new business plan for an auto part company named as Road
Rush automobile manufactures pt. Ltd... After identifying the need of an authentic auto part
supplier in the market of New Zealand, where customers’ buying power is high due to decent
economic condition, as an entrepreneur the idea of forming an auto part company came into
mind. With former work experience of a core car-manufacturing unit and skills of a
mechanical engineering degree with automotive specialization, it is feasible to establish
business within this industry. This report is a brief presentation of business plan, which has
analysed potential market, external factors, targeted customer base and market competition.
Several organisational culture has been discussed which are necessary to establish a
successful business. In the addition, to ensure brand recognition, marketing strategies have
been suggested that can be applied to gain probability and a competitive edge.

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Table of Contents
Introduction....................................................................................................................4
Overview of the proposed business................................................................................4
Mission statement.......................................................................................................5
Vision statement.........................................................................................................5
Values.........................................................................................................................5
Industry sector............................................................................................................5
Market analysis..............................................................................................................6
Major industry trends and opportunities....................................................................7
Customer base............................................................................................................7
Competitors................................................................................................................8
Opportunities..............................................................................................................8
Sales and marketing.......................................................................................................9
Branding and Marketing strategies............................................................................9
Product packaging and distribution strategy............................................................11
Business operations......................................................................................................11
Human resource and their skills...............................................................................11
Computing and communication systems and tools..................................................12
Sub-contractors and allies........................................................................................13
Premises...................................................................................................................13
Techniques of knowledge management...................................................................13
Summery and reflection...............................................................................................14

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References....................................................................................................................16

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Introduction
The purpose of this paper is to develop a new business plan based on the current
business scenarios of New Zealand. As an entrepreneur and automotive engineer, after
consulting a study of Böttcher and Müller (2015), I felt that it would be an efficient initiative
to export raw materials from Germany for manufacturing cars with low rate of carbon
emission capabilities. Moreover, according to Franco et al. (2013), this concern of low carbon
emission must be kept in mind while designing auto parts of luxury cars like Mercedes Benz,
Audi, Volkswagen, and BMW, which are based on Auckland, Wellington and New Zealand.
Moreover, my proposed business will design car parts according to customers’ requirements
as well. These customized designs of products will be of high quality and the company will
be aware to deliver it timely at logical prices.
With this initial framework of the business, this report will first analyze the market
trends, customer base, and competition (Jean, Sinkovics & Hiebaum, 2014). After that based
on the variable nature of the external factors sales and marketing strategies will be framed in
order to attain company’s mission and vision. This ideal framework is essential, as it will
help to sustain the competitive advantage in the market. Finally, report will be concluded
with a reflective approach on the proposal. Being a former employee of mechanical
department of a renowned car company, I have experience of dealing with the companies
who design car parts for the core organization. Therefore, I thought it would be great to serve
customers like Audi and BMW by inventing own auto parts’ company.
Overview of the proposed business
As mentioned before, the proposed business is going to deal with customized auto
parts of several luxury cars, the company will be presented with the name of Road rash
automobile manufactures Pvt. Limited. Company’s mission vision and values are related to

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the guideline for employees to provide better services for customers and establish
organizational excellence.
Mission statement
Road rash automobile manufactures Pvt. Limited is determined to maintain long-term
relationship with clients. Professional service providers are committed to assist in a friendly
manner to satisfy queries and solve all the issues.
Vision statement
Vision is to become one of the highest suppliers of automobile machineries at
competitive ranges. Company will take initiative to assist emerging businesses with restricted
experiences regarding more knowledge and launching of new products within this
mechanical sector.
Values
Road rush Automobiles acknowledges customers’ safety with highest priority. The
company is committed to deliver quality products at justified prices. We ensure timely
delivered items. Besides, the company will work on implementation of better technologies to
offer services that are more beneficial to clients.
Industry sector
Auto parts industry involves manufacturing and designing skills; so company have to
deal with contractors and mechanical engineers mostly. Moreover, product equipment will be
heavy and complicated. As described in AF Ragab and Arisha (2013), business operation
must be done with the help of efficient human resource and to ensure that recruitment process
as well as practice of knowledge management must be present within organization.
According to La Rocca, Ford and Snehota, (2013), automobiles require various materials,
which include Iron, plastic steel, rubber, copper, aluminum, petroleum products and many
more. Therefore, the idea is to import raw materials from Germany for the production.

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Based on expertise, Road rush wants to become global supplier to major automaker
companies of New Zealand (Frigant & Zumpe, 2014). Product range is directly connected
with machineries of luxury cars. Break lining, break pad, engine gasket, steering and
suspension, both the fuel and water pumps; various necessities can be satisfied if clients are
collaborating with such a company like Road rush. Every core car companies have to deal
with breakdown or regular servicing cases where the demand of variety of auto parts is
consistently high. In addition, as I am a specialized automotive engineer with 10 years of Job
experience in this sector, it was convenient for me to choose this division as my orientation of
business.
In case of any enquiry or to solve any parts related issue, our customer service
executives will provide both the direct and indirect in-voice assistance. As described by Setia,
Venkatesh and Joglekar (2013), efficient post purchase customer service is important for
customer retain and satisfaction purposes.
Considering the highly competitive automobile market of New Zealand, Road rush
has planned to practice continuous process of innovation, installing new technologies in order
to sustain a competitive position within industry. As per the argument presented by Kedia
(2013, July), pricing strategy would be structured maintaining the point of competitiveness in
mind. Additional services of customized products or assistance for installation will be
provided on demand at justified prices. Entire process of operations can be executed by
employing skilled and efficient human resources. A professional data management team and
IT team are essential in terms of securing customer data, which is a sign of operational
efficiency.
Market analysis
Political factors are influencing profitability of automobile industry at a huge scale.
Governments across the world is preferring low emission vehicle keeping the environmental

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sustainability in mind. The fuel price is continuously fluctuating as well as the taxes over
luxury cars and other vehicles are increasing with the progression of time. In this case, import
and export laws of both the Germany and New Zealand must be revised before planning the
business. Political changes happen in every three years in this country. Labour laws are strict
enough and companies have to pay higher tax, which reduces the chance of profit. However,
business regulations are quite liberal.
Based on the per capita income of the country, it can be stated that people are capable
of buying quality goods, luxury products easily. Both the unemployment and inflation rate is
low, which indicates towards a healthy economy. As far as the economic factors that
influence auto parts industry are concerned, if not provided with good economic conditions
this kind of industry cannot perform well. Strategically, Road rush is right as New Zealand’s
economy is strong as mentioned, where purchasing power of the customer is high.
Major industry trends and opportunities
According to the journal of Frigant and Zumpe, (2014), the size of global automotive
market was estimated almost 330 billion and it has immense potential to gain further
profitability in coming years. Luxury car manufacturers who are consistently working
towards accelerating vehicle performance and needs of customers’ changing preferences
centrally drive the market of auto parts industry. The market trend is to look for parts, which
lower carbon emission. Following this trend, if Road rush improves their technological
infrastructure, execute advanced digitalized practices in delivery, sales and operational
services. As per Fagnant and Kockelman (2015), usage of advanced technological devices
and software to design and repair parts and maintenance of various services are few important
factors on which market growth depends mostly.

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Customer base
The customers are core car manufacturing companies like BMW, Audi, Mercedes
Benz and Volkswagen originated in mainly Auckland and New Zealand. In order to serve the
requirements raw materials are needed to import from Germany. Not only the luxury vehicles
companies, but also customers’ who have specific preferences regarding their car outlook and
high definition performances are customers of Road Rush too. This organization is a paradise
for car enthusiasts who wants to modify performance or change defective parts for their cars.
Considering New Zealand’s economic condition it can be said that customers’ purchasing
power is high. Therefore, the company can expect profitability by serving their selected
customer base.
Competitors
As the buyers’ power is strong in NZ’s market, suppliers face immense competition
within the industry (Yu & Goh, 2014). In case of high profitability, as per the journal of Roh,
Hong and Min (2014), Road Rush can consider importing raw material from developing
countries to keep the production cost low. However, the company does not want to
compromise with quality. It entirely depends on buyers that what their choice will be.
Therefore, company needs effective customer relationship managers to nurture client
relationship periodically in order to compete with existing auto parts companies of New
Zealand. Major competitors are going to be existing Auto parts companies of New Zealand
like Repco and Pick-a-part.
Opportunities
Considering the technological and economic competency of the market, as argued by
Yu and Goh, (2014), it can be stated that automotive suppliers are going to achieve high
profitability over the next one decade. In this scenario, if companies look for partnerships and
collaborations, in addition more specifically follow e-commerce business model success can

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be achieved quickly. Therefore, analysing the market in detail, few specific aspects can be
found which are highly dynamic in terms of automotive sector. Association among parts
distributors or raw materials suppliers, digitalization of several channels is important as
technological influences are increasing with time and high pricing strategy coupled with
greater differentiation in product cycle. The most noted fact is to be updated with recent
specifications and features of luxury cars.
Sales and marketing
As the customers have the power to buy high quality products, positioning the auto
parts as a budget product will not appeal the customer base. It must be remembered that
company is dealing with luxury products and therefore, premium customers. Compromising
with quality will be a massive blunder. Road rush will be presenting their products as high
quality at justified prices which is high too compared to other existing brands. Our key sell
message towards the customer would be, Road rush is devoted to deliver superior quality
products, provide excellent after delivery services and technical assistance along with that
company provides customized parts on demand. Moreover, products will assure low or zero
emission after installing into the car. This initiative will ensure a competitively safe position
and an advanced step towards sustainability.
In order to build the brand image as an emerging company, the service aims to
progress the distribution of Auto parts to cater needs of car enthusiasts and core luxury
vehicles companies. Brand image depends on delivery of genuine parts, which perform
efficiently. The logo must be designed in an attractive way with the help of professional
designer. The logo is the first thing, which customers notice about a company. The motto will
be to make the logo famous by conducting extensive campaigns. A brand identity will be
established when customers will be able to recognise the brand only looking at their logo.

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Branding and Marketing strategies
 In case of emerging businesses, considering the impact of digitalization management
team needs to make sure if the company name is appearing on recent search results or
not. The trend of digital marketing will help to identify potential buyers and according
to that allocation of places, monetary resources can be invested.
 A geo-based campaign may help. Cars stopping for traffic signals at road can find
digital boards where interesting slogans can be used to promote company or attract
investors and businesspersons.
 Develop videos on YouTube as a part of promotional activities. Videos must be
related to product demonstration or installation method or how customized vehicles
are made. Occasionally, comparing own products with other competitors’ may help
customers to attain the idea of what should they buy and what they should not.
 In addition, it has been planned to distribute handbills or brochures to make the
market aware along with print and media advertisements. As per the study of Neves et
al. (2014), celebrity endorsement is a will recognised policy, yet as it is an emerging
company, it will be a high risk to engage a large sum of monetary resource for that.
 The products will be positioned as high standard and environment friendly. Although,
customers are mostly core luxury car manufacturing company payments are expected
to done on time. Yet, in the cases of customized parts, company has a plan to offer
flexible payment mode. Customers can pay with east EMI schemes or via online
banking.
 Project selection must be future oriented. Market research has to be distinct enough to
understand the trend for next one decade. Right research will help to position the
brand and ensure sustainable part of supply chain related to auto parts industry (Yu &
Goh, 2014).

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Product packaging and distribution strategy
This strategy is related to the procedure by which company is presenting the products
and services in front of their customers. This is nothing but attracting potential customer base
towards the services. Their satisfaction is the key to gain success.
According to Abdulrahman et al. (2015), the strategic plan includes smart choice of
locations where the parts are on demand. Cars based in New Zealand, Auckland and Mount
Wellington are to be served as core car manufacturing companies. In order to import raw
materials from Germany, company will allocate organisation owned vehicles, which is going
to avail air routes to proceed the operations within time.
Business operations
Our company will deliver efficient services utilizing efforts of multiple teams,
employee agreement and strategies. Teams will be segregated as different departments
according to the hierarchical needs.
Human resource and their skills
 In order to attain organizational goals it is important to recruit highly qualified and
skilled IT experts to develop, implement and supervise company’s services and
maintain channels of communication. Besides, they are responsible for holding the
company data securely from any external harm.
 Company must be well recognised among the target market. In order to ensure that as
per Cabigiosu, Zirpoli and Camuffo (2013), employing highly efficient marketing and
sales executive and managers is necessary duty of organisation. Innovative ideas will
be generated to attain utmost profitability.