5. Qina Wheels and Tyres Business Model 5.1. Value Proposition
Qina Wheels and Tyres Company unlike other companies intends putting emphasis on the benefits of a safe driving experience and road accident free world as a means for value proposition. The company plans to achieve safe driving experience to customers by hiring specialists on wheel alignment and balancing, a service that will extend beyond the premises of the company. The shop assistants as a job requirement need to have acquired at least a certificate in good customer care and customer service so that the customer is always treated in the friendliest manner. Customers will receive calls and or text enquiring about their driving experience after having visited the company premises for either a wheel alignment or balancing service. Invitations for free return jobs at the company expenses will be sent to customers in cases where new tyres have been faulty or the service rendered is unsatisfactory to the customers.
5.2. Key Activities
Qina Wheels and Tyre Services Company’s success depends on the following key activities:
• Provide quality wheel alignment and balancing services to customers
• Timeously provide wheel and tyre repairs service
• Selling of brand new tyres and second hand tyres
• Recruitment and retention of the best specialists in wheel alignment and balancing
• Recruiting and training of sales personnel with good customer service & customer care qualities
• Create and maintain good relationship with our suppliers
• Establish a friendly business environment through maintenance of a happy staff and
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loyal customers
• Engage in corporate social responsibility activities in a form of reach out programs to the needy, the vulnerable and disabled
• In collaboration with key partners; conduct publicity and marketing campaigns aimed at raising awareness on the benefits of a safety driving experience and free accident roads
5.3. Key Resources
Qina Wheels and Tyres Services Company being in an industry providing homogeneous products and services needs to invest in the following key resources in order to maintain the competitive advantage over its already established rivals:
• Specialists in wheel alignment and balancing: The first and foremost is the ‘talents’
needed to execute the services and securing day to day wheel and tyre sales deals. The company can acquire the best machines from the best suppliers in the world but without the right person equipped and skilled to operate it, then the business is as good as a non-starter. One reliable guy alone can do the wheel alignment for both light and heavy-duty cars whilst maybe two will be manning the wheel balancing section to meet the customers’ day to day demands.
• Wheel alignment and balancing equipment: China has emerged with the latest but cheapest and reliable wheel balancing and alignment machines. Most of the established companies have opted to buy from China in trying to optimize economies of scale and in trying to maintain the competitive advantage over possible competitors.
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• Website and Social Media: Communication between the company and the customers is key. The marketing strategies mentioned earlier on would never succeed without the website and social media since this is the most efficient and cheapest way to reach out to the customers be it in terms of promotions, sales, awareness and offers that the company might have in store.
• The business site: The kind of services that the company provides are tangible and requires a tangible workshop for the operations. This is the headquarters where the main business is, and will boast of technologically advanced 3D wheel alignment, wheel balancing and tyre repairs machines positioned on a clean safe environment. On the other side of the building will be the warehouse where the tyres will be stored before they are sold or displayed on the sales section.
• Free Wi-Fi: To have competitive advantage over our competitors, the small but impactful tokens of appreciation to our customers like the provision of free Wi-Fi at the company premises is vital. Whilst customers will be waiting for their cars in service, there would be pleased to connect with the outside world freely and effectively.
• Friendly Shop Assistants: providing a homogeneous service and coping with the demanding customers in this industry requires that the company recruits and retains the most friendlies sales persons who will not only be taken as staff but as ‘partners’ to the business, people who will be ambassadors’ to the brand and image of the company.
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5.4. Customer Segments
As a means to raise awareness on road safety and safe driving experience, Qina Wheels and Tyres as highlighted previously intends reaching out to the middle-high income earners of the urban population (Mbabane and Manzini corridor), targeting motorist who are either civil servants and private sector employees to try prevent road accidents and deaths by offering best quality wheels and tyre services at affordable prices. Below are the customer segments:
• Civil Servants and Private Sector employees who are medium-high income earners who will have an option to pay on three-month credit terms on full tyre change
• Private Companies, Parastatals, and Government Departments who understands the benefits of good wheels and tyres on the roads and approached through contracts
• Retirees and or Pensioners who have had the opportunity to own cars and understands the benefits of safe driving wheels and tyres.
The introduction of private companies, parastatals and government departments into the revenue stream of the company through tendering and contracting is a long-term plan and once its established, it will ensure continuous and stable profits. A stable revenue stream in the future will guarantee company growth and an opportunity that the company extends business to other towns of the country, soft targets being the ones that have not yet been exploited.
5.5. Customer Relationship
As mentioned earlier that the services and products offered by Qina Wheels and Tyres Company are homogeneous, the company aims to differentiate itself from the rest by offering quality services that extend beyond the company premises and takes care of the customer before and
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after the transactions are made. The company will achieve that by providing short term finance through the three-month payment option on full tyre change by civil servants and credible private sector staff and customers at large. In the process, the company also intends providing assistance to either pick or drop customers at their workstations after and before the services are rendered. This will be done to avoid customers walking back to their workstations after dropping their cars at the company premises and walking back to the company to collect their cars after the services. Also, the company plans to celebrate family days with customers through happy birthday wishes, to all, Xmas wishes, and Seasons greetings to every one of them. Loyal customers will be treated to free lunch on the company premises during their birthdays celebrations. One shop assistant will be hired to solely focus on addressing customers’ queries, complaints and questions on the website, social media and or by customers who have come to the premises physically.
5.6. Channels
Over and above the physical collection of details for every customer that have had dealings with the company, Qina Wheels and Tyres also intends opening a website that will enable customers to open user accounts that will have all the fields making it easy for the company to reach out to the customers through email and social media (WhatsApp or Facebook). Direct calls to customers will be made in cases where the company needs to make service appointments, confirm appointments and orders and communicating promotions that the company might have. The company intends utilizing suggestion boxes, customer survey pads in an endeavor to getting feedback from customers on the experiences that they have had during their visits to Qina Wheels and Tyre Services Company and as a gesture to customers that the company cares.
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“We promote safe driving and accident free roads” will be our slogan on our banners, bill boards and flags as we join hands with our key partners on the road safety campaigns intended to raise awareness to all customers about the benefits of having proper wheels and tyres on all motorists’
cars. The company therefore aims to collaborate with the following key partners to add credibility to the services and products offered and thus adding value to the company brand and image:
• Motor Vehicle Accident Fund (MVA): In order to establish loyal customers through adding value to our brand and image, MVA plays a key role in giving us a platform to easily reach out to our valued customers since it has been gathered that they do sponsor government’s road safety campaigns. Considering the fact that MVA is a well-known government parastatal dealing with processing claims for motorists and passengers who have unfortunately been involved in car accident presents an opportunity for us to market our brand easily through the road safety campaigns. This will incite recognition from our customers and public at large as we will be perceived not only as a profit-making entity but as a socially responsible company that cares about the citizens well-being.
• The Ministry of Public Works and Transport (MoPWT): A well-known government department boasting of Road Safety Inspectors who are hired to make sure that the roads are safe by making sure that they are scrapping off the roads all cars that are not roadworthy. All road safety campaigns and transport issues need the involvement of the ministry before they can be authorized. Partnering with MoPWT during the morning drive roadblocks and issuing brochures to all motorist will put emphasis on good wheels and tyres and services, giving motorist the idea that their first stop for such services is
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Qina Wheels and Tyres Services Company where the best quality service and treatment is acquired.
• Swaziland Royal Insurance Company: A key player and partner in the industry considering that motorist insure most cars with them mostly to cover them against accidents on the roads as well as theft. It is therefore imperative that we establish and maintain a good relationship with SRIC and collaborate with them during road safety shows and road safety campaigns and also to make sure that the company uses SRIC agents in the distribution of the company brand to customers through brochures and leaflets that promote good wheels and tyres for safe driving. SRIC will add credibility to our company brand if they are to refer customers to us for good wheels and tyre services.
5.8. Revenue Stream
The company intends offering wheel alignment and balancing services that will form the main source of revenue, whilst tyre sales both new and second hand will be secondary in the stream.
Tyre repairs on the other hand is an inevitable service that can never be isolated from all the main services offered by the company. The company will accept payment of invoices made by customers using cash, electronic fund transfer, e-Wallet, mobile money wire transfer and in the long run plans to accept credit from credible private and public companies.
5.9. Cost Structure
Pursuant the fact that the Qina Wheels and Tyres Services Company offers tangible products and services, it is eminent that the company set up a physical business location, acquire machinery and equipment to execute the quality services at competitive prices. The cost structure therefore will include:
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• Investment Costs: company registration fees, wheel alignment machine, wheel balancing machine, tyre repairs machine, hydraulic car lifts, partitioning of office, office furniture & equipment and brand new and second hand tyres.
• Bank Fees: interest on loans, bank charges, bank administration fees.
• Fixed Costs: salaries and wages, rentals,
• Variable Costs: tyre supplies, staff commission fees, petrol costs, utilities (water &
electricity), taxes, supplies (wheel balancing stock, tyre repairs stock etc.), mobile money fees, internet fees, marketing and advertising costs.
One should note that the company anticipates to start generating more and more incremental revenue and profits on the sale of tyres upon the establishment of the right suppliers and realizing economies of scale in the process.
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5.10. Summary of Qina Tyres Business Model
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