Astron Energy Northcliff

Astron Energy Northcliff. Business Plan. ASTRON ENERGY.

Contents. Introduction Executive Summary Situation Analysis Mission & Vision Market Analysis Target Market Competition Analysis Sensitivity Analysis Marketing Plan Organizational, Skills Development & Transformational Plan SWOT Analysis Implementation Financial Plan Conclusion.

Introduction. This proposed business plan is presented as part of the bid to purchase and operate the Caltex Northcliff Service Station based on the limited information and data about the current state of the business. Due to the limited nature of available facts, and without prior thorough investigation and research of the full market dynamics surrounding the location of the business, certain assumptions (which may be inaccurate) have been made in the formulation of this proposed marketing plan. Against this background the proposed initiatives are in no way exhaustive of the potential opportunities due to partial familiarity with the full profile of the business. It is to be noted that the applicant has full commitment and access to financial resources to fulfill the proposal made in this document as well as any further opportunities identified later upon full acquaintance with the business..

Introduction continued. This business plan covers the background and ownership of the business, the resources that will be invested in the business, our target market, industry analysis, competition analysis and comparison to our business, our organizational culture, vision, mission and values underpinning it, business operations and quality control measures to protect both our internal and external customers, our sales and marketing strategy plus future projections of the company. It is our sincere belief that the content of the business plan would illustrate the readiness of the company to start trading and making a contribution to the Astron Energy brand. The aim of this plan is to be a guide for this business. Researching and defining our markets, strategies, mission and financials will provide insight and prepare us to successfully operate this business..

Executive Summary. This Business Plan has been prepared for Astron Energy Northcliff, an existing Caltex branded outlet on Gordon road in Northcliff, Johannesburg North. In developing this plan we have: Research other operators in the business.. Observed and visited the site, conducted survey on other Caltex’s in similar environments..

Executive Summary continued. This plan takes into account the following notable facts from the available data sheet and observations regarding the location: Located in a prime surburb of Northcliff characterized by high LSM consumers on Gordon road which carries a high volume of transient traffic , makes Northcliff service station high potential site for both fuel and non-fuel sales....

Executive Summary continued. Bitcoin. It is believed that fuel sales volumes of at least 300 000 litres per month are reasonable attainable as well as non-fuel turnover revenues of at least R500 to R600 per month. These targets are projected to be met within 12 to 18 months based on the envisaged market development initiatives contained herein.

Executive Summary continued. While competing service stations in that area all provide a full offering, Northcliff service station lacks a fast-food outlet. It is also to be noted that the fast food form the competitors do not necessarily capitalize on the taxi industry. While the facts do not mention anything about customer satisfaction level there is an envisaged opportunity to implement aggressive service excellence to draw more traffic onto the site. In addition, an opportunity for customer loyalty programs designed to elicit repeat business and customer loyalty are envisaged. Performance incentives for both customer facing and back-office staff are a further opportunity..

The Key Motivation. Located in a prime surburb of Northcliff characterized by high LSM consumers on Gordon Road which carries a high volume of transient traffic, makes Northcliff service station high potential site for both fuel and non-fuel sales. It is believed that fuel sales volumes of at least 300 000 litres per month are reasonable attainable as well as non- fuel turnover revenues of at least R500 to R600 per month. These targets are projected to be met within 12 to 18 months based on the envisaged market development initiatives contained herein..

Blurred motion traffic. The Key Motivation. Located in a prime surburb of Northcliff characterized by high LSM consumers on Gordon Road which carries a high volume of transient traffic, makes Northcliff service station high potential site for both fuel and non-fuel sales. It is believed that fuel sales volumes of at least 300 000 litres per month are reasonable attainable as well as non- fuel turnover revenues of at least R500 to R600 per month. These targets are projected to be met within 12 to 18 months based on the envisaged market development initiatives contained herein..

The Key Motivation. While competing service stations in that area all provide a full offering, Northcliff service station lacks a fast-food outlet. It is also to be noted that the fast food from the competitors do not necessarily capitalize on the taxi industry. opportunity to implement aggressive service excellence to draw more traffic onto the site. In addition, an opportunity for customer loyalty programs designed to elicit repeat business and customer loyalty are envisaged. Performance incentives for both customer facing and back-office staff are a further opportunity..

Projections. THE projections for the business as based on management’s estimates, suggested the following results: Year One Year Two Revenues R42 051 328 R47 518 085 Profit R1 188 000 R1 151 022 The company projects that a positive cash flow will be achieved within 1 year. R4.205m will be borrowed from an institution and an initial investment of R1.8M (30% unencumbered funds) from the owner’s cash reserves and a R500 000 overdraft facility will be available from the bank to start operations..

Vision Statement. A filling station of choice on Gordon road in the Northcliff metropol ..

Mission Statement. To operate Profitable and Financially Sustainable business that is characterised by : memorable customer experience safety and convenience wide range of needs for customers under one roof , one stop shop characterised by professional , friendly and efficient customer service..

Business Structure. The business that we intend to operate is an Astron Energy branded petrol station in Northcliff Johannesburg. Below is the list of characteristics of the business: Site Name: Astron Energy Northcliff Operating Entity: BongaMK PTY LTD CK Number: 2004/122449/23 Owners: Ms Nozipho Reve BEE Status: 100% Black Female Site Details: Astron Energy owns the property Site Location: Gordon Road Northcliff.

Demographics. There are a total of 16,815 households in Northcliff.

demogaphics. White Collar White Collar 21,308 83.13 % Blue Collar Blue Collar 4,324 16.87 % Entrepreneurs 3,580 13.97% Civil Servants Private Companies 19,263 75.15 %.

Demographics. The top three means of transportation in Northcliff are :.

SWOT Analysis. STRENGTHS WEAKNESSES. Strengths On a busy road with transient traffic Dynamic target market both medium and high affluence; Fruit and veggie is suited to cater to a diverse market; Strong franchise offerings Access to taxi market Car wash Weaknesses Less than optimal visibility The neighbouring competitor , Engen site has better visibility and accessibiloity Transient traffic captured by competitor Competitor sites all have full offerings including fast food outlet and drive through Staff compliment of forecourt is inadequate Non availability of fast food outlets.

SWOT Analysis. Opportunities Threat Dull livery inside the freshstop Destination visit, to garner loyalty by offering compelling loyalty programs Introduction of Shesanyama and other complmentary products will make Northcliff the only offering that caters for the taxi amongst the competitors Corona people not mobile or going to work because of lock down; Electric cars Improving Public transport Introduction of Minimum wage bill. Potential taxi violence Post covid world will have less commuting to the office therefore less traffic… E-hailing industry like Uber.

SWOT Analysis. OPPORTUNITIES continued Introducing home deliveries , for like water , juice and packaged veggies Consumer Reward programms, rewardable onsite Free wi-fi for coffee at Seattle , pleasant environment Volume growth by competitive offerings eg Shesanyama Comprehensive ATM suite Provide for electric cars.

SWOT Analysis. In response to the weaknesses identified above, the company intends to Improve customer service and the Dealer will always be visible on site especially during peak hours. Will also introduce more ATM machines We will introduce performance appraisals. Our employees will be treated as one of the most important assets. They will be trained on all the necessary processes including health and safety, empowered and reimbursed for a job well done People will come because of the offering that caters to their needs which is distinctive from that of the competitor as well as superior customer service. catering for the Newlands community to expand our market reach….

SWOT Analysis. In response to the threats identified above, we intend to: Spend more time in the planning phase of our business processes. We strongly believe in ensuring that the correct input and processes are done correctly the first time in order to reap the intended outputs and company goals. To do things right and do the right things no matter how long it takes. Since we have no control on things such as espionage; the best thing to do is to be more than prepared to face all the challenges that come with the business..

Local & Community involvement. An opportunity to link the customer rewards programme to local community through the support of local institution like schools and sports teams will be exploited. Also, innovative concepts like contributing free sanitizers to the taxi industry in reward for their patronage will be implemented.

Local & Community involvement. An opportunity to link the customer rewards programme to local community through the support of local institution like schools and sports teams will be exploited charity and development donations innovative concepts like contributing free sanitizers to the taxi industry.

Operations Plan. The business’s most asset is its people and as such, we are committed to the empowerment of the entire staff through training and development. Hence, we will strive to: Employ people from the Previously Disadvantaged South African and the disabled communities..

Operations Plan. Team Training All employees will be continuously trained on the quality of the product and the level of customer service expected from them, regardless of the position in the company. Customer Focus Relationship building between our internal and external customers, i .e. suppliers, customers and employees. This include documenting of customer requirements and expectations. Management will source customer feedback to ensure customer satisfaction..

Operations Plan. Repeat. Leadership The leadership will continuously steer the vision an mission of the company, improve company and individual employee performanceP , and ensure quality service. Employee Incentives To enhance the productivity of the employees, we will introduce employee incentives to reward their good efforts and productivity. Targets and the rules of the incentive schemes will be fully explained and implemented so that all employees understand the concept and goals..

Operations Plan continued. Employee Discipline A standard disciplinary code will be discussed and distributed amongst the employees in order to ensure that they all understand the requirements. The duties and responsibilities for the employer and employee will be clear. This will avoid misunderstanding or unfair dismissals etc. Variation There will be standard procedures for dealing with customers queries. The focus will be on continuous improvement and correcting any mistakes and/or dissatisfaction by customers..

Operations Plan continued. Continuous Improvement and processes This is not only for meeting customer requirements but to exceed customer expectations. This will be done by conducting regular checks of our processes and practice and through eliminating root cause of the problems. Examples of control measures include: tankers to have two filters to guarantee that product is not contaminated; calibration of pumps in line with HSEQ standards. Key is our adherence to best practices in operations for a successful business.

Operations Plan continued. Stock Shrinkage Attention will be drawn to the employees on the effects of stock shrinkage on the business. This will highlight to them the long term effect on the sustainability of the business and consequently their jobs. They will be trained on how to assist in reducing shrinkage (especially in the store room and the shop). Additionally the services of a security company will be procured to ensure safety and security for our employees and customers. The Key issue is ensuring that all employees do the right things and thereby support the business to the extent they can ,for continuous growth and improved customer excellence..

Operations Plan continued. Systems and Controls The Astron Energy Northcliff back office computer and systems will enable the accounts to be “realtime” and always up to date. We will keep this system up to date at all times so that we can manage the business correctly and take action as soon as possible. Management accounts will be produced and studied quarterly. Remedial action(s) will be attended to immediately. Our accountants will ensure the legal items are always correct and submitted on time..

Safety and Security. Medical. All oil companies have Health, Safety and Environmental policies (HSEQ) to ensure that anyone who enters the service station is safe. Likewise, the immediate area is safe from fuel pollutions etc. We will comply with all the requirements of these policies to ensure our business is conducted within the general HSEQ guidelines. The business will have the latest video monitoring equipment and surveillance systems with mobile viewing that will enable us to monitor the whole business operating area during all hours and remotely. This will reduce personal safety and security risks..

Safety and Security. The employees can also be trained by using this device to illustrate customer service points and also as a deterrent to employee laziness and theft. Customer safety will never be compromised and the HSE requirements and procedures will be adhered to at all times. We are committed to the adherence to best practice elements of operation for a successful business..

Social, Environmental and Ethical Standards. Business Growth.

Social, Environmental and Ethical Standards. Value adding services that are volunteered and efficient (windscreen clean, check tyre pressure, check water and oil, etc.); All forecourt equipment must be clean and always in working order (air-hoses, etc.); Well-lit forecourt that appears to be safe and welcoming. Management to perform daily inspection of all dispensers/pumps and all tank manholes; Well stocked shop with the relevant products and not out of stock of any popular products ;and No discrimination (in any way) against any customer group. Of key importance here is ensuring all customers feel welcome and safe and have superior customer experience.

Strategy, Implementation, monitoring and evaluation.

Financial Plan. Projections THE projections for the business as based on management’s estimates, suggested the following results: Year One Year Two Revenues R42 105 133 R4 7518 085 Profit R1 188 000 R1 151 022 The company projects that a positive cash flow will be achieved within 1 year. R4.205m will be borrowed from an institution and an initial investment of R1.8M (30% unencumbered funds) from the owner’s cash reserves and a R500 000 overdraft facility will be available from the bank to start operations..

Promotions Plan. Envisaged Market Development initiatives The following strategic segments will be the focal point of initiatives that will be part of the plan to grow both fuel and non-fuel volumes, while taking advantage of the prime location of the site: Location Competitive Offerings Service excellence Ensuring repeat business and customer retention Staff Performance Incentives.

Location. neighborhood survey will be conducted with the view to establish a data base of residents and then reach out through digital and other communication channels for regular communication with the target market; Highly visible signage and or billboard will be strategically placed for high visibility of the site; Highly visible and impactful promotional campaign will be strategically placed for diversion of transient traffic onto the forecourt; As well as visibly appealing digital marketing screens, strategically placed to promote offerings on-site while simultaneously advertise nearby businesses for increased income; and There also can be an opportunity to re-configure an ingress and egress of the site as well as site visibility through appropriate road signage..

Competitive Offerings. To differentiate Northcliff service station and accord it a competitive advantage, and adequately catering for the target market the following amenities are envisaged: A fast-food outlet like Shisanyama will be offered to cater to the taxi industry as well as crispy chicken; grill to go and fish; A fruit and veggie compliment will be added onto the convenience shop; A deli and bakery will be offered as well; and Postal and personal office services like Postnet will be introduced. A drive through fast food facility of well-known brand like chicken licken and a pizza outlet will be offered. A play area for children will be added to cater for families of car wash customers as well as basic innovative toys in the shop; Free WI-FI services for car wash and coffee shop patrons; and A suite of ATM machines from various major banks will be offered for customer convenience; Very affordable house branded water and various flavor juices with home delivery service..

Boxes On Rack In Warehouse. Service excellence. It is a fact that a superior service experience is a key differentiator in the fuel retail industry. Training of staff on customer service as well as a professional image will be a key focal point for the site. Additional forecourt staff compliment (about 3 attendants) will be added for efficient and improved customer services and customer experience; In addition, regular customer satisfaction surveys will be conducted, and customers will be encouraged to express any experiences of less than satisfactory services in real time with a commitment to address such issues at the highest management level. To optimize floor space carefully selected quality and relevant products will be offered to the target market Quality assurance on premises and services Speedy and effective service Professional and friendly staff Clean and tidy work premises Comfortable and inviting environment.

Ensuring repeat business and customer retention. It will be important to ensure that not only existing customers are retained but also patronage of new customers is generated through appropriate loyalty programs. To this end continuous loyalty programme will be offered for purchases of goods and services in the convenience store through a rewards programme. An opportunity to link the customer rewards programme to local community through the support of local institution like schools and sports teams will be exploited. Also, innovative concepts like contributing free sanitizers to the taxi industry in reward for their patronage will be implemented.

Staff Performance Incentives. Staff performance incentives like employee of the month for both customer facing and back-office staff as well as monthly prizes. These initiatives will be backed by monthly prizes awarded in recognition of exceptional staff performance. Performance contracts will be established for managerial and supervisory staff which will be linked to renumeration. Also, performance bonuses paid annually for both back-office staff and customer facing staff..

Marketing and Sales Strategy. keep our fuel prices competitive with other stations in a fifty mile radius of the site in order to attract commuters. Customers that fill up full tank on diesel, we give them a 1L water bottle and car wash coupons (for a fifth full tank, you get a free car wash), to encourage them to fill up full tanks and to introduce them to the concept of keeping their cars clean and increasing car wash sales. Our petrol attendants and cashiers will be well trained on the concept of “upselling”. We will also emphasise to our petrol attendants that “fuel is fuel” but what will keep the customers coming back is that top notch customer service providing excellent customer experience comparable to non-other..

Marketing Strategy. The following marketing strategies have been identified and will be implemented immediately: Advertising: We will design a huge banner which we will put outside our site notifying the customers that the site is “NOW UNDER NEW MANAGEMENT “in order to gain confidence from customers. Community newspapers we will place adverts in the community newspapers so that the residents will be aware that we are the new operator of the Astron Energy Northcliff with a newly refreshed Freshstop. We will also provide “knock and drop” pamphlets to the establishments and houses in the area. Forecourt : We will ensure that the forecourt remains, clean and well-lit at all times. Safety on the forecourt for the staff and customer is important and the customers can see whether the area is being safely managed or not. FreshStop: Good selection and prompt service are the key disciplines that we know how to master and maintain. The customer, again, will be aware of the service levels and quality of the products..

Marketing Strategy continued. Other facilities: Having additional ATM machines will provide a convenience for the customer (without generating much income from itself). This convenience will ensure we have additional customers who will be prompted by the merchandise to spend in the shop. The sale of phone, electricity and other cards will be important to the community and the commercial customers who frequent the FreshStop every lunch time. Food offering that stands shoulder-to-shoulder with our coffee: hand-made artisanal snacks for which customers will come back for time and time again. We will use the best fresh ingredients in all our products and ensure that our muffins, sandwiches and pastries are freshly baked daily. Innovative and interesting toys for children for mom’s to come wash cars and get them to the garage. Home deliveries of juice and water for top of mind awareness; Specialised fresh fruit juice that’s trendy for the upper affluent e.g detox and immune boosting juices; Wakaberry ( frozen yoghurt) bar ; Haagen Dazs or Peter’s home-made icecream fridge to draw children and adults alike to the store and forecourt.

Key Marketing Success Factors. Management commitment to visible and effective good supervision of the staff, especially on the forecourt. The avoidance of excessively high interest bearing loans that will reduce the profitability of the business. Monthly Management Accounts that show key performance and ratios so that corrective actions can be taken as soon as possible. Labour practices that support and enhance the service given to the customers Continuous staff training, support and guidance The forecourt will be the show piece of the business as this is the first impression the customer will get..

Rolls of Newspaper. Standards Plan. Volumes will increase to 320000 by end 2023 This will be achieved through new ideas and capabilities: Stronger financial muscle Order regularly and consistently; Proper stock replacement and merchandising of the shop therefore Stock in the shop to drive volumes; Sign under new management; Newspaper advertisement; Encouraging customer for new experience “Come enjoy coffee with complimentary wi fi”, spending more time in our shop. Adding 3 petrol attendants for efficiency improved customer experience and new site manager ,staff compliment 19 to 23. Night manager for improved service even at night. introduction of staff performance incentives e.g. employee of the month voted by staff will get a bonus ( R1000 cash or a voucher). Other initiatives in the second half of the year : refurbish of the shop; further inhouse and external training of staff on customer service..

Standards Plan continued. Non fuels growth of 10 % per annum. Variable costs and operating expenses are expected to increase at the general inflation rate of 8% yearly starting in year 2 (2023). Customer survey will be conducted and also analysing of customer reviews to get feedback and suggestions and areas of improvement so as to meet the customer expectations with both relevant products and customer services. E.g. from some of the reviews there is a need to train cashiers to be friendly and educate them (and the staff at large) on the significance and impact on the business..