CHAPTER I

Introduction

Tacloban City, a vibrant metropolis in the Eastern Visayas region of

the Philippines, has witnessed significant growth and development
in recent years. This growth has been accompanied by an increase
in the number of vehicles on the road, leading to a rising demand
for car wash services. Despite the existing car wash establishments
in the city, there is a potential for a well-managed, full-service car
wash to cater to the growing needs of the local market.

A full-service car wash can provide a unique value proposition by

offering a wider range of services, including exterior washes, interior
cleaning, detailing, and additional amenities. These services cater to
the needs of consumers who seek convenience, quality, and a
personalized experience.

This feasibility study aims to assess the profitability of establishing a

full-service car wash in Tacloban City. The study will analyze various
factors, including market demand, competition, financial
projections, and operational considerations and will delve into the
current state of the car wash industry in Tacloban City, examining
the existing competition, their services offered, and pricing
strategies. By conducting a comprehensive evaluation, this study
will provide valuable insights into the viability and potential
profitability of such a venture. Additionally, the study will explore
the demographics and socio-economic characteristics of the target
market, identifying their preferences, needs, and willingness to pay
for car wash services.

Furthermore, the study will conduct a financial analysis to evaluate

the potential profitability of the proposed car wash. This analysis will
include projections of revenue, expenses, and profitability, taking
into account factors such as start-up costs, operating expenses,
pricing strategies, and expected customer volume. By examining
the financial viability of the venture, the study will provide a clear
understanding of the potential returns and risks associated with
investing in a full-service car wash in Tacloban City. By conducting a
thorough feasibility analysis, entrepreneurs can make informed
decisions about whether to proceed with the venture and develop a
sound business plan.

Company’s Historical Background

Our car wash business the "Sudsy McShine's Car Spa" has been a
cornerstone of the local community for over a year. Established in
July 20, 2024, we have consistently provided high-quality car care
services to residents and visitors alike. Our commitment to
customer satisfaction, coupled with our experienced team and
state-of-the-art equipment, has enabled us to build a loyal customer
base and a strong reputation in the industry.

Over the years, we have expanded our services to meet the

evolving needs of our customers. We have introduced [new
services, e.g., detailing, undercarriage washes, interior cleaning] to
provide a comprehensive range of car care options. Our team of
experienced professionals is dedicated to delivering exceptional
results and ensuring customer satisfaction.

We have also invested in state-of-the-art equipment and technology

to enhance our efficiency and provide the highest quality of service.
Our commitment to innovation and continuous improvement has
allowed us to stay ahead of the curve and maintain our position as a
leading car wash business in the region.
Location

A prime location for a car wash business in Tacloban City would be

along a major thoroughfare with high traffic volume, such as Brgy.
93, Bagacay, Maharlika Highway. This location would provide easy
access to potential customers and ensure maximum visibility.
Additionally, consider proximity to residential areas, commercial
districts, or industrial zones, as these areas typically have a high
concentration of car owners. By choosing a location that is easily
accessible and visible, you can increase the chances of attracting a
steady stream of customers and maximizing your business
potential.

Legal Structure and Form of Ownership

A sole proprietorship is a common legal structure for small

businesses, including car wash services. This structure means that
the business is owned and operated by a single individual. As a sole
proprietor, you are personally responsible for all business debts and
liabilities. While this can be a risk, it also offers simplicity and
flexibility. Sole proprietorships are generally easy to set up and
require minimal paperwork. This structure is often suitable for small,
independent car wash businesses that are just starting out or don't
require significant capital investment.

Daisy Ann owns and operates a small car wash business in a

suburban neighborhood. As the sole proprietor, she is responsible
for all aspects of the business, including:

*Managing day-to-day operations: Daisy oversees the car wash

staff, ensures the equipment is in good working condition, and
handles customer inquiries.
*Handling finances: She tracks income and expenses, pays bills, and
prepares tax returns.
Making business decisions: Daisy decides on pricing, marketing
strategies, and any necessary investments for the business.

*Assuming personal liability: As the sole proprietor, Daisy is

personally liable for any debts or legal issues arise from the
business.

In essence, a sole proprietorship grants the owner complete control

and flexibility, but it also comes with the responsibility of bearing all
risks and liabilities associated with the business.

Mission/Vision Statements

Mission

To provide exceptional car care services that exceed customer

expectations, ensuring their vehicles are clean, well-maintained,
and protected. We strive to create a positive and welcoming
environment for our customers.

Vision

To be the leading provider of car wash services in the region,

renowned for our quality, innovation, and commitment to customer
satisfaction. We aim to set the industry standard for excellence and
contribute positively to our community.

Goal and Objectives of the Business

The primary goal of assessing the profitability of a full-service car

wash in a feasibility study is to determine its financial viability. To
achieve this, the objectives include:

*Estimating revenue: Projecting the potential income based on

factors like location, target market, pricing strategy, and expected
customer volume.

*Calculating costs: Identifying and quantifying all expenses,

including operational costs (e.g., labor, water, utilities), equipment
costs, marketing expenses, and overhead.

*Analyzing profitability: Comparing projected revenue with

estimated costs to determine the expected net profit or loss.

*Evaluating return on investment (ROI): Assessing the profitability of

the venture in relation to the initial investment.

*Identifying potential risks and challenges: Identifying potential

threats to profitability, such as economic downturns, competition,
and unexpected expenses.

*Developing a financial forecast: Creating a detailed financial

projection that outlines the expected income, expenses, and
profitability over a specific period.

Production/Service Description
Our business "Sudsy McShine's Car Spa" offers a comprehensive
range of car wash services designed to enhance the appearance
and cleanliness of vehicles. We provide both exterior and interior
cleaning options tailored to meet the needs of various customers.

*Exterior Services:
Basic Wash: A thorough cleaning of the exterior, including the body,
windows, tires, and rims.
Premium Wash: In addition to the basic wash, we offer premium
services such as polishing, waxing, and undercarriage cleaning to
restore the vehicle's shine and protect against the elements.
Detailing: Our detailing services provide a meticulous cleaning of
the exterior, including removing contaminants, polishing, and
applying protective coatings to achieve a showroom-quality finish.

Interior Services:
Vacuuming: A thorough vacuuming of the interior, including seats,
carpets, and floor mats.
Shampooing: Deep cleaning of upholstery and carpets using
specialized cleaning solutions to remove dirt, stains, and odors.
Interior Detailing: A comprehensive cleaning of the interior,
including cleaning and conditioning leather seats, removing stains
from upholstery and carpets, and detailing the dashboard, console,
and other interior surfaces.

Additional Services:
Waxing: Applying protective wax coatings to the exterior to enhance
shine, protect against UV rays, and repel water.
Polishing: Removing scratches and swirls from the paintwork to
restore the original finish.
Paint Protection: Applying advanced coatings to protect the
paintwork from scratches, chips, and fading.
Window Tinting: Applying tinted films to the windows for privacy,
heat reduction, and UV protection.

We pride ourselves on providing high-quality, efficient, and

affordable car wash services. Our experienced staff uses the latest
equipment and techniques to ensure your vehicle receives the best
possible care.

CHAPTER II
Demand/Supply Gap Analysis
UNDERSTANDING THE MARKET
Population and Vehicle ownership
POPULATION

A. 2020 Census: According to the 2020 Census of Population and

Housing, Tacloban City had a population of 251,881.
B. Growth Rate: The city has experienced steady population growth
over the years, reflecting its economic development and
attractiveness as a place to live.

VEHICLE OWNERSHIP
A. Data Limitations: Specific data on vehicle ownership in Tacloban
City might be limited or not publicly available. However, we can
make some informed assumptions based on general trends and
factors.
B. Increasing Ownership: Given the city's economic growth and
rising standard of living, it's likely that vehicle ownership has been
increasing over the years.
C. Factors Affecting Ownership: Factors such as income levels,
infrastructure development, and transportation costs can influence
vehicle ownership rates.
D. Vehicle Types: The types of vehicles owned in Tacloban City may
include cars, motorcycles, SUVs, and commercial vehicles.
E. Vehicle Age: The average age of vehicles in the city can impact
the demand for car wash services, as older vehicles may require
more frequent maintenance.
F. Vehicle Usage: The frequency of vehicle usage, whether for
personal or commercial purposes, can also affect the demand for
car wash services.
Assuming 20-30% of households own vehicles, this translates to a
potential market of 50,376-75,564 vehicles.

II. ASSESSING DEMAND

Based on surveys and observations, you might find that the peak
hours for a car wash business in Tacloban City are:

Workdays: Mondays to Fridays typically see increased demand for

car washes, especially during the early morning and late afternoon
when people are commuting to and from work.
Weekdays: 7:00 AM to 9:00 AM and 5:00 PM to 7:00 PM

Weekends: Saturdays and Sundays often have the highest

demand, as people have more free time and may want to clean
their vehicles before the start of the week.
Weekends: 10:00 AM to 4:00 PM

Seasonal Variations: Demand for car wash services may vary

seasonally, with higher demand during the rainy season and lower
demand during the dry season.

Customer Preferences: Some customers may have specific

preferences for the time of day they prefer to get their cars washed.

Competitive Landscape: The peak hours of your business may be

influenced by the peak hours of competing car wash facilities.

III. ANALYZING SUPPLY

Existing car wash facilities: Tacloban City has a growing

number of car wash facilities to cater to the increasing demand for
vehicle cleaning services. While the exact number may vary, some
well-known establishments include J&J carwash, Lipyada Car Spa,
Duck 'z Auto Detailing & Car Wash, Tags Car wash, A to Z express
car wash and Tacloban Auto care car wash. These facilities offer a
range of services, from basic washes to full detailing, and vary in
size, location, and pricing. Some car washes are independently
owned and operated, while others are part of larger chains or
franchises. The competition among car wash facilities in Tacloban
City is relatively high, as businesses strive to attract customers with
competitive prices, convenient locations, and quality services.

Capacity: A facility with 3-5 washing bays can adequately handle

peak hours. Suppose there are 10 car wash facilities in Tacloban
City, with an average of 3-5 bays per facility and a throughput rate
of 6 vehicles per hour per bay. This would give a total capacity of
240 vehicles per hour for all existing facilities.

IV. IDENTIFYING THE GAP

A. Market and Supply Discrepancy
Suppose the estimated demand for car wash services in
Tacloban City is 1,000 vehicles per day, while the total capacity of
existing facilities is only 800 vehicles per day. This indicates a
market and supply discrepancy of 200 vehicles per day. A new car
wash business that can effectively cater to this unmet demand
could potentially be successful.

B. Market Opportunity
A new car wash business in Tacloban City specifically the
"Sudsy McShine's Car Spa" could focus on providing premium
detailing services and eco-friendly cleaning options. By targeting
specific customer segments, such as fleet owners or individuals who
own luxury vehicles, the business can position itself as a high-end
option. A strategic location near a busy commercial district or
residential area would further enhance its visibility and accessibility.
Particularly in the Northern part of Tacloban city, along the
maharlika highway. The market opportunity for a car wash business
in Tacloban City is promising, given the growing population,
increasing vehicle ownership, and the potential to differentiate
oneself from existing competitors. By carefully analyzing market
demand, supply gaps, and competitive advantages, entrepreneurs
can assess the feasibility of starting a successful car wash business
in the city.

C. Competitive advantages
Unique Services and Offerings
Eco-Friendly Products: Using environmentally friendly cleaning
products can appeal to customers who are conscious about the
environment.
Specialized Cleaning: Offering specialized cleaning services, such as
undercarriage cleaning, interior detailing, or pet hair removal, can
cater to specific customer needs.
Additional Services: Providing complementary services like oil
changes, tire rotations, or minor repairs can increase revenue and
attract customers seeking one-stop-shop convenience.
Value-Added Features: Offering perks like free coffee or Wi-Fi
while customers wait can enhance the overall experience.

D. Convenient Location
Accessibility: A well-located car wash should be easily accessible
from major roads and have ample parking space.
Proximity to Target Markets: Consider locating the business
near residential areas, commercial districts, or industrial zones to
cater to specific customer segments.
Visibility: A prominent location with good visibility can attract
customers passing by.

E. Superior Customer Service

Friendly and Helpful Staff: Employing courteous and
knowledgeable staff can create a positive impression on customers.
Efficient Service: Streamline operations to minimize wait times
and ensure timely service.
Attention to Detail: Pay close attention to the quality of work and
ensure that vehicles are thoroughly cleaned and detailed.
Loyalty Programs: Implement loyalty programs to reward repeat
customers and encourage customer retention.

F. Modern Facilities and Equipment

State-of-the-Art Equipment: Invest in high-quality washing and
detailing equipment to ensure efficient and effective cleaning.
Clean and Well-Maintained Facilities: A clean and inviting
environment can create a positive impression on customers.

G. Competitive Pricing
Transparent Pricing: Clearly communicate pricing structures and
avoid hidden fees.
Value for Money: Offer competitive prices while maintaining a
high standard of service.
Packages and Discounts: Provide package deals or discounts to
attract customers and increase revenue.

Target Market

A full-service car wash in Tacloban City can target a variety of

customer segments, including:

1. Individual Car Owners:

 Daily Commuters: People who use their vehicles for daily
commuting to work or school.
 Families: Households with personal vehicles for family use and
outings.
 Students: Students who own or use vehicles for transportation.

2. Fleet Owners:
 Rental Car Companies: Businesses that rent out vehicles to
customers.
 Delivery Services: Companies that use vehicles for deliveries,
such as food delivery or courier services.
 Government Agencies: Government agencies that own and
operate fleets of vehicles.

3. Commercial Accounts:
 Businesses: Companies that own company vehicles for business
purposes.
 Hotels and Resorts: Hotels and resorts that may need their
shuttle vehicles or rental cars washed regularly.
 Event Organizers: Organizers of events that may require
cleaning services for vehicles used during the event.

4. Specialized Customers:
 Luxury Car Owners: Owners of high-end or luxury vehicles who
may require specialized detailing services.
 Pet Owners: People who own pets and need their vehicles
cleaned regularly to remove pet hair and odors.

5. Regular Customers:
 Repeat Customers: Customers who frequently use car wash
services and can be retained through loyalty programs or
promotions.

By targeting these specific customer segments, a full-service

car wash in Tacloban City can tailor its services and marketing
efforts to meet their needs and preferences, increasing its chances
of profitability.

Geograpic Area
Location: Brgy 93 Bagacay, Maharlika, Tacloban City

Advantages of the Location

 High Traffic Volume: The proximity to Maharlika Highway, a
major thoroughfare, ensures a constant flow of potential
customers.
 Population Density: The area's population density, including
residents and commuters, provides a strong target market.
 Limited Competition: With fewer car wash facilities in the
immediate vicinity, Sudsy McShine's Car Spa can establish a
competitive advantage.
 Accessibility and Visibility: The location's visibility from Maharlika
Highway and its easy accessibility make it convenient for
passing motorists to stop for a wash.
 Proximity to Landmarks: The location's proximity to the San
Juanico Bridge and the Eastern Visayas Medical Center (EVMC)
can attract customers who are visiting these landmarks or
seeking medical care.
 Convenience for Hospital Visitors: Patients, visitors, and staff at
the EVMC may appreciate a nearby car wash for quick and
convenient cleaning.
 Tourist Traffic: The San Juanico Bridge draws tourists who may
require car wash services for rental vehicles or personal cars.
 Local Demand: Residents in the area will benefit from having a
convenient car wash facility nearby, fulfilling a local need for
vehicle maintenance.

Overall, the location of Sudsy McShine's Car Spa in Brgy 93

Bagacay offers a strong combination of factors that make it a
strategic choice for a car wash business. The high traffic volume,
population density, limited competition, and accessibility all
contribute to the potential for success.
Market Demographic
Sudsy McShine's Car Spa has established itself as a leading
car wash in Tacloban City, catering primarily to a specific
demographic. The target market consists of busy professionals aged
25 to 54, whose hectic lifestyles demand convenient and time-
saving car cleaning solutions. These individuals often belong to
dual-income households and own multiple vehicles, further driving
the demand for efficient car maintenance services.
In addition to the core demographic, younger consumers aged
18 to 24 are emerging as a growing market for car wash services.
Their increasing interest in car maintenance and customization
presents a significant opportunity for Sudsy McShine's Car Spa.
Geographic location also influences the specific needs and
preferences of customers. Rural areas may see a higher demand for
larger vehicle owners, such as trucks and SUVs, while urban centers
tend to favor compact cars and smaller vehicles due to population
density and commuting habits.
Income levels also play a crucial role in determining consumer
behavior. Higher-income households are more likely to seek
premium car wash services, including detailing and express washes,
while budget-conscious consumers may opt for more economical,
self-service options. Understanding these market demographics is
essential for Sudsy McShine's Car Spa to tailor its services and
marketing strategies to meet the specific needs and preferences of
its target audience.

COMPETITION

Competitor Location Services Pricing

Name Offered
Zeus Carwash Maharlika Detailing of
and Detailing Highway Corner Vehicles
Tacloban Villa Mayor, Exterior ₱3,500
 Caibaan Rd, Detailing
6500 Leyte Interior
Detailing
Engine
Detailing ₱500
Waxing of
Vehicles ₱350
Hand Wax
Machine Wax
Hairline ₱12,500
Scratch
Removal
Ceramic
Coating
Ceramic
Coating
Graphene
Coating
Southside 6x4x+W7P,Taclo Detailing of ₱3500
Autocare Detailing ban City,6500 Vehicles
and Carwash leyte Vacuum ₱350
Interior ₱500
Waxing of
Vehicles ₱1,ooo
Clay bar ₱3,000
treatment ₱500
Polishing
Scratch
Removal

J&J Car Wash Zone Saturn, Regular

Brgy, C Wash ₱150
 Maharlika Hatchback ₱160
Highway, Sedan ₱180
Palo,6500 Leyte MVP ₱200
SUV/PICK-UP ₱240
Van
PremuimWas ₱240
h ₱270
Hatchback ₱310
Sedan ₱350
MVP ₱420
SUV/PICK-UP
Van ₱780
Special Wash ₱830
Hatchback ₱950
Sedan ₱1,000
SUV/PICK-UP
Van ₱80
MOTORCYCLE ₱120
Small ₱140
With side car
Big bike

Tito Lan’s Car 622+FFQ, Picas- Carwash

Wash San Jose DZR Bike ₱30
Airport Rd Motorcycle ₱70
Tacloban City , With wax ₱100
Leyte Minicar/Wigo ₱160
With wax ₱330
AUV/kotse ₱180
With wax ₱350
Multicab ₱180
With wax ₱350
 Panel ₱180
With wax ₱350
SUV ₱200
Wih wax ₱350
Pick-Up ₱200
With wax ₱350
L-300 ₱200
With wax ₱350
Van ₱250
With wax ₱400

Tacloban City, with its growing population and increasing

number of vehicles, presents a promising market for a full-service
car wash. However, there is already a degree of competition in the
area. Direct competitors include established car wash businesses
such as Zeus Carwash and Detailing Tacloban, Southside Auto care
detailing and carwash, J&J Car wash and Tito Lan's Car wash. Both
competitors offer a range of full-service car wash packages,
including interior and exterior cleaning, waxing, and detailing. They
cater to a diverse clientele, from individual car owners to corporate
fleets. Indirect competitors include self-service car washes, which
provide a more affordable option for customers, and home car
washing services, which offer convenience but may not provide the
same level of quality or efficiency as a professional car wash.
Additionally, detailing shops in the city cater to a more specialized
market, focusing on high-end vehicles and offering premium
services. A thorough competitive analysis is essential to understand
the strengths and weaknesses of each competitor. Southside auto
care detailing and carwash is known for its convenient location and
quick turnaround time, while Zeus Carwash and Detailing Tacloban
is recognized for its high-quality detailing services. However, both
businesses may face challenges in terms of pricing and customer
service. By carefully analyzing the competition, it is possible to
identify opportunities to differentiate the proposed car wash and
attract customers. This may involve offering unique services, such
as ceramic coatings or mobile detailing, or providing exceptional
customer service. Additionally, competitive pricing and strategic
marketing can help to position the business as a preferred choice
among consumers

Business Environment

The business environment in Tacloban City is characterized by

a growing economy, increasing urbanization, and rising vehicle
ownership. The city's GDP growth rate has been steadily increasing
in recent years, driven by investments in infrastructure and tourism.
This economic expansion has led to a rise in consumer spending,
creating favorable conditions for businesses. The demographic
profile of Tacloban City is evolving, with a growing young population
and increasing urbanization. This trend is reflected in the rising
number of vehicles on the roads, which presents a significant
opportunity for car wash businesses. The city's socio-cultural
factors, such as a growing awareness of environmental issues and a
preference for convenience, also play a role in shaping the market
for car wash services. Technological advancements have the
potential to impact the car wash industry, with innovations in
cleaning products, equipment, and payment systems. The
widespread adoption of smartphones and internet connectivity also
offers opportunities for marketing and customer engagement. From
a political and legal perspective, the business environment in
Tacloban City is generally supportive of entrepreneurship. However,
it is important to be aware of local regulations, permits, and
taxation requirements. By understanding the key economic,
demographic, socio-cultural, technological, and political factors, it is
possible to assess the potential profitability and sustainability of a
full-service car wash business in Tacloban City.
Marketing Strategies

Marketing strategies for a full-service car wash business in

Tacloban City should focus on creating awareness, building trust,
and attracting customers: Local Partnerships: Collaborate with local
businesses, such as car dealerships, auto repair shops, and
insurance companies, to offer joint promotions and referrals. Social
Media Marketing: Utilize platforms like Facebook, Instagram, and
TikTok to showcase high-quality images and videos of your car wash
services, engage with customers, and run targeted advertising
campaigns. Loyalty Programs: Implement a loyalty program to
reward repeat customers with discounts, free services, or exclusive
offers, encouraging customer retention. Online Reviews: Encourage
satisfied customers to leave positive reviews on Google, Yelp, and
other online platforms to enhance your business's reputation.
Community Involvement: Participate in local events and initiatives
to increase brand visibility and foster positive relationships with the
community. Targeted Advertising: Utilize targeted advertising
methods, such as direct mail, email marketing, and print media, to
reach specific demographics within your target market. Public
Relations: Seek media coverage through press releases, interviews,
and partnerships with local news outlets to generate awareness and
build credibility. Customer Service Excellence: Provide exceptional
customer service to ensure customer satisfaction and positive word-
of-mouth referrals. By effectively implementing these marketing
strategies, a full-service car wash business in Tacloban City can
attract a loyal customer base and achieve long-term profitability.