Lluc Colomo and Joaquim Estapé

J a n B e n d t s e n E n t r e p r e n e u r s h i p

V i a U n i v e r s i t y C o l l e g e

Building a SEAT Dealer

Index 1. Idea and background ................................................................................................................... 4

1.1 Problem ............................................................................................................................................. 4

1.2 Solution.............................................................................................................................................. 4

1.3 Customer ........................................................................................................................................... 5

1.4 Revenue ............................................................................................................................................. 5

1.5 People & Passion ................................................................................................................................ 5

2. Product and concept ................................................................................................................... 6

2.1 Core product ...................................................................................................................................... 6

2.2 Add on products ................................................................................................................................. 6

2.3 Customer value .................................................................................................................................. 6

2.4 Pricing ................................................................................................................................................ 7

2.5 IPR ..................................................................................................................................................... 7

2.6 Development potential ...................................................................................................................... 7

2.7 Production ......................................................................................................................................... 7

3. Customer and market.................................................................................................................. 7

3.1 Customer ........................................................................................................................................... 8

3.2 Market ............................................................................................................................................... 9

3.3 Trends ...............................................................................................................................................10

4. Industry ..................................................................................................................................... 10

4.1 Industry structure and environment ..................................................................................................10

4.2 Entry barriers ....................................................................................................................................11

4.3 Competitors ......................................................................................................................................11

4.4 Competitive advantage and strategy .................................................................................................12

5. Sales and Marketing .................................................................................................................. 12

5.1 Sales and distribution channels .........................................................................................................12

5.2 Sales activities ...................................................................................................................................13

5.3 Marketing activities ...........................................................................................................................13

5.4 Core message and positioning ...........................................................................................................14

6. Management and organization ................................................................................................. 14

6.1 Legal structure and ownership ..........................................................................................................14

6.2 Management ....................................................................................................................................15

6.3 Board and advisors ............................................................................................................................15

6.4 Partnerships ......................................................................................................................................16

6.5 Key activities .....................................................................................................................................16

6.6 Key resources ....................................................................................................................................16

7. Action and development plan ................................................................................................... 16

7.1 Vision ................................................................................................................................................16

7.2 Goals .................................................................................................................................................17

7.3 Milestones & Actions ........................................................................................................................17

8. Risk Analysis .............................................................................................................................. 18

9. Budgets ..................................................................................................................................... 19

9.1 Establishing Budget ...........................................................................................................................19

9.2 Operating budget ..............................................................................................................................21

9.3 Funding .............................................................................................................................................22

10. Appendices.............................................................................................................................. 22

10.1 Facts from customers ......................................................................................................................22

10.2 Facts from partners .........................................................................................................................24

10.3 Sales Plan ........................................................................................................................................25

10.4 Bibliography ....................................................................................................................................26

1. Idea and background We think that open a Seat concessionaire in Odense, third city more important of Denmark,

which have only one Seat dealer to supply a population 190.000 inhabitants, could be a

serious good model of business, due to the following reasons. We have chosen to install the

dealer in Denmark because we believe that this brand has a well acceptance in the country,

and in Odense above other cities like Aarhus and Copenhagen for the simple fact that the

proportion of potential customers for dealer cars is considerably lower in this area.

1.1 Problem Being abided by the information of the Spanish newspaper called ”La Vanguardia” in an article

edited by ”Enrique García” on 5th of May of this year, There are not sufficient units of the new

models to be able to supply the demand in Denmark.

This way it has been assured by the president of SEAT's Danish subsidiary, assuring that have

asked for more units themselves in order that the distributors do not have to give long

waiting-lists to the consumers. As it seems in the first three months of the year SEAT has sold

in Denmark all the units foreseen until June.

Otherwise, the success of the new models like ”Seat León” or ”Mii” in Denmark has been so

unexpected that in two previous occasions there has had to increase the number of units

destined for this market. The principal problem with the waiting lists is in that many users

decide not to expect and to choose any of his brothers, especially the Skoda Citigo that also is

a real commercial success.

1.2 Solution To avoid this problem, we think that to open this business might provide benefits for us in the short and long term, simultaneously that take profit one of the most important companies of our country and the Denmark population.

1.3 Customer We expect that our first costumers will be firstly those that are located in our geographical influence area (Odense SV), and those who are interested in our range of products and extra services. Otherwise our target would be people whose specially appreciate the following qualities: better relation price / value, to stand out for the great quantity of attributes and accessories that we have (safety, comfort, capacity, etc.), also for the most wide guarantee and the personalized attention. We expire rigorously with our orders and we offer services extras, like for example our innovative service of let the client prove the car during one week completely for free, with the intention to make them feel more secure about his/her purchasing and to establish a trustworthy atmosphere between us in order to maintain the costumer for the future. To sum, people who appreciate our values and whose are interested in our portfolio.

1.4 Revenue Our business is focused on the sale of vehicles of the brand Seat. We acquire the cars from the factory of production of cars Seat in Odense and we deal with the sale of them. That is to say, our benefits are based on the commercial area of the automotive sector.

How would they pay? We focus on the prices depending on the value of market that has this car in the European area. We establish some discount in some concrete model, since it is the case of the Seat Leon, since we have confidence in having demand in this tourism car. The price is fixed by the market, our aim centres on acquiring more the cars as reduction sale as possible. This will centre on the quantity of cars for that we ask, all those more we sell more we will be able to buy to the factory and, therefore, major discount we will be able to obtain.

1.5 People & Passion We are two guys, Joaquím Estapé and Lluc Colomo, both from Barcelona(Spain). We have also the bachelor in Business Engineering and we have been specialized on the innovation field. We have an unconditional love for the automotive world since we were young, and finally, we feel like starting a new project on our life. On the other hand Quim's father is in charge of one of the most important Seat concessionaires of Spain, and he has also worked in it one. We both have a car of Seat brand it means that we believe and trust in they're bid. So to conclude, we could say that we have a kind of special connection with this brand that's the reason why we have chosen it.

2. Product and concept Our business consists of the sale of a service as of a few products. Nevertheless, the really important

thing for us is to provide an excellent service in our dealership. Thus, what we do is to attend to the

clients giving all the information about the product, which they are interested to orientate them inside

the different options that we can offer them. It is a question of helping to decide the client to the best

purchase that he can realize with a nice and sincere treatment.

2.1 Core product As we said before, we think that the service is a fundamental part in all our actions, even more

importantly than the own product. To be able to achieve this aim, our service of sale and after-

sales it has to be the best of the market. For this reason, we will incorporate in our business a

program of formation for all our employees in the one that treats the attention and the

treatment to the client.

2.2 Add on products Once commented our principal service, we have to speak about the products that we offer.

Our portfolio of products will be principally SEAT León, Ibiza and Exeo. Moreover, we will

incorporate hereinafter a new model of very much success since it is Seat Mii.

- SEAT León is a tourism car of segment C of five squares with front transverse engine and

front, available traction only with auto body hatchback of five doors.

- SEAT Ibiza is a tourism car of the segment B with front traction with front transverse engine

that offers in auto bodies’ hatchback as three and five doors;

- SEAT Exeo is a tourism car of the segment D with auto body Sedan. It takes front longitudinal

engine and front traction, and in addition it might have versions with traction to four wheels.

-SEAT Mii is a tourism car of the segment A that covers the hollow in the range below the Seat

Ibiza. This model has a front transverse engine and front traction.

2.3 Customer value SEAT presents a range of vehicles that offer an exciting combination between high-level

engineering and authentic pleasure. Founded it does more than 60 years; they are a dynamic

brand, with young spirit that he bets firmly for the design and seeks to create constant new

levels of quality in to graze of driving. In addition the demand overcomes the current offer,

fact that would imply a good acceptance for the costumers.

2.4 Pricing We focus on the prices depending on the value of market that has this car in the European

area. We establish some discount in some concrete model, since it is the case of the Seat Leon,

since we have confidence in having demand in this tourism car. The price is fixed by the

market, our aim centres on acquiring more the cars as reduction sale as possible. This will

centre on the quantity of cars for that we ask, all those more we sell more we will be able to

buy to the factory and, therefore, major discount we will be able to obtain. Speaking more

specifically of revenue, our contribution margin ratio is between 23% and 34%. Our gross

profit is normally € 6000 for each model of car sold.

2.5 IPR Our business is a franchise so problems on intellectual property are maintained and solved by

the same company SEAT.

2.6 Development potential As we have commented previously, the incorporation of the Seat Mii is an investment that we

are going to realize. In addition, also we are going to consider the option of incorporating

other models of the same brand in the next years as for example Seat Altea. Nevertheless, our

more important investment for the future will be to commercialize cars of the second hand,

we believe that it is a very good option of business that we must incorporate. Also we would

like to help in the design of the new versions that there will be of the models that we have but

we are not the manufacturers for doing it.

2.7 Production We acquire the cars from the factory of production of cars Seat in Odense and we deal with

the sale of them. That is to say, our benefits are just based on the commercial area of the

automotive sector. As I said at the price point, we have a deal with the factory in order that as

more cars we ask, a major discount they will be able to do us to acquire them.

3. Customer and market Open a new concessionaire of the Spanish brand Seat in Denmark, country in which the

demand of the new models is following an ascendant line in the last years, fact contrastable

with the realized market research.

3.1 Customer

We have already explained in the “idea and background” section who will expect that would

be our costumers so now we will focus this point on which different experiences we will

provide them and which costumer value would they perceive of us.

Focusing on the customer value, we have to say that SEAT presents a range of vehicles that offer

an exciting combination between high-level engineering and authentic pleasure. Founded it

does more than 60 years; they are a dynamic brand, with young spirit that he bets firmly for

the design and seeks to create constant new levels of quality in to graze of driving. In addition

the demand overcomes the current offer, fact that would imply a good acceptance for the

costumers.

We create an exceptional customer experiences during different phases of the cycle,

depending on the client and on the characteristics of the vehicle that they choose, to get

deeper into the matter we will do the following division depending on the consumer:

Responsibility and ecology (people who take care about ecological issues):

education, auto accomplishment, social justice. They get the exceptional experiences at

the moment of sale (knowing that they buy a product that contaminates less than

homonymous) and in the after-sales service (because of the knowledge that they are

contaminating less).

Authenticity and smart mobility (authentic and intelligent mobility): self-

determination, autonomy, creativity, art and culture, and prestige. They get the

experiences during the after-sales (It makes them feel special the fact of leading a car

that offers the above mentioned presentations)

Functional aesthetics and activates lifestyle (functional aesthetics and active way of

life): high Standard of living, good taste, art and culture, but also humanism, tolerance

and of opened mind. At the moment of sale ( knowing that they’re buying a product

which marks the difference) and after-sales(Leading a vehicle that marks an notable

level)

Affordability and joy of life (enjoy the life and security): life in family, safety,

modern, but also individuality, experiences and to enjoy the life. They get the

exceptional experiences in the after-sales service (because of the knowledge that they’re

driving a safety car)

High Tech - High Touch (high technology): Studies, amusement, mobility, activities

outdoors and it consumes. They get the experiences during the after-sales (because they

feel on their hands the major innovation technological and quality of driving).

In fact, the groups that more weigh have on our bandage are: Authenticity and smart

mobility (authentic and intelligent mobility) and High Tech - High Touch (high

technology). So in general we offer more exceptional customer experiences during the

after-sales process. Otherwise, we have to say that our innovation in the service off

offering them a free week for prove the car, will provide the costumers a good

perception of our pre-sales service.

3.2 Market Principally people located in Odense, city with to population of 170,327. In Denmark 7 of

every 10 persons have driving licensee; therefore 119229 are drivers. Understanding that

every 6 years it is the average into which one changes of car 19872 they might be in our first

year our possible potential clients (without considering competition market). Now if we get

deeper in the statistics and bear in mind that Seat has to compete with brands like Audi, Bmw

or Ford that have more market share, and without despising KIA, Lexus, Peugeot, Volkswagen

or Land Rover between others, we estimate that Seat presents 5 % approximately of the

market share of first hand cars in Denmark. So, approximately 994 clients we think that could

have a Seat dealer located in Odense, now taking in count that there is another concessionaire

Seat in Odense, and it may takes to himself more than 50 % of the clients in our first year for

the simple fact of being more acquaintance, we think that we can have approximately 300

annual clients (30 % of the clients of Seat in Odense).

(Note: this statistics are some estimations based on our marketing research but we couldn’t

affirm that they should adjust 100 % to the reality)

3.3 Trends The trends of the cars market in Denmark are difficult to analyse due to the great variety of

brands that exist on the above-mentioned market and the changeability of their likes. Saying

this, we know that nowadays the brands that have more sales are Audi, Bmw and Ford for this

order, later there place Seat and Citroen followed by Peugeot, Land Rover, Kia, Lexus and

Volkswagen. We know that there are more car brands on this market but we do not have

trustworthy information of his sales. Also we have witness of the increase in the last 5 years of

Seat's sales and particularly of the model Mii (new model of 2012) and Seat León, which

appear as our more fashionable models on a market as competitive as the Danish.

4. Industry The EU is the principal world producer of vehicles of engine; the car industry turns out to be

therefore fundamental for Europa's prosperity. It is a question of a gigantic employer of

skilled workforce, and key engine of knowledge and innovation. He constitutes likewise the

major investor deprived of Europe in research and development (research and development).

His contribution to the community GDP is also very significant, and his exports overcome fully

to his imports.

4.1 Industry structure and environment The industry of the car, based traditionally on the manufacturing industry, rests increasingly

on the knowledge and is nowadays the major industrial European investor in research and

development (approximately 5 % of the turnover of the sector). In benefit of the

competitiveness of the sector and of the safety and protection of the environment, it is

fundamental to promote the industrial investigation, the technological development and the

demonstration in the strategic areas (intelligent vehicles, clean vehicles, biofuels of the second

generation, batteries of hydrogen and of fuel, etc.).

This way, the Danish automotive industry is highly dependent on skills. Low technological

production can easily be moved to other countries with lower pay, therefore it is important

for the Danish companies to be innovative and focus on high technological solutions – also in a

future market. A few production clusters has been established where one of the focuses is the

automotive industry. It is the Hydro Aluminium cluster (Alucluster) in Southern Jutland,

which work with aluminium automotive parts and forms. It is an industry in progress.

Another example is Dinex on Funen that works with development of advanced filter

technology for exhaust pipes. A new actor could be Bang & Olufsen (B&O) making and/or

designing the new radios and televisions and other digital equipment in the cars of a near

future. All in all the employers need skilled workers and they also need to train them.

Increasing demands from the EU to the European car producers might be to the advantage of

the innovative Danish automotive industry.

4.2 Entry barriers In the automotive sector there are economies of scale,, that is to say, it is necessary to reach a

high level of production to amortize the costs. This provokes that to enter on the market is a

difficult task and I favour only of big companies that enter with the sufficient capital to invest

in his plants of production and to join to the economy on a large scale existing. The success

will be only for those big companies that possess the important capital and are experienced at

the sector of the car, only these companies will be able to steal market share from his

competitors. On the contrary, if the company does not possess capacity of sufficient

production his competitors will annul it of the market.

When are the distribution channels dominated directly by the current competitors, the new

competitor meets a new barrier of revenue on there having had to be provided with his own

infrastructure and distribution network, which would suppose new costs, for not mentioning

the difficulties that him the current competitors would put.

The substitute products that deserve the maximum attention are those that answer to the

same generic need or that could recover the same function for his market. The substitutive

products to that more there can resort the consumers of our market in case of wanting to

substitute the own vehicle, are the bicycles and the transport I publish.

4.3 Competitors Our company has to compete with brands as: BMW, Mercedes - Benz, Toyota, Nissan, Honda,

Volkswagen, Ford, Audi... We have to compete with successful brands which generate extra-

value to their product, with companies that offer an excellent service and which have one

very good " brand image ", also competitive and reliable in the development and the

production of vehicles and components.

In addition, also we must consider as competition other concessionaires of the same brand

SEAT, since we analyse them as rivals who are able to treat with our potential clients.

Our solution is to develop against these brands the best treatment to the client and to create

some values as capacity of renovation, respect, responsibility and sustainable development.

4.4 Competitive advantage and strategy

To be competitive we must:

- Defend the interests of the consumer, - Constant and excellent vocational training of all the

implied professionals - Improvement of the business management of the concessionaire,

standardizing the quality of the service and optimizing the personal attention - Search,

analysis and development of new opportunities of business for the concessionaire. As we

comment previously it might be the market of the second hand.

Our competitive advantage we will try to obtain is with our service in the process of sale and

after-sales. With this differentiation we will achieve that the clients identify our

concessionaire with a good service. In our company, we think that the service is a

fundamental part in all our actions, even more importantly than the own product. To be able

to achieve this aim, our service of sale and after-sales it has to be the best of the market.

5. Sales and Marketing We will reach our costumers through different channels such as promotion on mass media or in Internet web page. Otherwise, we will find our early costumers through different ways which we are going to explain on the following chapter.

5.1 Sales and distribution channels In this case, the distribution of the product in a concessionaire cannot be analysed too much,

since the same concessionaire is the distribution point of the products, in which the clients

come, choose and buy the product that they like. The only exception is Internet, every

concessionaire has his web page where one announces the concessionaire and all his

products, in this case it could be the portal www.seatodense.com where the consumers can

see all the products, personalize them and even buy them from the same web. But in the

moment to receive the car he must be the buyer who is going to the concessionaire to look for

it.

The means of advertising and the promotions that realizes the company SEAT affect us as a concessionaire directly and positively, SEAT possesses different strategies of sponsorship, one of his last strategies is based on three fields: music, football and design, by means of which they try to increase the relevancy of the brand as well as his conscience and image. SEAT tries to gain reputation-organizing events of musical type as the tour of the singer Shakiraand organizing sports events as the Europe League where they play diverse Spanish equipment’s. SEAT's new slogan they: " Technology to enjoy " (technology to enjoy), and it plays with these words to form the word "enjoyneering".

5.2 Sales activities The sales activities, which we are going to do, are extremely related with our competitive strategy, which is Porter's differentiation. This strategy is based in giving qualities to our product that makes it separate from others. In our particular case, we will try to obtain the differentiation with our service in the process of sale and after-sales. With this differentiation we will achieve that the clients identify our concessionaire with a good service. In our company, we think that the service is an essential part in all our actions, even more importantly than the own product provided in other concessionaires.

To be able to achieve this aim, our service of sale and after-sales it has to be the best of the market. To offer this service about which we are talking, there are several aspects that we would have to obtain. One of them is that all of our sellers must transmit amiability and interest for what the client is telling him, that thing that seems obvious is not very common nowadays in main car dealers. If the client sees that the salesperson is listening to him and that our seller interferes in his reason, he will feel more opened at the offers that we could do and more convinced that what we offer him is what he's looking for. Another action that we will realize is to create a comfort zone, buying machines of coffee, drinks, food and enabling a zone of the concessionaire with the intention of creating a zone for the client who has to wait. Another aspect is the waiting time; our intention is it that the zone of comfort does not have to be in use too much. Due to we want to attend to our clients with the less possible waiting time. Finally, for what it concerns to the after-sales service, we want to establish a home delivery service of withdrawal of cars that have to be repaired. We would do it service with the intention of solving a problem of meeting many people, this problem is of having to take the car to the concessionaire in order that they repair it and then the client is not able to return home.

5.3 Marketing activities First of all we have to say that all the actions that Seat Company develop, affect us a concessionaire directly and positively. -We are going to hire advertising agency to create an ad campaign about our dealer in Odense

-We are going to detain in the street with some of our products in order that the people can have a visualization of them directly.

-Web portal of our car models and with a configurator.

-Sending promotions to customers through social networks

-We will offer free tickets to FDM Sjællandsringen for the first 50 customers.

With these actions we try to call the attention to our potential clients.

5.4 Core message and positioning As we were saying before, we want to focus our strategy on differentiation in service with the intention to increase our costumer loyalty. The key success factor in a differentiation strategy is to make it either very difficult or very expensive for rivals to replicate our service. To achieve this, our company will follow the list of sales activities, which we have explained. Otherwise, we will communicate our activities and our specialties in announcements, in our web page and by means of promotions in the street between others.

6. Management and organization

6.1 Legal structure and ownership We start with a team which consists of 10 people, independently of some with more and others with less experience, they all have in common the desires of beginning this managerial adventure with a lot of force, hard work and pawn, an unconditional love and a great knowledge of the automotive world.

On the other hand, we know ourselves and we know that we have formed a great team with many possibilities to do of our idea a reality.

Our legal structure will be the following one: - 1 Managing Director: Responsible for the daily operations of our company -1 Commercial Manager: Responsible in communicating company needs. -1 Team leader: Responsible in motivating and streamlining the efforts of others. -2 Sales representatives: Who is going to represent the company and showcases. -5 Commercial seller: Responsible for direct sales of our products to customers.

6.2 Management

Managing Director: Lluc Colomo

Born in Barcelona (Catalonia) on 1991, bachelor on Business Engineering specialized on innovation field. Experience working in administration on a medical office and in an elderly residence also, in the marketing field, organizing and directing promotional events being part of the “creativeMIND” team. My skills are basically the organization of companies and the leadership of groups, on the other hand, I have knowledge of marketing and of organization of events. I love the automotive world and I'm the kind of person who puts all his illusion in all the projects which I initiate.

Commercial Manager: Joaquim Estapé

Born in Granollers (Catalonia) in 1991, licenced in Business Engineering. I have a good academic record and a good level of English, which combined with my ability to teamwork and the desire to work and learn, give me the ability to do a good job. Also, I have worked two years as a Sales person in a Seat car dealer in La Roca del Vallès (Spain). Otherwise, I am specialized in giving a good customer focus thanks to my MBA about Selling Management, and I feel like starting a new adventure in my life inside the automotive world.

Team leader: Cristina Ortiz

Born in Bilbao (Spain) on 1992, bachelor on Business Engineering. Experience working in Artcol.SA as a team leadership with the following tasks: Assisting department managers, preparing reports, budgets and assessments, contacting and foster client relationships, managing team performance and progress and coordinating, attending and leading team meetings among other tasks. On the other hand I believe that it is the moment to initiate a project in the automotive world and I feel like living new experiences in a foreign country.

6.3 Board and advisors

Also we have on board 2 Sales representatives: Josune López and Beatriz Macías, two experienced woman's on the Selling and Sales world, whose have been proposed by Cristina Ortiz, our team leader. In addition, we are looking for 5 commercial sellers.

Actually, we are now in the recruitment process and we hope to have found them before to Christmas period because the idea is to initiate the business at the beginning of January 2014. The personnel that is going to be in charge of the sale, must expire with a series of conditions. to the already assumed ones of good image and “hygiene”, it is necessary to incorporate the aptitude of the " good seller ". The client must never feel the sales man as a person whom only is interested in the sale, not, the commercial must give him an individualized treatment trying to verify what that the client needs and not what can I sell him, that's why we are having problems on finding commercial sellers, because we are very strict in that behaviour and we want to offer an excellent sales service as a part of our identity

6.4 Partnerships

We acquire our cars from the Seat production centre in Odense, our supplier is our principal partner, His obligation as a provider is to supply our cars demand during the previously established time and without mistakes or misadventures, our duty like clients will be to pay the invoices in the time that we negotiate.

6.5 Key activities At the early start-up phase we have to take care of a lot of things, but the most significant activities that we must assure are: 1. There is the whole necessary capital 2. Human resources are well-qualified and well-motivated 3. There are good links of connection by suppliers, 4. Quality of the products and appropriate location.

6.6 Key resources We have assets as the local, a main shop window entirely of crystal to maximize the entry of light, which will limit the space to expose the product, also we have computers and the whole necessary office material, we also dispose of a garage for the cars storage, we have the tests car zone...

So we only we lack details like expending machines, different adornments and some furniture like sofas for the comfort zone.

7. Action and development plan

7.1 Vision Few years since now our business will become a successful SEAT dealer by providing unique,

amazing and affordable service. We represent a dynamic brand, with young spirit that he bets

firmly for the design and seeks to create constant new levels of quality in to graze of driving.

We want to promote this image and also on social networks or the web our popularity will

grow as our turnovers. Then one of our main purpose is to amaze the customer that will come

with us in every single detail of his purchase and within the next few years we will improve

our ability to match the customer needs and to support him in making up his choice. Our

purpose is also to motivate our staff at all levels by encouraging team work spirit.

7.2 Goals From the beginning we need to find and begin a good relationship with local partners, we

need to get local in order to provide to customers unique, particular and amazing experience.

We want to reach a well-defined position in the mind of customers, our purpose is make them

aware of who we are, what we are offering and what are the benefit in choosing our products

and service; in order to do this we will accompany our offer with a focused marketing

strategy. We will try to reduce operating costs by gaining experience in the automobile

market. One main purpose is definitely to reach the break-even point as soon as possible for

each year starting to earn profits but always keeping the price affordable for the costumer.

For that reason we have thought about

7.3 Milestones & Actions Our action plan has the following steps: 1) Business plan: in this first step we will finalize our business plan and present the idea about the business, why do we want to do this business and the market research. 2) Choice of legal form: We choice the legal form (corporate, cooperative, Limited Liability Company…) and put it in practice. 3) Acquisition of economic resources: We must have the lending of the company that finances us to continue with our actions. 4) Finish the creation of the website: Here, then, we need to have completed our website with your own configurator to be present in the networks to successfully start the business.

5) Marketing and promotion: When we will be finishing the creation of the website, we will

start with a big marketing campaign to promote our new business to the customers. These

marketing campaign and promotion will endure while the business exists, because there will

be special promotions. We have to focus on attract customers and become known in Odense.

For that reason, we may advertise our dealer in cars magazines, motor news website or on the

local TV.

6) Make the business profitable: Sell as much as we can different models of products to

have the maximum benefit for us and thereby to be able to negotiate the price of the

acquisition of the cars with the production company that provides to us the products in order

to offer good prices and to attract customers.

Steps Starting Time Finishing Time Business Plan 1/12/13 20/12/13

Choice of legal form 1/12/13 20/12/13

Acquisition of economic resources

20/12/13 1/1/14

Finish the creation of the website

20/12/13 1/1/14

Marketing and promotion 1/1/14 31/12/14 Make the business

profitable 1/1/14 31/12/14

8. Risk Analysis

Strengths Weakness

-Expensive car (SEAT León) in comparison with other brands of the market, between 17.700-22.600 Euros. To be a car of average range, it has the price very similar to that of a similar car of high range. -We divide with few capacity of credit, the form of payment of this company to the beginning will not give it gives facilities.

-Some substitute products are another type of vehicles that it covers the same needs and functions, and also other cars but of different sector, doing the same function or paper to the user, that is to say covering the same need. -Due to the decrease of the revenue of them present, the people instead of changing his car and buying one newly, they repair it or buy it of the second hand. -Positioning that have other industries as the German or the Japanese. -Appearance increasingly of the second brands like for example the Dacia of the group Renault, which is extracting cars very similar to much lower prices.

Opportunities Threats

-Service of post sale, allowing the consumer to offer to him other services for the purchase of some product. -Fast and good service. -Good communication between the staff. -We are going to have our own webpage. - Good guarantee granted by the company.

-The self-propelled market and especially the segment of the importers is a business that continues having a strong demand. -Decrease of the competition in the specific environment of the concessionaire.

9. Budgets

9.1 Establishing Budget OPENING COSTS 615.569€

1. Training costs 2.000€

1.1 Training course about customer care for employees 2.000€

2. Events 660€

2.1 Free tickets to FDM Sjællandsringen for the first 50 customers 660€

3. Promotional offers 52.769€

3.1 Seat Leon Emoción Discount 32.169€

3.2 Pack of free extras in SEAT Exeo Reference 20.600€

4. Internet distribution costs 3.940€

4.1 Website 1.260€

4.1.1 Add the sale section on the net 660€

4.1.2 Hire a web designer 600€

4.2 Web portal of our car models 520€

4.3 Send promotions to customers through social networks 900€

5. Communication costs 4.500€

5.1 Promote dealer news 4.500€

5.1.1 Hire advertising agency 3.000€

5.1.2 Create ad campaign 1.500€

6. Concessionaire 62.700€

6.1 Rental of a warehouse in Odense (375m2) 21.600€

6.2 Maintenance costs of the warehouse 9.600€

6.3 Purchase of furniture and computers 31.500€

7. Staff costs 489.000€

7.1 1 Managing director 95.000€

7.2 1 Commercial Manager 65.000€

7.3 1 Team Leader 50.000€

7.4 2 Sales representative (42.000€) 84.000€

7.5 5 Commercial Seller (39.000€) 195.000€

8. Loan Spending

8.1 Loan of 2.000.000€ from Iberaval 15.000€

TOTAL 630.569€

TOTAL COSTS: 2.514.945

Model Sale price 2014

Leon Emoción 17.783€

Ibiza Style 15.063€

Leon Style 22.613€

Exeo Reference 25.283€

COSTS OF ACQUISITION OF THE CARS

Leon Emoción 33 x 11.783 = 388.839€

Ibiza Style 35 x 10.063 = 352.205€

Leon Style 34 x 16.613 = 564.842€

Exeo Reference 30 x 19.283 = 578.490€

TOTAL 1.884.376€

9.2 Operating budget SALES

PLAN 2014 January February March April May June July August September October November December TOTAL

Leon Emoción

3 4 3 4 3 1 1 2 2 3 4 3 33

Ibiza Style 2 1 4 6 4 2 2 1 1 5 2 5 35

Leon Style 2 3 5 3 6 2 0 2 2 2 2 5 34

Exeo Reference

2 2 3 6 4 0 2 0 1 4 3 3 30

REVENUE 2014

January February March April May June July August September October November December TOTAL

Leon Emoción

53.349 71.132 53.349 71.132 53.349 17.783 17.783 35.566 35.566 53.349 71.132 53.349

Ibiza Style 30.126 15.063 60.252 90.378 60.252 30.126 30.126 15.063 15.063 75.315 30.126 75.315

Leon Style

45.226 67.839 113.065 67.839 135.678 45.226 0 45.226 45.226 45.226 45.226 113.065

Exeo Reference

50.566 50.566 75.849 151.698 101.132 0 50.566 0 25.283 101.132 75.849 75.849

TOTAL 179.267 204.600 302.515 381.047 350.411 93.135 98.475 95.855 121.138 275.022 222.333 317.578 2.641.376

TOTAL REVENUE – TOTAL COSTS 2.641.376 – 2.514.945 = +126.431€

9.3 Funding We need a total investment to initiate our business of 2.500.000 €. Of our part, we put 500.000 €, so

we are going to obtain the 2.000.000 remaining ones by means of a loan from a company called

Iberaval that offers financial resources to new companies with a small interest rate. With the quantity

for that we ask, they offer us an interest rate of 1.5 %. This way, the loan will cost us 15.000€.

10. Appendices

10.1 Facts from customers About the Product

Customer: These models are very nice, but one misses probably one of the new ones, the seat

Mii. It is a small and very utilitarian car, besides his cheap price. Many people might be

interested in him.

SEAT Dealer: It is a car that is growing on the market but that does not generate too much

benefit due to his diminished price. In addition, it is focused on a very specific public. To begin

the business we do not count with it, but we must consider incorporate it in our business

hereinafter when we have a good stability on the market.

Customer: Seeing his range of products, I do not identify any model who has a good engine

with well ended. Probably they would lack a model in the range of the SEAT León or Ibiza that

it has more power with a more aggressive and sportive edition. I was thinking about the

versions FR (Formula Racing) or Cupra (Cup Racing).

SEAT Dealer: He has reason in it; we do not have any edition that is very sportive.

Nevertheless, these models are more expensive and there is no so many demand for them. We

focus on offering the models that more the people ask. Nonetheless, we do not reject to

incorporate it.

Customer: My question is if your dealer will have also for cars. It is an option that you have

not commented and certainly should be considered. Nowadays, the second hand market is

very strong also.

SEAT Dealer: It really is a great proposal. It is an issue we had not counted on him, but no

doubt we will start thinking about it. Having the second-hand market would be a plus for our

business.

About Positioning & Price Level

Customer: I believe that the people get confused to say too much money in a Seat, I mean, people prefer spending the double in an Audi that alone takes four hoops and with nothing of extras. -The seat give many problems, it is much better buy an second-hand Audi for the same price, than a car which is going to hung you when less you wait for it. -Relation quality-price and basing on the engine and the reliability of the brand I believe that the price in general is very reasonable. -Exeo: in order that this car walks one needs 143 cv and this it spends 6,9 liters and costs 25.000 Euros, one a bit expensive for a seat, but the car is very correct. SEAT Dealer: We have received many relating feedbacks at the cost of the product, in fact, that served us to generate a great debate on the price of our cars in offer. These are alone some comments that show the discrepancies in the price on the part of some potential consumers. Personally, we think that the cars answer perfectly to the price that we raise and are prices competent on the market. The cars "León emocion " and " Exeo reference " are the most polemic, taking in count relation between quality-price according to our target, for what we will consider to do in a future a reduction in the price of the Exeo of approximately 290 € on the 2nd year (plus the offer of free extras that we already had) and we are not valuing if to do in the " León emotion " but we have already a reduction in price, so at the moment does not seem to be feasible. Before receiving these feedbacks, already we had anticipated that these cars might bring controversy for that reason we offer a packaging of free extras in the Exeo and a discount in the León of 974.81 €, otherwise we need to take in count that in our first year of business we couldn’t be able to succeed with lots of reductions in the sales price.

About the Price model

Customer: I see that there is a discount in the price of the SEAT Leon, nevertheless, if someone is not interested in this model, it is possible to acquire also a discount for other models? If it is not like that, there will be promotions hereinafter? I think it is an important doubt for all the clients.

SEAT Dealer: We are going to have different offers during the year, have to decide if every month or every quarter. Nevertheless, if someone is not interested by the offer that exists in this moment, it will not be possible apply the same one to him for other models. For it, it should hope that we were extracting a promotion hereinafter that could satisfy him. Certainly, we do not go away to praising only in the same model to promote the same offer forever, our promotions will change.

10.2 Facts from partners About the Customer Relation

Partner: Though your dedication is focused towards the service, do not forget that to be able

to offer the service before the clients must obtain. For this reason, I believe that it is

fundamental to have a relation with the client already from out. That is to say, about

establishing the concessionaire in a good position and in good eyes of the persons with a

strong and good advertising. This way so, the relation between your business and the

potential clients already starts connecting before you offer them the service.

SEAT Dealer: In agreement with our expert, we must make a change in this point and focus

our relation with the client from out. This way so, we can throw advertising campaigns by

means of announcements to call the attention. Afterwards, we can also detain in the street

with some of our products in order that the people can have a visualization of them without

the need of going to the dealer expressly.

About Channels

Partner: Regarding the website, I agree that it should create one for your dealership. Nevertheless, the approach to the sale would reject it. Treating itself about a product of a lot of money, the option to buy for Internet is practically invalid. One feels surer if it does it in person. This way so, the web page should center in having a very good configurator since it is the motive for which the people more visit a page of a concessionaire. The advertising on all your products also must be present. SEAT Dealer: The option to personalize our cars already had been thought by us for our page. Even and this way, we will reject the option of sale like us our expert recommends and we will dedicate more force to the configurator. For what it does to the advertising, we will increase the announcements of our products.

10.3 Sales Plan

SALES PLAN 2015 2016 2017 2018

Leon Emoción 35 33 38 36

Ibiza Style 40 42 39 40

Leon Style 34 36 37 38

Exeo Reference 28 30 31 30

Model Sale price 2015

Leon Emoción 18.783€

Ibiza Style 15.063€

Leon Style 22.613€

Exeo Reference 26.283€

Model Sale price 2016

Leon Emoción 18.783€

Ibiza Style 16.063€

Leon Style 23.613€

Exeo Reference 26.283€

Model Sale price 2017

Leon Emoción 18.783€

Ibiza Style 15.063€

Leon Style 23.613€

Exeo Reference 26.283€

Model Sale price 2018

Leon Emoción 17.783€

Ibiza Style 16.063€

Leon Style 24.613€

Exeo Reference 27.283€

REVENUE 2015 2016 2017 2018

Leon Emoción 657.405 619.839 713.754 640.188

Ibiza Style 602.520 674.646 587.457 642.520

Leon Style 768.842 850.068 873.681 935.294

Exeo Reference 735.924 788.490 814.773 818.490

TOTAL 2.764.691 2.933.043 2.989.665 3.036.492

10.4 Bibliography http://www.seat.es/content/es/brand/es.html

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concession-business-entrepre-0

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um=cpc&utm_campaign=Automotive&utm_adgroup=Automotive&gclid=CPz9iuKaprsCFUiN3goduDE

ARw

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models

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abastecer-l/

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An-Automotive-Dealer.htm

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marketing-ideas-get-your-customers-to-promote-you.aspx

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http://en.wikipedia.org/wiki/Automotive_industry

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http://www.businessknowhow.com/marketing/top8mark.htm