Kieran's Sparkling Clean Car Wash - Example Market Research
This market research report aims to provide valuable insights into the car wash industry and help develop a successful car wash business. This report covers the area's demographics, competition, and market demand.
Demographics
The target area for the car wash business is in the downtown area of Los Angeles, next to the new mall on Wilshire Boulevard. Many people travel south down Wilshire Boulevard to shop after work and on weekends. We predict they will stop at a car wash if it's near where they are already headed. According to the United States Census Bureau database, the population of the target area is approximately 50,000 people, with an average household income of $120,000 per year. Most of the population falls between the ages of 25 and 54, with a slightly higher number of males than females. The area is a mix of young professionals and families.
Competition
There are currently three car wash businesses within a 5-mile radius of the target area. The businesses offer various services, including full-service car washing, detailing, and waxing. In addition, all three businesses have a robust online presence, with positive reviews on Google and Yelp.
Observation
We visited each car wash business in person to observe their operations. While they are all full-service car washes, they use different equipment and suppliers. Additionally, these car washes of a similar size also had significant discrepancies in the number of employees. For example, one car wash had twenty employees since they focus on after-washing hand drying, while another had five employees and was marketing their equipment and tooling. The car wash with 20 employees had a significantly higher volume of customers on Saturday afternoon when we visited the location.
Customer Insights
We surveyed 100 customers who had recently used the services of the existing car wash businesses in the target area. The survey showed that 60% of the customers visit a car wash at least once a month, with the remaining 40% visiting less frequently. The most popular service was a full-service car wash, followed by detailing and waxing services. Customers would pay extra for high-quality services and convenience, such as a drive-through car wash.
Supplier Insights
We contacted several suppliers in the car wash industry for their insights on the market in the target area. They indicated that the market was growing, and there was a demand for high-quality car wash services. In addition, they suggested pricing strategies, such as offering different packages for different customer needs.
Conclusion
Based on the insights gained from the market research, the car wash business should aim to provide high-quality services that cater to the needs of the target customers in the area. This could include a full-service car wash with detailing and waxing services, as these were the most popular services among customers. Additionally, the business should focus on offering exceptional customer service, a critical strength of one of the existing car wash businesses in the area. The business should also consider offering convenient services, such as a drive-through car wash, as customers are willing to pay extra for convenience. Finally, the pricing strategy should differentiate the business from competitors and offers competitive pricing for customers.
