HOBBY CAR

MALAYSIA. LLC
2015 NEW BUSINESS VENTURE COMPETITION
PRESENTERS: WILSON GOH, YUFENG ZHUO, WENFEI KOU

PREVIEW

Wilson Goh
Introduction and
Marketing Analysis

Yufeng Zhuo
Management
Analysis

Wenfei Kou
Strategic
Marketing Planning
and Financial
Highlights

WHO WE ARE
Company Name: Hobby Car Malaysia, LLC
Founded: June 15, 2014 in Malaysia
Founder: Wilson Goh
Investor: Yufeng Zhuo, Wenfei Kou, Max Arbury
Location: Malaysia Jalan Tun Razak, Kuala Lumpur.
America Marquette, MI.

WHERE IS MALAYSIA

Source: https://www.maps.com/ref_map.aspx?pid=12155

WHAT WE DO
Mission
Hobby Car Malaysia (HCM) provides an exclusive variety of
vintage American automobiles and classic muscle
automobiles. Dedicated to customer service and membership
exclusivity, HCM provides its patrons respectful and prompt
service with a dedication of the highest quality of customer
satisfaction and excellent driving experience.

We exist to create an exclusive experience where passion and

hobby come together

PRODUCT AND SERVICE

Dealership

Classic Car Search

Car Rental Service

Events
Photo shoots
Exclusive Club Membership

PROCEDURES
SUMMARY

Identification documents
PUSKAPOM inspection report
Customs Form K1
The Approved Permit for the vehicle
A completed JK69 Customs Clearance form
Tax

WHY DO THIS
Kuala Lumpur
Population: 1.59 million
GDP: Average annual growth rate - 5.9%
Financial gap: Income: $2613/M on average;
$1790/M median
$239/M for poor VS. over $24900/M for rich

Highest Gini ratio in Asia 0.44

WHY DO THIS
90's Malaysian Income distribution

High-income; 10%

Poor and Middle-income; 90%

Current Malaysian Income distribution

High-income; 20%

Poor and Middle-income; 80%

WHY DO THIS
Makes

Sale Growth Rate

06-12

AUDI

140%

BMW

87%

CHEVROLET

293%

FORD

1785%

LEXUS

705%

MERCEDES BENZ
MINI
PORSCHE

663%
665%
657%

VOLKSWAGEN
VOLVO

1643%
383%

WHY DO THIS
Social Satisfaction: Vehicle marks class position
even more than home ownership.
Price
Malaysia's Car
Sales by Model
TOYOTA CAMRY
HONDA CIVIC
VOLKSWAGEN
GOLF
MERCEDES-BENZ
C-CLASS
BMW 3-SERIES

Price in Malaysia

Price in USD

$41,308

$22,970

$30,293

$18,490

$44,051

$17,995

$64,990

$38,400

$57,803

$32,950

S-W-O-T
STRENGTH

Market test drive

Exclusive service
Malaysian government approval
Wide connection to target market
Strong sales force
First-mover
Additional value from inventory

S-W-O-T
WEAKNESS

Building experience
Capital intensive
Growing marketing presence
Establishing reliable relationship with
American supplier and transportation
firm

S-W-O-T
OPPORTUNITY
New business relationship international
strategy
Create a trend
Sales of luxury cars keep growing
Population in target market keeps growing
Wealthy people need a new toy

S-W-O-T
THREAT

Malaysian government importing policy

Customer acceptance rate
Fluctuating currency exchange rate
High import tax

PORTERS FIVE FACTORS

Medium
Supplier
power

Low
Threat of
new entry

Low
Competitive
rivalry

Medium
Threat of
Substitution

Low
Buyer
power

OUR TEAM

OUR TEAM
-COMPANY STRUCTURE

Malaysia
Division
Hobby Car
Malaysia

America
Division
Club
Division

OUR TEAM
-MANAGEMENT STRUCTURE
CEO
Wilson Goh

American
Division

Inventory
Director-Max
Arbury
Marketing
Director - Yufeng
Zhuo(Tony)

Finance Director
- Wenfei Kou

Malaysian
Division

Club Division
under
construction)

Sales Director Kok Chuan Goh

Marketing
Director-Boon
Khim Yap

STRATEGIC
MARKETING PLAN

TARGET MARKET
Who:
Target customers are people with incredibly strong
purchasing power a small portion of the top 20%
income bracket.
Where: Kuala Lumpur
Kuala Lumpur will remain the base location while
future branches will be established in other cities along
the west coast.

TEST DRIVE
1929
MercedesBenz Gazelle
Status: Sold
Bought:
$13,000
Sold:
$50,000

TEST DRIVE
1965 Ford
Mustang
Status:
Pending
Bought:
$18,000
Will be sold
$70,000

TEST DRIVE
1963 Buick
Riviera
Status:
Available

POSITIONING STRATEGY
Goal: create the exclusiveness of our brand
image.
Core competency: customer intimacy.
Products: as middle-to-high end imported
automobiles for high income and high social
status people.

PROMOTION STRATEGY
-MEDIA
Goal: to create a noble image for the company and also for the
vintage and classic muscle car per se.
1. Ratio
2.
3.
4.
5.
6.
7.

Product placement
Signage
Print publication
Mobile application
Website
Social media

PUDU UPTOWN

PROMOTION STRATEGY
-SALES AND PUBLIC RELATION
Sales promotion
Consumer promotion
Business promotion
Sales force promotion
Public relations
Annual yearbook

INTERNATIONAL STRATEGY
HCM and BBM Mining Development Group
A multinational company that has large investment
in other endeavors in China.
BBM recently hosted a few car events and
competitions in Guangzhou, China.
January 2015, had a meeting with the CEO (Mr.
Sony Lam) and discussed possibilities of
partnership in future.

FUTURE MARKETING PLAN

NOW

FUTURE
Awareness
Awareness

Marketing
Strategy

Interest
Interest

Marketing
Strategy

Consideration
Consideration
Intent
Intent
Evaluation
Evaluation

Sales
Strategy

Purc
Purc
hase
hase

Sales
Strategy

IMPLEMENTATION TIMELINE
2015

2016

2017

Test drive
market;

Implement more
strategies

More club
events.

Implement
strategy

Expand and
reinforce
connections

International
opportunity.

Expand
connections
Collect and
analyze data
Ship products

First club
activity kickstart
Stabilize
relationship with
supplier and
transportation
firm

Might develop
mobile
application.

FINANCIAL HIGHLIGHTS

FIRST CAR SOLD!

Gross
Margin

Brand COGS

Price

Merce
desBenz

$50,000 285%

$13,000

Tax
155%

Shipping
Insurance
expense

Operat
Sales
ion
Operation
Commission expen Income
ses

$20,150

$2,600

$1,000

$700

$750

$12,312

PRO-FORMA INCOME STATEMENT

OF PESSIMISTIC SITUATION

PROFITABILITY RATIO
Key
Financial
Ratios
Profitabilit
y ratio

EBITA
Margin
27.96%

ROI
7.52%

Dupont Analysis
Profit Margin
Asset turnover
Equity Multiplier
ROE

ROA
19.38%

ROE
23.40%

26%
74%
1.21
23.40%

LIQUIDITY RATIOS

Key Financial
Ratios
Liquidity Ratios

Current ratio
3.85

Quick Ratio
1.45

LEVERAGE RATIOS

Key Financial
Ratios
Leverage Ratios

Debt-to-assets ratio Debt-to-equity ratio

0.172

0.208

Q/A