In the world today, cars have become one of the basic commodities that people cannot live without. This means that many people across the globe have increased their desires and likelihood to buy cars for themselves and their families, meaning that the car business has flourished across the world. Not every country manufactures car, but the most commonly countries that do manufacture sell them to other countries. Japan distributes both new and used cars to any willing country, and Tanzania is one of the trusted dealers that import them to sell to Tanzanian people as well as other willing buyers from their neighboring countries such as Mozambique, Malawi, Zambia and Zimbabwe. To make the car business possible, a company such as Global Vehicles Tanzania Ltd imports new and quality used Japanese cars and then holds auctions to the highest bidder and willing buyers throughout Africa.
The cost of advertising campaign
The cost of advertising will depend on the advertising media to be used. It would be preferable to use the cheaper means of advertising but convenient, to reach as many people as possible, not only in Tanzania but across Africa. Moving billboards for instance will be the best option (Powers 10), since they are determined to cut the advertising cost of the small and new business, and at the same time reaching to as many clients as possible. Moving billboards charges according to the duration of advertisement, thereby making it possible for companies to chose their convenient time for advertisement according to the size of their pockets. For instance, a company will be charged Sh$50 on advertising a van for 30 minutes.
Advertising media
As the world has been transformed from analogue to digital, many people have also been digitalized and everything they do is digital. In the same note, many people have opted to use internet, not only for socialization but also for business where they sell and buy all they want. Therefore, internet would be one of the advertising media in Tanzania, where the company certified to import new and used Japanese cars might advertise their new arrivals in the internet (Mercer 250). They can use social media such as Facebook and Twitter, as well as other websites such as kupatana.com that is very common in Tanzania. They can also post their new arrivals on olx.com, where they can meet willing buyers and transact online before delivery. Other websites such as http://www.zoomtanzania.com/ and https://www.usedcarstz.com/ are also common in Tanzania, and most of the willing buyers in Tanzania and out of Tanzania may opt to make their favorite choice for the car, and then make a plan of purchasing. Billboards can also be used to reach as many people as possible, together with television, newspapers as well as radios. Most importantly, after establishing the company to import the Japanese cars, it would be advisable to organize a road show that will make the company known by many people, thereby attracting many people.
How many people each medium will attract
As stated, the company will target most of the internet users for their advertisement because they will use most of the websites to reach to as many buyers as possible. In 2000, World Bank estimated the number of internet users in Tanzania to be 4.4% of the total population, while that of Mozambique was 5.4% of the total population, as illustrated below;
Since then, the number of internet users has increased significantly, and in 2016, internet live stats registered that 5.4% of people in Tanzania use internet as illustrated below;
This means that the number of internet users has also increased in other targeted countries, meaning that many people have access to internet and will easily access the Japanese cars in Tanzania. Besides, a good number of social media users will have access to the best deals of Japanese cars in Tanzania as shown in the table below;
Market spending power
Tanzania has emerged as one of the top used car exporters due to its ability to give pleasant and good atmosphere for foreign businesses. Tanzania is also associated with low duties when it comes to importing vehicles, because their importing regulations are simple, thereby making it one of the Japanese target to sell vehicles in African countries. The market of selling vehicles in Tanzania is growing, thanks to the growing incomes as well as improved infrastructure. Tanzanian market requires economical and resistant transport solution which is easily offered by Japan manufactured cars. Japan offers used vehicles at affordable prices, flexibility, good economical returns and quality standard, meaning that more buyers are generally attracted, not only from Tanzania but also in neighboring countries. In addition, Tanzania is one of the growing markets across the globe, meaning that their business opportunities are awesome. Therefore, the marketplace in Tanzania is vast and dynamic, and this means that it allows many buyers to get their favorite vehicles at a pocket friendly price, as well as buying the kind of car fit for the amount of money they have. This has attracted many buyers from Tanzania, as well as from neighboring African countries such as Mozambique, Zambia, Malawi as well as Zimbabwe.
The overall result of more vehicle buyers in Tanzania clearly shows that the market spending power is very large because there are so many people who happen to be the potential buyers of especially used cars from Japan. Besides, the fact that Japan will issue the car with the best terms as possible will increase the buying and selling capacity of Tanzanian business, because they will have the desire to make more money out of vehicle business. By doing so, they will use the most convenient advertising and transportation channels to ensure that many people have the ideas of the new vehicle arrivals in Tanzania, as well as ensuring that the cars are there in the market when needed. This will increase the purchasing power, and the market spending power will definitely increase.
Local laws regarding transfer of ownership
Vehicles are very sensitive and they require ownership (Ong 240) or else, legal action might be taken against anyone that holds a vehicle without ownership. There are legal ways of transferring vehicle ownership and is different from one country to another. However, laws of transferring vehicle ownership are similar and states that the change of ownership must be registered upon selling a vehicle, or trading it with another vehicle. The change of ownership is registered at the local motor taxation office and one must have vehicle registration certificate. Other documents of great important during the transfer of ownership of vehicles include (Hensher 5);
The original motor vehicle registration book
Central vehicle registry form
Both the buyer and the seller must present their Certified copies of national registration certificates
Both the buyer and the seller must present their proof of residence, either the utility bill or electricity and water bill
Both the buyer and the seller must sign an agreement with details concerning their full names and their identity numbers, all the details of the vehicle sold (model, engine, chassis number and the year of manufacture), and the full price in form of an invoice telegraphic transfer or receipts.
All these local laws must be followed, and because the car business in Tanzania will be auction, the following will of great consideration;
Auction invoice
Authority from legal owner of the vehicle
Vehicle registration book
It would also be recommendable to remember that since vehicles are used by unspecified people, they are only recognized after being inspected and registered under the following laws;
The Road Traffic Act No. 30 of 1973
Motor Vehicles (Tax on Registration and Transfer) Act 1972
Traffic (Foreign Vehicles) Rules 1973
Road Traffic (Motor Vehicles Registration) (Amendment) Regulations, 2001
The cost of the project
The starting capital will be expected to be very high, given that the business must buy all the models of vehicles so as to satisfy a wide range of customers if not all. Besides, there will be the shipping cost and the tax to the government, as well as the license. This will be expensive at first, but once the business booms, it will give back as profit.
Auctioning procedure (Kagel and Dan 50)
The auctioning procedure follows some easy steps that must be followed for the auction to be termed as a success
Step 1: Entering the auction and pointing the car of your choice
A person is allowed to visit the auctioning website where they can make a choice of their favorite car, after which, the important specifications of the vehicle are sent, together with the customer information.
Step 2: Sending a deposit
For one to start bidding at the auction, he or she must send a deposit through western union or telegraphic transfer, and then send a copy of the deposit for record keeping. It is wise to note that deposit is refundable if the customer does not get the car they wanted, but a standard fee is deducted.
Step 3: Shipping the vehicle
This is normally the final step in auction. After the vehicle has been secured, the first available shipping vessel to the destination of the customer is chosen. Once the vessel leaves Japan important documents such as invoice and de-registration sheet are sent to the customer via email.
Financing the business
At first, the business can be financed by loans from banks, the government or any non-governmental organization at an interest. Once the first stock has been ordered, the business cam finance itself by selling the vehicles at a higher price than the buying price, and the extra cost will be termed as profit. The profit will be used to purchase more vehicles, meaning that the business will be in a position of financing itself, and with time, it will register even more profit.
Works Cited
Hensher, David A. Dimensions of Automobile Demand: a Longitudinal Study of Household Automobile Ownership and Use. Elsevier, 2013.
Internet live stats: Tanzania Internet Users. Retrieved from http://www.internetlivestats.com/internet-users/tanzania/
Kagel, John H., and Dan Levin. Bidding in Common-value Auctions: A Survey of Experimental Research. Common value auctions and the winner’s curse 1 (2002): 1-84.
Mercer, Claire. Telecentres and Transformations: Modernizing Tanzania through the Internet. African Affairs 105.419 (2006): 243-264.
Ong, Paul M. Car Ownership and Welfare‐to‐work. Journal of Policy Analysis and Management 21.2 (2002): 239-252.
Powers, Keith. System and Method to Increase the Efficiency of Outdoor Advertising. U.S. Patent Application No. 09/767,618.
Starts monkey. Retrieved from https://www.statsmonkey.com/table/21481-tanzania-mobile-social-media-usage-statistics-2015.php
