Brief Case Background
Walter Sullivan, the founder of Sullivan Ford Auto World, had died four weeks earlier at the age of 56 of a sudden heart attack. Since no one Is handling the company, the bank had asked Carol Sullivan-Diaz to temporarily handle the position of general manager of the dealership.
Carol Sullivan-Diaz, aged 28 was the eldest of Walter and Carmen Sullivan’s three daughter,
a health care manager by profession took over the business and was surprised to found out that the family business is in financial trouble based on current financial performance and market outlook.
In addition, CSAT results from car buyers show that the company has problems with their service quality.
30-day Purchasers CSAT Survey Results
– Auto world achieved better than average ratings
– 90% of customers said that Auto world informed them of what to do if they needed service
– Less than 33% of respondents said that they have been introduced to someone in the service department (which is a sales protocol)
90-day Purchasers CSAT Survey Results
– Overall satisfaction with Auto World Service Department was consistently low placing it in the bottom 25% of all Ford dealers
– More than 50% of respondents said they would rather use another Ford dealer for future service
– Major Concerns:
* Promptness of writing up orders
* Convenience of service hours
* Appearance of the Service Department
* Interpersonal variables such as attitude of personnel, politeness, understanding of customer problems and explanation of work performed.
Name of Company: “Sullivan Ford Auto World”
Category of Company: Automobile
Tagline: “Let’s Make A Deal”
Become one of the best known in the metropolitan area
How did the company started?
– It started only as a small Ford dealership. But in 1981, Walter Sullivan had renamed it into “Sullivan Auto World” and had become one of the best known in the metropolitan area. In 1996, he had borrowed heavily to purchase the current site at a major sub-urban highway intersection. After moving the business to a new location, Sullivan had retained the service and repair bays but repair the showroom into an attractive modern facility. After moving “Sullivan Auto World” was changed into “Sullivan Ford Auto World”. After this the Sullivan Ford Auto World started to became known and famous.
Where is the company established?
– At the corner of Wilson Avenue and Route 78
When is the company established?
– Established in 1981
Who established the company?
– Sullivan Auto World was established by “Walter Sullivan”
7 Marketing Mix
The company also consists of 2 departments :
Sales(Front-end) & Service (Back-end) Department
Front-End: Car Sales
Sullivan Ford Auto World sells brand new Ford vehicles and pre-owned or traded vehicles that they refurbish in the service department. Ford is a known brand for its quality. Refurbished vehicles are also of good quality given the expertise of Auto World mechanics and service personnel. Customers have to be physically present in order for the salesperson to accommodate customer’s questions about automobiles and to make a profit in their company.(People Processing)
Back-end: Service Department
The Service Department offers servicing for cars that broke-down and/or need parts replacement (Possession Processing). Here customers doesn’t need to be present, and can come back when their car is already fix at a given day or time to them.
* Place and Time
Sullivan Ford Auto World have the advantage when it comes to the place or location of the business. It’s located in a suburban highway intersection , in an area of the city where housing development are constructed. The location gives Auto’s World visibility and accessibility to 2 target market, motorists and residents.
When it comes to time, they are using the normal operating hours that is the same with the servicing of the vehicle that is inconvenience in the part of the consumer. Another factor is the work order process is slow that it causes temporal risks to consumers.
Distribution of Service:
Core Service: Car Dealership
Supplementary Service: Vehicle Servicing
When it comes to price, there Is no definite amount that is stated in the case. But is indicated that Sullivan Fords Auto World has low margins for selling brand new vehicles. It was even stated that Walter Sullivan, the former owner of the company, was known to be known in car sales of emphasizing promotions, discounts and deals to consumers that is being used to attract many customers to maintain volume.
The company’s pricing is to lower the price to stimulate demand or attract buyers. The only disadvantage is that consumers might perceive that offering such lower price and discounts could mean poor quality of service to consumers.
The pricing strategy of Sullivan’s Auto World is penetration and target pricing.
In the case, it is stated that the former owner. Walter Sullivan is very known for offering promotion, discounts and deals to its consumers. He even was shown in television and radio
commercial, and known to be a consummate showman and entrepreneur. Most of all is practicing public relation, which is active in community affairs. These may be one of the reasons why financial problems were not really experienced by the former owner.
But the only thing that Walter Sullivan had not promoted is the service department, they have focused too much on sales contribution of sales.
Now that Walter Sullivan had died, there is no promotion stated in the case. That would be one of the reason of the financial downturn of the company. The company should restore again the promotions done by the former owner and add promotion the service department of the company.
Writing of Service Orders
Process for service writing is out of date and is inconvenient to customers. Bottlenecks and disturbances are not properly managed. Customers relay the problems on their vehicles to the service writers. This gives high probability of incorrect diagnostics, solutions offered and estimates when customers have low technical know-how. This may be the reason why rework is a common occurrence which frustrates customers even more.
Salespeople do not adhere to the sales process standard procedure. Some sales people are hesitant in referring the Auto World service center because they know customers may get turned off and risk losing the sale. Referral of the service center is part of the sales protocol and should be firmly implemented.
* PHYSICAL ENVIRONMENT OR SERVICESCAPE
As described and stated in the case, the front-end or the sales area, showroom and office, which is the most visible area to consumers are modern and well-maintained, it even have a high ceiling that can really attract and amazed people.
But when it comes to the back-end area or the service department are, the invisible area consumers are the exact opposite. Having the looks that is is not well maintained, is one of the main reason why sales person doesn’t follow the company’s protocol of introducing this part of the company to the consumer.
Car Sales or the Front end team is composed of the Sales Manager, 7 Sales People, the
Office Manager & the Secretary.
The Service Department is composed of the Service Manager, Parts Supervisor, 9 Mechanics
and 2 service writers.
Survey results show that customers are not happy with the quality of service provided by
the Service Department. Lowlights of the CSAT survey results are: promptness of writing
up orders; convenience of service hours; physical appearance of the service department
personnel; their politeness and way of understanding customer problems and
communicating work performed. Service writers are demotivated and have high
absenteeism and turnover rate due to high level of stress of the job.
The service department is not operating at full capacity due to high stress in work and the servicescape of the back-end area is also the cause.
In addition, the service personnel where not being able to work productively and efficiently, that lead them to do a lot of rework due to incorrect diagnosis. On the other hand, service writers are fully utilized due to the long and manual process of writing service that contribute to longer queues to customers making them to have a negative disconfirmation in the service of the company
Company Personnel are inefficient and unproductive In performing their work in the company.
Type of Industry: Automotive Industry
Specifically: Selling of Automobiles to Consumer and Producing Services or Car Dealership
Competitor : Bill Froelich
One of their competitor is Bill Froelich, owner of another nearby dealership, who had offered to buy Auto World for a price that represented a fair valuation of the net assets. Froelich was eager to develop a network of dealerships in order to achieve the economies of scale, which was the reason behind his interest in buying Sullivan Auto World’s Company.
Froelich price on new cars were very competitive, and his nearest dealership clustered several francishes (Ford, Lincoln, Mercury, Volvo and Jaguar) on a single large property.
– Average sales of 1,100 cars a year are being sold by the company (New and Used cars)
Posted Revenues totaled :
$26.6 M – new & used sales (from last year’s $30.5 M)
$2.8 M – service & parts sales (from last year’s $ 3.6 M)
– Margins on car sales are low (5.5% of sales revenue & 25% for service)
– Auto World’s financial situation had been deteriorating for the past 18 months and running at a loss for the past 6 months.
– Past 12 months’ financials show that gross sales figures are not enough to cover fixed expenses
– Margins had been squeezed by promotions and other marketing efforts.
– Due to rising fuel prices, industry and in-house forecasts for future sales were discouraging.
– Trend is shifting towards vehicle service transactions.
As stated in the case, employees are demotivated and have high absenteeism and turnover rate due to high level of stress of the job. Old work-process, the servicescape of the service environment and the lack of employee numbers compared to the job work they have to do are the reasons of their stress. Customers with attitudes is another one that really affect their work performance.
One of their competitor is Bill Froelich, owner of another nearby dealership, who had offered to buy Auto World for a price that represented a fair valuation of the net assets.
Froelich price on new cars were very competitive, and his nearest dealership clustered several francishes (Ford, Lincoln, Mercury, Volvo and Jaguar) on a single large property.
When it comes to advantage, Sullivan’s Ford Auto World has it. Since first, it is already known in the metropolitan area of having in its core product, Ford of having good quality. Refurbished vehicles are also of good quality given the expertise of Auto World mechanics and service personnel. They have the advantage but Sullivan’s Ford Auto World must solve its problem quickly as much as possible specially the service that customers are getting. Make use of their advantage, and always be observative when it comes to their competitor. If possible, make the price in Sullivan Ford’s Auto World to be competitive to or be more competitive than Froelich offering.
If they would not be able to perform good service and the problem keeps going.
Froelich can withstand them and be the buyer’s choice when it comes to car dealership.
Customers are not happy with the quality of service provided by the Service Department and said in a 90 Day Purchase CSAT Results of Survey that they would use another Ford dealer for future service.
Lowlights of the CSAT survey results are:
* promptness of writing up orders
* convenience of service hours
* physical appearance of the service department
* When it comes to the interpersonal variables of personnel, their politeness and way of understanding customer problems and communicating work performed.
Dissatisfaction of customers was also a result of longer waiting hours and poor accommodation of personnel making their attitude to be sometimes abusive, unforgiving and rude.
Another thing that Sullivan’s Auto World should make use of since their company’s financial status and their service offerings to their customer now is poor to consumer’s opinion and experience.
Media can be use to promote positive things to an organization but can also be a hindrance to them. In here, Sullivan’s Auto World should promote positive things about their company that can reduce the negative impact of their service to their customers.
No promotions were being said in a case after Walter Sullivan had died. Promotions, discounts, and deals can be used in order to maintain volume. Also Carol Sullivan-Diaz can do what his father had done years ago, where their company is being promoted in radio and television commercials. Not only that his father is active in community affairs.
There are minimal promotion activities for the service department. It seems that management has overlooked the shift of sales contribution from car sales to service. They should also launch promotional activities for the service department to help drive service sales up – since the service department is not operating at capacity.
Lack of promotion can also affect the company. When consumers know, that the company is practicing good will or it is employing Public relation. It can change the negative perception of a customer and it indicates that the company is also concerned to its environment and to its people and not only in making profit.
No supplier was said in the case since the company itself is a dealer who specialize in producing parts. But I can suggest that they can get a dealer that offers low price so that when they became out of stock of parts, it would be easier for them to get a part It is advisable that they should get a close supplier relationship to make Sullivan’s Auto World be more competitive,
and can have a chance of offering parts at a price that is affordable for consumers and to avoid price increase that can affect consumer’s decision making and the company sales. Also, having a close supplier relationship would assure that the company is producing secure quality products.
I. Problem Statement:
Should Carol Sullivan-Diaz sell Sullivan Ford Auto World to prevent future losses or try to turn it around? If she chose the latter, what changes & improvements should she implement to improve the service quality or performance in Auto World?
II. Statement of the Objectives:
* Increase sales volume and selling gross
* Increase convenience in part of the costumers
* Improve service department performance
* Develop, increase and maintain motivation and confidence of employees in performing their job
* Develop good management in the company
* Improve and develop knowledge and soft skills to employees
* Improve and develop interpersonal communication
* Make use of marketing promotions to increase consumer awareness and preferences
* Improve the servicescape of service department
* Improve and develop work ethics
* Initiate, develop and enhance trust-based customers relationship
* Innovate work-order process
* Ensure customer satisfaction
III. SWOT ANALYSIS
* Strong brand equity.
> This is the advantage of Sullivan’s Auto World especially to their customer and most specifically to their competitors.
> They are already an established car dealership company and had became one of the best known in the metropolitan or in their location. The former owner, who is Walter Sullivan had been known a well-known salesman and entrepreneur, appearing in his own radio and television commercials and had been active in community affairs.
* Known core product
> The company is known to be selling and producing a product “Ford” that is best known for their customer to be a well-established quality car brand.
* Servicescape of Front-End Office
> The nice façade and showroom will also attract a lot of possible customers.
> Vast display of cars and truck in front of the showroom
> High-ceiling in the showroom
* Location advantage
> Its location on the intersection of Wilson Ave and Route 78 suggests a prime location for a car dealership.
> Can also be easily seen because of huge rotating sign at the corner of Wilson avenue
* Carol Sullivan’s experience and expertise
> Since being a health care manager’s responsibility has a lot of similarities to being a car dealership. She can make use of those knowledge in improving the performance of Sullivan Ford’s Auto World personnel and company. WEAKNESS
* Servicescape of the back-end office or service department
> It is not well maintained and turns off customers. The physical appearance which is a cramped room with peeling paint can affect not only the impression and emotions of customers but also the behavior of the employees. This is one of the reason of lack of motivation, customer sensitivity and high employee turnover,
* Front and office employees tend not to follow the protocol of referring the company’s vehicle servicing department or back-end office to consumers.
> This became the cause for customers to prefer other Ford dealer and dissatisfaction.
> Knowing the services and seeing the services that company offer can give the consumers an idea if this company can be trusted or not and if company’s services can help them in their car problems.
* Poor management of customer complaints, customer concerns
* Poor customer result survey result for the back-office or service department
* Longer waiting queue in work order process
* Lack of employee’s knowledge, poor soft skill, and poor work ethics
* Lack of knowledge and incompetent service writers
* Inefficiency of customer’s performance
* Company is more focused on making sales rather than on gaining the trust and making customers happy
* Make use of Carol Sullivan experience in health service management. Health services are very high contact and her expertise will be a huge help in turning around the quality of service of Sullivan Ford Auto World
* Improvement of back-end or service department
* Bigger and cleaner front-end place
* Making employees more efficient by providing training and motivation
* Large amount of insurance policy in Sullivan’s life
* More sales if problems were solved and improved
* Costumers looking for pre-owned but convince in buying a new one
* The company can make use of innovation in their product in which they would make the car a solar-enery, energy-efficient or which is fuel-efficient car and environment friendly car that is of high-quality and as much as possible at a affordable price
* As much as possible, Sullivan’s Ford Auto World should have a supplier where they have a close relationship for them to enable selling parts of cars to consumers at an affordable and competitive price
* Making use of season advantage or economy advantage, the company can give discounts, promotions and deals to consumer
* The location of the company can be used as an advantage for customer to easily access our company
* Be community involved, where you would make use of some Public Relation, like having a campaign of helping poor people, uneducated children, save the environment, helping people who are typhoon victims, giving free clothes and foods in Christmas to poor children and many more that is giving concern to citizens, government and environment of the country you are working in.
* Make use of our company name in asking for donations or help our campaigns we are joining and establishing.
* Innovate the work process of the company to make serving customers easier and convenient.
* Innovate the core product of the company in terms that it would benefit the customer and the company like making energy-efficient cars, cars where you can watch tv or dvd.
* Employee’s lack of knowledge, personal soft skill, lack of work ethics, lack of customer interaction and lack of customer satisfaction that can cause the company to have a downfall in the industry
* Poor management
* Poor result of customer survey showing that they would switch to another Ford dealer
* The customer, a man of about 40, wearing a windbreaker and jeans, shouting and yelling at the salesperson, complaining about the service can affect the perception and feelings of consumer who are present at the vicinity at the time of incident may be turned off or lose interest in purchasing their needs at the dealer shop. This can also lead to bad publicity in the social network or media if the happenings were being shot.
* Some customers realize they can’t afford brand new cars and buy pre-owned cars
Bill Froelich, owner of several dealerships, expressed interest in buying out the company.
Froelich who have a competitive price in his business can affect the sales and profit of Sullivan’s Ford Auto World
* Bad (WOM) Word-Of-Mouth of Customers
Since consumers are experiencing dissatisfaction, they can spread their experiences to the social networks, or to their friends or to any other people that can make a negative publicity to Sullivan’ Ford’s Auto World Company.
* Competitors with better services
* Decreasing market share as more competitors enter the business
* Unstable economy
* Fortuitous event
Events like heavy typhoons Yolanda, that have entered the facility of Ford and have destroyed cars equipment
IV. Alternative Marketing Strategies
Increase sales volume and selling gross
* Ensure customer satisfaction
* Provide excellent service department performance
* Make use of marketing promotion
* Give customers the convenience and accessibility of ordering, scheduling their appointment and making them have the privilege to choose when their car is to be repaired
* Provide a website that would enable them to see the estimate right away of the parts and equipment and if it is available
Increase convenience in part of the costumers
* Make use of technology to let the customers access their order status online, the company’s offering, estimate of car repairs, the cost of the parts and its availability, the scheduling of appointments, and to see the company’s information and updates
* Make use of text messaging to make it easier for them to be informed and for faster transaction
* Make service convenience and store open 24 hours
Improve service department performance
* Adding more personnel in the service department
* Add more facility and equipment if needed
* Providing training, and knowledge to employees in service department
* Give higher compensation
Develop, increase and maintain motivation and confidence of employees in performing their job
* Change and improve the servicescape of service department. The servicescape can also the behavior and work performance of employees.
* Give employees rewards, additional incentives, additional compensation if possible, that can make them feel more motivated like if they meet this quota or sales percentage they would be going on a vacation in other country.
* Be a mentor, a friend, a role model and at the same time maintain authoritative if you are having high position in the company. When employees are comfortable with people they talk to, they would be easily influenced and can be easily motivated.
* Build and maintain strong relationship with employees, taking consideration of their feelings and their problems, even in their personal lives if you help them they will feel more important and appreciated in the company.
* Always guide each employee, guiding them means that you are concerned to them and that they are important in the company.
* Acknowledge them if they do something good, praise them it can increase their self-confidence. If employees do things wrong, comfort him/her and advice him and motivate that he/she can do it better.
Develop good management in the company
* The owner or the manager should always be monitoring the company’s financial and employees status, employees feelings should also be considered and given importance. A good management and communication skills can be attained if an employee is feeling motivated, inspired and supported by his manager.
* Strictly impose rules and policies needed in order for the business to be a success.
* Practice 5 basic function of management, planning, organizing, directing, leading, staffing and controlling.
* Provide training, orientation and guiding to personnel and employees on how they will perform their work.
* Management should put focus in building strong customer relationship rather than just focus on acquiring new customers. Management should focus on keeping customer happy rather than just making sales Trust-based relationship selling should be taught to an employee, and highlight the importance of this in the organization and to themselves.
Improve and develop knowledge and soft skills to employees
* Employees avoid handling and facing customer complaints that became the root cause of problems and major reason for customers to be dissatisfied and irritated.
* Employees should be first selected and trained before being given them the opportunity to work at a company, having the knowledge and knowing how to handle complaints are one of the things that a qualification a employee should have.
Improve and develop interpersonal communication
* Train employees and give them knowledge on how they can improve their interpersonal skills.
* Boost their confidence in making communication with other people, suggest them strategies on ways how they can enhance their communication to other people.
Make use of marketing promotions to increase consumer awareness and preferences
* There is a very weak market communication of Sullivan’s Ford Auto World to its customers and employee.
To customers, the company should make use of some media which is being active in community affairs, appearing in radio and television commercials. Make use of Public relation in which the company should be active in community affairs. Lastly, the company should emphasized promotion, discounts and deals in order to attract
customers and maintain volume. Making use of Public Relations can also change the perspective of consumers who experience negative dissatisfaction in the company.
Improve the servicescape of service department
* Invest financial and renovate the servicescape of service department
* Hire cleaning personnel
* Impose cleanliness in the whole company, not only in the front-end but also at the back-end.
Improve and develop work ethics
* Train your employees, orient and direct them the importance of work ethics and how can this affect the company’s status in the economy
* Rules and policies in the company can also be used as a form of do’s and don’t’s to employees.
Initiate, develop and enhance trust-based customer relationship
* In developing trust-based customer relationship, the salesperson here is required to gain the trust of the customer either by using the trust builders or knowledge needed. The people here is focusing on getting the trust and preference of the consumer to the company, one way they can get this is by giving attention to their customer feelings and giving consideration and appreciation.
> Teach your employees, train and orient them and make it as their goal and company’s goal to provide customer value to their customers.
> Because of not being able to accommodate customers, this has become the root and main reason of the problems. Accomodating them, giving them attention, asking for their complaints and suggestions is important not only to the company but also to them. When customers feel important, they also feel happy that the company is being concerned to them.
> It can be gain by using expertise, being a dependable salesperson, candor, customer oriented and be compatible or likeable by customers.
In order to be trusted the salesperson should show that he or she have these qualities.
> Teach your employee and the company’s vision and objective to be customer oriented. Apply the marketing saying and belief. “Customer is always right.”
Be respectful to them all the time.
> Provide services to customers where they will experience a simple confirmation or if possible positive disconfirmation.
> Provide value-added solutions to customers like if they can’t decide you can suggest or give advices to them.
> Practice follow up post-sales to customers, making them informed, asking how they are, making them feel important can make it for them for their trust to be gained and if possible to be a loyal to your company.
> Give the customers security, warranty and guarantee in the product they are purchasing from the company.
> Encourage visit to service facility to customers, so that they can know what are the services that your company is offering that can also help them in their car problems.
> Give customers online access about their order status or make use of some social networking sites or text messaging in order for them to be easily informed and convenient at their part.
> Practice mutual benefit to gain the trust of the customer
* Innovate work-order process
> Make use of a modern way of processing orders and inputing information of transactions and orders of customers by using new technology which is a computer such as spreadsheet, microsoft word in order to make the work easier and convenient in the part of the consumer.
> Enable access of work-order processes in the company’s website
* Ensure customer satisfaction
> Make service convenience 24 hours and give the customers the chance to choose the time of making their cars to be repaired
> Providing quick service and order processing
> Shorter waiting queues
> Providing follow-up post sale
> Give customers value-added solutions to customers
> Practice trust-based relationship selling
> Provide online websites which it would be easier for them to see the offerings of the company and their order status
> Keep them informed
> Give them discounts, deals in seasonal seasons
> Provide guarantee and warranty
> Provide security and safety in the services and product offering. But also inside the vicinity of the organization
> Never argue with the customer.
Apply the marketing beliefs and concept : “Customer is always right”
MARKETING STRATEGY 1
Sell the business ADVANTAGE(+) DISADVANTAGE(-) 1. They wouldn’t have to look for potential buyer because Bill Froelich is already interested in buying the company.
2. Selling company will cut further losses.
If they can’t resolve the problem it’s better to sell it, rather than let the financial situation worsen or the sales value of the company would continue to decrease. Since the company also had a situation of financial problem that deteriorates for the past 18 months.
3. Fuel prices are increasing and car sales industry forecast looks discouraging. They might be better off selling the dealership.
4. There is not enough financial investment that can be used to improve the servicescape of the back-end office or service department as well as to offer training to improve the quality of service of the employee. If they sellout, they wouldn’t have to shell out more money.
5. Selling gross is shifting from car sales to vehicle servicing. The company cannot capitalize on this because the vehicle servicing department is not doing well.
6. Neither Carol nor any of the other family members is really interested in making a career of running the dealership. There is no longer a need for Carol to resign from her job where she is successful.
1. Selling would lose the family legacy.
The dealership is the legacy of Walter Sullivan, wherein he was able to build it and position the company as one of the best known in the metropolitan area. His efforts would be wasted for nothing.
2. Bill Froelich is offering to buy the company at a price represented by a fair valuation of the assets plus goodwill of $250,000, which is lower than what is usually offered. Selling Auto World now means selling at a loss.
3. As of 30 day survey results, the front-end customers are still quite satisfied with the service of the sales department. The company has some competent sales people.
4. Carol can use her expertise in health service management to improve the financial performance of the business. Selling now will lose the opportunity to sell at a higher and fair price in the future.
5. Selling the company would mean giving up everything that their father had build up and work hard for how many years.
MARKETING STRATEGY 2
Try to turn the business around ADVANTAGE(+) DISADVANTAGE(-) 1. Carol has an MBA degree and a successful marketing career in the health care services. Knowledge, expertise and wisdom that she gained from these experiences can help turn around their family business.
2. Carol is armed with familiarity with the operations of Sullivan Ford Auto World since she had worked a part-time as service writers and the data from CSAT Surveys and sales report can help her identify problem areas and find solutions to these problems. 3. Auto World has technically skilled and competent staff, they only need to be motivated, trained more and only needing to have open communication between the management and the employee.
4. The business has an advantage in its location and has already established a good positioning in the minds of the consumer on which has a good quality core product and a well-known dealer of car
5. Carol is relatively young and can think of innovations or creative ideas and solutions to the company. Even if she fails, she will not have a hard time finding new work in the health care industry which she prefers. 1. Carol might need to resign and give up from her current dream work and dedicate her time for the family business to be improved and established once again.
2. If her attempts to save the business will be unsuccessful, the company may incur more losses and might be sold at a lower price.
3. Carol may lack the influence to the employees of Auto World. To save the business, Carol needs to implement changes on the operations and employees might resist these changes since Carol is not their former boss or mentor in the business.
4. Carol may lack some knowledge needed in the car dealership to be successful, in this case, she needs to learn those things either by asking some knowledgeable employees to teach her or to attend school courses that tackles car dealership and are related to car that would be needed in running the business. MARKETING STRATEGY 3
Hire an expert in auto sales and auto service to run Auto World. ADVANTAGE (+) DISADVANTAGE (-) 1. There will be no need for Carol to resign from her current job and just oversee how the hired expert will run the business.
2. The expert may be a generalist, means having more knowledge in different subjects and could have many experiences that can be useful in making the Auto World recover from financial situations and make it a better business.
3. The expert may have the knowledge of resolving the problems of the company and may be good in thinking of strategies and is a creative person who have many ideas that can really benefit the company.
4. The expert may have the good interpersonal skills, and can easily influence the personnel and employees working in the company making the workplace easier and more comfortable. Having a good relationship can make it easier to implement rules and improvements in the company, and the employee, personnel and expert can have a two-way relationship that can be open to anything they can feel. 1. This will entail additional expense for the company. The company has been having a financial problem for the past 18 months and may not have the budget to hire a new manager.
2. The expert may be unfamiliar with Auto-World’s operations & culture.
3. The expert hired might be a spy of Bill Froelich or other compay and is having a bad intention of letting the company’s performance go down in order for Bill Froelich to buy it or to let the company go bankrupt and out of the car business.
4. The expert may have a personality that will make the employees discomfortable and to be not open to their opinion.
5. The expert may make use of his position to be authoritative to employees not thinking of their feelings but just be focused on making sales and profit since the company is already in the stake of a financial problem.
6. The expert may take the job only as a stepping stone if he/she is planning to open his own business.
Ratings: 1 – Least effective 2 – Moderately effective 3 – Really effective
Criteria (Objectives) Marketing Strategy 1 Marketing Strategy 2 Marketing Strategy 3 * Increase sales volume and selling gross 3 2 3 * Increase convenience in part of the costumers 3 3 3 * Improve service department performance 3 3 3 * Develop, increase and maintain motivation and confidence of employees in performing their job 1
3 3 * Develop good management in the company 3 3 3 * Improve and develop knowledge and soft skills to employees 3 2 3 * Improve and develop interpersonal communication 3 3 3 * Make use of marketing promotions to increase consumer awareness and preferences 2 3 3 * Improve the servicescape of service department 3 3 3 * Improve and develop work ethics 3 3 3 * Initiate, develop and enhance trust-based customers relationship 2 3 3 * Innovate work-order process 2 3 3 * Ensure customer satisfaction 2 3 3 TOTAL 33 37 39
VII. Implementation of Plan
Action Person Responsible Time Frame Budget * Manage training to company employees
* Train new company employees
* Miscellanious Flyers
* Public Relation activities and Sponsorships
* Television Commercial
* Advertising and Promotion
* Renovation of Servicescape of Service Department
* Web Page Maintenance
* Cleaning Maintenance
* Employees Salaries/Wages
* Employee Insurance
* Ensuring safety and equipment performance
* Newspaper Advertising
* Answering phone calls, and handling work-order routine and giving estimates to customer
* Ensuring Security in the Company
* Recording Transactions, Monitoring Company Financial Status and Performance
* Ensuring complete supplies of car parts and equipment
* Paying of Rent and electricity expense
* Support trade-in process to purchaser’s existing vehicle
Manager/Supervisor of Sales and Service Department, HR Manager
Manager/Supervisor of Sales and Service Department, HR Manager, Experts
Sales Manager, Vice President Sales Manager, Sales Team
Marketing Manager, Sales Manager, Sales Team, Marketing Team
Marketing Team and Marketing Manager
Marketing Team and Marketing Manager
Facilities Repair Operation People(Construction Workers,Helpers) – 4 Persons
Marketing Manager and Teams
Repair and Maintenance Team
Marketing Team and Marketing Manager
Security Guard Personnel
Accounting Personnel, Owner
Secretary of the Company, can be the owner or the accountant
Owner, sales manager, service car personnel Weekly
Seasonal and if there is a sale or promo in the company
Occasional and Seasonal
(Example: Christmas, Typhoon Survivors, Campaign etc..)
Once or twice a year
If there’s a new product offering, or if the company is needing to increase sales
Every 15th to 30th day of the Month
Seasonal and New Product Offerings in the Market
Every 15th and 30th day of Month
Every 15th and 30th day of Month
Depending on the Position
Managers – 10,000 and UP
Regular Employees – 4,300
Depending on the position and how long is the person in the company
Depending on the location in the newspaper
If front page, may be 20,000 and up.
Sources (APA FORMAT)
* Lovelock, C. (1984). Services marketing. 1st ed. Englewood Cliffs, N.J.: Prentice-Hall, pp.37;40-48;53;59;63-64;74-75;92-93;100.
* Ingram, T., Laforge, R., Avila, R., Schwepeker, C. and Williams, M. (2012). Professional Selling 5th Edition. 5th ed. Philippines: Cengage Learning Asia Pte Ltd, pp.9-11;23;31-46.
* Car Dealership Training (2014). A car dealer’s six-step guide to strategic planning. [ONLINE]. Available at:
27DE9. [2012, May 20.]
* Advameg Incorporation (2014). Auto Sales Company. [ONLINE]. Available at: http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-07/Auto-Sales-Company.html. [2011, August 31].
* Norad, no. (2014). Example of Completed Project Implementation Plan. [ONLINE]. Available at: http://www.norad.no/en/support/norhed/_attachment/401291?_ts=13d498648c7 [2014, August 5].
* Inc. com, (2014). How Much Employee Turnover Really Costs You. [ONLINE]. Available at: http://www.inc.com/suzanne-lucas/why-employee-turnover-is-so-costly.html [2014, August 5].
* Wikipedia, (2014). Pricing strategies. [ONLINE] Available at: http://en.wikipedia.org/wiki/Pricing_strategies [2014, August 5].
FAR EASTERN UNIVERSITY
INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE