A deliverable sales strategy for Mercedes-Benz Claremont

Van Zyl, Jaco (Stellenbosch : University of Stellenbosch, 2009-12)

Thesis (MBA (Business Management))--University of Stellenbosch, 2009.

Thesis

ENGLISH ABSTRACT: The economic downturn in South Africa since mid 2008 has transformed the motor vehicle industry into a seriously competitive marketplace. Both large and small dealerships are finding their volumes and margins under increasing pressure. Sandown Motor Holdings (Pty) Ltd has a new vision to become the finest motor group in the world. An openness to ideas and to the external environment in the learning organisation means that it can excel by exceeding customer expectations and benchmarking against the best in the class (Clarke & Clegg, 2000:5). In this light, Sandown Motor Holdings needs to adopt certain strategies, policies and practices that allows for the implementation of new ideas and quick reactions to changes in the external environment. They need to know what customer expectations are and then exceed them to enable Sandown Motors to make this vision a reality. This research report analyses the external and internal environment of Sandown Motor Holdings (Pty) Ltd in the Western Cape in an attempt to gain insight into the realities facing the company. The report becomes more focused on Mercedes-Benz Claremont as a dealership and its pre-owned vehicle sales department as the key department which serves as an outlet for trade-in pressures, but also as a profit centre which needs to be developed. Much work is done around market segmentation, product profiling and trading policies that would positively influence both pre-owned and new vehicle sales. The pre-owned strategy that emerges also highlights the necessity for an e-commerce strategy to serve as another platform from which to trade even more pre-owned vehicles. This strategy specifically aims to establish an online auction system open to traders only. The report concludes by taking a look at the new vehicle sales department. The approach taken is customer centric and relies heavily on the customer experience as a source of competitive advantage over competitors. Processes and performance indicators are reviewed and an action plan is compiled and put in place. A detailed twelve-month marketing plan is also developed and is included as an appendix. The author believes these strategies are crucial for short-term profitability, long-term survival and the satisfaction of all stakeholders. AFRIKAANSE OPSOMMING: Die ekonomiese afplatting in Suid-Afrika sedert die middel van 2008 het die motor-industrie in ‘n streng kompeterende arena omskep. Beide groot- en kleinhandelaars ondervind toenemende druk op hulle volumes en winsmarges. Sandown Motor Holdings (Pty) Ltd het ‘n nuwe visie om die beste motorgroep ter wêreld te word. ‘n Openheid teenoor idees oor die eksterne omgewing in die leergierige organisasie, beteken dat dit kan presteer deur kliënteverwagtinge te oortref en hulself te kan meet teen die beste in die klas (Clarke & Clegg, 2000:5). In die lig hiervan moet Sandown Motor Holdings sekere strategieë, beleidsrigtings en praktyke aanvaar wat die implementering van nuwe idees en vinnige reaksie op veranderinge in die eksterne omgewing moontlik maak. Hulle moet weet wat die kliënte se verwagtinge is en dit dan oortref ten einde Sandown Motors se visie ‘n realiteit te maak. Hierdie navorsingsverslag analiseer die eksterne en interne omgewing van Sandown Motor Holdings (Pty) Ltd in die Wes-Kaap in ‘n poging om insig te verkry in die realiteite wat die maatskappy in die gesig staar. Die verslag fokus op Mercedes-Benz Claremont as ‘n alleenstaande handelaarskap en sy Gebruikte-Voertuie Verkoopsafdeling as die sleuteldepartement wat dien as ‘n uitlaat vir inruil druk, maar ook as ‘n winssentrum wat verder ontwikkel moet word. Baie werk is gedoen rondom marksegmentasie, produkprofiele en handelsbeleid wat positiewe impak op beide nuwe en gebruikte verkope sal hê. Die gebruikte-voertuig strategie wat hieruit spruit beklemtoon verder die behoefte aan ‘n webgebaseerde strategie wat as ‘n verdere afsetpunt kan dien vir nog meer gebruikte-voertuie verkope. Hierdie strategie is spesifiek gemik op die daarstel van ‘n op-tyd aanlyn veilingstelsel, uitsluitlik vir die gebruik van motorhandelaars. Die verslag sluit af deur te kyk na die Nuwe-Voertuig Verkoopsafdeling. Die benadering wat gevolg word is kliëntgesentreerd en berus op die kliënt se ervaring as ‘n bron van kompeterende voordeel bo die kompetisie. Prosesse en indikators om prestasie te meet word hersien en die nodige aksieplan word opgestel en toegepas. ‘n Gedetaileerde twaalf-maande bemarkingsplan is ook ontwikkel en word ingesluit in die aanhangsels. Die skrywer glo hierdie strategieë is krities vir korttermyn winsgewendheid, langtermyn oorlewing en die bevrediging van alle belanghebbendes.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/937
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