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CIRCUIT CITY-Selling  used cars like stereos By Chaitanya Bansal Diwakar Kumar Pankaj Pandey G.Revathi Shashwati Sen Siddhesh Bhatewara
 
Introduction ,[object Object],[object Object]
Contd… ,[object Object],[object Object]
Contd… ,[object Object],[object Object],[object Object]
Industry Analysis
CARMAX ,[object Object]
Why “CARMAX”??? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Used CarMax Sales Stable
The Growth Story… ,[object Object],[object Object],[object Object],[object Object]
[object Object]
Contd… ,[object Object],[object Object]
CarMax Results : (1997-2002)
2001-2007
CarMax Superstores
2001-2007
Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Contd… ,[object Object],[object Object]
Contd… ,[object Object],[object Object],[object Object]
Sacramento Los Angeles San Antonio Houston Tampa Jacksonville Va. Beach Raleigh Charlotte Greensboro Charlotte Greenville Las Vegas Fresno Fresno Tucson   Large markets (9) Mid-sized markets (28) Small markets (1) Store Growth: • FY07  10 stores  +15%  • FY08  13 stores  +17% (Est.)
Tucson San Diego Los Angeles (2) Modesto Newport News Baltimore Charlotte ) Atlanta • FY08  13 stores
[object Object],[object Object],[object Object],New Car
[object Object],[object Object],[object Object],Contd…
[object Object],[object Object],Contd…
[object Object],[object Object],[object Object],Contd…
 
[object Object],[object Object],Contd…
Important Dates  ,[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],DEALING WITH COMPETITON
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]
[object Object]
  Revenue  ( M)    Profit Margin (12 mos)  Employees  Market Cap (M)  Sonic Automotive, Inc . $7,972.1 2.3% 11,200 $992.1 CarMax, Inc $7,465.7 4.5% 13,736 $4,633.5 Copart, Inc. $560.7 38.8% 2,536 $3,349.6 America's Car-Mart, Inc. $240.3 1.0% 800 $140.8 Strategy International Ins. Group, Inc. $5.7 -126.1% 19 $0.4
Auto Nation ,[object Object],[object Object],[object Object],[object Object]
Contd… ,[object Object],[object Object],[object Object],[object Object],[object Object]
United Auto Group,Inc. ,[object Object]
[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]
[object Object]
Market Analysis
 
 
Marketing Concept Core  concepts Need/ Want/ Demand Product (goods and services) Value/ cost / Satisfaction Exchange/ Transaction Relationship/ Network Private  mode  of  transport Sale &  purchase Of used cars & Selling of  New car Good  quality at less  price Luxuri ous/ Econom ical Satisfied  customers by High quality service  Purchasing & Selling of cars for money Manufacturer Finance  Companies
Establishing strategic business unit ,[object Object]
MARKET ORIENTED STRATEGIC  PLANNING
Technology   used Customer   need Customer group Middle and upper middle class Americans Reliable cars with no haggling over price 110 point inspection system-  huge and exhaustive data base for inventory
WHY Plan new business ????? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Consumer buying behaviour  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object]
CDV provided  ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
Segmentation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
Target segment ,[object Object],[object Object],[object Object]
Market targeting  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],Mkt Pdt  M1 M2 M3 P1 P2 P3
Positioning ,[object Object],[object Object],[object Object]
Product differentiation  Carmax differentiated its product under two main dimensions Services  Differentiation Personnel Differentiation
Service differentiation ,[object Object],[object Object],[object Object],[object Object],[object Object]
 
Personnel differentiation ,[object Object],[object Object],[object Object]
Positioning Statement ,[object Object],[object Object]
Product  Core benifit Basic Augmented Expected Potential
The Marketing Mix: 4 P’s 1.Product ,[object Object],[object Object],[object Object],[object Object]
Product hierarchy for Carmax   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object]
Branding  ,[object Object],[object Object],Separate family name for all products.
2. Price ,[object Object],[object Object],[object Object],[object Object]
[object Object],Price Product Quality High Medium Low High Premium strategy High-value strategy Super-value strategy Medium Overcharging strategy Medium- value strategy Good value strategy Low Rip-off strategy False economy strategy Economy strategy
[object Object],[object Object],[object Object],[object Object]
Pricing method ,[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
3.Place  ,[object Object],[object Object],Owns all outlets Corporate VMS Promotion and distribution  under single ownership
[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
Promotion ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
 
BENEFITS ,[object Object]
Consumer recognition ,[object Object],[object Object],[object Object],[object Object]
Answers to Case Study Questions :
[object Object],[object Object]
What price adjustment strategy do car dealers use ? ,[object Object]
How is CarMax changing the used – car industry’s pricing strategies? How have buyers and competitors reacted to these changes ?  ,[object Object]
What marketing recommendations would you make to CarMax ? ,[object Object],[object Object],[object Object]
[object Object]
 

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Carmax

  • 1. CIRCUIT CITY-Selling used cars like stereos By Chaitanya Bansal Diwakar Kumar Pankaj Pandey G.Revathi Shashwati Sen Siddhesh Bhatewara
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  • 13. CarMax Results : (1997-2002)
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  • 20. Sacramento Los Angeles San Antonio Houston Tampa Jacksonville Va. Beach Raleigh Charlotte Greensboro Charlotte Greenville Las Vegas Fresno Fresno Tucson Large markets (9) Mid-sized markets (28) Small markets (1) Store Growth: • FY07  10 stores  +15% • FY08  13 stores  +17% (Est.)
  • 21. Tucson San Diego Los Angeles (2) Modesto Newport News Baltimore Charlotte ) Atlanta • FY08  13 stores
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  • 33.   Revenue ( M)   Profit Margin (12 mos)  Employees  Market Cap (M)  Sonic Automotive, Inc . $7,972.1 2.3% 11,200 $992.1 CarMax, Inc $7,465.7 4.5% 13,736 $4,633.5 Copart, Inc. $560.7 38.8% 2,536 $3,349.6 America's Car-Mart, Inc. $240.3 1.0% 800 $140.8 Strategy International Ins. Group, Inc. $5.7 -126.1% 19 $0.4
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  • 44. Marketing Concept Core concepts Need/ Want/ Demand Product (goods and services) Value/ cost / Satisfaction Exchange/ Transaction Relationship/ Network Private mode of transport Sale & purchase Of used cars & Selling of New car Good quality at less price Luxuri ous/ Econom ical Satisfied customers by High quality service Purchasing & Selling of cars for money Manufacturer Finance Companies
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  • 47. Technology used Customer need Customer group Middle and upper middle class Americans Reliable cars with no haggling over price 110 point inspection system- huge and exhaustive data base for inventory
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  • 60. Product differentiation Carmax differentiated its product under two main dimensions Services Differentiation Personnel Differentiation
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  • 65. Product Core benifit Basic Augmented Expected Potential
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  • 84. Answers to Case Study Questions :
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