new car online sales

| 2014 | Concept Paper – Batten & Company

The Marketing & Sales Consultants of BBDO Worldwide

New Car Online Sales – Overview


Common questions around New Car Online Sales.

Is online sales relevant for automotive brands?

What are the relevant business models?

Which kind of USP may threat an OEM?

Is there need for action for car makers and if so, how urgent?


New Car Sales Online Approaches

OEM direct sales

Special Editions

Only

Focuson Pre-Sales

Focus on Sales

(Conventional) Lead

generating

OEM driven 3rd party drivenDealer driven

Lead generating

A B C

A1 A2 C1 C2 C3

Framework New Car Sales Online.

e.g. e.g. e.g. e.g.

+

e.g. e.g.


Approaches with different impact on dealers.

Pre-Sales Sales Delivery

DealerOnline(Conventional) Lead generating

DealerOnlineOEM direct sales

DealerOnlineLead generating

DealerOnlineFocuson Pre-Sales

DealerOnlineFocus on Sales

DealerOnlineSpecial Editions Only

A1

A2

B

C1

C2

C3


Customer is able to configure a new car to be build. Lead will be referred to a car dealer for offline sales. Mercedes-Benz car dealer or “Niederlassung” will than contact the customer and will send the final sales contract.

(Conventional) Lead Generating

OEM conventional lead generating – Example Mercedes-Benz

- Car configurator and image in focus

- Conventional lead generating

Uniqueness

Impressions

Sources: http://www.mercedes-benz.de

Used 1 day permission

Stock cars Build to order

X

X

Type of cars

A1

User Experience

Focus


Customer can configure a new car to be build. Customer can file a buying request via the homepage of BMW. BMW will then contact the customer and will send over the final sales contract.

OEM direct sales

OEM direct Sales – Example BMW i

- Direct sales of an OEM to the end customer

- Only electric vehicles (i-series)

Uniqueness

Impressions

Sources: http://www.bmw.de



X

X

X

Type of cars

A2

User Experience

Focus


New cars that are in stock at car dealers are being offered online at a country specific homepage. Once a car is chosen the customer sends a contact request to the car dealer. The rest of the deal is handled offline.

OEM direct sales

OEM direct Sales – Example Citroen Car Store

Impressions

Sources: http://www.carstore.citroen.es/Entrada



X

X

X

Type of cars

A2

- High price discounts on the offers

- Delivery within 10 days possible

Uniqueness

User Experience

Focus


Possibility to buy new cars. Potential customer requests the price for a car via dealer’s homepage and generates a lead for the respective car dealer. Customer is being contacted by sales personnel to handle the deal offline.

Lead generating

Lead Sales through car dealers homepage – Example Capitol Toyota

Impressions

Sources: http://www.capitoltoyota.com/usedspecials.aspx#

Type of cars



X

X

B

- Hassle-free car quote via E-mail or text message. Stress-free car buying

- Get information if and when chosen car is available

Uniqueness

Price

Focus


Displays new and used cars from dealers and private persons. Private sellers can advertise for free (all Companies but dealers pay 10 Euros more). Dealers can chose accounts for 53.99 € up to 1,336.98 €. Customer selects a car and gets in touch with the seller via email. mobile.de also generates extra revenue through advertisement on the homepage. Extra options like Top-listing for an extra fee available (3€).

Focuson Pre-Sales

Online marketplace and registered dealerships – Example mobile.de

Impressions

Sources: http://cms.mobile.de/de/haendler_informationen/preisliste.html

Type of cars



C1

- Possibility to research cars with specific blogs and further information given

- Wide choice

Uniqueness

Choice

Focus


Possibility to set up preferences for a new car of a specific dealer. TRUECar issues a certificate with a guarantee that the chosen dealer will offer the chosen car for the given price. Customer then meets with the dealer to close the deal offline. TRUECar charges the dealers $299 for each successful new-car transaction.

Focuson Pre-Sales

Online marketplace and registered dealerships – Example TRUECar

Impressions

Sources: http://www.truecar.com/

Type of cars



X

X

X

C1

- No face-to-face negotiation process

- Easy understandable price analysis

Uniqueness

User Experience

Focus


Opportunity to buy new or used cars from dealers and private persons. Customer chooses a car and gets in touch with the seller via email. Advertising a car costs between £9.99 and £56.00 for each ad. Earning money through extra advertisement on the homepage.

Focuson Pre-Sales

Online marketplace and registered dealerships – Example Autotrader.co.uk

Impressions

Sources: http://www.autotrader.co.uk/

Type of cars



X

X

C1

- Possibility to research cars with specific blogs

- 3 ways to sell a car – by yourself, with experts help or to a dealer

Uniqueness

Choice

Focus


Possibility to configure a new car for leasing or financing with either the option to return it or buy the car at the end of the leasing period. An offer is send to the customer and if he accepts Sixt checks customers solvency. After a positive check Sixt sends the request to the car manufacturer. Direct B2C offer only.

Focuson Sales

New online car dealers – Example Sixt neuwagen

Impressions

Sources: http://www.sixt-neuwagen.de/

Type of cars



XX

X

C2

- Discounts of up to 56% of the listed price

- No banks or dealers involved

Uniqueness

Price

Focus


Offers new cars for sale. Either directly refer “ready to buy” customer to dealer or handle the sale in-house. For in-house sales the cars a purchased from Broker4cars before they sell it to the customer. The customer gives preferences while broker4cars searches for the right dealer/offer and contacts the customer afterwards.

Focuson Sales

Impressions

Sources: http://www.broker4cars.co.uk/mercedes/new-mercedes-a-class.htm

Type of cars



X X

X

C2

- Broker will identify a suitable car option

- Provide trouble free and enjoyable car buying experience

Uniqueness

User Experience

Focus

Car brokers – Example broker4cars.co.uk


Only new cars are displayed. Customer can choose from configuring a car or buying an in stock car and either leasing or buying it. If the car is configured the details are send to a dealer to settle the rest of the buying procedure offline. Dealers pay a fixed fee for each successful transaction. Extra revenue through advertisement on website.

Focuson Sales

Impressions

Sources: http://www.meinauto.de

Type of cars



X

C2

- Possibility of a live consultation

- Complete manufacturer’s warranty

Uniqueness

Choice

Focus

Car brokers – Example meinauto.de


Customer configures a new car or selects an in stock car and is transferred to the cheapest dealer. Buying procedure is then handled offline. Fees for the dealer only arise after a closed deal.

Focuson Sales

Impressions

Sources: http://www.autohaus24.de

Type of cars



X

C2

- Up to 44% discounts available

- Entire sales talk is handled by autohaus24

Uniqueness

User Experience

Focus

Car brokers – Example autohaus24.de


Customer can configure or select a new car. Possibility to buy or lease a car. After selecting the car the customer is transferred to a dealer. The buying procedure is handled offline. Dealer can buy a flat rate to advertise their cars and also promote/advertise the configurator on the dealers own website (e.g. Pro-package 119€/6 months).

Focuson Sales

Impressions

Sources: http://www.carneoo-pro.de/

Type of cars



X

C2

- Only dealers within Germany – no re-imports

- High discounts (up to 40%)

Uniqueness

Price

Focus

Car brokers – Example Carneoo


Possibility to search for new or used cars (max. 24 months of use). Offers are displayed online with the contact information for the dealer given. Option to email or call the dealer to handle sales offline. Only professional import offers – no private car selling. Additional revenue through advertisement.

Focuson Sales

Impressions

Sources: http://www.eu-neuwagen.de/fahrzeugangebote.html

Type of cars



C2

- Advertising to have the best prices for re-imports

- Choose from new cars, stock cars, employee’s car or used cars

Uniqueness

Price

Focus

EU Imports - EU-neuwagen.de


Only offering cars available from five dealers cooperating with Car Shop. Possibility to book/reserve a car. Afterwards customers meet with Car Shop’s dealer to inspect the car and handle the deal offline. Home delivery is an option.

Focuson Sales

Impressions

Sources: http://www.carshop.co.uk/

Type of cars



XX

C2

- 7 days money back guarantee

- Live video tours- Price Match Promise

Uniqueness

Price

Focus

Car Supermarkets - Car Shop


Selling cars through multi-media channels such as reward sites (Amex) or Twitter. E.g. a specific BMW model has been offered at American Express for bidding within 24 hours.

Special Editions Only

Impressions

Sources: http://www.forbes.com/sites/hannahelliott/2010/12/15/flash-sales-are-the-new-auto-marketing-stunts/

Type of cars



X X

C3

- Very high price discounts- Attraction and uncertainty

develop high involvement

Uniqueness

Price

Focus

Special Editions Only – Example Flash sales


In general: Three kinds of customer strategies.

User Experience Price

Choicemobile.de aimson greatest choice

Hassle-free buying process (personal agent) Best price for a defined car

If a supplier will succeed in bringing „Choice“ and „New User Experience“ together,the process of selling new cars might change significantly.


A strong player combining Choice and User Experience may be a “game changer”.

User Experience Price

Choice

New players aiming on a new kind of “buying experience” – not longer based on features but on needs!

Hassle-free buying process (personal agent) Best price for a defined car

mobile.de aimson greatest choice

Choice plus UX may threat

premium brands


Relevance of online sales for an OEM’s digital strategy.

Recent figures indicate that online sales are of less importance to premium sector

3rd party online providers will not necessarily be crucial for worldwide sales within the next 5 years

As today 3rd party online providers are no threat to OEM‘s digital strategies

Current platforms do not offer „game changing“ added value to the customers

These figures are not only unreliable, but could also be subject to quick changes

3rd parties will be very crucial for the success of an OEM’s overall digital strategy (as partner or as competitor)

If 3rd parties are able to combine „Choice“ with „User Experience” striking online players might emerge

If a strong player develops a new kind of buying experience based on needs, this may change (from features to needs)

— On one hand — — On the other hand —


Batten & Company GmbH, Königsallee 92, 40212 Düsseldorf, T +49.211.1379-8539, F +49.211.1379-8742, www.batten-company.comDüsseldorf • Johannesburg • London • Madrid • Moskau • München • Shanghai • Tel Aviv • Zürich

Christian von ThadenManaging Partner

Batten & Company GmbHKönigsallee 92D-40212 Düsseldorf

Fon +49.211.1379.8748Fax +49.211.1379.91.8748Mobile +49.177.88.17.555

[email protected]

new car online sales

Marketing

lead sales

presales focus

offline sales

new car online sales

chosen car

sales conventional lead

sales personnel

car configurator