Marketing Strategy for Products

Devora Jenkins

Strayer University

MKT500

Dr. Shirley McLaughlin[pic]

Oct.30, 2011

Background Good morning and welcome to today’s Think Tank meeting. Before we get started, I like to thank everyone for making KrashKars the third largest auto auction in California, Nevada and Arizona. As a veteran, minority, woman own business, we have capture a good part of the local salvage auto disposal market, but to remain competitive, we need to explore other opportunities. The company has provided service to insurance company for past 10 years and experienced enormous growth during that time. We are dedicated to the highest level of customer service through innovation and technology. Our motto is Give us your trash and we’ll make it someone treasure. However, our way of accepting bids is outdated. Currently, bids are placed prior to closing time and date of sale. They are accepted in person or in writing by mail, fax, and e-mail; using our online form. Companies like Copart, Ride Safely, and Salvage Direct are utilizing V-Bidding; gaining more of the market. Copart reaches numerous buyers through its’ on-line auction web show “Sold In Seconds” (Copart.com). It time we tapped into that market share and increase revenue. Green Book and Research America marketing firm were hired to survey industry insiders and focus group of insurance representatives. From the data collected, it was determine this is the time for the company to expand its services to include on-line biding. The process save customers time and boost profit. Customers enjoy Internet bidding and are especially impressed and excited about bidding in real time via V-Bid. They want to be a part of the action. Crazy Car Custom, Rescue & Recover Restoration and Vintage Vehicles said they would double their business if they could purchase cars via live auction. A Capture Team was assembled to implement new product/service. Team members are responsible for new business development activities, product positioning, and market strategy. Other duties include, identify product characteristics, branding strategy, product line, and how market approach fit with organization strategy. They also conducted secondary market research and found customers wanted motorcycles added to the inventory. The suggestion was taken into consideration and motorcycles were added to the inventory. Combine inventory is 15,000 with the new addition and implementation of V-Bidding the company expects to increase revenue by 25 percent and market share by 33 percent in the first six months.
Products and Products Characteristics KrashKars primary objective is to offer secure outlet for customers to obtain salvage vehicles. The company is considered a service provider however; a tangible product is received at end of the transaction. The product characteristic typically encompasses experience and credence. Yet, the end result is an automobile or motorcycle; a highly complex good. KrashKars business exists along continuum because the distinction is blurry. The service is the product; its’ intangible but not inseparable since users do not have to be present to participate in V-Bidding (Iacobucci). Basically, KrashKars must be concern with intangibility, inseparability, perishability and variability of service. The company is known for its’ resources, proficiency, initiative, and reputation. Most visitors to web site are repeat customers who enjoyed the experience, service and speedy delivery. When they recommend the site, they will talk about the intangible characteristics of the service. They know the products purchased are smashed, scratched and dented. They will tell potential customers connection was quick and easy, car and title delivered in three days, and payment process simple. They will rave about the ability to experience excitement and thrill of