Marketing

1. Case situation of “Custom Car Care” Situation in the given case is that Mr. Glenn Rozycki has founded and registered a new company called Custom Car Care which deals with the custom car care cleaning and maintenance. Now he is analysing various marketing strategy like promotion and pricing to grab a market share as there were many competitors in the same market. Service that this company provided was cleaning of interior and exteriors of car using hand cleaning method and by using good quality detergents so that car remains in good situation for longer period of time. Glenn divided the customers in three groups; first group consisted of people who owned the older cars that were in poor condition, second people who owned a mid priced car and third people who owned expensive cars. There are different characteristics involved in different groups. First group of old car owners are not ready to spend a lot of money on the presentation of their cars. When cars get dirty they either washed it themselves or more commonly take them to the inexpensive automated car wash at local gas station. Glenn thought this group can be his potential target as he may maintain and clean cars nicely which will slow down the rusting process and cars will look better which will reduce future expenses. Second group consist of people who owned mid-priced cars this was the largest consumer group. This group was ready to make some investment in their cars to keep them in good condition. Some of them washed their cars themselves, and few used to take their cars to automated car washing and others took their car to specialised car cleaning companies. This group was very choosy and particular about choosing a car cleaning company they call up and drive around to get the best price deal and then they decide which option to go for. Third group was people having expensive cars who were ready to spend a good amount to keep their cars in good order. This group was smallest of all groups but this was the group which use specialised car cleaning the most. Once this group finds a nice company they do not leave the company until they are dissatisfied of some reason. Recommendation from friends was a primary determinant in choosing a company. Competition that glenn was facing was from do it yourself group, automatic car washing machines ( Soft cloth washing, No touch washing, and brush automated wash) and custom cleaning companies. Glenn was more concerned about the no touch car cleaning machine. Do it yourself group consisted of younger people and this group was more active in summers. Whereas in winters they choose either automated car washing or specialised car cleaning depending on their consumer group. Do it yourself group was present in the entire consumer group but majority was in mid priced car owner group. In Scarborough where Glenn wanted to set up his company was already full by well established competitor like Sparkles, T&T Auto care, Auto Image etc. They were providing services at different price; few were also giving additional services like free pick up and delivery and services through mobile unit. At that point of time as there was economic downturn so people were not buying new cars so they were considering their cars as investment. He also realised in the meantime that people prefer what he called “the works” package. This work package included various services like thoroughly hand washed exteriors clean white walls and wheels etc. In order to get a good market share he wanted to advertise and market his services so he was confused exactly how and where to advertise. He had all the cost and expenses handy to plan for the channel of promotion and advertising. But how much and where to allocate funds for promotion and advertising, and what should be the price of his services were problems that he wanted to solve.