Market Share Help! STARTER QUESTION

What is a reasonable growth percentage when gaining market share? STARTER QUESTION

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Permalink Reply by Pete Grimm on August 5, 2011 at 8:28pm

That is a really tough question, partly because you have given no particulars on which to base analysis, and partly because the answers can (and should) be all over the map based on tiny differences in variables.

Examples: Are you talking about the market share of a particular vehicle, in a particular segment, in a particular market area? Is the vehicle in question a market leader or newly introduced? Does it have a lot of competition in your market, or little? Is the segment in which it competes a big one or a niche? These questions have yet to touch upon advertising, manufacturer support, availability of product, and many other variables.

Secondarily, it might be important to understand the purpose of the question. Are you trying to evaluate the risk involved in stocking up on certain inventory, or the risk involved in spending X,Y, or Z dollars advertising, or is there another purpose?

There are probably no right or wrong answers. Only answers that will make you comfortable with your ultimate decision - or not. I'd be happy to discuss it further, if you wish. - Cheers, Pete Grimm

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Permalink Reply by Stan Sher on August 8, 2011 at 12:18pm

I don't know the numbers or stats but I certainly know what you need to do to get what you are looking for.

1. Design and effective digital marketing strategy. I am talking about SEO, Video SEO, Social Media, Blogs, Article Writing, Optimize Your Website(s), build micro-sites, etc...

2. Build a BDC and consistently train them to effectively handle every single opportunity that comes in by email or phone.

3. Turn on the digital marketing strategy and monitor the results under a microscope. Have call monitoring and utilize companies like CallRevu to keep you aware of how the BDC is handling them. Make whatever changes you feel you need to keep it going effective.

4. Train your sales staff to work hand in hand with the BDC and to understand what is being said on the phones so when customers come in you just take over without any issues.

5. Enjoy your new found success.

How do I know this works? In 2009 I join a dealership in the Bronx that was shut down. Under new ownership, we did just the exact same thing that I am telling you to do. Within 9 months of opening up we were doing 200 units per month as a store (50-60% BDC related). I left to do consulting and keep them as my friends. After 18 months, they hit 300 and are growing. This is a dealership that under the previous owner never did 90 units. Did I mention we turned it around during a so called "bad economy"?

If you have questions and need advice on how to do all of this, I am more then happy to talk to you.