Second Hand Car Market Essay
1. Executive Summary
Selling online can help your business reach new markets and increase your sales and revenue gains. Those who are interested in selling to other businesses, can use the Internet to find sales leads, announce calls for tender, and to offer products for sale. Searching for products and services online can save time and money by allowing to find the best prices without having to do all the legwork. You can use the Internet to find new suppliers, post buying requests or search for products and services. The benefits of effective B2B e-commerce include lower costs associated with selecting suppliers, establishing prices, ordering, and finalizing transactions. Online trading networks can also be used to support efficient information exchange between buyers and sellers.
2. Business description
Mission —The mission of Budget Cars will be to buy and sell a desirable mix of quality used cars, trucks, and vans, and to create a friendly atmosphere where Budget Cars will be known for being your family used car center.
3. Industry analysis
Immediately following World War II, there were roughly nine buyers for every new car produced. Sales personnel merely had to find out who could afford a new car. “Afford” was defined as paying cash.
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During the 1960s, other new merchandising techniques were introduced. “Sticker price,” “fleet price,” “hard sell,” “50 over invoice,” “high-powered advertising,” and “free” accessories were but a few new innovations. The buyer was becoming better educated, better able to buy—thanks to 24- and 36-month payments—but still confused and fearful of price. “Good deals” became “bad deals” after talking to friends and neighbors. Caution became the watchword when buying a car.
The advent of the 1970s brought more confusion to buyers with new procedures like leasing, 48-month payments, credit unions, rebates, and consumer advocates. However, in defense of the consumer, books on “How to Buy a Car,” “Invoice Prices U.S. Cars,” and “Used Car Buyers Guide,” were published and sold by the millions.
During the 1970s automobile salespeople became conditioned to the notion that customers were interested in only one thing—the very lowest price. The automobile showroom atmosphere didn’t change very much from the 1970s to the 1980s. Most retail salespeople saw the business of selling automobile as an “us against them” hard-sell game. Those who sold popular Japanese products became arrogant and insensitive to their customers and those who sold American vehicles continued with the approach that price, and price alone, sells vehicles.
As the 1980s came to a close, however, the winds of change began to impact the retail automobile marketplace. Today, in the mid 1990s, the business of retailing automobiles is quite different than it has ever been in the past.
In today’s marketplace, 5 out of every 6 cars sold in the United States are used. Knowing this fact and trying to organize and be able to provide as many possible offers in one place in mid 1990s many new second hand car advertising magazines came to market. The popularity of second hand cars made those magazines sold good. But with today’s technology and high internet usage just a print magazine is not enough to have for a successful company. There are more and more car selling online site, where is gathered a great amount of advertisements.
4. Market analysis
There are many different online car shoppers’ sites which offer their service.
CarsOnlineFree.com is a unique site exclusively established by a few students with a view to provide online car buyers and sellers with the best friendly services, and the most competitive online advertising opportunity, Free of costs. Search cars and sell cars free online, no catch! As they say: We hope potential buyers, and sellers would be greatly benefited from this site. Our rigorous effort is just to make a difference.
In addition, CarsOnlineFree.com is also offering Free Auto Dealer Memberships with a number of Exciting Features. Online visitors can search Dealer Vehicle Inventories from CarsOnlineFree.com’s search page or they can search Available Member Dealers within certain distance of their Zipcodes.
The other site which we found of car sellers is Carzone.ie. Carzone.ie is Ireland’s number one motoring website attracting over 720,000 monthly unique users, who carry out over 35 million searches a month for used cars. Carzone works with Ireland’s franchise and independent car dealers, and private sellers, to provide the biggest online showroom of used cars in the country. Over 60,000 used cars are listed on the site at any one time. Carzone’s unique search function means finding the perfect car is easy – with no specific make or model in mind required.
5. Marketing plan
In the most basic sense, a business model is the method of doing business by which a company can sustain itself that is, generate revenue. The business model spells-out how a company makes money by specifying where it is positioned in the value chain.
For the company Second Hand Car Mart we offer the best online business model which is combine advertising – subscription business model.
The web advertising model is an extension of the traditional media broadcast model. The broadcaster, in this case, a web site, provides content and services mixed with advertising messages in the form of banner ads. The advertising model works best when the volume of viewer traffic is highly specialized. Second Hand Car Mart Company will provide classified information for both second hand car sellers and buyers.
This will attract specialized audience of website and could be the best advertising area for car service providers, car accessories seller, car salons, cars selling companies (such as Ford, Mercedes Benz, Toyota and etc.), car loans providers. These would be the companies which would be highly advertised in the online site. Meanwhile any other advertisement could be place in the online site, such as popular online shopping sites with the best offers, news online site and etc.
In subscription online business model users are charged a periodic daily, monthly or annual fee to subscribe to a service. It is common for sites to combine free content with “premium” content. We offer combine advertising online business model with subscription. Mainly subscription model will be offer for companies which put the car sell advertisement and as an opportunity to be first in search, assure that the company’s offer will come up in the first page. Also subscription would let the car seller put as many advertisements as want during any period of time.
The free subscription would be offered for customers who are selling their own cars as an individual advertisement.
Portal – a search engine that may include varied content, in our case will be gathered information of car sellers. A high volume of user traffic makes advertising profitable and permits further diversification of site services.
Combining two business models will help Second Hand Car Mart to increase their profit. Nowadays the companies have to be creative and not to apply just one business model. We believe that those companies which can combine different models and use what suits best for them will become successful.
So we chose the business model which we are offering to apply for Second Hand Car Mart online site.
The domain you use for a web site can have a huge impact in the way that humans and search engine spiders perceive it. Domain names were once so expensive that only those wanting to protect a brand or who could afford them owned them, now they are commonplace and if you know where to look, you could pick up a domain name for free. Now that they are much easier to obtain, it is hard to take any site that does not have it’s own domain name very seriously. Without a domain name, a company is likely to be passed off as amateurish or seen to want to cut corners to save money. The best domain names are those that people can remember, because if your visitors can remember it, they are more likely to come back.
That is why we came up with domain name: www.carmart.com.my. This domain name is available and it represents the company. We believe that this domain name is not too long, is easy to remember and make sense. Using carmart.com.my domain name will let the company to add the possibility of advertising new cars as well as second hand cars.
The second offer would be www.secondhandcar.com.my domain name. This domain name is available and could be used by company. It is more directly associated with the magazine name and will attract the existing users. But we also see few disadvantages which first domain name doesn’t have – it might be too long to remember and it narrows the company possibilities advertising new cars.
Domain name for an online business this could mean the difference between a new customer or losing one. It could also mean the difference between an one time or returning visitor. It also makes it easy for people to remember your site. In any case, if they like it, they might recommend it to a friend. This will help build traffic to website over a period of time. Because people remember website addresses based on domain names, choosing a good domain name is crucial when creating a website. Generally, short, easy-to-remember domain names are best. It is also helpful if they are easy to type and easy to say. Finally, the domain name describes the content of the site well. Domains ending with “.com” are the best, but “.net” and “.org” are also good options. Domains like “.cc,” “.name,” and “.info” are not as well indexed by search engines, so steer clear of those if you can. Choosing domain ending with “.com.my” will direct that online is based in Malaysia.