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Table of Contents

2Unique Selling position 1

3Customers 2

3Customer demographics 2.1

3Key customers 2.2

4Customer management 2.3

5Competitors 3

5Competitor details table 3.1

6Market Research 4

6Market targets 5

7Industry analysis 6

7Marketing strategy 7

8Advertising and sales 8

8Advertising and promotional strategy table 8.1

9Sales strategy 8.2

9Sales and distribution channels table 8.3


List of tables

7Table 1: Competitor details table

10Table 2: Advertising and promotional strategy table


  1. Unique Selling position

The second-hand car selling business in Ballart, Australia is quite unique in the market since it provides quality second-hand cars which are well maintained, accident free and with mileage that ranges from 6,000-12,000 for a period of 2-3 years that the car has been operational, refurbished ones will be sourced directly from the manufacturers in Germany and Japan. Moreover, the cars will be relatively affordable, since they cost below the market price of other competitors in this industry (Deza, & López, 2014). The business should offer aftersales services to customers on purchases made as well as other car related issues. Thus, the free services should range from an 80 day money back guarantee on cars bought, consultation services on the best and fuel efficient models, car maintenance and car spare parts shopping. On the other hand, the business will also stand out from other competitors due to the after sale services that it provides for the clients. In this case, this venture should offer free driving lessons for clients who have not taken up driving lessons. Offering car servicing for the purchased vehicles from the motor yard
will ensures that the sold cars are ready to be used right after being purchased. The second hand car business will offer partial payment method to customers at 55% deposits that will be quite convenient for the local customers in Ballart.

  1. Customers

    1. Customer demographics

The customers to be targeted are the individuals from the upper and lower middle class who are in need of a car but are under a limited budget in Ballart. This target group entails both men and women whose lifestyle is not quite expensive and they are willing to part with a certain limited amount of money for a moderate car that they can use as a means of transport (Deza, & López, 2014). This target group also prefers a car that is economical to maintain and its overall expenses do not scale too high. In this case, this target group prefers an efficient car that serves the main purpose of moving them from one place to another as opposed to a luxurious car which would require relatively a lot of money for maintenance (Plank, 2012). On the other hand, this target group highly prefers value for their money considering that they are under a tight budget. Moreover, the needs of this target group are not quite luxurious rather they are focused on going for the cheapest but valuable option when meeting their needs and this presents an opportunity for the second-hand car business in Ballart. Also the target group would entail individuals with an income that is below AUD 30,000.These are individuals whose income earning is not quite substantial however, they would be open to welcome the thought of owning a car through a mode of payment that does not hinder their ability to make similar purchases.

    1. Key customers

The business’ key customers are the working class and business men and women whose profession puts them on a strict schedule therefore, cannot over rely on the public transports. These individuals are often inclined to look for their own means of transport which will be suited to their tight work schedule. Parents from the upper middle class who intend to purchase a sustainable car which is relatively cheaper for their children will also form part of the key customers (ABS, 2010). These particular key customers mostly go for second hand cars since they are less costly, not quite luxurious but guarantee a certain level of performance and efficiency. They target these key customers by being more vigilant in their advertising where they will embrace social media and other forms of advertisement to put the word out there within these key customers’ reach. Further schools will be targeted, as some students would like to be bought for cars that they can use in their daily routines. Their key customers, also involve individuals with small families but with limited amount in income. Thus, they cannot over spend in buying expensive cars. Hence, their budget containment allows them to go for the second hand cars which are not expensive. In addition, these individuals go for economical cars that have the guarantee to last for a longer period and those that their expenses are on the lower side.

    1. Customer management

They will maintain good relationship with their customers by ensuring that they provide them with quality cars as per their preferences. In addition to this, the techniques that they will use in maintaining a good relationship with their customers is provision of after sales services such as providing them with free driving lessons and car servicing for a three month period after they have purchased a car
(Business Government Australia, 2012). They will ensure that their customers come back by offering promotion and discounts in different periods within the year. They will also offer good customer management by offering their customers free car consultations. In this case, they will be offered with key insight on car maintenance, purchase and purchase for car spare parts.

This will ensure that these customers are able to get their cars in relatively reduced prices than those who bought them in the first place (Weber, 2009). They should introduce customer service standards where they offer a certain level of customer service to their returning, first time and potential customers. In line with their customer service standards they also ensure that the company staffs treat the customers well, whether they are making any purchases on not (Cherbakov et al., 2005). This will also ensure that the customers coming into this place of business are welcomed by an attendant in accordance to the highest level of professionalism which is likely to convince them to make car purchases from their business. Moreover, they will follow a particular code of practice which entails asking the customers their order of preference for the car they intend to purchase, asking them of their budget and then giving them a list of the cars to choose from based on their budget and preferences
(Deza, & López, 2014).

  1. Competitors

They should highly rate their competitors considering the different approaches that they have taken up in this business and their willingness to offer quality second-hand cars as well as their value on transparency and integrity in this business (Business Government Australia, 2012). However, this business should seek to improve on what they offer in order to attract more customers and curve a niche for the business in Ballart and Victoria as a whole.

    1. Competitor details table


Established date

Market share (%)

Value to customers



Peter Stevens Motors

03/ 08/ 2004

13 staffs & turnover of A$250,000

Price of product

Sell cars at relatively low prices

Majority of their car are not of good quality

Ballarat car sales

02/ 04/ 2010

7 staffs & turnover of A$150,000


Their car are of good quality

Sell cars at relatively high prices

Ballarat cheapest cars

03/ 09/ 2011

10 staffs & turnover of A$150,000

Sell high quality cars

Rarely have a variety of cars

Auto world Ballarat

04/ 02/ 2014

20 staffs & turnover of A$350,000


Have a variety of cars to choose from

Sell their cars at relatively high prices

Ballarat Holden

01/ 11/ 2010

18 staffs & turnover of A$300,000


Have a variety of cars to choose from

Sell their cars at relatively high prices

Reptile Gulch Car Sales

02 /12/2012

15 staffs and a turnover of A$ 250,000

They have quality cars and offer them at relatively cheaper prices compared to the market price

The do not have a variety of cars which their customers could choose from depending on their preferences.

Ballarat car works

04 /10/2010

10 staffs and a turnover of A$ 200,000


They have a variety of second hand cars which the sell relatively cheaper

The quality of their second hand cars is not quite high considering that most of their cars have frequent mechanical problems.

Table 1: Competitor details table

  1. Market Research

The research that they should conduct to analyse the market should be based on the budget that potential customers are willing to part with for a second hand car and whether they are willing to compromise the quality of the car for reduced prices. In finding this information they should use parametric tests (Plank, 2012).

  1. Market targets

The planned sales target will be selling 51 cars in a month which will accumulate to 612 cars in a year. However, in the first few months 7-10 cars will be sufficient as they seek to capture a significant market share for the business in Ballart before advertising it in the whole of Victoria.

  1. Industry analysis

Based on the conducted market research this area is experiencing gradual population growth. Moreover, there are a number of businesses within Ballart which could be considered as potential long-term employers. These businesses and companies located within Ballart contribute to the economic stability of this area therefore, the area is economically stable (Business Government Australia, 2012). Due to the high population in Ballart, Victoria the market size is relatively bigger. The growth potential is available in car sales business considering that the population within this area is hugely comprised of youths who might not have the money to purchase cars but may be willing to hire them for a given time period. Entering this market will make it more competitive and the customers may be quite scarce considering the number of businesses operating in this industry (Austlarian Business Government. (2014).

  1. Marketing strategy

The overall marketing strategy will entail being more aggressive in their marketing campaigns with an emphasis on differentiated products and prices. For print advertisement milestone they will need to come up with a well written and easy to read posters and billboards to attract more customers. For the online advertisement they need to be more aggressive in putting their online advertisement messages in various social media platforms in order to create abuzz for the business and boost its popularity (Weber, 2009). They should employ direct mailing as well, thus, they should be more aggressive in writing as many mail advertisements as possible in order to capture a significant market share for the business. In the media releases they should involve celebrities in order to create buzz for the business which will boost its popularity, even organize for road shows and free public cars washing sessions. They should also host events in order to put the word of the business out there. For the website they should ensure that it is attractive, easy to read and contains detailed information for the readers to understand what the business entails. For social networking the business should hold events where business executives will be in attendance therefore, the public can interact with them. The business should give offers to the public as well as guarantee good services in an effort to improve its public relations as part of their promotions strategy. Branding strategy will help the company focus on creating a brand that relates with affordable second hand car selling business in Ballart (Deza, & López, 2014). On the other hand, the business should also focus in creating publication for the public to enlighten them about the business, the offered products as well as the prices and other essential announcements.

The entire business team should therefore be responsible for completing these marketing tasks. These marketing tasks should be expected to be completed within the first three month of opening of the business (Walker et al., 2005). The total expected cost for these activities is estimated to be A$ 135,000. The success indicator that will need to be met for this activity to be considered a success is meeting of the proposed sales targets.

  1. Advertising and sales

    1. Advertising and promotional strategy table

Advertising type:

Promotional strategy

Expected business improvement

Print media

They should use this type of advertisement due to the fact that it can be easily seen.

They will use it by placing billboards and posters that are well written, attractive and easy to read.

It is expected that this will attract more potential car buyers to the business due to its strategic placement and the fact it is easy to read.

Two months after the start of the business

Online advertisement

They should use this type of advertisement due to the growing usage of social media in this current day and age. The strategy that they should use under this is by placing their online advertisements in as many social media platforms as possible in order to get the message out there.

It is expected that this will attract more potential car buyers to the business due to its strategic placement

Two months after the commencing of business


They should use this type of promotion due to the lasting impact it has on both the public and the potential customers. The strategy they should use is giving out gift vouchers to customers when they purchase cars.

It is expected that this will attract more potential car buyers to the business due to the lasting impression that gifts have on human beings.

First month of opening business

Table 2: Advertising and promotional strategy table

    1. Sales strategy

The sales technique that they should use is the empathy close. The strategy behind these techniques is by appearing to understand the buyer’s point of view as well as their needs through a close connection (Business Government Australia, 2012). This is different from other competitors since in this case, the main objective is creating a close connection with the buyer in Ballart in an effort to convince them that what you are offering them is for their own best and it is also value for money (Hoque et al.,2013).

    1. Sales and distribution channels table

Channel type


Percentage of sales

Distribution strategy

Shop front

Car hire services

They should use this strategy due to the convincing impact that it has on the car purchasers since through this channel they are able to view and test the cars of their choice before purchasing them. The strategy behind this channel type is impacting on the buyers through convincing these potential buyers to make their purchases since they are able to see a test the product (Hoque et al., 2013).


Car hire services

This channels is relatively cheaper and its placement guarantees that it would be seen by a huge number of people in the internet.

The strategy behind this channel is its cheapness and the fact that it has a relatively huge potential to be seen by a lot of potential buyers.

Car hire services

This channel is essential and very promising in capturing relatively high number of customers. The strategy behind this channel is its cheapness and the fact that it has a relatively huge potential to be seen by a lot of potential buyers.


Car hire services

This channel offers a wide range of cars to the purchasers therefore the likelihood of these cars meeting the buyer’s preferences is quite high. The strategy behind this channel is convenience in meeting the car purchasers preferences therefore, offering a wide range of second hand cars for them to choose from.


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