Pre-Owned Car Marketing Strategy Data Analysis

[Audio] Hello, My name is Bailey Rigle and today I will be proposing my marketing strategy for our pre-owned vehicle company located in Albuquerque, New Mexico. I will be recommending, based on data analysis, the types of vehicles that I feel will sell best and lead to the largest profit margin for the upcoming sales period..

[Audio] The purpose of this presentation is to offer, to our company leadership, the characteristics of pre-owned vehicles currently on the market. Through this analysis, I will narrow the features that have proven to be most popular and thus predict the vehicles we should focus on adding to our inventory to best appeal to our customer base in the future. I will focus on the vehicle types that are most popular and offer the highest overall profit, based on the following characteristics: 1. Manufacturer 2. Color 3. Fuel Type 4. Transmission Type 5. Production Year.

[Audio] In order to determine the top selling manufacturers, I focused on the total revenue based on the cars available on the current market. Listed on this chart are the top ten manufacturers and the cumulative total of their vehicles' listed sale prices. Although these vehicles don't represent the the highest individually priced pre-owned cars, the cumulative sum of numerous sales will far exceed the sale of a few high-end, pre-owned cars in total revenue and thus lead to a more sustainable business model. Based on this analysis, I would recommend that our company focus heavily on the sales of these ten manufacturers as they are the most abundant and in turn will lead to the greatest profit margin. I would especially suggest that we focus on adding Ford, Chevrolet, and Ram vehicles to our inventory as they account for only 7.69% of all manufacturers, but 31.3% of all available pre-owned cars, and 34.75% of all revenue on the current market..

[Audio] Next, I would focus on adding pre-owned vehicles that are one of the top five colors. The top five most popular colors are white, black, silver, red, and blue. These five colors make up 41.67% of the known colors currently available on the market, but account for 86% of all cars currently available. This not only indicates that they are abundant, but also in high demand..

[Audio] The next category I would like to focus on is fuel type. When analyzed side by side, the two charts on this page indicate a direct correlation between the availability and revenue of pre-owned cars. Based on this information, the obvious recommendation is to focus on gas powered pre-owned cars for the greatest potential revenue. They are readily available in great abundance and in turn also yield the greatest sales profit. They account for almost 90% of all known pre-owned cars on the market and equate to over 83% of the revenue in this known demographic. However, as a side note, there seems to be an opportunity to focus on cars in the "Other" category. These include natural gas vehicles and hydrogen powered fuel-cell electric vehicles. Both have shown an increase in popularity due to their minimal to non-existent emissions. Additionally, they are the second most available and profitable pre-owned cars currently available. This might be an opportunity to get in on the ground floor of a very lucrative marketing strategy..

[Audio] This next slide shows the available market revenue based on transmission types. Not only are automatic transmissions the most abundant (accounting for nearly 70% of the total market), but they also account for nearly 65% of the available revenue with a total earning potential of $ 34.7 Million..

[Audio] Lastly, I would like to focus on production years. As we can see from this chart, the decade of 2010 to 2019 and 2020 to present represent the pre-owned car market with the highest average resale value. However, newer doesn't always mean better or in our case, more profitable. Obviously, the newer cars from 2010 to present have the highest retail value, but this trend does not translate to the decades of 1990 to 1999 or 2000 to 2009. But we do find that cars from the 1980's have the third highest resale value. With that stated, I would focus on cars from 2010 to present and occasionally pre-owned cars from the 1980's..

[Audio] Now that we have established that the years of 2010 to present are potentially our most profitable target area, this last slide further breaks down the pre-owned car market for that time period. The numbers along the bottom on the green line represent the number of available cars in our area and the line in blue represents the average resale price of cars from each of those years. This chart can be used by our salespeople to determine availability versus potential revenue when dealing with clients and potential trade in offers..

[Audio] I believe that our marketing strategy should be focused on vehicle availability and potential resale revenue. I feel that a business marketing strategy based on high volume will be more sustainable than focusing on the occasional high-end, high profit sale. In conclusion, please remember to focus on these key factors: Manufacturer – Ford, Chevrolet, and Ram Color – Red, White, Blue, Black, and Silver Fuel Type – Gasoline Transmission Type – Automatic Production Year – 2020 to Present and 1980 to 1989 This concludes my presentation. Thank you for your time and attention..