MotorpointThe Car Supermarket

Brand Transformation Plan

Sahar, Lisa, Andrea, Melanie, Nicolas and

Frederique

Table of Content The current Motorpoint situation

Analysis of the Brand

Brand development

Conclusion and Recommendations

The Current Motorpoint Situation

OPPORTUNITIES

- Possibility to develop a penetration strategy- Potential to build brand equity- Build up on younger customer base

STRENGTHS

- 15 Years of experience in the car market- Wide georgaphical reach- Recognition within the industry-Wide range of vehicles- Recognized as a good quality service

WEAKNESSES

- Blurry definition of ‘who we are’ and ‘what we offer’- No market segmentation/positioning- No customer analysis-No integrated communication plan- Abstract core values

THREATS

- Competitors are copying Motorpoint - Preference for manufacturers- You can get older cars for cheaper somewhere else

Brand Analysis

Analysis

• Currently the brand is not being used as a strategic tool in its current market environment

• The brand does not generate preference with buyers, act as a barrier to entry, deter substitution products or reduce competition.

• However the brand does build brand equity amongst suppliers increasing their buying power.

Present Position

Potentialentrants

Substitutes

BuyersSuppliers

Competitive

Rivalry

Threat ofentry

Bargainingpower

Bargainingpower

Threat ofsubstitutes

Competitors and what they focus on

Offering an enjoyable and memorable experience Modern & user-friendly website

World‘s largest car dealership

Offering services and repairs

Constantly changing range of cars (every 60 days new ones)

Personal (family-owned) and experienced (since 1959; high standards of customer service)

Competitors Positioning

The hassle-free way to buy a car• Great value cars, browser-friendly dealerships, upfront, 'no pressure' approach,

buying is hassle-free.

Giant choice, giant saving• Up to 5,000 cars in Stock, no pressure sales, multipoint checks on every car, low

prices.

drive happy• 1 year servicing , guarantee and MOT free , RAC accident care, quality checked

cars, test drives, part exchange

Your car your way• Price match promise, different business model, easy ways to pay, wide choice, 7

day money back guarantee

Right Car- Right Price• High standards of recognised and awarded service quality, laregest in North West

England,

AnalysisStrategic issues

Low

High

High

Brandingsscope for strategicinfluence

Strength ofbrand capability

• The brand does reduce purchase risk but does not communicate the firm’s purpose or objectives.

• The brand does not influence the industry structure. It does not contribute to the USP of the firm, therefore the brand is a threshold resource.

AnalysisPresent position

Perceivedproduct / service

benefit

Price

Low

High

High

1

2

3

4

5

6

7

8‘No frills’

Lowprice

Hybrid

Differentiation

Focusseddifferentiation

Strategiesdestined forultimate failureThe

strategy clock :

competitive strategy

options

AnalysisPresent position

Valueequity

Loyaltyintentions

Brandequity

Relationshipequity

Futuresales

Pastsales

• Motorpoint can improve sales by improving their brand equity as this would greatly improve their customer loyalty.

• Currently they are trying to focus on too many customer groups therefore brand equity is weak.

• The brand does

not add value to their offering.

WeakStrongStrong

AnalysisStrategic issues

Scope for strategic influenceStrength of brand capability

Number ofBrands

High

LowHigh

• There is a risk here of inter-portfolio cannibalisation.

• By offering a

wide range of brands which targets different segments, Motorpoint is affecting their customer loyalty, the relative market share and their cash flow variability.

Number ofSegment

AnalysisStrategic issues

Low

High

High

Complementary of Product/Service messages

Importance of communication in brand choice decision

• Currently the brand does not place any importance on communicating on their brand identity and values.

• The marketing communication tools are not coordinated in a view to convincing the target.

• There is no reviewing of the effectiveness of communication campaigns

Analysis: Summary• Brand equity is

weak

• The market is competitive; everyone offering the same values

• The brand power is being under utilised

• Poor communication of brand values

• No clear market segmentation

Brand Development

The brand identity

Central Idea

Product

Behaviour

Business Environmen

t

Communication

The brand identity

Central Idea

The central idea: ‘Who we are’ revisited

Motorpoint: ‘the car buyer champion offering unrivalled choice, value and service’

£

Choice

A Car Purchase ExperienceAt Motorpoint, we strive to provide you the best car purchase experience with a wide range of cars, good value for money and unrivalled services.

ValueService

The central idea: main concept

MODERNISATION

IDENTITY

AN EMOTIONAL BRAND

MORE CUSTOMERS, MORE LOYALTY, MORE WOM

Modernisation: the logo

FROM

TO…

The central idea: main concept

The brand identity

Product

Product: recommendations

What makes Motorpoint different ?

The cars?

No! The ‘Experience’!

That is, the service that you can get at Motorpoint!

Consider yourself as a SERVICE company.

You should highlight your service offering, not the ‘cars’ that you sell.

Product: recommendations

You should make your service offering CLEAR and TRANSPARENT.

There should be a clear definition of your offering in terms of what is included in:

PRE-SERVICE DURING SERVICE AFTER-SERVICE

Remember: a service company needs to focus on:

Concretely,

PEOPLE PROCESS PHYSICAL EVIDENCE

The brand identity

Behaviour

Behaviour: recommendationsYour core values : deliver happiness, team spirit, communicate by listening & sharing info, adventurous, responsibility, integrity, honesty, passionate,

determined

Too many – too ABSTRACT for the customer

FOCUS on 3: Transparency • Be clear about your offer (no tricks)• Provide all information to the customer (website)

Personnalization• Tailored approach for each customer - each customer is

unique and you have the cars to match this uniqueness!

Responsibility• Make the customer feel ‘safer’ by ensuring after-sales

contact• Maintain high quality check

The brand identity

Business Environmen

t

Business Environment: recommendations

Your competitors are doing the same thing as you do!

You can’t compete on Price anymore.

Setup a benchmarking process to constantly assess competitors offerings:

-What do they have on their website that you don’t have (e.g. filter cars by budget)?- How do they develop their identity (e.g. Brand video)?- What are their reviews? What makes them ‘growing fast’?

You have to differentiate by offering a UNIQUE customer experience.

The brand identity

Communication

Communication: recommendations

The Solution: An integrated marketing communication approach => ONE IDEA across all communication channels. - Communicate on the core offer (synthesis)- The message to communicate: on the experience, not on the price only!

Discrepancy between your offer and the message you communicate.

Problems: Blurred message – who are you? No logic across communication channels Inappropriate look & feel of the website

The core message

Advertising

Website

Use of Social Media

Communication: recommendations

The core message

7 Reasons Why You Should Purchase Your Car at Motorpoint:1. More than 30 car brands

available2. Pre-inspected 18-month old to

brand new cars3. Unrivalled prices due to bulk

purchase savings4. Recognized car seller in the

industry with over 15 years of experience

5. Unbiased and honest car purchase advice

6. Vehicle preparation and same day drive away service

7. Dedicated pre-,during- & post-purchase service

Make a synthesis of your offerin a clear and short message.

AdvertisingProblems: It doesn’t catch the attention!It doesn’t deliver a clear message.

What we advice:

-Add emotions and identity in your ad-Emotions: use one of the following: humour, fantasy, emotion, sexy, animation…- Identity: maybe a symbol/a mascott to represent Motorpoint?-Use an advertising agency (for creativity & professionalism)

AdvertisingOur proposal :

- Based on humour- Based on one concept:

‘buying a car is a difficult decision, BUT Motorpoint makes it easier’!

- Objective: catch the attention !

FROM...

TO...

PS: Third pictureWhen typing ‘Motorpoint’ on Google Image!

Website The website conveys a ‘cheap’

image of the brand (e.g. Spamming)

It is difficult to understand what you offer when we only see your website!

Some recent improvements

What we advice:

-State clearly what you offer and who you are in the landing page- Modernize the design so that the website fits with the quality of the company.

From...

To...

Social Media Our advice:

Blogs: create interesting content for your customers (advice for car buyers, your own point of view of cars, change in the industry)

Facebook/Twitter: engage with your customers! Ask them questions (e.g. Car battles, difficult decisions experiences...)

Make sure the info you broadcast on social media is relevant to the customer!

Conclusion

Conclusion

A unique customer experience as a new way for differentiation

A logic in the integrated marketing communication: more identity, more emotions

Hire marketing professionals to come up with creative ideas.

OK… but why we should do

this?

Because strengthening your brand is essential in

this industry. Otherwise your

competitors might steal your market.

THANK YOU