Marketing Management Company Plan - Cam Tech Automotive

[endnoteRef:2] [2: Cam Tech Auto. (2015). Are you Tired of Impersonal Service and Shady Service Advisors? Retrieved from Cam Tech: http://www.camtechauto.com]

Cam Tech Automotive Marketing Plan Tomislav Granic, Michael Camilleri, Jerome Marbella & Keli ToyotaSheridan College

Table of Contents

Executive Summary41. Market Situation8a) Definition of the Market8b) Market Size and Growth10c) Segmentation of the Market14d) Distribution Channels17e) Consumer Needs18f) Consumer Preferences21g) Consumer Perceptions25h) Consumer Buying Behavior Trends262. Cam Tech Autos Business Situation28a) Sales28b) Market Share29c) Target Markets30d) Positioning35e) Marketing Objectives36f) Promotion Strategies37g) Product / Service Quality Strategies41h) Pricing Strategies433. Competitive Situation45a) Definition of Primary and Secondary Competition45b) Review of Competitors47A-OK Auto & Tire Centre47Sils Complete Auto Care Centre69Canadian Tire Auto Centre924. Macro-environment Situation110a) Demographic110b) Economic111c) Natural113d) Technological114e) Political / Legal115f) Socio / Cultural1165. SWOT Analysis118a) Business Strengths Analysis118b) Business Weaknesses Analysis122c) Market Opportunities Analysis126d) Market Threats Analysis1296. Key Issues132Key Issue #1 Limited Capacity132Key Issue #2 Lack of External Presence134Key Issue #3 Lack of Awareness of Competitive Advantages136Key Issue #4 Operating in a Changing Industry1397) Recommended One Year Objectives141a) Financial Objectives:141b) Overall Marketing Objectives and Rationale1438. Marketing Objectives1469. Recommendations16210. Proposed One Year Marketing Budget18011. Marketing Controls185a) How the 17 Recommendations Address the 4 Key Issues185b) Monitoring and Evaluating of the 17 Recommendations19312. Appendix202Endnotes219

Executive Summary

This proposed marketing plan for Cam Tech Automotive focuses on two major sections. The first being an analysis of the market including an analysis on the mechanic industry itself, an analysis on Cam Tech Automotive, a competitive analysis and a macro-environment analysis.

The second major section focuses on objectives that will improve upon the 4 key issues of Cam Tech Automotive. These objectives include increasing sales, profits, awareness and overall business strength. This is done through the use of 17 recommendations.

The recommendations analyzed within this report can be seen below:

To address Key Issue #1 Limited Capacity, Cam Tech should consider the following:

1. Remove the tenant in the shop and make space for the 5 vehicle bays that are available to compete with competitors and to cater and service to more customers at once. Access to this space is pivotal for business growth.

2. Revamp hours of operations to include being open on the weekends in order to service new time starved markets. The inflow of new customers and markets with this put in place will be huge.

3. Hire an administrative assistant to help run the front of house along with social media. Having an employee specifically for running the front of house and social media allows the mechanics to focus on their core responsibilities. 4. Update the websites online booking system to improve the customers experience and increase online traffic. Intuitive, in real time booking systems eliminate massive amounts of hassle. With this eliminated comes a constant stream of online booking. To address Key Issue #2 Lack of External Presence, Cam Tech should consider the following:

1. Utilize better signage outside the business to draw in customers in by increasing awareness. The more signage that is prominent, the more people will be aware of Cam Tech. This will lead to trial buyers and eventually repeat buyers.

2. Extend traditional advertising from only flyers/posters to newspaper and radio ads to broaden the appeal and equity of the brand. Just like above, this will lead to more people trying out and eventually loving Cam Tech.

3. Offer sales promotions all-year round as this will help retain current customers and potentially draw in customers who never would have come in the first place. These promotions will cause people to become repeat customers versus leaving the brand for competitors with better promotions.

4. Implement an all-encompassing social media strategy to make use of what is seen as the most popular way to market in this day and age. Social media allows businesses to reach users they never could have, this can turn into increases in awareness and revenue.

5. Overhaul the Cam Tech website as it is outdated and does not offer a pleasant user experience. Overhauling it will drastically improve online traffic. Clean looking, user friendly websites that are constantly updated are integral to a business success in this day and age.

To address Key Issue #3 Lack of Awareness of Competitive Advantages, Cam Tech should consider the following:

1. Develop a Cam Tech product line to extend current offerings, create new revenue streams and increase brand awareness. Creating competitive advantages and giving customers what they want is key to staying ahead of competition. 2. Create a Cam Tech mobile application to add on to their product line to improve and enhance customer satisfaction through important appointment reminders or updates. With so many people using their cell phone for multiple hours a day, Cam Tech needs to be able to access them during these times. The app will help cause repeat business with updates and notifications.

3. Introduce a loyalty program in the form of a stamp card, which will increase customer happiness and make them want to continue to come to Cam Tech. With a stamp card people will look forward to coming back everytime they look at their wallet.

4. Implement a customer relationship management database of clients to track both the business and customer activity. Keeping track of customers in order to see how to best service them and best improve the business are very smart moves for Cam Tech to follow.

5. Create a joint venture partnership with the car wash/detailing business right across the street to boost traffic massively. Having positive relationships that benefit both parties with local businesses will lead to unexplored markets. 6. Create relationships with the senior demographic to get a piece of the largest demographic in Canada. The largest demographic in Canada needs specific targeting. Letting them know you can service their needs will help build a loyal following.

To address Key Issue #4 Operating in Changing Industry, Cam Tech should consider the following:

1. Look into investing in new technologies, training and equipment to offer unique selling propositions that cater to the ever-changing market. New technologies being utilized leads to more competitive advantages, more servicing options, and more business. The market is changing, keeping up is a must.

2. Implement shuttle services for those having their vehicles worked on. This allows for an increase in customer satisfaction and will help with brand awareness. Many competitors use shuttle service to help with customer satisfaction. This could be an avenue Cam Tech could go down in order to raise levels of satisfaction and revenue.

Implementing these will lead to an improvement in the business as a whole.

1. Market Situation a) Definition of the Market

Cam Tech Automotive is owned and operated by Glenn Camilleri and operates in the Auto Mechanic industry in Mississauga, Canada.

In this sector, operators perform mechanical and electrical repairs of automotive vehicles. These vehicles consist of passenger cars, vans, trucks and trailers.[endnoteRef:3] [3: Petrillo, N. (2015, July). Auto Mechanics in Canada. Retrieved from IBIS world: http://clients1.ibisworld.ca/reports/ca/industry/default.aspx?entid=1689]

Auto mechanics in Canada often work for small shops, garages or independently.[endnoteRef:4] [4: Ibid.]

Secondly, capital investments dont have a lot of opportunity to substitute for tasks which are performed via labor. Therefore capital intensity is low and labor intensity is high.[endnoteRef:5] [5: Petrillo, N. (2015, July). Industry Outlook. Retrieved from IBIS World: http://clients1.ibisworld.ca/reports/ca/industry/industryoutlook.aspx?entid=1689#IL]

Thirdly, there is heavy fragmentation and competition in this industry as dealers, gas stations, franchises and at home repairs are all competing in the same industry.[endnoteRef:6] [6: Ibid.]

Lastly, in this industry there are no new constant groundbreaking products as current ones are clearly defined and established.[endnoteRef:7] [7: Ibid.]

This industrys level of regulation is moderate and steady as most regulations come from the manufacturing level vs the mechanic level. The rules, legislations and regulations that the auto mechanics do have to follow consist of safety regulations acts, vehicle standard acts, vehicle inspections tests, emissions standards, the recycling of used oil and hazardous goods/waste transportation.[endnoteRef:8] [8: Petrillo, N. (2015, July). Operating Conditions. Retrieved from IBIS World: http://clients1.ibisworld.ca/reports/ca/industry/operatingconditions.aspx?entid=1689#IA]

In Ontario, emissions tests are required every two years.[endnoteRef:9] [9: Ibid.]

In Canada, mechanic training, an apprenticeship, examinations, in school training and paying membership fees are all usually required to become a certified mechanic.[endnoteRef:10] [10: Ibid.]

There is steady amount of low industry assistance for auto mechanics in Canada. The Automotive Industries Association of Canada (AIA) National Institute for Automotive Service Excellence (ASE) Canadian Automobile Association (CAA) The three main associations that help mechanics. Apart from these three, there really arent other trade groups helping out.[endnoteRef:11] [11: Ibid.]

The barriers to entry for this sector are moderate and are staying constant. These consist of large initial capital requirements, skilled labor access, industry certifications, and machinery requirements.[endnoteRef:12] [12: Petrillo, N. (2015, July). Competitive Landscape. Retrieved from IBIS World: http://clients1.ibisworld.ca/reports/ca/industry/competitivelandscape.aspx?entid=1689]

Globalization in this industry has consistently stayed low as most establishments are operating out of single garages. Nationwide or even province wide locations owned by a sole proprietor are not common whatsoever. Franchised auto mechanic shops are seen across Canada, but they do not spread out beyond the country as it isnt feasible to send a car overseas, work on it, and send it back to its original country.[endnoteRef:13] [13: Ibid.]

In the auto mechanic industry, vehicle segmentation also takes place. Some shops operate only on trucks, motorcycles, luxury cars, foreign cars, diesel cars, domestic cars and some strictly only on one brand of car

Service segmentation also occurs. There are full service shops and limited service shops. Some strictly focus on transmissions and others on brakes for example.

b) Market Size and Growth

In Canada, over the past five years the auto mechanic industry has grown as shown in the table below.[endnoteRef:14] [14: Petrillo, N. (2015, July). Key Statistics. Retrieved from IBIS World: http://clients1.ibisworld.ca/reports/ca/industry/keystatistics.aspx?entid=1689]

From 2010-2015 the industry has grown by $797.2M.[endnoteRef:15] [15: Ibid.]

By 2020, the industry is estimated to grow by $107.5M.[endnoteRef:16] [16: Ibid.]

Overall, the industry looks like it will continue to do well in future years, albeit at a slow place.

The auto mechanic industry in Canada is in the mature stage of its life cycle. Technological change is slow as its majorly determined by the auto manufacturing industry. When there are no manufacturing technological advances, the technology updates in the mechanic industry stagnates.[endnoteRef:17] [17: Petrillo, N. (2015, July). Industry Outlook. Retrieved from IBIS World: http://clients1.ibisworld.ca/reports/ca/industry/industryoutlook.aspx?entid=1689#IL]

One thing to take note of is how revenues are looking to increase but numbers of establishments are looking to decrease.

With the IVA (industry value added) rising, the industry will continually contribute to the economy at an average annual rate of 1.4%.[endnoteRef:18] [18: Ibid.]

Employment is set to be on the rise in the forthcoming years.[endnoteRef:19] [19: Petrillo, N. (2015, July). Key Statistics. Retrieved from IBIS World: http://clients1.ibisworld.ca/reports/ca/industry/keystatistics.aspx?entid=1689]

With Canadas per capita disposable income on the rise this means individuals will have more money to put toward their cars.[endnoteRef:20] [20: Ibid.]

The graph below shows how new vehicle sales have been on the rise and are projected to continue selling well. This is a threat to the mechanic industry, as newer vehicles dont require as much maintenance and part replacements.[endnoteRef:21] [21: Petrillo, N. (2015, July). Industry Performance. Retrieved from IBIS World: http://clients1.ibisworld.ca/reports/ca/industry/currentperformance.aspx?entid=1689]

Revenue volatility is low and not a major problem in this industry as its been the average absolute change in revenue over the past 5 years has been 1.3%. When the economy is in a downturn, mechanics are utilized less, but this doesnt happen too often and when the economy is doing well, regular car tune ups are utilized.[endnoteRef:22] [22: Petrillo, N. (2015, July). Auto Mechanics in Canada. Retrieved from IBIS World: http://clients1.ibisworld.ca/reports/ca/industry/operatingconditions.aspx?entid=1689#IR]

There is a low level of market share concentration in the auto mechanic industry because of the sheer amount of competition. The top four operators accounted for less than 5% of industry revenues in 2015.[endnoteRef:23] [23: Petrillo, N. (2015, July). Competitive Landscape. Retrieved from IBIS World: http://clients1.ibisworld.ca/reports/ca/industry/competitivelandscape.aspx?entid=1689]

As seen below, enterprises with 1-4 employees take up the largest percentage of the marketplace.[endnoteRef:24] [24: Ibid.]

Seen on the next page, the higher the population and vehicle concentration of an area, the more auto mechanic establishments there will be to service the needs of consumers. Seen below, Ontario has the highest amount of auto mechanic establishments of Canadian Provinces.[endnoteRef:25] [25: Petrillo, N. (2015, July). Products & Markets. Retrieved from IBIS World: http://clients1.ibisworld.ca/reports/ca/industry/productsandmarkets.aspx?entid=1689]

Multiple research platforms were utilized, providing information only on Canada as a whole. Information on Ontario and Mississauga specifically was unable to be found.

Key takeaways from this market are that there are a lot of external changes going on, which will cause the market to continually grow annually.

c) Segmentation of the Market

Seen below is how the market is segmented, product and service wise. [endnoteRef:26] [26: Ibid.]

Two major points which are both very interesting.[endnoteRef:27] [27: Ibid.]

First, due to increasing per capita income and declining Canadian unemployment rates more car owners are spending money on unscheduled, miscellaneous repairs. This has caused this segment to continually increase over the past 5 years.[endnoteRef:28] [28: Ibid.]

Second, the scheduled and preventative maintenance segment has remained consistent high as a percentage of revenue over the past five years.[endnoteRef:29] [29: Ibid.]

Seen below is how the market is segmented, customer wise.[endnoteRef:30] [30: Ibid.]

Most customers are individual customers, taking up almost of the market segmentation. This segment has been growing slightly over the years as per capita income has increased.[endnoteRef:31] [31: Ibid.]

Businesses whose core services revolve around the use of motor vehicles are the next major market segment. This consists of business like taxis, limousines, and trucking.[endnoteRef:32] [32: Ibid.]

Other consists of federal, provincial and local governments which includes law enforcement and public transit. This particular segment has remained stable over the years.[endnoteRef:33] [33: Ibid.]

Segmenting this market into consumer and business segments is the most effective way to go.Consumer: Classic Car Lovers Geographic: Mississauga, Toronto, Oakville, Milton Demographic: 40-60 males Psychographic: Cars are their life Behavioristic: High loyalty and usage status

Average Joe Drivers Geographic: Same as above Demographic: 25-50 females/males Psychographic: Cars are used for work. Family and work is life Behavioristic: Medium loyalty and usage status

Young New Drivers Geographic: Same as above Demographic: 17-24 males/females Psychographic: School is most important Behavioristic: Low loyalty and usage status

Business: Uber Drivers Geographic: Same as above Demographic: 25-45 males/females Psychographic: Outgoing and car is most important for business needs Behavioristic: Medium loyalty and usage status

Security Personnel Geographic: Same as above Demographic: 30-45 males/females Psychographic: Reserved and car is most important for job requirements Behavioristic: High loyalty and usage status

Using the Requirements for Effective Segmentation is also needed here. Measurable: Cars and drivers are large markets which can easily be measured and tracked.

Accessible: Cars and drivers are ever popular and are easily reached in highly populated areas.

Substantial: Cars are known as the main form of transportation nearly worldwide. Almost every family has at least one. This is a VERY substantial market. With so many cars, you will have plenty of issues that need a mechanic to be taken care of.

Differentiable: Different drivers require different needs. There are average Joe drivers, luxury drivers, car collectors, racers, first time drivers, senior drivers and so forth. Each of these responds to marketing differently.

Actionable: Breaking up the segments into 3 main consumer segments, the Average Joe, Young New Drivers and Classic Car Lovers is what we will focus on. Cam Tech is a two man operation; therefore they don't have the manpower to services all the different types of driver segments mentioned above.

d) Distribution Channels

All services performed take place at an auto body shop, either company owned, franchised or privately owned.

Any parts used to repair a customers vehicle are ordered from other companies, these can include dealers and manufacturers.

These shops are very brick and mortar based, there are next to zero online options. This results in low globalization as mentioned in the definition of the market.[endnoteRef:34] [34: Petrillo, N. (2015, July). Competitive Landscape. Retrieved from IBIS World:http://clients1.ibisworld.ca/reports/ca/industry/competitivelandscape.aspx?entid=1689]

Mechanics that do house calls also exist, although these are usually for small jobs and occupy a small percentage of the market share.

Independent shops being the best seem to be the consensus. With their low cost provider strategies, heavy specialization and one-to-one relationship building, people feel the most comfortable.

Chain stores such as Midas, Mr. Lube and Canadian Tire Garages operate with more of an upscale environment. The amenities and atmosphere are usually high quality, made so customers feel at ease. These chains feature higher prices and less on specialization and focus more on general jobs.

Dealers have the least amount of individual relationship building but because they are associated with a particular brand, they have good specialization. Prices are known to be high as well.

e) Consumer Needs

Mechanics that are staying on top of current technology trends[endnoteRef:35] [35: Ibid.]

Vehicles are becoming more technologically advanced. Having mechanics that have access to these technologies and are able to repair them is a big need.[endnoteRef:36] The more technology changes, the more mechanics have to adapt. [36: Ibid.]

Classic Car Lovers: This segment doesnt need mechanics to be on par with technology standards as hot rods dont utilize updated technology.

Average Joe: With new car sales on rise, the average car driver needs their mechanic to be able to service their cars accordingly.

Young New Drivers: With new car sales on rise, new drivers need their mechanic to be able to service their cars accordingly.

Uber Drivers: Uber drivers utilize GPS systems in their car, therefore a mechanic who knows how to deal with them is a large need.

Security Personnel: With security cars not operating with heavy interior technology, they dont need mechanics with heavy technical knowledge.

Convenience[endnoteRef:37] [37: Ibid.]

A well-known term for real estate is location, location, location. This holds true in the auto mechanic industry as they are a physical based store whose location contributes to its success. As seen in the population distribution chart in the description of the market, a mechanics location depends on where the most people are driving. Another aspect in regards to location is being situated in an area where there are appropriate income levels, the higher the better. When you are located in a convenient area, people will flock to you, whereas if youre out of the way, people will avoid you.

Classic Car Lovers: These drivers will travel far distances to be able to find someone who can appropriately work on their cars, this is why convenience isnt a high priority for them.

Average Joe: With a mechanic being located in a convenience area, the average car driver would be more inclined to go there.

Young New Drivers: With a mechanic being located in a prime area, a new car driver would be more inclined to go there so they can get situated with the mechanic and start to build a reputation.

Uber Drivers: Uber drivers need to be able to get their car work done quickly in an area that isnt in the middle of nowhere.

Security Personnel: This business segment operates on the same rationale that the Classic Car Lovers does, in the sense that they will go out of their way for superb service instead of convenience.

Superior after-sales service[endnoteRef:38] [38: Ibid.]

Superior customer service allows operators to differentiate themselves based on their service and people differentiation. Going above and beyond after the sale is what consumers want.

Classic Car Lovers: These drivers really appreciate the great after sales service as they operate on a high level of loyalty due to the relationship building.

Average Joe: After sales service is one major way that new customers become long term customers. The Average Joe segment is definitely influenced by this.

Young New Drivers: New drivers arent quite looking for that after sales service right away as they are very inexperienced and are mostly looking for the job to be done.

Uber Drivers: Uber drivers know all about how important relationships are between customer and business, therefore they look for mechanics who can offer this.

Security Personnel: This business segment also looks for great service, reason being, they are very selective and go to specific mechanics.

A very skilled workforce[endnoteRef:39] [39: Ibid.]

As vehicles become more advanced and complicated, consumers are looking for skilled staff who can deal with these changes.

Classic Car Lovers: These drivers will travel far distances to be able to find someone who has the skills to deal with classic hot rods.

Average Joe: With a car being the main source of transportation from home to work, average Joes need their cars to work. Therefore they need to have trust in the skills of the mechanic workforce.

Young New Drivers: Young new drivers dont really know what theyre looking for in a mechanic so they go to whoever can get the job done. Eventually they will transition into the average Joe driver target market and start seeking skilled workforces.

Uber Drivers: With a car being a Uber Drivers livelihood, they definitely need to be find mechanics who are skilled enough to deal with car problems and fix them effectively.

Security Personnel: This business segment operates on the same rationale that the Classic Car Lovers does, in the sense that they will go out of their way for superb service.

f) Consumer Preferences

Proximity to central hubs[endnoteRef:40] [40: Ibid.]

This variable functions as ties in with the convenience variable. When a mechanic is located next to areas of interest, shopping centers, or public transit, it makes it easy to drop your car off and continue on with your day.

Classic Car Lovers: These drivers will travel far distances to be able to find someone who can effectively work on their cars, this is why proximity to central hubs isnt a high priority for them.

Average Joe: With a mechanic being located in a prime area, the average car driver would be more inclined to go there.

Young New Drivers: With a mechanic being located in a prime area, a new car driver would be more inclined to go there so they can get situated with the mechanic and start to build a reputation.

Uber Drivers: Uber drivers need to be able to get their car work done quickly in an area that isnt in the middle of nowhere.

Security Personnel: This business segment operates on the same rationale that the Classic Car Lovers does, in the sense that they will go out of their way for superb service versus location. Word of mouth recommendations[endnoteRef:41] [41: Ibid.]

Due to this industry mostly consisting of small-scale shops, a shops reputation is something that its success truly hinges on. People want the inside scoop on how a shop is and how they treat their customers.

Classic Car Lovers: These drivers have such a niche need that finding a mechanic who can help them is really influenced by word of mouth.

Average Joe: Average Joes want to hear good things about a mechanic, so word of mouth really helps with this.

Young New Drivers: Because Young New Drivers are so inexperienced with mechanics, any word of mouth they receive will sway them.

Uber Drivers: Uber drivers truly rely on their car, without it, they make no money, therefore they need a good mechanic who is trustworthy, and they learn about these mechanics from word of mouth referrals.

Security Personnel: This business segment is picky because they need someone specific for the job; therefore word of mouth helps narrow the selection process.

Affordable Pricing[endnoteRef:42] [42: Ibid.]

Consumers want to be able to save money where possible and having a mechanic that offers affordable rates is definitely a plus.Classic Car Lovers: With very peculiar needs, these drivers are not necessarily looking for the cheapest or most affordable pricing. They know that they have to pay for what theyre looking for.

Average Joe: Average Joes dont have plenty of money to waste on mechanics that are expensive for no reason; therefore they look for mechanics who offer affordable prices.

Young New Drivers: New drivers, especially young ones are very price sensitive so affordable pricing is a big preference.

Uber Drivers: Uber drivers truly rely on their car, without it, they make no money, therefore they need a good mechanic who is trustworthy, and they learn about these mechanics from word of mouth referrals.

Security Personnel: With a niche need, these business personnel arent looking for the cheapest option, but rather the one that serves their needs the best.

Value Added Services[endnoteRef:43] [43: Ibid.]

Waiting areas, replacement vehicles, entertainment options and refreshments are all value added services that will give companies a competitive edge.Classic Car Lovers: The value added services preference is not a high priority for these drivers as it does not really concern them. As we keep stressing, these people are more so looking for the expert service.

Average Joe: Average drivers want to build a relationship with their mechanic and one way this is accomplished is by value added services. Seeing these services will show average drivers that their mechanic cares enough to go above and beyond.

Young New Drivers: Newer drivers are really focused on mechanic prices, considering they just got a car and dont have a lot of money. Based on that, value added services may actually work against new drivers because they will see those services as an addition to the price they have to pay. Uber Drivers: As mentioned previously, Uber drivers know all about wooing customers, so when they are offered value added services, they appreciate it.

Security Personnel: Similar to the Classic Car Lovers, this segment doesnt care for the extra bells and whistles and instead wants more stability and great work.

Strong Branding This where the chain stores see success, they focusing on branding to mass markets to draw them into familiar looking stores and logos. Some consumers prefer this as location a chain store is easy.

Classic Car Lovers: As mentioned multiple times, this segment isnt too reliant on strong branding, but rather strong mechanical skill. This is low in their preference priority list.

Average Joe: This segment has more of a priority in regards to strong branding, simply because their needs arent extremely intricate. Strong brands can easily draw them in.

Young New Drivers: This segment is engrossed by strong branding because of their experience in the market. Uber Drivers: These drivers dont focus on strong branding as that isnt what theyre truly looking for. They would rather have someone they can understand, relate to and can work on their car efficiently.

Security Personnel: This second business segment operates similarly to the one above, in the sense that branding doesnt truly sway them.

g) Consumer Perceptions

The auto mechanic industry has many negative preconceived notions associated with it in regards to shady business practices. [endnoteRef:44] [44: Dillinger, S. (2014, June 06). 5 Things Your Mechanic Doesn't Want You to Know. Retrieved from Huffington Post: http://www.huffingtonpost.com/sam-dillinger/5-things-your-mechanic-do_b_5516820.html]

Many people feel mechanics rip customers off, over charge, claim working parts need replacement and so forth. This is a stigma that has been attached to the industry for a long time.

Plenty of consumers previously thought dealerships were the way to go for the best mechanical work. This has been shown to not be the case as dealerships service credibility has decreased due to lack of education provided from dealer to consumer.[endnoteRef:45] [45: Smart Marketing. (2015). Changing Perceptions One Customer at a Time. Retrieved from http://narpro.com/2014/02/changing-perceptions-one-customer-time/]

Consumers feel social media is one smart way for auto mechanics to go. This platform easily enables the auto mechanic businesses to get in touch with the customers, and be friendly toward them.[endnoteRef:46] [46: Julia, L. (2013, September 25). How an Auto Repair Shop is Winning Female Customers With Social Media. Retrieved from http://www.socialmediaexaminer.com/social-media-case-study-victory-auto/]

Constantly interacting with them when they arent in need of repairs to build that connection that is usually only built in the shop is smart.

Women in the auto mechanic industry are under appreciated and underutilized. Many customers see this as a mans job and it creates a high barrier to entry for women to enter the mechanic workforce.[endnoteRef:47] [47: Seymour, R. (2013, October 21). SHIFTING OUT OF NEUTRAL: THE AUTOMOTIVE INDUSTRY. Retrieved from http://www.womenofinfluence.ca/2013/10/21/shifting-out-of-neutral-automotive-industry/]

Women influence 80% of new car purchases in 2010. 44% of primary vehicle drivers are women. Women and some men want to change how overlooked women are in this industry and want people to know they can work just as hard.

h) Consumer Buying Behavior Trends Demand for the auto mechanic industrys services depends on several factors. These include disposable income and employment levels. [endnoteRef:48] [48: Petrillo, N. (2015, July). Products & Markets. Retrieved from IBIS World: http://clients1.ibisworld.ca/reports/ca/industry/productsandmarkets.aspx?entid=1689]

When unemployment is high this usually goes hand in hand with per capita discretionary income being low. When these two factors take place, consumers are less likely to spend money on discretionary services and will likely skip scheduled car maintenance. Cost-saving methods are utilized more frequently during times of economic uncertainty. Do-it-yourself fixes increase in popularity as the Canadian economy declines.

Another factor influencing demand is the sale of new vehicles. Due to planned obsolescence, manufacturing technology innovations and deterioration through wear and tear the older a vehicle the more likely it will need major repairs and tune ups. If more new cars are being sold, mechanics will be less utilized, whereas the inverse occurs if more old/used cars are being sold.[endnoteRef:49] [49: Ibid.]

Another demand determinant is when the business/government aspect of mechanic usage is on the rise. When more people are buying limo and taxi services, they will need more maintenance. Similarly, if there are increases in police departments, fire departments and public works vehicle usage, those cars will need more repairs.[endnoteRef:50] This relates to the Uber driver segment, if more people are purchasing Uber services, cars will need more maintenance. [50: Ibid.]

In this industry the consumer purchases by going into the brick and mortar location, speaking with the technicians/mechanics and dropping off their vehicle which will be picked up later, usually within a day or a few.

When it comes to Canada and the specific region Cam Tech is located in, another major demand determinant is weather. Canadian winters are very harsh and as winter comes around, snow tires and maintenance is done. Similarly, when winter is over tune ups and the putting on of summer tires occur. A lot of average Joe drivers utilize seasonal maintenance, the classic car lovers do so as well.

Consumers frequent mechanic shops more often when they have a high amount of confidence in receiving quality service at competitive prices.[endnoteRef:51] [51: Petrillo, N. (2015, July). Competitive Landscape. Retrieved from IBIS World: http://clients1.ibisworld.ca/reports/ca/industry/competitivelandscape.aspx?entid=1689]

As seen in the service segmentation chart earlier, scheduled maintenance is another core driver of purchases. When brakes need replacing, or oil needs changing, you buy from your mechanic. This is mostly the average joe driver.

When a car is being purchased you take it into a mechanic to get it inspected, this is a frequent use of their services.

New drivers use the inspection method often, but apart from that they also get a general tune up once a new car is purchased, facilitating more new user buying.

When cars come off dealership warrantee, people seem to move away staying with the dealer for future jobs. Reason being, they are expensive, dont form a connection and dont teach you about your car. Because of this, people look for an independent mechanic.[endnoteRef:52] This relates to the young new drivers and average joe drivers segments. [52: Smart Marketing. (2015). Changing Perceptions One Customer at a Time. Retrieved from http://narpro.com/2014/02/changing-perceptions-one-customer-time/]

2. Cam Tech Autos Business Situation

a) Sales

We are not allowed to show any financials of Cam Tech Automotive online, as requested by the owner. Seen above are the revenue numbers for Cam Tech Automotive for the past 3 years. Their fiscal year is from July to June. Their revenues slightly dipped from 2013 to 2014 but then surpassed the 2013 figure in 2015. Some interesting points to take note of are that tires are increasing in revenues, oil changes are decreasing, and labor revenues took a slight decrease in 2015 and miscellaneous dealer parts also took a hit in 2015. Profits and expenses were not available.

Cam Techs offerings are productized as:[endnoteRef:53] [53: Glenn Camilleris Product/Services Quality Strategies]

Air Conditioning Service and Repair Tune-Ups Brakes Suspensions & Chassis Ontario Drive Clean Inspections, Diagnostics & Repairs Exhaust System Repair, Replacement and Fabrication Tires Oil Change and Lubrication Other Future recommendations may include focusing on the more successful product lines and dropping the failing ones. This tie into the Pareto Principle, where you want to focus on the small amount of things giving you the largest amount of money vs the opposite.b) Market Share

Cam Tech Automotives market share is currently unknown due to there being multiple competitors nearby. We asked Cam Tech what their take on their market share was and they told us they had absolutely no concrete number for us and if they were to guess he would say 1% or lower.[endnoteRef:54] [54: Glenn Camilleris Market Share]

Cam Tech has approximately 75% of their business coming from consumers and 25% coming from businesses. The business aspect includes security personnel vehicles.[endnoteRef:55] [55: Ibid.]

The following is a list of nearby competitor auto mechanic shops:[endnoteRef:56] [56: Ibid.]

Mississauga Auto Centre A-Ok Auto & Tire Sils Auto Care Centre Active Engines Mister Mechanic Canadian Tire Midas

Seen below is Cam Tech Autos location in regards to the nearby competitors. They are located at 2355 Royal Windsor Dr, Mississauga, ON L5J 1K6, Canada.[endnoteRef:57] [57: Google. (2015). Mechanic . Retrieved from https://www.google.ca/maps/place/Midas/@43.5058196,-79.6462722,15z/data=!4m5!1m2!2m1!1sMechanic!3m1!1s0x0000000000000000:0x9fb4a5f486c05029?hl=en]

c) Target Markets

Based on the five customer segments we listed above in the segmentation of the market, we have chosen the three consumer segments as Cam Techs main target markets. These are seen below.

Classic Car Lovers (Primary)

GeographicRegion

Density

City/Size[endnoteRef:58] [58: Development, M. E. (2011, September 14). Population.]

Ontario

Urban, Suburban

Mississauga 713,443Toronto 2,615,060Oakville 182,520Milton 84,362

DemographicAge

Gender

Marital Status

Income

Occupation

Education

Home Ownership40-60

Male

Single, Married

$200,000+

Professional

High School, University/College

Home Owners

PsychographicsPersonality Traits

Lifestyle

Hobbies/Interest

Media Habits

Technology Usage Social, Reserved about everything except their car

Confident, Materialistic, and Independent

Car Shows, Car Collectors, Hot Rods/Classic Cars

Newspaper, TV, Radio, Out-of-Home

TV, Smartphone

BehavioristicsMain Occasion for Service

Main Service Benefit Sought

Primary & Secondary Service Usage

Frequency of Use/Purchase of Service

Service Usage Rate

Service Loyalty Tune-Up, Oil/Fluid Change, Electrical Fix Up

Performance: More efficient car

Primary: Vehicle Tune-Up (Ex: Transmission) Secondary: Touch-Ups

Biannually First Day of Summer and Last Day of Fall

High usage status

High to extremely high

Average Joe (Secondary)

GeographicRegion

Density

City/Size[endnoteRef:59] [59: Ibid.]

Same as primary

DemographicAge

Gender

Marital Status

Income

Occupation

Education

Home Ownership25-50 Male, Female

Single, Married

$20,000+

Professional

High School, College, University

Home Owners, Renters

PsychographicPersonality Traits

Lifestyle

Hobbies/Interest

Media Habits

Technology UsageExtroverts / Introverts

Positive, Sharing, Hard Working

Work and social events

Internet, Newspaper, TV, Radio

Desktop, Laptop, Tablet, Smartphone, TV




Service Usage Rate

Service Loyalty

Automobile Repairs

Primary: Vehicle Tune-Ups ( Brakes, Oil Change)Secondary: Small Tune-Ups

Monthly, 3-4 Months, Biannually

Medium User

Medium loyalty

The target market above is also important to Cam Tech as it is the bulk of drivers that are on the road.

These average Joes drive average vehicles that require no special treatment, just regular maintenance and tune-ups.

This target market is considered major accounts to Cam Tech.

These customers are fairly local to Cam Tech, living in Mississauga, Oakville, Milton and Brampton.

Young New Drivers (Tertiary)

GeographicRegion

Density

City/SizeSame as primary and secondary target markets

DemographicAge

Gender

Marital Status

Income

Occupation

Education

Home Ownership17-24

Male, Female

Single, In a relationship

$15,000 - $20,000

Student

High School, College, University

Living with parents, Renters


Lifestyle

Hobbies/Interest

Media Habits

Technology Usage

Extroverts / Introverts, Social

Energetic, Positive, Independent

School, Socializing, Social Media, Music, Movies

Internet, TV, Radio





Service Usage Rate

Service LoyaltyAutomobile Repairs

Primary: Vehicle Tune-Ups (Brakes, Oil Change)Secondary: Small Tune-Ups

3-4 Months, Biannually

Light User

Some loyalty

This target market gives Cam Tech the least amount of business but is still very important because they have the potential of moving from general accounts to major ones.

The types of vehicles the young new drivers have range from old beaters to new leases.

The types of services they receive from Cam Tech are very general such as fixing brakes, timing belt, changing tires, oil changes etc.

These customers are also local living in Mississauga, Oakville, Milton and Brampton.

d) Positioning

To new drivers, long time drivers, and car enthusiasts, Cam Tech Automotive is a superb auto mechanic shop with over fifteen years of experience that can complete any job at an affordable price, all while providing excellent customer service.[endnoteRef:60] [60: Glenn Camilleris Positioning ]

They are recognized as a market follower and utilize service and people differentiation.[endnoteRef:61] [61: Ibid.]

The services they provide are top notch and in some ways are ones that no competitor can offer. This includes overall capability to work virtually any car and the ability to craft custom exhausts, while maintaining affordable pricing. The people of Cam Tech (Glenn and 1 technician) are both extensively trained, certified and very knowledgeable.

They operate utilizing a more for less value proposition as you get a great quality job for a price under the competition. This back to what was mentioned above.[endnoteRef:62] [62: Ibid.]

Cam Techs is known for stressing No job cant be completed.[endnoteRef:63] This shows how they are very experienced and knowledgeable. [63: Ibid.]

Cam Tech has the slogan The mechanic your friend told you about. which has slight humor to it which really helps it sticks in your mind.[endnoteRef:64] [64: Ibid.]

e) Marketing Objectives

To increase brand awareness/exposure by 20% in Mississauga by 2016.[endnoteRef:65] [65: Glenn Camilleris Marketing Objectives/Projections ]

To maintain and increase brand loyalty by a minimum of 10% by providing promotions and free services.[endnoteRef:66] [66: Ibid.]

Build sales by 15% in 2016 by expanding product offerings.

Achieve minimum 25% increase in online appointment booking in 2016.[endnoteRef:67] [67: Ibid.]

Cam Tech mentioned that they dont care much for online bookings as direct contact with clients is preferred in this industry. We think otherwise. Increasing online bookings will increase the amount of direct contact you get, because the customer still has to come in physically one way or another.

f) Promotion Strategies

a) Advertising

Cam Tech Automotives website provides customers with details of their products and services and allows customers to book appointments online *See exhibit 1*.[endnoteRef:68] [68: Glenn Camilleris Advertising Strategies]

Word of mouth advertising is also major outcome of Cam Techs services.[endnoteRef:69] [69: Ibid.]

Acquire a tire/steering wheel alignment machine would enable Cam Tech to advertise how he can service more customer needs.[endnoteRef:70] [70: Glenn Camilleris Marketing Objectives/Projections]

No radio, outdoor, roadside, store front, store window or transit advertising utilized.[endnoteRef:71] This is a big area of improvement. [71: Glenn Camilleris Advertising Strategies]

Apart from the techniques mentioned, Cam Tech does not utilize much advertising. [endnoteRef:72] This needs to be worked on to help achieve brand awareness and sales goals. [72: Ibid.]

Social media is not used whatsoever and this is an area for large amounts of success.[endnoteRef:73] This needs to be worked on to help achieve brand exposure and sales goals. [73: Ibid.]

b) Sales Promotions

Cam Tech utilizes mass marketing techniques consisting of flyer and poster distribution. These are distributed around Cam Techs geographical area.[endnoteRef:74] [74: Ibid.]

They promote winterizing and summarizing vehicle specials. No specific numbers or details were given.

Cam Tech Automotive provides a winter tire promotion enabling customers to get a discount on tires during the fall and winter.[endnoteRef:75] [75: Glenn Camilleris Sales Promotions]

*See exhibit 2* for a picture of the 2015 mail in rebate options customers have if they chose to use this promotion.[endnoteRef:76] [76: Cam Tech Auto. (2015). Has Old Man Winter Stopped Your Car in its Tracks? Retrieved from Cam Tech Auto: http://www.camtechauto.com/winter-tires-2/]

Apart from this, Cam Tech does not offer and utilize other sales promotions.[endnoteRef:77] [77: Glenn Camilleris Sales Promotions]

Testimonials are not used.[endnoteRef:78] [78: Ibid.]

No loyalty program, frequent shopper or CRM programs implemented.[endnoteRef:79] [79: Ibid.]

Platforms including and similar to Groupon are not utilized.[endnoteRef:80] [80: Ibid.]

No in-store displays featuring promotions are used.[endnoteRef:81] [81: Ibid.]

Sales promotions are integral to a companys success, revenue, loyalty and awareness wise and more need to start being utilized by Cam Tech as soon as possible.c) Public Relations

Cam Tech Automotive utilizes their website to inform customers of their public relations activities which includes club sponsorships.[endnoteRef:82] [82: Glenn Camilleris Public Relations]

Last year, Cam Tech Auto sponsored the Professional Edge event Spring into Summer.

Cam Tech Automotive sponsors one local hockey league team annually, the Mississauga AA Braves. Glenn Camilleri is a devoted coach of the team.[endnoteRef:83] [83: Ibid.]

Cam Tech also sponsors golf tournaments. *See exhibit 3*:[endnoteRef:84] [84: Ibid.]

Cam Tech has participated in the March For the Million Cops for Cancer Campaign by donating to the cause and helping raise cancer awareness. *See exhibit 4.*

*See exhibit 5.* Cam Tech has participated in a hockey fundraising event called Pink the Rink. Resources and funds were donated to help benefit surgical robotics programs that aid in cancer surgery.

*See exhibit 6.* Cam Tech has also participated in the Mississauga Classic Car Club show called Classics on the Square. The award of Best Hot Rod was given to Cam Tech.

*See exhibit 7.* Cam Tech has also participated in the Classics Against Cancer Auto Show whose goal is to help make cancer a thing of the past. The award of Best of Show was given to Cam Tech.

No other public relations are utilized.[endnoteRef:85] [85: Ibid.]

Increasing public relations activities will definitely help increase both brand awareness and loyalty

No coverage through third party review sites apart from 2 old Google Reviews[endnoteRef:86] [86: Ibid.]

d) Selling

Cam Tech Automotive is strictly a service based business that offers car maintenance and tunes ups.

Cam Tech Automotive does not have many product offerings. Any products they sell are not their own brand, but rather resold.[endnoteRef:87] [87: Glenn Camilleris Selling]

Cam Tech Automotive sells tires, custom exhausts and if requested they can sell jugs of fluid.[endnoteRef:88] [88: Ibid.]

Apart from that, service and labor is what is sold.[endnoteRef:89] [89: Ibid.]

Sales are generated through word of mouth leads. There are no sales professionals or retail staff utilized.[endnoteRef:90] [90: Ibid.]

Through the Cam Tech Auto website, customers can fill in a contact field and get in touch with the company.[endnoteRef:91] [91: Ibid.]

Appointment booking with date and time selection is also available through the website.[endnoteRef:92] [92: Ibid.]

This is definitely an area that needs to be worked on.

Hire another mechanic to enable Cam Tech to focus on core tasks. To hire a mechanic, Cam Tech would need a minimum of $50,000 to pay their salary.[endnoteRef:93] [93: Glenn Camilleris Marketing Objectives/Projections]

This mechanic could help bring in more customers, helping achieve the sales SMART goal.g) Product / Service Quality Strategies

Cam Tech Automotive is a service based auto mechanic shop that provides excellent customer service and great vehicle tune ups. The following are the list of services provided by Cam Tech Automotive:[endnoteRef:94] [94: Glenn Camilleris Product/Services Quality Strategies]

Air Conditioning Service and Repair Tune-Ups Brakes Suspensions & Chassis Ontario Drive Clean Inspections, Diagnostics & Repairs Exhaust System Repair, Replacement and Fabrication Tires Oil Change and Lubrication Other

Great tune ups consist of jobs that are done properly and to code. No band aid solutions or subpar fixes.[endnoteRef:95] [95: Ibid.]

Excellent customer service means teaching customers about their cars, what to do with them, what not to do, what works best for your vehicle, creative solutions, overall knowledge and pleasantry and building that connection.[endnoteRef:96] [96: Ibid.]

Cam Tech Autos owner and one other technician are both fully trained in vehicle maintenance for import and domestic cars, trucks and SUVs.[endnoteRef:97] [97: Ibid.]

Cam Tech specializes in custom exhaust and repair services.[endnoteRef:98] [98: Ibid.]

A custom exhaust is an exhaust that is customized as per the clients needs. When an exhaust isnt functioning well, is too loud, is ineffective or simply isnt what a driver wants, Cam Tech can come in and repair and adjust it accordingly. This is a competitive advantage that many mechanics are not able to compete with Cam Tech on.

When other nearby mechanic shops cannot complete a task for whatever reason, they send the job Cam Techs way and they get a cut of the profits.[endnoteRef:99] [99: Ibid.]

Cam Techs gets repeat customers often, mostly due to oil and tire changes.[endnoteRef:100] [100: Ibid.]

For VIP customers, Cam Tech will go above and beyond in a few different ways. Firstly, they will bring in their cars from customer homes when normally customers have to drop off their cars. Secondly, they will go in on weekends and work even though the business is closed then. Lastly, they will send out Christmas cards to their special customers.[endnoteRef:101] [101: Ibid.]

These services could become part of the core product offering to the masses next year, albeit at a cost.

Cam Tech is able to operate on higher end vehicles including brands like BMW, Lexus, Mercedes and Infiniti and operate on non-luxury vehicles as well.[endnoteRef:102] [102: Ibid.]

Currently Cam Tech consists of 2 mechanics, Glenn and one other technician. They are both continually training to adapt to new cars and their needs.[endnoteRef:103] [103: Ibid.]

With only one other technician, this limits capacity, hence why Cam Tech is looking to add another mechanic into the mix.[endnoteRef:104] [104: Ibid.]

Cam Tech heavily focuses on high touch strategies because this industry is all about the customer and business relationship. Having a better relationship will make it so customers dont go to chain stores or locations if better prices are offered.[endnoteRef:105] [105: Ibid.]

Value equals quality over cost and at Cam Tech the quality is great and the price is much lower than competition, therefore customers get extreme value.[endnoteRef:106] [106: Ibid.]

Products are sourced from dealers, Auto Malls, the Erin Mills Auto Centre, Part Source and City Discount Auto Parts.[endnoteRef:107] [107: Ibid. ]

h) Pricing Strategies

Cam Tech Automotive provides labor services for $80/hr. This is at least $20-$30 cheaper than local dealerships, and other mechanics.[endnoteRef:108] [108: Glenn Camilleris Pricing Strategies]

This low cost labor approach is the pricing strategy Cam Tech uses to differentiate from competitors.[endnoteRef:109] [109: Ibid.]

Promotions are not used to drive price down, instead just employing a lower payment structure is implemented.[endnoteRef:110] [110: Ibid.]

Apart from this Cam Tech does not feature pricing strategies.[endnoteRef:111] [111: Ibid.]

h) Distribution Strategies

Because this is a service based business, consumers get the service done in physical brick and mortar locations. There is little to no online interactions when it comes to the auto mechanic industry in Canada because obviously a car cannot be worked on online. Most online interactions in this industry consist of emailing mechanics, setting up appointments online and viewing websites.

Cam Tech Automotive gets the psychical products they use in customers cars for service in a few different ways: 1. Dealers[endnoteRef:112] [112: Glenn Camilleris Distribution Strategies ]

Pre-ordering the parts for pick up. 2. Automotive parts wholesalers[endnoteRef:113] [113: Ibid.]

Cam Tech calls ahead for an order and receives parts when theyre on the next run to distribute parts. 3. Specialty parts that come out of the USA[endnoteRef:114] [114: Ibid.]

Specialty parts are ordered from manufacturers in the States and the parts are either shipped to a mailbox in the States and then picked up, or is delivered to Cam Tech Automotive.

Cam Techs building features 5 vehicle bays total with space for an extra car when necessary. Three are available for Cam Tech with an extra spot used as a safety net, and 2 are used for the mechanic who rents them from Cam Tech.[endnoteRef:115] [115: Ibid.]

The stores hours are:[endnoteRef:116] [116: Ibid.]

Monday: 8:30 AM-6:00 PM Tuesday: 8:30 AM-6:00 PM Wednesday: 8:30 AM-6:00 PM Thursday: 8:30 AM-6:00 PM Friday: 8:30 AM-6:00 PM Saturday: Closed Sunday: Closed

3. Competitive Situation

a) Definition of Primary and Secondary Competition

Direct Competition Direct Competition can be defined as a situation where two or more businesses offer essentially the same goods or services[endnoteRef:117]. [117: BusinessDictionary. (2015). Direct Competition. Retrieved from http://www.businessdictionary.com/definition/direct-competition.html]

Direct competition for privately owned mechanic shops consists of other mechanic shops that are in the same geographical area.

Relating this to Camtech, some of its direct competitors consist of: Mississauga Auto Care Centre A-Ok Auto & Tire Active Engines Mister Mechanic Sils Complete Auto Care Center

Apart from independent shops, franchises whose sole focus is on automotive repair are also direct competitors. These franchises usually offer more generalized basic services but are still a force to be reckoned with. Examples include: Midas Mr.LubeIndirect Competition Indirect Competition can be defined as a competition among businesses that provides similar product or services that satisfy the same needs[endnoteRef:118]. [118: BusinessDictionary. (2015). Indirect Competiton. Retrieved from http://www.businessdictionary.com/definition/indirect-competition.html]

Indirect competition can be identified as external businesses that provide some services in relation to car maintenance and tune-ups but do not primarily focus on them. Some examples are: Dealerships Gas Stations with auto service portions Particular franchises that have an auto mechanic subsection within their business. Such as: Canadian Tire Auto Centre Costcos auto mechanic shop

Other indirect competition also consists of alternate indirect approaches that caters to the similar type of consumer service needs such as: House Call Mechanics YouTube car fixing tutorial videos

b) Review of Competitors

A-OK Auto & Tire Centre

A-OK is an independent auto repair shop that has been serving customers for over 20 years. They have a wide range of services that include full mechanical, all tire needs, all esthetics features including paint and bodywork, and even used car sales. They are located in the Oakville/Mississauga area.[endnoteRef:119] [119: A-OK. (2015). People You Can Trust. Retrieved fromhttp://www.aokautocentre.com/about.html]

i) Company Background Privately owned mechanic shop owned by Mike Misheal.[endnoteRef:120] [120: Manta. (2015). Business Information. Retrieved from:http://www.manta.com/ic/mtq6mqg/ca/a-ok-auto-tire-centre]

A-OK Auto & Tire Centre was first established in 1996 and has been servicing for over 20 years as of today.[endnoteRef:121] [121: A-OK Auto & Tire Centre. (2015). Home. Retrieved from:http://www.aokautocentre.com/home.html]

A-OK features a used car lot towards the back of their location which is a major differentiation aspect. This is part of the A-OK tire group and not an independent used car lot.[endnoteRef:122] [122: Ibid]

ii) Market Share A-OK Auto & Tire Centres current market share is unknown because of the large amount of mechanic shops in the local area.

The following is a list of nearby competitor auto mechanic shops:[endnoteRef:123] [123: Google. (2015). Mechanic. Retrieved from:https://www.google.ca/maps/place/Midas/@43.5058196,-79.6462722,15z/data=!4m5!1m2!2m1!1sMechanic!3m1!1s0x0000000000000000:0x9fb4a5f486c05029?hl=en&dg=dbrw&newdg=1]

Mississauga Auto Centre (MAC) Sils Auto Care Centre Cam Tech Automotive Active Engines Mister Mechanic Canadian Tire Auto Services Midas

The picture below shows A-OK Auto & Tire Centre with 8 of its nearby competitors in the location. A-OK Auto & Tire Centres location is 2456 Royal Windsor Drive, Oakville, ON L6J 7Y3, Canada.[endnoteRef:124] [124: Ibid]

iii) Target Markets The three target markets below have been done according to the different types of services that A-OK offers. We feel that this is whom they would target the most compared to their competitors. They are very similar to Cam Techs and Sils target markets as both of these companies operate similarly in the same market.Common Driver (Primary)

GeographicRegion

Density


Ontario

Urban, Suburban


DemographicsAge

Gender

Marital Status

Income

Occupation

Education

Home Ownership25-50

Male, Female

Single, Married

$50,000+

Professional, Full-timer


Home Owners, Renter


Lifestyle

Hobbies/Interest

Media Habits

Technology Usage Extroverts / Introverts

Positive, Sharing, Hard Worker

Work and Social Events


TV, Smartphone, Tablet, Laptop, Desktop




Service Usage Rate

Service Loyalty Basic Automotive repairs

Primary: Vehicle Tune-Ups (Brakes, Oil change)Secondary: Small Tune-Ups (Light bulb, Tire pressure)

Monthly, 3-4 months, Biannually (tire change over)

Medium User

Medium Loyalty

This is A-OK Auto & Tire Centres main target market that they are mostly focused on. Most of the jobs they offer involve customers that need vehicle repairs and tune-up.

This target market would be customers from the local area of Mississauga and Oakville.

Little Crasher (Secondary)

GeographicRegion

Density


Ontario

Urban, Suburban

Mississauga 713,443Oakville 182,520

DemographicAge

Gender

Marital Status

Income

Occupation

Education

Home Ownership17-27 Male, Female

Single, Married

$15,000 - $50,000

Part- timer/ Full Timer

High School, College/University

Home Owners, Renters, Lives with parents


Lifestyle

Hobbies/Interest

Media Habits


Positive, Hard Working, Explorative

Work, social events, hanging with friends, movies

Internet and Radio

Laptop, Tablet, Smartphone




Service Usage Rate


Primary: Need to get their car body fixed (Collision with another car/object) Secondary: Small nicks(scratched frame, small dent in the doors)

Biannually, Annually

Light User

High loyalty

This target market would consist of customers that had got in a recent accident that would need full/small body work on their cars due to the accident.

A-OK is able to have a wider target market because they can cater towards more people with the wide range of services they offer such as collision repair, mechanical, and sales of used cars.

New Drivers (Tertiary)

GeographicRegion

Density

City/Size[endnoteRef:127] [127: Ibid]

Same as secondary

DemographicAge

Gender

Marital Status

Income

Occupation

Education

Home Ownership16-22

Male, Female

Single, In a relationship

$15,000 - $30,000

Student

High School, College/University

Living with parents, Renters


Lifestyle

Hobbies/Interest

Media Habits

Technology UsageExtroverts / Introverts, Social

Energetic, Positive, Dependent

School, Socializing, Social Media, Music, Movies

Internet, TV





Service Usage Rate

Service LoyaltyBuying first car

Primary: Buying first new used carSecondary: Replacing current used car with another.

Once in a life time, Annually

Light User

Small loyalty

A-OK has a tertiary target market because of their used car lot that allows them to sell cars to new drivers.

Since A-OK has a sales lot this gives them an even wider target market than just a primary and secondary market. This gives them a great competitive advantage over others.

iv) Positioning A-OK Auto & Tire Centre is positioned as a very well equipped mechanic shop that is able to resolve any automotive problems that anyone brings into their shop. With over 20 years experience they offer auto body repairs, mechanical work and even used car sales.[endnoteRef:128] [128: A-OK Auto & Tire Centre. (2015). About. Retrieved from:http://www.aokautocentre.com/about.html]

The physical area A-OK competes in is close to all many other body shops and mechanic shops.

Shown as a market follower that utilizes service and people differentiation. A-OK has a different type of service versus their competitors by offering not just a mechanical aspect but also offering collision repairs. No matter your problem with your vehicle, A-OK will make your car a-okay at a low cost compared to their competitors.[endnoteRef:129],[endnoteRef:130] [129: A-OK Auto & Tire Centre. (2015). Service. Retrieved from:http://www.aokautocentre.com/service.html] [130: A-OK Auto & Tire Centre. (2015). Collision. Retrieved from:http://www.aokautocentre.com/collision-.html]

The mechanics at A-OK are highly skilled with years of experience behind them. The mechanics love cars and treat your vehicle like it is their own to ensure it comes out feeling brand new.[endnoteRef:131] [131: A-OK Auto & Tire Centre. (2015). Home. Retrieved from:http://www.aokautocentre.com/home.html]

They operate with a more for less value proposition to ensure that each customer gets more than what they expect for their scheduled maintenance at a cheaper price than most competitors in the area.

A-OK has been striving to ensure that all customers get the most excellent quality service so that customers choose them over others and keep on coming back for more.[endnoteRef:132] [132: A-OK Auto & Tire Centre. (2015). About. Retrieved from:http://www.aokautocentre.com/about.html]

Overall they are a force to be reckoned with.

v) Marketing Objectives Increase brand awareness by 15% in Mississauga/Oakville by 2016 Increase brand loyalty by 13% by providing promotional services Increase sales by 20% by expanding service in sales for new cars and input promotions online Achieve 10% increase in call in appointments in 2016

vi) Promotion Strategiesa) Advertising A-OK Auto & Tire Centres website provides information/prices for their customers about their full mechanical/inspection services as well as also hourly rates. The used car sales section has the full list of cars they offer and their collision section shows what type of body mechanical work they offer. There is also a map of their location and information for if you need to contact them about any inquiries or appointments.[endnoteRef:133] [133: A-OK Auto & Tire Centre. (2015). Home. Retrieved from:http://www.aokautocentre.com/home.html]

A-OK has a Facebook page that is available to all its customers so that someone looking for a mechanic on Facebook is able to get the location and times of operations. A-OK uses this type of social media as a way to let its followers and new potential followers know about what kind of work they do without them having to go on the company website. This page also connects them to the community to help drive up customer life time value.[endnoteRef:134] [134: Facebook. (2015). A-OK Auto & Tire Centre. Retrieved from:https://www.facebook.com/Aokautocentre/timeline]

A-OK utilizes outside signage that is visible to everyone that passes by their location on the roads. This gives everyone who passes by a clear idea of what they offer over other competitors they might pass by along the same road.

A-OK does not feature a loyalty program or major rebates.

b) Sales Promotions Power Steering Service $99.95 For this promotion, they will check inside the power steering to make sure that the inside of the power steering grooves have not started to get worn in the soft metal of the valve housing from hardened seals. The Metallic debris from the wear will eventually cause the component to fail. One of the trained technicians will clean and flush inside to dispose of the problem inside the steering system. After all this is cleaned of the old fluid they will replace it with a high-tech fluid to protect against future problems that cause noise, wear and leakage in the system As seen below is the promotion that A-OK offers:

Transmission Service $199.95 For this promotion, they will fix up your transmission to save it. If you have experienced any slipping, hard shifting, or chattering you should take advantage of this promotion. A-OK will fix the problem that you are having with your transmission with this promotion by finding the problem so they can clean it up and flush out the old fluids that are causing this problem. As seen below is the promotion that A-OK offers:

Pennzoil Packages

Platinum full synthetic package $79.95 Superior anti-wear protection Improved fuel efficiency Protection lubrication to keep your engine running stronger longer Superior resistance to while under heavy loads SUV, Truck and Minivan Package $49.95 Better protection against engine stress under heavy loads Enhanced oil oxidation and deposit control Excellent low-temperature lubrication Superior resistance to thermal breakdown Excellent protection against engine friction as temperatures increase

High Mileage Vehicle $49.95 Reduces oil consumption caused by evaporation and leaking engine seals Increases cylinder compressions that may help improve engine performance as well power Resists oil related spark plug fouling Resists intake valve deposits Protects engine parts found in high mileage engines from wear and harmful deposits

Conventional Package $39.95 Advanced friction protection Resistance to thermal breakdown Protection against harmful deposits Security in changing climates and temperatures Resistance to oil thickening and consumption Control of oxidation

All of these packages are for specific make and models depending on what you are using it for, as some are for heavy loads and some are not. The type of Pennzoil package that they offer will be different for each customers vehicle.

c) Public Relations A-OK Auto & Tire Centre currently doesnt do any public relations with their local community.

Featured online on Google Reviews and Yelp are positive testimonials and reviews of A-OK.d) Selling A-OK Auto & Tire Centre offers full maintenance and tuneups for any kind of problem.[endnoteRef:135] [135: A-OK Auto & Tire Centre. (2015). Home. Retrieved from:http://www.aokautocentre.com/home.html]

A-OK does offer all tire and rim brands that you can find. All of these products are bought and re sold to the consumer.[endnoteRef:136] [136: Ibid]

A-OK is equipped with a collision centre for any body work that needs to be done and they are affiliated with most insurance companies and some rental car companies.[endnoteRef:137] [137: Ibid]

A-OK has a lot of used cars that are for sale that anyone can buy from or you can ask about their current auction buying.[endnoteRef:138] [138: Ibid]

They generate sales from word-of-mouth and Social Media exposure from their Facebook page.vii) Product / Service Quality Strategies A-OK Auto & Tire Centre is a different type of mechanic shop that not only differentiates themselves from excellent service for mechanical problems, but also offers body work from collisions as well as used car sales which other local mechanical shops wont have within the vicinity. [endnoteRef:139] [139: Ibid]

The list below shows what some of the services that A-OK offers[endnoteRef:140] [140: Ibid]

Complete Computer Diagnostics Complete Safety Analysis Tune-ups Oil Changes Tires Brake Repair Specialists Alignment Electrical Systems Engine Work Fleet Maintenance Steering & Suspensions

The list below shows what type of collision repairs that A-OK offers.[endnoteRef:141] [141: A-OK Auto & Tire Centre. (2015). Collision. Retrieved from: http://www.aokautocentre.com/collision-.html]

Plastic Bumper Mechanics Aluminum & High Strength Steel Mechanics Complete Vehicle Paint Jobs Rust Mechanic Frame Mechanics Replacement Parts Windshield Replacement Wet Sand & Polishing Head Light Restoration Fleet Mechanics Insurance Claims

The list below shows what kind of different used cars they have for sale.[endnoteRef:142] [142: A-OK Auto & Tire Centre. (2015). Sales. Retrieved from:http://www.aokautocentre.com/sales.html]

2004 Mini Cooper S 2005 Smart Fortwo Cabriolet 2010 Honda Civic 1999 Mercedes-Benz E320 2003 Ford E-450

A-OK specializes in a variety of different types of vehicles makes and models. The following list below is the type of vehicles that A-OK services.[endnoteRef:143] [143: A-OK Auto & Tire Centre. (2015). Service. Retrieved from:http://www.aokautocentre.com/service.html]

Acura GM BWM Cadillac Chevrolet Dodge Honda Lexus Mercedes Lincoln All other makes and models from domestic, imports, and European

A-OK differentiates themselves from other shops by offering their customers nothing but the best quality service that a mechanic shop can offer to ensure repeat customers.[endnoteRef:144] [144: A-OK Auto & Tire Centre. (2015). About. Retrieved from:http://www.aokautocentre.com/about.html]

viii) Pricing StrategiesThe prices below are what A-OK Auto & Tire Centre offers on their website and in store: Tire Services[endnoteRef:145] [145: A-OK Auto & Tire Centre. (2015). Service. Retrieved from:http://www.aokautocentre.com/service.html]

Four Wheel Alignment - $99.95 Tire Puncture Mechanic - $24.95 Tire Rotation & Balancing - $49.95 Mount & Dismount Tire - $19.95

Engine Services[endnoteRef:146] [146: Ibid.]

Inspection or Replacement 95/hr Drive Belt Fan Belt Serpentine Belt Timing Belt Heater Hose Radiator Hose Fluid Change 95/hr Brake Differential Power Steering Transmission English Flush and Fill service - $59.95

Preventative Maintenance[endnoteRef:147] [147: Ibid.]

15-point oil change service - $39.95 Battery Installation - $49.99 Filter Replacement - $19.95 Check Engine Light Service - $49.99 30,000 100,000 Scheduled Mile Maintenance

Mechanic Services[endnoteRef:148] [148: Ibid.]

AC & Heating System - $95/hr Brake Services - $95/hr Diagnosis & Evaluation Services - $95/hr Axle / CV Joint Mechanic (FWD) - $95/hr Radiator Mechanic/Replacement - $95/hr Automatic Transmission Mechanic - $95/hr Manual Transmission Mechanic - $95/hr Clutch Mechanic Service - $95/hr Four Wheel Drive Systems - $95/hr

Inspection Services[endnoteRef:149] [149: Ibid.]

Safety Inspections - $79.99 Emissions Inspection - $40 Pre-Purchases Used Car Inspection (Late Model) - $59.95 Pre-Purchases Used Car Inspection (New Model) 95/hr Pre-Warranty Inspection 95/hr

Seen below is the price list seen in store.

A-OKs pricing strategy is a competitive one. They have definitely surveyed their competitors and priced themselves accordingly.

ix) Distribution Strategies A-OK Auto & Tire Centre services can only be done within the shop.[endnoteRef:150] [150: A-OK Auto & Tire Centre. (2015). Contact Us. Retrieved from:http://www.aokautocentre.com/contact-us.html]

Interactions with the mechanic and customers only happen when they contact them online or call in to schedule an appointment.

A-OK Auto & Tire Centre has 5 bays at their location so they can service up to 5 cars at a time.[endnoteRef:151] [151: Employee, A.-O. A. (2015, October 27). (K. Toyota, Interviewer)]

The hours of operations that A-OK Auto & Tire Centre operates with are listed below[endnoteRef:152] [152: A-OK Auto & Tire Centre. Contact us. (2015). Retrieved from:http://www.aokautocentre.com/contact-us.html]

Monday: 8:00 AM 6:00 PM Tuesday: 8:00 AM 6:00 PM Wednesday: 8:00 AM 6:00 PM Thursday: 8:00 AM 6:00 PM Friday: 8:00 AM 6:00 PM Saturday: 8:00 AM 2:00 PM Sunday: Closed

Sils Complete Auto Care Centre

Sils is an independent auto repair shop that has been serving customers since 1976. At Sils, they try to implement environmentally friendly practices into their services everyday which is an advantage over the competition. Another advantage they have is that they are CAA approved which means they are able to offer more benefits to customers. [endnoteRef:153] [153: Sil's Auto Centre. (2015). Sils Auto Centre. Retrieved fromhttp://www.mechanicmississauga.com/about-us]

i) Company Background Privately owned auto mechanic business.[endnoteRef:154] [154: Sils Complete Auto Care Center. (2015). About Us. Retrieved from http://www.mechanicmississauga.com/about-us]

Established in 1976.[endnoteRef:155] [155: Ibid.]

ii) Market Share Sils Auto Care Centres market share is currently unknown due its small individualistic nature. It is expected to be extremely low due to large amounts of competition in the exact same market located in the same geographical area.

The following is a list of nearby competitor auto mechanic shops. Mississauga Auto Care Centre A-Ok Auto & Tire Cam Tech Automotive Active Engines Mister Mechanic Canadian Tire Midas

Below is an image consisting of Sils location and its competitors. Sils Auto Care Center is located at 1040 Winston Churchill Blvd, Oakville, ON L6J 7YK, Canada.[endnoteRef:156] [156: Google. (2015). Mechanic . Retrieved from https://www.google.ca/maps/place/Midas/@43.5058196,-79.6462722,15z/data=!4m5!1m2!2m1!1sMechanic!3m1!1s0x0000000000000000:0x9fb4a5f486c05029?hl=en]

iii) Target Markets The following are two consumer target markets for Sils Auto Care Center.Daily Drivers (Primary)

GeographicRegion

Density


Ontario

Urban, Suburban


DemographicAge

Gender

Marital Status

Income

Occupation

Education

Home Ownership40-60

Male

Single, Married

$200,000+

Professional


Home Owners


Lifestyle

Hobbies/Interest

Media Habits

Technology Usage Social, Reserved about everything except their car

Confident, Materialistic, and Independent

Work, Family, Children, Relaxing

Newspaper, TV, Radio, Out-of-Home

TV, Smartphone


Main Service Benefit Sought



Service Usage Rate

Service Loyalty Tune-Up, Oil/Fluid Change, Electrical Fix Up

Performance: More efficient car

Primary: Vehicle Tune-Up (Ex: Transmission)Secondary: Touch-Ups

Biannually First Day of Summer and Last Day of Fall

High usage status

High to extremely high

This target market is one of Sils highly encountered customers that they are able to cater to. They are able to service to this market by providing the necessary services required in everything car maintenance and tune-ups.

This target market is considered major accounts of Sils. Fairly local customers living in Mississauga, Oakville, Milton and Brampton.Car Guys (Secondary)

GeographicRegion

Density


Same as primary

DemographicAge

Gender

Marital Status

Income

Occupation

EducationHome Ownership25-50 Male, Female

Single, Married

$20,000+

Professional

High School, College, UniversityHome Owners, Renters

PsychographicPersonality TraitsLifestyle

Hobbies/Interest

Media Habits


Positive, Sharing, Hard Working

Work and social events



BehavioristicsMain Occasion for ServicePrimary & Secondary Service Usage

Frequency of Use/Purchase of Service Service Usage Rate


Primary: Vehicle Tune-Ups ( Brakes, Oil Change)Secondary: Custom Tune- Ups (Breaks, Engine, Tire) Monthly, 3-4 Months, Biannually

Medium User

High loyalty

This target market is viewed as VIP customers. Sils consider them key accounts.

This target market primarily focuses on custom repairs and tune-ups on domestic and import vehicles.[endnoteRef:159] [159: Sils Complete Auto Care Center. (2015). Services. Retrieved from http://www.mechanicmississauga.com/Services]

Sils is able to cater to this target market as they offer custom repair and tune ups to domestic vehicles with their highly trained mechanics.iv) Positioning Sils Auto Care Center is viewed as a high end auto mechanic shop with over twenty years of experience that caters to all drivers, all while providing professional car repair services and excellent customer service.[endnoteRef:160] [160: Ibid.]

Recognized for their five-star customer rating with hundreds of excellent customer reviews.[endnoteRef:161] [161: Ibid.]

Canadian Automobile Association (CAA) Certified.[endnoteRef:162] [162: Ibid.]

Authorized signature tire center in Mississauga/Oakville.[endnoteRef:163] [163: Sils Complete Auto Care Center. (2015). Signature Tire Centre in Oakville, Ontario. Retrieved from http://www.mechanicmississauga.com/signature-tire-centre]

Sils is also seen as a market follower that utilizes service and people differentiation. Sils provide first class services that compete with its competitors. They offer a complete vehicle tune-up from tire change, engine repair, and more. Sils also caters to all vehicle types, both imports and domestic.

All Sils mechanics are highly trained and certified. Employees are also required to undergo continual training to receive the latest information on auto repair technology and techniques.[endnoteRef:164] [164: Sils Complete Auto Care Center. (2015). About Our Team. Retrieved from http://www.mechanicmississauga.com/our-team]

Due to Sils wide line of service offerings they can be recognized as a market leader in the service space as they provide top of the line service offerings that cater specifically to the customers needs and expectations.

They operate utilizing a more for more value proposition as they deliver excellent quality job for a price that resonates with their five-star rating.

Sils Auto Care Centers mission statement is to provide customers with peace of mind by taking fear and worry out of proper auto repair services to deliver the safest, most dependable and long lasting transportation possible.[endnoteRef:165] [165: Sils Complete Auto Care Center. (2015). Mission Statement. Retrieved from http://www.mechanicmississauga.com/mission-statement]

Strive to implement environmentally friendly practices[endnoteRef:166] [166: Sils Complete Auto Care Center. (2015). Eco Friendly Practices. Retrieved from http://www.mechanicmississauga.com/eco-friendly]

v) Marketing Objectives To increase brand awareness/exposure by 20% in Mississauga and Brampton by 2016.

To maintain and increase brand loyalty by 15% by providing promotional services.

To increase market share by 10% by 2016.

Increase sales by 15% by expanding service offerings.

Achieve 15% increase in online bookings/appointments in 2016.

vi) Promotion Strategies

a) Advertising Sils Auto Care Centers website provides customers with details regarding service offerings, promotions, online bookings/appointments, customer reviews, directions, hours of operations and contact information. They also have a blog available for customers to review for more inquiries.[endnoteRef:167] This is seen below. [167: Sils Complete Auto Care Center. (2015). Sils Complete Auto Care Center. Retrieved from http://www.mechanicmississauga.com/]

Seen above, Sils has a Facebook page available for its customers to get updates on the latest promotions and news. They utilize this platform as a way to inform and connect with their customers through social media.[endnoteRef:168] [168: Facebook. (2015). Sils Auto Centre. Retrieved from https://www.facebook.com/sils.auto/?fref=ts]

Sils also utilizes a Twitter page to give their customers the opportunity to get the latest news, updates, and promotions. Additionally, Sils use their Twitter page to showcase their public relation efforts. As an active member they utilize this platform to inform and connect with their customers through social media.[endnoteRef:169] [169: Twitter. (2015). Sils Auto Centre. Retrieved from https://twitter.com/silsautocentre]

Sils also has a YouTube channel seen below consisting of video tutorials, reviews, and promotions that they utilize to broadcast informing customers of tips and tricks for vehicle maintenance and more. [endnoteRef:170] [170: YouTube. (2015). Silsauto. Retrieved from https://www.youtube.com/channel/UC2UBs06kOycdTLzRpYt4mjw]

Sils also utilizes banner ads outside their store consisting of their latest promotions and their services. These are seen below.

b) Sales Promotions[endnoteRef:171] [171: Sils Complete Auto Care Center. (2015). Specials. Retrieved from http://www.mechanicmississauga.com/coupons/]

Free check engine light scan If you notice that a warning light is on, you are able to bring your car in for a free trouble code report to see what the real problem is, if further diagnostics are required and you allow this, you will be charged accordingly. Cant be combined with any other offers and the coupon must be shown when you walk in.

Seasonal Maintenance Package $99.95 The package includes a complete vehicle inspection - brakes, lights, fluids, belts, steering, and suspension & more. Test your battery and alternator to prepare for the cold season. Fluid top offs. Oil & filter change - up to 4.5L, Synthetics, gaskets, environmental free are extra. Road test your vehicle. Vacuum & clean the interior.

$10 off oil change 1st time customers Rebate off all oil changes that is offered from the store New car warranty approved Present the coupon at check in Cant be combined with any other offer For most vehicles pricing starts at $39.99

$25 off Mechanic $25 off if mechanics are $150 or more in labor expenses One coupon per visit/applicable only for one time use Cant be combined with other offers Present coupon upon arrival

$50 off timing belt replacement Cant be combined with other offers Present coupon in advance

$20 off CAA approved pre-purchase inspection Get a car inspected before you purchase it $20 off inspection for CAA members One coupon per visit Cant be combined with other offers

The picture below consists of Sils current sales promotions they offer at their website upon booking an appointment.[endnoteRef:172] [172: Ibid.]

Sils offers a customer rewards program where they can earn valuable reward points towards the next visit at Sils Auto Center. Additionally, each reward card offers an added value of free nationwide 24-hour roadside assistance program. Sils occasionally offers exclusive and special savings for card holders in their mail, emails, newsletters, blog, or FaceBook page for customers to look out for. [endnoteRef:173] [173: Sils Complete Auto Care Center. (2015. Rewards Card Program. Retrieved from http://www.mechanicmi

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