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Sullivan Ford Auto World Case Analysis
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Transcript of Sullivan Ford Auto World Case Analysis
Sullivan Ford Auto World Case Analysis
Average salesof1,100cars peryear
Posted Revenues:$26.6 M car sales (from last years $30.5 M)$2.8 M service & parts sales (from last years $ 3.6 M)Margins on car sales are low (5.5% of sales revenue & 25% for service).
Auto Worlds financial situation had been deteriorating for thepast 18 months and running at a loss for the past 6 months.Past 12 months financials show that gross sales figures are not enough to cover fixed expenses
Margins had been squeezed by promotions andother marketing efforts.
Market:
Due to rising fuel prices, industry andin-house forecasts for future sales were discouraging.Trend is shifting towards vehicle service transactions.30-day Purchasers CSAT Survey ResultsAuto world achieved better than average ratings 90%of customers said that Auto world informed them of whatto doifthey needed serviceLessthan33%of respondents said that they have been introduced to someone in the service department (which is a sales protocol)90-day Purchasers CSAT Survey Results
Overall satisfaction with Auto World Service Department was consistently low placing it in the bottom 25% of all Ford dealersMorethan50%of respondents said they wouldratheruseanother Ford dealer for future service