4 Best Auto Spare Parts Marketing Strategy
It can be challenging to work in the auto parts industry. The right auto parts marketing strategy can increase sales, boost profit margins, and encourage repeat business. Despite the fact that Internet-specific marketing is still a young industry, successful general marketing principles have been demonstrated year after year.
Kotler Marketing Plan Outline
An auto parts marketing strategy can be written in the Philip Kotler style, which is a traditional format. It takes this form:
- Executive summary: An overview of the suggested marketing strategy in brief.
- Situation in current marketing: Background information that is pertinent to the (automotive) market, product, rivalry, distribution, and macroenvironment.
- Analysis of the opportunity and the problem: a list of your main opportunities, threats, strengths, weaknesses, and any product problems.
- Objectives: your marketing strategy’s objectives Sales volume, market share, and profit are all covered.
- Marketing strategies: Your auto parts marketing plan will be successful if it uses a broad marketing strategy.
- Action programs: This outlines the following steps, who is responsible for what, when it will be completed, and how much it will cost.
- Projected P&L: a summary of the projected financial results.
- Controls: How the marketing strategy will be evaluated.
The Issue/problem Plan Format
Another traditional format to use is this one. It takes this form:
- Executive summary: contains the issue that needs to be resolved, the main problems, the suggested solution, and the difficulties.
- The problem: Short description of the issue at hand.
- Key issues: The issues and solutions are defined.
- Alternatives: an examination of any “on-the-table” answers to the issue at hand.
- Proposed solution: a synopsis of the proposal, a timeline for action, benchmarks, measurements, and KPIs, as well as a budget and odds.
- Major challenges: Organizational, financial, or time constraints that have an impact on long-term planning.
- Expected outcomes in brief: a list of the outcomes that are anticipated as a result of this plan.
- Next plan’s timetable: When to create a follow-up strategy.
More suggestions for your auto parts plan are provided further down. These articles are intended for auto dealers and suppliers. There are almost 20 articles with fantastic suggestions for expanding your business.
These marketing strategies are covered in these plans and articles, along with recommended best practices.
These articles are beneficial whether you use programmatic marketing, online marketing, social media marketing, traditional media, or any other type of marketing.
Four Spare Parts Marketing Strategy
We’ve built our strategy around providing excellent service to the niche of beginning racers. There are numerous small race teams in this region who are unable to purchase goods or services from large suppliers who only work with professional race teams. Also:
- What starts as a modified version of a standard product, catered to the requirements of regional racers, may eventually develop into a niche product that will meet the requirements of comparable racers across the nation.
- In order to eventually connect with particular types of racers across significant geographic boundaries, we are planning our marketing strategy.
- We concentrate on meeting the needs of novice race teams.
- Instead of concentrating on cutting edge technology that is targeted at professional race teams, we concentrate on follow-on technology that we can bring to the general public.
Southeast Racing Parts’ retail marketing plan is focused on developing a corporate image that precisely defines our market niche in terms that are advantageous to our customers. The following additional tactics will be used:
- Print Ads – During the initial stages of growth, it will be crucial to keep Southeast Racing Parts’ name in front of the customer. To keep our name and phone number in front of the consumer, we intend to run limited space ads in the local racing newspapers. In an effort to maximize ad revenue, we might try to highlight just one product. In the past, we have found it challenging to demonstrate measurable revenue from these kinds of advertisements. In the future we plan on utilizing Stock Car Racing magazine and Circle Track magazine (both national magazines) as a method of increasing our sales revenue.
- Press Releases – The local racing publications: The Racing News, Late Model Digest, Dirt Late Model Digest, and The Pit List have offered to run releases and/or stories concerning the opening of Southeast Racing Parts. Stock Car Racing magazine has also extended us the same offer. The aforementioned media will also be used to promote new product releases.
- Race Car Sponsorship – Beginning racers may be persuaded to display the Southeast Racing Parts logo on their race car in return for a small discount on their purchases and/or technical support.
- Decals – The Southeast Racing Parts logo will be printed on decals. Every order that we ship will come with the decals. Particularly novice racers take pride in decorating their race cars, haulers, tool boxes, etc. with decals.
- Apparel – Numerous locals that manufacture NASCAR apparel are people we know. To cut inventory costs, a line of high-end apparel from Southeast Racing Parts could be created and produced in incredibly small quantities. To further promote Southeast Racing Parts, these can be sold or given away with qualifying purchases.
- Grand Opening – The most profitable in-store marketing strategy is a grand opening. With manufacturer assistance, many door prizes can be distributed while simultaneously generating a mailing list. A few high volume consumable products with loss leaders will draw customers into the store. Vendors will provide a rebate or kickback as compensation for loss leader pricing. Additionally, Southeast Racing Parts would gain exposure through appearances by prominent figures in the local racing scene.
- Trade Shows – Approximately four regional trade shows will host our booth each year. We will make more money at the performances than we spend going to them.
- Word of Mouth – By providing first-time customers with excellent service and a reasonable price, word will get out quickly. Additionally, the many contacts in the local racing community that we already have in the business and among the racers will be very helpful in spreading the word.
All marketing decisions regarding particular media selections, frequency, size, and expenditures will be made continuously while giving careful consideration to the returns produced.
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Our catalog, which was previously covered in this plan, will be our primary means of sales promotion.
Our customers will purchase our goods from us on-site. But in order to meet or beat our sales forecast, we expect a sizable amount of mail order sales. Orders placed by phone, fax, or mail will be processed right away, and the products will be delivered using United Parcel Service.
Many of our vendors have offered drop shipping as a service to us in the event that we are out of an item or we don’t stock it. This will enable us to maintain our service standards while controlling our inventory levels.
Future research on the viability of electronic commerce with a secure website will be done in-depth.
Particularly value-conscious are our clients. We need to make sure the racers think our prices and services are a good value. The one message that stands out from our nearly thirty years of experience in the racing sector is this: someone can always beat you on price.
Our pricing strategy therefore aims to be competitive across the range of product categories without letting the selling price overshadow the other benefits of working with our company. We will market ourselves using a broad range of high-quality products that are easily accessible, affordably priced, and supported by our exceptional customer service. Before shipping, the goods will be inspected, and all shipping dates will be kept.
By year four, we plan to steadily increase our modest gross profit margin from year one.
Southeast Racing Parts is a new company, so we are aware that we will need to demonstrate our value to racers in order to gain their trust and business.
Most importantly, we need to market our business rather than just the things we sell. Our service and support capacities will need to be pushed.
Our current sales forecast is shown in the following table and related charts. For the next three years, we expect sales to increase steadily.
The racing industry is impacted by our seasonality, as depicted in the chart. From January through June, we usually sell a lot more, while in the late summer and fall, sales tend to decline.
These forecasts are very likely to be achieved, according to management.
When Performance Racing Industry completed its annual survey, the resulting figure for total number of racers was 385,000. Additionally, they discovered that 150,000 of those were oval track racers in the survey. Additionally, the survey revealed that all segments collectively generated $1.5 billion in annual retail sales, with the oval track segment accounting for 48% ($720 million) of that total.
The average annual retail expenditure of oval track racers is calculated as $4,800 by dividing the amount ($720 million) by the quantity (150,000 racers). We estimate that each of our customers will spend, on average, 25% of that amount ($1,200) with us based on past transactions. Finally, it is demonstrated that we will require 292 customers to support the sales forecast numbers by dividing our first year sales forecast ($350,000) by $1,200 (average annual customer purchases). Overall, we think that these are numbers that are attainable and realistic.
Many of our suppliers, some of whom are listed below, are capable of forming reliable strategic alliances with us.
- (omitted to protect confidentiality). They will set us up as a Warehouse Distributor (W.D.) without the buy-in requirement.
- (omitted to protect confidentiality). If they can, they’ll help us succeed by doing whatever they can. Give us a show car to put on display in our showroom, if possible.
- (omitted to protect confidentiality). They’ll make us look like a W.D. without the buy-in requirement.
- (omitted to protect confidentiality). They’ll set us up as a W.D. and could also be persuaded into extending us special terms.
- (omitted to protect confidentiality). They’ll set us up as a W.D. and help out as needed with additional terms.
- (omitted to protect confidentiality). They have created a dealer account for us and will drop ship as required.
- (omitted to protect confidentiality). They’ll make us appear to be a W.D. without the buy-in requirement.
- (omitted to protect confidentiality). They will cooperate with us by drop-shipping directly to our customers and by serving as a “paper warehouse” so that we can place direct orders with manufacturers for a small billing fee.
- (omitted to protect confidentiality). could be convinced to extend the date on our initial stocking order.
- (omitted to protect confidentiality). They will give us used testing equipment without charging us. They have said they’ll also add special conditions and/or dates to initial stocking orders.
- (omitted to protect confidentiality). We will receive their free 94-page, 4-color catalog from them.
- (omitted to protect confidentiality). They’ll present us as a direct W.D. without the buy-in requirement. will likewise help us market their goods in this region.
We will be greatly assisted by the two nearby warehouses listed below in regulating our own inventory levels while still providing our clients with quick service.
- (omitted to protect confidentiality).
- (omitted to protect confidentiality).
If approached properly, these suppliers and many more will help Southeast Racing Parts establish itself as a dominant force in the industry.
Sample topic text for milestones.
The milestones table and chart provide specific information regarding the program activities that must be carried out throughout the year. Each one has a manager, a beginning date, an ending date, and a budget. We will monitor implementation throughout the year and provide reports on whether these activities were timely completed in accordance with the plan.
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