Marketing & Management Analysis: Car City, Australia Report

This report provides a comprehensive analysis of Car City, a second-hand car dealership in Australia, focusing on marketing and management strategies. It begins with an introduction and a brand industry market audit, assessing the automotive industry's landscape. A detailed market analysis using the PESTLE framework follows, evaluating political, economic, social, technological, legal, and environmental factors affecting Car City. The report also includes an examination of the marketing mix, including product, price, place, and promotion strategies. A SWOT analysis is developed to assess the company's strengths, weaknesses, opportunities, and threats. Finally, the report concludes with recommendations for improving Car City's marketing activities, aiming to enhance its performance and market position within the competitive automotive industry. References are included to support the analysis.

Running head: MARKETING & MANAGEMENT
Marketing & Management
Name of student
Name of University
Author note

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Table of Contents
Introduction......................................................................................................................................3
Brand industry market audit............................................................................................................3
Market analysis................................................................................................................................5
Marketing mix...............................................................................................................................10
Recommendations..........................................................................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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Introduction
The report is prepared to discuss about the marketing and management considering the
second hand car dealership in Australia named Car City. It is a popular second hand car
dealership company located in 591 Carlisle Ave, Minchinbury NSW 2770 in Australia. The topic
revolves around the concepts of marketing and how it can help in business flourishing and
influence the decisions that will be made to sustain in business. The market audit will help in
identifying the industry within which the company operates along with the present and past
industry. The market analysis is done with the use of PESTLE framework while the marketing
audit will allow for developing a SWOT analysis framework to ensure that the delivery and
service systems of Car City, Australia can meet the needs and preferences of the customers. The
topic will analyze the different concepts of marketing and management and its impact on the
business functioning (carcity.com.au, 2018). The marketing audit will be conducted for
determining the characteristics of the markets including the growth, profit, sales and distribution
along with the customers in the various market segments. The market analysis is to be done with
the analysis of micro and macro environment and even focus on the changes in demographic
conditions, socio-cultural and political factors. The audit will include analyze the four marketing
mix elements including the product, price, place and promotions while few recommendations
shall be provided too for improving the marketing activities of Car City in Australia.
Brand industry market audit
The automotive industry in Australia is one of the major sectors that produce vehicles to
deliver mobility and independence for the families and communities all over. One of the major

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sources of the automotive sector management is the automobiles that are made available at the
first hand and second hand dealership companies in Australia. The automotive sector also is
central to the economic growth and can enhance the lives of people in Australia (Armstrong et
al., 2015). The automotive sector is considered as an important industry where the raw materials
including aluminum and steel are turned into high value added products and exported all over the
world. This industry also employs more than 400000 people within the workplace and more than
1 million new vehicles are being sold every year. The Australian automotive industry is one of
the major leaders in innovation that has invested a huge amount of money in research and
development for delivering the best quality cars and at the same time, protects the environment
(Akgün, Keskin & Ayar, 2014). The industry has reduced the emissions of harmful gases from
the vehicles and even managed to develop future vehicles run by electric to create lesser harmful
impact on the environment.
The industry’s contribution to the economy of Australia is huge and so does the second
hand dealership companies, which have sold used cars to many customers and fulfilled their
demands and expectations. The annual turnover of the automotive industry in Australia is more
than $160 billion. The needs and preferences of the customers in different market segments are
different. Few of them cannot afford a new car for a high price, which makes them go for the
second hand car option while other people buy the second hand vehicles for working purposes
rather than for personal usage most of the times. It is because, they can get a car at lower price
and it will be used for various purposes, which can draw a good level of income (Gronroos,
2016). Car City, Australia serves the customers in both Melbourne and Sydney and the wide
range of second hand cars available at good condition and reasonable prices make it affordable
for the customers and their purchasing behaviors are influenced too. Car City is one of the multi

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dealers in Australia that sells used cars and due to its convenient location at north east of
Melbourne, the customers can get easy access from the Eastern Freeway and look out for the
options that can be suitable for them. Sydney is the latest addition to the Car City Group and the
company is dedicated to the sales of both private and fleet vehicles. The convenient location
helps in providing thousands of cars to choose from and obtain the value from these used cars,
thereby gain a significant and friendly car buying experience (Kotler, 2015).
Market analysis
The market analysis will assess the various factors including the political, economic,
social, technological, legal, natural, socio-cultural and environmental factors that can affect the
Australian automotive industry and create impact on the business functioning of Car City,
Australia. The automotive industry is of strategic importance for the growth in economy of
Australia. The most important economic factors include the growth, employment, technological
aspects and level of innovation that are influenced by the automotive industry in Australia. The
environmental factors are kept in mind to ensure the production and delivery of vehicles in a
sustainable manner for creating as much as lesser impact on the environment. The global
automotive industry is a huge industry consisting of several large brands that compete with each
other to increase the market share (Reinecke, 2013). The sector has grown considerably and
created enough scopes and opportunities for the growth of economy and welfare of the nation.
The large size of the Australian automotive industry has enabled consideration of various forces
creating an impact on the automotive industry and due to this; the sales have been affected as
well. The focus is shifted towards the fuel efficiency and to create a positive impact on the
environment. There was pressure regarding the control of pollution and reduction of carbon

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footprints to improve the fuel efficiency and sell low emission second hand cars in the market for
Car City, Australia (Mariani et al., 2014).
Political factors
Various political factors can affect the profitability of the automotive industry and so for
the second hand car company. The Government of Australia introduced various laws, rules and
regulations to favor the low emission vehicles and thus it should be important for Car City to
make low emission vehicles available in large numbers at the garage to attract customers. Due to
the growing demands of low emission vehicles in Australia and Government support, Car City
needs to make sure that the second hand cars they sell are environment friendly and create lesser
pollution to the environment (Baker, 2014). The taxes are different in various countries as well,
and with the Government laws and rules, there can be fluctuations. The political factors are
understood by shifting the area of manufacturing to the places where the wage related rules are
not much strict. The lower cost of labor could also affect the business functioning along with the
import laws, which can make Car City, change the prices of the cars and influence the buying
behaviors of the consumers too (Moutinho & Vargas-Sanchez, 2018).
Economical factors
The automotive industry was affected largely from the economic crisis. Due to the poor
economic conditions, often the customers focused on buying second hand vehicles rather than
purchasing new cars, which could be a boon for the second hand car company in Australia. The
taxes implemented on the vehicles often contributed to the high priced cars, which created
inconvenience for the automotive industry to sell cars. The sales of the second hand cars could
increase for Car City and should be quite successful within the developed as well as under-

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developed markets (Davis¸2013). The developed market experiences higher purchasing power
and the lower priced car variants are more demanding. One of the most important economic
factors could be the buying power of the customers and for the second hand car companies in
Australia; it could be quite beneficial as well. Customers often preferred buying vehicles at lower
prices and so they could get the best quality second hand cars that were tested at Car City and
then make a purchasing decision. The second hand car company offers fully tested and
functional used vehicles that will be easy for the customers to purchase at a reasonable price
rather than purchasing an entirely new vehicle (Keller & Kotler, 2016). With higher purchasing
power, the sales would increase, furthermore contribute to the growth in economy of the
automotive industry and the country as well.
More than 200 families are employed at Car City complex, which is considered as a
major source of income. The individuals are involved with the business operations and even
contract to the Car City dealer group. The Car City dealership company has employed a huge
number of people in different corners of Australia, which has created a good turnover of more
than $ 2.0 billion dollars through the Eastern Regions local economy (Charter, 2017).
Socio-Cultural factors
The social and cultural factors contribute largely to the market growth and development
of the automotive industry in Australia. The car companies introduce new car models by keeping
the expectations and demands of customers in mind. The customer’ buying behavior change
from time to time and they often may feel the need for low priced cars. In such cases, the second
hand car companies could be a better option. The age distribution in different market segments is
considered as an important factor to target the consumers. The social trends also change from

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time to time, which can create enough scopes for the young buyers to purchase vehicles at lower
cost from Car City (Kumar & Reinartz, 2018). The older models might not get obsolete and the
second hand car companies like Car City could sell those cars to the customers at cheaper prices,
which might even enhance the brand name, image and reputation largely. Car City maintains a
relaxed and friendly purchasing environment, which creates ease for the individuals to visit the
place with their families and share their experiences regarding the purchases of a second hand
car. This will not only maintain stable business functioning considering the local culture, but can
also benefit the organization to enhance its sales revenue (Wells, 2013).
Technological factor
This one is a huge factor that contributes to the functioning and efficiency within the
automotive sector. Technology and innovation are important aspects that can raise the market
share of the organization as well as the company will become more innovative with the
implementation of newer technologies, the more profit can the company achieve, which will
result in increasing the market share too. Huge investments are made for the research and
development activities and for making second hand cars available at Car City that produce lesser
carbon emissions and harmful gases. There are huge scopes and opportunities for the Australian
automotive industry to sustain in the marketplace by bringing technological innovation due o the
shifting of customers’ focus towards more fuel-efficient and high mileage vehicles. Thus, the
technological factors have played a huge role in influencing the profit level and sales of Car City
(Cabigiosu, Zirpoli & Camuffo, 2013). The technological implementations brought enormous
changes and improvements within the Australian automotive industry and it is friendly and
competitive. It has also created enough scopes and opportunities to browse the website managed

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by the second hand dealership companies and find out the best quality used cars offered by
professional traders for the customers at value for money and competitive prices.
Environmental factors
Being one of the largest car-shopping complex in the southern part of Australia, it is
important for Car city to deliver the products keeping in mind the safety of the environment. The
company sells good quality second hand cars at value for money prices and at the same time,
makes sure to check the transmission and emission level for ensuring that fewer amounts of
gases are emitted and lesser environmental impact is created. The vehicles that are lower on
emissions and consume less amount of fuel are provided with tax subsidies and are considered as
favorable and suitable for meeting the customers’ demands and expectations, as stated by the
Australian Government (Wiengarten et al., 2013). The pollutions tests are conducted and have
been quite strict, because of which the vehicles have been made available at Car City only after
passing through the tests. The environment friendliness is another test conducted by the second
hand car company for prioritizing on the pollution control and at the same time, maintain an
ecological balance in nature.
Legal factors
The Government laws, rules and regulations often affect the performance and
profitability of the vehicle brands made available at the second hand dealership companies. The
vehicles that were being sold in the international markets had been subjected to various laws
regarding product safety, passenger safety and quality too. The vehicles were made available
after those pass the emission control test, which not only protects the environment but also

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enhances the safety level (Jackson & Ahuja, 2016). Once the safety level is improved, customers
will feel more influenced to purchase the products and the sales revenue will increase as well.
The environmental laws, tax laws, etc. could also influence the business functioning for Car City
in the international market. The old pollution causing vehicles would be replaced with new fuel
efficient and high mileage second hand vehicles that could be available at lower prices, without
compromising on its quality for maintaining the safety standards of the drivers and passengers.
Thus the legal factors could affect the business functioning also even create positive impacts on
the way business function and comply with the laws and rules to maintain safety and quality
standards (Diabat, Khodaverdi & Olfat, 2013).
Marketing mix
From the analysis of different market segments, it was found that the needs and
preferences of the customers differ from time to time. Few people want low cost second hand
vehicles while others want high mileage vehicles to fulfill their needs and requirements. Car City
is a shopping hub that boosts of a huge collection of used cars that have passed through various
testing phases to ensure maintaining the performance and quality standards. The four principles
of marketing are product, price, place and promotions (Ruff, 2015).
Product- The products include the best quality second hand cars that can fulfill the demands of
the customers in different market segments comprising of the customers easily. The company
negotiates more than 200 cars every week through deliverance of sensational value and there are
more than 2000 quality second hand cars from which, the customers can choose from the most
suitable one. The products are offered at various locations in Australia including Melbourne and
Sydney. The products of the company including BMW 323i E46, Holden Crewman Cross 8 VZ,

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Hyundai Tucson city, Ford Focus, Holden Barina MY10, Mitsubishi Lancer, Ford Territory, etc.
are among the few. The cars are provided with necessary information such as number of
kilometers driven and type of car along with the price (MINUTTI‐MEZA, 2013). The company
also provides servicing of cars and testing of emissions, which can help to deliver the quality
second hand cars at reasonable prices considering the quality and performance of the cars too.
There are different kinds of cars available including the passenger cars, SUVs, commercial and
hybrid cars. The interests of customers top the list of priorities for Car City and his various
researches are conducted to collect data on the expectations of customers and deliver the
products accordingly to ensure high level of customer satisfaction (Lin, 2015).
Price- The prices of the second hand vehicles offered by Car City are quite competitive and
value for money, which easily influences the customers to make purchases from the company.
The prices at which the used cars are available at Car City are reasonable and competitive, when
compared with the other second hand car dealerships in Melbourne, Sydney, Brisbane, Perth or
in any other parts in Australia. There is not much costs incurred during the process of production,
as the cars are used, so the selling price is also lower. The price range of cars starts from as low
as $2500, which can influence the consumer buying behavior easily (Kotabe & Helsen, 2014).
Place- The places where the company has distributed its products are many. Car City is located
in the massive 12-acre site north east of Melbourne, which has helped in managing the business
operations easily. Sydney is the latest addition to the Car City and due to this, there are
thousands of cars to choose from for the people in Australia. The website managed by the
company could allow the customers to look at the different types of cars and the prices, thereby

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creating convenience for them to choose from. The Melbourne location is Ringwood and Sydney
location is Minchinbury (Khan, 2014).
Promotions- The promotional approaches are undertaken to increase the sales for Cr City and
the advertisements are managed by using radio, televisions, newspapers, yellow pages, billboards
and by distributing brochures and leaflets too regarding any discount offers. The advertisements
shown on televisions and few ads appear as pop ups while surfing internet websites, clicking on
which, the customers would be directed to the company website The involvement of social
media can further enhance the brand name and image, attract more customers and influence their
buying behaviors too. The cash back offers and additional discounts during certain occasions act
as good promotional strategies to gain the trust of customers and make them inclined towards the
company products (Jain, 2013).
WeaknessesWeaknessesTherearemanyothersecondhandcarcompaniesthatoffersiilarkindsofusedcarsThecarsareslightlyolderandthus,fewoftheusedcarslookquiteoldfashionedandmightnotinfluencethebuOpportunitiesDuetoitsopeninginMelbourneandSydney,therearescopesforsellingmorecarsTostartinternationalbusinessbyenetreingtheThreatsTheratsofcompetitorsThreatsofnewentrantsorsubstituteproductsbysimilarsecondhanddealershipcompaniesSWOTanalysis

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Figure: SWOT analysis (Jain, 2013)
Recommendations
 It is recommended to improve the marketing and promotional activities for reaching more
customers and ensure generating more sales revenue in business
 The involvement of social media is recommended for engaging more customers and
enhance brand image through word of mouth promotions
 Car City is recommended to deliver environment friendly and low emissions vehicles for
creating lesser impact on the environment and positively influence consumer behaviors
 The second hand car company must bring some collection of new used cars that can
attract the customers easily and influence them to make purchases.
Conclusion
The customers wanted good quality cars at reasonable prices and so the second hand car
dealership companies like Car City had managed to make a mark within the industry. The
automotive industry created huge scopes for the second hand car dealership companies to
manage selling of cars, play a major role in improving the economic growth, furthermore foster
innovation, and bolster the economic growth. The report provided brief explanation about the
market conditions through the use of market audit, which helped in understanding the market
scenarios and the customers who were associated with the company. The analysis of market was
done to analyze the internal and external environment considering the political, economic, social,
cultural, legal and environmental factors contributing to the business. The marketing mix helped
to assess the various principles of marketing including the product, price, place and promotion.

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Lastly, few recommendations were provided to improve the business functioning and derive a
good conclusion in the end.

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