AutoTrander and KBB Competitive Landscape

Part
01
of four
Part
01

AutoTrander and KBB Competitive Landscape (1)

TrueCar, Autocheck, and CarGurus are part of the automotive online market. TrueCar and CarGurus are transparent data marketplaces that aim to connect buyers and dealerships while AutoCheck offers the possibility of analyzing a vehicle's register and history.

Company overview — TrueCar, Autocheck, and CarGuru

1) TrueCar

A) Overview

B) Offerings

C) Revenue

D) Marketing Strategy

  • For consumers, TrueCar discovered that they were not interested in paying the cheapest prices, they rather wanted to have a car negotiation without being "ripped off."
  • Based on that, the company changed their marketing tactics. The company focused on providing parameters for consumers that show what a fair deal looks like. TrueCar also doesn't foment the dealerships to bid against each other.
  • The company's website for consumers promises to turn the car-buying experience into an easy process.
  • For the dealerships' website, the promise is different: "reach more customers, drive more sales and increase efficiency for your dealership."
  • On a 2017 TV campaign, TrueCar created a "Non Confusion" advertising with the purpose of showing buyers what they'd pay when going to a dealership.
  • They also invested in "national radio spots across news, sports, podcasts and a home-page refresh."
  • By showing customers the difference between what they would pay on a dealership and what TrueCar offers through a simple advertising, TrueCar promotes the transparency of information they offer compared to their competition.

E) Competitive advantage

  • The great advantage TrueCar has over their opponents is transparency in the consumer-dealership negotiation.
  • The brand has also stated that their clients will "never overpay" in car negotiations.
  • It gave consumers power to know which prices are fair to pay and it renovated a market that was once dominated by automotive manufacturers and dealerships that used to manage the car prices as they wished.

F) Target audience

2) Autocheck

A) Overview

B) Offerings

  • The system offers the opportunity to evaluate the car's history in order to compare it with other cars and see which one is a better purchasing option.
  • The car is evaluated in a score with a rating scale between 1 and 100.

C) Revenue

  • The estimated annual revenue according to Zoominfo and Owler is $11.9 million.

D) Marketing Strategy

  • Most of the company's market is based on promoting their reliable sources to help people better understand the company's products.
  • The website states that they have "billions of vehicle history records in our database to help you buy and sell with confidence."
  • In a YouTube video, they explain how their AutoCheck Score rates help customers analyze their vehicle's history.

E) Competitive advantage

  • The information provided by their website is consistent and obtained through reliable sources in the US and Canada.
  • The website is easy to use and features options for pay easily.
  • Their parent company, Experian, "has a National Vehicle Database with vital information across the country on more than 500 million cars."
  • According to the BestVinCoder review, AutoCheck represents an affordable option to compile vehicle history reporting, costing only $25 for shoppers or retailers.

F) Target audience

3) CarGurus

Overview

  • CarGurus is a marketplace that aims to connect buyers and sellers of used and new cars worldwide.
  • The company was founded in 2006 in Cambridge, Massachusetts by Langley Steinert, who is also the co-founder of TripAdvisor.
  • CarGurus offers more than 5 million listings, which, according to their website, makes them the biggest online automotive marketplace.

Offerings

Revenue

Marketing Strategy

Competitive advantage

  • According to their website, what sets them apart is their focus on best deals, unbiased rankings, powerful data analytics, information transparency, automotive expertise, consumer-first mentality, non-stop innovation, and free search and listing tools.

Target audience


Research Strategy:

While most of the data was readily available, we were not able to locate AutoCheck's annual revenue even after a thorough search through their website and the website their parent company, Experian. We also tried to look for annual reports as well, but to no avail. Owler's website was the only one, along with Zoominfo, that presented the company's estimated revenue.

Part
02
of four
Part
02

AutoTrander and KBB Competitive Landscape (2)

Cars.com is equipped with innovative solutions that help automotive dealers to easily obtain data-driven intelligence and have a better reach to ready-to-buy consumers who seek insightful information of different car models before making informed choices. On the other hand, Edmunds.com has a dealer marketing program called Premier that helps shoppers to buy directly from a dealer's website or storefront.

CARS.COM

OVERVIEW OF ITS OFFERING

REVENUE

  • In 2018, Cars.com recorded annual revenue of $662.1 million which was an increase of $35.9 million from 2017 or 6%, year-over-year revenue increase.
  • Its net income in that year was $38.8 million, or $0.55 per diluted share.

MARKETING STRATEGY

COMPETITIVE ADVANTAGE

TARGET AUDIENCE


EDMUNDS.COM

OVERVIEW OF ITS OFFERING

  • Edmunds.com is a digital automotive marketplace that connects potential car buyers with automotive dealers.
  • The brand offers different car models including SUVs, sedans, trucks, convertibles, minivans, electric cars, and hybrids.
  • Edmunds.com deals with various brands including Acura, Chevrolet, GMC, Lexus, Subaru, Audi, Dodge, Honda, Jeep, Mazda, Toyota, BMW, Ford, Hyundai, Kia, Mercedes- Benz, and Volkswagen among others.
  • It provides fundamental information to consumers who want to buy cars such as how to find the best deal automotive deals.
  • It offers both new and used cars.

REVENUE

  • The company has an estimated revenue of $250 million.

MARKETING STRATEGY

  • Edmunds.com has a dealer marketing program called Premier that helps shoppers to buy directly from a dealer's website or storefront.
  • Edmunds utilizes its audience data to connect shoppers with dealer's inventory in every stage of the car purchasing journey.
  • Because Edmunds understands that buying cars isn't a straight journey but a long winding journey they use innovation and research so that shoppers can be better informed while buying for their next new car.
  • Using Premier, Edmunds get valuable data through targeted social advertising, promoted display ads on Edmunds, dedicated emails, and the ability to connect with shoppers via web chat, text and Facebook Messenger on a single platform.

COMPETITIVE ADVANTAGE

TARGET AUDIENCE

Edmunds targets Millennials, and Gen Zers who want to buy cars but can't afford a big price tag [source 11]

Research Strategy:

In order to provide a competitive landscape for Cars.com and Edmunds.com, we leveraged information available on the official websites of both brands. We also sought additional information from news published by automotive magazine and media outlets as well as press release databases.
Part
03
of four
Part
03

AutoTrander and KBB Competitive Landscape

AutoTrader targets providers of stock via part-exchange, car buyers, car sellers, retailers, and manufacturers. KelleyBlueBook targets car dealers, auto manufacturers, finance and insurance companies, and governmental agencies.

AUTOTRADER

  • AutoTrader provides an online marketplace for purchasing and selling of used cars, light trucks, vans, and sport utility vehicles. The Company provides information for consumers concerning automotive products and services such as insurance, financing, and warranties.
  • The company invests in new and innovative marketing campaigns across TV and radio platforms. They are also engaged in social media marketing, as well as different forms of partnerships as ways of getting car buyers to continue to maintain brand awareness.
  • AutoTrader has created a digital culture that is values-oriented, customer-centric and data-driven with a "focus on an agile approach to change and, importantly underpinned by creating a diverse and inclusive workforce."
  • AutoTrader's website is the only website with more than 3 million vehicle listings from 40,000 dealers and 250,000 private owners. The company also provides the largest range of vehicles.
  • AutoTrader has a market-leading status as the UK’s biggest digital automotive marketplace. The company's customers spend more time on the platforms, "viewing an average of 94 adverts every second of every day."
  • AutoTrader targets providers of stock via part-exchange, car buyers, car sellers, retailers, and manufacturers.

KelleyBlueBook

  • KelleyBlueBook offers the trusted resource®, this is the vehicle valuation and information source "trusted and relied upon by both consumers and the automotive industry." The company also gives vehicle pricing and values through different products and services.
  • KelleyBlueBook makes use of consumer advertising campaign, social media marketing, and partnerships to bring about brand awareness to its audience.
  • The company works with great effort to deliver the most market-relevant vehicle values through the use of technological and quantitative means as its competitive advantage.
  • KelleyBlueBook is seen by customers as a leading-edge provider of used-vehicle data and information that sellers can use in buying and selling inventory competitively.
  • The company targets car dealers, auto manufacturers, finance and insurance companies, and governmental agencies.

RESEARCH STRATEGY

To provide the competitive advantage of AutoTrader and KelleyBlueBook, we leveraged data from the company's official websites, annual report, press releases such as PR Newswire and social media platforms. We have provided for each company a general overview of their offerings, their marketing strategy, competitive advantage, current market position and target audience.


Part
04
of four
Part
04

AutoTrander and KBB Competitive Landscape (4)

Cazana provides data that companies across the globe use, to provide vehicles to the modern automotive consumers who have shifted their focus from owning vehicles to accessing them. On the other hand, Cango continues to use its competitive advantage in data insights, technology and cloud-based infrastructure to stay afloat of its competitors.

Cazana

Offerings

  • Many companies across the globe are using Cazana's data to meet the needs of the modern automotive consumers; this is besides offering systems that help manufacturers, finance companies, dealerships, and insurers around the globe.
  • With the help of big data and predictive analytic, Cazana manages to analyze millions of automotive transactions daily an aspect that makes it easier to assess both the value and risk associated with each vehicle on the road.

Revenues

  • Cazana has an estimated revenue of $2million annually

Marketing strategy

  • Cazana uses AI and big data to help its customers get information on modern and classic cars.
  • Offers free online car checking and valuation services for its customers, an aspect that allows customers to access real-time values of vehicles.
  • Cazana offers a database that covers all cars on the road, thus providing relevant insights to businesses that help in making informed lending and pricing strategies.
  • Compared to its competitors, Cazana positions itself as the provider of automotive insights for the future of vehicle ownership.   
  • Cazana has put systems in place globally used by manufacturers, finance companies, dealerships and insurers.
  • The use of predictive analytic enables Cazana to analyze millions of automotive transactions daily besides assessing both the value and risk associated with each vehicle on the road.

Competitive advantage

  • Cazana use of big data and predictive analytic gives it an edge over its competitors an aspect that makes its customers to analyze millions of automotive transactions daily besides enabling them to assess both the value and risk associated with each vehicle.
  • Cazana’s vehicle valuation data increases accuracy thus allowing its customers to make better decisions, sharpen their business effectiveness, and drive customer loyalty.
  • Cazana’s global presence has enabled its systems to be used globally by finance companies, insurers, manufacturers, and dealerships.
  • Cazana’s financial muscle has seen the company continue to grow, for instance, it has raised a total of $5.3 million from three rounds in funding with the latest funding raised on January 28, 2019.
  • The recommendations by the Financial Ombudsman in the United Kingdom to use Cazana for insurance total loss valuations has given it a competitive edge over its competitors, this has seen many motor insurers using Cazana’s whole market valuation.

Audience

  • Cazana and subsidiary Car and Classic operate two popular car-listing sites that attract over 2 million users monthly. It is approximated that Cazana sold vehicles worth £480m in 2018    

Cango

Offerings

  • Cango is a leading automotive transaction platform with its headquarters in Shanghai, China. Cango connects financial institutions, car buyers, dealers and other industry participants and its core services include financing facilitation, after-market services facilitation, and automotive transaction facilitation.

Revenues

  • Cango’s annual revenue in 2018 was US$158.7 million, which represents an annual increase of 3.7%.

Marketing strategy

  • Utilizes its competitive advantages in data insights, technology and cloud-based infrastructure to connect its platforms participants and providing them with a premium user experience.    
  • Cango uses its unique platform model to add value for its platform’s business partners and participants in the ever-evolving and growing automotive and mobility markets in China.

Competitive advantage

Audience

Research Strategy

To establish the competitive position of competitive advantage of Cazana and Cango we began our research by looking at each of these companies’ websites and the industry’s databases. Most of the information found on these companies’ websites related to the services that they offer and their marketing strategies. We relied on the databases and industry’s experts through their websites to establish these two companies’ revenue and audiences.
Sources
Sources

From Part 02
Quotes
  • "Revenues of $662.1 million, up $35.9 million, or 6%, year-over-year, consistent with our last guidance Net income of $38.8 million, or $0.55 per diluted share"
Quotes
  • "In her talk, the CMO shared three core tenets that form the foundation of the Cars.com marketing strategy. Remember that everybody has a car libido; Love the journey & love the outcome; Be human-led and technology-enabled."
Quotes
  • "Cars.com is a leading two-sided digital automotive marketplace that connects car shoppers with sellers. Launched in 1998 and headquartered in Chicago, the company empowers shoppers with the data, resources and digital tools needed to make informed buying decisions and seamlessly connect with automotive retailers"
Quotes
  • "Cars.com Inc. owns a digital automotive marketplace business (Cars.com). Cars.com is an online research destination for car shoppers. The Company is engaged in the sale of online subscription advertising products targeting car dealerships. "
Quotes
  • "Cars.com’s mobile site, which J.D. Power and Associates named number one in overall satisfaction among third-party websites in its 2016 Automotive Mobile Site StudySM, enables it to continue to grow market share among younger car buyers and consumers engaging in on-site research at dealerships. Cars.com’s research shows that consumers aged 18 to 34 (“millennials”) are more likely to use mobile devices than the general car shopper. "
Quotes
  • "The car shopping experts at Edmunds recently launched Premier, a dealer marketing program designed to drive more ready-to-buy car shoppers directly to a dealer's website or storefront. Going beyond leads and listings, Premier uses targeted advertising and Edmunds' robust audience data to connect shoppers with a dealer's inventory at every part of the online car buying journey."
From Part 04
Quotes
  • "Cazana provides automotive insights for the future of vehicle ownership. "
  • "Cazana's systems are used by manufacturers, finance companies, dealerships and insurers globally. Companies use Cazana's data to provide vehicles to the modern automotive consumer who wants to access, not own vehicles."
  • "Using big data and predictive analytics, Cazana analyses millions of automotive transactions daily to assess the value and risk associated with every vehicle on the road."
Quotes
  • "Cazana has $2M in estimated revenue annually"
Quotes
  • "Uses AI and big data to provide customers with information on modern and classic cars."
  • "Cazana also offers free online car checking and valuation services for customers, allowing them to access real-time values of vehicles along with previously unseen history information."
  • "Its database, which covers every car on the road, also provides insights to businesses to inform their lending and pricing strategy."
  • "The Financial Ombudsman has also recommended the use of Cazana for insurance total loss valuations with many of the UK’s motor insurers now using Cazana’s whole market valuations."
Quotes
  • "2.2 million monthly visitors. Approximately £480m vehicles sold in 2018"
  • "Cazana operates two websites that attract over 2 million users monthly"
Quotes
  • "Provides financing, insurance, and other services in the automotive industry"
Quotes
  • "A leading automotive transaction service platform in China connecting dealers, financial institutions, car buyers, and other industry participants."
  • "Founded in 2010 by a group of pioneers in China's automotive finance industry, the Company is headquartered in Shanghai and engages car buyers through a nationwide dealer network."
  • "The Company's services primarily consist of automotive financing facilitation, automotive transaction facilitation, and after-market services facilitation."
Quotes
  • "Total revenues in the full year of 2018 were RMB1,091.4 million (US$158.7 million), representing a year-over-year increase of 3.7%. "