MARKETING STRATEGIES AND VALUE

INNOVATION
Sir Zain Khandwani

Group No. 8
Aimal Fazal 20192-25086
Essa Khan 20181-23860
M. Husam Haroon 20181-23859
Raza Ahmed 20181-23581
Uzma Hameed 20151-19351
VAVACARS
The Hassel Free Ways of Selling Your Car
Contents
Introduction...............................................................................................................................................2
Why In Pakistan........................................................................................................................................2
Existing Market Problem..........................................................................................................................2
Vision..........................................................................................................................................................3
Values.........................................................................................................................................................3
Our Promise...............................................................................................................................................3
Business Model..........................................................................................................................................4
Business Process........................................................................................................................................4
Strategic Positioning..................................................................................................................................5
Trade Offs..............................................................................................................................................5
Strategic Partnership............................................................................................................................6
Activity Map..........................................................................................................................................6
Fits...............................................................................................................................................................6
FITS..........................................................................................................................................................7
Competitive Analysis.................................................................................................................................7
Flex & Focus..............................................................................................................................................7
ERRC Model..............................................................................................................................................9
Buyer Utility Matrix................................................................................................................................11
New Points of Differentiation.................................................................................................................12
How Do Seller Approach Us:................................................................................................................12
Customer Service:...............................................................................................................................13
How payments are made:....................................................................................................................13
Future Plans.........................................................................................................................................14
Vavacar in Covid-19............................................................................................................................14
References................................................................................................................................................14
 VavaCars
Introduction

VavaCars is part of a global group of companies, founded over 50 years ago, and focused on the
energy sector. Worldwide, the group is invested in over 5,000 service stations, five oil refineries
and 18 million cubic meters of storage for petroleum products, as well as other energy
infrastructure, including ships. In Pakistan they are providing a market place for used car seller
and will expand their business in future time.

VavaCars started the business operationsfrom Turkey and now it’s an international heritage
means VavaCars is a brand you can trust.What truly sets the service apart is the customer
purchase center experience. Its not just the centre to sell the car you can have a whole experience
of delight which sitting at the vavacar centre.

Why In Pakistan
Pakistan: An emerging market for used cars business where you can sell your car without any hassle.
Business Attraction: Need for online and reliable business model. This is very simple and transparent way
of selling your car.
Serving Purpose: To give car owners a quick, convenient, safe and secure way to sell their cars, this is
one of the great USP of vavacar and it is very much fulfilling the purpose of being in this market.
Survey results: One platform for end-to-end hassle-free experience. Where you can visit and experience
the sale of car, the whole process is transparent and automated.

Existing Market Problem

There is lack of transparency and trust in the used car space in this country. We hesitate to sell
our car to random people.
Hassle of a lengthy private sale and the long process with the dealers in evaluation process
Forge documents gives huge losses to people and dealers.
Payment delay after the sales
Difficult to find fair Dealer is still a problem in this era of technology because of the trust issues
in the consumer mindset.

Vision
To become the most trusted car transaction platform in the world.

Values
Simplicity
We clearly communicate with our customers and dealers, ensuring they understand our whole process.
Transparency
We are always open and honest with our customers and dealers with no surprises.
Togetherness
Our customers are our partners. We will guide them through the whole car sales process, answering any
questions throughout.
Modernity
Our revolutionary business model always puts our customers first. It allows us to move quickly and
personalize each experience for everyone.
Innovation
We have reimagined the way people buy and sell cars, and continually strive to deliver amazing customer
experiences.

Our Promise
VavaCars is on your side, we ensure that everyone is able to buy or sell a used car without the hassle.
Business Model
The business model of vavacar is very simple. The process is very simple and also transparent. The
company purchase the car from customer after the given quoted price agreed from customer. There major
investment of vavacar is in purchasing of the car which becomes their revenue when they sell the car to
their dealer that is their only revenue generating process. They deal in customer to dealer. Not to customer
to customer which makes the dealer their partner not the competition. Once they purchase the car they
make an auction where many dealers take the participation and whoever bids the higher side gets the car.
The bidding process in open and only the registered dealers can take the participation in it. They also
auction the cars which are being recovered by the banks for nonpayment of customers, they made the
long term contract with banks also with the corporates for their auction.
Business Process
The process of the vavacar is as follow

Seller Visit Web

Online Car Valuation
Insert Details, Car Valuation is done

Calls Vavacar
Appointment Booking
Book Appointment

Visit Center
Physical Evaluation
Inspection and Valuation ( 45 Mins)

Agreement on price Deal With in 30 mins Payment

Inventory
After Purchase, inventory is updated Reports are updated on Portal

Dealers
Visit Portal/ Center Bid for the Car

Agreement on bid
Deal Payment is Done
They have an online portal where a customer can visit an evaluate their car which is free of cost. The
customer will have an idea how much their car cost. The parameters are based on 100% which a customer
select which may vary from the actual valuation at the vavacar center as the valuation process is done
through the complete check of a car by automated mechanism.
There is an online appointment booking available on the website also you can make an appointment
through online or even you can book through a phone call. They have a policy to entertain one customer
at a time.
The valuation process at the vavacar takes 45mins. In which the complete inspection along with the car
valuation is done and the price quote to the customer. the price are nonnegotiable and valid for 7 days of
offer.
Once the offer is being accepted they give a token money to customer of Rs 20,000 and full payment on
the next working day. Not only that, they also provide the same day payment in case of emergency.
Through online transfer and pay order. After purchasing the car they also send the customer thought their
company’s car for providing them service.
After the purchase the car is being updated on their portal which can be viewed by the registered dealer so
they can bid accordingly, along with the complete inspection and valuation report.
The dealer visit the vavacar and bid for the car, whoever bids higher gets the car and the car will be
transferred to their name within 45 days. In case of urgency they take it own their own name so the
customer do not suffer.

Strategic Positioning

Variety Based Position

In the Automobile industry VavaCars have chosen to operate in the market of used car and within that
they decided to serve the car seller and the dealers. They buy cars from individual seller and corporate
firms and sell them to dealer in an auction. They have focused their activities on this core segment.

Trade Offs

As per its business model, VavaCars has traded off following services and customer segments
1) New car market
2) Individual sellers (C2C) and/or D2C

Strategic Partnership
Going into used car market is no easy trade in Pakistan. Prople looking for selling used car and buying
one have several options. For buying a new car an individual can search it online, in open market or can
buy dealers or companies like Carfirst. Here the competition is immense, and the major chunk of the
market belongs to dealers.
VavaCars instead of going for selling car to customers limited there self to selling cars only to dealers and
hence Dealers become there ultimate strategic partners. Dealers do not consider them as competition,
instead they see VavaCars as a supplier, who give them an option to buy used Cars in a Hassel free, with
convenience and without any fear of frauds
 Activity Map
Advanced Pay orders
Appointment Automated Gadgets

Convenienc
Safe
e
45 mins Corporate No Test
Valuation Partnerships Drive

Mobile At your
Purchase C2D Only
Door
Units
30 mins Female
Sell to
Payment Friendly
Dealers

Quick Experience

Customer
45 Days Drop offs Coffee & Wifi
Fits Service
Transfer

FITS
1st order fit; Consistency
Online Appointment, 45 mins Inspection and Evaluation time and 30 mins Payments, 45 Day
ownership transfer, Mobile Purchase Unit
These all activities show consistency in providing convenience and time saving to the seller.
2nd order fit; Reinforcement:
Use of Gadgets leads to Automated inspection process which is backed by computer generated
reports and seller has the satisfaction of "No chance of Fraud".
3rd order fit; Effectiveness
Use of Gadgets reduces the overall cost the reducing the man power requirement and also
increases the effectiveness and authenticity of the inspection process.

Competitive Analysis
Car First is the only direct competitor in this category which is also providing a platform for selling the
car. They have a first mover advantage as they are here sice 2016 and vavacar started their operations
from 2019 4th quarter.
Car First has a similar model but they not only sell the car to dealer also the customers. Means dealers are
no their partners but the competitors
They are catering the market from consumer to consumer. They provide services for both buyers and
sellers.
Car first is currently working in 3 cities where vavacar has just working in Karachi. They are the market
leaders in this category and currently have 25+ locations to sell the car.
They do a monthly 3500+ car inspection which is raising every year, the growth ratio is 30%.

Flex & Focus

Focus:
Who? The targeted segments are
a) Car sellers (individuals and corporate)
b) Dealers
i.e. people seeking used cars but are faced with the dilemma of inconvenience while
searching for good value and stumble upon fake and non-transparency when striking any
deals.
What? Services provided are
a) Free of cost valuation (carried out at homes using customer portal)
b) Portfolio of top- notch brands including Toyota
c) Hassle-free , quick and efficient process of valuation
 d) C to D only
e) No registration fee
f) Fixed buying prices
g) Transparency in documentations and dealings
h) Fair valuation of cars
i) Final offers made within 45 minutes
j) Free coffee, wifi and transportation at showrooms
k) Price guaranteed for 7 days
l) Customer support available 24/7 and on social media (esp. Facebook)
Why?
A huge gap existed when it came to striking a deal for used cars. Both types of customers were
unhappy and dissatisfied with current market practices.

Flex
When?
By introducing separate portals for dealers (buyers) and sellers, with transparent and cost-
friendly services, company timed its entry into Pakistani market quite well (Dec 2019).
Where?
Location of showrooms in vicinities with dense population of car owners (DHA, Nazimabad and
Tariq Road)
Digital platforms for:
a) Buyers (dealers) with a complete portfolio of cars ready to be purchased
b) Sellers ( individual car owners ) who either wish to obtain the valuation fre of cost just
for the sake of it or are looking for genuine financial gains
c) Active social media presence (FB) with sole purpose of being there for customers at
every step of the way and enhancing brand awareness & image through numerous
marketing activities and promotions
Customer Support Centre- available 24/7 to provide support and guidance.
Which resources to be used?
Web portals
Customer friendly showrooms
Partnerships with banks
Quick and efficient TAT (online team activities, detailed inspection & report generation)
Coordination with sellers/dealers
Supplying cars to registered dealers
Quarterly budget allocation (valuation is free of cost and no registration fee charged)
Costs are limited to: inspection equipment, utilities, vehicle transportation and marketing
Consequently: Focus= HIGH Flex= Low
Suggestive F & F strategy: Locke step
Business model is rigid because
1) Caters to one set of customers ( C to D)- niche marketing strategy.
2) Buying prices are fixed
3) Service offerings for used cars only

ERRC Model
Eliminate
The company does not have a policy to sale car from customer to customer. The business model is seller
to dealer. This saves the both end by giving the seller a safe selling and dealer for a better margin in
resale.
There are less chances of fraud because the dealers are only registered members of Vavacar. And
company makes a complete check of document before the purchase of car.
The process is completely automated which is beneficial from both ends, as no party can make a bias
decision. The decision is completely based on the inspection report and the valuation of the car. The price
is quoted on the basis of the performance of the car.
The company does not take a test drive before the purchase of the car because of the safety reasons from
customer end. There major focus is the customer satisfaction. The whole performance check is automated.
There is neither test drive nor any mechanical check.

Reduce
The company has a fixed inspection and valuation time which is 45mins. During this time the company
checks the documents and the complete inspection report is being created which the customer can enjoy
the snacks at the launch.
The company makes an instant decision and quotes the price to the seller within the 45mins of inspection.
The price will be valid of 7 days after the quotation.

Raise
It’s a great opportunity for female as they always face the hassle in selling the car. But at Vavacar they
have a fair valuation process which is benefit specially for female because it is difficult for them to go in
the market and sell the car.
Vavacar do not only purchase the car but also give customer a whole experience of selling a car with
complete transparency they will feel delighted while sitting at the vavacar centre.
The company has a fair valuation process as no car is valuated on the bases of it looks or model. They can
sell any car launched after 2011 and it will be evaluated on the bases of its performance and inspection.
The set parameters make the valuation process fair and transparent.
Ownership transfer process is very easy at Vavacar as they take the full responsibility within 45 days the
car is being transferred to the new owner otherwise they get it on their own name. so the customer do not
face any issues in near future.

Create
At vavacar the payment procedure is very simple. Once you accept the deal, you will receive a token
money and on the very next day you can receive a pay order or online payment- (as per your preference,
without any hassle or delay).
Certified and tech based process which gives a whole new experience to customer and saves time as well
as fair valuation.
The company also started a mobile purchase unit during the covid-19. But they are eager to continue it for
as a new strategy where you can book an appointment and the mobile will visit your premises and make
the complete valuation. So you don’t need to visit the outlet.

Buyer Utility Matrix

Until its entry, Pakistani market of used cars was not trustworthy to conduct transactions as it did not
guarantee authenticity of valuation & other related car documents, the process of valuation itself was
lengthy (lacking modern tools and gadgets), credibility of both parties was itself a question- mark in most
cases etc. Although its competitor, CarFirst, tried to fill these gaps by making first mover advantage, it
has failed badly because of its poor strategic positioning and business model. Upon observing these
drawbacks, VavaCars, entered the market with a smooth business model and clearly identified business
strategy i.e to provide the customers (both sellers and dealers) a genuine & authentic platform which
guaranteed not only better returns, but also, was at convenience of their finger-tips.
Vavacars providing the convenience in purchase by giving no bargain policy but a market competitive
price. Even to make this process hassle free they don’t even take the test drive. All the inspection and
valuation is tech based. Risk free purchasing for both customer and dealer. Dealers are authorized and
preregistered whereas the documents are well inspected at the time of buying from customer.
Providing a convenient and risk free delivery. If a seller sells his/her car to Vavacar, they will provide
them a drop off back to their home. Even the payment is given as a pay-order making the transaction risk
free and the seller don’t have to carry cash.
45 minutes time for the whole valuation process enhances customer productivity. Along with the lesser
time providing an ease for females that they can bring their kids with them thus enhancing their
productivity. In terms of dealers’ perspective, productivity is enhancing as he is getting everything at one
click. Their application and online web services makes it easier for the seller to do its car’s valuation by
sitting at home and just giving the complete information and there Vavacar has already mentioned
eligibility criteria for the car to be bought by them.

New Points of Differentiation

How Do Seller Approach Us:

VAVA CARS has captured significant market share because of the purchase center network, online
appointments can be booked easily and also customers can do valuation of the car sitting at home so ease
in the procedure is attracting customers more.
Mobile Purchase Units:
Vava Cars has Introduced Mobile Purchase Units during Pandemic when economy was going through
very tough time and customers used to avoid visiting purchase Centers, Mobile Purchase Units enabled
selling car easily.
But after seeing response of customers Vava Car decided to continue this Mobile Purchase unit even after
Pandemic so that Office Persons who are busy and cannot take out time to visit Purchase Center, VAVA
CAR has solved this problem and made it easy for customers.

How are your services delivered?

The customer always feels dissonance after selling CAR that maybe he can get better price of that Car.
So to reduce that feeling Vava Car is offering a fully computerized valuation of the car. To create trust
and reduce dissonance after selling a car.

Additionally, competitor Car first is offering the same but customers mostly do complaint that the
valuation process is not fair because the car first used to set value based on bidding. People believe that
the bidding process is not fair. So Vava car does not use bidding procedure for car valuation rather they
are using a computerized report system to gain the trust of customers.

Customer Service:

When a customer wants to buy a car this process is not a hassle-free procedure. Finding the right dealer
and the fair value of a car is difficult. Also, lack of transparency and trust in used car space makes this
process more difficult so VAVA CAR aims to address this need by creating a most trusted used car
platform.

 No hassle of Private Sale

 Free WIFI ,COFFEE , AND Drop off Transport
 Women can bring their children as well and sell car sitting in calm and pleasant environment.
  Final offer with in 45 min inclusive both valuation and inspecting has made car selling less time
consuming activity

. Have kids? Bring them too!

How payments are made:

Getting Delay in Payment is one of the major issues in car selling activity But Vava car has addressed this
issue and made this procedure very smooth. Customer can get instant payment by pay order within 30min
after deal finalization. And customer can get payment from same purchase order where deal finalized.
Competitor is not providing such connivance to customer.
Similarly, payment for dealer is also very convenient.

Future Plans
To be available in all over Pakistan as currently we are only catering the market of Karachi. But there is
huge market ahead which can be part of vavacar.
To make the process more convenient for people by giving them access for filtration in valuation process
online. Also make the process more transparent and secure to attract and get the maximum customer
input.
The aim is to keep adding the customer value throughout the car selling journey and make it more
efficient and transparent.
Vavacar in Covid-19
Covid-19 has made many hindrance in many businesses but the automobile industry also effect from it.
They have plan for expansion in other cities but due to the lack of business potential in the market they
did not make such a step and postpone it for the coming year. The company did not plan as such to work
something in this pandemic condition but they launched a new mobile unit which can visit anytime during
the day. So people who don’t prefer coming to visit the center can take the appointment and their car will
be evaluated on their premises without going anywhere, and it is also free of cost. This option they raised
during the covid-19 period but now they have added this feature in their core business because they got
quite a positive response specially from female customers as they have trouble visiting the centers to sell
the car

References:
https://nation.com.pk/16-Jan-2020/vavacars-launches-operations-in-pakistan
https://www.vava.cars/pk/about-us
https://tribune.com.pk/story/1956442/vavacars-revolutionises-the-way-used-cars-are-traded-in-pakistan