Case Study On CDK Digital Marketing

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Case Study

CDK Digital Marketing


Question 1
a) What misalignment(s) caused channel conflict between
manufacturers and dealers in the automotive industry?

No standard Dealers
information and uninformed of
Marketing and
authority of the benefits
Advertising offered by
personal
branding CDK.
b) How was this conflict reflected in the attitudes of
GM and its dealers toward CDK Digital Program?

Dealer's view (GM)’s views

• The dealers want to have • GM insisted to have standardize


authority to market themselves website to cater for all dealer.
but it was blocked by the GM. • Cost was double since dealer
• Rejecting the idea of and GM has different websites
standardizing marketing in • Creates confusion of customers
website and information and does not creates a good
• Does not trust the brand customer experiences
awareness can create sales in
dealer region location
• Dealer believe customer needs to
be fulfilled by distinctiveness,
strength and uniqueness of
dealer.
2. How would you characterize CDK Digital’s core
competencies as of 2011?

Industry/market knowledge and expertise:


-Understand the automobile retailing in US, in which via Dealers

Great customer understanding:


-Understand GM’s needs and won the 5 years contract in 2007
-Understand concern raised by Dealers and is working on a win-win solution

Early identification of trends/opportunities & able to track prospect to


customer:
-On how consumer normally buy cars via online and the buying pattern (from
3rd party and OEM sites to dealer)

Marketing technology:
-Online advertising using digital tags (or cookies)

Strong analysis & create personal engagement advertising:


-Advertising based on individual consumers car-buying journey
3. Suppose a car shopper’s interests could be
known when she visited a dealer website. How
would the dealer want to treat her?

• Content updates,
easy and promotion execution
enjoyable • Reflected consumer
user
experience interests to increase
desire to buy
• aligned with the
customer’s preferences
highlight • price, model type,
any models
in inventory features and form
suitable
recommendation
• enticing digital
personalize showroom
d • updated in real-time
experience • tailored for shoppers
with their preferences
How can CDK Digital leverage its core competencies to provide a
website solution that both GM and its dealers consider to serve their
interests ?

S/N Core Competency Website Solution GM Dealers

1 Have advanced 1) Provide advanced SEO (optional) More sales High quality SEO
SEO capability for as a trial product for dealers to tap services, More sales
digital marketing on or at lower cost
2) Adopt new technologies to
enhance SEO from any feedback
from dealers
2 Main providers of 1) Offer other complementary Consistent brand Website that could
website platform solutions for the websites if it experience, still represent each
under the single- complies to the brand standards contain core dealers individually,
platform model 2) Work with GM on a brand website functionality consulting with CDK
standards for compliance and branding and dealers for
message optimizing of
websites
3 CDK Digital Provide a shared marketing service for More sales, better More sales, less cost
sophisticated dealers to tap on analytic capabilities on marketing or
capabilities in - Do not need to hire professional (no spending is more
online advertising opex cost) directed, better
and ability to track - No training analytics capability
shopper’s online - Scalability
journey - Guaranteed professional service
and results
How can CDK Digital leverage its core competencies to provide a
website solution that both GM and its dealers consider to serve
their interests ?

S/ Core Competency Website Solution GM Dealers


N
4 Sole supplier Educating and sharing of dealers More sales, high Delivering more leads
arrangement with GM and GM on the loss caused by conversion by and phone calls,
unknowingly bidding for the same bringing the right more sales, lower
google keywords message to the marketing cost
consumers, lower
marketing cost

5 CDK Digital - Strong Educate dealers and share on the Strong brand Suggestions of which
retargeting of customers benefits provided by CDK Digital presence and new car model to
through their searchers awareness, more bring or recommend
leads and sales based on data, better
of understanding of
what customers want

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